Seoul Sets 2026 Budget at 51.5 Trillion Won... 16 Trillion Allocated for 'Companion with the Vulnerable'

[Financial News] Seoul Metropolitan City has set its 2026 budget at a total of 51.506 trillion won, an increase of 3.3915 trillion won (7.0%) from this year. Notably, more than 15 trillion won will be allocated to the city’s core initiative, 'Companion with the Vulnerable,' increasing the welfare budget even while maintaining fiscal soundness.
At a press conference on the 30th at Seoul City Hall, Mayor Oh Se-hoon explained, “Over the past four years, we have reduced debt by about 600 billion won through sound fiscal management, but this year, due to the government’s issuance of consumer coupons for economic recovery, the debt is expected to increase.” He emphasized, “Despite these circumstances, we are determined not to increase the debt burden for future generations as we prepare the budget.”
The city will allocate 15.6256 trillion won to the 'Companion with the Vulnerable' initiative, an increase of 800 billion won from this year. Basic livelihood security will be expanded with 4.7645 trillion won for the four major benefit programs, and an additional 36.1 billion won for Care SOS, to provide comprehensive welfare support.
For public jobs for people with disabilities, 58.9 billion won will be invested to operate 5,500 positions, an increase of 383 from the previous year. The city will also expand opportunities for social participation for people with disabilities through 9.8 billion won for Eoullim Plaza and 10.6 billion won for sports centers.
Support for increasing birth rates, which has begun to rebound, will also be strengthened. As part of the 'Birth Celebration' project, the city will newly introduce the affordable 'Seoul Safe Postnatal Care Center' (2.8 billion won) and invest 68.9 billion won in postnatal care and transportation support for pregnant women, providing additional assistance to families with two or more children.
As of last month, 36,000 people have joined 'Seoul Learn,' which will be upgraded to version 3.0 with an investment of 23.6 billion won.
A total of 1.0622 trillion won will be allocated to ensure housing stability for vulnerable groups, young people, and newlyweds. The city plans to supply 24,000 public rental housing units and promote redevelopment and reconstruction policies. Mayor Oh stated, “Recent real estate measures have increased concerns about home ownership. By 2031, we aim to start construction on 310,000 units and complete 377,000 units by 2035. Next year, we will supply 24,388 public rental homes, including 4,000 Future Homes.”
Investment in 'citizen safety' will also be strengthened, especially in response to concerns over sinkholes. The city will spend 447.7 billion won to repair water and sewage pipelines over 30 years old, 6 billion won to replace aging heat supply pipes, and 92.3 billion won to upgrade old facilities on subway lines 1 through 8, enhancing infrastructure durability and diversifying inspection methods.
A total of 693.9 billion won will be allocated for the construction of Metropolitan Area Rapid Transit Line A (GTX-A) and other metropolitan and urban railways. The city will invest 149.5 billion won to improve major roads such as Yangjae-daero, aiming to enhance connectivity not only within Seoul but throughout the metropolitan area.
To strengthen Seoul’s competitiveness, the city will invest in nurturing future talent, focusing on artificial intelligence (AI) and science and engineering. A total of 131.5 billion won will be allocated for youth job training schools and science scholarships, and 10 billion won of the 49.7 billion won future industry R&D budget will be dedicated to AI.
Efforts to create new landmarks in Seoul will also accelerate. Construction of the Namsan Gondola (17 billion won) will begin in earnest, targeting operation by 2027. The city will also focus on developing the Nodeul Island Global Art Complex (28.7 billion won) and the Second Sejong Center for the Performing Arts (21 billion won).
Nevertheless, Seoul will maintain its commitment to fiscal soundness next year. The city’s debt is expected to remain at the year-end forecast of 11.6518 trillion won. Mayor Oh stated, “Although debt increased this year due to consumer coupons for economic recovery, we have adhered to fiscal discipline with a determination not to increase the burden for future generations. We will continue to strive toward 'Premier Seoul,' recognized by the world.”
chlee1@fnnews.com Lee Chang-hoon Reporter