Gov't to channel semiconductor tax windfall into Future Fund
The government is set to establish the “Future Fund,” channeling additional and excess tax revenue generated by the semiconductor boom into long-term investments aimed at strengthening the economy, officials said Friday. The fund, estimated to reach at least 100 trillion won ($72.3 billion), will target four priority areas — supporting young people, developing new growth engines, promoting…
The government plans to create the "Future Fund" to utilize windfall tax revenue from the semiconductor industry, officials announced on Friday. This fund is projected to accumulate at least 100 trillion won ($72.3 billion) and will focus on four key areas: assisting young individuals, fostering new growth industries, encouraging regional development, and advancing education and talent cultivation.
This initiative will also overhaul the government's funding allocation methods for education and local authorities. Currently, both local education grants and local government grants have been contingent upon national tax revenue. However, under the new system, funds will initially be allocated to the Future Fund, with subsequent grants calculated using revised formulas.
As Budget Minister Park Hong-geun explained during a press conference attended by Education Minister Choi Kyo-, "The fund aims to support strategic investments to enhance Korea's growth potential while stabilizing public finances amidst tax revenue fluctuations."
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- Gov't to channel semiconductor tax windfall into Future Fund koreatimes.co.kr
