Seoul: President Lee Jae Myung announced on Monday that the South Korean government plans to establish a "future response fund" using the additional tax revenue anticipated from the ongoing semiconductor boom. This initiative is aimed at investing in future industries and implementing policies that benefit younger generations.

According to Yonhap News Agency, President Lee's announcement came during a meeting focused on state financial strategies. The country is expected to experience a surge in tax revenue due to record earnings by chipmakers, driven largely by the artificial intelligence (AI) semiconductor boom. Lee emphasized the strategic importance of utilizing these "precious resources" to bolster South Korea's global leadership in the AI era.

The proposed future response fund is set to channel investments into future industries, regional development, education, and policies targeting young people. President Lee stated that these investments would enhance the economy's growth potential and ensure that the benefits of the AI boom are distributed to all citizens.

Describing the fund as a "strategic investment platform," Lee highlighted its role in facilitating bold and sustained investments aimed at achieving a "great leap forward" for future generations. The government's financial strategy will also focus on the "three megaprojects" initiative, which includes substantial investments in emerging semiconductor and AI industries. One key element of this initiative is establishing a semiconductor manufacturing cluster in Gwangju.

President Lee assured that the government would work to ensure inclusivity, pledging to strengthen the social safety net to protect young people entering the workforce and those whose jobs may be impacted by AI advancements. He stressed that the financial strategy discussed would shape the nation's future over the next two to three decades.