Seoul unveils W2.81tr supplementary budget, backing night economy and youth AI access

The Seoul Metropolitan Government has drawn up a 2.81 trillion won ($1.98 billion) supplementary budget — its first under the ninth directly elected administration — focusing spending on economic recovery, future growth and public safety. The city plans to introduce "Moonlight Gift Vouchers" to stimulate the nighttime economy and, for the first time, provide generative AI subscriptions to 500,000 young residents to drive future growth.

The city submitted the "2026 Second Supplementary Budget Proposal" to the Seoul Metropolitan Council on Monday, requesting deliberation.

The supplementary budget of 2.81 trillion won represents 5.2 percent of the city's already-approved base budget of 53.77 trillion won for this year. If passed as submitted, Seoul's total budget for the year would reach 56.57 trillion won. Of the supplementary budget, 66.6 percent — or 1.87 trillion won — covers statutory mandatory expenditures such as transfers to autonomous districts and contributions to housing funds.

Excluding those mandatory costs, the city has discretionary spending of 810 billion won, all directed at projects with direct impact on residents' daily lives. The supplementary budget is allocated across three priority areas: Growing Seoul, Together Seoul and Livable Seoul. This is the ninth administration's first budget and the city's second supplementary budget this year. While the first supplementary budget focused on responding to high oil prices, this one also includes investment in support for youth, small business owners and vulnerable renters, as well as in future growth industries. Lee Dong-ryul, acting director of the city's Planning and Coordination Office, said the city would "push ahead without delay on livelihood, medical and housing support, investment in youth and new industries, and the expansion of marriage, childbirth, childcare and safety infrastructure, then execute swiftly after the council's approval so residents can feel the change."

The Growing Seoul category receives 231.9 billion won. Of that, 1.9 billion won has been newly allocated to boost the nighttime economy — one of Mayor Oh Se-hoon's flagship policy priorities for the ninth administration. The city will launch Moonlight Gift Vouchers, redeemable across five zones covered by its "Seoul Moonlight Night Market" initiative. The vouchers total 10 billion won in face value and carry a 10 percent discount; the city is committing 1.1 billion won in new funds to issue them. A Namsan Night Festival will also debut, offering campnic (urban camping combined with a picnic), autumn-foliage trekking and a silent headset party at Palgak Club against the backdrop of Namsan's evening skyline. The city also plans to open a firefly garden inside the Namsan Korean Forest Garden by December and to run a nighttime program at Unhyeongung palace.

Some 5.6 billion won has been newly set aside to support a "Youth AI Growth Pass," providing 500,000 young people aged 19 to 29 — including students and job seekers — with generative AI subscriptions for one year. The city will also expand eligibility for its program covering real estate brokerage fees and moving costs for young residents. It plans to establish an autonomous vehicle pilot zone and increase the number of late-night autonomous taxis operating in Gangnam from three last year to 19 this year. Support for electric vehicle purchases will be expanded, and rapid chargers for electric buses will be scaled up.

The Together Seoul category receives a total of 409.7 billion won. Of that, 222.1 billion won has been added to reflect the increase in welfare recipients following a rise in the standard median income benchmark this year. Additional funds have been allocated for the modernization of Eunpyeong Hospital and the expansion and functional improvement of Seonam Hospital. The city will also expand purchases of public rental housing in transit-oriented areas and broaden housing benefit coverage from 347,000 households to 364,000.

The Livable Seoul category receives a total of 168.4 billion won. Eligibility for the "First Meeting Voucher" — which provides 2 million won for a first child and 3 million won for a second child or more — will be expanded. Childcare allowances for children aged 24 to 86 months who are raised at home without attending a daycare center or kindergarten will be increased. The number of beneficiaries for disability sports class vouchers will also grow. The city will add directly operated Seoul Fitness 9988 centers at Cheongdam Station, the Seongbuk Youth Gender Culture Center, and the 50 Plus South and West campuses. Subsidies for equipment costs at public wedding hall ceremonies will be increased, and eligibility for medical expense support for pregnant women aged 35 and older will be expanded — the city currently covers up to 500,000 won in outpatient and testing costs for that group. New or expanded rainwater pumping stations will be built in Yangjae, Yeongdeungpo and Geumho, and an additional rainwater retention tank will be installed at Siheung Valley, which suffered flood damage in 2022. The city will also replace aging rolling stock on subway lines 6 and 7 and expand routine inspection teams at demolition sites.

This supplementary budget is the first since the local elections. However, analysts note that Mayor Oh's ability to govern has become more difficult after the June 3 local elections left the Seoul Metropolitan Council with an opposition majority. In the 11th council, the People Power Party held 76 seats against the Democratic Party of Korea's 36, giving the PPP a comfortable majority. The 12th council, shaped by the recent local elections, now has the Democratic Party holding 80 seats to the PPP's 38. Democratic Party council members have been particularly vocal: when Oh received a first-instance ruling stripping him of his mayoral post over allegations that polling costs were paid on his behalf by political operative Myung Tae-gyun, they immediately issued a statement calling for his resignation.