Seoul: South Korea's chip giants have reaped windfall gains from the artificial intelligence (AI)-driven semiconductor supercycle, but their soaring profits are also fueling a broader debate over how the gains should be shared among workers, investors, and the broader public. Samsung Electronics Co. and SK hynix Inc. posted record earnings last year on soaring demand for high-bandwidth memory (HBM) chips used in AI systems and data centers, with their combined operating profits reaching 90 trillion won (US$61 billion) in 2025.
According to Yonhap News Agency, the industry's explosive growth has intensified pressure from workers demanding a greater share of the profits. Samsung Electronics, the world's largest memory chipmaker, faces a heightened risk of a general strike after management and the labor union failed to reach a wage agreement Wednesday despite two days of government-mediated talks. The union is demanding performance-based bonuses equivalent to 15 percent of operating profit, along with the removal of bonus payout caps. It has threatened to stage an 18-day strike starting May 21 if its demands are not met.
The tech giant posted 43.6 trillion won in operating profit last year, while its first-quarter operating profit surged more than eightfold to 57.23 trillion won. Observers warn that a full-scale strike at Samsung could disrupt semiconductor production and deal a major blow to South Korea's export-driven economy, with some estimates putting potential economic losses at more than 40 trillion won.
The dispute has also drawn attention because of comparisons with its rival SK hynix, which accepted union demands last year to set bonus payments at 10 percent of operating profits and scrap the cap on bonus payments. The move fueled frustration among Samsung employees, many of whom argue the company has not rewarded workers sufficiently despite soaring earnings and stock valuations.
The issue has broadened beyond labor relations into a wider political and economic debate over whether the gains from the AI boom should be shared more broadly across society. On Tuesday, Kim Yong-beom, the presidential chief of staff for policy, floated the idea of introducing "public dividends" funded by excess tax revenues generated during the semiconductor supercycle to support programs such as startup funding, pension support, and worker training in the AI era.
"The fruits of the AI infrastructure era are not results generated by certain companies alone ... they were produced on a foundation that all the people have built together over half a century," Kim wrote on Facebook. The remarks rattled investors, with shares in Samsung Electronics and SK hynix falling Tuesday afternoon after concerns emerged over possible government intervention or higher taxation on corporate profits, which analysts warned could divert potential funds away from investment in AI infrastructure.
The two companies' combined market capitalization now accounts for about 47 percent of the benchmark Korea Composite Stock Price Index (KOSPI), underscoring the dominance of the semiconductor sector in the country's economy and stock market. Opposition parties sharply criticized the idea of sharing corporate profits with the broader public as a populist policy. Jang Dong-hyeok, the leader of the main opposition People Power Party, denounced Kim's proposal as an attempt to redistribute corporate profits in a manner akin to "communism."
Lee Jun-seok, leader of the minor New Reform Party, also criticized Kim's proposal, arguing it would force companies to shoulder broader "social responsibility" beyond shareholder returns and existing tax obligations. The controversy highlights how AI-driven growth is reshaping South Korea's economy and labor relations, as the country grapples with how to balance corporate competitiveness with demands for broader distribution of wealth generated by the semiconductor boom.
"We hope (Samsung's case) will serve as an opportunity to foster active social discussions on desirable ways for companies to share and distribute profits, so that labor-management relations in our society can move beyond pursuing individual interests and build a mutually beneficial partnership," Labor Minister Kim Young-hoon said on Monday.