Yoon Beom, Vice Minister of the Ministry of Strategy and Finance, stated that the Future Response Fund will be designed and operated in a precise and transparent manner to convert increased tax revenue from the semiconductor boom into investments for future growth and enhance fiscal stability. He also proposed creating a fund that involves local governments and future generations.
During his remarks at the 'Future Response Fund Policy Symposium' held on October 22 at the Bank Hall in Myeongdong, Yoon said, "We established the Future Response Fund as a strategic investment platform and fiscal stabilization tool to transform the increased tax revenue from the current semiconductor boom into 'future opportunities' rather than allowing it to be spent on one-time expenditures."
He emphasized, "As this represents a groundbreaking innovation in fiscal policy, we will design and operate it more precisely and transparently, ensuring that it becomes a 'Future Response Fund for All' created together by local and central governments, the National Assembly, and current and future generations."
The symposium was co-hosted by the office of Democratic Party lawmaker Oh Gi-hyeong and the Korea Institute of Public Finance. Experts from fiscal research institutions and academia attended to discuss the institutional design and operational direction of the Future Response Fund, as well as fiscal innovation tasks.
In the keynote address, Kim Hyun-ah, head of the Fiscal Research Division at the Korea Institute of Public Finance, emphasized the need for strategic investment and fiscal stabilization in the age of AI. She suggested that it is essential to strengthen the safety net that acts as a catalyst for growth while ensuring the sustainability of public finances.
Subsequent presentations discussed the detailed principles of fund management and institutional improvements. Kim Jeong-hoon, head of the Fiscal Policy Research Institute, assessed that the Future Response Fund could reduce the volatility of annual budgets and enhance the medium-term stability and predictability of central, local, and educational finances.
Professor Kim Bong-hwan from Seoul National University’s Graduate School of Public Administration suggested that while ensuring flexibility in budget management to respond swiftly to rapidly changing environments, it is crucial to strengthen legislative oversight to achieve a balance with fiscal democracy. Kim Nam-jong from the Korea Financial Research Institute's Capital Market Research Office emphasized the need to establish asset management principles for enhancing potential growth rates and timely investments in AI, considering liquidity across different maturities and building an independent risk management and performance evaluation system.
During the comprehensive discussion, experts exchanged views on the legal and institutional operational direction of the Future Response Fund. The Ministry of Strategy and Finance plans to review the suggestions raised during the symposium to supplement necessary aspects for institutional operation and to consult with the National Assembly to ensure that related legislation is passed within the year.
* This article has been translated by AI.
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