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Budget review begins as People Power Party signals 134 trillion won in cuts
The National Assembly's Special Committee on Budget and Accounts began reviewing next year's budget with a public hearing on the 30th. The Democratic Party sought funding for livelihoods and future growth, while the People Power Party signaled cuts of around 134 trillion won.
The National Assembly's Special Committee on Budget and Accounts held a public hearing on the 30th and began reviewing next year's budget of around 820 trillion won. The Democratic Party is seeking funding for livelihoods and future growth engines, while the People Power Party has signaled cuts of around 134 trillion won.
Total expenditure in the government's proposal is 820.9 trillion won, up 12.8% from this year. The Democratic Party seeks passage by the statutory deadline and additional funding for jobs, housing and financial services for lower-income households, while the government proposes using increased tax revenue from factors including the semiconductor boom to establish a 162.3 trillion won Future Response Fund and direct spending toward artificial intelligence, semiconductors and livelihoods.
The People Power Party plans about 134 trillion won in cuts and adjustments, combining 104.4 trillion won in surplus funds in the Future Response Fund with reductions to individual programs, savings on government bond interest and other items.
At the hearing, Democratic Party lawmaker Kim Nam-geun called for active investment in artificial intelligence, semiconductors and AI data centers, arguing that funding should be found through other means even without excess tax revenue. Chung Tae-ho, the committee's Democratic Party coordinator, also opposed using all additional tax revenue to repay debt and emphasized pursuing fiscal stability alongside investment in the future.
People Power Party lawmaker Bae June-young argued that revenue gains from the semiconductor boom should be saved or used to repay debt to improve government finances. Lawmaker Lee Jong-wook criticized the fund's proposed operation, asking how it differed from issuing government bonds and depositing the proceeds in the future fund.
The committee plans comprehensive policy questioning on the 4th and 5th of next month, ministry-by-ministry reviews from the 9th through the 12th, and budget adjustment subcommittee deliberations from the 16th through the 20th. It has scheduled a full committee vote on the budget for the 30th.
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Politics ·
National Assembly to review 820.9 trillion won budget, with hearing set for the 30th
The National Assembly's Special Committee on Budget and Accounts plans to begin reviewing next year's budget proposal with a public hearing on the 30th. The government's submission totals 820.9 trillion won, 93 trillion won more than this year's original budget of 727.9 trillion won.
The review schedule calls for general policy questioning on the 4th and 5th of next month, followed by separate reviews of economic and non-economic ministries. The National Assembly then plans to convene its budget review subcommittee.
The 162 trillion won Future Response Fund was included in the budget on the basis of additional tax revenue from the semiconductor boom. The government envisions investing about 45.4 trillion won of the fund in four areas: young people, growth engines, regional development, and education and talent.
The People Power Party criticizes 17.577 trillion won, amounting to 40% of the investment in the four areas, as politically motivated cash handouts. The dispute pits the government's investment plans against the opposition party's assessment of the cash spending.
The government proposal includes 1.1657 trillion won for a rural and fishing community basic income pilot that would pay 150,000 won a month to about 1.29 million residents of 35 counties with declining populations. It also allocates 792.5 billion won to the Youth Culture and Arts Pass, which provides young people with 100,000 to 150,000 won annually for cultural attendance expenses; the People Power Party criticizes both programs as populist.
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