President Lee Jae Myung will deliver a Budget Policy Address on Tuesday to outline South Korea’s 728 trillion won ($510 billion) spending plan for 2026. The Budget Policy Address will urge bipartisan cooperation while emphasizing innovation, fiscal balance, and social welfare.
Lee aims to rally lawmakers behind his administration’s priorities as political divisions and high living costs challenge public confidence. His office said he will explain the purpose of the record-high budget and call for constructive dialogue in the National Assembly.
The government proposed an 8.1 percent increase in total spending compared to the previous year, crossing the 700 trillion won threshold for the first time. About 72 trillion won will go toward the “super-innovation economy” program, including 10.1 trillion won dedicated to artificial intelligence development.
Lee plans to stress that AI investment will strengthen national competitiveness and drive long-term growth. He will also emphasize social stability, promising to channel 175 trillion won into programs supporting low-income families and addressing inflation.
To prepare for the Budget Policy Address, the president cleared his public schedule. Officials noted that Lee views the speech as a defining moment for his economic leadership.
Budget deliberations will start Wednesday with a public hearing led by the Special Committee on Budget and Accounts. Lawmakers will then examine proposals across various ministries, followed by a subcommittee meeting in mid-November to finalize spending adjustments. After that, the revised proposal will go to the full National Assembly for approval.
The ruling Democratic Party of Korea (DPK) supports the budget, calling it a “foundation for recovery and innovation.” Party leaders praised Lee’s focus on research, development, and technology investment. They also defended his local cash handout program, which channels 24 trillion won into regional economies.
However, the opposition People Power Party (PPP) accused the government of relying too heavily on debt. It promised to cut what it calls “populist” projects and reduce unnecessary expenditures. The sharp contrast in priorities sets the stage for intense budget debates.
As inflation and global uncertainty persist, the Budget Policy Address carries high stakes for Lee’s administration. Its success will depend on whether the president can unite rival parties to balance innovation with fiscal discipline.
