South Korea to set up fund from semiconductor tax windfall

The South Korean government plans to establish a new national investment fund using surplus tax revenue generated by the country's booming semiconductor industry, a senior official announced on Sunday, July 5. Presidential Chief of Staff Kang Hoonsik said the proposed "Future Response Fund" would channel the financial windfall into long-term strategic investments aimed at securing the nation's economic future.

The fund is intended to finance three major priorities: supporting new growth engines, addressing economic polarization, and expanding housing, startup, and employment support for people in their 20s and 30s. Kang emphasized that the additional tax revenue should not be spent carelessly, but instead used as investment resources for future generations. He described the fund as a cornerstone for realizing what the administration calls an "irreplaceable Korea."

This initiative is directly tied to three large-scale industrial "mega projects" unveiled by President Lee Jae Myung's administration, focusing on semiconductors, physical artificial intelligence, and data centers. These projects are backed by substantial public-private investment commitments announced on June 29,...