President Lee Jae Myung speaks at the government financial strategy meeting held at Cheong Wa Dae in Seoul, Monday, where he announced the creation of the "future response fund," with additional tax revenues expected to be within the 100 trillion won range for 2027. Yonhap
The government will establish a "future response fund" using the additional tax revenue expected from the booming semiconductor industry. During a government fiscal strategy meeting, President Lee Jae Myung said that the excess tax revenue in 2027 will likely be "unprecedented," detailing the administration's earlier plans of using this to fund the nation's future growth.
"Large-scale additional tax revenue will be used as strategic financial resources to prepare for the future," the president said, adding that it will be used to fund policies to support youth, regional development and education programs.
Tax revenue for 2027 is forecast to surpass 500 trillion won ($330 billion), beyond the government's previous estimate of 412 trillion won. If that is the case, the fund will likely reach the 100 trillion won range. The fund should be carefully and sustainably distributed, without being wasted on "popular" programs or ad-hoc spending. The government's plan to pursue expenditure restructuring of about 50 trillion won so as to cut away at redundancies or ineffective spending should be seen through.
