Korea just signaled its biggest fiscal expansion in years.
South Korea's government is planning to raise total spending more than 10% next year, pushing the budget past 800 trillion won ($533 billion) for the first time. The move follows the country's first National Fiscal Strategy Conference in four years, called to address slowing tax revenue and regional economic decline. A new Future Response Fund will direct additional tax revenue toward four priority areas, starting with youth jobs and regional revitalization. President Lee Jae-myung says the expansionary approach needs to continue into next year's budget planning.
Sources:
Korea Plans Record 800 Trillion Won Budget for Next Year — Seoul Economic Daily, July 14, 2026
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