The Lee Jae Myung administration has increased the inter-Korean cooperation fund by approximately 200 billion KRW (136 million USD) for next year, aiming to restore inter-Korean relations and lay the groundwork for renewed dialogue.
According to the 2026 Ministry of Unification Budget and Fund Management Plan approved by the National Assembly on Tuesday, the Ministry’s total budget for the coming year is 1.2447 trillion KRW (846.7 million USD). This comprises 242.4 billion KRW (164.9 million USD) in general account expenditures and 1.0023 trillion KRW (681.8 million USD) for the inter-Korean cooperation fund, marking a 215 billion KRW (146.3 million USD) increase from the current year.
Breaking down the project costs, 172.9 billion KRW (117.6 million USD) is allocated to the general account and 1.001 trillion KRW (681 million USD) to the cooperation fund. The general account project budget, initially proposed at 169.9 billion KRW (115.6 million USD), was increased by 2.9 billion KRW (2 million USD) during parliamentary review, resulting in a final approval of 172.9 billion KRW (117.6 million USD).
The cooperation fund’s project budget, originally set at 1.003 trillion KRW (682.3 million USD) in the government’s proposal, saw a 200 million KRW (136,000 USD) reduction for the inter-Korean joint liaison office operations during the National Assembly’s review. This resulted in a final approved budget of 1.001 trillion KRW (681 million USD).
Overall, the cooperation fund has been significantly bolstered, with a substantial increase of about 25% compared to this year’s project costs. This boost aims to establish a foundation for economic cooperation that promotes peace and mutual growth.
The Ministry of Unification has highlighted several key new initiatives in next year’s budget, including: △ The establishment of the Korean Peninsula Peace Coexistence Center △ Development of the Demilitarized Zone (DMZ) International Ecological and Peace Tourism Cooperation Zone △ Operation of the Inter-Korean Integrated Cultural Center.
The Korean Peninsula Peace Coexistence Center is envisioned as a multifaceted cultural space designed to engage the public directly on the importance of inter-Korean exchange and peace on the peninsula. The project, spanning from 2026 to 2030, has a total budget of approximately 39.6 billion KRW (29 million USD). For the upcoming year, 12.3 billion KRW (8.4 million USD) has been allocated, primarily for land acquisition (11.7 billion KRW or 8 million USD) and design costs (600 million KRW or 408,000 USD).
To transform the DMZ area into a premier Korean Peninsula Peace Tourism destination and expand it into a joint cooperation zone, a budget of 480 million KRW (326,500 USD) has been earmarked.
Finally, to enhance communication and exchange with North Korean defectors and improve public awareness of their situation, 380 million KRW (258,500 USD) has been allocated to expand the Inter-Korean Integrated Cultural Center project.