South Korea Launches Future Fund Using Semiconductor Windfall Revenue

The Ministry of Planning and Budget announced the launch of the Future Fund, a strategic investment platform designed to drive long-term economic growth. The fund utilizes windfall revenue—tax receipts exceeding long-term trends—generated by the current artificial intelligence and semiconductor boom. These funds will be directed toward youth needs, including housing and childbirth, regional economies, and seven future-oriented sectors: small modular reactors, nuclear fusion, renewable energy, quantum technology, aerospace, advanced biology, and advanced material supply chains.

Alongside the fund, the ministry proposed an overhaul of the education grant formula to address a shrinking student population, which declined from 8.8 million in 2010 to 5.91 million in 2025. The reform replaces the automatic allocation of 20.79 percent of internal tax revenue with a new formula based on economic growth and demographic changes.

The Cabinet is scheduled to review the education reform proposal on September 1, with a subsequent submission to the National Assembly on September 3.