South Korea’s finance ministry revealed that the unexecuted spending in the country’s annual budget for last year amounted to 5.4 trillion won ($3.7 billion), marking the smallest figure in four years. This “practical unexecuted” amount, excluding internal transactions, decreased from 9.3 trillion won the previous year to 5.4 trillion won in 2025, the lowest since 2021. The ministry attributed this decline to spending adjustments made in response to economic changes following supplementary budgets.
According to reports from Yonhap news agency, the government’s active financial management through two supplementary budgets and swift execution significantly supported economic recovery amidst both domestic and international uncertainties last year. Despite final accounting showing only about 100 billion won available for this year’s supplementary budget, financial markets speculate the possibility of its approval before the June 3 local elections.
If a supplementary budget is pursued in the first half of this year, it is likely to be primarily funded by this year’s excess tax revenues. Meanwhile, South Korean stocks traded higher as foreign investors and institutions resumed purchasing local shares, with the benchmark Korea Composite Stock Price Index (KOSPI) rising by 21.58 points, or 0.41 percent, to 5,337.17 by late Tuesday morning. The positive trend was influenced by eased concerns over AI valuations and anticipation of key U.S. economic reports scheduled for release throughout the week.
