South Korea will establish a Future Response Fund to channel an expected surge in tax revenue from the AI-driven semiconductor boom into long-term industrial investment, as President Lee Jae Myung used Monday’s National Fiscal Strategy Meeting to formalize the fiscal foundations of his administration’s economic agenda. The fund will prioritize investment in future growth industries, youth, regional development and education, while supporting the government’s Three Mega Projects centered on semiconductors, AI data centers and Physical AI.

The government also pledged broad support to accelerate implementation of the projects, including faster approvals for private investment, expanded electricity and industrial water supplies,