S. Korea unveils trade competitiveness and AI investment as 2026 budget priorities

South Korea has outlined its priorities for next year's budget, emphasizing industrial and trade competitiveness in response to U.S. trade barriers.

The Ministry of Economy and Finance unveiled on Tuesday its 2026 spending guidelines, projecting a four-percent increase to a little over 704-trillion Korean won, just under 480-billion U.S. dollars.

Other key priorities include expanding investments in AI and semiconductors, implementing fiscal reforms, and supporting recovery in struggling sectors like construction.