AI, new growth engines, youth welfare, regions to receive big boost
The government plans to channel fiscal resources into artificial intelligence (AI), future industries, youth support and regional development by leveraging increased tax revenue from the semiconductor boom, government and ruling party officials said Tuesday. The plan comes as next year’s budget is expected to increase by more than 10 percent from this year’s 729.9 trillion won ($527 billion),…
The Korean government is set to invest fiscal resources in artificial intelligence (AI), emerging industries, youth welfare, and regional development, officials revealed on Tuesday. This strategy stems from the anticipated surge in tax revenue due to the semiconductor boom, with the government projecting the budget for next year to rise by more than 10% from this year's 729.9 trillion won ($527 billion), potentially exceeding 800 trillion won for the first time.
Instead of allocating the newfound revenue to quick-fix programs, the government and ruling party aim to reinvest it in long-term growth. Rep. Kwon Chil-seung, the Democratic Party of Korea's (DPK) policy chief, confirmed during recent budget consultations that both parties have agreed on the need for the government to play an active fiscal role in driving Korea's structural transformation. "We will boldly streamline nonessential expenditures to concentrate resources on strategic, high-growth areas," Kwon stated.
According to Rep. Jung Tae-ho, the DPK's representative on the National Assembly's Special Committee on Budget and Accounts, the government plans to prioritize AI development, future industries, youth support, and regional advancement as the primary recipients of these substantial funds.
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- AI, new growth engines, youth welfare, regions to receive big boost koreatimes.co.kr