![An exterior view of Daegu City Hall's Sangyeok-dong annex. [Daegu city government]](https://wimg.heraldcorp.com/news/cms/2026/09/17/news-p.v1.20260917.49cb4509b5bc41c89a1cc4ff206ca2c7_P1.jpg)
The Daegu City Council passed the city's second supplementary budget for 2026, along with a revised fund management plan, at a plenary session Wednesday.
The supplementary budget totals 406.5 billion won ($300 million), raising Daegu's total annual budget from 12.2 trillion won to 12.61 trillion won, the city said.
The city plans to use the additional funds to support economic recovery, lay the groundwork for future growth and strengthen public safety — even amid tight fiscal conditions — and to move quickly on spending tied to major policy measures announced recently.
A priority is reviving local consumption and easing the financial burden on businesses.
The city will roll out an additional 500 billion won in financial support for small and medium-sized enterprises and small business owners. The loan ceiling for SME business stabilization funds will be raised from 1 trillion won to 1.25 trillion won, and a new 250 billion won guarantee-fee subsidy program will be introduced to reduce borrowing costs for businesses and small merchants.
The budget also sets aside 5 billion won to stimulate spending at traditional markets and alley commercial districts.
Gift events will be held at 80 traditional markets from Oct. 12 to Oct. 21 to encourage purchases, and autumn festivals will run at 33 traditional markets and alley shopping districts starting in October to draw residents and visitors to local commercial areas.
The city will also inject 2.8 billion won in investment funds — including 2 billion won for a youth startup fund and 800 million won for an advanced strategic industry fund — along with 1 billion won to support AI-driven tech startups by young entrepreneurs, stepping up investment in future-oriented and technology companies.
Notably, 2.4 billion won in site acquisition costs will go toward building the Suseong Alpha City AX Innovation Hub, supporting the AI transformation of three key sectors: robotics and mobility, healthcare, and intelligent semiconductors.
The budget also addresses public safety and quality of life. Some 450 million won has been allocated to emergency medical services, covering the development of pediatric nighttime and holiday clinics in underserved areas and legal support for emergency medical workers, as the city moves forward with the "Daegu Emergency Medical Safety Net" announced in August.
The city will pilot an integrated AI platform across 19 emergency medical institutions, gradually deploy 5G-equipped ambulances, and expand regional emergency medical centers to strengthen the area's capacity for definitive care.
An additional 4.3 billion won will be added to fertility treatment subsidies, and starting Sept. 30, all limits on the number of covered treatment cycles will be lifted. Daegu will be the first among South Korea's special and metropolitan cities to remove such caps, easing the financial burden on couples struggling with infertility and supporting families hoping to have children.
Daegu Mayor Choo Kyung-ho said he would do his utmost to ensure the funds secured through the supplementary budget "breathe vitality into the local economy, expand the foundation for Daegu's future growth, and carefully look after the safety and daily lives of citizens — so that this supplementary budget becomes the bedrock that accelerates Daegu's change and growth."
kbj7653@heraldcorp.com
