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South Korea's ruling bloc is pressing for a more expansionary 2027 budget, with total spending expected to exceed 800 trillion won ($577 billion) for the first time.
President Lee Jae Myung urged the government to move beyond a narrow focus on fiscal capacity and pursue a "productive" spending strategy to counter low growth.
Budget Planning Minister Park Hong-keun has said the 2027 budget will rise more than 10 percent from the initial 2026 proposal of 727.9 trillion won — the biggest annual increase since 2009.
The Democratic Party of Korea wants spending concentrated on artificial intelligence, semiconductors, autonomous driving, the lunar landing program and other sectors seen as potential new growth engines.
Proposed measures include full tuition support at regional national universities, expanded assistance for young people and small businesses and record-high electric vehicle purchase subsidies.
The budget will back Lee’s three signature megaprojects aimed at strengthening national AI capacity and reducing regional economic disparities, with semiconductor support placed in a special account.
The government plans to announce the budget at a Cabinet meeting on Sept. 1 and submit it to the National Assembly on Sept. 3, ahead of the legislature’s early-December passage deadline.