South Korea to establish 'Future Response Fund' with semiconductor tax revenue for AI, youth investment | Dong-A Ilbo (KR) | 01M0HNCQ9WZVX27CFSJ14VWAD1

South Korea is set to create a 'Future Response Fund' to strategically invest additional tax revenue generated by a booming semiconductor industry. This fund aims to support advanced industries and youth initiatives. The government also plans to overhaul local education funding, moving away from the automatic allocation of local education grants based on national tax revenue. Surplus funds from this reform will be redirected to early childhood and lifelong education programs. The envisioned fund is expected to reach between 100 trillion and 150 trillion won. The Ministry of Economy and Finance announced these plans, emphasizing the need for a financial reserve to be utilized during times of scarcity. The fund is intended to serve as a strategic investment platform to boost potential growth and a fiscal stabilization mechanism to mitigate revenue volatility. Officials anticipate that next year's national tax revenue will exceed 500 trillion won due to the semiconductor super-cycle.

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We need to prepare a fiscal pantry that can be stored when there is a surplus and used when there is a shortage.