President Lee Jae-myung instructed on the 13th to fully disclose the specifics of next year's budget plan and expenditure restructuring to enhance budget transparency, and to consider the introduction of an external inspection body (ombudsman) involving private participation. He also ordered specific measures for savings, such as increasing financial interest support over direct support, gradually phasing out coal subsidies, and directing the sale of government assets.
On that day, President Lee presided over the 'National Finance Saving Meeting' at the Presidential Office. The meeting, attended by budget officials from the Ministry of Economy and Finance and related departments, as well as private experts, was a platform to share the progress of the expenditure restructuring for the 2026 budget and discuss savings strategies.
◇Experts say, 'Budget must be transparently disclosed'… President Lee says, 'There's no reason to hide it'
During the meeting, Jung Chang-soo, head of the National Budget Research Institute, noted, "The government issues expenditure restructuring press releases every year, but has never disclosed the whole list. It would be better to disclose the specifics in advance and undergo a solicitation process for opinions."
In response, President Lee said, "The national budget will be sent to the National Assembly. Since the execution itself is not a secret, there is no reason not to disclose it," and instructed the Ministry of Economy and Finance to make the finalized restructuring details public.
He also emphasized the need to institutionalize private participation in the budget review process. In response to an expert suggestion about the necessity of a 'citizen participation budget review,' President Lee stated, "Public officials think that what they do is inherently right and necessary because it is their responsibility, making it difficult to change from within. Ultimately, it needs to be handled externally," and remarked, "We need to research providing support to non-profit organizations to enable regular budget reviews, which could yield much greater savings than the supported budget itself."
◇Lee instructs to expand second financial support and review the period of coal subsidies
The meeting also addressed the transition of financial support methods as a key issue. President Lee said, "Although we are in a fiscal crisis, we should minimize areas that cannot be transitioned to interest support and ensure financial capacity by shifting as much as possible to interest support." He specifically suggested, "For the next 3 to 4 years, let's transition to interest support as much as possible and revert to increasing direct loans when there is enough financial capacity."
He announced a restructuring policy regarding the issue of subsidies for coal and briquette production. Currently, there is one private coal mine and 17 briquette manufacturing plants operating in the country, and the government provides subsidies of about 48 billion won annually.
President Lee stated, "It seems too long to provide these subsidies until 2030," and instructed a review. In response, the Ministry of Industry mentioned, "We will gradually reduce the subsidies over three years and transition to a system that supports briquette coupons instead."
President Lee also mentioned the delay in the sale of the 88 Golf Course owned by the Veterans Affairs Department, saying, "While there might not be a little consideration in terms of asset preservation, I would like you to look into why we are keeping the 88 Golf Course." The government has already set a sale policy, but the transaction has not been realized. The Ministry of Economy and Finance stated it would look into the sale procedures and options.
President Lee also emphasized the importance of identifying whether it is necessary in today's era to carry on with these projects or if it would be more efficient to conduct new initiatives, instructing a reward system for public officials who propose measures for revenue enhancement and expenditure cuts for low-efficiency budgets during the preparation process for next year's budget.
◇President Lee says, 'Budget demands fragmented from a supplier-centered approach should be integrated into a demand-centered approach'
On that day, private experts also suggested reallocating policy financing for small and medium enterprises toward more profitable corporations, and integrating similar welfare projects such as cash support for children and asset formation accounts.
President Lee expressed agreement with the idea of consolidating various allowances for infants into a basic income for children, stating, "We need to integrate the budget, which is fragmented from a supplier-centered approach, into a demand-centered approach."
In response to an expert's suggestion to review the selection of financial institutions by local governments and interest rates, President Lee ordered, "Please review whether it's possible for the government to conduct a nationwide survey of local governments and make it public."
President Lee mentioned the need for the consolidation of public institutions to enhance fiscal efficiency, stating, "It seems that the next step should be to consolidate public institutions, but there are so many of them that I can't count them."
In response, Kang Yu-jung, spokesperson for the Presidential Office, explained during a related briefing that "if there are public institutions whose very existence needs to be reconsidered, it is President Lee's usual thought that it is necessary to consolidate those institutions boldly, and that thinking has been reflected."
The Ministry of Economy and Finance reported on the progress of the expenditure restructuring for next year's budget during the meeting. Out of a total of 17,000 projects, approximately 4,400 were reduced, and 1,300 projects were eliminated, leading to total savings of 27 trillion won. The savings include 25 trillion won in discretionary spending and 2 trillion won in mandatory spending. It was also stated that reductions were made in project costs as well as operational costs (47.9 billion won) for events, promotions, and administrative expenses, and improvements were also made to project consolidations and low-performing project eliminations, as well as to education grants and job-seeking allowance systems.