Minister Park Hong-geun of the Ministry of Planning and Budget said, "We will establish a future response fund that invests additional tax revenue in the next generation such as young people, growth engines, and regional talent."
The Minister said on the 9th at a full meeting of the National Assembly Planning and Finance Committee, "We will secure sufficient and stable funding to create future growth engines and respond to K-shaped polarization," and stated accordingly.
The Minister said a 2.62 trillion won supplementary budget was passed in a record-short 29 days and more than 85% was executed within three months. Buoyed by these results and strong semiconductor exports, the Organisation for Economic Co-operation and Development (OECD) and the Bank of Korea have revised up this year's growth outlooks, and tax revenue is also expected to increase, the Minister explained.
At the same time, the Minister said, "However, structural challenges in our society such as demographic changes, polarization, and regional extinction remain," adding, "While expenditure needs continue to rise, the share of mandatory spending is also steadily increasing, intensifying fiscal rigidity."
The Minister cited three mega projects centered on semiconductors, physical AI, and data centers as new drivers of national development.
He said, "To ensure bold investments by corporations and the government translate into regional growth, we will spare no support where government roles are needed, such as building core infrastructure like sites, power, and water, fostering regional talent, and improving living conditions."
He added, "We will also focus on youth jobs, a rebound in the birthrate, and housing support so that no generation, region, or class is left out of the fruits of growth, responding comprehensively to K-shaped polarization."
The Minister also mentioned measures to ensure fiscal soundness. He said, "We will conduct a full, zero-based review of all fiscal programs and boldly cut or abolish projects without results, and we will fundamentally overhaul mandatory expenditures such as education grants to reflect the changed environment."