Seoul Proposes 55.7 Trillion Won Budget for 2027, Reviving Youth AI Plan and Expanding Housing Support

More Help With Rent and AI, With a Council Test Ahead

Seoul has proposed a 55.7445 trillion won budget for 2027, including 26.6 billion won to give 500,000 young people access to generative artificial intelligence and training, and 1.1228 trillion won to supply 27,200 public rental homes. Mayor Oh Se-hoon announced the spending plan on October 29, 2026, with submission to the Seoul Metropolitan Council scheduled for October 30.

The proposal is 4.2667 trillion won, or 8.3 percent, larger than the city's original 2026 budget. It would expand youth rent assistance from 23,000 to 32,000 recipients and increase spending on vulnerable residents by 13.1 percent to 17.6892 trillion won.

The AI initiative faces a particularly close examination. Council members removed its entire 5.625 billion won allocation from a supplementary budget in September, citing insufficient preparation. Seoul is now seeking a larger allocation for 2027, with courses ranging from basic instruction to projects linked to internships, employment and starting businesses.

Housing support combines several approaches: acquiring homes for public rental, helping tenants pay monthly rent, subsidising interest on housing deposit loans and supporting redevelopment planning. These measures address different costs that residents face when finding and keeping a home.

Oh said the city intended to increase spending on everyday needs while keeping its debt balance at roughly the expected 2026 level. The council will decide which proposals receive funding during its regular session from November 2 to December 23.

How Much Spending Is Actually Growing?

Seoul's headline budget includes money transferred between its own accounts. After removing those duplicate entries, the proposed net budget is 50.1906 trillion won, an increase of 8.9 percent. This gives readers a clearer measure of spending without counting the same transferred money twice.

The city also identifies 31.5752 trillion won in policy programme spending, up 9 percent. That category excludes support for the education office and district governments, financial activities and administrative operating expenses.

Central government programmes are adding to Seoul's obligations. The city's required contribution to nationally subsidised projects would rise by 1.17 trillion won, partly because of expanded marriage and childrearing support. That increase is equivalent to about 27 percent of the proposed 4.2667 trillion won rise in the total budget.

Seoul nevertheless plans to end 2027 with debt of 11.569 trillion won, close to its forecast for the end of 2026. Meeting that target would require the city to accommodate both larger commitments and new projects within its financing plan.

Mayor Oh Se-hoon described the balance he wanted the budget to achieve:

We have maintained the scale of debt while expanding investment needed for citizens' lives.

The spending plan is still a proposal. Council approval will determine the final allocations, including the size and design of the revived AI programme.

Why the Youth AI Programme Is Returning

Seoul's proposed Youth AI Growth programme would provide generative AI access and instruction to 500,000 young people. Generative AI is software that can produce material such as text, images or computer code in response to a user's instructions.

The city says differences in the ability to pay for these tools and learn how to use them can feed into differences in employment and income. Its proposed response combines access passes with education tailored to participants' existing skills.

Courses would be divided into basic, intermediate and advanced levels. Practical projects would connect learning with internships, jobs and business creation. Seoul says it consulted young people and specialists after September's rejection and developed the plan further.

The 26.6 billion won request is about 4.7 times the allocation removed from the September supplementary budget. Across a target population of 500,000, it amounts to an average programme budget of 53,200 won per person, covering the combined access and education plan.

Council scrutiny is expected to focus on how the city would reach so many participants, provide access and deliver suitable training. The Democratic Party holds 80 of the council's 118 seats, while the People Power Party holds 38, giving the Democratic Party the votes to shape the final allocation.

Seoul is also proposing 46 billion won for its Youth Employment Academy, with a target of training 4,500 people in AI skills. Another 22.3 billion won would fund Seoul Young Career services, supporting career exploration, work experience and connections to employment. Together, these proposals cover broad access to technology and more focused preparation for work.

Where the 27,200 Rental Homes Would Come From

Seoul's public rental target consists of 20,736 homes acquired through purchases, 3,100 secured through leasing and 3,364 supplied through construction. Purchases account for about 76 percent of the total, making acquisitions the largest route to the planned supply.

The 1.1228 trillion won allocation is 74.6 billion won, or 7.1 percent, above the amount approved in the original 2026 budget. Compared with the earlier 2026 proposal, rather than the approved budget, the increase is 60.6 billion won, or 5.7 percent. The supply target rises from 24,388 homes in that earlier proposal to 27,200, an increase of 11.5 percent.

Existing housing acquisitions would receive 293.6 billion won. Another 108.4 billion won would support the purchase of 3,027 Youth Safe Housing units for young people and newly married couples, securing public rental homes within private rental developments near stations.

Integrated public rental construction would receive 150.2 billion won, up from 68.2 billion won in the previous year's proposed allocation. The supported portfolio would expand from eight sites containing 2,831 homes to 12 sites containing 3,260 homes. These projects use land, including underused sites, for public housing and neighbourhood facilities.

University students would also receive a new option through 500 leased units under the Seoul Saessak studio programme. Its 1.8 billion won allocation would support affordable accommodation near universities through measures including interest free deposit assistance and renovation.

Who Would Get More Help With Housing Costs?

Seoul proposes 126.2 billion won for youth monthly rent support, increasing the target by 9,000 people to 32,000. That is a rise of about 39 percent from 23,000. The proposed benefit remains up to 200,000 won a month for eligible residents aged 19 to 39 who do not own a home and have income no higher than 150 percent of the standard median.

The standard median income is a government benchmark used to assess benefit eligibility. A threshold of 150 percent means the income ceiling is one and a half times that benchmark for the relevant household size.

The city's Youth Housing Support guide, dated January 9, 2026, describes the existing rent benefit as support for a maximum of 12 months, once in a lifetime, worth up to 2.4 million won. It lists 15,000 beneficiaries, while the new budget announcement uses 23,000 as the 2026 comparison and proposes 32,000 for 2027.

The guide sets out further existing conditions: applicants must live alone in Seoul, have no home ownership, and meet limits including a deposit of up to 80 million won and monthly rent of up to 600,000 won. Public rental residents and previous recipients are excluded. Its listed application window was June 11 to 24, 2025; a 2027 application timetable and final conditions have not yet been announced.

Housing deposit loan interest support for young people and newly married couples would receive 75.8 billion won. Newly married couples could qualify for interest assistance of up to 4.5 percent annually on loans of up to 300 million won, for a maximum of 12 years. For young borrowers, the corresponding limits are 3 percent, 200 million won and eight years.

The loan ceiling is also limited to 90 percent of the rental deposit. Under Korea's jeonse system, tenants provide a large lump sum deposit, which the landlord is expected to return when the lease ends. Interest support helps reduce the cost of borrowing that initial sum.

Another 3.4 billion won would support brokerage fees and moving expenses for a target of 10,000 young people, with assistance capped at 400,000 won. The existing official guide describes reimbursement of actual costs for either brokerage fees or moving expenses, available once in a lifetime.

Housing Safety Nets and Faster Redevelopment

Seoul's wider housing safety net includes 1.0337 trillion won for housing benefits for households at or below 48 percent of the standard median income. These benefits help eligible tenants with rent and eligible homeowners with necessary maintenance.

A further 11.1 billion won would subsidise rental deposit return guarantee fees, with support of up to 500,000 won for eligible tenants with low incomes who own no home. These guarantees provide protection when a landlord fails to return a deposit. Home repair assistance would receive 8.3 billion won.

The city also proposes 72.5 billion won for interest free loans of up to 70 million won to help eligible residents assemble deposits for long term leases. Each programme addresses a different part of the housing burden: obtaining a deposit, paying financing costs, protecting the deposit or keeping a home habitable.

Private redevelopment would receive planning and organisational support. Seoul has allocated 10.8 billion won to Rapid Integrated Planning 2.0 and 12.3 billion won to Moa Town and Moa Housing, which coordinate improvements across groups of smaller residential sites. Integrated planning would be supported at 27 locations.

Myung No-jun, head of Seoul's Housing Office, said the city would take a more direct role in Moa Town planning:

Until now, the districts have looked after Moa Town, but from now on the city will look after it directly through management planning services.

Public redevelopment planning would receive 5.6 billion won, while assistance with organising promotion committees and establishing redevelopment associations would receive 3.2 billion won. The funding would help cover planning services, specialist management and election expenses.

More Support for Vulnerable Residents and Small Businesses

Seoul's 17.6892 trillion won allocation for vulnerable residents is 2.0533 trillion won above the 2026 level. It includes 4.8054 trillion won for livelihood, medical and education benefits, alongside 780.6 billion won for public employment involving older residents, people with disabilities and other eligible groups.

A new Seoul pension initiative would receive 1.3 billion won to help 10,000 people approaching retirement build retirement savings. Marriage, childbirth and childrearing measures, including marriage support, assistance preparing for a baby and a basic child allowance, would receive 143.4 billion won.

Education and social isolation measures would also expand. Seoul Learn would receive 26.7 billion won for online learning support for vulnerable students, coaching centres across every district and group mentoring for primary school children. The city plans six Itda Place loneliness support centres and an increase in Seoul Mind Convenience Stores from 25 to 31 locations.

Small and medium businesses would have access to a proposed 3 trillion won in lending, supported by a 42.6 billion won budget allocation. Citywide Seoul Love vouchers would expand from 150 billion won to 200 billion won in issuance, an increase of one third, with 11.3 billion won allocated to the scheme.

Investment in future industries includes 35.1 billion won for the Seoul Creative Industry Hub, scheduled to open in the second half of 2027. The city also proposes 16.4 billion won for the Yangjae AI innovation district and 48.4 billion won for the Hongneung biotechnology and medical cluster.

Transport, Flood Protection and Health Spending

Seoul proposes 747.8 billion won for the Climate Companion Pass programme to reduce public transport costs. Five urban rail projects, including the Ui-Sinseol extension and Dongbuk Line, would receive a combined 138.3 billion won.

Flood prevention would receive 236.2 billion won for deep underground rainwater drainage tunnels around Gangnam Station, Gwanghwamun and Dorimcheon, together with new or expanded pumping stations. These facilities move or temporarily contain stormwater when heavy rainfall exceeds the capacity of ordinary drains.

The Wrist Doctor 9988 health programme would receive 58.9 billion won, broadening its focus from walking to include metabolic syndrome, dementia and smoking cessation. Metabolic syndrome is a combination of conditions, such as high blood pressure and elevated blood sugar, that increase the risk of serious illness.

Mobile fitness testing would expand to 50 visits a year with an 800 million won allocation. Outdoor projects include 5.8 billion won for the 2027 Seoul International Garden Show around Namsan Park, 1.8 billion won for the G Valley Garden Valley project and 7.3 billion won for waterfront spaces along waterways including Jungnangcheon and Seongnaecheon.

Night Markets, Cultural Projects and the Decision Calendar

Seoul's proposed evening economy programme includes 10 additional Moonlight outdoor dining locations, backed by 10.5 billion won. The city would spend 10 billion won on Han River night scenery and 5.6 billion won on a permanent light show at Dongdaemun Design Plaza.

Han River camping facilities would expand to 300 units. Another 1.9 billion won would fund nighttime sports spaces at Ichon and Gwangnaru parks. Seasonal festivals would receive 10.7 billion won, while 1.4 billion won would support efforts to bring the League of Legends World Championship to Seoul.

Major cultural and urban projects include 123.2 billion won for a downtown park in the Sewoon district, 53.3 billion won for Nodeul Global Art Island and 22.2 billion won for a second Sejong performing arts centre. The proposal also includes funding for pedestrianising Jamsu Bridge.

The council's schedule brings the disputed AI initiative and these wider spending choices into the same budget review:

• September 2026: The council removed the full 5.625 billion won supplementary allocation for youth AI support, citing insufficient preparation.
• October 29: Mayor Oh announced the proposed 2027 budget.
• October 30: Seoul scheduled submission to the metropolitan council.
• November 2 to December 23: The council's 340th regular session is scheduled to take place.
• November 3 to 16: Administrative audits are scheduled before examination of the budget proposal.

For residents, the decisions will determine how many people receive rent assistance, how public housing is secured and whether the AI programme begins at its proposed scale. For Seoul's administration, the financial test is delivering that expansion while holding debt near its stated target.

Key Points

• Seoul proposes a 55.7445 trillion won budget for 2027, up 8.3 percent from the original 2026 budget.
• A revived youth AI programme would receive 26.6 billion won and target 500,000 participants.
• Public rental housing plans cover 27,200 homes with a 1.1228 trillion won allocation.
• Youth rent support would expand from 23,000 to 32,000 recipients, paying up to 200,000 won monthly.
• Support for vulnerable residents would rise 13.1 percent to 17.6892 trillion won.
• The city aims to keep debt at about 11.569 trillion won at the end of 2027.
• The council's regular session runs from November 2 to December 23, with final spending subject to approval.