The “Future Response Fund” will use tax revenues in excess of benchmarks based on average domestic tax revenue growth over the past decade to support youth and invest in AI.
South Korea is expected to present a bill on the “Future Response Fund” next month along with the draft 2027 budget.
The fund will use tax revenues that exceed benchmarks based on average domestic tax revenue growth over the past decade to support youth and invest in artificial intelligence (AI) and other growth areas.
The budget ministry said the fund will be used to save excess tax revenue during years of economic growth and used when revenue declines.
The program will fund projects on youth employment, housing, asset building, marriage and childbearing, as well as investments in artificial intelligence, regional development, education funding reform and talent development.
The government has not given an official estimate of the size, although estimates suggest the fund could reach more than 100 trillion won, or about $72.28 billion.
The proposal comes as South Korea’s youth unemployment rate rose to 6.8% in July, and President Lee Jae Myung recently warned that artificial intelligence (AI) could further damage job prospects for young workers.
Lesson: Navigator Media
