Parties Clash Over Creation of Future Response Fund

The ruling and opposition parties were locked in a tense confrontation on the 22nd regarding the legal basis and operational plans for the 'Future Response Fund,' which the government decided to create using additional tax revenue collected amid the semiconductor boom. The government and the ruling party argue that the fund will serve as a 'fiscal reservoir' to prevent tax revenue from fluctuating with economic conditions and to secure future growth engines. The Ministry of Economy and Finance plans to push for the enactment of related laws and the revision of the National Finance Act as a package.

The key point of contention is the transparency of the fund's operation and whether the National Assembly has control over it. In particular, a provision allowing changes of up to 20% of fund expenditures without prior Assembly approval is under discussion.

Rep. Bae Joon-young, the floor leader of the National Assembly's Strategy and Finance Committee, criticized the government's plan to establish the fund at a press conference at the National Assembly that day. He labeled the fund a 'fiscal trick,' arguing, "The government claims it is preparing for the future, but in reality, it is a declaration that they will spend the people's hard-earned taxes at their own discretion." The opposition party is opposing the very establishment of the fund, emphasizing the existing principle of fiscal soundness that surplus tax revenue should be prioritized for repaying national debt.

In contrast, the Democratic Party stated its position to ensure substance during the legislative and Assembly review processes so that the Future Response Fund package bill complies with the National Finance Act and other laws.

As the gap between the parties' positions remains wide, deliberations and coordination regarding the fund's operation methods and the scope of the National Assembly's approval authority are expected to take place during the upcoming legislative process.