South Korea plans to raise its 2027 budget by a record 12.8% to 820.9 trillion won, according to government announcements on Wednesday.
The plan, approved during a Cabinet meeting on Tuesday, is designed to establish a "growth-led fiscal virtuous cycle," the Ministry of Planning and Budget said.
The budget will draw upon 162.3 trillion won in excess tax revenues, surpassing the 10-year domestic tax trend line. Of this total, 45.4 trillion won will be funneled into youth support, growth engines, local regions, and education and talent, the ministry added.