- U.S. targeted tariffs on semiconductors? Will discuss based on existing agreements
- Claiming it is a reaction to the Honam project is an overinterpretation
- Next year's budget expands investment in youth for 'growth potential'
- Separate Future Response Fund? Pool funds like a dam and use when necessary
- Criticism to pay off debt? Treasury bonds must exist for the financial market to function
- 'Slush fund' suspicion is a misunderstanding... Uses are designated and subject to National Assembly oversight
- Single-stock leveraged ETFs have stabilized as trading volume decreased
- Strong presidential grip? Acted as a control tower... Discussions held with ministries
- Tax reform adjustments? Reflecting public feedback without compromising the core purpose
- Policy favoring actual residents continues... Reports of further easing are misconstrued
- Housing supply in Yongsan Park? Intent is to use it as a public asset
- Number of visitors to Children's Garden significantly lower compared to Children's Grand Park
- Vacant houses left by U.S. military... Considering ways to maximize space efficiency

■ Broadcast: SBS Kim Tae-hyun's Political Show (FM 103.5 MHz 7:00 a.m. – 9:00 a.m.)
■ Date: September 4, 2026 (Friday)
■ Host: Attorney Kim Tae-hyun
■ Guest: Ha Joon-kyung, Senior Presidential Secretary for Economic Growth

[Kim Tae-hyun] : The government announced next year's budget proposal this past Tuesday. Driven by the semiconductor boom, the increase in the government budget is the largest on record. We have invited Ha Joon-kyung, Senior Presidential Secretary for Economic Growth, to our studio to hear firsthand where and how much state money will be spent. Hello, Senior Secretary.

[Ha Joon-kyung] : Hello.

[Kim Tae-hyun] : It has been a while, Senior Secretary. Great to see you.

[Ha Joon-kyung] : It feels like we met not long ago.

[Kim Tae-hyun] : It is always good to see you often. We invited you today because of the budget proposal, but before that, let's touch on one issue first. There was news that the United States plans to impose additional tariffs on semiconductors not produced domestically. This was recently stated by the Secretary of Commerce, Lutnick, in front of reporters. From our perspective, we need to export semiconductors to the U.S., but the U.S. is signaling it only wants 'Made in USA.' Won't this deal a blow to our country?

[Ha Joon-kyung] : In fact, from the U.S. perspective, thinking that producing semiconductors domestically would be desirable is, in a way, natural, and this is not a new stance. For a long time, there has been a policy stance of offering incentives for domestic production in the U.S. while imposing tariffs on foreign imports. They approach not only semiconductors but all commodities in that manner. Recently, as semiconductor prices have risen, such voices seem to have become more prominent from the U.S. side. However, we reached various agreements last year. During tariff negotiations, semiconductors were discussed, and there is a balance of interests that we agreed upon previously. Therefore, within the scope of not disrupting that balance of interests, we are currently discussing working-level matters smoothly. I do not think this should be viewed as some sort of sudden, massive shock.

[Kim Tae-hyun] : Could it be that the U.S. is being sensitive about the Honam Semiconductor Mega Project? As in, 'We told you to build factories in our country, but if you build in Honam, will Samsung and SK be able to build in the U.S.? Come to America'—some kind of pressure like that?

[Ha Joon-kyung] : Well, the Honam semiconductor initiative is our domestic policy, isn't it?

[Kim Tae-hyun] : That is true.

[Ha Joon-kyung] : Linking that to the U.S. reacting to our domestic industrial policy is an overinterpretation. The U.S. is focused on its domestic demand for memory semiconductors and is considering how to address rising prices.

[Kim Tae-hyun] : Understood. Let's move on to the main topic. Senior Secretary, the government plans to spend 821 trillion won next year, up 12.8% from this year. How would you summarize the key feature of this budget proposal in a single phrase?

[Ha Joon-kyung] : Since I handle economic growth, I would describe it as a budget that boosts growth potential.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : It stands at 821 trillion won with a 12.8% increase, so one might perceive this as a significant expansion. However, national revenue has increased to 881 trillion won. Thus, far more revenue is coming in, and expenditures are smaller relative to revenue. When evaluated by the consolidated fiscal balance, which aligns closely with international standards, there is a substantial surplus. As for the managed fiscal balance used domestically, which excludes social security funds like pensions, the deficit is only around 0.1% of GDP. A level around 3% is generally considered quite sound, so 0.1% is virtually near a surplus, and the consolidated balance is indeed in surplus. From a macroeconomic standpoint, it is formulated in a very sound manner.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : As revenue is growing rapidly, spending has also increased accordingly, which is why the total scale expanded. The point is that we intend to invest this in growth potential. People might think, 'Isn't the sudden jump in government revenue just due to high corporate tax collections from the semiconductor boom, and won't this disappear eventually?' Because we have this fiscal room right now, we are allocating large-scale funds toward future growth potential.

[Kim Tae-hyun] : Then, compared to welfare budgets that might be seen as populist spending, has the growth-oriented budget expanded more?

[Ha Joon-kyung] : The increase in sectors such as industry, small and medium-sized enterprises, and energy is close to 30%, at 29.2%. Welfare increased by around 9-point-something percent. The industrial sector stands out much more, and we are heavily investing in R&D, infrastructure, solving difficulties faced by young people for the future, and capacity-building investments.

[Kim Tae-hyun] : Speaking of youth, spending allocated for young people and newlyweds has increased significantly.

[Ha Joon-kyung] : Yes.

[Kim Tae-hyun] : Budgetary support for youth is something every administration introduces. What makes this different from policies under previous administrations?

[Ha Joon-kyung] : The youth demographic represents our next generation. We approach this from a strategic investment perspective: only when the next generation strengthens its capabilities can our economy sustain growth. Rather than handing out funds simply because they are struggling, we are approaching this strategically to provide tailored support across different life stages of young people. We are offering comprehensive support across education, jobs, asset formation, housing, marriage, childbirth, parenting, daily living, and culture. As a result, this has increased by about 53% compared to last year to roughly 43 trillion won. It might feel somewhat extensive, but considering the difficulties young people face and their importance to our national economy, we are determined to commit fully to it.

[Kim Tae-hyun] : You mentioned that most of the increased budget is dedicated to future growth. In addition to this increased budget, a separate 104 trillion won was set aside to create the Future Response Fund. What is the significance of the Future Response Fund?

[Ha Joon-kyung] : Many people say, 'Since revenue increased significantly, pay off debt now.'

[Kim Tae-hyun] : There are indeed such arguments.

[Ha Joon-kyung] : When talking about national debt, it involves government bond issuances. Looking at the overall economy, government bonds must continuously be supplied to the market. There is broad demand for government bonds from pension funds and financial institutions. The existence of the government bond market is essential for the economy to operate, as it satisfies the demand for safe assets.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : If we have around 100 trillion won in surplus funds and use all 100 trillion won to pay off debt, it would cause massive turmoil in the government bond market.

[Kim Tae-hyun] : That could indeed be a consequence.

[Ha Joon-kyung] : Yes. Therefore, rather than increasing debt, we are lowering the national debt-to-GDP ratio from around 51% to around 48%. Considering the expansion of our economic scale, this is effectively paying off debt in real terms.

[Kim Tae-hyun] : Looking at the ratio, that is correct.

[Ha Joon-kyung] : While a certain volume of government bonds still needs to be issued, we are reducing that slightly to incur less debt. Despite that, surplus funds remain, and we are applying a smoothing mechanism. We cannot spend it all at once, so we set it aside like a dam to deploy incrementally to necessary areas as needed.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : If money flows in like a flood and pours directly into the economy, it can create various problems. So we pool it in a dam first and manage it so it can be utilized effectively when necessary.

[Kim Tae-hyun] : Then it is different from a reserve fund.

[Ha Joon-kyung] : You can understand it as something prepared across multiple years.

[Kim Tae-hyun] : Has the usage not been decided yet? For example, like when Norway created a sovereign wealth fund after discovering North Sea oil. Are the designated uses not yet clearly finalized?

[Ha Joon-kyung] : A significant portion of the usage has already been determined.

[Kim Tae-hyun] : Is that so?

[Ha Joon-kyung] : Out of the hundred-plus trillion won, several tens of trillions are structured into accounts to invest in youth, future development, education, and regional development. The remainder is pooled like a dam to be utilized later.

[Kim Tae-hyun] : The opposition immediately criticizes this, asking with suspicion whether it is being set aside as a slush fund to withdraw conveniently at any time. How do you view the opposition's perspective?

[Ha Joon-kyung] : One might look at it that way, suspecting some ulterior motive. When funds sit somewhere, such doubts can arise. However, all government spending is fundamentally subject to National Assembly oversight. We must report to and receive approval from the National Assembly, and even if spent quickly, the National Assembly ultimately verifies everything. Therefore, I believe the concerns raised by the opposition may be unfounded worries.

[Kim Tae-hyun] : Understood. Senior Secretary, it is often said that once budget spending increases, it is hard to reduce.

[Ha Joon-kyung] : Yes.

[Kim Tae-hyun] : Increasing spending because tax revenues surged from the semiconductor boom is fine, but semiconductors are a cyclical industry. While it would be great if this continued for 40 or 50 years, that may not happen. Are you prepared for the possibility that the semiconductor boom will peak and tax revenues will decline?

[Ha Joon-kyung] : Of course. While continuous semiconductor tax revenue would be ideal, we monitor global demand and advance contracts carefully. We can project revenue over the next several years. We made conservative forecasts and designed the framework so there will be no issues even if the cycle cools down.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : If revenues continue to exceed expectations, we are also prepared for various possibilities to utilize them.

[Kim Tae-hyun] : Understood. Recently, single-stock leveraged ETFs caused volatility in the stock market. A few months have passed since then. How do you assess current market conditions? Do you think the disruption caused by single-stock ETFs has been largely resolved?

[Ha Joon-kyung] : The trading volume and turnover velocity of single-stock leveraged ETFs have decreased significantly. Consequently, their potential to impact the market is considered very limited. When volatility was severe, whether it stemmed from this, global market uncertainty, or hedge fund liquidations requires precise analysis.

[Kim Tae-hyun] : That is right.

[Ha Joon-kyung] : It is true that it had a significant psychological impact on the public. We sympathized with that and took responsible countermeasures, introducing various policies. We currently assess that stability has been largely restored in that area.

[Kim Tae-hyun] : The stock market, specifically the KOSPI, is currently in the 6,000 range. Compared to a year ago, this is a significant rise.

[Ha Joon-kyung] : That is correct.

[Kim Tae-hyun] : The president's pledge was to reach 5,000 during the term, so mid-6,000s is an increase. However, having seen 9,000 before pulling back from the peak, psychologically people may feel it hasn't risen that much. What is needed for the stock market to regain its high and reach 10,000 on the KOSPI?

[Ha Joon-kyung] : In terms of corporate performance and fundamentals, our economic fundamentals are quite solid. Nevertheless, our capital market suffered from a lack of trust in the past. We have made significant reform efforts, starting from commercial law revisions. There is still more to be done, and we are working hard on structural improvements.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : Over time, we anticipate the public will place greater trust in our capital market.

[Kim Tae-hyun] : Understood. Former Chief of Staff for Policy Kim Yong-beom resigned, and a new chief will arrive. Regarding economic policy, there have been criticisms that the Blue House holds too strong a grip and that the cabinet lacks autonomy—criticisms seen across all administrations.

[Ha Joon-kyung] : Yes.

[Kim Tae-hyun] : As an official directly involved, what are your thoughts on those points?

[Ha Joon-kyung] : The Blue House acting as a control tower is an inevitable aspect of our system to some extent. When our administration took office last year, we started without a transition committee.

[Kim Tae-hyun] : That was the case.

[Ha Joon-kyung] : Upon inauguration, under circumstances where basic supplies were lacking and the cabinet had not yet been fully formed, there were immense tasks to handle immediately, starting from tariff negotiations. Forming a cabinet required confirmation hearings, and we did not have the luxury to wait for all of that. As a result, the Blue House took the lead in resolving issues before the public.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : Even after that, urgent issues required prompt solutions, which may have contributed to that perception. Fundamentally, all work is done in coordination with ministries, which execute working-level operations. We are currently coordinating and communicating well with them.

[Kim Tae-hyun] : Let's examine tax policy, Senior Secretary. The Comprehensive Real Estate Holding Tax on non-resident owners of a single home was restructured, easing regulations. However, the Rebuilding Korea Party criticized this, saying it "protected the interests of the top 1%." What is the background behind this revision?

[Ha Joon-kyung] : After presenting a government bill, we undergo a legislative notice period, which is essentially a period to collect public feedback. We gather diverse opinions from the public, and if there are reasonable points, it is natural to reflect them in the government proposal.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : You can understand it as reflecting public opinion within bounds that do not compromise the fundamental purpose. I do not think it undermined the core intent.

[Kim Tae-hyun] : Is that so?

[Ha Joon-kyung] : Regarding non-resident single homeowners, while the tax burden was eased, a distinction between actual residency and non-residency remains, maintaining the policy stance that favors actual residents. Institutional safeguards are in place across various aspects to uphold this fundamental spirit.

[Kim Tae-hyun] : Some news reports suggested that real estate taxes might be eased further. Are you actually reviewing this, given requests from the ruling party?

[Ha Joon-kyung] : I think those reports were misconstrued. During the legislative notice period, consultations with the ruling party naturally took place, and various proposals were put forward. The minor adjustments announced at the Cabinet meeting fully reflected those consultations. Subsequent reports about further measures likely stem from earlier proposals raised by the party being misconstrued.

[Kim Tae-hyun] : So at present, there will be no further easing?

[Ha Joon-kyung] : Well, legislation is ultimately determined by the National Assembly, so I cannot speak definitively on that. However, this represents the extent of discussions between the ruling party and the government.

[Kim Tae-hyun] : Understood. Senior Secretary, will apartments be built in Yongsan Park? The special bill has not yet been passed.

[Ha Joon-kyung] : I previously mentioned Yongsan Park. The returned site from the U.S. military spans 910,000 pyeong (approx. 3 square kilometers), while Yeouido is 880,000 pyeong.

[Kim Tae-hyun] : It truly is a massive site.

[Ha Joon-kyung] : Because the U.S. military was stationed there, people didn't traditionally think of it as our land. Yet here is a landmass larger than Yeouido in the center of Seoul.

[Kim Tae-hyun] : It is prime real estate.

[Ha Joon-kyung] : Yes, it is immense. The question was to consider how best to utilize it for future generations. The principle agreed upon in past legislation was not to privatize it, but to pass it down as a public asset for generations. I agree with that principle and believe it should not change. However, we must continuously evaluate how best to utilize it. When I previously noted that few people visited the Yongsan Children's Garden, someone looked into it: 300,000 people visited this year across an area of 300,000 square meters. Park utilization is evaluated by visitors per square meter, which translates to 1.68 visitors per square meter annually.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : In contrast, Children's Grand Park sees around 15 visitors per square meter. For flat land in the city center to be considered well-utilized, it should see about 10 to 20 visitors per square meter annually. That raises the question of how to maximize its use—whether building housing makes better use of it, or developing the park further.

[Kim Tae-hyun] : To raise utilization rates.

[Ha Joon-kyung] : That is something we should discuss as a society.

[Kim Tae-hyun] : Indeed.

[Ha Joon-kyung] : Adjacent to the site, there are also vacant one- and two-story houses previously occupied by U.S. military personnel that are currently deteriorating. We need to consider whether leaving these empty houses to future generations is desirable, or whether creating public housing spaces for youth would be better.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : Because the site is so vast, turning an area the size of Yeouido entirely into a single park incurs significant maintenance costs. Yongsan Children's Garden alone costs about 11.1 billion won annually. Divided by visitor numbers, it equates to providing tens of thousands of won per visitor, all funded by taxpayer money.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : Turning the entire Yongsan site into a park would likely cost over 100 billion won annually. We should deliberate whether it is desirable for young people to spend two hours commuting from Gyeonggi Province to visit and another two hours back, or whether developing public housing forms nearby would be more beneficial. Given its immense size, we should discuss spatial efficiency without prejudice, rather than simply framing it as 'housing versus recreational open space,' where recreational space naturally sounds more appealing.

[Kim Tae-hyun] : Yes.

[Ha Joon-kyung] : We need to discuss together how layout and scale can maximize both recreational value and spatial efficiency.

[Kim Tae-hyun] : Understood. We will conclude here. That was Ha Joon-kyung, Senior Presidential Secretary for Economic Growth. Thank you.

[Ha Joon-kyung] : Thank you.

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