South Korea debates AI excess‑profit tax and new performance‑bonus rules

South Korea’s Ministry of Employment and Labor hosted its first tripartite forum on AI‑driven economic change, bringing together government officials, labour unions and business leaders. Participants discussed imposing a special tax on the excess profits generated by AI and semiconductor firms such as Samsung Electronics and SK Hynix, whose combined operating profit is projected to exceed 500 trillion won. The tax revenue would be earmarked for research‑and‑development, youth hiring, modernising industrial parks and improving worker welfare.

Labor representatives called for a shift in performance‑bonus calculations from operating profit to net profit after taxes and interest, arguing that the current “operating‑profit N%” model unfairly extracts workers’ shares before other stakeholders. They also proposed establishing a National Wage Committee to oversee minimum‑wage, public‑sector pay and sector‑specific wage policies. Business groups warned that direct confiscation of excess profits or mandatory collective‑bargaining on bonuses could dampen investment and innovation. The Ministry plans to publish an “AI social‑innovation” white paper later this year and to continue the dialogue through a new consultative body that includes unions, experts, youth and platform‑worker representatives.