Lee Says AI Chip Boom Will Bring Unprecedented Tax Windfall, Plans Future Response Fund

President Lee Jae-myung said South Korea will use a surge in tax revenue from the artificial intelligence semiconductor boom to finance strategic investment for the future.

Speaking at a National Fiscal Strategy Meeting at the Blue House state guest house on July 13, Lee said the AI revolution has sparked a semiconductor boom that is expected to generate an unprecedented tax windfall. He said the additional revenue would be used for strategic investments to help the country prepare for the future.

Lee called the extra tax revenue a valuable source of funding at a golden moment when the global contest for AI dominance is being decided. He said the government will set up a Future Response Fund and concentrate investment on four areas that will shape the country's future: future industries, youth, regional development and education. The goal, he said, is to lift the economy's growth potential and return the gains to the public.

That effort will require a strategic investment platform that can support bold and sustained spending on the future, Lee said. The Future Response Fund will serve that purpose and become a foundation for a major leap forward with future generations, he added.

Lee also laid out the direction of the 2027 budget proposal. He said the 2027 budget would be the first to be drawn up entirely by his administration from the drafting stage, and that next year's plan must fully support what he called the bold goal of making South Korea irreplaceable.

He pledged to build a South Korea where no one is left behind through growth for all. For young people entering society, the government will establish a support system spanning the full life cycle, from jobs and housing to asset formation.

Lee also said the government will strengthen the social safety net so nontraditional workers, whose numbers will inevitably grow in the AI era, are fully protected. He said the administration will provide ongoing support so all citizens can benefit from advances in AI technology.

On industrial investment, Lee said the government will turn three mega-projects into new opportunities for the economy. He said the administration will marshal all available resources to support investment in semiconductors, physical AI and AI data centers so projects can move ahead on companies' timelines.

He added that the government will ensure stable supplies of electricity and water, while expanding transport, logistics and other infrastructure. It will also build the conditions for people to live and work in those areas, including housing, education, healthcare and culture, along with a foundation for innovation, to create new growth hubs across South Korea.

Lee Jeong-woo, Hankyung.com reporter krse9059@hankyung.com