AI wealth must benefit the people, South Korea’s vice prime minister says

Deputy Prime Minister Bae Kyung-hoon said South Korea must ensure that the wealth created by artificial intelligence broadly benefits the population, even as stock prices accelerate due to labor tensions at Samsung Electronics and the country’s largest semiconductor maker.

In a conversation with CNBC’s Lisa Kim on Friday, Bae said the age of AI is raising broader questions, including how the wealth created by technology should be distributed and whether AI could worsen inequality or lead to job losses.

“The recent labor-management conflict can also be seen as part of this broader trend,” he added, referring to Samsung Electronics. A planned 18-day strike by unionized workers at Samsung Electronics was called off on Wednesday after government officials intervened at the last minute to stop the strike.

The workers had demanded that bonuses be formalized in contracts, that bonus caps be removed, and that 15% of Samsung’s operating profits be paid as bonuses.

A tentative agreement was reached Wednesday, and the union will vote on the plan starting Friday and running through May 27.

Bae does not expect such industrial action to be a one-off event.

Bae said, “In the age of AI, the number of these super-large companies will continue to increase.In the process, there is a possibility that labor-management conflicts will continue to arise, and if such conflicts occur, it will be important to resolve them wisely through dialogue.”

He singled out automaker Hyundai, saying there were “a lot of concerns and concerns” about incorporating Boston Dynamics’ Atlas robots into its manufacturing process.

What South Korea needs is not only the ability to create “great wealth” with AI, Bae said, but also the ability to determine how that wealth and technology will be appropriately used and the impact it will have on its people.

“The benefits of AI must be passed on to the people,” Bae added, noting that the South Korean government is deeply committed to building “an AI-inclusive society, a society in which no one will be left behind in the AI ​​era.”

His comments came after Kim Yong-beom, a senior South Korean presidential official, proposed on Facebook on May 12 that excess tax revenue generated by South Korea’s artificial intelligence and semiconductor sectors be distributed to the people, causing confusion in the market.

Officials later reportedly clarified that the post was Kim’s opinion and was not the subject of formal discussion.

Bae, who also holds the portfolio of South Korea’s Minister of Science and Technology, was also asked about the sharp rise in the South Korean market, centered on major companies Samsung and SK Hynix, whose stock prices have risen due to the AI ​​boom.

Samsung is up nearly 144% since the beginning of the year, while SK Hynix is ​​up nearly 200% since January 1st. Kospi The 2026 increase itself is up more than 86% so far, which is higher than last year’s gain of about 75%.

Asked if he thought the concentration of profits in the high-tech sector was a weakness, Bae said: “Obviously these two companies have their own strengths, but they also have an ecosystem of related companies that support semiconductor production.”

South Korea is currently trying to establish a competitive advantage in the field of physical AI, Bae said, expressing confidence that South Korea can advance in this field.

Physical AI generally refers to AI that is embedded in machines, such as robots, vehicles, and industrial systems, to enable them to sense, reason, and act in real-world environments.

“In a sense, semiconductors and AI infrastructure provide the basic foundation. In addition to that, South Korea is looking to build a full range of AI capabilities, including various hardware equipment, software, and related services.”