Seoul: The unification ministry's budget for 2026 aimed at funding cooperative projects with North Korea has been restored to over 1 trillion won (US$681.4 million), marking a significant milestone as it surpasses this level for the first time in three years, officials announced on Wednesday. This development comes as part of the government's broader efforts to rejuvenate inter-Korean exchanges and economic collaborations.

According to Yonhap News Agency, the National Assembly recently approved next year's comprehensive budget, totaling 727.9 trillion won. This includes an allocation of 1.24 trillion won for the unification ministry, reflecting a notable 20.9 percent increase compared to this year's budget. Out of the total ministry budget, 1.002 trillion won is specifically designated for the inter-Korean cooperation fund, reinstating the fund to the 1 trillion-won benchmark for the first time in three years.

In addition to the cooperative fund, the 2026 budget encompasses a project to establish a "center for peaceful coexistence on the Korean Peninsula" in Seoul. This initiative aims to enhance public awareness regarding inter-Korean exchanges and peace initiatives with North Korea. The project has been allocated 12.3 billion won for the upcoming year, with a total investment of 39.6 billion won planned through 2030.

The budget for next year also sets aside 480 million won for a project focused on developing a tourist zone along the Demilitarized Zone (DMZ) that divides the peninsula. The broader objective is to eventually transform this area into an inter-Korean cooperative zone, as indicated by ministry officials.

In a related move, President Lee Jae Myung renewed his peace overtures toward North Korea on Tuesday. He proposed the restoration of communication channels with Pyongyang, describing it as a crucial starting point for achieving peaceful coexistence. Despite these efforts, North Korea has yet to respond to Seoul's repeated proposals for dialogue.