Unification ministry seeks to restore 2026 budget for inter-Korean cooperative projects to over 1 tln won

▲ Businesspeople call for the enactment of a special law to compensate for losses from the suspension of once-vibrant joint inter-Korean economic projects, during a press conference in front of the presidential office in Seoul in this July 11, 2024, file photo. (Yonhap)

unification ministry-2026 budget

Unification ministry seeks to restore 2026 budget for inter-Korean cooperative projects to over 1 tln won

SEOUL, Aug. 29 (Yonhap) -- The unification ministry on Friday requested over 1 trillion won (US$721.8 million) in next year's budget to fund cooperative projects with North Korea, as the government seeks to restore now-dormant inter-Korean exchanges and economic projects.

The Lee Jae Myung administration approved its 728 trillion-won budget proposal for 2026 during a Cabinet meeting earlier in the day, which includes 1 trillion won for the "inter-Korean cooperation fund" out of the unification ministry's total allocation of 1.24 trillion won.

The proposed budget for the unification ministry represents a 20.2 percent increase from this year, while the allocation for inter-Korean cooperation is up 25.2 percent on-year.

If approved by the National Assembly as proposed, the 2026 inter-Korean cooperation fund will top 1 trillion won for the first time in three years.

Next year's proposed budget for the fund, aimed at financing inter-Korean economic projects to promote mutual peace and prosperity, includes 221.1 billion won earmarked for building railway, roads and other infrastructure in North Korea.

A unification ministry official said the allocation reflects the government's plans to expand investments aimed at fostering the foundation for the two Korea's "peaceful coexistence."

Currently, however, the two Koreas are not engaged in any joint economic or cooperative projects amid strained ties.

Since taking office in June, President Lee has repeatedly extended overtures to North Korea to improve relations, while Unification Minister Chung Dong-young said he will seek to restore now-suspended joint economic projects with the North.

The ministry's 2026 budget, meanwhile, eliminates the 3 billion-won allocation for financing civic groups' activities promoting North Korean human rights, which was included in this year's budget.

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