Park Hongkeun: "Future Response Fund Could Be Discontinued Depending on Revenue Conditions After Next Year"

"Future Response Fund to Be Managed Transparently Within National Assembly Limits"

Moody’s and Fitch Issue Rare Successive Comments on Budget

Hongkeun Park, Minister of Strategy and Finance, is speaking at the 2027 budget party-government consultation held at the National Assembly Members' Office Building on the 25th. 2026.8.25 Photo by Hyunmin Kim

Park Hongkeun, Minister of Planning and Budget, addressed ongoing concerns that the 162 trillion won Future Response Fund, to be established, could become a catch-all government slush fund. He stated on September 10 that “it will be managed transparently and productively, strictly within the boundaries allowed by the National Assembly.”

Minister Park made these remarks during an appearance on the YouTube program “Kim Eo-jun’s News Factory: Humility Is Difficult,” responding to worries that the Future Response Fund could allow up to 30% discretionary managerial authority, potentially circumventing parliamentary control.

He explained, “The government’s discretionary authority only allows for modifications within the business areas already approved by the National Assembly; we cannot suddenly create new spending programs.”

In response to questions about the fund’s sustainability, Minister Park replied, “It depends on the level of revenue secured and whether expenditures occur all at once or gradually.” He continued, “Ultimately, the outcome will depend on how the semiconductor cycle unfolds over the next three to five years, but basically, we expect revenues to continue to flow in through next year and the year after.”

He added, “If revenues do not increase after the year following next, it is possible that the fund could be discontinued.”

Minister Park also commented on the unusual move by international credit rating agencies Moody’s and Fitch to issue separate reports and commentary regarding next year’s budget and the Future Response Fund. He said, “It is highly unusual,” and added, “We expect positive evaluations on the budget and the fund from international financial institutions such as the International Monetary Fund (IMF) and the Organisation for Economic Co-operation and Development (OECD).”

The previous day, the Ministry of Planning issued a press release stating that Moody’s had assessed the budget plan and the Future Response Fund as seeking a balance between securing fiscal soundness and expanding future growth engines. Fitch, according to the ministry, evaluated that the fund mitigates revenue volatility and that investment in strategic industries such as artificial intelligence (AI) could enhance growth potential.

This content was produced with the assistance of AI translation services.