CHANGWON — South Gyeongsang Province has secured 11.68 trillion won ($8.4 billion) in state funding under the government's 2027 budget proposal. It marks the second consecutive year the figure has topped 11 trillion won, with money concentrated on emerging industries such as physical artificial intelligence, aerospace and small modular reactors, as well as on wide-area transport networks.
The province said on the 3rd that the allocations were reflected in the 2027 budget proposal approved at a Cabinet meeting on September 1. The amount is 591.9 billion won more than the 11.089 trillion won the province received this year.
In industry, a project to build a manufacturing AI and robotics valley at the Changwon industrial complex will begin next year, creating a growth ecosystem for companies working in physical AI. The province said the Changwon complex holds the richest supply of manufacturing data, the raw material for physical AI. Funding also increased for a physical AI technology development and demonstration project, which began this year after being exempted from a preliminary feasibility study.
In aerospace and defense, funding was newly included for a project to develop domestic production technology for aerospace functional materials that meet environmental regulations. The budget also covers an open call for additional projects under Defense Industry Innovation Cluster 2.0 and SMR-related programs.
Government policy provided further support. The government included measures to foster and support the physical AI and aerospace industries in its plan for advanced industry development in the Yeongnam region, and selected four industries as "growth engines for the southeastern region": advanced shipbuilding and shipping, aerospace and defense, next-generation mobility manufacturing, and next-generation nuclear power and energy.
In infrastructure, the southern inland railway project, which held a groundbreaking ceremony in February this year, secured the minimum funding needed to start full-scale construction next year. It is targeted to open at the end of 2031. The budget also reflects the Jinhae New Port construction project and the Busan New Port-Gimhae expressway project, both aimed at the era of Arctic shipping routes, along with major national and local highway projects and urban regeneration projects in the province.
For livelihood programs, funding was newly included for flood prevention work in priority sewer management areas as a safeguard against torrential rain. The budget also covers projects to improve the medical system, including a second-phase ward expansion at Masan Medical Center and the establishment of a western Gyeongnam medical center. Livelihood, medical and housing benefits are expected to rise in line with the government's 6.7% increase in the standard median income, though those amounts will be finalized after the government allocates funds by region. Culture and tourism projects also secured funding, including wide-area tourism development in the southern region and a pilgrimage trail marking Admiral Yi Sun-sin's victory sites.
For projects left out of the budget proposal, the province will work with local National Assembly members and municipalities to press its case during parliamentary review. Those include the Geoje-Tongyeong expressway and the Hansan Daecheop Bridge, both of which have passed preliminary feasibility studies; the relocation and reconstruction of Geochang Red Cross Hospital and a southeastern circular wide-area railway, whose feasibility results are due this year; and the development of a Gyeongnam SMR wide-area research and development special zone, to be pursued under the small modular reactor act taking effect on September 11.
Total spending in the 2027 government budget proposal is 821 trillion won, up 12.8%, or 93 trillion won, from this year, helped by higher corporate tax revenue from the semiconductor boom. A future response fund accounts for 57.9 trillion won, or 7% of total spending; excluding it, the growth rate is 4.8%.
