Was Kim Yongbeom’s “AI National Dividend” the Cause of the KOSPI Plunge? Examining the SNS Post and Market Trends

Kim Yongbeom’s Facebook Posts Emerge as Key Channel for Lee Jaemyung Administration’s Economic Policy Signals
This Time, He Proposes Principles for Utilizing Excess AI Tax Revenue... In Line with President Lee’s "AI Basic Society" Vision
Bloomberg Interprets as "Triggering Market Volatility"... Difficult to Draw a Direct Causal Link

Presidential Office Dismisses Fallout, Calling It "Personal Opinion Unrelated to Internal Review"
Opposition Attacks as "Recouping Corporate Profits," Ruling Party Responds: "Clear Case of Shifting the Debate"
Calls for More Careful Messaging During Sensitive Times

Kim Yongbeom, the policy chief at the presidential office, has emerged as a key source for gauging the direction of President Lee Jaemyung's economic policy through his posts on social networking services (SNS). Covering topics from the semiconductor boom and KOSPI revaluation to the issue of excess tax revenue in the era of artificial intelligence (AI) infrastructure, Kim's posts have served as a channel for revealing the awareness of core government aides ahead of official policy announcements. However, as the line between personal opinions and policy signals remains ambiguous, both the market and political circles have repeatedly interpreted his comments as immediate government policy, fueling ongoing controversy. This has led to calls for more meticulous message management.

Yonhap News

The controversy surrounding the sharp intraday drop in the KOSPI on May 12 originated from a lengthy Facebook post titled "A Nation on a Different Level: Korea's Long-Term Strategy in the AI Era," which Kim published on the night of May 11. Kim diagnosed that, amid global competition for AI infrastructure, the Korean economy could shift from its traditional cyclical export model toward a technology-monopolistic economic structure. The contentious point was his mention of a so-called "national dividend," which he raised as an idea to discuss the principles for utilizing excess tax revenue and the fruits of economic growth that might arise during the expansion of AI infrastructure. He prefaced his remarks by stating, "If there is no excess tax revenue, the national dividend is a pipe dream," but added that if Korea’s strategic position in the AI infrastructure supply chain leads to a structural boom and excess tax revenue, careful thought should be given to how that money is used.

He also presented several related proposals. Kim suggested that reducing national debt or accumulating reserves in the form of a sovereign wealth fund could be options. He specifically mentioned assets for youth startups, basic income for rural communities, support for artists, strengthening pensions for the elderly, and AI transformation education accounts as potential uses. Rather than proposing a direct cash payout, his suggestion was closer to institutionalizing the distribution of growth dividends in the AI era through a new social contract.

This latest post aligns with Kim’s recent economic ideas. In an earlier post, "KOSPI 7,500 and at the Threshold of 10,000," he argued that the semiconductor boom is difficult to fully capture with existing GDP statistics and revenue forecasting systems, and, given the record-breaking tax revenue, called for an overhaul of these outdated systems. The current post can be seen as a follow-up discussion on the principles for utilizing such tax revenues.

This also fits with President Lee Jaemyung’s long-standing vision of an "AI Basic Society (Basic Income)." President Lee has repeatedly emphasized the need for institutional mechanisms to socially distribute the fruits of growth, noting that while AI boosts productivity and corporate profits, it may also exacerbate job and income polarization. However, as controversy spread on the day, the presidential office drew a clear line, stating that Kim’s post should not be immediately interpreted as government policy. A presidential office official said, "The content posted by the policy chief on SNS is his personal opinion and is unrelated to internal discussions or reviews within the presidential office."

Bloomberg Says Kim’s SNS Post Triggered Stock Volatility... But Was There a Causal Link?

As the KOSPI index took a breather just below the 8000 mark, on the 12th, an employee was monitoring the stock and foreign exchange markets from the dealing room at Hana Bank's headquarters in Jung-gu, Seoul. On the day, the KOSPI opened at 7,953.41, up 1.68% from the previous trading day. May 12, 2026 Photo by Jo Yongjun

On the same day, Bloomberg published an article titled "Korean Stock Market Roiled by AI Profit National Dividend Plan," reporting that Kim’s national dividend proposal fueled investor confusion and triggered sharp volatility in the Korean stock market. A follow-up report noted that the KOSPI dropped as much as 5.1% intraday, but pared losses only after Kim clarified that he was not proposing a new windfall tax, but rather the use of excess tax revenue generated by the AI boom.

Bloomberg wrote, "A high-ranking Korean policymaker said that taxes on AI profits should be used to pay 'dividends' to the people," and added that this showed increasing pressure within the government to redistribute the gains from the AI boom, which has enriched semiconductor companies like Samsung Electronics and SK hynix. Bloomberg also cited factors such as the market’s heavy weighting toward Samsung Electronics and SK hynix, the burden from the KOSPI’s surge this year, and foreign investor selling. However, it diagnosed that Kim’s SNS post "brought significant volatility to the Korean stock market, with the KOSPI dropping as much as 5.1% intraday as investors struggled to interpret the scope of his proposal."

However, when examining the timing of Kim’s SNS post and the market’s movement, the causal relationship appears uncertain. On that day, the KOSPI opened at 7,953.41, up 131.17 points from the previous trading day. In the early session, it rose as high as 7,999.67, approaching the 8,000 mark by just 0.33 points. Despite Kim’s post having been released the night before, the market started higher, reflecting the strength in U.S. semiconductor stocks and expectations of an AI rally, rather than a sharp drop. Samsung Electronics and SK hynix followed a similar pattern. Samsung Electronics hit a new all-time high of 291,500 won in early trading, and SK hynix also reached a record high of 1,967,000 won.

The market trend reversed around 10 a.m. After peaking in early trading, the KOSPI pared its gains and at one point dropped to 7,421.71 during the session, before closing at 7,643.15. Bloomberg noted that some of the losses were recouped after Kim further explained that he was not proposing a new windfall tax on corporate profits but advocating for the use of naturally increased excess tax revenue. However, in the afternoon, the index widened its losses again before the market closed. Many analysts pointed to a combination of factors as a more natural explanation for the market’s behavior, including the burden from the recent rapid rally, profit-taking by foreign investors, concerns ahead of the U.S. Consumer Price Index announcement, and instability in the Middle East.

Political Battle Over Kim’s Remarks... Ruling and Opposition Parties Clash, Accusations of Red-Baiting

As the controversy grew, opposition parties, including the People Power Party, labeled Kim’s proposal as "recouping corporate profits" and "anti-market policy," and stepped up their attacks. They questioned whether it was appropriate for a key presidential aide to use terms like "excess profits" and "national dividend" at a time when the market was sensitive. Even if the policy chief’s comments were personal views, they argued, the market could interpret them as government policy signals, making them inappropriate. In particular, Jang Donghyuk, leader of the People Power Party, argued at the Gyeongbuk Provincial Party’s election campaign launch, "Isn’t the government taking and redistributing what companies earn something only a communist party would do?"

However, some counter that interpreting Kim’s comments as advocating forced corporate dividend policies or profit confiscation is an exaggeration. There was no official proposal for tax reform or a measure to seize corporate profits. Rather, Kim’s suggestion was closer to a long-term strategy, arguing that if the AI and semiconductor boom leads to excess tax revenue, principles for its strategic use at the national level should be established in advance, rather than spending it quickly in the short term.

Ando Geol, an assemblyman from the National Assembly’s Planning and Finance Committee and a member of the Democratic Party, explained that Kim’s proposal is about preemptively designing systematic principles for utilizing large-scale excess corporate tax revenue, rather than spending it indiscriminately and without principles. On Facebook, he wrote, "It is not about the government forcibly sharing corporate profits," and criticized, "Forcing the narrative as though the government would compel companies to directly distribute profits to the people is a clear case of shifting the debate." He also pointed out that attacking the proposal as "socialist" by resorting to red-baiting is simply wasteful politics that frames future strategy discussions as political strife.

However, some within the ruling party argue that more measured messaging is needed, given the sensitive timing ahead of local elections. One ruling party official said, "Public posts by key government aides have the advantage of broadening the scope of policy ideas and bringing long-term agendas to public attention early," but warned, "In a sensitive situation, a single word could be interpreted as a policy signal, fueling controversy and increasing market volatility."

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