Government Fails to Reach Public Fund Redemption Target

Due to the anticipation of a possible shortage of tax revenues stemming from the current economic recession, the government has reportedly failed to reach its redemption target for this year’s government-created fund.

According to a report presented to the National Assembly’s Finance and Economy Committee by The Public Fund Oversight Committee on Monday, the government was supposed to donate 2.1 trillion won out of this year’s budget to a redemption fund for the public, but ended up offering only 250 billion won.

This is because lower tax revenues and extended financial expenses have kept Seoul from repaying debts.

The government estimated that among the total amount of the public fund that it had spent restructuring financial circles 69 trillion won became unredeemable. Therefore, it decided to cover 49 trillion won and financial circles would pay the remaining 20 trillion won. The government’s share will be two trillion won per year spread out over the next 25 years, which started last year.

However, the financial situation has made providing money to the redemption fund difficult in its second year. The government plans to contribute the amount it is contributing this year on a yearly basis, considering its weak financial situation.

Jong sik Kong kong@donga.com