Promoting the establishment of a Future Response Fund with additional semiconductor tax revenue
The Future Response Fund will create a source of funding for future investments with additional tax revenue from the semiconductor boom It is planned to be used for youth housing and job support, as well as megaprojects
The Blue House, the government, and the Democratic Party of Korea have decided to establish a new “Future Response Fund” based on the additional tax revenue increased by the semiconductor boom. This fund is expected to be used for support for the three major megaprojects, expanding future growth engines, easing polarization, and supporting youth housing, startups, and jobs.
On the 5th, Chief Presidential Secretary Kang Hoonsik stated at a highlevel ruling partygovernment meeting that the additional tax revenue would be used as investment resources for future generations. Kang Joonhyun, chief spokesperson for the Democratic Party, also explained that the party, government, and presidential office agreed on the direction of establishing the fund.
However, followup procedures for securing actual funding and a legal basis still remain. Under the current system, excess tax revenue must first be allocated to statutory expenditures such as settlement and debt repayment, so there are observations that an additional supplementary budget may be necessary in order to secure funding for the fund within this year.