Archive · 21 Aug 2026
South Korea Plans Future Fund for Youth and AI Investment
South Korea wants to create a new fund for the future.
The money would mainly come from tax revenue collected during strong economic years.
Some of it would help young people find jobs, buy homes and start families.
The fund would also support artificial intelligence and other important technologies.
It could save money in good years and use it when tax income is weaker.
The government has not said exactly how large it will be.
South Korean media reported that it could be worth more than 100 trillion won.
The plan is connected to concerns about low birth rates, expensive housing and youth unemployment.
South Korea plans a Future Response Fund using tax revenue above a decade-based benchmark.
The fund would support youth employment, housing, asset building, marriage and childbirth.
It would also finance artificial intelligence, strategic technologies, regional development and talent development.
The government has not estimated the fund’s size; media reports suggest it could exceed 100 trillion won.
Related legislation is expected alongside the 2027 budget proposal next month.
- Who
- The South Korean government, President Lee Jae Myung and young people are central to the plan.
- What
- The government plans to establish a Future Response Fund for youth programmes and investment in artificial intelligence and other growth industries.
- When
- The government plans to submit related legislation alongside its 2027 budget proposal next month; youth unemployment reached 6.8% in July.
- Where
- South Korea.
- Why
- The fund is intended to use tax windfalls to address youth employment, housing and family-formation challenges while supporting future growth and cushioning weaker-revenue periods.
- Fund name
- Future Response Fund
- Main financing source
- Tax revenue exceeding a benchmark based on average domestic tax-receipt growth over the past decade
- Youth priorities
- Employment, housing, asset building, marriage and childbirth
- Investment priorities
- Artificial intelligence, strategic technologies, regional development and talent development
- Estimated size
- No official estimate; South Korean media reported it could exceed 100 trillion won
- Youth unemployment
- 6.8% in July, according to government data
- Legislative timetable
- Related legislation is planned alongside the 2027 budget proposal next month