President Lee Jae Myung of South Korea stated on his X account that it is unrealistic to pursue both economic growth and welfare expansion simultaneously at this time. ^[1] The South Korean government unveiled its most aggressive fiscal spending plan on record for the upcoming year on Tuesday. ^[2] South Korean government officials announced a plan to merge five state-owned power utilities into a single entity. ^[3] President Lee Jae-myung stated on 2026-01-02 that South Korea is currently facing a growth deficit created by the previous administration, requiring a focus on economic recovery to expand the economy. ^[4] President Lee Jae Myung argued that the priority should be placed on expanding the economic pie rather than welfare expansion. ^[5] President Lee Jae Myung warned that failing to recover sustained growth could lead to economic polarization and a potential decline in welfare. ^[6] The South Korean government proposed a record budget of 820.9 trillion won (US$599 billion) for next year, representing an increase of more than 10 percent from the current year. ^[7] The finance minister nominee vowed to advance AI projects as part of the government's strategy. ^[8] The new fiscal plan includes the creation of a fund dedicated to long-term investments. ^[9] Officials stated that the consolidation of power utilities aims to streamline operations and improve efficiency. ^[10] The government also announced plans to consolidate four port authorities into one organization. ^[11] The government aims to strengthen the country's technological edge amid the global AI race. ^[12]