Minister Park Hong-keun hosts fiscal policy roundtable with academics and researchers; experts call for future-oriented spending over short-term stimulus, propose fund mechanism to accumulate reserves

Minister of Planning and Budget Park Hong-keun [Ministry of Planning and Budget]
Minister of Planning and Budget Park Hong-keun [Ministry of Planning and Budget]

Fiscal experts are calling on the government to channel record-high tax revenues expected this year and next into future growth engines — particularly AI and semiconductors — rather than short-term economic stimulus. They also proposed setting aside a portion of the windfall through dedicated funds to build reserves for future investment.

Minister of Planning and Budget Park Hong-keun convened a roundtable Monday with fiscal experts from academia, research institutions and civil society to discuss the direction of fiscal management. Attendees included Kim Se-jik, president of the Korea Development Institute; Kwon Nam-hoon, president of the Korea Institute for Industrial Economics and Trade; Woo Seok-jin, a professor at Myongji University; Lee Woo-jin, a professor at Korea University; Ko Sun, a professor at Chung-Ang University; Son Byung-ho, an adjunct professor at Yonsei University; and Lee Sang-min, a senior research fellow at the Narasallim Research Institute.

Park said the Korean economy is maintaining a solid trajectory but that uncertainty in fiscal management is growing, citing questions over the sustainability of the semiconductor cycle, future tax revenue trends, and potential fluctuations in prices and interest rates. He asked participants for their views on how best to deploy the record revenues, the role of fiscal policy in addressing what he called five major structural challenges — industrial transformation, population decline, polarization, regional depopulation and climate change — and ways to ensure long-term fiscal sustainability.

The experts agreed that anticipated tax revenues for this year and next should be actively directed toward investment aimed at raising the country's potential growth rate. They said bold fiscal spending on AI research and development and semiconductor infrastructure expansion is particularly needed to keep pace with the broader AI transformation.

Participants also suggested that the government should not simply spend the additional revenues on immediate expenditure increases, but instead explore mechanisms — such as dedicated funds — to store and manage the money so it can be deployed for future economic stabilization and investment.

On the five structural challenges, the experts said policy measures are needed to prevent the gains from economic growth from widening income gaps and deepening polarization.

They also called for proactive government action to prepare for potential job losses and growing income and asset inequality driven by AI innovation, as well as greater investment in energy infrastructure to address the climate crisis and reduce energy costs.

On fiscal reform, participants said the government should aggressively restructure low-performing projects and redirect the savings to priority areas. They also called for reforms to address the rigid growth structure of mandatory spending, not just discretionary outlays.

Park said the ideas raised at the meeting would be "actively reflected" in the 2027 budget proposal and the medium-term national fiscal management plan.


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