The government will overhaul the statutory allocation system for lottery revenue that it has maintained since introducing the lottery fund in 2004. Until now, it has been required to allocate 35% of lottery revenue to 10 funds and institutions, but going forward, eight entities, including the Science and Technology Promotion Fund and the National Sports Promotion Fund, will be excluded from statutory allocations. Instead, the plan is to spend more money on public-interest projects.
On the 18th, the government reviewed and approved a partial amendment bill to the Lottery and Lottery Fund Act containing these measures at a Cabinet meeting.
Until now, 35% of lottery revenue has been distributed to 10 funds and institutions in fixed proportions, and the remaining 65% has been used for public-interest projects such as support for low-income and marginalized groups. As of last year, total lottery revenue was 327.94 billion won, of which 110.51 billion won was mandatorily allocated to funds. As a result, money was unconditionally distributed even to funds with ample resources, and lottery revenue was directed to complaint-driven projects unrelated to the original purpose of the funds.
Accordingly, starting in 2031, the government will fully abolish mandatory allocations to eight funds and institutions: the Science and Technology Promotion Fund, the National Sports Promotion Fund, the Labour Welfare Promotion Fund, the Small and Medium Enterprise Promotion Fund, the National Heritage Protection Fund, the Community Chest of Korea, the Forest Environment Function Enhancement Fund, and the Korea Veterans Health Service. However, for two recipients—the local governments and the Jeju Special Self-Governing Province Development Special Account—the current statutory allocations will be maintained in consideration of their nature as independent revenue sources.
However, before the full abolition, the plan is to go through a transition period that flexibly adjusts allocation amounts. For three years from 2028 to 2030, the allocation ratio will be changed from the current "fixed 35%" to "within 35%," and a temporary special rule will expand the adjustment range based on performance evaluations from the current ±20% to up to ±40%. The idea is to give more money to those with good performance and cut funding for those with poor performance.
The Ministry of Planning and Budget Lottery Commission said, "We will submit the approved amendment to the National Assembly and work to secure its swift passage."