South Korea is defending its proposed Future Response Fund against criticism that it could become a government slush fund, saying all spending will remain subject to the National Finance Act, the National Assembly Act and parliamentary oversight. The fund would set aside tax revenue generated beyond expectations during the semiconductor boom, using it as a fiscal reserve and investment vehicle for youth, growth engines, regional development, and education and talent. Its size has not been formally disclosed: earlier estimates suggested it could exceed 100 trillion won, while a previous government projection said it could reach 200 trillion won if next year’s tax revenue exceeds 500 trillion won. The latest explanation put the fund at the level reported in the media. Officials said the fund could cover a general-account shortfall in a deficit and would be actively managed, with a target return above the roughly 3.8% yield on three-year government bonds. They argued that maintaining manageable debt while investing in projects with higher prospective returns is more prudent than using the entire semiconductor windfall to repay debt, particularly because tax revenue may weaken after two years.