President Lee Jae-myung delivers a policy speech at the National Assembly on the 2nd... Total expenditure of 820.9 trillion won, the largest ever
A 12.8% increase from this year... Includes a proposal to establish a 160 trillion won 'Future Response Fund' relying on semiconductor tax revenues
Polarization expected to be addressed through the 'three core social policies' of housing, jobs, and microfinance
Budget and Accounts Committee to hold comprehensive policy inquiries on the 4th... Statutory processing deadline is December 2nd
President Lee Jae-myung will deliver a policy speech on the 2nd at the National Assembly plenary session to explain the 2027 budget bill and request its parliamentary passage. This marks President Lee's fourth policy speech, following the second supplementary budget in June of last year, the 2026 budget bill in November of the same year, and the supplementary budget in response to the Middle East situation in April this year. The government-submitted budget bill for next year sets total expenditures at 820.9 trillion won, the largest scale in history and a 12.8% increase from this year's main budget.
In his speech, President Lee is expected to emphasize the necessity of proactive fiscal policy for stabilizing public livelihood, securing future growth engines, and region-led growth, while urging the National Assembly for prompt review and processing. He is also expected to express his commitment to resolving polarization through government-led 'three core social policies' including housing, jobs, and microfinance. The budget bill includes a proposal to establish a 160 trillion won Future Response Fund to invest the massive additional tax revenues generated by the semiconductor boom into youth, growth engines, regions, and education/talent.
The problem is that these financial resources are based on expected values. The semiconductor boom is an economic cycle that can turn downward at any time, and it is a repeatedly confirmed fiscal principle that tying boom-time tax revenues to regular expenditures creates deficits proportional to any drop in revenue. A 12.8% increase is a rare growth rate outside of financial crisis and pandemic periods. In particular, a 160 trillion won fund with only stated purposes risks becoming a pork-barrel budget without execution systems and performance evaluation mechanisms. An allocation method that leaves fiscal rules dependent on optimistic tax revenue projections means we must start the conversation all over again under the name of control.
The Special Committee on Budget and Accounts of the National Assembly will hold comprehensive policy inquiries for two days starting on the 4th, and the statutory processing deadline for the budget bill is December 2nd. Amid political turbulence triggered by the vote on the national investigation regarding Chief Justice Cho Hee-de, it remains to be seen whether budget cooperation can proceed independently. Where 821 trillion won of taxpayers' money is based and where it flows—if no one in the speech and inquiry process asks for specific grounds and exit strategies behind 'proactive fiscal policy,' that very complacency will be the bill paid by the next generation.