AI Data Center Bill Passes, Set for February Launch with Eased Non-Capital Rules

*Editor's Note: 'AI PRISM' (Personalized Report & Insight Summarizing Media) is an AI-based customized news recommendation and summary service developed with support from the Korea Press Foundation. It provides six tailored news items selected by reader type.

1. AI Data Center Special Act Passes National Assembly Plenary...Permit Procedures Significantly Shortened

- Key Summary: The AIDC Special Act passed the National Assembly's plenary session on Friday. The core is the shortening of permit periods, with integrated processing through the Ministry of Science and ICT and a timeout system that deems permits approved after a certain period. Power grid impact assessments will also be waived for new construction and expansion of AIDCs in non-capital regions. Ahead of its February implementation, industry forecasts suggest hiring demand will expand in data center operations, management, and security.

2. "AI-Driven Labor Productivity Gains to Lift Annual GDP by 0.4 Percentage Points Over 20 Years"

- Key Summary: The Korea Institute of Public Finance released an analysis showing that AI adoption could raise the average annual GDP growth rate over the next 20 years by up to 0.4 percentage points from the baseline scenario (1.21%). The figure is adjusted to Korea's employment rate based on estimates from research by Stanford University Professor Erik Brynjolfsson and others, which suggested average labor productivity would rise 14% with AI adoption. AI adoption was also found to delay the depletion of the national pension fund by up to five years. Meanwhile, the Bank of Korea previously analyzed that 27% of domestic workers are likely to be replaced by AI or see their income decrease, suggesting that gaps among job seekers will widen based on their AI capabilities.

3. Kakao (035720), Seeing AI's Potential, Accelerates Agentic AI Transition

- Key Summary: Kakao is accelerating its AI transition, posting first-quarter operating profit of 211.4 billion won, up 66% from a year earlier. With cumulative subscribers to 'ChatGPT for Kakao' surpassing 11 million, the company plans to launch agentic commerce in the second half that connects conversations to payments within KakaoTalk. Its in-house model Kanana 2.5 (150B) is also set for release, with industry observers expecting increased hiring demand in the platform and AI services sector. Separately, Upstage plans to acquire AXZ, the operator of the Daum portal, to upgrade its proprietary LLM 'Solar' into an AI portal combined with search data.

4. No Deferral for Virtual Asset Taxation...Ministry of Economy and Finance Says "January Implementation Next Year"

- Key Summary: The Ministry of Economy and Finance officially confirmed that virtual asset taxation will be implemented as scheduled in January 2027. A 22% tax rate (20% other income tax plus 2% local income tax) will apply to virtual asset transfer and lending income exceeding 2.5 million won per year. The People Power Party is pushing a bill to abolish the taxation, but the ministry firmly rebutted it, citing equity with earned income taxpayers. Taxation standards for new income types such as staking and airdrops will be disclosed through a National Tax Service notice within the year, suggesting that job seekers who also invest in virtual assets need to closely monitor changes in taxation standards.

5. Koreans Spend Only 130 Won of Every 10,000 Won Earned in Stocks...One-Third of Developed Nations

- Key Summary: According to Bank of Korea analysis, when stock prices rise by 10,000 won, only 130 won (1.3% of capital gains) is used for consumption, just one-third of the level in developed countries (3-4%). Korean households' stock assets account for 77% of disposable income, far below the U.S. (256%) and Europe (184%), and households without homes are estimated to invest 70% of stock capital gains in real estate. However, household stock capital gains last year reached 429 trillion won, 22 times the historical average. The BOK assessed that the wealth effect appears relatively larger among young people and middle-to-low income earners newly entering the stock market, which could lead to an expansion of consumption capacity across the economy.

6. Went to Work Enduring With Medication...What Came Back Was the 'Incompetent' Stigma

- Key Summary: Antidepressant prescriptions last year reached 24.404 million, the highest since related statistics began to be compiled. Prescriptions for those in their 30s surged 74.7% from 2020 to 3.127 million, while prescriptions for those in their 20s jumped 55.9% over the same period. The approval rate for mental illness industrial accidents has been declining for a fifth consecutive year, from 70.5% in 2021 to 55.8% last year. Rep. Woo Jae-jun said, "Both corporate culture, which has dismissed depression and anxiety as individual problems, and the government, which has delayed system improvements, cannot be free from responsibility," adding that rational reorganization of the industrial accident recognition system is needed.