South Korea should use taxes generated by its artificial intelligence (AI) industry to pay "dividends" to citizens, a senior policymaker said, underscoring growing pressure on authorities to redistribute the fruits of the tech boom. Chip companies such as Samsung Electronics and SK Hynix have made huge profits from the AI boom.
Kim Yong-beom, director of the Policy Office of the South Korean Presidential Office, made a statement on Facebook that triggered violent fluctuations in the South Korean stock market on Tuesday. Investors were once difficult to interpret the specific implications of his suggestions. The stock market benchmark KOSPI index fell 5.1% during the session. Later, Kim Yong-bum clarified that his intention was to use the "excess tax revenue" brought by the AI boom rather than levy a windfall profit tax on corporate profits, which narrowed the stock market's decline. The share prices of Samsung and SK Hynix also fell for a time, but later recovered most of their losses.
Globally, economists and politicians are increasingly concerned that artificial intelligence technology may exacerbate the gap between rich and poor. Particularly in South Korea, this concern has manifested itself into public calls for industry leaders from SK Hynix to Samsung to share the benefits of the global AI infrastructure boom with the wider population.
Jung In Yun, CEO of Fibonacci Asset Management Global, believes that Kim Yong-beom’s remarks “show that the Korean government is increasingly viewing artificial intelligence as national infrastructure rather than just a technology trend.” He pointed out that this will benefit the Korean AI supply chain, especially companies related to semiconductors, power equipment, and sovereign AI platforms.
Kim Yong-bum wrote, "Excess profits in the artificial intelligence era are highly concentrated in nature." Shareholders, core engineers and various asset holders of memory chip companies are very likely to receive generous returns, while the middle class may only feel the indirect effects.