(Seoul, Sejong = Yonhap News) Reporter Park Jae-ha and Song Jeong-eun = The government's plan to use the Future Response Fund, which uses additional tax revenue from the boom in the semiconductor industry as an investment resource for future generations, includes support for Korea Electric Power Corporation (KEPCO) [015760], People Power Party lawmaker Park Soo-young, a member of the National Assembly's Finance and Economic Planning Committee, announced on the 7th.
As a result of Rep. Park's analysis of the Ministry of Planning and Budget's future response fund operation plan for next year, the amount of government support related to KEPCO within the future response fund amounted to 46.6 trillion won, about 45% of the total financial resources.
30.9228 trillion won will be invested in the renewable energy underground support project, which has the largest total project cost. For the offshore wind power joint connection facility project, 1.5183 trillion won out of 2.169 trillion won will be supported by government funds. All of these projects were exempted from preliminary feasibility at the Cabinet meeting last August.
Representative Park announced that the total budget to be supported by KEPCO next year is KRW 940.5 billion, and the amount confirmed during the Lee Jae-myung administration's term is KRW 5.9 trillion.
We also support welfare and special benefits for electricity bills previously covered by KEPCO. The government will provide 197 billion won in welfare discounts on electricity bills, 131.3 billion won in air conditioning costs for elementary, middle and high schools across the country, and 13 billion won in electricity bills for salt farms and rice.
Rep. Park Soo-young pointed out, “They laid transmission lines underground and built substations and offshore wind power facilities using tens of trillions of won in taxpayers’ money, but they are exempt from pre-taping and there is not a single line of business feasibility analysis.” He added, “The idea is to pour hundreds of trillions of won in taxpayers’ money earned thanks to semiconductor companies only into mega projects such as in the Honam area.”
Next year's Future Response Fund operation plan also includes various cash support projects.
The rural basic income pilot project, which provides local love gift certificates of 150,000 won per month to residents of rural areas at risk of population extinction, has been proposed to be significantly increased from 331.8 billion won this year to 1.1657 trillion won next year, to be executed by the fund.
The Youth Culture and Arts Pass project, which provides points for viewing performances to young people under the age of 34, will also increase from KRW 36.1 billion this year to KRW 792.5 billion next year. Of the 89.7 billion won in support for regional relocation of administrative ministries, approximately 5.7 billion won will be invested in the cost of securing official residences for ministers and vice ministers.
The Ministry of Planning and Budget issued an explanatory document on this day and said, "The Future Response Fund has organized projects that fit the four major accounts of youth, growth engines, local regions, and education and talent, and is being operated through deliberation by the National Assembly like other budgets."
The Ministry of Planning explained that it included projects that comply with the NEXT principles (capital accumulation, bold investment, flexible execution, and urgency) and projects that contribute to spreading the fruits of growth. “As it is subject to National Assembly review through the same procedures as other accounting and funds, concerns that National Assembly oversight will be neutralized are also untrue.”
Regarding KEPCO-related projects, he said, "Policy support is inevitable when high-voltage transmission facilities are placed underground in order to quickly build a national transmission network," and added, "It is reasonable for the government to bear this as it is an additional cost to improve resident acceptance that has nothing to do with increasing KEPCO's profits."
In addition, the basic income for rural and fishing communities was described as "a project to spread the fruits of the growth of industries such as semiconductors to all regions and classes," and the youth culture and arts pass was explained as "a project for a virtuous cycle of the cultural industry by expanding opportunities for all young people to enjoy culture and new creative and performance opportunities for artists."
