Cheong Wa Dae Says Future Response Fund Will Be Created Through Special Legislation... To Be Used for Mega Projects and Easing Polarization

Cheong Wa Dae has formally announced plans to establish a Future Response Fund, financed by additional tax revenue generated by the semiconductor boom and other factors. It also decided to lay the institutional groundwork through special legislation. The fund's size and operating direction are expected to take shape along with next year's budget proposal at the end of August.
Ryu Deok-hyeon, Cheong Wa Dae senior secretary for fiscal planning, appeared on the YouTube program "Cheong Wa Dae Fact Mill," hosted by Sung Ki-hong, senior presidential secretary for public relations and communications, on the 7th. He said, "The Future Response Fund should be established through special legislation," adding, "We plan to work closely with the National Assembly and communicate well so that this process can be completed."
Ryu also outlined the roadmap for creating the Future Response Fund. "The government is scheduled to submit next year's budget proposal at the end of August," he said. "In the near term, we need to include specific details around the time the government budget is being prepared. Our goal is to move quickly." The episode of "Fact Mill" aired that day was the first public program released after Sung's new appointment. It was intended to strengthen communication with the public.
As for how the Future Response Fund will be used, he mentioned support for three major mega projects: semiconductors, AI data centers, and physical AI. He also cited efforts to address polarization, promote balanced regional development, and support youth policies.
Ryu said, "There are urgent challenges facing our government." He added, "Growth potential has been steadily declining, and we have a historic task to reverse that trend. Another challenge is how to ease the 'K-shaped polarization' that emerges even as the economy grows." He continued, "We also believe it is important that the regions must thrive for the country to thrive, and we are considering how to present a future vision to young people, along with education issues." He explained that the fund is being prepared to help address these problems. On the use of the fund for youth issues, he said, "We are preparing a comprehensive youth policy, and this is part of that effort." He added that policies reflecting housing, jobs, and young people's aspirations are also needed.
Regarding the size of this year's additional tax revenue, he said, "It is still unclear how much more will come in this year, but we expect somewhat more additional revenue than when we drew up the supplementary budget earlier this year."
Ryu also stressed the importance of communicating with the public during the policy process. He said, "Among the various steps to inform the public, we will also provide some explanation through the National Fiscal Strategy Meeting a week from now, and we will work with the government to communicate sufficiently through academia, the media, and other public institutions so that we can build consensus."
Meanwhile, the government and the ruling party agreed at a Senior Party-Government Council on the 5th to push for the creation of the Future Response Fund so that additional tax revenue from the semiconductor boom can be used as investment for future generations. Kang Jun-hyun, chief spokesperson for the Democratic Party of Korea (DPK), said, "We agreed with the government's position that the additional tax revenue will be used for future generations, the Republic of Korea's growth engine, and measures to address polarization."


cjk@fnnews.com Choi Jong-geun Reporter