A proposal by Kim Yong-beom, head of the Presidential Office's policy office, to design a so-called "national dividend" system that would distribute part of the excess profits from the semiconductor boom to all citizens is triggering growing controversy.
Kim made the proposal Wednesday, suggesting that a portion of corporate excess profits stemming from the chip industry boom be shared with the public. Conservative opposition parties, including the People Power Party (PPP) and the Reform Party, denounced the idea as "socialist thinking" and even demanded Kim's resignation, while the Presidential Office moved to contain the fallout by calling it a "personal opinion."
PPP leader Jang Dong-hyuk said on Facebook the same day, "At last, the true colors of the Communist Party have been revealed." Jang argued, "The 'national dividend' means that when companies earn a lot of money, the government will forcibly take it and distribute it," and asked, "Will the government make up the losses when companies run deficits?" He added, "If the government takes money earned through hard work and distributes it, that is exactly a communist ration economy. President Lee Jae-myung is trying to change our system. This is just the beginning."
PPP floor leader Song Eon-seok immediately called for Kim's dismissal. "The market reacted instantly to the shocking anti-market perception that effectively treats corporate excess profits as subject to social redistribution," Song said. "The moment corporate profits are described as 'structural gains that must be socially returned,' the market perceives it as the government seizing the achievements of successful companies."
He continued, "A more serious problem is that excess tax revenue that could arise from a temporary industry boom is being treated as if it were a permanent funding source. When the Presidential Office's policy chief, who influences the Korean economy, repeatedly delivers anti-market messages, the Korean stock market sends global investors a negative signal that it is 'a difficult market to do business in.'" Song added, "Chief Kim must bear heavy responsibility for the shock and confusion his remarks caused in the market. I urge President Lee to immediately dismiss Chief Kim."
PPP Secretary General Jeong Hee-yong said, "The fruits of the AI industry are not the government's 'free safe.'" He added, "This is an anti-market idea that goes against market principles and is no different from socialist-style distribution. The Presidential Office drew a line by calling it a 'personal opinion,' but if the policy chief lightly proposed a personal view on social media without any internal discussion, concerns about the entire policy decision-making process cannot be erased."
PPP lawmaker Ko Dong-jin, a former Samsung Electronics president, criticized the proposal, saying, "This is a populist idea driven by an obsession with immediate votes and an act that shakes the foundation of the free market economy. It is regrettable that instead of contemplating how to create 'a country where it is easy to do business,' the government is trying to put its spoon on a table that has already been well set." He urged, "Stop immediately the behavior that further strengthens companies' resolve to leave Korea."
Reform Party leader Lee Jun-seok pointed out, "The Lee Jae-myung government has contributed nothing to the semiconductor boom at Samsung Electronics and SK hynix that began in early 2022." Lee said, "Saying 'Hey buddy, don't just eat and live well by yourself — cough up some money for the group cheaply' is not politics but Umigwan-style politics from the TV drama Yain Sidae." He added, "Companies share achievements with their members, pay dividends to shareholders, and faithfully pay taxes set by national law. Any attempt by the government to force 'social responsibility' beyond that is precisely an anti-business policy."
As the opposition's offensive continued, the Presidential Office drew a line, saying, "The content the policy chief posted on social media is a personal opinion unrelated to internal discussions or reviews at the Presidential Office."
