Ruling Party and Government Discuss Next Year's Expansionary Budget: "Record-High R&D Investment"

Emphasizing Expansionary Fiscal Policy for Recovery and Growth
Lee Jaemyung Administration to Boost Record-High R&D Investment
Strengthening Welfare and Securing Future Growth Engines

The Democratic Party of Korea and the government have emphasized the expansionary fiscal policy of the first main budget under the Lee Jaemyung administration, which will be applied next year, ahead of the regular session of the National Assembly. In particular, they have announced plans to secure future growth engines by expanding research and development (R&D) investment to a record-high level, while also strengthening welfare support for low-income groups.

Kim Byungki, the floor leader of the Democratic Party, stated in his opening remarks at the 2026 budget party-government consultation held at the National Assembly on the morning of the 26th, "The budget bill must reflect the state philosophy of the government of popular sovereignty. The core is a country where the people are the owners."

Kim also emphasized, "The three pillars of an innovative economy, balanced growth, and a society with strong fundamentals must be included in next year's budget. Past mistakes must never be repeated, and policy failures such as R&D (research and development) cuts and tax revenue shortfalls, seen under the Yoon Suk Yeol administration, must be avoided."

Yonhap News Agency

He also stressed the necessity of expansionary fiscal policy. The intention is that active fiscal input is needed to expand key industries such as artificial intelligence (AI), biotechnology, culture, content, defense, and renewable energy, as well as to support vulnerable groups, address industrial accidents, and enhance public safety projects.

Han Jeongae, the chair of the Policy Committee, stated, "The economy is struggling and people's livelihoods are even more difficult. This is when fiscal policy must play an active role for the people." She added, "It is necessary to actively review and reflect measures that can reduce household spending burdens and contribute to increased sales for small business owners and the self-employed."

Koo Yooncheol, Deputy Prime Minister for Economic Affairs and Minister of Economy and Finance, introduced the first budget bill of the Lee Jaemyung administration by saying, "We have focused on reducing or eliminating what can be cut based on performance, and boldly concentrating investment in areas that are necessary, with the aim of driving recovery and growth."

Koo further explained, "We will make full use of available resources so that fiscal policy can act as a priming pump to stabilize livelihoods and boost economic vitality. Through a grand transition to a super-innovative leading economy, we have also secured mid- to long-term growth engines." He identified three main priorities: 'achieving a super-innovative economy led by technology,' 'growth for all through a society with strong fundamentals,' and 'diplomacy and security centered on national safety and interests.'

Regarding the goal of making Korea one of the top three AI powerhouses, he said, "We will focus investment on leading physical AI projects leveraging Korea's outstanding manufacturing capabilities and introduce AI throughout all aspects of daily life. We will invest a record-high amount in R&D to secure future growth engines."

He also added, "We will address the demographic crisis of low birth rates and an aging population through tailored support for children, youth, and the elderly, and provide robust support for low-income groups and people with disabilities. We will expand investment in disaster safety industries and foster the future military by introducing state-of-the-art weaponry."

This content was produced with the assistance of AI translation services.