The discussion was initiated by Kim Yong-bom, head of the Presidential Policy Office, according to Financial Times (FT). In a Facebook post, he said that the rapid growth of the semiconductor sector could lead to a “supercycle” that would bring significant tax revenues to the state. He said it was important to decide in advance how to utilize these revenues so that they do not increase social inequality.
He later clarified that he was not proposing to introduce a new corporate income tax, but was talking about the possible distribution of “excess tax revenues” arising from the growth of the industry.
Market Reaction: Stocks Fall
The market reacted sharply, with Samsung Electronics shares falling 3.5% and SK Hynix down 1.4%. The KOSPI index fell by almost 5%.
The cause for nervousness was that the words of the official were taken as a signal of a possible strengthening of the state role in the redistribution of income of the technology sector. As the FT notes, Kim holds a position that affects the country’s economic policy, so his statements are perceived by the market particularly sensitive.
The context reinforces the scale of what is happening. According to the FT, the market value of Samsung Electronics recently surpassed $1 trillion, and SK Hynix shares have nearly tripled since the beginning of the year.
Chip production is at an all-time high
The memory sector is actually running at the limit right now, with orders for high-performance chips for artificial intelligence already fully utilizing manufacturers’ capacity.
Financial results reflect this growth. Samsung and SK Hynix have a combined operating profit of about 90 trillion won (roughly $61 billion) in 2025, about 3% of South Korea’s GDP. Nomura analyst K. W. Chang estimates that their combined profits this year could reach 600 trillion won (about $413.8 billion), or nearly a quarter of the country’s economy.
This has sparked debate in the market, with some investors saying unpredictable policy risk and others saying more transparent signals from the government are needed.
