People Power Party says budget cut amount undecided, plans review announcement

The People Power Party plans to announce its approach to reviewing the 2027 budget proposal through its policy committee next week. A lawmaker in its parliamentary leadership said unnecessary spending in the future response fund and other items was under review, and that the specific amount of cuts had yet to be decided.

Special activities expenses for the presidential office and the serious crimes investigation agency have also been included among items being considered for cuts. The People Power Party plans to examine whether the budget allocations are appropriate while requesting records including details of how the funds were spent.

The People Power Party opposes establishing the future response fund and is pursuing substantial cuts. A proposal for cuts totaling 134 trillion won is under discussion, with the party considering using 104.4 trillion won in surplus fund resources to repay national debt and reducing spending on programs with sharply increased budgets, including cash support programs and rewards.

The government has budgeted total expenditure of 820.9 trillion won for next year, up 93 trillion won, or 12.8%, from this year. Based in part on projections of higher tax revenue from the semiconductor boom, the government plans to direct fiscal spending toward future growth drivers, livelihood stability and locally led growth.

The future response fund, a major point of contention, is a proposed new fund of 162 trillion won. Its purpose is to channel excess tax revenue from the semiconductor boom and other resources into investment in future growth drivers.

The government will deliver a policy address on the 2027 budget proposal and fund management plan at a National Assembly plenary session at 10 a.m. on the 2nd of next month. The National Assembly's Special Committee on Budget and Accounts began reviewing the budget proposal with a public hearing on the 30th.

Under the National Assembly Act, the statutory deadline for passing next year's budget proposal is December 2.

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.

Budget review begins as People Power Party signals 134 trillion won in cuts

Community discussion