NEW DELHI, Aug. 21: South Korea is planning to establish a new “Future Response Fund” using additional tax revenue generated by its rapidly expanding semiconductor industry, with artificial intelligence identified as a key area for future investment.
The initiative, announced by the country’s budget ministry, is aimed at directing surplus government revenue towards emerging industries while also addressing challenges faced by younger people, including employment and housing.
The fund is expected to support projects related to AI, regional development, talent creation and advanced technology. Although the government has not yet announced its final size, media estimates suggest it could exceed 100 trillion won ($72.28 billion).
South Korea’s semiconductor sector has benefited significantly from rising global demand for AI-related hardware. Major chipmakers such as Samsung Electronics and SK Hynix have experienced strong growth as technology companies increase spending on advanced computing infrastructure.
Officials said the proposed fund would also finance programmes focused on youth employment, housing, asset building and regional opportunities. The government plans to submit legislative proposals connected with the initiative alongside its 2027 budget proposal.
The move highlights Seoul’s broader effort to turn the semiconductor boom into long-term economic growth while strengthening its position in artificial intelligence and other emerging technologies.
