Park Hongkeun: "Excess Tax Revenue to Be Allocated to Future Response Fund Will Be Determined After Revised Tax Estimate in Late September"

On September 17, Minister of Planning and Budget Park Honggeun stated, "After the Ministry of Economy and Finance completes its re-estimation of tax revenue at the end of this month, we will decide the scale of excess tax revenue to be additionally injected into the Future Response Fund."

Yonhap News

Minister Park made this statement in response to a question from reporters about how much of this year's excess tax revenue would be allocated to the Future Response Fund during a press briefing in the newly opened government Planning Ministry press room at the Sejong Government Complex.

Previously, the Planning Ministry announced its plan to allocate 162.3 trillion won in additional tax revenue expected from next year’s semiconductor boom to the Future Response Fund, with investments earmarked for youth, growth engines, regional and educational development, and talent.

Of this total, 45.4 trillion won will be applied directly to actual projects, while 104.4 trillion won will be managed as surplus funds. Another 12.5 trillion won will be used to reduce the volume of new government bond issuances.

Additionally, this year’s excess tax revenue will also be included as a resource for the Future Response Fund. This means that the fund size may increase depending on the results of the tax revenue re-estimation to be announced by the Ministry of Economy and Finance at the end of this month.

According to forecasts within and outside the government, this year’s excess tax revenue could reach between 30 trillion won and 50 trillion won, prompting speculation that the final size of the Future Response Fund could exceed 200 trillion won.

Minister Park commented, "Of course, we can review such matters in advance, but the Ministry of Economy and Finance must ultimately provide us with the tax revenue re-estimation results so we can decide our next steps based on that. Without knowing the scale, it would be premature for us to make any determinations or plans."

He added, "There are already various ways to use this year's excess tax revenue under the Future Response Fund Act, and there are also procedures for handling it according to the National Finance Act."

When asked whether this year’s excess tax revenue would amount to around 50 trillion won, he replied, "We have some broad expectations, but I cannot disclose the scale. The final decision will likely be made on September 28; after that we plan to follow official discussions with the Presidential Office, the Ministry of Economy and Finance, and internally within our ministry."

Minister Park emphasized, "We must prove the reason for establishing the Planning Ministry. Unlike the previous era of the Ministry of Strategy and Finance, we must deliver results in terms of strategic planning."

He added, "The budget process should not just be an annual formality. It should be evaluated based on how much it contributes to the future and lives of the nation and the people. I will work tirelessly towards that direction."

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