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  • Government Restructures Education Funding Amid Semiconductor Boom
    Government Restructures Education Funding Amid Semiconductor Boom The government is establishing a 'Future Response Fund' based on additional tax revenue from the semiconductor boom and is significantly overhauling the local education financial grant system. While this may appear to signal a reduction in primary and secondary education budgets, a closer look reveals that the Ministry of Education has strategically safeguarded its interests.Through the revised funding formula, all differences arising from the changes will be allocated to a new 'Education and Talent Account' within the fund, securing investment for early childhood, higher education, and lifelong learning, thereby maintaining the total national education investment while broadening the scope to 'education throughout life.'On August 21, the government held the 'First Financial Operation Strategy Council' at the Government Seoul Building, where it finalized the plans for the Future Response Fund and the grant reform. The most significant change in the grant calculation method will shift from the previous '20.79% of domestic tax' linkage to a new formula: 'previous year's grant × three-year average growth rate × (three-year average change in school-age population × 0.35).'Initially, financial authorities aimed to reflect a decline in the school-age population of over 40% and completely abolish the domestic tax linkage. However, the Ministry of Education strongly emphasized the inflexibility of personnel costs, which account for over 60% of local education expenditures, successfully reducing the reflection rate to 35%.Additionally, a 'grant preservation clause' will be codified in the Local Education Financial Grants Act to ensure that if the total grant amount decreases compared to the previous year due to economic downturns, the difference will be fully compensated. This measure provides a robust safeguard against the anticipated 'budget drop' and 'reduction in personnel-related project costs' that local education offices were most concerned about.One of the most notable aspects is the establishment of the 'Education and Talent Account' within the Future Response Fund. The Ministry of Planning and Finance plans to separately allocate additional tax revenue from the semiconductor boom to invest in four key areas: youth, growth drivers, local development, and education and talent.In this process, the entire difference arising from the revised grant formula (the amount of domestic tax at 20.79% minus the grant calculated under the new formula) will be legally designated as income for the Education and Talent Account. Notably, transfers to other accounts will be strictly prohibited, ensuring that funds adjusted from the grants do not leak into industrial or general social overhead capital budgets.Ultimately, while the formula change may seem to alter the grants, it effectively maintains the overall education and talent investment at the level of '20.79% of domestic tax.'This measure allows the Ministry of Education to expand significant financial resources previously confined to primary and secondary education into areas such as early childhood education (integrated care), university innovation (transition to AX and strengthening research competitiveness), vocational and lifelong education, addressing long-standing financial challenges.University presidents and lifelong education advocates have consistently called for increased funding for higher and lifelong education, which has lagged behind the OECD average, but have often faced setbacks due to the rigid funding structure of primary and secondary grants. With this reform, the Ministry of Education has secured independent and stable resources to focus on national future challenges, including investment in early childhood education due to integration, nurturing outstanding talent in science and technology, enhancing regional university competitiveness, and promoting adult digital literacy and lifelong education.Regarding the grant reform, an education sector official stated, 'Rather than clinging to the absolute figure of 20.79% of domestic tax linkage, the decision to fully allocate equivalent resources to the Education and Talent Account to invest from early childhood to lifelong education is a pragmatic choice by the Ministry of Education.' He added, 'In the future legislative process, it is essential to actively incorporate the concerns of education superintendents and educational organizations to find a balance in addressing educational disparities and nurturing future talent.'* This article has been translated by AI. 2026-08-21 12:04:10
  • Mayor Lee Min-keun: We will capture the 70-year history of Daebu grapes and the future of Ansan
    Mayor Lee Min-keun: 'We will capture the 70-year history of Daebu grapes and the future of Ansan' Mayor Lee Min-keun expressed on the 19th, "We will capture the 70-year history of Daebu grapes and the future of Ansan."On this day, Mayor Lee held a final report meeting on the preparations for the '2026 Daebu Grape Festival' at the city hall conference room, where he reviewed the overall festival operations and safety measures, stating his commitment to the event.The preparations are in the final stages to promote the excellence of Daebu grapes and enhance the festival's status as a representative local event.About 40 attendees were present at the meeting, including Mayor Lee, Ansan city council members, relevant departments, the Daebu Grape Festival Committee, the Ansan Danwon Police Station, and the Ansan Fire Station.Participants shared updates on related events and carefully examined support measures from various agencies regarding traffic, safety, and order maintenance.In particular, they re-evaluated the safety management system to prepare for any unexpected situations that may arise during the event and discussed strategies to minimize visitor inconvenience.This year's Daebu Grape Festival is set to take place from September 19 to 20 at the Daebu Sea Fragrance Theme Park.The festival will also feature the Daebu Haesol-gil Walking Festival and the Ansan Marathon, creating a citizen-participatory event that combines walking, experiences, and cultural activities centered around Daebu grapes.Notably, to celebrate the 40th anniversary of city status, a '40 Years of Ansan & 70 Years of Daebu Grapes Theme Exhibition' will be established to showcase the growth of Ansan and the history and value of Daebu grapes in one place, as revealed by Mayor Lee.Through collaboration with local universities, the festival will present regionally specialized content, including desserts made with Daebu grapes and the local wine 'Cheongsu.' Additionally, interactive programs for children and families will be expanded.Mayor Lee aims to evolve the festival beyond simply tasting and purchasing grapes into an experience that allows visitors to enjoy the tourism resources of Daebu Island and local agricultural products.During the final report meeting, Mayor Lee emphasized that the success of the festival depends not only on the content but also on the safety and convenience of citizens and visitors, urging close cooperation among relevant agencies.As the festival approaches, citizens are expressing growing anticipation.Residents are looking forward to experiencing the taste and quality of Daebu grapes firsthand, as well as enjoying the history of Ansan and the charm of Daebu Island with their families.Ansan resident Kim said, "I take pride in Daebu grapes as a representative specialty of Ansan. This year, with the exhibition reflecting both 40 years of Ansan and 70 years of Daebu grapes, I definitely want to visit with my family."Another resident, Park, noted, "This isn't just an event for selling grapes; with the walking festival, marathon, and family experience programs, there will be much more to see than before. Above all, since we are bringing our kids, I hope parking, traffic, and safety management are well organized."Local merchants are also welcoming the festival, believing that an increase in visitors to Daebu Island will benefit local businesses such as restaurants and shops.Meanwhile, Mayor Lee urged, "Please ensure thorough preparations so that the Daebu Grape Festival can firmly establish itself as a representative festival of Ansan and Daebu Island." He added, "I ask that all relevant departments and agencies work closely together to ensure that both citizens and visitors can enjoy the festival safely and pleasantly."* This article has been translated by AI. 2026-08-21 11:56:00
  • Jung Jeom-sik Calls for Shift to Evidence-Based Governance Under Lee Administration
    Jung Jeom-sik Calls for Shift to Evidence-Based Governance Under Lee Administration Jung Jeom-sik, the floor leader of the People Power Party, asserted on August 21 that the government should shift its economic policies, including real estate, to a market-oriented approach. He also urged changes in the economic leadership, including the replacement of Kim Yong-beom, the head of the Presidential Policy Office.During a National Assembly countermeasures meeting, Jung emphasized, "There are rampant rumors about the second cabinet reshuffle of the Lee Jae-myung administration, and looking at the candidates being mentioned raises concerns." He stated that the purpose of the reshuffle should not be merely to rotate positions but to fundamentally change the government's policy direction.Jung proposed a transition from a governance model based on unstable ideologies and experiments to one grounded in verified policies, common sense, and trust. He specifically called for the replacement of Kim and Deputy Prime Minister for Economy Koo Yun-cheol. He also raised the need to address internal confusion in the foreign and security lines by replacing Unification Minister Jeong Dong-young and Defense Minister An Gyu-baek, aiming to alleviate public anxiety regarding security and defense. Additionally, he advised that the police chief and prosecutor general should be appointed promptly.Jung remarked, "The ruling party has already placed a party leader that President Lee Jae-myung desires, so I hope the Blue House and the cabinet can be filled with capable individuals that the public wants."Lim Yi-ja, who was appointed as the new Policy Chair the day before, voiced her concerns during her first countermeasures meeting regarding housing policy and power supply measures. She stated, "Housing supply is not a one-time event of finding a piece of land and building a few apartments; it must provide assurance that sufficient housing will be continuously supplied where needed to stabilize the market."She added, "Discussions on housing supply in Yongsan Park should be halted for now, and social discussions and agreements on the future value of national parks, soil purification, and environmental impact should precede this." Lim also suggested that the urban redevelopment and reconstruction laws be amended to allow for a maximum increase of 1.3 times the legal upper limit of floor area ratio through bipartisan agreement.Furthermore, she emphasized the need to establish a power grid to ensure that the government's announced three mega projects do not end up as mere empty promises. Lim urged, "The 12th Basic Plan for Power Supply must accurately reflect the surge in power demand, and plans for additional new nuclear power plants for stable power supply should be prepared. We must restart discussions on the Special Act to Support the Nuclear Power Industry to establish a proactive institutional foundation to respond to the increasing demand."Meanwhile, Jung congratulated Lim on her appointment and requested that she prepare measures regarding the college entrance exam's written and essay evaluations, the Yellow Envelope Act (revised labor law), and areas in government and ruling party legislation that require normalization.* This article has been translated by AI. 2026-08-21 11:20:10
  • Gyeonggi Gwacheon City Corporation Conducts Air Raid Preparedness Training
    Gyeonggi Gwacheon City Corporation Conducts Air Raid Preparedness Training The Gyeonggi Gwacheon City Corporation conducted civil defense training on August 20, in conjunction with the Eulji Exercise, to ensure rapid evacuation and initial response during emergencies such as air raids. The training took place from 2 p.m. for 20 minutes at three locations, including the Gwacheon Citizens' Hall. More than 120 participants, including employees of the corporation and representatives from related organizations, took part in the exercise. The drill focused on actions required in actual emergency situations, simulating the issuance of air raid alerts. Participants moved to designated evacuation sites according to the alerts, confirmed emergency action guidelines, and reviewed the roles and responsibilities of civil defense personnel. The corporation utilized audiovisual materials to instruct participants on how to identify evacuation locations and prepare survival kits, emphasizing essential safety rules to be known in advance. The training aimed not only to engage participants but also to enhance understanding of how individuals and organizations should respond in the early stages of a crisis. Preparations to increase the effectiveness of the training were also conducted in advance. The corporation held a pre-meeting for workplace civil defense personnel to review training procedures and roles, and informed facility users and stakeholders about the training schedule and designated evacuation sites through posters and announcements. This training served as an opportunity for both employees and citizens using the facilities to revisit emergency action guidelines. During the exercise, citizens checked the locations of designated evacuation sites within the facilities they regularly use and reviewed how to respond to announcements during disaster situations, such as air raid alerts. Some citizens expressed that it was meaningful to confirm the locations of evacuation facilities and emergency action guidelines that they had not previously paid much attention to. Importantly, the Eulji Exercise and civil defense training were not just events for specific agencies or officials, but a process to review emergency response systems together with the citizens who actually use the facilities. A corporation official stated, "Through this training, employees and stakeholders within the facilities were able to directly confirm necessary actions during emergencies and review the response system." He added, "We will continue to conduct thorough training considering actual situations to create an environment where citizens can use the facilities with peace of mind." The corporation plans to continue assessing safety management systems to enhance the response capabilities of employees and users by simulating various emergency situations tailored to the characteristics of the facilities, minimizing confusion during actual disasters.* This article has been translated by AI. 2026-08-21 11:16:00
  • Government to Revise Local Education Funding Formula Amid Declining Student Numbers
    Government to Revise Local Education Funding Formula Amid Declining Student Numbers The government plans to revise the formula for local education financial grants to reduce instability caused by declining school-age populations and fluctuations in tax revenue. The new formula will enhance the stability of total grants by reflecting economic growth rates and inflation while incorporating some changes in school-age population. Savings from this adjustment will be reinvested in future education and talent initiatives, including early childhood education and attracting national talent. Additionally, local grants will be linked to the Future Response Fund to strengthen support for regional growth and living conditions.This information was presented by the government during the first Financial Operation Strategy Council meeting on August 21.Currently, local education financial grants are structured to be 20.79% linked to domestic tax revenue. However, there have been ongoing calls for adjustments due to the decline in school-age populations. The number of school-age children dropped from 8.8 million in 2010 to 5.91 million last year, a decrease of 2.88 million (32.8%).Moreover, the government noted the need to address the short-term excess in grants resulting from a tax revenue boom. While investment in primary and secondary education (166%) exceeds the OECD average, investment in higher education stands at only 69%, which is also a concern.A Ministry of Economy and Finance official stated, "The local grants linked to domestic taxes have high financial uncertainty. We aim to enhance efficiency and stability through the establishment of this fund."The government will revise the formula considering economic conditions and changes in school-age populations. The plan is to increase grants based on the previous year's total while adjusting for only 35% of the change in school-age population over the past three years, reflecting the average economic growth rate during that period. The personnel costs for teachers, which do not decrease based on student numbers (60%), will not be included in this adjustment.With the formula revision, it is expected that grants will increase by reflecting the scale of national economic growth and inflation, thereby reducing the volatility of grants compared to tax revenue fluctuations.Funds generated from the grant revisions will be allocated to a separate education and talent account within the Future Response Fund, focusing on investments in early childhood education and attracting national talent. The government aims to ensure a continuous increase in per-student grants and total amounts while alleviating volatility.If the total grant amount decreases compared to the previous year, the difference will be compensated to ensure that the total does not decline, as stipulated in the grant law.An official from the Ministry of Education emphasized, "We have established safeguards to prevent a decrease in total amounts compared to the previous year by reflecting the growth rate. The 20.79% will be invested in education and talent areas to mitigate financial volatility."The structure of local grants, currently at 19.24%, will be maintained while adjusting the base figure. The base figure will exclude the Future Response Fund reserves from domestic taxes. Additionally, a local account will be established to comprehensively support local governments in creating growth hubs and improving living conditions. Furthermore, provisions will be added to allow for additional support to local governments based on economic conditions and financial circumstances.* This article has been translated by AI. 2026-08-21 11:12:10
  • Kwon Min-soo, New Deputy Governor of the Bank of Korea, Calls for Cautious and Flexible Policy Decisions
    Kwon Min-soo, New Deputy Governor of the Bank of Korea, Calls for Cautious and Flexible Policy Decisions Kwon Min-soo, the newly appointed Deputy Governor of the Bank of Korea, stated on August 21, "The conditions facing our economy are challenging, and cautious and flexible policy decisions are necessary at this time."During his inauguration ceremony, Kwon noted, "While growth is improving more than expected due to strong semiconductor performance, inflation remains above target levels, and risks of financial imbalance continue, particularly concerning household debt and housing prices." He emphasized the need for careful and adaptable policy decisions, considering exchange rate volatility and geopolitical and trade risks.Kwon expressed his commitment to ensuring that the Bank of Korea fulfills its fundamental roles of price stability and financial stability. He stated, "I will enhance our macroeconomic analysis and economic judgment capabilities and continuously improve our monetary policy tools and market communication."He also indicated a focus on long-term challenges, including a soft landing for household debt, financial stability, growth potential, and balanced development across regions, sectors, and social classes.Kwon mentioned plans to enhance the Bank's response capabilities in financial and foreign exchange markets and to promote the internationalization of the Korean won. He aims to respond swiftly through advanced market analysis and open market operations while ensuring that financial stability is not compromised by improving the macroprudential framework.He added, "We will continue to build on our success in being included in the World Government Bond Index (WGBI) and focus on the next challenge of being included in the Morgan Stanley Capital International (MSCI) developed index. We will ensure the stable establishment of a 24-hour foreign exchange market and support the development of an offshore won payment system, digital currency, and payment infrastructure without disruption."Kwon also outlined a vision to strengthen domestic and international communication by proactively raising agendas and proposing solutions within international organizations and central bank cooperation frameworks. He stated, "I will strive to explain the Bank of Korea's decisions clearly and accurately to investors, policymakers, and the public, and to reflect market voices in our policies. We will also carefully develop statistics and public services in line with changes in the economic structure, such as the spread of artificial intelligence (AI)."Finally, he emphasized the importance of creating a Bank of Korea where the organization and its members grow together. Kwon remarked, "We will effectively utilize AI in our work to innovate our working methods and strengthen risk management in response to changes in the information technology (IT) environment and working infrastructure."* This article has been translated by AI. 2026-08-21 11:12:10
  • Park Hong-keun: Future Response Fund to Serve as Strategic Investment Platform
    Park Hong-keun: Future Response Fund to Serve as Strategic Investment Platform Park Hong-keun, Minister of the Office for Government Policy Coordination, announced plans to invest additional tax revenue from the semiconductor boom into future growth areas such as youth, artificial intelligence (AI), local development, and talent cultivation, rather than using it for temporary expenditures.On August 21, the Ministry held the first meeting of the Fiscal Management Strategy Council at the Government Seoul Complex, chaired by Minister Park, to discuss the implementation of the Future Response Fund and the reform of local education financial grants.Minister Park stated, "We aim to establish the Future Response Fund by accumulating rapidly increasing tax revenues, using it as a strategic investment platform to support potential growth rate recovery and as a financial stabilization mechanism to mitigate revenue volatility."He emphasized the need for bold and swift investments over the next two to three years to respond to the industrial transformation led by AI and the decline in potential growth rates. He also highlighted the necessity to change the existing fiscal management approach, which sees significant fluctuations in revenue and expenditure based on the semiconductor market."This additional tax revenue is a valuable resource for us at the forefront of the AI transformation, and we will ensure it is invested in essential areas," Park said. "The next two to three years will be a critical period for redesigning the national system in line with the full-scale spread of AI, providing an opportunity to reopen the growth potential of our economy."The Future Response Fund will accumulate domestic tax revenues that exceed the average trend over the past decade. The fund will focus on four areas: youth, growth drivers, local development, and education/talent, and will also support three major mega-projects, including frontier-level AI, physical AI, and AI data centers.If revenues decrease or if there is a shortfall during the year, the fund will use accumulated surplus funds to bolster fiscal capacity. If necessary, it will also be used for national debt repayment and will be invested in stocks and bonds through professional asset management firms to secure fund income.The calculation method for local education financial grants will change from the current structure, which is automatically linked to 20.79% of domestic tax, to a new method that reflects the previous year's grants, the average real growth rate over the last three years, and changes in the school-age population.The new grants will be calculated by applying the average real growth rate of the last three years to the previous year's grants and adding 35% of the average change in the school-age population over the last three years. To account for fixed costs such as personnel expenses, only a portion of the decrease in the school-age population will be applied.Under the new formula, if the grants decrease compared to the previous year, the government will cover the shortfall. The difference between 20.79% of domestic tax revenue, excluding additional tax revenue, and the newly calculated grants will be allocated to the education and talent account within the Future Response Fund for use in early childhood and higher education, as well as talent attraction.While the school-age population has decreased from 8.8 million in 2010 to 5.91 million in 2025, a 32.8% drop, grants have increased by 117.6% from 32.3 trillion won to 70.3 trillion won during the same period. The government aims to reduce fiscal volatility due to changes in tax revenue and the school-age population while addressing investment imbalances in the education sector.The government plans to prepare legislation necessary for the establishment of the Future Response Fund and the reform of local education financial grants, with a submission to the National Assembly scheduled for early September alongside the 2027 budget proposal.* This article has been translated by AI. 2026-08-21 11:12:00
  • South Korea to Allocate Surplus Tax Revenue to Future Response Fund
    South Korea to Allocate Surplus Tax Revenue to Future Response Fund The South Korean government will not separately calculate the increase in corporate tax from semiconductor companies but will instead allocate the total domestic tax revenue exceeding the long-term trend of the past decade to the Future Response Fund. This initiative aims to create a "fiscal reservoir" that accumulates resources during tax revenue booms for future industry investments and can be tapped into when revenues decline.On August 21, the government held the first meeting of the Fiscal Management Strategy Council at the Government Seoul Office, where it announced the "Future Response Fund Implementation Plan."The core funding source for the fund is "additional tax revenue." If the domestic tax revenue budget for the following year exceeds the growth trend of the past decade, the difference will be transferred from the general account to the fund.Additional tax revenue will be calculated based on total domestic tax revenue without isolating the actual tax payments or corporate tax increases from the semiconductor sector. However, taxes such as liquor tax, rural special tax, and education, comprehensive real estate, and transportation taxes that are earmarked for specific purposes will be excluded from this calculation.The long-term trend will be determined by applying the average growth rate over the past decade to the domestic tax revenue from two years prior. For instance, the trend for 2027 will be based on the 2025 revenue figures adjusted by the average growth rate from 2015 to 2025.The government chose a 10-year period to encompass both the booms and busts of the semiconductor industry, which typically fluctuates every 3 to 5 years. This approach aims to ensure sustainability by using tax revenues that exceed the long-term average from the overall industrial and macroeconomic cycles, rather than relying on single-year revenue estimates.Any "excess tax revenue" generated when actual revenue surpasses expectations will be accumulated separately from additional tax revenue. If the revised domestic tax revenue forecast in September exceeds the initial budget, the difference will be added to the fund through off-budget methods.While additional tax revenue reflects long-term trends due to structural economic changes or significant economic fluctuations, excess tax revenue is attributed to short-term economic variations or estimation errors. The government plans to use excess tax revenue as supplementary funding while primarily relying on additional tax revenue for the fund's main income source.The exact amount of additional tax revenue, which will help gauge the fund's initial size, has not yet been disclosed as next year's revenue projections are still pending. The government is expected to announce the additional tax revenue figures alongside the 2027 budget and national fiscal management plan at the end of this month.A Ministry of Strategy and Finance official stated, "The Ministry of Economy and Finance will announce the revised tax revenue estimates at the end of September, including the excess tax revenue at that time. The remaining funds from the surplus will not be substantial, but the exact figures will be confirmed after the settlement is completed."The surplus funds will be allocated to the Future Response Fund after accounting for local allocation tax adjustments, public fund repayments, and national debt repayments. The fund's surplus will also generate income through investments in bonds and stocks.If the revenue budget falls below the long-term trend or if a revenue shortfall occurs, funds will be redirected from the accumulated surplus in the fund to bolster the general account. This mechanism aims to mitigate the impact of economic fluctuations, allowing for increased spending during revenue booms and reducing expenditures during downturns.The fund will consist of a general account and four project accounts focused on youth, growth drivers, local development, and education. Resources will be allocated to youth employment, housing, artificial intelligence (AI), major projects, future technologies, improving local living conditions, and higher and lifelong education.The Ministry of Strategy and Finance will manage the entire fund, while relevant ministries will execute their respective projects. The plan is to utilize external asset management firms to manage surplus funds without creating a separate public institution or direct government investment.The government will announce a package of legislative proposals, including the Future Response Fund Act and the National Fiscal Act, from August 24 to 28. Following a Cabinet meeting on September 1, the related bills will be submitted to the National Assembly along with next year's budget on September 3.* This article has been translated by AI. 2026-08-21 11:12:00
  • People Power Party to Review Financial Policies of Lee Jae-myung Administration
    People Power Party to Review Financial Policies of Lee Jae-myung Administration The People Power Party announced plans to assess the appropriateness of the financial expansion policies of the Lee Jae-myung administration during the 2025 fiscal year settlement review. This includes verifying the details of special activity expenses and the budget related to the relocation of the presidential office.On August 21, members of the Budget Settlement Committee from the People Power Party held a press conference at the National Assembly to outline key issues and the direction of the 2025 fiscal year settlement review. A primary focus will be on the appropriateness of the financial expansion policies, which increased the national budget from 673.3 trillion won to 703.3 trillion won through two supplementary budgets, raising national debt from 1,273.3 trillion won to 1,301.9 trillion won.They stated, "We selected 100 key issues related to the 2025 fiscal year settlement based on the principle that 'correct settlements create correct budgets,' focusing on projects that violated the National Finance Act, such as new initiatives pursued without National Assembly approval."Specifically, they will analyze the execution rates of supplementary budget projects to hold accountable for unnecessary deficit bond issuance due to excessive supplementary budgets. They also criticized the Democratic Party for changing its stance on the disclosure of special activity expenses, which it had previously demanded while in opposition, and for refusing to provide detailed documents regarding the budget for the presidential office relocation.Notably, they highlighted the use of special activity funds, including 4.1 billion won for the presidential office, 6.6 billion won for the Special Prosecutor Jo Eun-seok, 9.1 billion won for the Special Prosecutor Min Jung-ki, and 5.5 billion won for the Special Prosecutor Lee Myung-hun, as well as the budget details related to the presidential office relocation. They criticized, "While in opposition, they demanded transparency and cut funding, but now that they are in power, they refuse to disclose the details." This also includes 16.2 billion won for facility improvement projects at the presidential office, 9.8 billion won for security infrastructure by the Presidential Security Service, and 4.5 billion won related to the police's return to the presidential office.Additionally, they pointed out issues with projects in the supplementary budget, such as the Small and Medium Business Administration's fund for small businesses, which reflected 300 billion won but had no actual corporate investment, and the Ministry of Science and ICT's AI innovation fund, which had an increase of 105 billion won but resulted in 382.1 billion won in unused funds for the zero-emission vehicle supply project. They also noted that the Ministry of Culture, Sports and Tourism's new technology convergence content industry support had a 210 billion won increase in the second supplementary budget but only a 9% execution rate (19 billion won), and the Ministry of Land, Infrastructure and Transport's general national road construction project had 1.846 trillion won carried over or unused, which is 2.1 times the supplementary budget of 860 billion won. Furthermore, the Ministry of National Defense's basic support facility project had an increase of 527 billion won, with 402 billion won used for other projects and 311 billion won left unused.They concluded, "The 2025 fiscal year settlement review is not merely a formality but a serious inquiry into the accountability of individual problem projects. At the same time, we will demand bold structural adjustments for projects that lack results or are repeatedly criticized for annual carryovers, and we will strive to ensure that the settlement results serve as the basis for next year's budget proposal." 2026-08-21 11:08:10
  • Korea Technology Guarantee Fund Facilitates $245 Million M&A Deal
    Korea Technology Guarantee Fund Facilitates $245 Million M&A Deal The Korea Technology Guarantee Fund announced on August 21 that it has facilitated a merger and acquisition (M&A) deal worth 24.5 billion won (approximately $245 million).The M&A platform, developed by the fund in collaboration with investment institutions, aims to support small and medium-sized enterprises (SMEs) in their M&A endeavors. APS Innovation, a company specializing in secondary battery equipment, signed a contract earlier this month to acquire 100% of the shares of IRE Engineering for 24.5 billion won, with assistance from the Korea Technology Guarantee Fund and Intercapital Partners.APS Innovation registered as a potential buyer on the M&A platform to expand into new business areas, leveraging its technological expertise accumulated in the secondary battery and display equipment sectors. The Korea Technology Guarantee Fund connected APS Innovation with Intercapital Partners, which provided brokerage and specialized advisory services for the M&A.Through this acquisition, APS Innovation aims to diversify its business by combining IRE's automated equipment technology for cosmetics filling and packaging with its own precision machinery control and manufacturing capabilities. The company also expects to enhance its sales network and global competitiveness by utilizing the overseas business infrastructure it has established in the United States, Canada, and China.Previously, the Korea Technology Guarantee Fund established a comprehensive support system for M&A based on public-private cooperation in March of last year.“This M&A demonstrates that our platform is making a tangible contribution to the growth and innovation ecosystem of technology-based SMEs,” said Kwon Hyung-taek, chairman of the Korea Technology Guarantee Fund. “We will continue to expand our collaboration with private institutions to actively discover and support technology-driven M&As.”* This article has been translated by AI. 2026-08-21 11:08:00