South Korean lawmakers clash over 162 trillion won Future Response Fund at audit
Version 2: Lim Lee-ja's remarks are now attributed only to the outlets that reported each part of her quote.
In short
Lawmakers clashed on Oct 8 over the government's 162 trillion won Future Response Fund (미래대응기금) during the National Assembly's audit of the Ministry of Planning and Budget (기획예산처). The People Power Party called for the fund to be withdrawn, calling it a way around parliamentary oversight and President Lee Jae-myung's "pocket money", while the Democratic Party and Minister Park Hong-geun (박홍근) defended it as a fund to secure future growth. The audit started about 30 minutes late after a dispute over opposition protest signs.
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Ruling and opposition lawmakers clashed on Oct 8 over the government's 162 trillion won Future Response Fund (미래대응기금) during the National Assembly Finance, Economy and Planning Committee's (재정경제기획위원회) audit of the Ministry of Planning and Budget (기획예산처). The People Power Party called for the fund to be withdrawn, while the Democratic Party defended it as a fund to secure future growth. Newsis reported that the fund is being newly set up on excess tax revenue from the semiconductor boom. [ 1 , 2 , 4 , 6 ]
People Power Party lawmaker Lim Lee-ja (임이자) called the fund a makeshift transfer account that bypasses the National Assembly's oversight, an overdraft account that uses future generations' name and an unfair account that takes funds from local governments, and asked whether it was not President Lee Jae-myung's "pocket money". Minister Park Hong-geun (박홍근), a Democratic Party member, replied that political attacks do not change the facts and called the claim groundless. Democratic Party lawmaker Moon Jin-seok (문진석) said calling the fund pocket money was partisan language and described it as a fund to secure future growth engines. [ 1 , 2 , 4 , 6 ]
Opposition lawmakers also argued that excess tax revenue should repay debt. Park Soo-young (박수영) said 104 trillion won of the fund is to be set aside while 106 trillion won of national debt is taken on, calling it borrowing in order to save. Lim said the plan borrows at rates above 4% to earn returns at lower rates, and Kim Sang-hoon (김상훈) and Ahn Sang-hoon (안상훈) said debt repayment should come first. Park Hong-geun said the fund is a strategic investment platform to raise the potential growth rate, and that Korea, unlike Norway, has no oil, so what should be passed to future generations is sustainable growth. [ 2 , 3 , 4 , 5 ]
Park Soo-young said most of the fund's 130 projects are projects of Jeonnam-Gwangju Special City and are multi-year. The minister said the fund is a strategic investment to sustain the semiconductor industry and not aimed at a specific region. Dong-A Ilbo reported that a government amendment to the National Finance Act would allow spending on the fund's major items to be changed by up to 30% without a parliamentary vote; the minister said it does not infringe on the Assembly's review rights and the fund will be run within a plan submitted to the Assembly. [ 2 , 4 , 5 ]
Democratic Party lawmaker Kim Nam-joon (김남준) cited Samsung Electronics' third-quarter operating profit of 107.4 trillion won and called the semiconductor boom a historic opportunity. Democratic Party lawmaker Kim Young-hwan (김영환) urged social investment in housing, and People Power Party lawmaker Yoon Young-seok (윤영석) proposed about 10 youth hub cities outside the capital region. [ 2 , 3 ]
Before the audit, People Power Party lawmakers attached signs to their laptops calling for the fund to be withdrawn. Committee chairman Cho Seung-rae (조승래), of the Democratic Party, asked for them to be removed. Yonhap and SBS reported that lawmakers of both sides left the room, while Newsis reported that People Power Party lawmakers walked out. The audit started about 30 minutes late, around 10:30 according to Yonhap. [ 1 , 2 , 4 , 6 ]
Korea Economic Daily described the fund as "200 trillion won plus" in size, and reported that 18 of 28 economists (64.3%) in a Korean Economic Association survey said reducing national debt should be the priority. [ 5 ]
Why it matters
The fund is being set up on excess tax revenue from the semiconductor boom, and the dispute is over whether that money should go into the fund or toward repaying national debt. According to Dong-A Ilbo, a government bill would let spending on the fund's main items be changed by up to 30% without a parliamentary vote, which the opposition says bypasses the Assembly's budget review.
Key facts
- The Future Response Fund is a 162 trillion won fund that the government and the Democratic Party defended and the People Power Party asked to be withdrawn. [ 1 , 2 , 4 , 6 ]
- Newsis reported that the fund is being newly set up on excess tax revenue from the semiconductor boom. [ 2 ]
- People Power Party lawmaker Lim Lee-ja (임이자) called the fund a makeshift transfer account that bypasses the National Assembly's oversight and an overdraft account. [ 1 , 2 , 4 , 5 , 6 ]
- Lim Lee-ja said the fund is an overdraft account that uses future generations' name. [ 1 , 2 , 4 , 6 ]
- People Power Party lawmaker Park Soo-young (박수영) said 104 trillion won of the 162 trillion won fund is to be set aside while 106 trillion won of national debt is taken on. [ 2 , 3 , 4 ]
- Minister Park Hong-geun said the fund is a strategic investment platform to raise the potential growth rate. [ 4 , 5 ]
- A government amendment to the National Finance Act would let the fund's spending on major items be changed by up to 30% without a National Assembly vote, Dong-A Ilbo reported. [ 4 ]
- The audit started about 30 minutes late after People Power Party lawmakers attached protest signs to their laptops and the committee chairman asked for them to be removed. [ 1 , 2 , 4 ]
Confirmed by several sources
- The Future Response Fund under dispute is 162 trillion won in size. [ 1 , 2 , 4 , 6 ]
- Lim Lee-ja called the fund a transfer account that bypasses National Assembly oversight and an overdraft account. [ 1 , 2 , 4 , 5 , 6 ]
- Moon Jin-seok called the "pocket money" attack partisan language. [ 1 , 2 , 4 ]
- Moon Jin-seok described the fund as one for future growth engines. [ 1 , 2 , 6 ]
- Park Soo-young said 104 trillion won is to be set aside while 106 trillion won of national debt is taken on. [ 2 , 3 , 4 , 5 ]
- The minister said the fund is a strategic investment for the semiconductor industry, not for a specific region. [ 2 , 4 ]
- The audit was delayed about 30 minutes over People Power Party protest signs. [ 1 , 2 , 4 ]
Still unclear
- The size of the fund. Four outlets give 162 trillion won; Korea Economic Daily describes it as "200 trillion won plus".
- Who walked out over the protest signs. Yonhap and SBS say lawmakers of both sides left; Newsis says People Power Party lawmakers walked out.
- When the 106 trillion won in debt is taken on. Dong-A Ilbo refers to bonds issued next year; Korea Economic Daily quotes Park Soo-young as saying national debt rises this year.
- Whether most of the fund's 130 projects are in Jeonnam-Gwangju Special City. Only Newsis reports this claim by Park Soo-young; the minister said the fund is not aimed at a specific region.
- How much spending could change without a parliamentary vote. Only Dong-A Ilbo reports the 30% rule and its own estimate of up to about 13.6 trillion won.
What local media are saying
Timeline, local time
- The audit of the Ministry of Planning and Budget starts about 30 minutes late after the picket dispute. [ 1 ]
- Yonhap reports the clash over the fund. [ 1 ]
- Newsis publishes its combined report on the audit. [ 2 ]
- Dong-A Ilbo reports on the fund dispute and the National Finance Act amendment. [ 4 ]
- Korea Economic Daily reports the clash and an economists' survey. [ 5 ]