South Korea Plans Chip Fund for Growth
South Korea plans to use tax windfalls from a semiconductor boom to fund long term growth and stabilise public finances. The proposed Future Response Fund will target investments in technology regional development and education over several years.
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South Korea will channel record semiconductor tax windfalls into a multi-year growth fund, bypassing recurring welfare spending to tackle structural demographic declines. The Future Response Fund targets long-term projects over a three- to four-year horizon to stabilize public finances against volatile tax swings. Policymakers aim to reverse a slowing potential growth rate driven by population decline and a shrinking domestic workforce.
