South Korea's Budget Minister Reveals Future Response Fund Investment Strategy, 2026 Budget to Reach 800 Trillion Won

According to Budget and Planning Minister Park Hong-geun on August 5, South Korea will invest its Future Response Fund in bonds and stocks through asset managers to generate returns exceeding benchmark interest rates, using the fund as a stabilization mechanism when tax revenues decline or supplementary budgets are needed.

In an interview with SBS, Park outlined that the government will strategically deploy the fund toward youth development, economic growth engines, local regions, and education to boost potential growth rates. Next year's budget is expected to reach 800 trillion won or more, with revenue projected to exceed 500 trillion won. Park stated total spending growth will surpass 10 percent, the level seen during the 2008 global financial crisis. The exact fund size will be announced after September tax revenue recalculation and next year's revenue forecast are finalized.