People Power Party Demands Budget Cuts as Lee Jae Myung Pushes 2027 Fiscal Plan

President Lee Jae Myung asked lawmakers to approve South Korea’s 820.9 trillion won 2027 budget, which raises spending by 12.8% from the 2026 main budget of 727.9 trillion won. The People Power Party called for at least 30 trillion won in cuts to the proposed budget and demanded 104.4 trillion won in Future Response Fund reserves be used to repay debt. The People Power Party also accused Lee Jae Myung of avoiding key issues during his address.

The Ministry of Planning and Budget projects the national debt-to-GDP ratio will decline to 48.3% in 2027 from 51.6%, and the managed fiscal balance is projected to improve to -0.1% of GDP. However, the Ministry’s materials list 222.8 trillion won in total bond issuance, which did not align with Lee Jae Myung’s claim of a near-zero net increase.

The administration proposes a budget to the legislature, and President Lee Jae Myung has initiated a tax debate involving the Korea Institute of Public Finance.