The government is set to establish a 'Future Response Fund' to focus on supporting youth and next-generation growth drivers, utilizing additional tax revenue generated from the recent semiconductor market boom.
According to the Ministry of Finance's '2026 Second Half Economic Growth Strategy' announced on July 14, the government confirmed the creation of the Future Response Fund to effectively utilize excess tax revenue from corporate taxes due to strong semiconductor exports.
The fund will target four key areas: enhancing youth independence and capabilities, expanding next-generation growth drivers, promoting balanced regional development, and innovating future-oriented education. Plans include strengthening support for youth housing and asset formation, as well as allocating significant budgets to national strategic technologies such as artificial intelligence (AI), biotechnology, and quantum technology.
To proactively address potential economic downturns in the second half of the year, the government will intensively manage the execution of both central and local government finances, as well as education budgets.
Notably, the government has significantly increased public investment and policy financing. The public investment target for this year has been raised from the previously planned 70 trillion won to 72 trillion won, aiming for an overachievement. This adjustment is part of a strategy to accelerate large-scale social overhead capital (SOC) projects and energy infrastructure expansion to support the private construction and manufacturing sectors.
Policy financing will also be expanded to the largest level in history, increasing from the initially planned 633.7 trillion won to approximately 638.4 trillion won.
Measures to alleviate inflation concerns have also been included. To provide tangible benefits to consumers, the government plans to issue discount vouchers for agricultural, livestock, and fishery products at a monthly level of 20 billion won. Additionally, a quota tariff will be applied to 49 essential food items that are highly dependent on imports and closely related to the livelihoods of ordinary citizens.
In response to the ongoing high exchange rates that burden small and medium-sized enterprises (SMEs) importing raw materials, the government will swiftly provide 14.9 trillion won in emergency management funds to SMEs. Furthermore, the scope of support for 'exchange rate fluctuation insurance' will be expanded to alleviate concerns among small export and import businesses.
The financial safety net for small business owners and self-employed individuals facing challenges due to persistently high interest rates will also be enhanced. The total supply of the 'Small Business Hope Dream Loan,' a key funding source for small business owners, will be doubled from the previous 1.5 trillion won to 3 trillion won.
Additionally, the government will significantly expand the eligibility and scope of support for high-interest refinancing loans for small business owners who have borrowed at rates exceeding 7% from secondary financial institutions.
Finally, to prevent risk factors from spreading throughout the macroeconomy, the government will strengthen inter-agency cooperation. A 'Comprehensive Market Monitoring Meeting' will be regularly held to comprehensively review macroeconomic trends, as well as developments in the financial and foreign exchange markets, and the real estate market linked to household debt.
* This article has been translated by AI.
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