South Korea to Create Fund for Future Industries Using Semiconductor Tax Revenue

President Lee Jae Myung said Monday the government will create a future response fund using additional tax revenue expected from chipmakers' record earnings driven by the AI semiconductor boom. The announcement came during a meeting on state financial strategies at Cheong Wa Dae.

Lee said large-scale additional tax revenue will serve as strategic financial resources to prepare for the future, adding that how the country uses the revenue may determine its global leadership in the AI era.

The fund will invest in future industries, policies for young generations, regional development and education, Lee said. He described it as a strategic investment platform for bold and sustained investment that will help achieve a great leap forward with future generations. The government will mobilize all available resources to keep its three megaprojects initiative on schedule.

The initiative, announced earlier this month, includes large-scale investments in the semiconductor and AI industries and the establishment of a semiconductor manufacturing cluster in Gwangju. Lee pledged to strengthen the social safety net to protect young people entering the workforce and those whose jobs are affected by AI.

He said the direction of the financial strategy discussed Monday will determine the future of the people for the next 20 to 30 years.

Budget Minister Park Hong-keun attended the meeting.