South Korea to Invest Extra Tax Revenue in Future Tech, Youth, Regions, and Education

South Korean President Lee Jae-myung outlined a strategic investment plan for a projected surge in tax revenue, primarily driven by the global artificial intelligence boom and its impact on the semiconductor industry. He announced that the additional funds would be concentrated on four critical sectors: future technologies, youth development, regional development, and education.

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The additional tax revenue will be used as a strategic investment resource for responding to the future.

Speaking at the 2026 National Fiscal Strategy Meeting, President Lee emphasized that this "unprecedented additional tax revenue" is a valuable resource to be strategically deployed during a crucial period for global AI dominance. He stated that a new "Future Response Fund" will be created to enhance the nation's growth potential, with the benefits intended to be shared broadly among the populace.

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The additional tax revenue is a precious resource to be used during the golden time when global AI hegemony is decided.

The president specifically highlighted the need to support the semiconductor and AI sectors, including "physical AI" and AI data centers, ensuring that corporate timelines are met through comprehensive government support. This support will extend to securing stable electricity and water supplies, as well as developing transportation, logistics, housing, education, and healthcare infrastructure to establish new growth hubs for South Korea.

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We will create a new Future Response Fund, focusing investment on the four major areas that will determine the nation's future: the future, youth, regions, and education, thereby enhancing the economy's growth potential and sharing the fruits with all citizens.

This fiscal strategy meeting marked President Lee's first official engagement following his overseas trip. The discussions also touched upon the reform of local education grants, a topic where the Ministry of Economy and Finance and the Ministry of Education have held differing views. The plan to establish the Future Response Fund, with details on its scale and allocation, is expected to be finalized through special legislation.

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We will mobilize all government capabilities to provide focused support for semiconductor physical AI and AI data center investment fields so that they can proceed according to the companies' timelines.