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