South Korea’s parties face budget dilemma over 162 trillion won fund

South Korea’s National Assembly is reviewing next year’s budget, with the 162 trillion won Future Response Fund at the center of debate.

The ruling Democratic Party supports keeping the fund’s proposed size or increasing it, but some of its lawmakers say it may not reliably finance ongoing benefits.

The government plans to use it for child allowances and birth grants, which were previously paid from the general budget.

Lawmakers argue that regular payments need a more dependable funding source, because the fund relies on revenue that can fluctuate.

The opposition People Power Party calls for major cuts, yet some of its lawmakers want increases for projects in their constituencies, including research funding and fishing-vessel upgrades.

The party has told lawmakers to limit requests for increases, while some have proposed moving the projects to the general budget instead.

Budget negotiations will test whether either party can reconcile its public position with those local spending demands.