The Ministry of Economy and Finance on Tuesday released the details of its 2025 budget preparation guidelines, which showed that next year’s budget will exceed 700 trillion won, or over 476 billion U.S. dollars.

The guidelines showed that total expenditures for the 2026 fiscal year are expected to reach 704-point-two trillion won, a four percent increase from this year’s budget of 667-point-four trillion won.

The government aims to focus on responding to uncertainties, such as the U.S. trade war under the current Donald Trump administration, by diversifying export markets and items while stabilizing supply chains.

It also intends to support the artificial intelligence(AI) and semiconductor sectors and will actively promote the transition to AI in existing industries.

The ministry has identified industrial and trade competitiveness as key priorities for next year’s budget.