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flag South Korea passed a $570 billion 2026 budget, boosting AI, semiconductors, and growth funding, despite rising debt concerns.

flag South Korea’s parliament approved a 727.9 trillion won 2026 budget, an 8.1% increase, to boost AI, semiconductors, shipbuilding, K-culture, and small businesses. flag The government will triple AI spending to 10.1 trillion won and issue a record 232 trillion won in bonds to fund growth, raising debt concerns. flag The budget passed smoothly, unlike last year’s turmoil, amid improved economic data and a projected debt-to-GDP rise to 58% by 2029. flag Lawmakers also reformed dividend taxes, lowering the top rate to 30% and creating a separate tax regime.

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