President Lee calls next year’s 800 trillion-won budget a springboard for a “super-gap” leap

President Lee Jae Myung has described South Korea’s next budget as a foundation for an industrial leap, as his government prepares an expected package exceeding 800 trillion won.

Speaking at a Cabinet meeting at the Blue House, Lee said the world economy was entering a major turning point. Artificial intelligence, the energy transition and changes in global supply chains were reshaping the structure of industry and the economy, he said. The budget should therefore produce visible changes in people’s daily lives as well as strengthen national industrial capacity.

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Next year’s budget proposal must become a strong springboard for the Republic of Korea to leap forward as a leading nation with a super-gap advantage.

Lee cited three major projects and seven seed policies as priorities. He also referred to support of up to 200 million won per young person, the creation of 10 start-up cities, the construction of 200,000 public housing units and an expansion of basic income in farming and fishing communities.

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The world is now facing a major turning point in the industrial order.

The budget is expected to reach a record scale because the semiconductor boom is forecast to drive corporate tax revenue to an all-time high. Lee said the government should use the additional fiscal resources to expand the economy and upgrade industrial capabilities, creating a productive cycle that would eventually increase fiscal room again.

He also addressed rising interest rates, saying the government should limit the hardship for vulnerable groups and prevent damage to growth potential. As the first regular session of the second half of the 22nd National Assembly opened, Lee urged lawmakers from both parties to work with the government and improve the budget during deliberations. He said political cooperation should focus on improving people’s livelihoods and opening a path for the country’s future.

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A productive virtuous-cycle fiscal strategy is essential: use the additional resources for the future to expand the economic pie and upgrade industrial capabilities, then expand fiscal capacity again through that process.