Report: South Korea's tax surplus expected to exceed 50 trillion won

South Korea's tax surplus could exceed 50 trillion won this year, driven by factors including a stronger-than-expected semiconductor cycle, according to reports. Media estimates suggest the surplus could push the size of the "Future Response Fund" beyond 200 trillion won. The fund is a tool for the South Korean government to use tax surpluses for strategic investment and fiscal reserves. The report said South Korea's Ministry of Economy and Finance is expected to release revised 2026 national tax revenue estimates later this month. The windfall will give the government more room to expand spending without a corresponding increase in borrowing. In the 2027 budget proposal, most of the tax surplus driven by the semiconductor industry will be used to fund artificial intelligence, the chip industry and youth support programs, while limiting bond issuance and building a fiscal buffer. South Korea's Ministry of Economy and Finance said in a statement on Sunday that revised estimates for this year's national tax revenue have not yet been finalized.