Korean media: South Korea will distribute excess tax revenue to a new sovereign wealth fund.

The Korea Economic Daily quoted an anonymous government source as saying that the South Korean government plans to allocate some of the excess tax revenue generated from the high-speed growth of the chip industry to the Korean-style sovereign wealth fund established in the second half of this year. The fund was originally intended to raise an initial capital of 20 trillion Korean won through state-owned equity and inheritance tax offset stocks. The government has now decided to increase cash contributions, raising the capital to nearly 30 trillion Korean won. The policy aims to transform the additional tax revenue into national wealth for the benefit of future generations. South Korea will submit a bill to the National Assembly in June to establish the fund, with a clear legal basis for the cash injection. The Ministry of Economy and Finance of South Korea has stated separately that it has not yet determined the specific plans for the funding sources and investment direction of the fund.