(KPL/Yonhap) The Ministry of Trade, Industry and Resources said Wednesday its 2026 budget increased nearly 20 percent from this year, with a focus on accelerating the artificial intelligence (AI) transformation in the manufacturing sector and responding to global trade uncertainties.

The ministry's budget for next year was confirmed at 9.4 trillion won (US$6.4 billion), up 18.8 percent from the 2025 allocation, as the National Assembly passed next year's budget of 727.9 trillion won the previous day.

The finalized budget is slightly lower than the 9.7 trillion won that the ministry initially proposed for contributions to the trade insurance fund to support a US$350 billion investment in the United States under the Seoul-Washington tariff deal.

Republic of Korea, however, has decided to establish a separate strategic investment corporation to manage a special fund for U.S. investment. The fund will be raised through earnings from foreign exchange reserves entrusted by the government and the Bank of Korea, as well as overseas issuance of government-guaranteed bonds.

For 2026, the ministry doubled its budget for AI transformation in the manufacturing industry from this year to 1.1 trillion won.

The project will be led by the Manufacturing AX (M.AX) Alliance, launched in September and comprising some 1,000 major companies and research institutes, including Samsung Electronics Co., Hyundai Motor Group, LG Electronics Inc. and robotics firm Rainbow Robotics.

Another 1.7 trillion won has been set aside for fostering the growth of advanced industries, such as semiconductors, bio-health, shipbuilding and secondary batteries, marking a 34.2 percent increase from this year.

The trade response budget was expanded 18 percent to 1.2 trillion won to help Korean companies respond to global trade uncertainties sparked by protectionist policies of major economies.

Some 1.9 trillion won has been allocated for supply chain stabilization measures, including a critical mineral recycling project.

KPL