South Korea plans to submit legislation next month for a proposed “Future Response Fund” alongside its 2027 budget proposal.

The fund would use tax revenue above a benchmark based on average domestic tax receipt growth over the past decade to support young people and invest in AI and other growth sectors.

The budget ministry said the fund would save excess tax revenue in stronger years and use it when revenue weakens.

It would finance programs for youth employment, housing, asset-building, marriage, and childbirth, as well as investment in AI, regional development, education funding reform, and talent development.

The government did not give an official size estimate, though estimates put the fund at more than 100 trillion won, or about US$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 AI could further hurt job prospects for younger workers.

🔗 Source: Reuters