Chip Tax Windfall Spurs South Korea’s Record Budget Expansion

In its annual budget proposal, the budget ministry said the spending plan represented ‌a 12.8% rise ⁠from 2026, ⁠marking the largest year-on-year increase in the country's history.

South Korea is planning a record expansion in state spending next year to finance an artificial-intelligence investment drive, while channeling more than 160 trillion won ($117 billion) of a semiconductor-fueled tax windfall into a new fund.