Overview
- AI spending rises to 10.1 trillion won and overall R&D climbs 19.3% to 35.3 trillion won to accelerate a state-led ‘super-innovation’ strategy.
- Defense outlays increase 8.2% to 66.3 trillion won to fund high‑tech weapons such as the KF‑21 fighter and to raise entry‑level military pay.
- Foreign aid faces a sharp reset with a roughly 22% ODA cut that lowers the ministry’s total to 3.6 trillion won, while the inter‑Korean cooperation fund is restored above 1 trillion won.
- A 70‑fold jump in the trade‑response budget to 2.1 trillion won includes 1.9 trillion won for financing cooperation projects tied to the Korea–U.S. tariff deal.
- Financing leans on a record 27 trillion won in program cuts and expanded bond issuance, with the fiscal deficit projected at 4.0% of GDP and debt at 51.6%.