South Korea’s Ministry of Budget and Planning (MBP) on Friday unveiled plans for a Future Response Fund that would capture internal tax revenue above its long-term trend and channel the money into youth programs, growth industries including artificial intelligence (AI), regional development and education and talent. The fund would also hold reserves that the government could draw on when tax revenue weakens, with the trend calculated using the average growth of internal tax receipts over the previous 10 years.

The proposal would also change how revenue windfalls flow to local governments and education offices. Seoul would retain the 19.24% local