'Super budget' to target AI, future growth, youth, regional development

South Korea's government and ruling Democratic Party of Korea (DPK) plan to channel next year's budget, expected to exceed 800 trillion won ($527 billion) for the first time, into artificial intelligence, future industries, youth support, and regional development, funded by increased tax revenue from the semiconductor boom. DPK policy chief Rep. Kwon Chil-seung said the two sides agreed on an active fiscal role to drive Korea's structural transformation, streamlining nonessential expenditures to concentrate on strategic, high-growth areas.

The government plans to channel fiscal resources into artificial intelligence AI , future industries, youth support and regional development by leveraging increased tax revenue from the semiconductor boom, government and ruling party officials said Tuesday. The plan comes as next year’s budget is expected to increase by more than 10 percent from this year’s 729.9 trillion won $527 billion , surpassing 800 trillion won for the first time. Rather than spending the additional revenue on temporary programs, the government and the ruling party intend to reinvest it in future growth. “The Democratic Party of Korea DPK and the government have agreed on an active fiscal role to drive Korea’s structural transformation,” Rep. Kwon Chil-seung, the DPK’s policy chief, said following high-level budget consultations between the two sides. “We will boldly streamline nonessential expenditures to concentrate resources on strategic, high-growth areas.” According to Rep. Jung Tae-ho, the DPK’s representative on the National Assembly's Special Committee on Budget and Accounts, the gov