[Exclusive] Presidential Office Will Not Use 'Slush Fund' Special Activity Budget This Year

No Special Activity Funds for the Presidential Office in the Second Supplementary Budget Proposal

The Office of the President has decided not to use special activity funds this year. Last year, the special activity budget for the presidential office was completely eliminated, led by the then-opposition Democratic Party of Korea. There had been speculation that the special activity funds would be restored after President Lee Jaemyung's election, but it is reported that the related budget was not included in the second supplementary budget proposal, as it was deemed inconsistent with the goal of "reviving people's livelihoods."

According to Asia Economy's coverage on June 17, the presidential office plans to carry out its duties this year without any special activity funds. Special activity funds are budget allocations used for confidential or special government activities. In many cases, bonuses for employees or cash gifts are also paid from these funds. Unlike other budgets, receipts are not required, which has led to criticism that these funds serve as a discretionary slush fund.

Yonhap News Agency

Currently, the presidential office's special activity fund stands at "zero won." Last year, the Democratic Party, which was then the opposition, unilaterally passed an unprecedented budget cut, eliminating the entire 8.251 billion won in special activity funds allocated to the presidential office. The National Assembly had demanded that the Office of the President and the National Security Office provide explanations for their use of these funds, but since this request was not accepted, the stated reason for the cut was the inability to ensure transparency in budget execution.

At the time, the People Power Party criticized the move as a politically motivated budget cut. In response, President Lee, then the leader of the Democratic Party, dismissed the criticism in December last year, stating, "We have cut special activity funds whose use was unknown," and added, "Claiming that this makes it impossible to run the office is, to be honest, a rather bewildering argument."

There had been speculation that the special activity funds for the presidential office would be revived with the change in administration. This was because, in the first supplementary budget on May 1, the related budgets for the prosecution and the Board of Audit and Inspection?which, like the presidential office, had been completely cut?were proactively restored. At the time, Park Chandae, floor leader of the Democratic Party, explained, "The restoration of the reduced special activity funds was based on the premise that, unlike before, sufficient documentation and evidence would be provided and submitted."

However, in the case of the presidential office's special activity funds, it is expected that they will not be separately included in the second supplementary budget proposal to be submitted to the Cabinet meeting on June 19. A government official revealed, "There was a judgment that special activity funds do not align with the policy direction of reviving people's livelihoods and stimulating the economy."