S. Korea to Launch ‘Future Fund’ with ‘Windfall Revenue’ Amid Chip Boom
South Korea will launch the "Future Fund" to promote long-term economic growth, utilizing what the government calls "windfall revenue" from increased tax collection driven by the recent artificial intelligence (AI) boom, according to the Ministry of Planning and Budget.
The ministry, in partnership with relevant government agencies, stated that the AI industry has sparked a significant transition across various sectors, 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 noted, as quoted by Yonhap news Agency. They emphasized the need to leverage this "fiscal capacity" as "valuable ammunition" for global technological competition.
Budget Minister Park Hong-geun highlighted the importance of proactive use of these resources for future growth rather than one-off expenditures or passive fiscal soundness.
The government will set aside the sharply increasing tax revenue to establish the Future Fund, using it as a strategic investment platform to raise the country’s potential growth rate and mitigate the effects of tax revenue volatility.
"Windfall revenue," defined by the budget ministry as tax revenue exceeding long-term trends due to structural economic changes or significant fluctuations like an industrial supercycle, will fund this initiative. Surplus revenue will be allocated for supplementary budgets, government debt repayment, or contributions to the Future Fund.
