Korea will use AI windfall to set up growth fund
What's the story
South Korea is setting up a "Future Response Fund" with the extra tax revenue from its booming semiconductor industry. The fund will be used to finance major national investment projects, create new growth engines, and support younger generations. It also aims to address widening economic polarization and strengthen the country's global standing. The initiative was announced by Presidential Chief of Staff Kang Hoon-sik at a recent government-ruling party meeting.
Fund details
Fund to support people in 20s, 30s
Kang emphasized that the "Future Response Fund" will play a key role in financing three "mega projects" planned by the government. He said, "At this critical juncture that will determine South Korea's future, we must not squander additional tax revenue generated by the semiconductor boom and other factors." The fund is also expected to provide housing, start-up and employment support for people in their 20s and 30s.
Strategic vision
Kang calls for close cooperation between government, ruling party
Kang described the proposed fund as "a cornerstone" for achieving President Lee Jae Myung's vision of making South Korea globally "irreplaceable." He stressed the need for close cooperation between the government and ruling party to expedite this initiative. The announcement comes days after Lee unveiled three large-scale industrial projects across South Korea, focusing on semiconductors, physical AI, and data centers.
Corporate support
Projects backed by investments from Samsung, SK Hynix
The three major industrial projects announced by President Lee are backed by hundreds of billions of dollars in planned investments from tech giants Samsung Electronics and SK Hynix, as well as government agencies. The strategy is aimed at bolstering South Korea's leadership in chip and AI-related industries while promoting growth beyond the Seoul metropolitan area. Prime Minister Han Sung-sook said these projects could become a new growth engine if all stakeholders work together.