[Key Points] Korea eyes record 800 trillion won budget to revive growth

Budget push: South Korea’s ruling bloc is pressing for a more expansionary 2027 budget, with total spending expected to exceed 800 trillion won ($577 billion) for the first time.

Growth over restraint: President Lee Jae Myung urged the government to move beyond a narrow focus on fiscal capacity and pursue a “productive” spending strategy to counter low growth.

Double-digit increase: Budget Planning Minister Park Hong-keun has said the 2027 budget will rise more than 10 percent from the initial 2026 proposal of 727.9 trillion won — the biggest annual increase since 2009.

Future industries first: The Democratic Party of Korea wants spending concentrated on artificial intelligence, semiconductors, autonomous driving, the lunar landing program and other sectors seen as potential new growth engines.

Broader support: Proposed measures include full tuition support at regional national universities, expanded assistance for young people and small businesses and record-high electric vehicle purchase subsidies.

AI megaprojects: The budget will back Lee’s three signature megaprojects aimed at strengthening national AI capacity and reducing regional economic disparities, with semiconductor support placed in a special account.

September unveiling: The government plans to announce the budget at a Cabinet meeting on Sept. 1 and submit it to the National Assembly on Sept. 3, ahead of the legislature’s early-December passage deadline.