The Cabinet approved a 2025 budget of 677-point-four trillion won, or about 509 billion U.S. dollars, representing a three-point-two percent increase over this year’s budget.

The government approved the budget at a Cabinet meeting Tuesday and will submit it to the National Assembly in early September. 

While the budget increased more sharply this year than last year, when it grew two-point-eight percent, the figure remained below four percent for the second consecutive year. 

The government allocated 249 trillion won for health, welfare and employment programs, representing a four-point-eight percent increase over this year. A further 98-point-five trillion won is earmarked for education — three-point-five percent more than this year.

The budget for research and development, which saw drastic cuts this year, increased eleven-point-eight percent year over year to 29-point-seven trillion won.

It is set to be finalized in December after deliberations and adjustments in parliamentary committees.