400,000 Won to 800,000 Won... Taiwan's Parties Vie Over AI Dividends Ahead of Local Elections

Clash over proposal to pay an AI bonus to all citizens
Opposition counters by demanding double the amount

With local elections set to take place in Taiwan next month, the ruling and opposition parties are locked in a contest over an “AI bonus.” After the ruling party pledged to pay each person an AI dividend in the 400,000-won range, the opposition countered by promising to double the amount.

On October 15 local time, Taiwanese media outlets, including the China Times, reported that the main opposition Kuomintang had called for the passage of a bill to pay NT$20,000 (approximately 830,000 won) to every citizen before the local elections, saying it would fulfill the public’s wish for universal cash payments.

TSMC headquarters in Hsinchu Science Park, Taiwan. EPA/Yonhap News

The ruling Democratic Progressive Party had earlier introduced a special bill to provide an AI bonus, with the aim of ensuring that all citizens share in the benefits of the AI boom. The bonus would amount to NT$10,000 (approximately 410,000 won) per Taiwanese citizen. In August, the party also reported next year’s budget proposal, which included the measure, to Taiwanese President Lai Ching-te.

Taiwan, home to TSMC, the world’s largest semiconductor contract manufacturer, is expected to achieve strong economic growth amid the AI boom. Economic growth this year is estimated at 11%, the highest level since 1988. As companies’ operating profits have risen, the Taiwanese government has collected more tax revenue than expected and plans to return some of it to the public.

The issue is that the AI bonus bill was introduced ahead of the local elections. The Kuomintang had previously strongly criticized the Taiwanese government and ruling party’s AI bonus as “fiscal waste,” but has now countered by proposing double the amount in the original bill.

In response, Democratic Progressive Party caucus leader Chang Chih-hsiung criticized the proposal, saying, “Even if the bill passes, the money won’t just fall from the sky,” and “All authority over budget allocations rests with the Executive Yuan.”

Meanwhile, last year, the Taiwanese government paid NT$10,000 to each citizen after the economy grew by 8.76% amid the AI boom.

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