The Japanese government has drawn up "growth investment guidelines" designed to steer corporate profits toward large-scale investment rather than share buybacks or shareholder returns. The guidelines include measures to bolster technological competitiveness through major investments in high-profit sectors, research and development (R&D), and talent acquisition. The framework serves as an investment guideline to channel corporate profits back into advanced industries such as semiconductors, artificial intelligence (AI), and electric vehicles. As a follow-up measure to realize the "strong economy" pledged by Japanese Prime Minister Sanae Takaichi, the government plans to support corporate investment through bold tax and financial assistance.
Unlike Japan, the Korean government appears preoccupied with "splitting" corporate profits. Employment and Labor Minister Kim Young-hoon proposed a "social solidarity wage," saying, "We will hold an emergency forum to find ways to socially redistribute the excess profits of large corporations." However, the notion that profits of large corporations should also compensate workers at subcontractors and partner firms ignores the reality that companies must invest to strengthen their competitiveness. As controversy mounted, Minister Kim said on the 28th, "The government has neither the authority nor the intention to forcibly intervene in the legitimate profits of corporations," but a more active clarification is needed.
Even at this moment, major competitor nations including Japan are betting their future on investment, with governments and companies working in lockstep to secure competitiveness. Global companies, driven solely by the determination to preempt cutting-edge technological leadership, are pouring vast sums into capital-intensive semiconductor, battery, electric vehicle, and robot factories — mobilizing not only retained earnings but also newly generated profits. Meta, which posted operating profit of 126 trillion won last year, laid off 10 percent of its workforce this month alone to secure astronomical investment funds.
Korea, too, must see its government and businesses unite to launch sweeping investments aimed at generating greater profits. At such a critical moment, it is deeply troubling that demands for "N% performance bonuses" — originating at Samsung Electronics — are spreading across the automotive, bio, and platform industries, threatening to amplify labor-management conflict. The government must swiftly establish detailed guidelines on performance bonus payments through deliberative processes such as public hearings. At a time when competitor nations are staking their survival on corporate growth, Korea cannot afford to indulge in a lavish "profit-sharing" festival.
