South Korea intends to establish a "Future Fund" financed by additional tax revenues generated by the semiconductor industry boom, with the aim of funding new growth engines, supporting younger generations, and addressing widening economic inequality, a senior government official announced on Wednesday.
Chief Presidential Secretary Kang Hoon-sik said during a meeting between the government and the ruling Democratic Party that President Lee Jae-myung's administration would use the "Future Response Fund" to help finance major national investment projects and strengthen the country's long-term competitiveness.
"At this critical juncture that will determine South Korea's future, we must not squander the additional tax revenues generated by the semiconductor boom and other factors," he added.
He explained that the fund would support the three major national projects adopted by the government, contribute to creating new growth engines, and tackle what he described as "K-shaped economic polarisation," as well as provide support in the areas of housing, entrepreneurship, and employment for people in their twenties and thirties.
He described the proposed fund as a "fundamental pillar" for achieving President Lee's goal of making South Korea an "indispensable" country at the global level, calling for close cooperation between the government and the ruling party to accelerate implementation of the plan.
This step comes days after President Lee announced 3 major industrial projects focusing on semiconductors, physical artificial intelligence, and data centres.