South Korea to create 'Future Response Fund' using semiconductor tax revenue

South Korea's ruling party, the government, and the presidential office are planning to establish a "Future Response Fund" to invest in the nation's future. This initiative aims to channel additional tax revenue, generated from the current boom in the semiconductor industry, into strategic investments.

During a high-level meeting, Kang Hoon-sik, the Senior Secretary to the President for Political Affairs, announced the plan. He stated that the fund would be used for "bold investments in Korea's future," including supporting three major "mega-projects," fostering future growth engines, addressing the "K-shaped" economic polarization, and providing support for housing, startups, and jobs for young people in their 20s and 30s.

The ruling Democratic Party's acting leader and floor leader, Han Byung-do, expressed agreement with the government's proposal to use the additional tax revenue for future generations, growth engines, and polarization countermeasures. He affirmed that the party, government, and presidential office would cooperate closely on this matter.

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The Lee Jae-myung government intends to pursue the establishment of a Future Response Fund to utilize additional tax revenue as investment resources for future generations.

Furthermore, the meeting focused on concentrating national capabilities on the "three mega-projects." The party pledged full support to ensure no disruptions in the construction of semiconductor factories and AI data centers, including providing assistance with electricity, land, and permits. To facilitate this, the party plans to launch a task force dedicated to supporting these mega-projects.

Additionally, the parties agreed to select key legislation for the third quarter and expedite the legislative process for bills with no inter-agency disagreements, ensuring timely enactment. This collaborative effort aims to leverage the semiconductor industry's success for broader national development and support.

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We agreed with the government's position to use additional tax revenue for future generations, Korea's growth engines, and countermeasures against polarization. The party, government, and presidential office will cooperate closely.