South Korean Presidential Policy Chief Proposes AI Tax to Distribute Funds to Citizens, Causing Temporary Stock Market Drop

On May 12, Kim Yong-beom, the head of the presidential policy office, stated that the government should utilize taxes collected from AI profits to pay ‘dividends’ to citizens. Following this announcement, South Korea’s Kospi index plunged by 5.1% at one point, but the decline moderated after Kim clarified that he intended to use ‘excess tax revenue’ generated from AI prosperity, rather than impose a new windfall tax on corporate profits. Shares of Samsung and SK Hynix initially fell but later recovered most of their losses. Jung In Yun, CEO of Fibonacci Global Asset Management, commented that Kim’s remarks ‘indicate that the South Korean government increasingly views AI as a national infrastructure, rather than just another technological trend. This is positive for South Korea’s AI supply, particularly for companies related to semiconductors, power equipment, and domestic AI platforms.’