Lee to deliver address seeking bipartisan support for $510 bil. budget

President Lee Jae Myung is set to deliver a policy address Tuesday on next year’s 728 trillion won ($510 billion) budget proposal, calling for bipartisan cooperation among lawmakers.

According to the presidential office, Monday, Lee will use the address to outline his administration’s key priorities for next year’s budget.

With the National Assembly set to begin budget deliberations Wednesday, the president plans to explain the rationale behind next year’s spending plan and urge lawmakers across party lines to engage constructively in the review process.

Delivered amid political division and rising living costs, the address is seen as a key test of the president’s leadership, with a focus on curbing inflation and aiding the socially vulnerable.

The Lee administration’s first full-year budget represents an 8.1 percent increase from the previous year, surpassing the 700 trillion won threshold for the first time in history.

Key highlights of next year’s budget include a massive 72 trillion won investment in the government’s so-called “super-innovation economy” initiatives — 10.1 trillion won of which will be allocated to the AI transformation project — along with 175 trillion won earmarked to promote inclusive growth.

Lee is expected to stress the importance of substantial investments in artificial intelligence, highlighting its critical role in strengthening national competitiveness and driving future growth. His policy address is also expected to touch on the administration’s recent diplomatic accomplishments.

The president has no public engagements that day as he prepares for the address. He previously delivered a policy speech in June on a supplementary budget aimed at boosting household consumption and economic recovery.

The National Assembly will begin its deliberations on next year’s budget this week. Following a public hearing Wednesday on the budget bill by the Special Committee on Budget and Accounts, lawmakers will hold comprehensive policy inquiries on Thursday and Friday regarding the budget operation plans. Next week, the committee will review economic ministries on Monday and Tuesday, and non-economic ministries on Wednesday and Thursday.

Several standing committees, including the National Defense Committee, the Legislation and Judiciary Committee and the Agriculture, Food, Rural Affairs, Oceans, and Fisheries Committee, have also scheduled sessions in the latter half of this week to examine the government’s budget proposal. Based on the preliminary reviews conducted by these committees, the budget committee will move into a comprehensive examination phase.

Beginning on Nov. 17, a budget adjustment subcommittee will convene to discuss possible increases or cuts to proposed fiscal expenditures. After the subcommittee’s review, the finalized proposal will be put to a vote at a plenary session of the budget and account committee before being sent to the full National Assembly for final approval.

The ruling Democratic Party of Korea (DPK) described the proposed budget as a “stepping stone for economic recovery and future growth,” pledging full support for Lee's policy direction that puts a particular emphasis on innovative sectors, such as artificial intelligence (AI) and research and development.

The DPK is also expected to defend funding for Lee’s flagship local cash handout program, which is intended to promote regional spending. Under the 2026 budget plan, the government will support the issuance of 24 trillion won in local cash handouts for the program.

In contrast, the main opposition People Power Party (PPP) criticized the administration’s expansionary fiscal stance as a “debt-fueled budget,” vowing to cut spending on cash handouts and what it calls populism.