“A Major Shift to ‘Growth for All’ ... Future Fund to Focus on Four Pillars” [President Lee’s Budget Address]

In an address to the National Assembly on the 2nd, President Lee Jae-myung outlined the 2027 government budget proposal, set at a record 820.9 trillion won, and said, “We must make a major shift from ‘growth for a few,’ in which opportunities for and gains from growth are concentrated in specific regions and social groups and among a small number of companies, to ‘growth for all,’ in which every region and all citizens share equally in the opportunities for and gains from growth.” Lee particularly pointed to the limits of a “K-shaped economy,” in which inequality and polarization deepen, and stressed, “We must move beyond the outdated binary debate over growth versus distribution and put forward a new formula for growth suited to a changed era and circumstances.” He also emphasized that the Future Fund would focus investment on four pillars, including young people and future growth engines.
In his address that day, Lee described next year’s budget as “a budget that secures a first-mover advantage for the future as we strive to build an irreplaceable Korea and make it a leading nation, and a growth-diffusion budget that will turn national growth into growth for the people.” The plan is to concentrate fiscal resources on securing future growth engines and narrowing gaps, so that the opportunities and benefits of growth are shared more evenly.
A presidential office official said, “The growth-diffusion budget means investing in future growth engines to build our economy’s capacity for sustained growth and, above all, ensuring that the benefits of growth translate into higher incomes and more jobs that improve individuals’ lives, while opening up more opportunities for young people and people in regional areas.”
Lee said, “Our economy is continuing a clear V-shaped recovery,” but added, “People are desperately saying that although the national economy has improved, their own household finances remain strained. It is time for us to answer this weighty question: What good is growth if my life does not get better?”
As a first step, he presented “three major livelihood projects” in the areas of jobs, financial services for ordinary people, and housing stability. Lee said, “We will go beyond the social safety net and aim for a robust social safety cushion with no blind spots, while firmly strengthening the foundations for sustainable growth.” He added, “The ‘Three Mega-Projects’ and ‘Seven SEEDs’ will have a greater impact on the foundation of the ‘three major livelihood projects.’”
He cited the following principles for drawing up the budget: bold investment and the elimination of inefficiency and waste; prioritizing fiscal spending over tax expenditures; and favoring local areas to promote balanced national development. The government set next year’s budget at 820.9 trillion won, up 12.8% from this year. It is the largest on record.
The newly established Future Fund, with a budget of 162.3 trillion won, was described as “a strategic investment platform supporting a rebound in potential growth and an innovative fiscal-stabilization mechanism to respond to growing volatility in tax revenues.” The plan is to invest the additional tax revenue secured through the efforts of the people in four areas—young people, future growth engines, regional areas, and education and talent—and use any surplus funds to prepare for tax revenue shortfalls.
Lee called for the National Assembly of the Republic of Korea’s active cooperation, saying, “It is time for the government and the National Assembly, and the ruling and opposition parties, to join forces for the nation’s future and the lives of its people.” He added, “What matters is execution and speed,” and asked lawmakers to approve next year’s budget proposal and related bills by the statutory deadline of December 2.
[email protected] Choi Jong-geun Reporter