South Korea to Launch New Fund for Future Growth Engines Fueled by Semiconductor Tax Gains

By Kang Yoon-seung

SEOUL, July 6 (Yonhap) -- The budget ministry said Monday it will seek to revise relevant laws to pave the way for the launch of a new fund dedicated to fostering future growth engines, building on recent additional tax gains from the booming semiconductor industry.

The Ministry of Planning and Budget unveiled the plan during a regular briefing, noting such extra tax gains should be spent on the "three megaprojects" initiative, along with efforts to create jobs for the youth and address economic disparity.

"We need to revise laws down the road. We aim to set detailed directions by gathering opinions from relevant ministries and the parliament," an official from the budget ministry said.

The official explained the government used the term "additional tax revenue," instead of describing it as "excess," which refers to gains exceeding the forecast for a single fiscal year.

On the previous day, presidential chief of staff Kang Hoon-sik said the government will push for the launch of the new fund, noting such additional tax revenue generated by the booming semiconductor industry should not be wasted.

Last week, the government unveiled the "three megaprojects" initiative, centered on large-scale investments in semiconductors, physical artificial intelligence (AI) and AI data centers, as the country bets big on those advanced industries for its future.