By Xu Aiying

The proposal for next year's national budget is an estimated KRW 677.4 trillion.

The figure is up 3.2% from this year's budget, which saw a record-low rise of 2.8%, but keeping it within the low 3% range maintained fiscal soundness.

A Cabinet meeting on Aug. 27 announced this while approving the 2025 proposed budget and a 2024-28 plan on national fiscal management.

An expenditure structure adjustment of KRW 24 trillion was proposed to cut unnecessary budget. Thus next year's managed fiscal balance is expected to reach minus 2.9% of gross domestic product, an improvement from minus 3.6% this year.

Next year's estimated revenue of KRW 651.8 trillion was up 6.5% or KRW 39.6 trillion won from this year's KRW 612.2 trillion.

The 2025 budget plan focuses on supporting jobs by raising the economy's competitiveness and reforming the social structure to "take a future leap forward." Specifically, it focuses on four investment priorities: welfare for the underprivileged for a better tomorrow, expansion of economic vitality, reform for the future, and a safe society and global pivotal diplomacy.

The budgets for health care, welfare and employment were KRW 249 trillion, up 4.8%, to stress welfare for the socially vulnerable including low-income earners and elderly and disabled people. The median income will rise a record 6.42% based on a four-person household.

Another KRW 29.7 trillion will go to research and development. The budget for three sectors classified by the government as "game-changing" -- artificial intelligence and semiconductors, biotech and quantum -- will jump from KRW 2.8 trillion to KRW 3.5 trillion.

To boost economic vitality, budgets for cutting-edge industries and small business owners were also allocated for next year. To attract large-scale private investment in chips, low-interest loans worth KRW 4.3 trillion won will be provided.

The culture, sports and tourism sector will receive KRW 7.12 trillion, up 2.4% or KRW 166.9 billion.

To be submitted to the National Assembly early next month, the budget plan will receive final approval in December after increases and decreases are screened by each standing committee and parliament's Special Committee on Budget and Accounts.

xuaiy@korea.kr