South Korean Future Response Fund faces scrutiny over budget allocations

South Korean lawmaker Park Soo-young has raised concerns regarding the management of the Future Response Fund, alleging that the Ministry of Economy and Finance is failing in its role as a fiscal watchdog. An analysis of 131 expenditure projects revealed that 125 of them—approximately 95%—either maintained their original requested amounts or received increases. Only six projects saw budget reductions.

Significant portions of the budget were allocated to programs such as the Child Basic Allowance, Local Future Growth Support, and Rural Basic Income. A major point of contention involves approximately 400 billion won allocated to semiconductor-related projects in the Honam region. Critics argue these funds were assigned without completed business plans, feasibility studies, or sufficient consultation with local governments and residents, particularly regarding water supply projects that may lead to the flooding of residential areas.

While the opposition criticizes the fund as a tool for unchecked spending, the government maintains that the fund is a necessary strategic investment tool to address structural shifts in AI, semiconductors, and regional development that the existing budget framework cannot adequately support.