Overview
- The Cabinet approved and the government submitted the 820.9–821 trillion won 2027 budget proposal to the National Assembly on Tuesday, Sept. 1, starting a review and amendment process that must finish by December.
- Officials say unusually large corporate tax receipts from Samsung and SK hynix will raise total revenue to about 880.8 trillion won and finance a 162.3 trillion won Future Response Fund set aside for one-off strategic investment.
- The budget sharply boosts technology and security spending, allocating about 21.3 trillion won for AI-related megaprojects and raising defense outlays to roughly 73.28 trillion won, which includes initial funding for a nuclear-powered submarine study and OPCON-related systems.
- The government plans to use 45.4 trillion won from the Future Fund next year for youth programs, regional development and education while also cutting or restructuring about 108 trillion won in lower-priority programs.
- Critics and editorials warn the expansion risks conflicting with recent Bank of Korea rate hikes and could lock temporary windfall revenue into lasting commitments, and analysts expect National Assembly scrutiny over fiscal credibility and oversight.