Park Honggeun on Future Response Fund controversy over bypassing Finance Ministry: "Discuss at National Assembly stage" [2026 Parliamentary Audit]

Bank of Korea Governor Shin Hyun-song and Minister of Planning and Budget Park Hongkeun exchange greetings during a comprehensive National Assembly audit of the Ministry of Planning and Budget, the Bank of Korea and other institutions at the National Assembly on Oct. 23, 2026. Photo by Yoon Dongju

Park Hongkeun, Minister of Planning and Budget, said on Oct. 23 that he would hold further consultations between the two ministries at the National Assembly over controversy that the Ministry of Economy and Finance had been bypassed during the drafting of the Future Response Fund bill.

Park made the remarks during a comprehensive audit of the Ministry of Planning and Budget by the National Assembly's Committee on Economy and Finance, in response to a lawmaker's question asking whether it was true that the ministry had not accepted any of the 10 provisions the Ministry of Economy and Finance had requested to be deleted or revised.

"Because we submitted the Future Response Fund Act in connection with the budget, we had no choice but to focus our efforts at the end of August to meet the budget submission deadline," Park said. "We held working-level consultations and submitted the bill after agreeing to further discuss the views of both ministries during the National Assembly's review."

Regarding the controversy over shortening the legislative notice period, which is 40 days under the Administrative Procedures Act, to five days, he said, "It is true that the notice period was short," but added, "We consulted with the Ministry of Government Legislation and proceeded in accordance with the provision allowing exceptions when necessary under the law."

In response to claims that the Future Response Fund had been designed in a way that would prevent it from being managed over the long term, Park said, "It can be built up in advance to prepare for future downturns, and investments can also be made to shorten the cycle or expand the revenue base." He added, "With the formula for education grants also being revised, tens of trillions of won will continue to be accumulated each year."

Park expressed concern about the fiscal burden from the prolonged oil price cap system. "The system has made a positive contribution, but we also need to consider the fiscal burden arising from its prolonged use and concerns that it could increase gasoline consumption," he said.

"Whether to continue the price cap is a matter that should be judged comprehensively, taking into account the situation in the Middle East, oil price trends, the burden on people's livelihoods and overall conditions," he said, adding, "We will consult with the relevant ministries while fully considering concerns that could arise if the system continues."

The government has already reflected this year's losses to be settled in the contingency reserve for this year and in next year's budget proposal.

Bank of Korea Governor Shin Hyun-song also praised the price cap system's contribution to stabilizing prices in the short term, while expressing concern about its sustainability.

"We estimate that the price cap lowered inflation by about 0.6 percentage points," Shin said, adding that "the price cap system produced highly desirable effects this year."

However, he said, "South Korea's fiscal position is relatively sound, so it has room to maintain the system for a little longer," but added, "I do not think it is a system that should be maintained over the long term."

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