[2026 Audit] "The Wage-Dependent Fiscal Framework Must Be Broken"...Kim Taenyeon Calls for Including Operating Profit in Social Insurance Premium System

"AI Basic Society Account" Must Be Established in the Future Response Fund
Fiscal Strategy Needs to Be Included in the "AI Basic Society Implementation Plan for All"

On October 6, Kim Taenyeon, member of the Democratic Party of Korea, pointed out that the nation must move beyond a fiscal framework based on the premise of a “work-and-wage economy” as jobs are increasingly replaced by artificial intelligence (AI). Specifically, he proposed measures such as creating a new “AI Basic Society Account” within the Future Response Fund.

Kim Taenyeon, member of the Democratic Party of Korea. Photo by Jin-Hyung Kang

At the National Assembly’s Strategy and Finance Committee audit of the Ministry of Economy and Finance held on this day, Kim called for a fundamental redesign of the fiscal system. He raised questions about the sustainability of a fiscal base that relies on wages.

Regarding current fiscal policy, he noted, “Fiscal resources are tied to employment,” and said, “During the industrialization era, growth, employment, wages, and public finance all moved in the same direction. However, in the age of AI, this structure is the first and the most severely disrupted.” He further pointed out that as the share of labor decreases, the mainstay of tax revenue will inevitably shift to corporate taxation, noting the volatility of corporate tax revenues. He also criticized the current performance-sharing system as nothing more than ex-post redistribution.

As a solution, he proposed the establishment of an “AI Basic Society Account” within the Future Response Fund. Kim emphasized, “While the fund currently only has an account dedicated to fueling AI-led growth, there is no account to support jobs and national income destabilized by AI. It is contradictory for a government that sets an AI Basic Society as its national vision to omit this basic society from its fiscal fund.”

He also suggested reforming the system of institutions imposing social insurance. Specifically, he proposed to complement the current system that bases social insurance premiums solely on wages by including the sum of labor costs and operating profit. The aim is to address a structure in which the corporate burden increases the more they hire, while investment in robots and automated facilities reduces the burden. He stressed, “It is fair for responsibilities to be equal, whether value is created by labor or by AI,” and urged research into reforming the institutions responsible for imposing such charges.

Additionally, Kim stated, “A comprehensive roadmap that includes not only the ‘AI Basic Society Plan for All’ to be finalized by year’s end but also a fiscal strategy, must be produced,” adding, “Growth strategies and fiscal strategies must not move separately. The Deputy Prime Minister should take leadership in designing this plan as the official responsible for fiscal policy.”

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