Korea’s 2026 national budget has been finalized at 727.9 trillion KRW, marking an 8.1% year-on-year increase. The bill signals a distinct shift in fiscal strategy as the Lee administration introduces its “risk-sharing” model to support strategic industries, with stronger state-backed support for large-scale projects.
The finalized package prioritizes AI hardware deployment, energy grid modernization (including the new "AI grid"), and a structural overhaul of the R&D framework.
For the business community, the key takeaway is the introduction of two complementary risk-sharing vehicles. The 'National Growth Fund' positions the state as a subordinated investor to absorb initial losses in domestic projects, while the 'US-Korea Strategic Investment Corporation' provides a government-backed channel to insulate cross-border joint ventures from volatility.
Our December newsletter analyzes the allocation of these funds and the specific opportunities in:
- AI Infrastructure & On-Device hardware
- Energy (Grid integration & HVDC)
- Cross-sector R&D restoration
The full analysis of the 2026 fiscal playbook is available below.
