[Editorial] In an era of hyper-competition, profits should be reinvested rather than distributed

A forum hosted by the Ministry of Employment and Labor (MOEL) to discuss corporate profits and the future of labor in the era of the Artificial Intelligence (AI) transition was held on the 14th. The debate over redistributing corporate profits, which began with the Samsung Electronics performance bonus dispute, has now entered an official public forum. At the forum, proposals were raised for a special-purpose tax to socially recover excess profits from large companies, as well as for establishing a national wage commission. Labor groups argued for the social redistribution of corporate gains, while business groups called for greater corporate investment. Above all, it is important to find a solution that spreads the benefits of AI innovation across society without damaging corporate competitiveness. The goal should not be to rush into sharing immediate profits, but to actively prepare for the long term.
It is not something to dismiss lightly when the gains from the semiconductor boom are concentrated in a limited group, and the gaps between prime contractors and subcontractors, large and small firms, and regular and non-regular workers continue to widen. We must also prepare for concerns that productivity gains from technological innovation could reduce youth employment and eliminate existing jobs. But it would be wrong to seek a solution by forcibly dividing corporate profits.
A special-purpose tax requires greater caution. Companies already pay corporate tax on their profits. If the government arbitrarily sets an excess threshold and imposes an additional levy, it will be difficult to avoid accusations of double burden. In a situation where rival countries are using subsidies and tax incentives to attract advanced companies, imposing extra costs every time profits rise could undermine domestic investment and corporate value.
A national wage commission also needs to be approached carefully. It is true that there is a need to comprehensively study fragmented wage policies, including minimum wages and minimum compensation for platform and freelance workers. However, if a state body effectively directs wage increases and bonus distribution at private companies, it could turn into a massive wage-control apparatus. Wages and performance bonuses should, in principle, be determined by each company's business conditions and labor-management agreement.
What the government should urgently do now is establish institutional safeguards to prevent unions from making unreasonable demands for N% performance bonuses. After Samsung Electronics and SK hynix, the Hyundai Motor Union is now also demanding an N% bonus and has gone on strike. The global auto industry is in the midst of a dramatic upheaval as autonomous driving and electric vehicles spread, and carmakers are locked in a life-or-death technology race. Despite receiving exceptional treatment, the Hyundai Motor Union has declared negotiations deadlocked, demanding 30% of net profit instead of helping the company. If unions continue down this path, corporate profits will shrink and jobs will be further squeezed. The government needs to take stronger legal measures to rein this in.
Countries around the world are pouring astronomical sums into AI, Semiconductors, and data centers as they compete in a race for overwhelming technological advantage. If the timing of investment is missed even once, technology, talent, and supply chains can all be lost at the same time. As Minister Kim Young-hoon said, investment and distribution do not need to be seen as a simple either-or choice. But one principle must remain clear: without investment, there will be no future gains to share. The government should focus its policy capacity on supporting a virtuous cycle of corporate profit reinvestment rather than introducing new taxes.