The National Assembly passes the 2024 budget of KRW 656.6 trillion, which focuses on supporting people’s livelihoods and socially vulnerable groups.


The National Assembly passed the 2024 budget, which amounts to KRW 656.6 trillion, on December 21st, which is three weeks beyond the legally prescribed period. During the deliberation process, the decreased budget allocation for the R&D sector, which initially faced criticism from those working in the field, was augmented and there was a significant increase in the budget allocated to support socially vulnerable groups, including temporary special support for the monthly rents of youth and enhanced pension provisions for individuals with disabilities.

When examining the key areas of the increased budget, the R&D budget, which was a key issue during discussions, was increased by KRW 600 billion from the government’s proposed bill. In response to arguments raised by the opposition party, the budget for implementing the government’s local voucher program rose by KRW 300 billion. Moreover, there was a KRW 300 billion increase in the budget allocated for the government’s development project for the reclaimed wetland of Saemangeum, which was put under fire over its validity during discussions, following the controversies over the last Jamboree. Finally, there was a KRW 100 billion expansion in the budget for local SOC projects, a move that is expected to be criticized as an attempt to curry favor in consideration of the upcoming general election. 

Budgets related to people’s livelihoods were significantly increased during the deliberation process of the National Assembly. Notable adjustments include an increase in the budget for a partial exemption for interest on borrowers’ loans, aimed at alleviating the burden on small businesses operators (KRW 300 billion), an increase in the temporary support for a portion of the rise in electricity costs for micro business operators (KRW 252 billion), and a one-year extension of the temporary special support for youth’s rent costs (KRW 69 billion). An additional KRW 11.8 billion was earmarked for increasing the number of subway trains (Seoul 4, 7, 9 lines, and Gimpo Goldline) and intercity buses to improve the use of public transportation during peak commute times in Seoul Metropolitan Area. 

The ruling People Power Party expressed its stance through the 2024 Budget Deliberation Results. stating, “We exerted our utmost effort to prevent the transfer of burden to future generations and allot the budget to enhance people’s livelihood as much as possible, despite the opposition party’s careless postponement of the budget deliberation and Lee Jae-myung’s calls to blindly increase the budget.”

On the same day, the opposing Democratic Party of Korea shared its perspective through the Result of the 2024 Budget National Assembly Deliberation, stating, “We augmented the budget for policy projects by KRW 2 trillion to transform the heartless budget proposed by the Yoon Government into a budget that prioritizes the needs of the people during the 2024 budget deliberation process in the National Assembly.” The party highlighted its success in reducing the budget by KRW 4.2 billion, targeting unnecessary, non-urgent, and poorly designed projects. 

Meanwhile, the Office of the President responded to the passage of next year’s budget proposal by the National Assembly on 21st, stating, “Although belated, it is positive that the bill passed the National Assembly with the agreement of both the ruling and opposing parties.” They further mentioned, “Throughout the deliberation process, the principle of increasing within the confines of reduction was adhered to, maintaining a foundation of sound finance.”

As the first-ever Korean law firm to issue specialized legislative journals, DR & AJU LLC has been publishing the monthly Policy & Business Report since August 2019. The November 2023 issue of the P&B Report conducted a full inspection of legislation proposed to the National Assembly Subcommittee, Standing Committee, and Plenary Session from November 15, 2023, to December 14, 2023, and selected and analyzed legislation with a significant impact on corporate activities. In the case of major legislation, key mentions of legislators, members of the Standing Committee, and government officials are included.