Minister Kim Young-hoon: "AI Excess Profit Distribution Is Reinvestment, Not Communism"

On June 5th, Minister of Employment and Labor Kim Young-hoon emphasized that the distribution of excess profits by large corporations such as semiconductor companies through artificial intelligence (AI) is "clearly reinvestment, not communism." He also proposed "adjusting contract prices with partner companies" as one of the win-win cooperation measures.

On the 18th, Younghoon Kim, Minister of Employment and Labor, arrived at the Ministry of Employment and Labor at the Government Complex Sejong and entered his office while the second post-adjustment procedure for wage negotiations between Samsung Electronics labor and management was underway. Photo by Yonhap News Agency

In an interview with a foreign media outlet released on this day, Minister Kim stated, "It is time to establish new rules of distribution through social dialogue." He added, "It is undeniable that Samsung's impressive achievements are the result of the dedicated efforts of both labor and management," but also pointed out, "There are more than 1,700 partner companies involved, and there is a significant contribution to the local community, including the supply of water and electricity."

Minister Kim dismissed criticism from the People Power Party that excess profit distribution is "communism." He continued, "What I mean by distribution is sharing profits with partner companies," and stressed, "This is clearly reinvestment." He then suggested that adjusting contract prices with partner companies is one form of social distribution.

He also expressed concerns about the possible side effects of "polarization in performance bonuses." Minister Kim warned that if the payment of bonuses based on excess profits increases at large corporations, it could intensify the trend of young people flocking to these companies, eventually worsening recruitment difficulties for small and medium-sized enterprises and deepening social inequality.

Regarding future tasks for Samsung Electronics, Minister Kim said, "Rewarding short-term achievements is, of course, necessary," but advised, "Corporations also need to invest in and motivate strategic talent in the medium to long term."

Previously, on May 27, Minister Kim had announced that "the only solution to how large corporations' excess profits can be distributed socially is social dialogue," and indicated that the Ministry of Employment and Labor would host a "Korean-style Social Solidarity Wage Forum."

This content was produced with the assistance of AI translation services.