Kim Yong-beom, presidential chief of staff for policy, speaks during a news conference at Cheong Wa Dae in Seoul, April 28. Yonhap
A senior presidential official drew criticism for floating a populist policy idea of redistributing increased tax revenue to address the widening wealth gap in the age of artificial intelligence (AI).
In a social media post on Monday, Kim Yong-beom, presidential chief of staff for policy, proposed what he called a “national dividend,” a concept involving direct cash payments to citizens funded by increased tax revenue from the booming AI industry.
Shortly after media outlets reported on the post on Tuesday, the stock market experienced volatility. Korea’s benchmark KOSPI plunged as much as 5.1 percent before recovering a significant portion of its losses.
Cheong Wa Dae later said the AI dividend proposal reflected Kim’s personal opinion, apparently seeking to downplay its significance. It added that the proposal had neither been reviewed internally nor discussed as a possible social policy.
Nevertheless, Kim’s policy trial balloon caused a stir. Critics argued that his idea of distributing funds generated from the booming semiconductor industry resembled the rationing systems of communist countries.
Rep. Jang Dong-hyeok, chairman of the main opposition People Power Party, said Kim’s proposal appeared rooted in socialist thinking. “He’s basically saying the government will take money from profitable businesses and redistribute it to citizens. This is what communists do,” Jang wrote on social media.
Kim later claimed his remarks had been taken out of context. He said he was not advocating a windfall tax, adding that he had merely suggested direct cash payments because tax revenue was expected to surge amid the semiconductor boom.
Semiconductors have become the defining product of the AI era. Demand for high-bandwidth memory and advanced chips has soared, driven by heavy investment in AI infrastructure and fueling a semiconductor supercycle. Experts expect the boom to continue for the foreseeable future.
Kim called for a comprehensive spending plan, saying the government should prepare in advance for how to use the expected increase in tax revenue.
Source: Korea Times News
