South Korea to Fund AI and Youth Housing with Chip Revenue

South Korea plans to establish a "Future Response Fund" that will use additional tax revenue from the semiconductor industry. Kang Hoon-sik, Presidential Chief of Staff, announced the plan on Sunday at a meeting between the government and the ruling Democratic Party.

President Lee Jae Myung's administration intends to use the fund to finance strategic national investments, support younger generations and address deepening economic inequality. Kang said the country must not squander the extraordinary financial gains generated by the current technology boom at this critical juncture.

The fund will support three government "mega projects" designed to create new drivers of the economy and help ease market polarization. Money will also go toward housing, startups and employment support for people of working age, defined as those between 20 and 30 years old.

The initiative builds on the government's strategy for developing semiconductors, artificial intelligence and data centers, an effort in which companies such as Samsung Electronics and SK Hynix plan to invest hundreds of billions of dollars.

Prime Minister Han Sung-sook described the plans as a comprehensive 30-year strategy aimed at maintaining South Korea's global leadership while stimulating economic growth outside the overpopulated Seoul metropolitan area.

(Reuters, Max)