Paris:The chief economist of the Organization for Economic Cooperation and Development (OECD) has praised South Korea's proposed Future Fund, which aims to use tax gains from the chip industry to foster sustainable growth, describing it as a "wise policy choice," according to the South Korean budget ministry. According to Yonhap News Agency, the remark was made by OECD Chief Economist Stefano Scarpetta during a meeting with Vice Budget Minister Cho Yong-beom in Paris. The meeting took place on the sidelines of the 14th Korea-OECD International Forum on Budgeting held this week. The Future Fund is set to be launched by the South Korean government next year. It plans to utilize windfall tax revenue from the semiconductor industry to invest in sustainable economic growth. The government defines windfall revenue as tax earnings that surpass their long-term trend due to structural economic changes or significant economic fluctuations, such as an industrial supercycle. Scarpetta assessed the plan positively, ali gning with the view that the fund will help stabilize government revenue and support strategic investment projects. He also highlighted that countries like Ireland and Norway have implemented similar programs for future generations. Additionally, during the meeting, Cho informed Scarpetta about South Korea's three megaproject initiatives and investment plans under the Strategic Emerging Engines for Disruptive Innovation (SEED) program. This program focuses on areas such as small modular reactors (SMRs), nuclear fusion, and renewable energy.
