The South Korean government plans to establish a 'Future Response Fund' utilizing additional tax revenue generated from the booming semiconductor industry and is moving forward with the enactment of a special law. The specifics regarding the fund's size, resources, and operational direction are expected to be clarified alongside the budget proposal for the next fiscal year, which will be presented at the end of August.
Ryu Deok-hyun, the Senior Secretary for Fiscal Planning at the Blue House, stated on July 7 during a YouTube program hosted by Senior Secretary for Public Relations Hong Gi-hong that "the Future Response Fund needs to be established through a special law" and added, "We plan to proceed with the relevant procedures in consultation with the National Assembly without any delays."
Ryu emphasized, "Since the government must submit the budget proposal for the next fiscal year to the National Assembly by the end of August, our goal is to include detailed information about the fund in that proposal," and assured that preparations would be made swiftly.
The Future Response Fund is being considered for use in areas such as semiconductors, artificial intelligence (AI) data centers, physical AI, as well as initiatives aimed at reducing polarization, promoting regional balanced development, and supporting youth. Ryu explained, "It will serve as a resource to address national challenges such as recovering growth potential, alleviating polarization, revitalizing local economies, and supporting the future of youth," and noted that it would be actively utilized in youth policies related to housing and employment.
Regarding the scale of additional tax revenue for this year, Ryu remarked, "It is difficult to predict the exact amount, but there is a possibility that it could exceed our earlier estimates made during the supplementary budget preparation." The government plans to refine the fund's establishment strategy through future national fiscal strategy meetings and consultations with academia and the media.
Previously, on July 5, the government and the ruling Democratic Party agreed during a high-level government-party meeting to push for the establishment of the Future Response Fund to utilize additional tax revenue from the semiconductor boom for enhancing future growth drivers and investing in future generations.
* This article has been translated by AI.
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