A top South Korean official has proposed introducing a tax on profits generated by artificial intelligence, with the aim of redistributing the gains across society, as a semiconductor boom drives record earnings for major tech firms such as Samsung Electronics and SK hynix, News.Az reports, citing AFP.
The two companies have become key global suppliers of high-performance chips used in AI infrastructure, posting record first-quarter earnings amid surging worldwide demand for advanced semiconductors.
South Korea’s benchmark Kospi index has also rallied over the past month, repeatedly reaching record highs and briefly coming close to the symbolic 8,000-point level on Tuesday.
Kim Yong-beom, senior presidential secretary for policy, said in a Facebook post late Monday that South Korea is no longer functioning as a traditional export-driven economy and may be transitioning into a “technology monopoly economy” shaped by chip scarcity and sustained excess profits.
He said that while this shift represents “the core essence of the possibilities currently open before Korea,” it could also intensify social inequality and polarisation.
Kim proposed a tentative policy concept described as a “national dividend,” aimed at redistributing excess corporate profits from AI-related technologies back into society.
According to his proposal, funds from such a tech tax could be used to support startup programmes for young people, provide basic income initiatives for rural and fishing communities, strengthen pensions for the elderly, and support artists.
“Using a portion of excess profits to ensure social stability for the current generation and mitigate transition costs is not merely redistribution, but also a type of system maintenance cost,” he said.
A global surge in investment in AI data centres has driven strong demand for advanced high-bandwidth memory chips, benefiting South Korean semiconductor producers.
The government has also announced plans to triple its spending on artificial intelligence this year, with the goal of positioning South Korea alongside the United States and China as one of the world’s top three AI powers.
Kim’s comments come as Samsung Electronics’ labour union is calling for the removal of caps on performance bonuses and demanding a system that allocates 15% of operating profit to employee bonuses.
The union is expected to hold post-mediation talks with management on Tuesday.
Separately, members of South Korea’s ruling Democratic Party have also publicly raised calls for redistribution of semiconductor boom profits.
Lawmaker Moon Geum-ju said last month that the chip industry’s success was partly built on “the sacrifice and patience of farmers and fishermen,” arguing that some of the profits should be returned to rural communities.
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