Center notices

In the 2027 budget proposal announced by the government on 1 September, total spending on the Ministry of Unification’s budget and funds is set at KRW 1,254.9 billion. That is KRW 10.2 billion (0.8%) more than in 2026 (KRW 1,244.7 billion), and the Inter-Korean Cooperation Fund stays above the one-trillion-won mark at KRW 1,011.5 billion. The figures will be confirmed in December after review by the National Assembly.

Main changes in the Inter-Korean Cooperation Fund

• Total fund of KRW 1,011.5 billion (up KRW 9.2 billion on the KRW 1,002.3 billion budgeted for 2026). Project spending accounts for KRW 1,009.4 billion of that.
• Loans for economic-cooperation infrastructure rise from KRW 59.0 billion to KRW 199.4 billion (an increase of 237.7%). This is the budget that could go into railways, roads and similar work if the economic cooperation projects agreed between South and North Korea resume.
• Relief assistance falls from KRW 112.2 billion to KRW 95.4 billion, support for livelihood cooperation from KRW 555.4 billion to KRW 472.1 billion, and grant-based economic-cooperation infrastructure projects from KRW 220.9 billion to KRW 187.8 billion (a cut of 15% in each case). The low rate of execution against the amounts budgeted was given as the reason.
• A new allocation of KRW 428 million for the DMZ Peace Link train project (to run eight times a month).

What companies and organizations should look at

• Grant items are down while loan items are up sharply. If your project assumes that economic cooperation will resume, it is worth examining a loan structure alongside grant support.
• Because the cuts were attributed to weak execution, support in practice goes to concrete project plans that meet the requirements. A well-prepared project plan and procedural groundwork are what count.
• We will report again on the confirmed budget and the 2027 fund management plan once the National Assembly has completed its review, and we will update the figures on the Fund page at that time.

Consultation

Companies and organizations considering an application to the fund can use our consultation service to go through the requirements and the order in which to prepare. Applications to the fund are filed and reviewed by the Ministry of Unification and the body that manages the Inter-Korean Cooperation Fund.

Source: Ministry of Unification 2027 budget proposal (1 September 2026); reporting by Asia Economy https://view.asiae.co.kr/article/2026090110123902895