Policy Report
Economy
Welfare
Technology
🔥 85
2026-02-13
2026 National Budget Overview
Ministry of Planning and Budget
1The 2026 government budget is set at 727.9 trillion KRW, up 8.1% from 2025.
210.1 trillion KRW is allocated for AI, with R&D spending reaching 35.3 trillion KRW.
3Median income rises by 6.51% to boost welfare and introduce public transport passes.
📋 Key Findings
🔍 Background
The budget was prepared to secure national survival and future growth engines amid the AI transition and shifting international trade orders. Fiscal sustainability was prioritized through a record 27 trillion KRW restructuring of low-performance projects.
📌 Key Points
AI funding tripled to 10.1 trillion KRW, and the R&D budget was expanded by 19.3% to 35.3 trillion KRW. The standard median income was raised by a record 6.51%, increasing livelihood benefits for four-person households to over 2 million KRW monthly. Local development block grants were tripled to 10.6 trillion KRW.
📝 Implications
The government aims to build a virtuous economic cycle through performance-oriented strategic fiscal management rather than simple spending increases. By building an 'AI highway,' South Korea expects to gain a competitive edge in the global technological hegemony race.
📝 Impact on Daily Life
A fixed-rate public transport pass will be introduced, allowing unlimited subway and bus use for 50,000–60,000 KRW per month. A new 'Youth Future Savings' program will provide up to a 12% government match for low-income youth. A pilot rural basic income of 150,000 KRW per month will be paid to residents in depopulating areas.
📚 Glossary
기준중위소득 (Gijun Jungwi Sodeuk)The median household income used as a baseline for determining eligibility for various government welfare programs.
R&D (Yeongu Gaebal)Research and Development; activities invested in to acquire new knowledge or develop new technologies.
포괄보조 (Pogwal Bojo)Block grants provided to local governments with broad usage categories, allowing them to decide projects based on local needs.
GPU (Geuraepik Cheori Jangchi)Graphics Processing Unit; a core hardware component essential for high-speed AI computations.