Seoul: The finance ministry has unveiled a government budget proposal of 728 trillion won (US$525 billion) for 2026. This proposal marks an 8.1 percent increase from the 2025 budget.
According to Yonhap News Agency, the proposed budget allocates significant funds to various sectors. Health, welfare, and employment are slated to receive 269.1 trillion won, reflecting an 8.2 percent increase. Education spending is set to rise by 1.4 percent, reaching 99.8 trillion won. Culture, sports, and tourism will see an 8.8 percent boost, with 9.6 trillion won allocated.
The environment sector is earmarked for 14 trillion won, a 7.7 percent increase. Research and development will receive 35.3 trillion won, marking a substantial 19.3 percent increase. Industry, small and midsized enterprises, and energy are set to receive 32.3 trillion won, a 14.7 percent rise. Social overhead capital will see a 7.9 percent increase, totaling 27.5 trillion won. Agriculture, fisheries, and food are allocated 27.9 trillion won, up 7.7 percent.
National defense spending is proposed to rise by 8.2 percent to 66.3 trillion won. Diplomacy and inter-Korean affairs, however, will see a decrease of 9.1 percent, with a budget of 7 trillion won. Public safety is set to receive 27.2 trillion won, an increase of 8.8 percent. Administration spending will rise by 9.4 percent, amounting to 121.1 trillion won.
On the revenue side, gross revenue is projected to reach 674.2 trillion won in 2026, a 3.5 percent increase from this year. National tax collection is expected to rise by 4.9 percent to 390.2 trillion won, up from this year's 372.1 trillion won.