DistantNews
Support us
South Korea to create fund from AI tax revenue to combat inequality
🇵🇾 Paraguay /Culture & Society

South Korea to create fund from AI tax revenue to combat inequality

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources New plan
  • South Korea plans to create a fund using additional tax revenue from the booming semiconductor and AI sectors.
  • The fund aims to invest in future growth and combat rising economic inequality, particularly affecting young people.
  • Details on the fund's specifics are still being outlined by the government and the ruling Democratic Party.

South Korea intends to establish a fund financed by increased tax revenues generated by the burgeoning artificial intelligence and semiconductor industries. This initiative aims to foster future growth and address the widening economic disparity, often referred to as the 'K-shaped' economy where different sectors and individuals experience vastly different growth rates.

We have the intention to create a fund with additional tax revenues to make bold investments in South Korea's future.

— Kang Hoon-sikSouth Korean chief of staff, announcing the plan for the new fund.

Kang Hoon-sik, the South Korean chief of staff, announced the plan, stating the government's intention to create a fund for "bold investments in South Korea's future." He emphasized that the fund would specifically target investments and provide support for entrepreneurs and employment opportunities for individuals in their 20s and 30s, aiming to mitigate the polarization exacerbated by the AI boom.

respond to the polarization of the economy "in the shape of K"

— Kang Hoon-sikDescribing the economic situation the fund aims to address.

While the government has outlined the fund's purpose, specific details remain scarce. The main spokesperson for the Democratic Party, Kang Jun-hyun, noted that the government had only "sketched out" the fund's objectives. This comes after recent government announcements of significant industrial projects in semiconductors, physical AI, and AI data centers, backed by substantial investments from major companies like Samsung Electronics and SK hynix, alongside government agencies.

support for entrepreneurs and employment for young people between 20 and 30 years old

— Kang Hoon-sikDetailing the intended beneficiaries of the fund.

The idea for this "future fund" emerged in May when Kim Yong-beom, head of the Presidential Policy Office, suggested distributing the fiscal benefits of the AI boom among citizens. This proposal sparked controversy, with accusations that it implied distributing corporate profits. President Lee Jae-myung has since denied these claims.

sketched out

— Kang Jun-hyunDescribing the government's current level of detail regarding the fund's purpose.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog