President Lee Jae Myung asked lawmakers to approve South Korea’s 820.9 trillion won 2027 budget Monday as government materials showed net bond issuance not reconciled with his near-zero increase claim.
The Ministry of Planning and Budget’s proposal raises spending 12.8% from the 2026 main budget of 727.9 trillion won. Lee said the government’s managed fiscal balance is projected to improve to -0.1% of gross domestic product (GDP) in 2027 from -3.9% in 2026. The debt-to-GDP ratio is projected to decline to 48.3% from 51.6%.
Lee said nearly all newly issued government bonds would go toward repaying existing bonds, leaving almost no net increase. The Ministry of Planning and Budget’s budget materials list 222.8 trillion won in total bond issuance and 96.3 trillion won in net issuance for 2027. The ministry separately projects national debt of 1,519.8 trillion won. The address did not explain how the net issuance figure fits with Lee’s near-zero increase statement.
Before the address, the People Power Party (PPP) urged Lee to discuss housing, North Korea and the U.S. alliance. It also called for at least 30 trillion won in cuts to the proposed budget and for 104.4 trillion won in Future Response Fund reserves to be used to repay debt. Those were the party’s proposals.
After the speech, The Korea Herald reported that the PPP accused Lee of avoiding key issues. The newspaper quoted party Chair Jang Dong-hyeok as saying, “Lee eventually just said what he wanted to say in his speech and left.”
The government proposed a 162.3 trillion won Future Response Fund, including 45.4 trillion won for investment in youth, growth industries, regional development, education and training. An Oct. 30 review by the National Assembly Budget Office (NABO) identified questions about the fund’s funding sustainability, parliamentary oversight and fiscal soundness.
Lee asked lawmakers to approve the budget and related bills by Dec. 2, the statutory deadline cited in his address.
