Government Drafts Record 821 Trillion Won 'Super Budget' for Next Year… 104 Trillion Won Kept as Reserves

[Anchor]

The government has unveiled its budget proposal for next year. Standing at 820.9 trillion won, it is a record-breaking "super budget." The administration announced plans to focus investments on future industries, young people, and regional areas, fueled by tax revenues expected from the semiconductor boom.

Reporter Kim Beom-joo has the details.

[Reporter]

First, 43.3 trillion won—an increase of more than 50% compared to this year—will be poured into youth-related sectors.

A prime example is the "Our Child Independence Fund," which deposits up to 1.2 million won annually into fund accounts for children from families below a certain income threshold until they turn 18.

The calculation is that if up to 2 million won is accumulated each year for 19 years, including contributions supported by parents, they can secure a seed money of 70 million won upon reaching adulthood.

A total of 1.7 trillion won will be allocated to the Youth Future Savings account, where the government covers 6% of the savings for individuals aged 19 to 34, and 2.1 trillion won will go to the Soldier's Tomorrow Preparation Savings for enlisted personnel.

Additionally, newlywed couples will receive a cash payment of 1 million won, and upon having a child, support will be provided with 10 million won for the first child and up to 20 million won for the third child and beyond.

[Cho Yong-beom / Vice Minister of Budget and Planning: Although we say we have continued youth preferential policies every year, they were increased in dribs and drabs, resulting in a low level of tangible impact. This time, we decided to pull out youth policies separately and go all out to the extent that it feels excessive, so that they can truly feel it.]

The government will also allocate 41 trillion won to foster cutting-edge strategic industries to develop future growth engines, 21.3 trillion won separately for semiconductors and artificial intelligence, and 117.1 trillion won to support regional areas and vulnerable groups.

To back these investments, the government plans to set aside 162 trillion won from excess tax revenues to newly establish a Future Response Fund.

After spending 58 trillion won next year on youth and growth engine investments, the remaining 104 trillion won is planned to be kept as a reserve fund in preparation for times when tax revenues fall short.

However, controversies are expected to arise during the subsequent review process regarding whether this money might be used like the government's private stash, or if the increase in cash support constitutes populist administration.

(Video Editing: Kim Yoon-sung, Design: Lee Ga-jin)
※ Please note: This article was translated by AI and may contain errors.