South Korea’s Cabinet approved on Tuesday the 2025 budget proposal of about $509.7 billion (677.4 trillion won) and the 2024-2028 National Fiscal Management Plan. The plan aims to increase total government spending by 3.2% while reducing the fiscal deficit to 2.9% of gross domestic product, down from this year’s deficit of 3.6%. Key initiatives include expanding welfare support for disadvantaged groups, increasing investments in high-tech industries and enhancing disaster preparedness and essential medical services.

The budget proposal, which will be submitted to the National Assembly on Sept. 2, focuses on four priorities: improving welfare for the financially vulnerable, boosting economic vitality, preparing for future challenges through structural reforms, and strengthening national security and global diplomatic standing. The government also aims to manage the national debt ratio at around 50% of GDP by 2028.