Seoul: The unification ministry has announced its request for over 1 trillion won (US$721.8 million) in the 2026 budget to fund cooperative projects with North Korea. This move is part of the government's efforts to revive inter-Korean exchanges and economic projects that have been inactive.

According to Yonhap News Agency, the Lee Jae Myung administration approved a 728 trillion-won budget proposal for 2026 during a Cabinet meeting, which includes 1 trillion won for the "inter-Korean cooperation fund" out of the unification ministry's total allocation of 1.24 trillion won. The proposed budget for the unification ministry marks a 20.2 percent increase from this year, with the allocation for inter-Korean cooperation rising by 25.2 percent on-year.

If the National Assembly approves the proposal, the 2026 inter-Korean cooperation fund will surpass 1 trillion won for the first time in three years. The fund aims to support inter-Korean economic projects that promote mutual peace and prosperity, with 221.1 billion won set aside for infrastructure development, including railways and roads in North Korea.

A unification ministry official explained that the allocation aligns with the government's plans to increase investments for fostering peaceful coexistence between the two Koreas. Currently, the countries are not engaged in any joint economic or cooperative projects due to strained relations.

Since assuming office in June, President Lee has consistently reached out to North Korea to improve relations. Unification Minister Chung Dong-young has expressed intentions to resume joint economic projects with the North. Notably, the ministry's 2026 budget excludes the 3 billion-won allocation for civic groups promoting North Korean human rights, which was part of this year's budget.