South Korea plans to inject excess semiconductor tax revenue into sovereign wealth fund, expanding seed funding to nearly $20 billion

Odaily reported that the South Korean government plans to inject a portion of the excess tax revenue generated by the booming semiconductor industry in cash into a new sovereign wealth fund set to launch in the second half of this year. The fund, originally planned to raise 20 trillion won through in-kind contributions such as government-held stakes in state-owned enterprises, will now add several trillion won in cash, expanding its seed funding to nearly 30 trillion won (approximately $20 billion).

This fund is a growth-oriented fund designed to make medium- to long-term investments in potential companies at the growth stage within South Korea's strategic industries. The relevant establishment bill is expected to be submitted to the National Assembly in June, with the funding planned to be included in the 2027 budget proposal.