South Korea will use a tax revenue windfall from artificial intelligence chipmakers as a strategic source of investment, President Lee Jae Myung said Monday, describing a "golden window" of opportunity.
Global demand for advanced memory chips used in AI data centers has helped South Korea's semiconductor giants post record profits this year, boosting economic growth.
The boom has also strengthened workers' demands for higher pay, with Samsung Electronics avoiding a major strike in May after reaching an agreement on bonuses.
"Driven by an unprecedented semiconductor boom fueled by the AI revolution, we expect to see additional tax revenues on a scale never experienced before," Lee said at a policy meeting with cabinet members.
According to AFP, his comments reflect plans previously outlined by his office to use the excess tax revenues, from chipmakers Samsung Electronics and SK hynix in particular, to fund public infrastructure projects.
"These revenues are a valuable national resource that should be invested during the golden window when the global race for AI leadership is being decided," Lee said.
The tax windfall will be used to establish a "future response fund" to concentrate investment in "future industries, youth, regional development, and education", he added, without giving further details.
Through such mechanisms, the government wants to ensure the benefits of the fast-evolving AI industry are shared by all, he said.
Budget Minister Park Hong-keun told the meeting that South Korea was expected to reap tax revenue of at least 500 trillion won (US$330 billion) next year, above an earlier estimate of 412 trillion won.
Against that backdrop, his ministry "will draw up next year's budget at a record-high scale of 800 trillion won", he said, an increase of more than 10 percent from this year's budget.
