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 announced during a government and ruling party senior-level meeting.
According to Yonhap News Agency, presidential chief of staff Kang Hoon-sik emphasized the importance of utilizing the additional tax revenue generated by the booming semiconductor industry for the country's growth. Kang stated that the fund aims to support bold investments in future projects, including three megaprojects, addressing economic polarization, and providing support for housing, startups, and jobs for people in their 20s and 30s.
During the meeting, Kang stressed the significance of the three megaprojects initiative unveiled by the government last week, focusing on large-scale investments in semiconductors, physical artificial intelligence (AI), and AI data centers. He highlighted the fund's role as a cornerstone in making South Korea an irreplaceable player and described the megaprojects as crucial for the country's future growth over the next two to three decades.
Kang further described the megaprojects as marking the start of a new national development paradigm based on public-private sector cooperation. Prime Minister Han Seong-sook supported this view, stating that the project could usher in a new growth era for the nation, akin to past developments like expressways and high-speed networks.
Rep. Han Byung-do, acting head and floor leader of the Democratic Party, called for concentrated efforts on the early realization of the megaprojects, pledging necessary legislative and budgetary support through a dedicated task force. Han described the initiative as a historic decision for the nation's progress.