South Korean President says gains of business success should be shared throughout society

SEOUL — South Korean President Lee Jae Myung said on Monday that the gains from corporate success should be shared more broadly across society, adding that the government will develop a plan to effectively utilize surplus tax revenues generated by the country’s semiconductor industry.

Lee made the remarks during a press conference marking one year in office, following his election after a failed attempt to impose martial law led to the ouster of his predecessor.

He pledged to position South Korea as the first country to fully integrate artificial intelligence across industries and to become a preferred global partner for countries seeking self-reliance in defense capabilities.

South Korea’s major chipmakers, including Samsung Electronics and SK Hynix, reported record profits in the first quarter, fueled by a surge in artificial intelligence adoption that has driven global demand for memory semiconductors.

Lee said there is a clear distinction between corporate earnings growth and increases in windfall tax revenues. However, he noted that debate will continue over whether workers and society at large should share in the gains of rapidly expanding companies.

He added that while such measures could pose risks to industrial competitiveness, the strong performance of the sector also presents an opportunity to rethink the country’s long-term growth strategy.

“We will determine how to most effectively utilize the surplus tax revenues generated by the semiconductor industry,” Lee said, adding that the government will soon unveil a large-scale investment plan, though he did not provide further details.

On broader economic concerns, including the impact of the war in Iran, Lee said price pressures have been rising nationwide but emphasized that the spillover effects are unlikely to trigger a financial crisis in South Korea. -Reporting by Kyu-seok Shim, Joyce Lee and Jack Kim; Editing by Tom Hogue and Shri Navaratnam/Reuters