The proposed budget, which seeks a 12.8% increase in government expenditure to $612.41 billion, is currently awaiting parliamentary approval. While the scale of the spending is historic, Shin signaled that the fiscal impact on the economy would be net-positive, projecting a 0.5 percentage point boost to gross domestic product growth for the year.

This assessment arrives as the central bank navigates a period of persistent price pressures. In August, the bank implemented its second consecutive interest rate hike, citing an outlook where inflation is expected to exceed the 2% annual target for the foreseeable future. Current forecasts anticipate 2.9% GDP growth and average inflation of 2.3% for 2027, figures that the central bank intends to maintain despite the influx of new government capital.