The government has drawn up next year's budget bill at 924.17 billion won. That is up 459.01 billion won (98.7%) from this year's budget. The plan is to concentrate resources on expanding investment in advanced industries, supporting finance for low-income households, and helping young people build asset.
On the 1st, the Financial Services Commission announced the 2027 fiscal year budget bill with these details. The bill includes 350 billion won for Future Response Fund programs such as the Public Growth Fund and the Youth Future Savings, and 42.2 billion won for the Public Interest Whistleblower Encouragement Fund to pay rewards for reports of unfair trading and accounting fraud. The government's budget bill will be submitted to the National Assembly in early September, reviewed, and finalized in early December.
The Financial Services Commission allocated 1.055 trillion won to boost growth potential. It will inject 1 trillion won in fiscal funds into the Public Growth Fund, which invests in advanced strategic industries such as artificial intelligence (AI) and semiconductors. The plan is for fiscal funds to serve as a catalyst for private capital inflows and create a fund of more than 200 trillion won over five years. It newly allocated 50 billion won for AI pilots by young Fintech corporations and training professionals, and 50 billion won for the Regional Revitalization Investment Fund.
The budget to stabilize living conditions for low-income households is 1.0828 trillion won. By injecting 527.4 billion won in government funds into the Sunshine Loan special guarantee and Sunshine Loan Youth, a total of 2.78 trillion won in loans will be supplied. A "K-Livelihood Protection Loan (tentative name)" for mid- to low-credit borrowers in the bottom 50% of credit scores will also be introduced. With government and private funds, 600 billion won will be supplied to lend an initial 1 million won at an annual rate of 4.5% with a 10-year maturity. For debt adjustment on long-term arrears claims of small businesses hit by COVID-19, 500 billion won was allocated.
A total of 2.0855 trillion won was allocated to help young people build asset. The centerpiece is the Youth Future Savings, for which 1.7 trillion won was set aside. It adds a government contribution to a monthly deposit of up to 500,000 won and offers a tax exemption on interest income. The income requirements for individuals and households in the general type will be removed, and the preferential contribution rate will be raised from 12% to 15%. A preferential track will also be introduced to support 25% of deposits for young people working at small and medium-sized enterprises in the provinces.
A new 146.5 billion won was reflected for the "Our Child Independence Fund," in which parents and the government jointly save into a fund in a child's name. A total of 88.3 billion won was also allocated for the Youth Future Bogeumjari Loan, which helps those 39 and under purchase non-apartment dwellings, and for combined guarantees for jeonsei and monthly rent. In addition, 500 billion won was allocated to a support fund to normalize real estate project financing (PF) business sites, and 42.2 billion won for rewards for reports of stock price manipulation and accounting fraud, respectively.