The Climate, Energy and Environment Ministry’s proposed 2027 budget and total fund expenditure amount to KRW 25.7319 trillion, an 18.3% increase from this year. The government’s overall 2027 expenditure budget proposal totals KRW 820.9 trillion, up KRW 93 trillion, or 12.8%, from this year’s initial budget.
Key Changes
The most notable feature of the government proposal is its investment in advanced-industry infrastructure. The Climate, Energy and Environment Ministry has allocated KRW 1.9351 trillion for electricity and water infrastructure needed by advanced industries such as semiconductors and artificial-intelligence data centers.
- Electricity: KRW 1.5489 trillion
- Water: KRW 386.2 billion
The proposal also includes KRW 572.4 billion for transmission-side energy storage systems, KRW 350 billion in electricity-bill support for vulnerable groups, and KRW 500 billion in capital contributions to Korea Electric Power Corporation.
The key point is how much investment is allocated to electricity and water infrastructure, rather than the ministry’s total budget alone.
Current Status
The figures currently available are from the government proposal, not the budget finalized by the National Assembly. In particular, KRW 25.7319 trillion is the combined total expenditure of the Climate, Energy and Environment Ministry’s budget and funds; it should not be interpreted as the budget for a single new project.
The government also plans to establish a Future Response Fund worth KRW 162.3 trillion in the 2027 budget proposal. Of this amount, KRW 45.4 trillion is planned for investment in youth, growth engines, regional development, education, talent, and social programs.
Impact
The proposal is notable for combining investment in industrial infrastructure and the power grid with support for vulnerable groups in the energy sector. However, budget allocations alone do not determine the eventual impact on electricity bills or industrial sites. The detailed implementation of the Future Response Fund will also need to be reviewed after deliberation and through its operating plan.
Next Confirmation Point
The 2027 budget proposal is scheduled to be submitted to the National Assembly on September 2, 2026, and finalized in December after deliberation and approval. The final amounts and project details may therefore change depending on the National Assembly’s review.
Sources currently confirmed:
- Newsis, ‘Climate Ministry Proposes Record KRW 25.7 Trillion Budget for Next Year… KRW 1.9 Trillion for Three Mega Electricity and Water Projects’: https://mobile.newsis.com/view/NISX20260831_0003770149
- Edaily, ‘KRW 1.9 Trillion for Electricity and Water for Mega Projects… Climate Ministry’s KRW 25.7 Trillion Budget Is a Record’: https://www1.edaily.co.kr/News/Read?mediaCodeNo=257&newsId=03893366645575856
- Newspim, ‘[2027 Budget Proposal] Climate Ministry’s Budget Rises 18% to KRW 25.7 Trillion… Accelerating the Power Grid, Solar Power, and Electric Vehicles’: https://newspim.com/news/view/20260901000516
- Newspim, ‘Park Hong-keun’s KRW 821 Trillion Budget Proposal for Next Year Sets a Record… KRW 162 Trillion Future Response Fund to Be Established’: https://ir.newspim.com/news/view/20260901000525
- Newsis, ‘KRW 821 Trillion Super Budget Proposed for Next Year… Focused Investment in Growth Engines, Youth, and Local Regions’: https://www.newsis.com/view/NISX20260831_0003768633
- Edaily, ‘Record KRW 820 Trillion Super Budget… Fiscal Deficit Falls to 0.1% on Strong Tax Revenue’: https://www1.edaily.co.kr/News/Read?mediaCodeNo=257&newsId=03706406645575856
Sources checked: September 1, 2026