[Anchor]

Driven by the semiconductor boom, this year's national tax revenue is projected to reach a record high of KRW 478.6 trillion. This is an increase of KRW 63 trillion compared to projections made just half a year ago. Part of this excess tax revenue is planned to be used for the Future Response Fund, sparking growing controversy over how the government intends to spend this massive amount of money.

Reporter Chae Heesun has the details.

[Reporter]

Following Samsung Electronics, SK Hynix also posted record-breaking operating profits.

The stellar performance of semiconductor companies led to an increase in tax revenue.

Corporate tax, income tax from performance bonuses and special dividends, and securities transaction tax all rose.

The government's re-estimated national tax revenue for this year stands at a record KRW 478.6 trillion.

This is KRW 88.4 trillion more than the initial budget projection and KRW 63.2 trillion more than the forecast during the extra budget compilation last March.

The government initially plans to use part of the excess tax revenue to reduce government bond issuance.

Another portion is planned to be additionally deposited into the Future Response Fund, which will be newly established next year on a scale of KRW 162 trillion, with the amount estimated to reach up to the KRW 56 trillion range.

However, as the size of the fund grows, controversies are resurfacing that it could become a government slush fund.

President Lee Jae-myung mentioned the fund yesterday (September 29), suggesting the expansion of discount support for agricultural products for Lunar New Year and Chuseok next year.

[President Lee Jae-myung (Cabinet Meeting (Yesterday)): "Next year, I think it would be good to greatly increase it so that Lunar New Year and Chuseok combined reach close to about KRW 1 trillion, and we can use the Future Response Fund for this, right? It also helps alleviate polarization."]

Some government ministries are also stepping up to utilize the Future Response Fund as a funding source for major projects.

[Government Ministry Official: "(You mentioned earlier that the funding source for the OO Plan would be the Future Response Fund.) That is the government-level plan."]

Local governments are pushing back as they are set to receive fewer local share taxes than expected due to funds flowing into the Future Response Fund.

[Park Chan-dae / Mayor of Incheon and President of the National Governors' Association of Korea (Yesterday): "Stable financial resources must be backed for local governments to play their roles close to the residents."]

Ahead of the National Assembly's review of the bills related to the fund, experts point out that the targets for support and the criteria for distribution must be clearly defined.

(Photo courtesy of Yonhap News)
(Video reporting: Lee Jae-young, Video editing: Lee So-young, Design: Kim Ye-ji)