South Korean President Lee Jae-myung stated on Tuesday that interest rate increases are inevitable, and fiscal policy should play a coordinating role to minimize the hardship these hikes impose on vulnerable groups while safeguarding the nation’s long-term growth potential.

Addressing a cabinet meeting, Lee emphasized that the 2027 budget should serve as a springboard for the country to achieve global leadership in key industries, while also delivering tangible improvements to people's daily lives.

The primary objectives of the 2027 budget plan include fostering future growth engines, creating opportunities for upward mobility, significantly easing social polarization, and strengthening support for public welfare.