The ruling Democratic Party and the government on the 25th included a plan to fully waive tuition at regional national universities in the 2027 budget, part of a push to spur growth outside the capital region. The budget also creates a special semiconductor account to make Korea a chip powerhouse and introduces a college internship semester program to support young people.
The party and the government said they discussed next year's budget along these lines at the National Assembly that day. Rep. Chung Tae-ho, the ruling party's chief negotiator on the National Assembly's Special Committee on Budget and Accounts, said after the discussion that the 2027 budget reported by the government centers on five priority areas: all-out support for the three mega-projects and for making Korea a top-three artificial intelligence power, funding to expand future growth engines, comprehensive support for young people at each stage of growth, measures to address K-shaped inequality and promote growth for all, and support for public safety.
Specifically, in AI and the three mega-projects, the government will create a special semiconductor account to provide integrated support, while developing and supporting AI solutions that draw on manufacturing tacit knowledge, or production know-how. The plan also includes expanded support such as supplying 10,000 graphics processing units (GPUs) to develop frontier-class AI models.
On expanding future growth engines, the plan includes sweeping support such as research and development for a 2030 moon landing, an expansion of pilot zones for self-driving cars, and a record-high increase in electric vehicle subsidies.
As a comprehensive support measure for young people at each stage of growth, the plan introduces a college internship semester program that grants academic credit when students complete a one-semester internship. It also includes budget to create the "Our Child Independence Fund," which provides up to 1.2 million won ($870) a year until age 18. Chung said that childcare support, currently provided through basic income and child allowances, would be expanded and restructured into a "basic child allowance."
To address K-shaped inequality and promote regionally led growth, the government will create a "growth engine special grant." Under the plan, the government would cover a substantial portion of facility investment when an anchor company relocates to a region outside the capital area. The plan also creates regional future-growth funds to improve living conditions and support future-growth hubs, sets up a special account for essential regional medical care, and fully funds tuition at regional national universities.
Detailed measures to strengthen public safety include support for developing a nuclear-powered submarine and a pay raise for junior military officers.
