South Korean Minister of Planning and Budget Park Hongkeun reaffirmed plans to channel additional tax revenues from the AI and semiconductor boom into future growth and balanced regional development, stating on KBS’s “Sunday Diagnosis” on July 26 that “now is the era when AI dominance will be decided.” He explained the Future Response Fund (FRF), established using tax revenues exceeding expectations due to the semiconductor boom, will be used for strategic investment—including supporting the younger generation, securing new growth engines for AI, bolstering non-metropolitan regions, and fostering talent—or as a fiscal stabilization device to supplement capacity when tax revenues fall short. Park emphasized that allocating these funds entirely within one fiscal year would not be appropriate, marking a departure from conventional budget policies. He also noted the government is preparing measures to revise the current system under which 20.79% of domestic tax revenue is allocated to the Local Education Financial Grant Fund, with discussions ongoing with the Ministry of Education and a bill to be submitted once consensus is reached.