S. Korea proposes 3.2% increase for ’25 budget
South Korea’s Ministry of Economy and Finance has proposed a 3.2 per cent increase in the 2025 budget to 677.4 trillion won ($509.7 billion).
The ministry anticipates that total government revenue will reach 651.8 trillion won, representing a 6.5 per cent increase from the 2024 budget.
This growth is primarily attributed to the strong performance of South Korean corporations and the expected gradual recovery of both domestic and international economic conditions.
“The goal of the 2025 budget proposal is to realise an era centered on the working and middle classes by achieving people’s livelihoods stability and a dynamic economy. It mainly focuses on injecting national finances in the public’s priority issues, enhancing the competitiveness of the Korean economy and conducting social structural reforms, and securing the sustainability of public finances through innovative fiscal management.”
Key areas of focus in the 2025 budget include:
Health, welfare, and employment budgets are allocated to increase by 4.8 per cent to 249 trillion won ($187.3 billion), while education budgets will rise by 3.5 per cent to 98.5 trillion won ($74.1 billion).
The defence budget is proposed to increase by 3.6 per cent to 61.6 trillion won ($46.3 billion). R&D budgets are set to grow by 11.8 per cent to 29.7 trillion won ($22.3 billion).
Government debt is expected to reach 48.3 per cent of the gross domestic product in 2025, up from the estimated 47.4 per cent in 2024.
Attribution: South Korea’s Ministry of Economy and Finance report
Subediting: Y.Yasser
