Kim Jongbjom, a presidential political adviser in South Korea, suggested on Facebook that tax revenues generated by the artificial intelligence (AI) industry’s windfalls should be distributed to citizens as a kind of "dividend." The proposal triggered a sharp market reaction on Tuesday: the benchmark Kospi index fell as much as 5.1 percent at one point and closed the day down 2.3 percent.
Kim later clarified that he was not proposing a new special tax on corporate profits, but rather the redistribution of the "excess tax revenues" arising from the AI boom. The presidential office said Kim’s remarks reflected his personal views and were not the result of formal government consultations.
Market impact and figures
Within about 90 minutes more than $300 billion of market capitalization disappeared and then partially returned. Foreign investors sold 5.6 trillion won worth of Korean stocks on Tuesday; their net monthly sales have reached 8.8 trillion won. The Kospi had surged nearly 86 percent through Monday this year, making the market particularly sensitive to news that creates uncertainty.
Kim Todzsun, chief investment officer at Zian Investment Management, said that after an 80 percent rise the market has become vulnerable to any news that could cause volatility.
Who benefits from the AI boom?
Kim Jongbjom warned that AI-era excess profits are highly concentrated: memory chip manufacturers, key engineers and Seoul property owners have captured much of the gains, while much of the middle class sees only indirect effects.
The main domestic beneficiaries of global AI infrastructure build-out are Samsung Electronics and SK Hynix. During Tuesday’s sell-off their shares recovered most of their losses by the close. Forecasts suggest Samsung could generate operating profit of 330 trillion won this year, a level that would surpass Apple and Alphabet and leave only Nvidia ahead globally. SK Hynix is expected to post around 239 trillion won in operating profit.
If Samsung and SK Hynix together reach the projected roughly 500 trillion won in profits, corporate taxes paid on those profits could exceed 100 trillion won — a sum larger than what the government has budgeted as total corporate tax revenue for 2026.
Social and labor implications
The proposal sharpened debate over how to allocate the gains from the AI boom. President Yoon Suk-yeol’s administration has promoted a policy of "inclusive growth," aimed at raising household incomes and supporting small businesses.
The issue has also escalated inside Samsung: on Tuesday the final round of wage talks between the company and its union took place with government mediation. The union is demanding 15 percent of operating profit be allocated to workers in the chipmaking division and has threatened an 18-day strike starting May 21 if no agreement is reached. Tens of thousands protested last month outside Samsung’s main chip plant demanding a larger share of AI profits for workers. Rival SK Hynix last year placed 10 percent of its operating profit into a performance bonus fund, increasing pressure on Samsung.
Why this matters
The debate raises a pressing policy question about who should receive the additional value created by AI — firms, workers, or society more broadly through government redistribution. The market’s swift reaction illustrates how quickly such proposals can move capital markets, especially in an overheated market.
This article is not investment advice or a recommendation.
