South Korea to Launch Fund for Future Growth Engines Using Chip Tax Revenue

SEOUL, July 5 (Yonhap) -- South Korea will launch a new fund dedicated to securing future growth engines using recent sharp gains in tax revenue from the country's chip industry, the presidential chief of staff said Sunday.

Presidential chief of staff Kang Hoon-sik made the remark during a senior-level meeting of the government and the ruling party, noting additional tax revenue generated by the booming semiconductor industry should not be wasted.

"By launching the fund with the extra tax revenue, we aim to make bold investments for the future, including supporting the three megaprojects, creating future growth engines, addressing K-shaped polarization, and supporting housing, startups and jobs for those in their 20s and 30s," Kang said.

During the meeting, Kang also called for all-out support for the three megaprojects initiative, unveiled by the government last week, which calls for large-scale investments in semiconductors, physical artificial intelligence (AI) and AI data centers.

Kang added that while the fund will serve as a cornerstone for making South Korea an irreplaceable player, the three megaprojects are designed to create new growth engines that will determine the country's future over the next 20 to 30 years.

"The three megaprojects mark the beginning of a new balanced national development paradigm based on cooperation between the private and public sectors," Kang said.

Prime Minister Han Seong-sook echoed the view, noting the project will help open a new era of growth for the country comparable to expressways and high-speed networks in the past.

"If the party, the government and the presidential office work as a single team, we can create fruitful results," Han said.

Rep. Han Byung-do, the acting head and floor leader of the Democratic Party, said the party and the government need to focus all efforts on the early realization of the megaprojects.

"We will offer necessary legislative and budgetary support through the task force dedicated to supporting the three megaprojects," Han said, describing them as a historic decision.