Korea to launch 'future fund' with 'windfall revenue' amid chip boom
Korea will launch the "Future Fund" to promote long-term economic growth, using what the government calls "windfall revenue" from increased tax collection driven by the recent artificial intelligence (AI) boom, the budget ministry said Friday. The Ministry of Planning and Budget unveiled the plan in partnership with relevant government agencies, saying the AI industry has sparked a major…
Korea plans to establish the Future Fund to foster long-term economic growth, utilizing what the government terms as windfall revenue, according to the budget ministry. The ministry disclosed the proposal on Friday in collaboration with other government entities, emphasizing that the AI industry has triggered a significant transformation across multiple sectors, extending beyond being merely a technological revolution.
The AI sector's expansion has led to a substantial surge in global chip demand, which is anticipated to significantly boost domestic tax revenue, the budget ministry revealed. This surge in revenue is primarily attributed to a rise in corporate tax income, the ministry explained. The government has adopted the term 'windfall revenue' to describe tax income surpassing its long-term average due to structural economic changes or substantial economic shifts, such as an industrial supercycle.
The concept of windfall revenue differs from conventional tax revenues, as it is directly linked to extraordinary economic events or structural shifts. The government expressed its intention to leverage this financial capacity to maintain a competitive edge in the global race for technological dominance.
Written by urgent.news from The Korea Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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