KPL
(KPL/Yonhap) Republic of Korea will prioritize economic recovery in next year's fiscal policy, while enhancing support for next-generation research and development (R&D) projects, the finance ministry said Tuesday.
(KPL/Yonhap) Republic of Korea will prioritize economic recovery in next year's fiscal policy, while enhancing support for next-generation research and development (R&D) projects, the finance ministry said Tuesday.
The objectives are part of the government's 2026 budget guidelines, approved by the Cabinet the same day, which also emphasize maintaining fiscal soundness, according to the Ministry of Economy and Finance.
The ministry said while the national debt remains at a manageable level compared with other major economies, concerns persist over the long-term sustainability of public finances due to a weakening tax base amid slowing economic growth and rising mandatory expenditures driven by an aging population.
In 2026, the government aims to stimulate domestic demand and support small businesses, while creating more job opportunities, particularly for the younger population, to stabilize livelihoods and bolster economic recovery.
To reinforce industrial competitiveness, the government will foster an artificial intelligence (AI)-driven innovation ecosystem and support key industries, such as semiconductors and biotechnology,
To address demographic challenges and create a sustainable future, the budget will focus on tackling low birth rates, aging population and population decline in remote areas.
However, the ministry has yet to disclose the exact budget figure or detailed spending plans amid uncertainty over a potential regime change, as the Constitutional Court nears a ruling on whether to reinstate or remove impeached President Yoon Suk Yeol.
If Yoon is removed from office, a presidential election will be held within 60 days.
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