South Korea to Boost Sovereign Wealth Fund with Semiconductor Tax Revenue

The South Korean government plans to inject excess tax revenue from the booming semiconductor industry into a new sovereign wealth fund set to launch in the second half of this year. According to Odaily, the fund was initially intended to raise 20 trillion won through contributions of government-held shares in state-owned enterprises. However, the decision has been made to add several trillion won in cash, expanding the seed capital to nearly 30 trillion won (approximately $20 billion). This growth-oriented fund aims to make medium- to long-term investments in potential companies within South Korea's strategic industries that are in the growth phase. The related legislation is expected to be submitted to the National Assembly in June, with the funding plan included in the 2027 budget proposal.