South Korea to launch Future Response Fund using semiconductor tax windfall

South Korea announced plans to establish a "Future Response Fund" financed by the extra tax revenue generated by the booming semiconductor industry. Presidential chief of staff Kang Hoon‑sik said the fund will channel the windfall into long‑term investments, supporting three flagship "mega projects" in semiconductors, physical AI and AI data centres, while also addressing the country's K‑shaped economic polarization.

The fund aims to provide housing, startup financing and employment assistance for people in their 20s and 30s. Officials estimate the fund could reach up to 100 trillion won (about $80 billion) and be fully collected by early 2027. Investments from Samsung Electronics, SK Hynix and other private firms, totaling around $1 trillion, are expected to back the mega projects.

The government describes the fund as a cornerstone for making South Korea “irreplaceable” in future technology leadership and for promoting balanced regional development beyond Seoul. Legislative and budgetary support from the ruling Democratic Party is being sought to formalise the fund’s legal framework.