Lee Administration's First Budget Set at 728 Trillion Won... 8.1% Increase for 'Expansionary Fiscal Policy' [3-Minute Brief]

① Lee administration embarks on full-scale expansionary fiscal policy
Next year's 'super budget' set at 728 trillion won
② 10.1 trillion won for 'AI transformation', 35.3 trillion won for R&D
Focused investment in a 'super-innovative economy'
③ Production, consumption, and investment all rise in July
Retail sales see largest increase in 29 months

MARKET INDEX : Year to date

○All three major New York stock indexes in the US fell simultaneously

○Tech stocks hit by Alibaba's AI chip development

○US Personal Consumption Expenditures (PCE) Price Index in line with expectations

Top 3 NEWS

■ Next year's budget set at 728 trillion won... Major shift to expansionary fiscal policy

○Up 8.1% from this year... Expansionary allocation
○27 trillion won in unnecessary spending cut
○Budget growth rate for the next four years set at 5.5%

■ Record-high 10.1 trillion won for AI and 35.3 trillion won for R&D... Focused investment in 'super-innovative economy'

○'2026 budget plan' reviewed and approved
○2.6 trillion won invested in AX Project
○Defense budget increased by 5 trillion won, diplomatic budget decreased by 0.7 trillion won

■ Is the economy reviving on the back of consumption?... Production, consumption, and investment all up for the first time in five months

○Retail sales up 2.5% from previous month
○Largest increase in 29 months
○Inventory ratio at lowest in 38 months

Graphic News: Tax expenditures providing relief reach a record 80 trillion won... Deduction rate kept within the legal limit

○4 trillion won higher than projections... All-time high

○Actual spending for next year at 808 trillion won

○National tax deduction rate at 16.1%, 0.4% below the legal limit

the Chart: National debt to surpass 1,400 trillion won next year... Interest costs to exceed R&D budget

○National debt-to-GDP ratio to rise by 10 percentage points in four years

○Interest costs on government bonds to increase from 36 trillion won to 44 trillion won

○National debt to reach 1,415.2 trillion won next year, and 1,788 trillion won by 2029

Today's Key Schedule

○Domestic

○International

08:50 Japan Capital Expenditure (YoY) (Q2)

10:45 China Caixin Manufacturing Purchasing Managers' Index (MoM) (August)

15:00 UK Nationwide House Price Index (YoY) (August)

16:50 France Manufacturing Purchasing Managers' Index (August)

16:55 Germany Manufacturing Purchasing Managers' Index (August)

◇Lunch & Evening Commute Weather

○Lowest temperature: 25°C (0°C) ｜Highest temperature: 30°C (▼1°C)
○Precipitation probability: 80% in the morning｜70% in the afternoon
○Fine dust: Good in the morning｜Good in the afternoon

All you need is 3 minutes, essential and cost-effective economic news. Published daily at 8 a.m.

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