Deputy Prime Minister and Minister of Economy and Finance Gu Yoon-Cheol, Minister of the Ministry of Planning and Budget Park Hong-Geun, and Financial Services Commission Chairman Lee Eo-Kwon appeared together on a YouTube channel to emphasize the ‘excess tax revenue reinvestment’ approach. The idea is that if semiconductor-driven excess tax receipts are invested in a second memory semiconductor, revenue would be increased and the domestic stock market would turn stronger. Some interpret this as leading economic ministers launching a public-opinion campaign to highlight the government vision ahead of the 6·3 local elections and the first anniversary of the Lee Jae Myung administration.

In an interview released on the 30th with the YouTube channel ‘Sampro TV’, Gu said, “It is crystal clear that more excess tax revenue will emerge,” adding, “With the income from memory semiconductors, we will develop items on par with a second and third memory semiconductor and make bold investments.” He said, “(With investment) if we create a virtuous cycle, more excess tax revenue will come in, and we will reinvest it (in advanced industries).”

He said, “To move toward an AI economy, following the brain (memory semiconductors) that stores data, sensors that play the role of ‘eyes’ are needed,” and he pointed to sensor semiconductors as a candidate item for concentrated investment.

Appearing on the same channel, Minister Park also said, “There is excess tax revenue, and when the water flows in like this, it is very important to invest properly,” adding, “The philosophy of our government is to make fiscal policy serve as the priming water for economic growth, and, when growth outcomes lead to tax revenue, to reinvest it and create a virtuous cycle.”

The ministers also pushed back actively against concerns surrounding government policy. In response to worries about a ‘bubble’ in the KOSPI (main board), which recently surpassed 8000 points, Gu said, “A bubble is a concern that arises when innovation is not pursued,” and expressed confidence, saying, “If the government presents a vision and content-driven efforts are made, the market will judge our stock market.”

Lee also said, “The KOSPI crossing 8000 is a process of opening the door to a new future,” and assessed that “the market has believed in and trusted, and has followed, the strong will and practice (to reform governance).”

Regarding concerns that expansionary fiscal policy will lead to too much national debt, both Gu and Park countered that they will invest in high-tech industries while cutting unnecessary spending, saying they can reduce the national debt ratio and the size of the deficit.

A government official said, “(On the 4th of next month) to mark one year of the Lee Jae Myung administration, ministers from each ministry appeared on influential YouTube channels as part of publicity efforts.” Sampro TV is an economic·stock YouTube channel with 2.96 million subscribers on which President Lee also appeared many times before being elected. With the 6·3 local elections approaching, some also interpret the move as ministers directly presenting the government vision to provide side support to ruling party candidates.