Seoul: The foreign ministry is aiming to increase next year's budget allocations for diplomatic relations with the United States and China while significantly reducing spending on development aid, a move that contrasts with the priorities of the previous government. This information comes from the ministry's latest budget plan released on Friday.
According to Yonhap News Agency, the 2026 budget proposal, which is set to be presented to the National Assembly, outlines a total annual spending of 3.6 trillion won (approximately US$2.59 billion). This represents a decrease of 15.8 percent from the current year's budget of 4.28 trillion won. A major factor contributing to this reduction is a 22 percent cut in the official development assistance (ODA) budget, now slated for 2.18 trillion won. This adjustment marks a departure from the previous upward trend under the Yoon Suk Yeol government, which had prioritized foreign aid.
An official from the ministry explained that the ODA budget is being reorganized following a review assessing the outcomes and practicality of related projects. Additionally, the humanitarian assistance budget has been reduced to 325.5 billion won, effectively bringing it back to pre-pandemic and pre-Ukraine war levels.
The ministry has allocated 7.5 billion won for North America affairs, focusing on engagement with the U.S. at various levels. This includes high-level discussions with President Donald Trump's administration and the U.S. Congress, as well as outreach to academic institutions. The proposed budget for U.S. diplomacy marks an increase from the current allocation of 5.1 billion won. Moreover, the budget for monitoring U.S. economic trends has been raised to 1.4 billion won, up from 1 billion won, to facilitate swift responses to changes impacting South Korean companies.
For diplomatic efforts with China, the ministry has proposed a budget of 1.1 billion won for the coming year, an increase of 500 million won from this year. Additionally, 6.8 billion won is earmarked for preparations for an anticipated summit with Central Asian nations.
The budget for contributions to international organizations has been reduced to 681.8 billion won from 826.2 billion won, attributed to a decline in contributions to the United Nations, as stated by the ministry.