South Korea's budget chief pushes for spending-growth-tax revenue loop with new Future Fund

During a National Assembly audit, Budget Minister Park Hong-geun emphasized the goal of creating a virtuous cycle where proactive fiscal spending fuels economic growth, which in turn generates additional tax revenue. He presented the Future Fund, planned for introduction next year, as a strategic platform to allocate windfall tax receipts from the semiconductor boom toward sustainable development projects. Park said the fund will provide fiscal space to invest in young people, growth engines, regional economies, education and talent development over multiple years.

He also warned that the government must tackle persistent issues such as the rising economic and social burdens of an aging society and widening regional, generational and income gaps. The minister pledged to overhaul spending structures to ensure the long-term sustainability of public finances.