Shafaqna English– A presidential aide in South Korea confirmed on Wednesday(26 Aug 2026) that the country’s newly established fund, capitalized by unprecedented tax revenues generated during the semiconductor industry boom, is designed to disburse funds across a three-to-four-year horizon.
This financing mechanism is specifically intended for investment projects, not for ongoing expenditure categories such as social welfare programs.
The official elaborated that the Future Response Fund serves a dual purpose: firstly, to underwrite long-term developmental projects, and secondly, to act as a buffer that shields public finances from volatility in tax collection.
He further contended that resorting to emergency supplementary budgets during revenue windfalls, or conversely imposing arbitrary expenditure cuts during shortfalls, constitutes an imprudent and fiscally irresponsible approach to governance.
Source: Reuters