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Kim Byung-ki, floor leader of the Democratic Party (left), and Song Eon-seok, floor leader of the People Power Party, greet each other before an additional round of negotiations on contentious budget items and proposed corporate- and education-tax hikes at the National Assembly on December 1. / Source: Yonhap News

The ruling and opposition parties reached a final agreement on Tuesday to pass next year’s national budget at the government-proposed total of 728 trillion won, adjusting spending only within the 4.3 trillion won that had already been cut during committee deliberations.

Democratic Party floor leader Kim Byung-ki and People Power Party floor leader Song Eon-seok announced the deal in a joint press conference at the National Assembly, saying a plenary session would be convened at 4 p.m. to vote on the 2026 budget bill and its related legislation. Under the compromise, two of the administration’s flagship initiatives — the Local Love Gift Certificate program and the National Growth Fund — will be preserved without reductions.

According to the agreement, some items — including AI-related support, policy funds and contingency reserves — will see cuts, while spending increases will be allowed only within the already-reduced 4.3 trillion won cap to ensure total expenditures do not exceed the government’s original proposal.

Additional funding will be directed toward emerging-industry projects such as the National Information Resources Service’s disaster-recovery system, development of decentralized power grids and AI mobility demonstration programs. The parties also agreed to boost spending on public welfare and veterans’ services, including support for city-gas pipeline installation, expanded national scholarships and higher honoraria for veterans who participated in combat.