Minister of Planning and Budget Park Hong-keun stated today (July 18) that, based on discussions within the government, he does not believe the semiconductor boom will end abruptly.
Appearing on the YouTube channel Kim Jakga TV, when asked if there are signs of a semiconductor peak-out, Minister Park replied, "We need to build an artificial intelligence (AI) ecosystem. To do that, we need semiconductors, which act as the brain; robots, or physical AI, which act as the body; and data centers. Countries around the world are preparing for this."
Minister Park announced plans to establish a Future Response Fund using additional tax revenue expected from this year's semiconductor super-boom, noting that youth are the top priority for investment from this fund.
He emphasized, "Youth issues are structural societal problems, and young people are the vulnerable generation. I firmly believe that we must strategically invest in them, as they are the people who will lead South Korea for the next 20 to 40 years."
"The difficulties faced by young people—jobs, housing, assets, marriage, childbirth, and childcare—are all complexly interconnected," he said. "We plan to invest heavily in designing customized policies for the youth."
He added, "We are particularly looking closely at the job market issue. We will provide fair opportunities so that young people can grow on their own."
Regarding concerns that policies focused on fostering regional areas, such as the 5-pole 3-specialty strategy, could be like pouring water into a bottomless pit, he responded, "It has been proven that as concentration in the capital region intensifies, national competitiveness weakens. Resolving overcrowding is the foundation for South Korea's sustainable growth."
On the effectiveness of the supplementary budget (extra budget) quickly organized to respond to the Middle East war this year, Minister Park noted, "It had the effect of boosting the growth rate by 0.2 to 0.3 percentage points. It served as the foundation for the 3 percent growth forecast for this year."
Regarding the government's announcement that this year's nominal growth rate is 12.3 percent, he explained, "There are also forecasts that it could go even higher."
He emphasized, "We are looking for a path where the country and its people can grow and be happy together. I think the idea of reflecting the happiness index in each policy is very meaningful, but growth and happiness must go together."
He concluded, "Our country has infinite potential, but there are times when politics prevents that energy from being properly released, and times when administration fails to create the foundation for it. If we successfully navigate the current crisis and opportunity, we can go beyond the global top 10 and reach the top 7, 5, or even 3."
(Photo: Yonhap News)