Priorities of the Lee Jae-myung Government:  A New Budget Item “Strategic Cooperation with China” Created, While the Budgets for Korea-US Alliance, Defectors, Denuclearization of North Korea Fall for 2027

2026-10-9, Tara O

Budgets reflect priorities.  South Korea’s Ministry of Foreign Affairs budget proposal for 2027 under the Lee Jae-myung administration cuts the ROK (Republic of Korea)-U.S. relations projects, while creating a new budget category to enhance strategic cooperation with China.  Also cut were the budgets for the denuclearization of North Korea and the protection of defectors who escape from North Korea.

South Korea Ministry of Foreign Affairs Proposed Budget for 2027 (compared to 2026)

Note: Note: The exchange rate on October 7, 2026 ($1:₩1337) was used.

According to the Ministry of Foreign Affairs budget data obtained by the office of Park Chung-kwon, a lawmaker of the People Power Party, who escaped from North Korea, the diplomacy projects with the U.S. fell more than 20%, with specific items falling even more.  For instance, the budget for “Deepening Strategic Alliance with the U.S.” dropped 45% from $940,165 (₩1,257,000,000) in 2026 to $519,073

(₩694,000,000).  The budget for “Strengthening Korea-U.S. Security Cooperation” fell 35% from $689,604 (₩922,000,000) in 2026 to $448,018 (₩599,000,000).

Meanwhile, a new project, “Strengthening the foundation of Korea-China strategic cooperation” was created, with a budget of $452,506 (₩605,000,000). Overall, the budget for China actually increased by 1.7%.

Other budgets related to North Korea issues decreased as well.  The budget for “International Cooperation for Denuclearization” of North Korea fell 20% from $687,360 (₩919,000,000) in 2026 to $549,738 (₩735,000,000). This project includes blocking North Korea’s illegal financing.

The budget for the “Protection of, Domestic Transfer of, & Overseas Cooperation regarding Defectors” dropped 21% from $1,118,923 (₩1,496,000,000) in 2026 to $884,817 (₩1,183,000,000).

The budget for Strengthening North Korean Human Rights Capabilities, which was already paltry, decreased 16% from $91,997 (₩123,000,000) to $77,038 (₩103,000,000).

South Korea’s overall budget for 2027 is the highest in its history, increasing a whopping 12.8% (₩93 trillion) to ₩820.9 trillion ($614 billion).