Government Sets Next Year's Budget at Over 800 Trillion Won; Additional Tax Revenue to Focus on Youth Investment

The government has compiled the budget for next year (2027) at over 800 trillion won, an increase of more than 10% compared to this year’s original budget. The government estimates that national tax revenue for next year will exceed the previous outlook of 412 trillion won to reach over 500 trillion won, the highest figure on record. The government cited this improvement in revenue conditions as the basis for the large-scale expansion of expenditure.

The government announced that it would focus the increased revenue on investments to foster youth and future growth drivers. The details were announced during the '2026 National Fiscal Strategy Meeting' held at the Blue House on the 13th. The government will establish a 'Future Response Fund' to concentrate investments on four major areas—future, youth, regional, and education—as well as three major mega-projects. The Future Response Fund will also serve as a buffer to ensure fiscal stability in the event of a tax revenue shortfall or the compilation of a supplementary budget.

This fiscal strategy is expected to facilitate youth job creation and balanced regional development, laying the groundwork for long-term economic growth.