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Busan Metropolitan City Proposes KRW 637.4 Billion Third Supplementary Budget to Deliver Immediate Livelihood Support and Reenergize Busan

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Busan Metropolitan City, led by Mayor Chun Jae-soo, submitted its 2026 Third Supplementary Budget Proposal to the Busan Metropolitan Council today, August 14. The proposal brings the total budget to KRW 19.4009 trillion, an increase of 3.4% from the existing 2026 budget of KRW 18.7635 trillion, with the supplementary budget totaling KRW 637.4 billion.

The supplementary budget reflects additional financial resources, including surplus funds resulting from the 2025 fiscal year settlement, and focuses on proactive fiscal investment to support residents’ lives by revitalizing the local economy. The three major areas of investment are: ➊ Reenergizing Busan through Local Economic Recovery, ➋ Busan, a Maritime Capital Leading Balanced Development, and ➌ Busan, a Healthy and Happy City for All.

➊ First, KRW 274.7 billion has been allocated to “Reenergizing Busan through Local Economic Recovery.”

[Support for Small Businesses Facing Management Difficulties: KRW 96.1 billion]

Busan Metropolitan City will intensively implement tailored support programs to stabilize small-business operations and ease their cost burdens.

To help small businesses cope with the burden of energy costs amid high oil prices and inflation, energy vouchers worth KRW 200,000 per person will be provided to 280,000 small-business owners with annual sales of KRW 1 billion or less.

In addition, to ease financing costs for small businesses, special low-interest financing at a 1% interest rate will be provided to 40,000 small-business owners. Dongbaekjeon card transaction fees of 0.15% will also be subsidized for 140,000 affiliated businesses with annual sales of KRW 1 billion or less, reducing operating costs for small businesses.

To reduce fuel-cost burdens on freight transport operators resulting from rising international oil prices, the City will support the increased payment limit for fuel-price-linked subsidies for freight vehicles. It will also provide KRW 200,000 in insurance support for commercial freight vehicles operating within the city, easing management burdens while creating conditions for safer operations.

[Reducing Residents’ Financial Burdens and Revitalizing Commercial Districts: KRW 161.1 billion]

The City will inject new vitality into the sluggish local economy and strengthen a virtuous cycle of local consumption.

Dongbaekjeon cashback will be temporarily increased from the current 10% to 15% for 100 days, easing household expenses for residents while maximizing the effect of stimulating domestic consumption.

In addition, for three months, downloadable coupons exclusively for QR-code payments will be distributed each month to 200,000 Dongbaekjeon users. During the Chuseok holiday period, coupons will also be awarded by lottery to 40,000 Dongbaekjeon users to promote QR-code payments and boost consumption.

Coupons for use on the public food-delivery app Ddaenggyeoyo will be provided to Dongbaekjeon members who spend at least KRW 100,000 per month, helping reduce the delivery-platform brokerage fees borne by small businesses and supporting higher sales.

[Support for Underserved Groups to Build a Livelihood Safety Net: KRW 17.5 billion]

The City will establish a comprehensive livelihood safety net that protects residents’ daily lives without leaving anyone in blind spots.

For 4,000 mobile workers, the City will cover 80% of the worker-paid portion of industrial accident insurance premiums, up to KRW 200,000, easing insurance costs and strengthening the social safety net. It will also provide one-stop services, including legal counseling, administrative cost assistance and follow-up management, for residents and small-business owners who need bankruptcy, rehabilitation or debt-adjustment assistance.

The City will also strengthen employment and care for vulnerable groups by providing public-sector jobs to 500 unemployed residents and expanding employment opportunities for 4,500 older adults, 200 middle-aged and older workers, and 150 persons with disabilities.

➋ Next, KRW 137.9 billion has been allocated to “Busan, a Maritime Capital Leading Balanced Development.”

[Creating a Maritime and AI Transformation Cluster: KRW 68.1 billion]

To advance Busan as a maritime capital, the City will build a future-oriented maritime industrial ecosystem based on artificial intelligence and digital transformation.

To encourage employees of the Ministry of Oceans and Fisheries and their families to relocate together, relocation settlement support will be expanded in line with actual demand. Support measures for relocating institutions will also continue to establish the foundation for Busan as a maritime capital.

An additional KRW 43.7 billion will be allocated to ensure the timely completion of the Busan Opera House in the Marine Culture District of the North Port Redevelopment area, while preparations will proceed smoothly for its opening next year.

The City will implement a regional AI spatial-computing development project to establish interactive education and tourism services using artificial intelligence. It will also carry out an AI advanced-industry talent development boot camp project at five universities to develop and operate industry-linked AI education programs.

Smart infrastructure will be established at 90 senior centers across the city, while a specialized smart-city district project will be pursued in the Centum City area to create a foundation for fostering the AI industry.

To build a future maritime industrial ecosystem, KRW 2.6 billion will be invested in establishing an AI Transformation demonstration industrial complex specializing in eco-marine materials, parts and equipment in Myeongji-Noksan. KRW 2.9 billion will be invested in establishing a Global Certification Support Center for Next-Generation Maritime Mobility, and KRW 1.6 billion will be invested in a project to strengthen the global competitiveness of maintenance, repair and overhaul services for naval vessels by small and medium-sized shipbuilders.

[Eco-Friendly, Smart and Safe City: KRW 58.3 billion]

The City will create an eco-friendly, smart and safe urban environment that residents can experience in their daily lives by expanding balanced social infrastructure.

To expand insufficient infrastructure in aging industrial complexes and strengthen their competitiveness, KRW 2.4 billion will be invested in a parking facility project at the Sasang Regeneration Industrial Complex. In the Daepyeong-dong area of Yeongdo-gu, KRW 3.0 billion will be invested in establishing shared facilities to support the ship repair industry and in training technical personnel.

To prevent salt damage and improve river water quality in preparation for the opening of the Nakdong River Estuary Barrage, the City will undertake improvements to the Daejeo Sluice Gate. It will also replace aging indoor fire hydrants, piping and other equipment in Hwangnyeong Tunnel to reinforce disaster-prevention facilities against various accidents. As part of heat-wave measures, additional heat-damage reduction facilities, including shade structures and cooling fog systems, will be installed.

Green remodeling projects will be carried out at three aging public buildings used as social welfare facilities to improve energy performance and reduce greenhouse gas emissions. The City will also support the purchase of an additional 750 electric vehicles in the second half of the year to meet increased demand.

[A High-Quality Cultural and Tourism City Sought Out by the World: KRW 11.5 billion]

Busan will advance as a high-quality cultural and tourism city suited to an era of four million international visitors.

To meet additional demand arising from the growing number of visitors to Busan, the City will expand accommodation discount vouchers and create an interactive welcome center at the Eurasia Platform at Busan Station. It will also expand shopping convenience services to make extended stays more convenient for visitors.

In addition, building on the spread of K-culture and the hosting of the UNESCO World Heritage Committee session in Busan, the City will pursue projects to develop cultural and tourism content utilizing Busan’s national heritage. KRW 1.5 billion will also be invested in the Busan Independence Movement Memorial Hall project to enrich the historical and cultural content of Busan Citizens Park.

➌ Finally, KRW 192.7 billion has been allocated to “Busan, a Healthy and Happy City for All.”

[Building a Caring City that Protects Residents’ Daily Lives: KRW 95.7 billion]

The City will expand tailored services reflecting residents’ needs so that everyone can benefit from an inclusive welfare system.

Operating expenses will be provided for the newly opened Gangseo-gu Welfare Center for Persons with Disabilities, while daytime activity services will be expanded for an additional 66 persons with developmental disabilities to support independent living and participation in the community.

The City will implement a project to strengthen the definitive-treatment capacity of the regional responsible medical institution by remodeling operating rooms and intensive care units and upgrading medical equipment at Pusan National University Hospital in Seo-gu. Continued support will also be provided for the Regional Trauma Center to reinforce the foundation for essential healthcare in the region.

To prevent harm from jeonse rental fraud, guarantee fees for enrollment in deposit-return guarantee insurance will be additionally supported for 1,750 people. To improve housing welfare for low-income households, the City will purchase 200 units in multi-family housing and supply them as public rental housing.

[A Family-Friendly City Where Everyone Is Respected and Grows Together: KRW 16.0 billion]

To support sustainable urban growth, the City will strengthen family care and childcare policies that promote mutual support.

In response to the increase in births in 2026, Busan’s postpartum care cost assistance program and maternal and newborn healthcare support program will be expanded to cover an additional 2,000 people. Support for couples experiencing infertility will also be expanded in line with demand.

For nighttime pediatric care, Hanna Hospital in Suyeong-gu will be newly designated and operated as a Moonlight Children’s Hospital. The City will also implement a program to foster pediatric nighttime and holiday medical institutions in underserved areas by supporting extended pediatric care hours at night and on holidays in Dong-gu and Nam-gu, where such services are currently unavailable.

In addition, to close childcare gaps during elementary school vacations, 51 gap-care sites and 14 lunchtime-care sites will be operated through a vacation-focused support program.

[Establishing a Foundation for Sustainable Transportation Welfare: KRW 81.0 billion]

The City will establish a sustainable transportation welfare system that is convenient for all residents.

An additional KRW 5.3 billion will be allocated to K-Pass and Modu Card, which refund either 50% of public transportation expenses or the amount exceeding KRW 27,000. An additional KRW 4.0 billion will also be allocated to Dongbaek Pass, which refunds monthly public transportation spending exceeding KRW 45,000.

To support social participation and mobility for transportation-disadvantaged residents, including persons with disabilities and pregnant women, KRW 1.3 billion will be allocated for increased operating costs resulting from expanded call-taxi services. The City will also invest KRW 1.2 billion in safety facilities to improve lane-marking visibility on major arterial roads.

Mayor Chun Jae-soo said, “I hope this supplementary budget proposal will serve as a starting point for immediately addressing people’s livelihoods and getting Busan moving forward vigorously once again.”

He added, “I ask for the active support and cooperation of our residents and the Busan Metropolitan Council so that these valuable financial resources can be put to use at the right time to support the recovery of the local economy and Busan’s new vision for the future.”