South Korea proposes AI tax dividend, KOSPI tumbles 5.1%
South Korea's presidential advisor suggested taxing AI profits for a citizen dividend, causing the KOSPI to drop 5.1%.Summary
A proposal by South Korean presidential policy advisor Kim Yong-beom to fund a "citizen's dividend" by taxing profits from the semiconductor sector led to a significant market reaction. The KOSPI index dropped as much as 5.1% intraday on May 12, 2026, with major chipmakers Samsung and SK Hynix spearheading the decline. The proposal suggested redistributing existing tax revenues from AI and semiconductor profits, similar to Alaska's Permanent Fund model. The government quickly clarified that Kim's idea was a personal opinion and not official policy, helping the KOSPI recover some losses to close down 2-3%. This incident highlights an ongoing national discussion in South Korea about equitable distribution of wealth generated by the booming AI and semiconductor industries, especially as wage growth for many workers remains stagnant.
(Source：Crypto Briefing)