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On the 1st, the government announced the establishment of a 'Future Response Fund' worth 162.3 trillion won, based on additional tax revenue secured from the semiconductor boom. This fund will be utilized with a focus on investments in youth and artificial intelligence (AI), as well as new industries and regional revitalization. According to next year's budget proposal, national tax revenue is expected to be 584.4 trillion won, of which 162.3 trillion won will be allocated to the Future Response Fund.
The Future Response Fund consists of four business accounts: a youth account, a growth engine account, a local account, and an education and talent account, with approximately 45.4 trillion won, or about one-fourth of the total fund, being injected into these accounts. In the youth sector, support for employment and a package for marriage, childbirth, and childcare will be included, while the growth engine account will support AI development and the establishment of autonomous driving demonstration cities. Additionally, any surplus funds will be used to bolster fiscal capacity in case of tax revenue shortfalls.
However, concerns have been raised regarding the management of the fund. The government has the authority to change 30% of the major expenditure items of the fund without parliamentary approval, leading to controversy over the potential use of these funds as 'slush funds.' In response to these concerns, the government explained that post-control over the National Assembly will be strengthened and that any changes in fund utilization will be immediately reported to the National Assembly.