The Presidential Office has identified the revitalization of potential growth rates, the alleviation of polarization, balanced regional development, youth policies, and educational issues as the intended uses for the 'Future Response Fund,' which will utilize additional tax revenue generated by the semiconductor industry boom as investment resources for future generations.

Ryu Deok-hyun, Presidential Secretary for Fiscal Planning, appeared on the YouTube program 'Presidential Office Fact Mill,' hosted by Senior Secretary for Public Relations Seong Ki-hong, on this day (July 7). He explained, "We devised the Future Response Fund while contemplating ways to return (additional tax revenue) to the public in a more planned and effective manner."

Secretary Ryu stated, "There are critical tasks that our government is facing," adding, "We have the epochal task of rebounding our continuously declining potential growth rate, and the challenge of how to alleviate the 'K-shaped polarization' that occurs despite growth."

He continued, "We are also considering the important task that the nation can only thrive if the regions thrive, as well as how to present a future vision to the youth and issues regarding education," and added, "We are preparing through the Future Response Fund to resolve these issues well."

Regarding the Future Response Fund to be used for youth issues in particular, he stated, "We are preparing large-scale youth policies, and this is related to that," and added, "It is also necessary for policies that reflect housing, jobs, and the aspirations of young people."

He also mentioned government infrastructure investment related to the three mega-projects as a major area of use.

Regarding the procedures for establishing the fund, he said, "We will need to create the fund in the form of a special act," and added, "We will comply with legal procedures and prepare to sufficiently communicate and build consensus through various public organizations, including academia and the media."

When asked about when a rough blueprint for the fund would be produced, he replied, "In the near term, we must include specific details around the time of the government budget proposal (in August)," and added, "The goal is to prepare it quickly."

Secretary Ryu also explained the background behind the use of the term 'additional tax revenue' rather than the commonly used 'excess tax revenue' during the discussions on fund creation.

He said, "Excess tax revenue refers to cases where more revenue comes in than the (single fiscal year) projected tax revenue set a year ago," and explained, "Additional tax revenue takes into account cases where more revenue comes in than the level we generally expect to receive each year."

This is an explanation that it is a new level of terminology that considers long-term tax revenue trends.

In addition, while noting that it is not easy to predict the scale of the additional tax revenue yet, he added, "We believe that a significant amount of tax revenue will come in through next year and the year after."

The 'Fact Mill' program held on this day is the first program unveiled since Senior Secretary Seong Ki-hong joined the Presidential Office.

It is interpreted as an initiative to strengthen communication with the public and increase the acceptance of policies.

Senior Secretary Seong stated, "We will strengthen open communication so that the policies of the people's sovereignty government can be delivered in the language of the people at the people's eye level," and added, "We will have the staff in charge or authorities appear directly to answer questions the public is curious about, and if there are misunderstandings not based on facts, we will explain them responsibly."
(Photo: Yonhap News)