Ahead of the regular session of the National Assembly, the Democratic Party and the government emphasized the proactive role of fiscal policy while discussing next year's government budget today (the 25th).

The ruling party and the government held consultations on the 2027 budget at the National Assembly on this day.

Floor Leader Han Byeong-do said at the meeting, "As fiscal capacity has expanded, we must establish priorities on where and how much to invest first, and come up with wise solutions to strategically inject funds into various fiscal demands such as youth, local-led growth, and future strategies."

Democratic Party Policy Committee Chairman Kwon Chil-seung stated, "The 2027 budget must realize the role of proactive fiscal policy to support not only a great leap forward for South Korea but also a great transformation."

Minister of Budget and Planning Park Hong-keun also stated, "The 2027 budget is the first budget for which our government has entirely supervised the entire budgeting process, and we focused on supporting a great leap forward to an 'irreplaceable South Korea' through proactive fiscal management."

He added, "To prevent tax revenues increased by the semiconductor boom from being consumed by temporary expenditures, we will establish a Future Response Fund and utilize it as a strategic investment platform that supports the rebound of potential growth rates while serving as a fiscal stabilization device to mitigate tax revenue volatility."

Following the consultative meeting, Policy Committee Chairman Kwon and Representative Jung Tae-ho, the Democratic Party's secretary for the National Assembly's Special Committee on Budget and Accounts, explained the specific directions of the budget.

The ruling party and the government first selected five intensive investment areas: ▲ AI and three mega projects; ▲ expansion of future growth engines such as aerospace and bio industries; ▲ expanded support for youth at each stage of growth; ▲ response to K-shaped polarization and support for local-led growth; and ▲ reinforcement of national safety.

In the case of the 'AI and three mega projects' area, a semiconductor special account will be created to establish an integrated support system, while AI solutions utilizing manufacturing tacit knowledge (manufacturing know-how) will be developed and supported.

In addition, plans to expand support, such as supplying 10,000 CPUs for the development of frontier-class AI models, were included.

Regarding the 'expansion of future growth engines,' the budget includes full-scale support including research and development for the 2030 lunar landing, the expansion of autonomous vehicle pilot zones, and increasing electric vehicle subsidies to an all-time high.

Specific details for 'comprehensive support tailored to each stage of youth growth' include the introduction of a college student internship semester system that grants academic credits when college students engage in internship activities for a semester, and a budget to establish the 'Our Children Independence Fund,' which provides up to 1.2 million won annually until the age of 18.

Representative Jung noted, "In the case of child-rearing, support is currently provided through basic income and child allowances, and there is a plan to expand and reorganize this into a 'child basic allowance.'"

Regarding 'response to K-shaped polarization and local-led growth,' a 'growth engine special subsidy' will be newly established, and a budget necessary for the government to support a significant portion of facility investments when anchor companies relocate to regional areas will be compiled.

In addition, a local future growth support fund will be created to include a budget supporting future growth hubs such as improving residential environments, while a special account for regional essential medical services will be newly established and full tuition for regional national universities will be supported.

Specific support measures for 'reinforcement of national safety' include support for the development of nuclear-powered submarines and a pay raise for junior military officers.

Floor Leader Han emphasized regarding the processing of the budget, "Following last year, we will definitely process the budget within the legal deadline this year as well to create a budget for the lives of the people and the future of South Korea."

(Photo: Yonhap News)