South Korea proposes US$599 bln 2027 budget, to boost chips and defence spending

South Korea on Tuesday proposed an 821 trillion won (US$598.79 billion) government budget for 2027, including special funding for its semiconductor industry and strategic weapons, the budget minister said in a cabinet meeting.

The government earmarked 2.6 trillion won for a special semiconductor budget, the minister said at the cabinet meeting, where the national budget for 2027 is scheduled to be reviewed and adopted.

It also proposed 3.4 trillion won in spending for a nuclear-powered submarine programme and other strategic weapons, presentation material during the meeting showed.

The proposal will require parliamentary approval.

Meanwhile, President Lee Jae Myung said on Tuesday the economy is at a point where an interest rate rise is unavoidable, risking denting growth potential at a time the socially disadvantaged are feeling the impact of higher borrowing costs.

He asked parliament to offer broad suggestions that could improve the government's budget proposal.

Reuters

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