The government announced that it has set total spending in the 2027 budget proposal at KRW 820.9 trillion. The year-on-year increase is 12.8%, which was reported as the highest level ever for a government budget proposal announcement. As this is currently only the government’s proposal, the final amount and individual programs may change after review and approval by the National Assembly.

Key Summary

The figures to confirm first in this budget proposal are total spending of KRW 820.9 trillion and a Future Response Fund of KRW 162.3 trillion. The government said it plans to operate the Future Response Fund using additional tax revenues, including revenues exceeding the average growth rate of domestic taxes over the past 10 years.

The key point is to distinguish between the “budget proposal announced by the government” and the “budget finalized by the National Assembly.”

Essential Facts

  • Of the Future Response Fund, next year’s planned spending was reported to total KRW 45.4 trillion, allocated to areas including youth, growth engines, regional development, education, and talent.
  • The government was reported to have finalized a plan to invest more than KRW 200 trillion in national R&D over the next five years, while pursuing a leap toward becoming one of the world’s top three AI powers and strengthening strategic technology competitiveness.
  • The industrial R&D innovation direction includes fostering the 5-Region 3-Special-District growth engines, R&D for M.AX, and R&D to strengthen industrial competitiveness.

The figure of KRW 13.2 trillion for the Ministry of Trade, Industry and Energy’s 2027 budget has not been used as a confirmed figure in this article because the original official source and independent sources could not be sufficiently verified. In addition, the KRW 200 trillion R&D figure should not be interpreted as meaning that the entire amount will be allocated to a specific field.

Background in One Line

This is a government budget proposal announcement that presents both a large-scale fiscal management plan and the direction of national R&D and industrial investment. The Future Response Fund should be viewed separately in terms of its overall operating plan and its spending plan for next year.

Next Schedule

The 2027 budget proposal was reported to be scheduled for submission to the National Assembly on September 3, 2026. It will then be finalized through review and approval by the National Assembly. Accordingly, the currently reported figure of KRW 820.9 trillion and the detailed allocations reflect the government’s proposal before the parliamentary process.

Source Check

  • [ChosunBiz, Report on the 2027 Budget Proposal and Future Response Fund](https://biz.chosun.com/policy/policy_sub/2026/09/01/PCMB67ETZ5F6RI3ZEA3RWH3KNA/?outputType=amp) — Checked: September 1, 2026, 03:30 UTC
  • [Newsis, Report on the 2027 Budget Proposal](https://nwww.newsis.com/view/NISX20260831_0003768633) — Checked: September 1, 2026, 03:30 UTC
  • [Hankyoreh, Report on the 2027 Budget Proposal](https://www.hani.co.kr/arti/economy/economy_general/1275649.html) — Checked: September 1, 2026, 03:30 UTC
  • [Edaily, Report on the KRW 200 Trillion National R&D Investment](https://www.edaily.co.kr/News/Read?newsId=02394406645485984) — Checked: September 1, 2026, 03:30 UTC
  • [Newsis, Mid- to Long-Term National R&D Investment Strategy Report](https://mobile.newsis.com/view/NISX20260901_0003770407) — Checked: September 1, 2026, 03:30 UTC
  • [Government Performance Evaluation Portal, Industrial R&D Innovation Materials](https://www.evaluation.go.kr/web/otcmList.do?mao_cd=1451000) — Checked: September 1, 2026, 03:30 UTC
  • [National Assembly Budget Office, Korea’s Finances](https://www.nabo.go.kr/board/file/bulkDown.do?bid=19&idx=9183) — Checked: September 1, 2026, 03:30 UTC
  • [News1, Regular National Assembly Session and Budget Review Schedule Report](https://www.news1.kr/amp/politics/assembly/6275174) — Checked: September 1, 2026, 03:30 UTC