On the 26th, the Democratic Party of Korea and the government confirmed that the budget for next year must play an active role in securing potential growth and recovering the people's economy. To this end, they decided to expand R&D (research and development) investments to their highest level ever in the 2026 budget while concentrating finances on future industries such as AI, semiconductors, and bio, and reinforcing budgets for recovery in people's livelihoods, including expanding child allowances, establishing ongoing support for young people's rent, and issuing local love gift certificates.
◇Concentrated investment in R&D, AI, and Mirae Industries
A notable aspect of this agreement is the expansion of research and development (R&D) investments. The ruling party and government stated, "We have decided to allocate the largest R&D budget in history to correct the mistake of reducing the R&D budget in the previous government and to actively invest for the future."
In particular, to leap to become one of the top three AI countries and realize an 'AI basic society,' they have decided to significantly expand infrastructure, including additional purchases of graphics processing units (GPUs), and to focus budgets on AI services that are felt in daily life, such as startups and job seeking.
They also decided to actively invest in key technology R&D in advanced industries such as AI, semiconductors, and bio, and to newly establish a 'National Growth Fund' to expand investments in future strategic industries.
Investment to respond to the climate crisis will also be expanded. To this end, they have decided to create a new 'support fund for the transition to electric vehicles' to provide additional support when converting internal combustion engine vehicles to electric cars.
◇Expansion of budget for child allowance support and issuance of local love gift certificates
Support for recovering livelihoods and vulnerable groups has also been solidly reflected. The target for child allowance support will be expanded, and additional support will be provided in areas with population decline. Furthermore, support for rent for low-income young people will be established on a regular basis. Additionally, there are plans to increase the budget for issuing 'local love gift certificates' to revitalize the local economy and increase sales for small businesses and self-employed individuals.
The budget plan also includes support for smart safety equipment and expansion of large oil fire response equipment to prevent industrial accidents and fires. Additionally, plans will be made to expand military service compensation and strengthen treatment for spouses of veterans.
Other plans include expanding comprehensive subsidies to strengthen local autonomy and reflecting methods to drive regional growth through local medical schools in the budget.
The budget for next year is scheduled to be approved at a Cabinet meeting on the 29th and submitted to the National Assembly. A policy committee chairperson stated, "The Democratic Party will listen to the voices of the people and the field and ensure that necessary elements are diligently supplemented during the review process of the budget in the National Assembly."