South Korea plans to channel additional tax revenue generated by its booming semiconductor industry into a new 'Future Response Fund' to finance major industrial projects and support younger generations, a top government official said on Sunday.

Presidential Chief of Staff Kang Hoon-sik told a meeting with the ruling party that the fund would help finance three 'mega projects' in semiconductors, physical AI, and AI data centers, according to Yonhap news agency. He stressed that the extra tax revenue from the semiconductor boom should not be 'squandered'.

Kang described the fund as a cornerstone of President Lee Jae-myung's goal to make South Korea globally 'irreplaceable'. The fund aims to address 'K-shaped' economic polarization by providing housing, startup, and employment support for people in their 20s and 30s.

Prime Minister Han Sung-sook noted that the project could open a new era of growth comparable to past expressways and high-speed digital networks. 'If the party, the government, and the presidential office work as a single team, we can create fruitful results,' she said.

The government says the projects, backed by planned investments worth hundreds of billions of dollars from Samsung Electronics, SK Hynix, and public agencies, are intended to strengthen South Korea's leadership in chipmaking and AI while promoting economic growth beyond the Seoul metropolitan area.

Source: www.dw.com