{"id":66818,"date":"2026-08-20T23:08:16","date_gmt":"2026-08-21T03:08:16","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-south-korea-unveils-120-trillion-won-future-fund-amid-semiconductor-boom\/66818\/"},"modified":"2026-08-20T23:08:16","modified_gmt":"2026-08-21T03:08:16","slug":"global-markets-south-korea-unveils-120-trillion-won-future-fund-amid-semiconductor-boom","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/global-markets-south-korea-unveils-120-trillion-won-future-fund-amid-semiconductor-boom\/66818\/","title":{"rendered":"Global Markets: South Korea Unveils 120 Trillion Won &#8216;Future Fund&#8217; Amid Semiconductor Boom"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>South Korea<\/strong> announces a <strong>120 trillion won ($88 billion)<\/strong> &quot;Future Response Fund&quot; to reinvest semiconductor tax windfalls into AI and high-tech sectors.<\/li>\n<li><strong>Fitch Ratings<\/strong> assigned an expected <strong>&#39;BBB-&#39;<\/strong> rating to <strong>Union Bank of India\u2019s (<a href=\"\/stock\/UNIONBANK\">UNIONBANK<\/a>)<\/strong> proposed senior unsecured notes, aligning with its investment-grade status.<\/li>\n<li><strong>Indonesia and China<\/strong> launched a &quot;2+2&quot; ministerial dialogue to accelerate military modernization and deepen strategic defense ties.<\/li>\n<li><strong>Former Pakistan PM Imran Khan<\/strong> was returned to Adiala Jail after a brief hospital evaluation, following a Supreme Court order regarding his health.<\/li>\n<\/ul>\n<hr>\n<h2>South Korea to Launch 120 Trillion Won &#39;Future Fund&#39;<\/h2>\n<p>The South Korean government announced on Friday the creation of a massive <strong>&quot;Future Response Fund&quot;<\/strong> estimated at a minimum of <strong>120 trillion won ($88 billion)<\/strong>. This strategic reserve will be financed by &quot;windfall revenue&quot;\u2014tax receipts that exceed long-term trends\u2014driven by the current global artificial intelligence and semiconductor supercycle.<\/p>\n<p>The Ministry of Planning and Budget stated that the funds will be used as &quot;valuable ammunition&quot; to secure technological supremacy in the global market. Key investment targets include <strong>AI, advanced manufacturing, and housing support for younger generations<\/strong>, as the government seeks to recycle record profits from giants like <strong>Samsung Electronics (<a href=\"\/stock\/SSNLF\">SSNLF<\/a>)<\/strong> and <strong>SK Hynix (<a href=\"\/stock\/HXSCL\">HXSCL<\/a>)<\/strong> into long-term economic growth.<\/p>\n<h2>Fitch Assigns &#39;BBB-&#39; Rating to Union Bank of India Bonds<\/h2>\n<p><strong>Fitch Ratings<\/strong> has assigned an expected <strong>&#39;BBB-(EXP)&#39;<\/strong> rating to the proposed senior unsecured notes to be issued by <strong>Union Bank of India (<a href=\"\/stock\/UNIONBANK\">UNIONBANK<\/a>)<\/strong>. The rating is in line with the bank&#39;s Long-Term Issuer Default Rating (IDR) of <strong>&#39;BBB-&#39;<\/strong> with a Stable Outlook, reflecting the high probability of extraordinary state support if required.<\/p>\n<p>The bank\u2019s financial profile has shown steady improvement, with <em>Fitch recently upgrading its Viability Rating (VR) to &#39;bb&#39;<\/em> earlier this year. This reflects better asset quality and strengthened capital buffers, positioning the lender to support India&#39;s infrastructure and affordable housing financing initiatives through long-term bond issuances.<\/p>\n<h2>Indonesia and China Signal New Era of Military Cooperation<\/h2>\n<p>In a landmark &quot;2+2&quot; meeting in Jakarta, <strong>Indonesia and China<\/strong> agreed to elevate bilateral defense ties to a &quot;higher level.&quot; Indonesian Defense Minister Sjafrie Sjamsoeddin and his Chinese counterpart Dong Jun discussed broad opportunities for <strong>military modernization<\/strong> and joint cooperation between their respective armed forces.<\/p>\n<p>The dialogue marks a &quot;new starting point&quot; for the two nations, focusing on political security and maritime stability. While Indonesia maintains a <em>\u201cfree and active\u201d non-alignment policy<\/em>, the deepening relationship with Beijing highlights its desire to diversify arms suppliers and bolster domestic defense industrial capacity amid rising regional competition.<\/p>\n<h2>Imran Khan Returned to Prison After Hospital Check-up<\/h2>\n<p>Former Pakistani Prime Minister <strong>Imran Khan<\/strong> was transferred back to <strong>Adiala Jail<\/strong> early Friday morning following a medical examination at Shifa International Hospital in Islamabad. The 73-year-old PTI founder was moved under heavy security after the <strong>Supreme Court of Pakistan<\/strong> ordered authorities to provide him with specialized medical care due to concerns over his deteriorating health.<\/p>\n<p>Doctors reportedly cleared Khan to remain in custody after a brief evaluation, though his legal team and family continue to advocate for extended treatment. Khan has been imprisoned since August 2023, facing multiple charges that he maintains are <em>politically motivated<\/em>, a claim the current administration denies.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways South Korea announces a 120 trillion won ($88 billion) &quot;Future Response Fund&quot; to reinvest semiconductor tax windfalls into 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