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The South Korean government intends to set aside the extra tax income flowing from its record-breaking chip industry in a dedicated “future response fund”, the presidential office said, using the proceeds of the AI boom to bankroll public projects ranging from industrial infrastructure to support for younger generations. <\/p>\n
Behind the windfall sit Samsung Electronics and SK hynix, whose memory chips have become essential to the data centres powering the global AI race. <\/p>\n
Their record profits this year have propelled the wider economy, and swollen the government’s tax receipts along the way. <\/p>\n
Presidential chief of staff Kang Hoon-sik outlined the plan at a meeting between the government and the ruling party on Sunday, saying the fund would help finance large-scale projects built around AI and semiconductors, while also tackling inequality and helping young people with housing, start-ups and work. <\/p>\n
Kang warned that the extra revenue thrown off by the chip boom must not be squandered at what he described as a decisive moment for the country’s future. <\/p>\n
No figure was provided for the fund’s size, as the government will consider its use at a fiscal strategy meeting this month before consulting the public. <\/p>\n
In an interview with the Dong-A Ilbo newspaper, Kang added that part of the money would go towards the utilities on which chip plants depend, above all power and water. <\/p>\n
Related<\/strong> <\/p>\n The windfall reflects an extraordinary run for Korea’s chipmakers. <\/p>\n Samsung shares surged more than 170% in the first half of the year, and SK hynix shares rose more than 300%, carrying both companies past $1 trillion (\u20ac874bn) in market value. <\/p>\n Samsung is due to publish preliminary second-quarter earnings on Tuesday, while SK hynix plans to raise 45 trillion won (\u20ac25.7bn) through a listing on the Nasdaq. <\/p>\n Both are also part of an 800 trillion won (\u20ac457bn) public-private push, unveiled last week, to build a new chipmaking hub in the country’s southwest. <\/p>\n How the windfall should be spent has become a live political debate. <\/p>\n In May, presidential policy chief Kim Yong-beom floated using it for start-ups, young people, basic income schemes in rural and fishing communities, and support for artists. <\/p>\n The boom has also emboldened workers as Samsung averted a major walkout in May by agreeing to a bonus deal with its largest union. <\/p>\n<\/p><\/div>\nA boom that keeps giving <\/h2>\n