South Korea proposes a Future Response Fund financed by chip-cycle windfalls

The budget ministry proposed setting aside tax revenue above a long-term trend for youth support and future-growth investment, including AI, physical AI, quantum, aerospace and advanced biology. The government did not announce the fund’s size and plans legislation alongside the 2027 budget process.

Why it matters: The proposal converts volatile semiconductor-cycle receipts into a strategic investment mechanism while addressing labour-market pressure associated with AI.

Business/technical/strategic impact: Enterprises should track final eligibility and procurement rules. Media estimates of the fund’s scale were not adopted here because the government did not confirm an amount.