South Korea to Create Fund from Semiconductor Tax Revenue for Three Megaprojects

South Korea will launch a new fund financed by additional tax revenue from its semiconductor industry to support three megaprojects in chips, physical artificial intelligence and AI data centers, presidential chief of staff Kang Hoon-sik said on July 5.

Kang made the announcement at a senior-level meeting of the government and the ruling Democratic Party in Seoul. He said the extra revenue should be directed toward bold future investments rather than being wasted.

"By launching the fund with the extra tax revenue, we aim to make bold investments for the future, including supporting the three megaprojects, creating future growth engines, addressing K-shaped polarization, and supporting housing, startups and jobs for those in their 20s and 30s," Kang said.

The three megaprojects were unveiled by the government the previous week. They call for large-scale investments in semiconductors, physical AI and AI data centers.

Prime Minister Han Seong-sook said the projects would open a new era of growth comparable to past expressways and high-speed networks. "If the party, the government and the presidential office work as a single team, we can create fruitful results," she said. Rep.

Han Byung-do, acting head and floor leader of the Democratic Party, called the projects a historic decision and said the party would provide legislative and budgetary support through a dedicated task force. In a statement after the meeting, the party said it shared the government's view on using the tax revenue for future generations and new growth engines. Rep.

Kang Jun-hyeon, senior spokesperson of the party, said specific plans, a detailed road map and agenda for the fund would be discussed later by the party, government and presidential office.