Differences are emerging between the Ministry of Trade, Industry and Resources and the Ministry of Employment and Labor (MOEL) over how to dispose of excess profits at semiconductor giants such as Samsung Electronics and SK hynix. Minister Kim Jung-kwan of the Ministry of Trade, Industry and Resources said, "What is needed now is concentration, not dispersion," adding that semiconductor corporations' profits should be used for reinvestment to secure future competitiveness. Earlier, Minister Kim Young-hoon of the Ministry of Employment and Labor (MOEL) argued that excess profits should be redistributed socially.
Minister Kim Jung-kwan said on the 29th on social media (SNS), "Victory in the age of artificial intelligence (AI) is determined by overwhelming speed and scale," adding, "It is a time of utmost urgency to link the profits generated by the semiconductor industry to 'productive reinvestment' for the future."
He went on, "Even a single missed investment opportunity can collapse the industrial ecosystem and drive corporations onto the path of losers, from which recovery is difficult," and said that if corporations make bold investment decisions, the government will back them with a package of support, including the supply of key infrastructure such as power and water, and tax, finance, and regulatory innovation.
The remarks are being interpreted as the industry ministry's move to put the brakes on the debate over "social distribution of excess profits" ignited by Minister Kim Young-hoon.
Earlier, on the 27th, Minister Kim Young-hoon told the press corps that "the only solution to discuss ways to socially distribute large corporations' excess profits is social dialogue," signaling plans to hold an emergency forum.
As criticism poured in that the government was seeking to artificially intervene in corporations' profits, the Minister explained on SNS a day later, "The government has neither the authority nor the intention to forcibly intervene in corporations' legitimate profits."
On the 29th, appearing on a YouTube channel, Kim pushed back squarely against the criticism. "Because we talk about sharing excess profits, some even claim this is communist, but how is social dialogue talk of communism?" Kim asked, adding, "Lee Kun-hee, the late chairman, also called partner companies 'another family.' We are saying we should find a way for principals and subcontractors to live together."
Kim noted that Samsung Electronics already has a performance incentive (OPI) system, but the benefits remain with regular employees and the principal contractor, and argued, "When partner company workers' pride rises, delivery quality improves, and ultimately the principal contractor's product completeness improves as well."