[Anchor]

The upcoming budget plan includes a 162 trillion won Future Response Fund, financed largely by taxes that surged due to the semiconductor boom. This money is expected to spark intense debate throughout the parliamentary review process.

Reporter Min Gyeongho has the details.

[Reporter]

The Future Response Fund totals 162 trillion won, centered around tax revenues that increased amid the semiconductor boom.

The plan is to keep 104 trillion won as an emergency reserve for the future, and use about 12 trillion won instead of issuing government bonds.

The remaining 45 trillion won is slated to be distributed and used for youth support, future industries, regional development, and education.

However, the biggest controversy surrounds this 45-trillion-won portion.

The National Assembly Budget Office, an institution that researches budgets in parliament, has pointed out that nearly half of this amount constitutes fixed expenditures that will have to be continuously paid out going forward.

To use an analogy, it is like taking a temporary special bonus that came in briefly and using it to create newly established, recurring expenses.

Moreover, analyses indicate that these excess tax revenues will only flow in until 2028, after which they will drop to zero. This raises concerns over what will be done at that time and whether the funds will have to be replenished with the public's taxes again.

The Bank of Korea Governor has already expressed similar concerns.

[Shin Hyun-song / Bank of Korea Governor (October 22): "If temporary financial resources lead to ongoing expenditures, we must pay special attention to and monitor their sustainability."]

Countries that have grappled with similar dilemmas enforce strict criteria for accumulating and withdrawing funds.

Ireland, which attracted global high-tech companies, placed its dramatically increased tax revenues into a separate fund, making it impossible to withdraw them before 2041, when an aging-related crisis is anticipated.

Norway, which struck it big with oil, invests its revenues overseas and allows only about 3% of its total assets to be used for the government budget each year.

A provision allowing the government to spend up to 30% more on each project without parliamentary approval is also drawing controversy.

As a massive amount of tax revenue comes into hand after a long while, fierce debates are expected during the parliamentary review process over how best to use it.

(Video by Lee Chan-su | Video Editing by Kim Jong-mi)