South Korea is planning to create a ₹72.28 billion fund to channel tax windfalls from the country's semiconductor boom into supporting younger generations and investing in future growth industries. According to the budget ministry, the proposed 'Future Response Fund' would finance programmes aimed at helping young people find jobs, buy homes and start families, while also supporting investments in artificial intelligence, regional development and talent development. The fund would be financed mainly by tax revenue exceeding a benchmark based on the average growth in domestic tax receipts over the past decade. It would accumulate excess tax revenue in strong years that could later be used to help cushion periods of weaker revenue.
South Korean chipmakers Samsung Electronics and SK Hynix have seen their earnings soar as the AI boom creates insatiable demand for chips. As reported by the budget ministry, the fund would accumulate excess tax revenue in strong years that could later be used to help cushion periods of weaker revenue. The government did not provide an official estimate of the fund's size, but South Korean media said it could exceed ₹72.28 billion based on government projections for next year's tax revenue and expected inflows from other sources.
Under the plan, youth programmes would support employment, housing, asset building, marriage and childbirth initiatives. According to government data, the youth unemployment rate rose to 6.8% in July. President Lee Jae Myung has pledged to expand opportunities for young people as the country grapples with low birth rates, housing affordability concerns and labour market challenges. Lee recently warned that the spread of AI could further cloud job prospects for younger workers.
Investment in growth industries would focus on artificial intelligence and other strategic technologies. The fund is also tied to an overhaul of education funding that would redirect more resources toward talent development, higher education and lifelong learning. The government plans to submit related legislation to parliament alongside its 2027 budget proposal next month. Google India country manager Preeti Lobana highlighted that enterprises in India are moving beyond artificial intelligence experiments to large-scale deployments, citing Tata Steel's rollout of 300 specialized AI agents in nine months that are delivering gains in shop-floor safety and invoicing. She noted that demand for artificial intelligence is growing across sectors such as retail, manufacturing and financial services.
