South Korea's Democratic Party of Korea held a budget consultation meeting on July 21 at the National Assembly to discuss the 2027 budget plan, which is scaled at approximately 800 trillion won. Han Byung-do, the party's acting leader and floor leader, stated that the budget must serve as priming water to secure South Korea's future golden time, emphasizing strategic investment in mega projects and regional economic revitalization. The meeting was arranged at the request of the Ministry of Strategy and Budget to incorporate legislative opinions directly into the budget compilation process, which is currently underway after receiving ministry requests by the end of May.
Democratic Party Emphasizes Strategic Investment and Regional Growth in Budget Priorities
Han Byung-do stated at the consultation meeting that the direction for next year's national finances is clear, emphasizing that the budget must be actively utilized as a strategic investment resource for future response. He said that bold and strategic investment is necessary for the accelerated implementation of three major mega projects, and that the budget should substantially reflect measures to initiate region-led growth and revitalize local economies.
Han added that in addition to future planning, thickly supporting the current lives of citizens is also an inherent role of national finances. He requested that the budget be meticulously compiled to include public welfare recovery, mitigation of polarization, and safety budgets to protect citizens' lives and daily routines from disasters. Han Jeong-ae, the party's policy committee chairperson, stated that the party will closely consult with the government to reflect budgets for addressing issues including region-led growth, housing supply, infrastructure expansion, youth employment, K-shaped polarization resolution, and climate crisis response.
Ministry of Strategy and Budget Outlines Compilation Timeline and Legislative Consultation Process
Park Hong-geun, Minister of Strategy and Budget, explained the compilation timeline at the meeting. He stated that the ministry received mid-term plans from各 departments in January and February, issued compilation guidelines at the end of March, and set expenditure limits in April. Ministry budget requests were received by the end of May, and the compilation process has currently commenced.
Park emphasized that while the ruling party's voice was previously heard in August when compilation was nearly complete, this time the ministry will do its utmost to directly hear and reflect opinions during the middle of the compilation process. Han Byung-do stated that the party will actively support the budget to serve as priming water that protects citizens' lives and accelerates South Korea's great transformation, and will make efforts to comply with the legal deadline this year following last year by closely discussing from the compilation stage.
Government Maintains 50 Trillion Won Expenditure Restructuring Target and Establishes Future Response Fund
Regarding the goal of achieving 50 trillion won in expenditure restructuring, Park Hong-geun stated that while it is a difficult task, inefficient or wasteful low-performance projects cannot be overlooked even if additional tax revenue comes in. He stated that the 50 trillion won target will be achieved as planned.
Concerning the Future Response Fund being newly established to manage increased tax revenue, Park stated that additional tax revenue is expected to come in due to the semiconductor boom. He said the ministry will carefully examine the compilation process and collect opinions from the Democratic Party as the ruling party in advance.
FAQ
What did South Korea's Democratic Party discuss at the July 21 budget meeting?
The Democratic Party held a consultation meeting with the Ministry of Strategy and Budget on July 21 to discuss the 2027 budget plan scaled at 800 trillion won. Party officials emphasized strategic investment in mega projects, regional economic growth, public welfare, and safety budgets, while the government outlined the compilation timeline and committed to incorporating legislative opinions during the budget compilation process.
What is the government's expenditure restructuring target for the 2027 budget?
The government maintains a target of 50 trillion won in expenditure restructuring. Minister Park Hong-geun stated that this goal will be achieved as planned, emphasizing that inefficient or wasteful low-performance projects cannot be overlooked even with increased tax revenue from the semiconductor boom.
