**”Tariff Response and AI Budget Plans Lack Clarity…Populist Budgets Should Be Cut”**
On the 5th, during a public hearing at the Special Committee on Budget and Accounts held in the National Assembly in Yeouido, Seoul, Professor Kim Dae-jong from the business department of Sejong University delivered a speech.
In response to the Democratic Party re-allocating special activity funds for the presidential office, which had previously been cut entirely, members of the People Power Party on the committee criticized it as a “hypocritical budget,” necessary now that they are in power, on the 6th.
The committee members of the People Power Party held a press conference stating, “Just a year ago, the Democratic Party claimed the government wouldn’t be paralyzed without the presidential office’s special activity budget and cut it entirely, but they have now quietly resurrected it with 8.2 billion won.” They criticized it as a typical hypocritical budget allocation that should be cut.
They further stated that the reserve fund, which was reduced to 2.4 trillion won last year, has been significantly increased to 4.2 trillion won. They called for cuts, describing it as a typical hypocritical budget. Additionally, they noted that 800 million won was allocated for scholarly research under unclear plans for a pro-IJMyung Lee organization and support for cooperatives was increased to 1.6 billion won, calling it a budget that needs reduction.
The committee also highlighted opaque policy finance expansion under the pretext of “tariff response” and described a 19 trillion won budget allocation for policy finance institutions such as the Industrial Bank, without clear operation plans or performance evaluation systems, calling it a “blind” budget.
Furthermore, they criticized the rapid commercialization support project for AI applications, exempting it from preliminary feasibility study, as an opaque, rushed AI budget initiative. They mocked the state of affairs where attaching “AI” to a project is rumored to guarantee funding.
The committee members vowed thorough scrutiny of budgets like the 1.2 trillion won for local currency schemes and the 1 trillion won National Growth Fund budget, which aim to use even national pension funds. They argued that populist or harmful project budgets should not be allowed.
Moreover, they criticized the next year’s budget, which they described as focused solely on popularity-driven increases, for turning hope into despair and economic logic into political logic. They warned that such fiscal management would likely result in “deteriorating fiscal soundness” or an “economic crisis” within 2 to 3 years.
They pledged to ensure that the budget, even with the deadline for processing by the legal deadline of the 2nd next month, is handled by bipartisan agreement and that their strict examination will allow the savings to enhance projects that improve the lives of the disadvantaged and the public.
Previously, on September 23rd, the presidential office revealed the allocation of special activity, operational promotion, and specific operation expenses executed since the inauguration of the Lee Jae-myung government. The usage of these funds reflects the office’s efforts in personnel verification and foreign and security networking activities.
The newly launched government organized its cabinet and prepared vital diplomatic schedules, like the Korea-US tariff negotiations without a transition committee, which is evident in the usage of special activity funds over the three months.