The ruling Democratic Party and the government on Tuesday stressed the need for the active role of fiscal policy and investment in future industries to support the country's economic growth.
"Above all, we should focus our fiscal capacity on securing leadership in future industries," DP floor leader Han Byung-do said during a consultative meeting between party and government officials on next year's budget.
He urged the government to set priorities on where and how to allocate the budget, emphasizing the need to strategically invest in areas supporting the youth, region-led growth and future industries.
Echoing Han's call to boost future industries, Rep. Kwon Chil-seung, the DP's chief policymaker, called for strategic investments in artificial intelligence (AI) to help South Korea become one of the world's top three AI powerhouses.
"The 2027 budget should play an active fiscal role, not only in supporting the country's growth but also its transformation," Kwon said, noting that investment should also be made in key sectors, such as bio, culture, defense and energy.
On the government's fiscal strategy, Budget Minister Park Hong-geun said the government will focus on supporting the country's economic growth through active fiscal management to create an "irreplaceable South Korea."
Park said the government will use the so-called "future response fund" to put increased tax revenue from the semiconductor boom toward strategic investment rather than short-term spending.
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 and use the additional tax revenue expected from the ongoing semiconductor boom to create the future response fund to invest in future industries, policies for young generations and regional development. (Yonhap)