Budget up 6.3% from this year; Daejeon Medical Center, startup city project and national research lab among newly funded initiatives
Daejeon has secured 5.1 trillion won in the government's 2027 budget proposal, a 303.7 billion won increase — or 6.3% — from this year's 4.8 trillion won ($3.49 billion), the city announced Wednesday.
The allocation was broadly seen as a strong result given the central government's restructuring of local fiscal arrangements, including the creation of a new future-response fund, and intensifying competition among local governments for national funding. Projects spanning science and technology, future industries, transportation and urban infrastructure, healthcare and welfare, and everyday public services were all reflected in the government's draft budget.
Particularly notable is the inclusion of several long-delayed projects. Chief among them is the Daejeon Medical Center, to be built in the Seonryang district of Yongun-dong, Dong-gu. The project was designated as exempt from a preliminary feasibility study in January 2021 to expand essential regional healthcare in the wake of COVID-19, but had stalled for years. With 7 billion won now allocated for construction costs, the project is set to move into full-scale development. The facility is planned as a general hospital with 15 clinical departments and 319 beds.
Also funded is the bus rapid transit connecting road between Oisam and Yuseong Terminal, a project delayed for two years after failing to secure national funding. With 1.9 billion won now included, the road is expected to open in 2030. The new link will add a southern connector to the Yuseong IC intersection, converting the current three-way junction into a four-way crossing and easing chronic traffic bottlenecks along the stretch between Guam Bridge intersection and Yuseong IC.
In urban renewal, a combined 10.7 billion won was allocated for several projects: a new village development in Daeheung-dong, Jung-gu; residential improvement works in Jungni-dong, Daedeok-gu and Galma-dong, Seo-gu; and small-scale housing rehabilitation in the Taepyeong and Yucheon districts. The funding is expected to accelerate efforts to ease parking shortages and improve living conditions in aging residential areas.
For road infrastructure, 9 billion won was set aside for a new road connecting Jeongnim Middle School in Seo-gu to Sajeong-dong in Jung-gu. Jeongnim-dong has long suffered from poor access to Anyeong IC despite being geographically close, as the absence of an east-west link has forced residents to detour via Gasuwon Bridge.
The new road will create a direct east-west corridor between Jeongnim-dong and Sajeong-dong, significantly improving residents' access to Anyeong IC while also dispersing traffic on National Route 4 (Gyebaek-ro) to ease chronic congestion. The funding is expected to keep the project on track for its 2028 completion target. In public transit, 204.3 billion won was allocated for construction of Line 2 of the urban railway tram network.
Investment in future growth engines also featured prominently. The National Research Laboratory (NRL) 2.0 project will receive 10 billion won next year as part of a broader initiative with a total project cost of 117.7 billion won, of which 95 billion won comes from national funds. Chungnam National University will serve as the implementing institution, conducting advanced biotech and precision medicine research aimed at treating intractable diseases.
The startup city development project received 16 billion won. Launched in 2026 to address the widening gap in startup ecosystems between the Greater Seoul area and other regions, the project's core mechanism is providing up to 400 million won per company in commercialization funding to Daejeon-based startups. The city will oversee the project, with the Daejeon Creative Economy Innovation Center handling operations and 24 institutions — including KAIST, Chungnam National University, the Electronics and Telecommunications Research Institute (ETRI), the Korea Aerospace Research Institute and the Korea Water Resources Corporation — participating as part of the implementation consortium.
Broad welfare and livelihood support was also reflected in the budget: 352.3 billion won for basic livelihood benefits, 308.6 billion won for medical assistance, 104.4 billion won for housing benefits, 569.3 billion won for the basic pension, 64.1 billion won for senior employment support, 119.9 billion won for infant and toddler childcare, and 78.3 billion won for child allowances.
The city said it plans to push for additional funding and increases during the National Assembly's budget review process for projects excluded from the government's draft, those that received less than requested, and those whose inclusion was deferred due to procedural timing.
Among deferred items, the city will focus particularly on securing architectural design costs for the Daejeon branch of the Serious Crimes Investigation Agency, which launches Oct. 2. The amount — about 700 million won — is modest, but carries symbolic weight as the first budget item to formally initiate the branch's relocation from its current temporary home in Sejong to Daejeon. The city said it is committed to securing the funding during the Assembly review.
Han Chi-heum, Daejeon's director of planning and coordination, said the inclusion of long-sought projects such as the Daejeon Medical Center alongside new growth engines in future industries was a meaningful achievement. "This result reflects the entire city working as one team and maintaining continuous dialogue with central government ministries," Han said. "Going forward, we will further strengthen collaboration across departments and work closely with local lawmakers to secure every budget item we need at the National Assembly stage."
kwonhl@heraldcorp.com
