On Monday evening, Kim Yeon Beom, the president's chief policy advisor, published reflections on Facebook about what would happen if South Korea established itself as a key node in artificial intelligence infrastructure. His conclusion: excess tax revenues from the AI boom should be returned to citizens in the form of direct payments—"dividends."
The next morning, Kospi opened at a record high of 7,999 points—and crashed. Around 10 a.m., when news of the post began spreading, the index fell 5.12%—down to 7,421 points. Samsung Electronics and SK Hynix shares plummeted. After Kim's clarifications, the decline slowed, but Kospi still closed at 7,643, losing 2.3%—the first decline in six sessions.
"If South Korea's strategic position in the AI infrastructure supply chain creates a structural boom that leads to record excess revenues—the question of how to spend this money is not merely a matter of choice, but a matter of policy design."
— Kim Yeon Beom, Facebook post
Why did the market react so sharply to a single post? Kospi has already risen 86% cumulatively this year—and sentiment on it is extremely unstable. Homminn Lee, strategist at Lombard Odier Singapore, noted: "The speed of the decline shows that the trigger was Director Kim's unexpected comment about the 'AI dividend.'"
Context, without which figures mean nothing: Samsung's projected annual profit exceeds Apple and Alphabet—second only to Nvidia; SK Hynix's expected profit for 2026 reaches 239 trillion won. It was against the backdrop of this tectonic shift in corporate earnings that the idea of distribution emerged.
"Personal Opinion" or Trial Balloon
After trading closed, the Presidential Office stated that Kim's proposal is a "personal opinion" and is not connected to internal discussions in the president's office. However, Kim Yeon Beom is a key member of the policy team in the Lee Jae-myung administration, which consistently emphasizes "inclusive" growth.
The idea of distributing technology superprofits among all citizens is not new. Since 1976, Alaska has constitutionally directed at least 25% of revenues from mineral resources to a permanent fund, from which every state resident receives payments. The difference is that Alaska distributes profits from the extraction of non-renewable resources—oil. The Korean proposal envisions redistribution of taxes from private technology companies, which immediately raises questions about the boundaries between fiscal and corporate policy.
What Actually Alarmed Business
Growing concerns among the business community that the proposal could signal pressure on companies to share profits with the broader public—even if formally the mechanism is tied to "excess" tax revenues rather than direct corporate taxation.
- Official clarification: payments would come from "excess tax revenues," not from new corporate taxes.
- Market reaction: even the clarification did not return Kospi to the day's record level.
- Cheong Wa Dae position: a "personal opinion," not a government position.
- Scale and mechanism: unknown—and this remains the key risk.
The panic subsided quickly, but the scale, sources of financing, and path to implementing the "dividend" remain unclear—and the market will likely monitor developments.
If Samsung and Nvidia truly become the new "oil"—who determines when profit becomes "excess" enough to be distributed: the government, parliament, or the market itself?
