According to South Korean media citing government officials, the 162.3 trillion won "Future Response Fund" is expected to have an actual operating period of only 4 to 5 years, differing from the government's initial positioning of it as a long-term "fiscal reservoir."
The fund primarily relies on additional tax revenue generated by the semiconductor industry boom, using the average growth rate of domestic tax revenue over the past 10 years as a benchmark; tax revenue exceeding this level will be allocated to the fund. The government originally planned to accumulate funds during periods of high semiconductor industry growth and increased tax revenue, and to use the fund to stabilize public finances during economic downturns and reduced tax revenue. Additional tax revenue is projected to reach 162.3 trillion won by 2027, but if the semiconductor cycle weakens, subsequent funding sources may decrease significantly.
This structural limitation is the main reason the government believes the fund's actual operating period is only 4 to 5 years. The South Korean government has therefore begun screening projects that can be completed within 4 to 5 years. Kim Sang-bong, an economics professor at Seoul National University, warned that if the semiconductor boom ends next year, the Future Response Fund could be exhausted by 2028.
