Presidential Chief of Staff Kang Hoon-sik said on the 5th that the government will push to create a "future response fund" to use additional tax revenue generated by the semiconductor boom and other factors as investment resources for future generations. This formalizes the creation of a fund financed by excess tax revenue.
The United States first introduced a system that sets aside a fixed share of tax revenue under the name "rainy day fund." All 50 states operate such funds under their own names and methods. Some automatically set aside a fixed portion of the budget, while others build up funds only when excess tax revenue occurs.
Many states restrict the conditions for using the fund to prevent governors' patronage expenditure, and some require legislative approval.
◇ Tens of trillions in excess tax revenue...future investment beyond designated uses
Kang said at a high-level ruling party–government council meeting that the government seeks bold investment in Korea's future by creating a fund with additional tax revenue to support the three mega projects, generate future growth engines, respond to the K-shaped polarization, and provide housing, startup, and job support for people in their 20s and 30s in 2030.
According to the Ministry of Economy and Finance, national tax revenue for January–May was 199.9 trillion won, up 16% (27.5 trillion won) from a year earlier. Assuming this growth rate holds through year-end, national tax revenue could rise to about 434 trillion won by year-end. If realized, that would be nearly 20 trillion won more than the government's national tax revenue forecast for this year (415.4 trillion won).
The future response fund concept is seen as an intention to set aside the increased tax revenue from the unexpected semiconductor boom as resources for future generations rather than spend it on designated uses under the National Finance Act. Under the National Finance Act, surplus revenue generated by excess tax revenue must be used in the following order: ▲ settlement of grant-in-aid (non-earmarked tax) and grant-in-aid (earmarked tax) for educational finance ▲ repayment of public funds ▲ repayment of Government Bonds.
President Lee Jae-myung said at a news conference marking the first anniversary of his inauguration last month, regarding the use of excess tax revenue, that the government should invest in a direction that is for future generations and enhances Korea's growth potential. He said he thinks that way. Amending the National Finance Act will likely be necessary to establish the future response fund.
◇ U.S. rainy day funds total 266 trillion won...use conditions strictly limited
Florida was the first U.S. state to start a system of setting aside tax revenue for the future in 1959. It spread to other states after the U.S. recessions of the 1980s. Now, all 50 states are said to have funds or accounts with the character of rainy day funds, though the names differ.
According to the National Association of State Budget Officers (NASBO), a U.S. states' budget council, the combined size of rainy day funds in the 50 states is $174 billion (about 266.2 trillion won) for fiscal 2025 (Oct. 1, 2024–Sept. 30, 2025).
Each state sets different rules for fund accumulation and use according to its economic structure. For example, Texas automatically sets aside 75% of any excess when oil and natural gas production tax revenue exceeds a threshold into the Economic Stabilization Fund. Using the fund requires approval from the state legislature. If there is a revenue shortfall, approval from 60% of members present is required; otherwise, 67% approval is required.
California sets aside 1.5% of projected General Fund revenue and any portion of capital gains tax that exceeds 8% of revenue into the Budget Stabilization Account. The governor can use this account only after declaring a budget emergency. A budget emergency can be declared when projected revenue for this year or next year falls short of recent three-year expenditure levels, or when disasters such as major wildfires occur. Even if the governor declares an emergency, the legislature must pass a budget bill for final expenditure.
Connecticut requires that all income tax collected above a certain limit be deposited into the Budget Stabilization Fund. In principle, the fund must be used when a fiscal deficit occurs. To use it in other situations, the governor must declare a fiscal emergency and the legislature must approve by at least 60%.