Park Hong-geun, Minister of Planning and Budget, stated on July 18 that the government does not expect the semiconductor boom to end abruptly, addressing concerns about a peak-out. During a YouTube 'Kim Writer TV' interview, Park announced plans for large-scale fiscal investment in youth policies and projected 2026 national tax revenue to exceed 500 trillion won with total expenditure reaching '800 trillion won+α'. The minister emphasized youth issues as structural societal challenges requiring strategic investment across employment, housing, assets, and family formation.
Park Dismisses Semiconductor Peak-Out Concerns, Cites AI Infrastructure Demand
Park Hong-geun responded to questions about semiconductor peak-out signals by stating, "Looking at discussions among experts, companies, and internal government processes, we do not think (the semiconductor boom) will shut down abruptly." He explained the rationale: "We need to build an AI ecosystem, which requires semiconductors as the brain, physical AI such as robots as the body, and data centers as the warehouse of thought. Each country will have no choice but to prepare for this going forward."
Future Response Fund to Target Youth, Growth Drivers, Regions, and Talent
Regarding the Future Response Fund to be created with additional tax revenue from the semiconductor super-boom, Park stated the government will concentrate investment in youth, growth drivers, regions, and talent sectors. He particularly emphasized the intention to significantly increase fiscal investment in youth policies.
Government Plans Major Youth Policy Investment Across Employment and Housing
Park stated, "Youth issues are structural societal problems, and young people are generational disadvantaged groups. I firmly believe we must invest strategically for them." He continued, "The difficulties young people face—employment, housing, assets, marriage, childbirth, and childcare—are all complexly interconnected. We plan to invest heavily in customized policy design for youth."
2026 Total Expenditure to Reach '800 Trillion Won+α' with 10%+ Growth Rate
Regarding the fiscal situation for next year, Park reiterated that national tax revenue will exceed 500 trillion won. He stated, "This year's main budget is 728 trillion won, and next year's total expenditure will be '800 trillion won+α'. We plan to set next year's total expenditure growth rate at '10%+α', expanding it to a record high level." He added, "After concentrating investment this year and next year, we will manage the expenditure growth rate stably thereafter."
Supplementary Budget Raised Growth by 0.2-0.3%p, Lowered Inflation by 0.7%p
Regarding the effectiveness of the supplementary budget organized in response to the Middle East war, Park stated, "It had the effect of raising the growth rate by 0.2 to 0.3 percentage points. Looking at the average consumer price inflation from March to June, it had the effect of easing (the inflation rate) by 0.7 percentage points." He added, "We are forecasting this year's growth rate at 3%, and (the supplementary budget) became the foundation for that. Policies such as the oil maximum price system and the Everyone Card for public transportation users are receiving good evaluations in the field."
Regarding the government's forecast of a 12.3% nominal growth rate this year, Park mentioned, "There are also forecasts that it could rise further."
Park Projects Korea Can Reach Global 'Top 3' if Current Crisis Overcome
Park stated, "Our country's potential is limitless, but sometimes politics blocks that energy from being properly released, and sometimes administration fails to create the foundation. If we properly break through the current crisis and opportunity, we can reach global 'top 7, 5, or 3', not just 'top 10'."
FAQ
What did Park Hong-geun say about semiconductor peak-out concerns on July 18?
Park Hong-geun stated the government does not think the semiconductor boom will shut down abruptly, citing ongoing AI infrastructure demand including semiconductors, physical AI robots, and data centers that each country must prepare for.
What are the four priority areas for the Future Response Fund investment?
Park announced the Future Response Fund will concentrate investment in youth, growth drivers, regions, and talent sectors, with particular emphasis on significantly increasing fiscal investment in youth policies covering employment, housing, assets, marriage, childbirth, and childcare.
