Semiconductor Boom Expected to Bring in Additional 63 Trillion Won in Tax Revenue... Controversy Over Fund Allocation Resurfaces

[Anchor]

Boosted by the semiconductor boom, this year's national tax revenue is projected to reach a record high of 478.6 trillion won. This is an increase of 63 trillion won compared to projections made just half a year ago. Plans are underway to use a portion of this tax surplus for a future response fund, sparking growing controversy over how the government will spend this massive amount of money.

Reporter Chae Heesun has the details.

[Reporter]

Following Samsung Electronics, SK hynix also achieved record-high operating profits.

The stellar performance of semiconductor companies led to an increase in tax revenue.

Corporate income taxes, as well as income taxes from performance bonuses and special dividends, and securities transaction taxes all increased.

The government's revised estimate for this year's national tax revenue is a record 478.6 trillion won.

This is an increase of 88.4 trillion won from the main budget forecast, and 63.2 trillion won more than the projection made during the extra budget formulation in March.

The government's initial policy is to use a portion of the tax surplus to reduce the issuance of government bonds.

A portion is planned to be additionally accumulated into the Future Response Fund, which will be newly established next year on a scale of 162 trillion won, with the amount estimated to reach up to the mid-50 trillion won range.

However, as the scale of the fund grows, controversy has resurfaced that it could become a slush fund for the government.

President Lee Jae-myung mentioned the fund yesterday (the 29th), suggesting an expansion of discount support for agricultural products during next year's Lunar New Year and Chuseok holidays.

[President Lee Jae-myung (Cabinet Meeting (Yesterday)): Next year, I think it would be good to significantly expand it so that Lunar New Year and Chuseok combined total around 1 trillion won. We could use the Future Response Fund for this, right? It would also help alleviate polarization.]

Some government ministries are also coming forward with plans to utilize the Future Response Fund as a funding source for major projects.

[Government Ministry Official: (You mentioned earlier that the funding source for the OO plan would be the Future Response Fund.) That is the government-level plan.]

Local governments, which will receive less local-share tax than expected as money goes into the Future Response Fund, are pushing back.

[Park Chan-dae / Mayor of Incheon and President of the National Governors' Association (Yesterday): Stable financial resources must be secured for local governments to play their proper roles close to the residents.]

Ahead of the National Assembly's review of bills related to the fund, critics point out that the targets for support and the criteria for distribution must be clearly established.

(Video by Lee Jae-young | Video Editing by Lee So-young | Graphics by Kim Ye-ji)