Seoul: A semiconductor boom is prompting South Korea to establish a new fiscal fund, the Future Response Fund, valued at over 100 trillion won ($72.1 billion). This initiative, announced by the Lee Jae Myung administration, aims to leverage the increase in tax revenue brought about by the global demand for artificial intelligence to create a long-term investment vehicle. According to Yonhap News Agency, the fund is designed to utilize "windfall revenue," defined as tax income above a 10-year trend in domestic taxes, distinct from ordinary surplus revenue. The fund will allow for the investment of idle funds for returns above government bond yields, with the intention of maintaining fiscal stability during downturns. However, there are concerns that the fund could be used as a general-purpose spending account, potentially leading to fiscal expansion without sufficient legislative oversight. The fund's proposed usage has sparked debate. While frontier AI, physical AI infrastructure, and other advanced technol ogies align with strategic investment goals, programs like youth cultural and sports passes, housing subsidies, and rural basic income are seen as misaligned with the fund's purpose. Critics argue that these should be included in the ordinary budget for better evaluation against other priorities. Governance is another critical aspect, as the fund's annual plan will undergo parliamentary review. However, existing rules permit changes to major spending items within a specified range without prior National Assembly approval, raising concerns about unchecked fiscal expansion. In conjunction with the Future Response Fund, the government has also proposed ending the longstanding automatic allocation of domestic taxes to local education offices, a move that aligns with Korea's evolving demographic landscape. Additionally, there is a notable omission in the fund's plan: addressing national debt. Korea's national debt rose significantly last year, and with elevated long-term bond yields, there is a call for priorit izing debt redemption in line with the National Finance Act. Drawing inspiration from Norway's capital-preservation approach, Korea is encouraged to protect its financial stability by investing carefully and focusing on sustainable returns. The semiconductor boom provides a unique opportunity for South Korea to enhance its industrial base. The challenge lies in ensuring that the Future Response Fund serves as a strategic growth reservoir without compromising the country's financial health.