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The ruling bloc held its first high-level party-government meeting of the second half of the National Assembly session, discussing ways to use surplus tax revenue from semiconductors and support measures for three mega-projects, including a semiconductor cluster in the southwestern region. The party and government agreed to establish a "Future Response Fund" financed by surplus tax revenue expected from the semiconductor industry boom, and to complete legislative tasks—such as the Framework Act on Water Management and the Mega Special Zone Act—by the second half of this year to build infrastructure including water and power needed for the operation of the Gwangju semiconductor cluster and to improve living conditions.
Ruling bloc leaders, including newly appointed Prime Minister Han Seong-sook, Floor Leader Han Byung-do, and Presidential Chief of Staff Kang Hoon-sik, announced this at a high-level party-government meeting held at the Prime Minister's official residence in Seoul on the 5th.
The establishment of the Future Response Fund is a solution devised by the party, government, and presidential office to secure funding to support the mega-projects. In his opening remarks just before the meeting, Presidential Chief of Staff Kang Hoon-sik emphasized the need to establish the fund, saying, "In this critical period that will determine the future, we must not waste the surplus tax revenue generated by the semiconductor boom." He added, "We intend to create a fund from the surplus tax revenue and invest it in creating future growth engines, including the three mega-projects, and in supporting housing and jobs for young people." Earlier, President Lee Jae-myung expressed his views on using surplus tax revenue at his first-anniversary press conference, saying, "We must invest in a direction that benefits future generations and enhances Korea's growth potential." Immediately after the meeting, Democratic Party Chief Spokesperson Kang Jun-hyun said, "The party, government, and presidential office discussed pursuing the establishment of a Future Response Fund and agreed with the government's position to use the additional tax revenue for future generations, Korea's growth engines, and addressing polarization."
The party and government also discussed key agenda items including the Framework Act on Water Management and amendments to the Industrial Sites Act, which support the building of infrastructure such as water and power needed to operate the three mega-projects.
The Framework Act on Water Management imposes an obligation on the national and local governments to review necessary matters so that they can stably supply water to national strategic advanced industries. Democratic Party Policy Committee Chair Han Jeong-ae proposed such an amendment to the Framework Act on Water Management last month. Spokesperson Kang said, "We decided to establish a multi-water-source system for the stable supply of water," and added, "We also agreed to preemptively expand power infrastructure to meet large-scale power demand from semiconductor plants and artificial intelligence (AI) data centers."
The party and government also decided to pursue an amendment to the Industrial Sites and Development Act for the swift development of industrial complexes such as semiconductor clusters. An official at the Ministry of Land, Infrastructure and Transport said, "The key is shortening the licensing and permit period," adding, "We are examining ways to integrate various licensing and permit procedures through the amendment of the Industrial Sites Act."
The party and government also decided to enact the Mega Special Zone Act and a special act on the development and growth support of metropolitan areas during the second half of the National Assembly session. The two bills will include measures to improve living conditions and various forms of support, such as housing supply for employees of resident companies and floor-area-ratio exceptions for companies relocating their headquarters. Spokesperson Kang explained, "We will create a business-oriented advanced city in the southwestern region that integrates living conditions, so that companies' semiconductor investment plans in the southwestern region can lead to regional growth."
The party and government also reviewed measures on prices and summer safety measures for heat waves and heavy rain. Floor Leader Han said, "Macroeconomic indicators are said to be at record highs day after day, but we should not become complacent, and the results must reach every corner," adding, "The government should strengthen price monitoring and implement tailored measures." Prime Minister Han said, "As the full-fledged rainy season and heat waves begin, we will thoroughly review safety measures centered on vulnerable areas and vulnerable groups."
In addition, the meeting discussed ways to revise the filibuster (unlimited debate) and fast-track (expedited processing of agenda items) systems to prevent excessive obstruction by the opposition party.
