Gov't, ruling party agree to strategically reinvest fund into youth, regional development

The ruling Democratic Party of Korea (DPK) and the government agreed Tuesday to use additional tax revenue to invest in young generations and regional development under next year's budget plan.

The two sides reached the agreement during a high-level consultative meeting on the 2027 budget at the National Assembly, saying the government expects a sharp increase in tax revenue thanks to record earnings by semiconductor companies.

"We are expecting an unprecedented increase in tax revenue on the back of the prolonged semiconductor boom," Park Hong-keun, minister of planning and budget, said.

"We will create a future response fund to reinvest in young generations, new growth engines, regional development and education." Park vowed to provide active support for the government's recently announced the "three megaprojects" initiative envisioning large-scale investments in semiconductors, physical artificial intelligence (AI) and AI data centers.

President Lee Jae Myung earlier announced that the government will draw up a record-high budget of around 800 trillion won ($540 billion) for next year ...