Exports and national security are 2024 budget priorities

Economy

Published: 28 Mar. 2023, 17:32 Updated: 29 Mar. 2023, 08:18

Exports and national security are 2024 budget priorities

Choi Sang-dae, second vice minister of economy and finance, speaks in a briefing in Sejong on Monday. [NEWS1]

Next year's budget will be concentrated on boosting exports and on national security, according to the Ministry of Finance and Economy Tuesday.

The ministry laid out the four main pillars for spending next year: private-led economic recovery, protecting the socially vulnerable, economic reforms and strengthening national security.

The Cabinet approved the guidelines for the 2024 budget on the same day.

Budget spending should be "focused on customized service welfare instead of indiscriminate cash support," Choi Sang-dae, second vice minister of economy and finance, said. "Efforts on budget restructuring surpassing the level of the average year will continue."

The 2023 budget was the first to decline from the year earlier since 2010.

Next year's budget is projected to increase by 4.8 percent to around 670 trillion won ($516 billion), according to local media reports.

"Spending on non-essential and urgent matters will be cut, but spending on the basic functions that need to be carried out by the state, like raising the growth potential and helping the socially vulnerable, will be invested in," Choi added.

The government will support trade finance and overseas marketing for small and medium-sized companies to recover private-led growth. New growth engines, including nuclear power plants and defense, will also be supported.

Korea's trade deficit reached $24.1 billion through March 20 this year, more than half the $47.8 billion deficit reported last year. Trade has remained weak due to a fall in the prices of chips, Korea's key export product, and a slow economic recovery in China, once Korea's largest trading partner.

More jobs will be created for young people and the socially vulnerable to strengthen job security, especially in high tech.

The government will "financially support reforms in labor, education and pensions for economic restructuring." In response to the record low birth rate, the government will allocate funding to support couples in different stages, from marriage to pregnancy and raising children. Supporting their residence was proposed.

Earlier this month, President Yoon Suk Yeol called for bold measures to address Korea's record-low birth rate, which fell to an all-time low of 0.78 last year.

The government also seeks to increase spending on defense to better cope with North Korea's nuclear and missile threats. Funds will be directed toward asymmetric strategic responses to the threats and modernization of the country's defense systems and weaponry.

To promote culture, the government plans to invest in content services, including streaming services and digital tourism that features the metaverse.
The ministry will negotiate with related ministries from June to August based on budget requests.

The budget will be submitted to the National Assembly by Sept. 2.

BY JIN MIN-JI [jin.minji@joongang.co.kr]