[News Today] “2026 budget to usher in the AI era”

[LEAD]
Parliament begins reviewing the government's 728 trillion won budget proposal for next year this week.

President Lee Jae Myung addressed the details of the budget during his budget speech.

His first full budget focuses heavily on artificial intelligence, innovation, and addressing regional disparities.

We begin with a look at the president's budget speech at the National Assembly.

[REPORT]
In his budget speech on Tuesday, President Lee Jae Myung briefed parliament on the results of the APEC Summit and bilateral talks with the U.S. and China.

He said the tariff deal struck with the U.S. has eased economic uncertainties, stressing he put his soul into the negotiations to produce the best possible outcome.

Lee Jae Myung / President
By securing the same level of tariffs in autos and chips, Korea’s main exports, as rival countries, we established a level playing field.

The government-proposed budget for next year is 728 trillion won or some 506 billion U.S. dollars.

The first major budget under the Lee administration marks an 8% increase compared to this year.

It is focused on AI, R&D and achieving balanced national growth.

President Lee said a transition to an AI-led society is inevitable and vowed to inject 10.1 trillion won in introducing AI in all areas of industries, daily life and the public sector and in fostering related talent.

Lee Jae Myung / President
The 2026 budget proposed by the government is the country’s first budget aimed at ushering in an AI era.

Meanwhile, next year’s proposed defense budget stands at 66.3 trillion won, up 8.2% from this year.

President Lee also underscored that a fiscal principle giving special treatment to the provinces has also been adopted so that provincial areas can be the center of economic growth.

Lee Jae Myung / President
There will be more support for areas located farther from the capital in a bid to seek decentralization and balanced development.

The main opposition People Power Party boycotted Lee’s budget speech in protest of a special counsel team's decision to seek a detention warrant for its former floor leader Choo Kyung-ho.

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