SK Hynix Inc000660
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Impact on stocks 2
Semiconductors
SK Hynix IncArtificial Intelligence
Samsung Electronics Co Ltd005930
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South Korea plans to create a new fund to channel tax windfalls from the country's semiconductor boom into supporting younger generations and investing in future growth industries such as artificial intelligence, the budget ministry said on Friday. The proposed Future Response Fund would finance programmes aimed at helping young people find jobs, buy homes and start families, while also supporting investments in AI, regional development and talent development. The fund would be financed mainly by tax revenue exceeding a benchmark based on the average growth in domestic tax receipts over the past decade, accumulating excess revenue in strong years to cushion weaker periods. The government did not provide an official estimate of the fund's size, but South Korean media said it could exceed 100 trillion won, or 72.28 billion dollars, based on government projections for next year's tax revenue and expected inflows from other sources. President Lee Jae Myung has pledged to expand opportunities for young people as the country grapples with low birth rates, housing affordability concerns and labour market challenges, with youth unemployment rising to 6.8 percent in July. The government plans to submit related legislation to parliament alongside its 2027 budget proposal next month.
SK Hynix IncSamsung Electronics Co Ltd