Gyeongnam Ushers in the “11 Trillion Won National Funding Era”
Largest-Ever Budget to Drive Transportation, Industry, and Economic Transformation
On August 29, Gyeongsangnam-do announced that 11.1418 trillion won in national funding related to the province has been included in the 2026 government budget bill approved at the Cabinet meeting, ushering in the "era of 11 trillion won in national funding" for the region.
This amount represents an increase of 1.5336 trillion won, or 16%, compared to last year's 9.6082 trillion won, far exceeding the government's overall budget growth rate of 8.1%.
Park Wansu, Governor of Gyeongnam Province, is announcing the results of securing the national budget for 2026. Provided by Gyeongnam Province
On September 2, Governor Park Wansu personally announced the results of next year's national budget allocation at the provincial government press center.
Governor Park stated, "For the first time in history, we have surpassed 10 trillion won in national funding within three years of the launch of the 8th popularly elected administration."
The national funding secured by Gyeongsangnam-do under the 8th administration amounts to 8.7157 trillion won in 2023, 9.4079 trillion won in 2024, 9.6082 trillion won in 2025, and 11.1418 trillion won in 2026.
Governor Park explained that the significant increase in the province's national budget is due to the inclusion of major social overhead capital (SOC) projects such as the Southern Inland Railway, the Busan New Port-Gimhae Expressway, and the Hamyang-Ulsan Expressway, as well as funding for physical AI (artificial intelligence) and flood recovery.
He went on to express his expectations, saying, "This national budget allocation is more than just a number; it will be a turning point that will dramatically transform Gyeongnam's transportation, industry, and economic structure."
Park Wansu, Governor of Gyeongnam Province, is announcing the results of securing the national budget for 2026. Provided by Gyeongnam Province
The budget secured by Gyeongsangnam-do by sector includes: 4.0998 trillion won for health and welfare, 1.8535 trillion won for social overhead capital, 549.9 billion won for industry and R&D, 222.1 billion won for education, 984.6 billion won for agriculture, forestry, and fisheries, 618.9 billion won for the environment, 214.4 billion won for culture and tourism, and 583.4 billion won for public order and safety.
A total of 41 key projects, including 13 new initiatives and 28 ongoing projects, will be operated with next year's government budget.
Gyeongsangnam-do explained that next year's budget plan was structured to make the province the industrial and economic hub of South Korea through investments for future growth and fostering of key industries, while also pursuing balanced growth and stable livelihoods for residents to usher in an era of happiness for all citizens.
Among these, the province allocated 40 billion won for the development and demonstration of physical AI technology, 32.5 billion won for the establishment of an extreme materials demonstration research base, and 95.8 billion won for global-local universities as part of investments in future growth.
In the four major key industries driving the Gyeongnam economy, the budget includes 5 billion won for the Defense Industry Innovation Cluster 2.0 project, 5 billion won for strengthening global competitiveness in small and medium-sized ship and naval vessel construction, maintenance, repair, and overhaul (MRO), 28.2 billion won for the Digital Transformation Support Center for machinery and defense manufacturing, and 1 billion won for establishing a test and inspection support center for small modular reactor (SMR) manufacturing components.
In the areas of social overhead capital such as railways and roads, and in culture and tourism, the budget includes 260 billion won for the construction of the Southern Inland Railway, 825 billion won for phase 1 of the Jinhae New Port construction, 275 billion won for the Busan New Port-Gimhae Expressway, and 58.9 billion won for the Southern Region Wide-Area Tourism Development Project, respectively.
In addition, the budget includes 422 billion won for flood recovery projects related to the extreme rainfall in July, 2.2 billion won for the construction of the Gyeongnam Public Children's Rehabilitation Hospital, and 1 billion won for the establishment of the National Gyeongnam Youth Didim Center, all aimed at stabilizing the lives of residents.
Governor Park emphasized, "We will use next year's national budget as a stepping stone to make Gyeongnam the industrial and economic center of South Korea and to usher in an era of happiness for all residents."
He added, "We will do our utmost to ensure that projects not included or only partially reflected in the budget will be additionally included during the National Assembly's review process."
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