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

Odaily news, the South Korean government plans to inject a portion of the excess tax revenue from the booming semiconductor industry in cash into a new sovereign wealth fund to be launched 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, has now decided to add several trillion won in cash, expanding its seed capital to nearly 30 trillion won (approximately $20 billion).

The fund is a growth-type fund aimed at making medium- to long-term investments in promising companies in 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 funding planned to be included in the 2027 budget proposal.