Samsung and SK Hynix's excessive profits to be shared with the public? South Korean government denies establishing a "profit-sharing think tank," vows to trace the source of the rumor.

South Korean government rushes to dismiss a rumor. According to Yonhap News Agency, the Ministry of Trade, Industry and Energy issued a statement today officially denying the online rumor that "the government plans to establish a new think tank to utilize the massive profits of chip manufacturers." It directly called the rumor that Seoul had written to Samsung Electronics and SK Hynix to set up a government-led profit-sharing think tank "completely false" and threatened to take strict measures against those maliciously spreading misleading information, referring them to investigative authorities. The background of this controversy is that the AI boom has pushed Korean chipmakers to historic profits, sparking domestic debate on how this windfall should be given back to society. Compiled from Korean media reports, organized by BlockTempo.

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Key Summary

• South Korea's Ministry of Trade, Industry and Energy denies the online rumor that "the government plans to set up a think tank to utilize chip profits from Samsung and SK Hynix," calling it completely false.
• The ministry threatens to take strict measures against malicious dissemination of misleading information, referring the matter to investigative authorities.
• The controversy stems from Lee Jae-myung's interview with The Economist last month, where he proposed the idea of a universal basic income, suggesting that "part of the excess profits could be distributed to the general public."

The South Korean government has stepped up to clarify. According to Yonhap News Agency, the Ministry of Trade, Industry and Energy issued a statement today formally denying a message circulating online in recent days that the government plans to establish a new think tank to utilize the massive profits earned by chip manufacturers. This rumor targets Samsung Electronics and SK Hynix, the two semiconductor giants, with a strongly worded response that is rare for the government's reaction to market rumors.

The ministry made a firm statement, emphasizing that the claims are completely unfounded.

The online rumor that Seoul has sent letters to Samsung Electronics and SK Hynix to set up a government-led profit-sharing think tank is completely false. Strict measures will be taken against those who maliciously spread such misleading information, and the case will be referred to investigative authorities.

Chip windfall becomes politicized

This wave of AI boom has pushed South Korean chipmakers to historic profit levels, and as a result, domestic discussions on "how to use these additional tax revenues to support long-term growth" are heating up. When industries rake in huge profits, how society shares the dividends naturally becomes a sensitive political topic.

Samsung Electronics and SK Hynix are at the center of this discussion. As the dominant players in the global HBM (High Bandwidth Memory) market, these two companies have seen profits soar in this AI super cycle. SK Hynix, in particular, supplies most of the HBM that Nvidia's AI accelerators rely on. How to distribute the massive capital returns earned by these two giants is gradually becoming a political discussion topic among the South Korean public.

Lee Jae-myung once proposed "excess profit distribution"

The origin of this debate can be traced back to an earlier statement by South Korean President Lee Jae-myung last month. In an interview with The Economist, he proposed the idea of a universal basic income subsidy, saying that "part of the excess profits could be distributed to the general public," referring precisely to the recent debate on how to share the windfall from chipmakers.

This proposal immediately sparked associations among the South Korean public. The presidential office later explained that the statement was not targeting specific companies but rather the challenges South Korea must ultimately face during its AI transformation.

What is interesting is the timing. Just a few days ago, Lee Jae-myung, together with Samsung and SK Hynix, announced a public-private investment plan worth up to 800 trillion won (about $520 billion) to expand chip production capacity and secure South Korea's lead in the global AI race.

Frequently Asked Questions

Is the South Korean government really planning to set up a think tank to share profits from Samsung and SK Hynix? No. The Ministry of Trade, Industry and Energy denies the related rumor, stating that claims of "the government sending letters to Samsung and SK Hynix to set up a government-led profit-sharing think tank" are completely false, and the matter will be referred to investigative authorities for those spreading misleading information.

Why is South Korea discussing the distribution of "excess profits" from chipmakers? The AI boom has led Samsung, SK Hynix, and other dominant HBM manufacturers to achieve historic profits. South Korea has begun discussing how to use the additional tax revenues generated to support long-term growth. Lee Jae-myung, in a recent interview, also proposed distributing part of the excess profits to the public through a basic income.