Lee Tae-seok, Director General of the Korea Development Institute (KDI) fiscal and social policy research department, said on the 11th, "Creating a future response fund will not by itself improve the potential growth rate or automatically strengthen the national finances," and "the fund's performance depends on how well it has independent verification of resources, clear saving and withdrawal rules, and a rational project evaluation system."
The Director General stated accordingly at the "2027 budget proposal and future response fund forum" held in Yangjae-dong, Seoul, that regarding the operation plan for the 162.3 trillion won future response fund. He said, "Instead of exhausting unexpected large increases in tax revenue on one-off expenditure, we should convert them into a sustainable asset that can be used for the future," adding, "There is a need to prepare a rational fund management plan for this."
The Director General in particular suggested, "Major changes to the fund's objectives or transfers between accounts should require National Assembly approval, and liabilities, financial assets, operating expenses, and multi-year performance should be disclosed in an integrated manner." He also said, "Secure rationality and objectivity in the method of calculating additional tax revenue, and prohibit borrowing for fund contributions," adding, "Disclose item-by-item tax scenarios and sensitivities so that uncertain resources do not solidify into fixed expenditure."
However, the Director General, regarding the expected effects of the fund, said it "can serve as a catalyst to lift the potential growth rate while contributing to asset formation for future generations," and "can mitigate the risk of having to sharply cut expenditure or significantly increase the issuance of Government Bonds in a crisis."
Meanwhile, Cho Yong-beom, Vice Minister of the Ministry of Planning and Budget, attended the forum the same day and described next year's budget proposal as "unprecedented." He said, "Despite record-high fiscal expenditure, the government debt ratio is 48.3%, down 3.3 percentage points from 51.6% this year," adding, "We achieved both goals at the same time—driving economic growth and improving fiscal soundness."