Gov't to allocate $29 bil. to finance ministry in 2027 budget
Heo Jang, the second vice minister of the Ministry of Finance and Economy, delivers a speech at the Strategic Economy and AI Transformation for SMEs seminar held at the Korea Federation of SMEs in Yeongdeungpo District, Seoul, Tuesday. Yonhap
Korea's finance ministry said Tuesday that 39.7 trillion won ($29 billion) has been earmarked for the ministry under the government's 2027 budget proposal, with a focus on fostering future growth engines and expanding export financing.
The Ministry of Finance and Economy said the amount marks a 15.7 percent increase, or 5.4 trillion won, from the 2026 budget.
"The finance ministry will focus on providing capital and export financing to foster future strategic industries and supporting hyper-innovation economy projects through the budget in connection with the second-half economic growth strategy," the ministry said.
In detail, Korea will establish a new strategic investment account under Korea Investment Corp. (KIC), the country's sovereign wealth fund, allocating 500 billion won.
The move comes as a growing number of countries are using strategic sovereign wealth funds to build national wealth, and as tools for strengthening economic security and pursuing proactive industrial policies.
Korea will also launch a strategic export finance fund to better support exporters undertaking large-scale and long-term projects.
To address intensifying supply chain disruptions in the wake of the war in the Middle East, Korea will set aside 200 billion won to establish domestic and overseas production bases for key products, marking a sharp increase from 10 billion won in 2026.
Korea will additionally accelerate artificial intelligence (AI) and digital projects under the Economic Development Cooperation Fund, allocating $170 million for a project to establish an AI institute in Tanzania.
Under its hyper-innovation economy initiative, which focuses on gaining a competitive edge in emerging sectors, such as offshore wind power, green hydrogen and small modular reactors (SMRs), Korea plans to spend 3.6 trillion won, up from 2.7 trillion won in the previous year.
The budget proposal, meanwhile, will be submitted to the National Assembly on Thursday.