Unification ministry's 2027 budget plan seeks to revive railway project

The unification ministry has proposed a 2027 budget seeking over 1.25 trillion won (US$913.7 million) to revive inter-Korean cooperation efforts, including funding for a long-dormant cross-border railway project. This represents a 0.82 percent increase from the current year's budget and exceeds the 1 trillion won mark for the second consecutive year if approved by the National Assembly.

Among the notable budget allocations is roughly 24.7 billion won for the envisioned Gyeongwon Railway, a cross-border line connecting Seoul and Wonsan in North Korea. Work on the railway was halted in May 2016 following North Korea's fourth nuclear test. The ministry aims to complete the South Korean section of the railway by 2029.

However, funding for a North Korean human rights foundation has been significantly reduced by 90 percent, as the organization has yet to launch. This cut is attributed to the unused allocation from the previous year.

The ministry's policy priorities have shifted, with a focus on youth education on peaceful coexistence. Up to 7.15 billion won will be allocated to build a workforce of up to 10,000 people dedicated to this campaign. Humanitarian aid funding, including support for infants, healthcare, and relief assistance, will be cut by 15 percent due to underperforming programs.

Despite the suspension of inter-Korean exchanges, the ministry remains committed to cooperation. President Lee Jae Myung has repeatedly reached out to Pyongyang to improve relations, while Unification Minister Chung Dong-young aims to revive suspended joint economic projects. Although no joint economic or cooperative projects are currently underway due to strained relations.