Gov't to allocate 39.7 tln won to finance ministry in 2027 budget

Seoul, September 1 - The South Korean government plans to allocate 39.7 trillion won (approximately $29 billion) for the finance ministry in its 2027 budget, marking a 15.7% increase from the 2026 budget. The emphasis will be on fostering growth engines and boosting export financing. The Ministry of Finance and Economy highlighted plans to establish a new strategic investment account under Korea Investment Corp., allocating 500 billion won.

Additionally, a strategic export finance fund will be launched to bolster exporters on large-scale projects. To counter supply chain disruptions fueled by the Middle East conflict, 200 billion won will be set aside for domestic and overseas production bases. The AI and digital projects under the Economic Development Cooperation Fund will receive $170 million to establish an AI institute in Tanzania.

The budget also earmarks 3.6 trillion won for the hyper-innovation economy, up from 2.7 trillion won in the previous year, focusing on sectors like offshore wind power, green hydrogen, and small modular reactors.