The government plans to direct next year’s budget toward AI, future industries, youth support and regional development using higher tax revenue from the semiconductor boom on Tuesday. The budget is expected to rise by more than 10 percent from this year’s 729.9 trillion won and top 800 trillion won for the first time. Democratic Party of Korea and government officials said they agreed to an active fiscal role and to cut nonessential spending. The plan also includes five priority pillars, including national security.
Budget Minister Park Hong-geun, second from left, speaks during high-level budget consultations between the government and the ruling Democratic Party of Korea (DPK) at the National Assembly in Seoul, Tuesday. From left are Rep. Lee Kwang-jae, who chairs the National Assembly's Special Committee on Budget and Accounts; Park; DPK floor leader Rep. Han Byung-do; and DPK policy chief Rep. Kwon Chil-seung. Yonhap
The government plans to channel fiscal resources into artificial intelligence (AI), future industries, youth support and regional development by leveraging increased tax revenue from the semiconductor boom, government and ruling party officials said Tuesday.
The plan comes as next year’s budget is expected to increase by more than 10 percent from this year’s 729.9 trillion won ($527 billion), surpassing 800 trillion won for the first time. Rather than spending the additional revenue on temporary programs, the government and the ruling party intend to reinvest it in future growth.
