Im Ki-geun: Next Year's Budget to Prioritize Structural Reforms

Vice Minister Im Ki-geun, who oversees government budget planning and management, announced that the compilation of the 2027 budget will concentrate on supporting 'structural reforms' aimed at resolving fundamental issues within the nation's economic and social systems. The policy dictates that legally mandated expenditures, such as those for pensions and welfare, will be subject to budget cuts without exception. Structural reforms will focus on addressing deep-seated problems including the AI transition, demographic shifts like low birth rates, carbon neutrality, economic polarization, and the depopulation of rural areas. All government projects, encompassing both mandatory and discretionary spending, will be included in the expenditure restructuring. Vice Minister Im stated that reduction targets must be set for mandatory spending, and plans for legislative action must be developed. The government has set goals to cut discretionary spending by 15% and mandatory spending by 10%, while also phasing out 10% of existing projects. Funds saved through these measures will be reinvested into the core initiatives of the relevant ministries.

Vice Minister Im Ki-geun of the Ministry of Planning and Budget presented the 'Direction for the 2027 Citizen Sovereignty Government Budget Compilation' at the 6th Fiscal Execution Review Meeting held on March 24. The government initiated the 2027 budget compilation process early, starting in January.

Amid growing economic uncertainty due to the prolonged Middle East situation, Vice Minister Im emphasized the government's role in providing a stabilizing force through swift budget execution.