The government and the Democratic Party of Korea decided to push the "future response fund" as a government bill, using excess tax revenues generated by the semiconductor boom and other factors.
On the morning of the 13th, after a party-government consultation on the second-half economic growth strategy, Democratic Party of Korea Policy Committee Chair Han Jeong-ae told reporters regarding the future response fund that "we are currently discussing it with the government, and the bill will be pursued in the form of a government bill."
The future response fund is a separate fund to utilize tax revenues collected in excess of the budget plan. It is to be newly established to use increased tax revenues stemming from favorable economic conditions, including the semiconductor sector. The government and the ruling party agreed on this at a high-level party-government meeting on the 5th. The fund will be used for support of three mega projects, easing polarization, balanced regional development, and youth support, and is expected to be created at a size of up to 100 trillion won.
Han said, "It is becoming clear that additional tax revenues beyond the original revenue outlook could be secured through 2030," adding, "There is a need to link this to next-generation growth engines and reflect it in the future response fund."
Han went on to explain, "To prepare for an era of major transition ahead, we are comprehensively reviewing measures to expand human resources along with focused investment in education." Han added, "There is a consensus within the government that the fund should be managed with an eye toward the future."
Han said, "Once the direction is settled after in-depth discussions within the government, we will hold a party-government consultation and then submit it to the National Assembly as a government proposal," adding, "As we aim to implement it next year, we plan to continue in-depth discussions in the second half of the year."