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Next week (from August 31 to September 4), the government is set to unveil a super budget of 800 trillion won for the next year. According to the National Finance Act, the budget plan prepared by the Minister of the Office for Government Policy Coordination will be submitted to the National Assembly by September 3, 120 days before the start of the fiscal year, after being reviewed by the Cabinet and approved by the President. With a surge in corporate tax revenue due to the semiconductor industry's boom, the largest national tax revenue in history is expected, leading to a budget plan exceeding 800 trillion won.
The Office for Government Policy Coordination announced plans to establish a 'Future Response Fund' to utilize the additional tax revenue generated from the semiconductor boom. The size of this fund is expected to exceed 100 trillion won, reflecting the recent increase in tax revenue. Additionally, the allocation method for local education financial grants is also set to be revised, with plans to calculate the amounts based on the three-year average economic growth rate and changes in the school-age population.
Meanwhile, the Bank of Korea is scheduled to announce the preliminary balance of payments for July on the 4th of next month. As of June this year, the cumulative current account surplus reached 191 billion dollars, marking the largest amount on a semi-annual basis. With strong semiconductor exports continuing, the maximum surplus is also expected for July. The Bank of Korea has revised its annual current account surplus forecast from 250 billion dollars to 450 billion dollars.