Korea will use AI windfall to set up growth fund

Korea will use AI windfall to set up growth fund

South Korea is setting up a "Future Response Fund" with the extra tax revenue from its booming semiconductor industry.

The fund will be used to finance major national investment projects, create new growth engines, and support younger generations.

It also aims to address widening economic polarization and strengthen the country's global standing.

The initiative was announced by Presidential Chief of Staff Kang Hoon-sik at a recent government-ruling party meeting.

Fund to support people in 20s, 30s

Kang emphasized that the "Future Response Fund" will play a key role in financing three "mega projects" planned by the government.

He said, "At this critical juncture that will determine South Korea's future, we must not squander additional tax revenue generated by the semiconductor boom and other factors."

The fund is also expected to provide housing, start-up and employment support for people in their 20s and 30s.