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South Korea Passes 2026 Budget on Time After Last-Minute Cross-Party Deal

A rare bipartisan deal trimmed about 4.3 trillion won through reallocations, preserving core presidential priorities.

Overview

  • Lawmakers approved a 727.9 trillion won plan minutes before the Dec. 2 deadline, marking the first on-time passage in five years.
  • Rival parties cut about 4.3 trillion won from AI programs, policy funds and reserves, then redirected the same amount to other priorities.
  • Total spending stayed near the government's proposal, keeping support for local gift certificates and the National Growth Fund.
  • Added funds target recovery from the state data center fire in Daejeon, distributed power grids, national scholarships and veterans’ honor allowances.
  • Partisan rifts persist over corporate tax policy and a proposed parliamentary probe related to the Seongnam development case.