Seoul: 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 Democratic Party (DP), noting additional tax revenue generated by the booming semiconductor industry should not be wasted.
According to Yonhap News Agency, Kang stated that by launching the fund with the extra tax revenue, the government aims to make bold investments for the future. This includes 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. During the meeting, Kang also emphasized the importance of the three megaprojects initiative, which calls for large-scale investments in semiconductors, physical artificial intelligence (AI), and AI data centers.
Kang added that the fund will serve as a cornerstone for making South Korea an irreplaceable player, with the three megaprojects 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 Kang's views, noting that the project will help open a new era of growth for the country, comparable to the development of 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 DP, emphasized the need for the party and the government 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.
In a statement released following the meeting, the ruling party expressed its agreement with the government's view on utilizing additional tax revenue for future generations and new growth engines. "During the meeting, the government only mentioned the purpose and direction of the future readiness fund," Rep. Kang Jun-hyeon, senior spokesperson of the DP, said. "Specific plans will be discussed by the party, the government and the presidential office going forward, while a detailed road map and agenda were not discussed," the party spokesperson added.