Skip to content
You can now search across every topic, entity and event.What's new
Ministry of Planning and Budget
AI-generated illustration
OrganisationKR

Ministry of Planning and Budget

South Korea's budget ministry, created in January 2026 under the Prime Minister's Office.

South Korea's Ministry of Planning and Budget, formed in January 2026, announced the Future Response Fund on 21 August 2026.

Last refreshed: 22 September 2026

Key Question

Which ministry now controls South Korea's chip-boom tax windfall?

Timeline for Ministry of Planning and Budget

#20 21 Aug

Announced a Future Response Fund to capture above-trend AI and semiconductor tax revenue

AI: Jobs, Power & Money: Seoul ring-fences its chip tax windfall
View full timeline →

Background

The Ministry of Planning and Budget is South Korea's budget ministry, sitting under the Prime Minister's Office. It was created in January 2026, when budget and finance functions split apart after running as one ministry for 18 years. On 21 August 2026 it announced the Future Response Fund, a state fund ring-fencing above-trend tax revenue from the semiconductor and AI boom. Analysts estimate the fund at 60 to 150 trillion won .

The fund names youth employment and home-buying support among its declared first-year spending priorities. Youth unemployment and housing costs have driven repeated government support schemes in South Korea over the past decade.

Investors previously tracked a single ministry for both fiscal and budget signals. They now follow two separate bodies, with tax policy and budget direction announced independently of each other.

Common Questions
What is South Korea's Ministry of Planning and Budget?
It is the ministry responsible for national fiscal management, covering budget formulation, execution and performance evaluation. It sits under the Prime Minister's Office rather than standing alone, which tightens central oversight of budgetary authority.Source: Korea Herald
When was South Korea's Ministry of Planning and Budget created?
It began work on 2 January 2026, when the Ministry of Economy and Finance was split after 18 years. The Ministry of Finance and Economy kept tax and macroeconomic policy; the new ministry took budget coordination and long-term strategy.Source: Korea Herald
Who is South Korea's budget minister?
Park Hong-geun. He announced the Future Response Fund at a press briefing at Government Complex Seoul on 21 August 2026, at the first meeting of the ministry's fiscal management strategy council.Source: Korea Times
Which ministry announced South Korea's Future Response Fund?
The Ministry of Planning and Budget, on 21 August 2026. The fund sets aside tax revenue running above its long-term trend during the semiconductor and AI boom, targeting youth support, new growth engines, regional development and education.Source: Korea Times
Source Material
Gov't to channel semiconductor tax windfall into Future FundSouth Korea's Finance Ministry splits after 18 years