The Lee Jae Myung administration expanded the inter-Korean cooperation fund and budget for diplomacy with the U.S. and China for next year, in line with a policy aimed at restoring ties with Pyongyang and its pragmatic diplomatic approach.

In the government's 2026 budget plan unveiled on Friday, more than one-point-two trillion won, or around 889-point-seven million U.S. dollars were earmarked for the unification ministry, including the inter-Korean cooperation fund, marking an increase of 20-point-two percent compared to this year.

Funds totaling three billion won that were allocated this year to support civic groups promoting awareness of North Korea’s human rights issues — part of the former Yoon Suk Yeol administration’s pressure campaign on Pyongyang — have been entirely eliminated.

The budget for the foreign ministry, including the international exchange fund, decreased by 676 billion won to three-point-six trillion won, reflecting a 22-percent reduction in the Official Development Aid fund.

An additional two-point-four billion won will be spent on the development of Seoul and Washington's alliance to a comprehensive strategic alliance, while 600 million won has been raised to enhance support for South Korean businesses operating in China.