South Korea’s Deputy Prime Minister Bae Kyung-hoon stresses the need for artificial intelligence-generated wealth to benefit the wider public, warning against increased inequality and job losses. His remarks come as the nation grapples with significant labor disputes, including a recent strike at Samsung Electronics, and a stock market rally driven heavily by its leading chipmakers. Bae advocates for an “AI-inclusive society” where no one is left behind, emphasizing proper utilization and assessment of AI’s societal impact.
SEOUL — As South Korea navigates burgeoning artificial intelligence (AI) advancements and simmering labor unrest at industrial giants like Samsung Electronics, Deputy Prime Minister Bae Kyung-hoon has issued a strong call for the equitable distribution of AI-generated wealth across society.
Speaking to CNBC's Lisa Kim on Friday, Bae articulated pressing concerns that the rapid proliferation of AI could exacerbate the gap between the rich and the poor, or lead to widespread job displacement. He directly connected these broader societal questions to recent labor disputes.
"Recent labor-management conflicts can also be seen as part of this broader trend," Bae stated, referencing the significant, albeit suspended, 18-day strike by unionized workers at Samsung Electronics. The walkout, averted at the eleventh hour by government intervention, stemmed from demands for formalized bonuses, the removal of bonus caps, and a share of 15% of Samsung's operating profits for workers. A tentative agreement is now subject to a union vote.
Bae anticipates that such industrial actions may not be isolated incidents. "In the age of AI, more of these super-large companies will continue to emerge. In that process, labor-management conflicts may continue to arise, and when they do, it will be important to resolve them wisely through dialogue," he explained. He cited automaker Hyundai's integration of Boston Dynamics' Atlas robots into its manufacturing processes as another source of "many concerns and worries."
Bae Kyung-Hoon, South Korea's science and ICT minister, emphasized the need for AI wealth to benefit all citizens.
For South Korea, the challenge extends beyond merely creating "great wealth" through AI; it encompasses judiciously utilizing this wealth and technology while thoroughly assessing its impact on the populace. "The benefits of AI must also go to the public," Bae asserted, highlighting Seoul's dedication to fostering an "AI-inclusive society — a society where no one is left behind in the AI era."
These comments echo a recent proposal by South Korean presidential official Kim Yeong Beom, who suggested on social media on May 12 that excess tax revenue from the nation's booming AI and semiconductor sectors be distributed to citizens. This idea, though later clarified as Kim's personal opinion rather than official policy, stirred considerable debate in financial markets.
Kospi's Tech-Driven Ascent
Bae, who also oversees the science and technology portfolio, addressed the dramatic surge in South Korean markets. The Kospi index has climbed more than 86% year-to-date in 2026, outperforming last year's 75% gain. This rally has been significantly propelled by tech heavyweights like Samsung (up nearly 144% year-to-date) and SK Hynix (soaring almost 200% since January 1st), both riding the crest of the AI boom.
Kospi index, year to date, showing significant gains.
When questioned about the potential weakness of such concentrated gains within the tech sector, Bae countered, "While these two companies clearly have their own strengths, there is also an ecosystem of related companies that support semiconductor production."
Furthermore, South Korea is actively pursuing a competitive edge in physical AI, which refers to AI embedded in machines like robots and vehicles, enabling them to interact with real-world environments. Bae expressed confidence in Seoul's ability to make substantial progress in this domain. "In a way, semiconductors and AI infrastructure provide the fundamental foundation. On top of that, Korea is trying to build out the full spectrum of AI capabilities, including various hardware equipment, software, and related services," he concluded.
