Politics · South Korea · 1 hr ago
South Korea’s parties clash over record 2027 budget
South Korea’s National Assembly has begun reviewing a record 820.9 trillion won budget for 2027, proposed by the government.
The ruling Democratic Party says spending should support households and future industries, including AI and semiconductors.
The plan includes a 162.3 trillion won Future Response Fund, which the government says will support investment using extra tax revenue linked to the semiconductor boom.
The opposition People Power Party says the spending risks weakening public finances and reducing parliament’s control over government funds.
It plans to seek about 134 trillion won in cuts and adjustments, including money held in the new fund.
Lawmakers are scheduled to review the budget through November and vote on it in a committee meeting on November 30.
South Korea’s parties clashed on October 30 over the government’s record 2027 budget during a parliamentary hearing.
The government’s proposal totals 820.9 trillion won, up 12.8% from this year, according to Donga Ilbo.
The Democratic Party backs spending to support households and future growth industries, including AI and semiconductors.
The People Power Party warned about fiscal sustainability and said it would seek cuts and adjustments of about 134 trillion won.
The parties also disagreed over a proposed 162.3 trillion won Future Response Fund financed with increased tax revenue.
- Who
- The Democratic Party and the People Power Party, along with experts who gave evidence at the hearing.
- What
- They clashed over the proposed 2027 government budget and the Future Response Fund.
- When
- October 30, 2026.
- Where
- At the National Assembly in Seoul, South Korea.
- Why
- The parties disagree over whether increased revenue should fund investment in growth and household support or be used to reduce debt and protect fiscal sustainability.
Democratic Party
People Power Party
Budget priorities
Democratic Party
The Democratic Party supports public investment in household needs and future growth industries such as AI and semiconductors.
People Power Party
The People Power Party says the expansion risks populist spending and threatens fiscal sustainability.
Future Response Fund
Democratic Party
The Democratic Party says the fund can support long-term investment and growth.
People Power Party
The People Power Party says the fund could weaken parliamentary oversight and argues that surplus revenue should be saved or used to reduce debt.
The National Assembly’s Budget and Accounts Special Committee held a public hearing on the 2027 budget, opening its review.
The Democratic Party plans to hold a workshop for its committee members.
The committee plans to hold comprehensive policy questioning.
The committee plans to review the budget by sector.
The committee’s budget subcommittee plans to review the proposal.
The committee plans to vote on the budget at a full meeting.
- Proposed total spending
- 820.9 trillion won
- Year-on-year increase
- 12.8%
- Future Response Fund
- 162.3 trillion won
- Proposed opposition cuts and adjustments
- About 134 trillion won
- Fund’s reported surplus funds
- 104.4 trillion won
4 sources
What people are saying
The government is saying it will spend money as it pleases, outside the National Assembly’s control; it is, in short, a “200 trillion populism free pass.
To say that we should reduce debt rather than invest in these projects is somewhat out of step with the trend of the global industrial competition era.
Looking at this government’s budget and finances, I feel, “Isn’t this a debt party?
Using the excess tax revenue collected in 2026 and 2027 well will be a way to make the most of the opportunity.