President Lee Jae-myung on the 13th presided over the National Fiscal Strategy Meeting to discuss plans for using so-called "additional tax revenues," saying, "These additional tax revenues are a precious resource to be used in the golden time when the global artificial intelligence hegemony is being decided," and noted, "The Future Response Fund will perform this function." The government expects next year's national tax revenue to be at least 500 trillion won and plans to increase total expenditure in 2027 by more than 10% from this year to around a record 800 trillion won.
At the meeting, attended by about 130 people from relevant ministries, academia, research institutes, and civil society, Lee said, "We will establish the Future Response Fund, focus investment on four key areas—future, youth, regions, and education—and raise the potential for economic growth to return the fruits to all citizens." Lee also said, "We need a strategic investment platform that boldly and consistently secures future investment," adding that the government will pursue the Future Response Fund through legislation.
Regarding the 4,700 trillion won-scale "three mega projects" recently released jointly by the public and private sectors, Lee said, "We will mobilize all government capabilities to provide focused support so that the semiconductor, AI data center, and physical AI fields can proceed properly in line with corporations' timetables," and added, "Stable supplies of essential resources such as power and water are fundamental, and we will also establish living conditions encompassing transportation, logistics, and infrastructure expansion, as well as housing, education, medical care, and culture, and even build an innovation base to create new growth hubs for Korea."
Lee also said the government would strengthen the social safety net in line with the "growth for all" stance. Lee said, "We will reinforce the social safety net to the level of a social safety mat so that even nonstandard workers, whose numbers will inevitably increase in the age of artificial intelligence, are protected without gaps," and added, "The government will do its utmost to provide everyday support so that all citizens fully enjoy the benefits of advances in artificial intelligence."
◇ Named "additional tax revenues" and enacted a special law… minimum 800 trillion won in expenditure next year
The government, seeing that tax revenues will increase over the next several years due to a boom in the semiconductor industry, has created the concept of "additional tax revenues" instead of the existing legal term "excess tax revenues" and is using it across all ministries. Under the National Finance Act, the uses of excess tax revenues are strictly defined, including repayment of Government Bonds. To spend taxes on the "four key areas" separately from existing law, a legal basis is needed. Cheong Wa Dae's position is to establish a special law in the form of government legislation, specify the "Future Response Fund," and concentrate the use of excess tax revenues.
The Ministry of Planning and Budget, the competent ministry, expects next year's national tax revenue to be at least 500 trillion won and plans to set total expenditure at "800 trillion won plus alpha (α)." Minister Park Hong-geun released the "2027 budget bill framework and midterm fiscal management direction" the same day, saying, "Next year's national tax revenue is expected to far exceed the original projection of 412 trillion won, reaching a record 500 trillion won plus alpha," and added, "We will set next year's total expenditure at 800 trillion won plus alpha, more than 10% higher than this year's main budget (727.9 trillion won), the largest ever."