The Outcome of the 821 Trillion Won Budget Hinges on the 162 Trillion Won Future Fund

The National Assembly will begin deliberations on the 820.9 trillion won budget bill for fiscal 2027, starting with President Lee Jae-myung's policy address on December 2. In his speech, the president is expected to explain the government's budget direction and rationale, then urge both ruling and opposition parties to pass the bill by the statutory deadline of December 2. The government's budget proposal, submitted to the Assembly, is a record 12.8% (93 trillion won) larger than this year's.

The ruling and opposition parties have taken sharply opposing stances on how to review the bill. The Democratic Party has declared it will increase spending on livelihood-related programs such as jobs, housing, and household finance. People Power Party interim leader and policy chief Im I-ja said on Facebook that the party would push for 30 trillion won in spending cuts, focusing on the "100 major problem projects."

The biggest point of contention in the budget bill is the use of the 162.3 trillion won Future Response Fund. The People Power Party has argued that the entire 104 trillion won in unallocated surplus funds, for which no specific projects have been designated, should be used to reduce government bond issuance. The Democratic Party, by contrast, maintains it will keep the plan intact, calling it a budget that revives growth engines and expands opportunities for future generations.

The schedule is already set. The National Assembly's Special Committee on Budget and Accounts will hold comprehensive policy question-and-answer sessions on the 4th and 5th, operate the budget subcommittee from the 16th to the 27th, and vote on the budget bill in a plenary session on the 30th of this month.