The ruling Democratic Party of Korea positively evaluated the first budget proposal for next year (worth 728 trillion won) from the Lee Jae-myung government, calling it "a catalyst for revitalizing the economy and people's livelihoods." They emphasized the increases in total expenditure at 8.1%, the historic expansion of the research and development budget, and efforts to minimize government bonds issuance through large-scale expenditure restructuring.
The Democratic Party of Korea emphasized on the 29th in a press release that "the 2026 budget is a catalyst for promptly recovering the struggling economy and people's livelihoods, and serves as a cornerstone for Korea to make a resurgence that attracts global attention." This budget proposal will be submitted to the National Assembly on September 2 after passing through the Cabinet meeting.
The Democratic Party of Korea positively assessed the proactive fiscal stance in response to the economy. They noted that "the growth rate forecast for next year is only 1.8%, and the increase in the number of employed is expected to fall from 170,000 this year to 110,000 next year, raising concerns about 'jobless growth'," and stated that "fiscal policy must play its role."
The Democratic Party of Korea highlighted that "the budget for the future of Korea has been significantly increased." They particularly emphasized the expansion of the research and development budget that had been reduced during the Yoon Suk-yeol government. Next year's research and development budget is set at 35.3 trillion won (a 19.3% increase from the previous year), marking the highest level to date. It is especially noted that investments for entering the "global top three" in the artificial intelligence sector have also been included.
They also highly praised the consideration of fiscal soundness. The government plans to restructure expenditures, which are the largest in history at 27 trillion won, to minimize the issuance of government bonds. The Democratic Party of Korea explained that "this is the time to shift our thinking, to save the economy through active finances and increase tax revenue to expand fiscal capacity, creating a virtuous cycle of finance," adding that "next year's budget is planned with this in mind."
They noted the government's decision to publicly disclose the details of expenditure restructuring for the first time. The Democratic Party of Korea remarked that "no previous government has ever made public the details of expenditure restructuring," and characterized this as "a meaningful first step towards more transparently sharing fiscal information from the government in Korea, where the people are the owners."
The Democratic Party of Korea intends to reflect supplementary opinions during the National Assembly review process. Hanjung-ae, the chairperson of the policy committee, and Lee So-young, the chairperson of the budget and settlement policy coordination committee, stated that "we will listen to the voices of the people and the field to incorporate areas that need improvement" and added that "we will ensure that the budget enhances the lives of the citizens."