The spending plan represents a 12.8 per cent rise from 2026, marking the largest year-on-year increase in the country’s history
3-MIN READ3-MIN ListenReutersPublished: 12:18pm, 1 Sep 2026South Korea on Tuesday unveiled its most aggressive financial spending plan on record, setting total government expenditure for 2027 at 821 trillion won (US$600 billion) to strengthen the country’s technological edge amid the global AI race.In its annual budget proposal, the budget ministry said the spending plan represented a 12.8 per cent rise from 2026, marking the largest year-on-year increase in the country’s history.
Total tax revenue is seen increasing 40.7 per cent next year to 584.4 trillion won, with corporate tax receipts alone projected to more than double to 216.7 trillion won. That revenue will help reduce South Korea’s debt-to-GDP ratio by 3.3 percentage points to 48.3 per cent, down from 51.6 per cent estimated for this year.
