South Korea to Turn Semiconductor Tax Windfall Into Up to 70 Trillion Won Future Fund

South Korea is planning to establish a new "Future Response Fund" to utilize the tax revenue generated from the semiconductor sector as a strategic investment platform. Minister of Planning and Budget Park Hong-keun chaired a meeting to finalize the plan, which will be financed by transfers from the general account when tax revenue exceeds its average annual growth rate over the past 10 years.

The fund will focus on supporting young people, securing future growth engines, and addressing challenges such as employment, housing, and childcare. It will also invest in seven SEED programs, including AI, SMRs, nuclear fusion, and advanced biotechnology, as well as improve living conditions in regional areas and develop top-tier talent.

The Ministry of Budget and Planning will oversee the fund, while relevant ministries will use its resources to directly carry out projects. The creation of the fund coincides with a major overhaul of the formula used to allocate education subsidies, which will now factor in economic growth and changes in the school-age population.

Brief written by urgent.news from BusinessKorea's own syndicated text. Machine-written — may contain errors; check the original before relying on it.