Masayoshi Son, chairman of Japan's SoftBank, proposed the creation of a "U.S.-Japan joint sovereign wealth fund," the Financial Times (FT) reported on the 24th (local time).

According to FT, Chairman Son discussed the establishment of the joint sovereign wealth fund with U.S. Treasury Secretary Scott Vessenet, and senior government officials from both the U.S. and Japan were briefed on this proposal.

Masayoshi Son, the chairman of SoftBank Group, is answering questions from reporters after finishing a meeting with Lee Jae-yong, chairman of Samsung Electronics, and Sam Altman, the CEO of OpenAI, at the Samsung Electronics building in Seocho-gu, Seoul on Feb. 4. /Courtesy of News1

The plan entails the U.S. Treasury and Japan's Ministry of Finance contributing significant equity to form the fund, which would be jointly owned and operated. Additionally, it may attract limited partner investors or provide opportunities for ordinary citizens of the U.S. and Japan to hold small amounts of equity.

The joint sovereign wealth fund concept is viewed as attractive because it could provide a revenue source for both governments. This is based on the premise that the government could recoup tax breaks given to large investors for factory and infrastructure investments directly through investment returns from the sovereign wealth fund.

One official noted, "Secretary Vessenet has been looking for ways to increase tax revenue without raising taxes, and theoretically, the joint sovereign wealth fund could provide this." They added, "Secretary Vessenet wanted a blueprint for a new national-to-national financial structure, while Japan aimed to find a way to be shielded from the impulsiveness of White House politics through a properly controlled contract."

However, it is expected that substantial funds will be needed for the fund to operate efficiently. An informed source estimated that initial funding could reach $300 billion (approximately 410 trillion won).