First Lee Administration Budget of KRW 727.9 Trillion Approved by State Council... Local Gift Certificates and Growth Fund Maintained

[Financial News] The first main budget proposal of the Lee Jae-myung administration for 2026 passed the State Council on the 9th.
The Office of the President of South Korea announced to the media that "the agenda items of the State Council, including the 2026 budget proposal, were approved as originally submitted."
The approved budget amounts to KRW 727.9 trillion, which is about KRW 1 trillion less than the government’s initial proposal of KRW 728 trillion. Compared to this year’s main budget of KRW 673.3 trillion, it marks an 8.1% increase. Key projects such as KRW 1.15 trillion in support for the issuance of Local Love Gift Certificates and KRW 1 trillion for the National Growth Fund were maintained as originally planned.
Some areas have been strengthened, including KRW 400 billion allocated for the establishment of a disaster recovery system at the National Information Resources Service and KRW 61.8 billion for the creation of a new Autonomous Vehicle Commercialization Test City. On the other hand, budgets for Artificial Intelligence (AI) support and the Policy Fund were partially reduced, and the Reserve Fund was also cut by about KRW 200 billion.
At the State Council meeting, the agenda included the approval to spend KRW 3.05143 billion from the Reserve Fund for expenses related to the Special Prosecutor, as well as the passage of an amendment to the Act on Special Cases Concerning the Confiscation and Return of Property Acquired through Corrupt Practices. This amendment mandates the compulsory confiscation and recovery of proceeds from specific fraud crimes such as voice phishing (vishing) and pyramid schemes, ensuring restitution to victims.

west@fnnews.com Seong Seok-woo Reporter