Group 1 - The South Korean government proposed a budget for 2026 with a total expenditure of 728 trillion won (approximately $524.44 billion), marking an 8.1% increase, the largest in four years [1] - The budget focuses on establishing a "super innovative economy," with 72 trillion won allocated to innovation-related sectors, significantly higher than the 51 trillion won allocated in the current year [1] - The budget for artificial intelligence (AI) is set at 10.1 trillion won, a substantial increase from 3.3 trillion won in the current year, with research spending on AI rising by 19.3% to 35.3 trillion won, a record increase [1] Group 2 - The proposal includes an 8.2% increase in defense spending, reaching a historic high of 66.3 trillion won, which is about 2.4% of South Korea's GDP, the largest increase since 2008 [2] - Expenditure to support exporters affected by tariffs will rise by 14.7% to 32.3 trillion won, while cultural industry spending will grow by 8.8% to 9.6 trillion won [1] - Social welfare spending is also set to increase by 8.2% to 269.1 trillion won [1]

Core Viewpoint - The South Korean government emphasizes the need to transition to a "super-innovation economy" to avoid the risk of being left behind in the rapidly changing technological landscape, particularly in artificial intelligence [1] Group 1: Government Initiatives - The government plans to focus on supporting "super-innovation economy projects" to achieve visible results in the short term [1] - A new economic growth strategy will be released within the month, which will include initiatives aimed at enhancing AI education for various demographics, including students, youth, military personnel, and technical professionals [1] Group 2: Economic Meetings - This meeting marks the first economic department head meeting since the establishment of the new government, primarily discussing measures to invigorate local economies and promote collaborative consumption [1]