75% of Next Year's Budget to Be Spent in the First Half... Early Execution for Four Consecutive Years

[Financial News] The government will execute 75% of its expansionary fiscal budget in the first half of next year. This policy aims to boost the sluggish domestic economy ahead of the local elections in June and to raise the economic growth rate to the upper 1% range. The decision to allocate 75% of the budget in the first half marks the fourth consecutive year since 2023.
The Ministry of Economy and Finance announced at the State Council meeting on the 9th that it has finalized the 2026 budget allocation plan.
The allocated budget (including general and special accounts) totals 624.8 trillion won, of which 468.3 trillion won (75% of the total) will be executed in the first half.
The government has secured a 2026 budget of 727.9 trillion won, an 8.1% increase from this year, focusing on a super-innovative economy driven by technology, a robust social foundation, public safety, and diplomacy and security centered on national interests.
Kim Kyung-guk, Director General for Budget at the Ministry of Economy and Finance, stated, "The government will thoroughly prepare in advance so that the 2026 budget can be executed on time from the beginning of the year, following the necessary procedures for fund allocation."
Allocating more than 70% of the budget in the first half has been the norm since 2019. The proportion has increased each year, and since 2023, 75% of the budget has been executed in the first half for three consecutive years. This reflects the prolonged domestic economic downturn and growing uncertainties in the domestic and international markets due to high inflation and exchange rates.
skjung@fnnews.com Jung Sang-geun Reporter