South Korea plans to use chip tax revenue to establish a fund to boost future industries.

The South Korean government plans to use the extra tax revenue from the semiconductor industry boom to establish a "Future Response Fund" to invest in new growth engines, support the younger generation, and address widening economic inequality.

Reuters reported that Kang Hoon-sik, chief of staff to the South Korean president, said at a meeting between the government and the ruling Democratic Party on Sunday (July 5) that the Lee Jae-myung administration will use this fund to provide financial support for major national investment projects and enhance South Korea's long-term competitiveness.

Kang Hoon-sik stated that the fund will support the government's three major "mega-projects," creating new growth momentum, addressing the so-called "K-shaped" economic divergence, and providing housing, entrepreneurship, and employment support for young people in their 20s and 30s. He described the fund as a cornerstone for achieving Lee Jae-myung's goal of making South Korea "irreplaceable" in global competition and called on the government to work closely with the ruling party to accelerate its implementation.

Just days ago, Lee Jae-myung announced three major industrial projects, focusing on semiconductors, AI physics, and data centers. Samsung Electronics, SK Hynix, and South Korean government agencies plan to invest hundreds of billions of dollars to support these projects. This strategy aims to solidify South Korea's leading position in the chip and AI-related industries while promoting development in areas outside the Seoul metropolitan area.

Source: [Lianhe Zaobao] (https://www.zaobao.com/news/world/story20260705-9316579)