Published On 5/7/2026
South Korea intends to establish an investment fund based on the additional tax revenues generated by the semiconductor industry, with the aim of financing long-term growth projects and enhancing the competitiveness of the economy, according to what Bloomberg reported from the Korean Yonhap Agency.
The agency quoted Chief of Staff Kang Hoon-sik as saying during a meeting that included government officials and ruling party leaders that the increasing tax revenues from the chip sector should be directed to strategic investments that support the future of the Korean economy.
He explained that the proposed fund would be allocated to finance a number of priorities, including implementing major national projects, creating new growth engines, reducing economic disparity, in addition to supporting housing, emerging companies, and providing job opportunities for young people in their twenties and thirties.
This step comes within the framework of South Korea’s strategy to strengthen its position in advanced industries, after launching the “Three Major Projects” initiative, which focuses on investing in semiconductors, physical artificial intelligence, and data centers.
The government recently announced that major companies, led by Samsung Electronics and SK Hynix, are planning investments of no less than 1,350 trillion won (about 880 billion dollars) within this initiative, in an effort to consolidate the country’s position as a global center for artificial intelligence industries and advanced technologies.
Kang added, according to Yonhap, that these projects will contribute to building new growth engines that will determine the features of the Korean economy over the next two or three decades, and support the country’s competitiveness in the long term.
