South Korea proposes $599 billion 2027 budget, to boost chips and defence spending

SEOUL, Sept ‌1 (Reuters) - South ​Korea ​on Tuesday proposed an 821 trillion won ($598.79 billion) government budget ‌for 2027, including special funding for ⁠its semiconductor industry and strategic weapons, the ‌budget minister said in ‌a cabinet meeting.

The government earmarked 2.6 trillion won for a special semiconductor ​budget, the minister said at the cabinet meeting, where the national ⁠budget for 2027 is scheduled to be reviewed and ​adopted.

It also proposed 3.4 trillion won in spending for a nuclear-powered ​submarine programme and ‌other strategic weapons, presentation material during the meeting showed.

The proposal ⁠will require parliamentary approval.

Meanwhile, President Lee Jae Myung said on Tuesday the economy ⁠is at a point where an interest rate ​rise is unavoidable, risking denting growth potential at a time the socially disadvantaged are feeling ‌the impact of higher borrowing costs.

He asked parliament to ‌offer broad suggestions that could improve ⁠the government's budget ‌proposal.

($1 = 1,371.1000 won)

(Reporting ​by Jack Kim, Heejin Kim and Joyce LeeEditing by Ed ‌Davies)

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