Korea will launch the Future Fund to promote long-term growth using windfall revenue from higher tax collection driven by the AI and chip boom, the budget ministry said Friday. The fund will finance strategic investments in youth, regional economies, education, AI-related megaprojects and seven future-oriented sectors. The ministry also proposed overhauling the education grant formula to reflect the shrinking student population, with the plan to go to Cabinet on Sept. 1 and the National Assembly on Sept. 3.
Budget Minister Park Hong-keun speaks during a conference at the National Assembly in Seoul, Thursday. Yonhap
Korea will launch the "Future Fund" to promote long-term economic growth, using what the government calls "windfall revenue" from increased tax collection driven by the recent artificial intelligence (AI) boom, the budget ministry said Friday.
The Ministry of Planning and Budget unveiled the plan in partnership with relevant government agencies, saying the AI industry has sparked a major transition across various areas, from the economy to social systems, beyond just a technological revolution.
"Amid the global chip boom, domestic tax revenue is expected to rise sharply, driven by an increase in corporate tax revenue," the budget ministry said.
