South Korea on Tuesday approved its 2027 budget, with total spending set to exceed KRW 820 trillion, up about 12.8% from this year and both figures at record highs, according to ETNet.
The government said it will use better-than-expected tax revenue to establish a KRW 162.3 trillion future response fund, part of which will support youth aid, growth drivers, local economies and education. It also allocated KRW 21.3 trillion for semiconductors, physical AI and industrial park infrastructure projects.
The Lee Jae-myung administration plans to issue nearly a record KRW 222.8 trillion in bonds next year to finance spending, a move that could heighten public concern over government outlays and push yields higher.