Discussion surrounding 'Korean social solidarity wage' postponed to after local elections Labor Minister Kim Young-hoon speaks to reporters at the Ministry of Employment and Labor in Sejong on Wednesday, when he first floated the idea of redistributing "excess profits" from the chips industry. (Yonhap) Labor Minister Kim Young-hoon’s call for discussions on the potential redistribution of major conglomerates’ "excess" profits has sparked controversy, after he described semiconductors as a “public good” when speaking about recent debate concerning the distribution of the profits of Samsung Electronics, South Korea’s largest company.Kim on Wednesday told reporters that there should be talks over a “Korean social solidarity wage” involving the distribution of the company’s remaining profits after tax. He added that a forum on the matter would be held Monday.“The success of Samsung Electronics today was possible due to a combination of the dedicated hard work of the company and its workers, as well as the efforts of the central and local governments and society,” Kim said. “If they agree to redistribution, the only solution is social dialogue.”“Samsung Electronics may be a private firm, but semiconductors have already become a public good for us, living in the age of artificial intelligence,” he added.Forum delayed after backlashThe minister’s comment sparked fierce backlash, as the scheduled forum was postponed to an unspecified date in June, following the local elections to be held Wednesday. Opponents criticized the idea, saying the government was seeking to interfere with profits earned through normal business operations.Kim defended his idea Friday at an appearance on YouTube channel OhMyTV. He denied the notion of it “bordering on communism” and pointed out that Samsung’s overall performance incentive system was already based on the sharing of profit.“The question is whether it is right for profit sharing to remain only with full-time employees at the parent company,” Kim said. “I am saying we should discuss as a society whether there is a way to grow together with subcontractors as well.”Kim’s remarks, along with his call for a social solidarity wage system, have sparked backlash from both the ruling and opposition blocs.The main opposition People Power Party compared Kim’s remarks to the Aesop fable “The Goose That Laid the Golden Eggs,” in which a greedy farmer kills a goose that lays golden eggs by cutting it open in search of more.“In other competing countries, governments and companies are joining hands to provide financial and fiscal support, as well as tax cuts, to foster research and development in cutting-edge industries and invest in facilities,” People Power Party Floor Leader Rep. Song Eon-seog said Friday.“But the Lee Jae Myung administration is inundated with an old, out-of-date ideology, and is rolling up its sleeves to cut open the goose,” Song added.Concerns were also raised from within Lee’s own Cabinet.Industry Minister Kim Jeong-kwan appeared to push back against the labor minister’s remarks Friday, saying, “profits from the chip industry must lead to productive reinvestment for the future.”The presidential office remained cautious.Presidential spokesperson Kang Yu-jung said during a briefing Thursday that the labor minister appeared to have raised the issue as one of various social problems and policy tasks that require open discussion.“We hope there will be opportunities for diverse public debate through future forums,” Kang said.The Labor Ministry said it was “readjusting the schedule to gather a broader range of opinions,” but some observers interpreted the delay as an attempt to avoid further controversy ahead of the June 3 local elections.Lee’s redistribution drive?The controversy comes amid a broader push by the Lee administration to raise the issue of redistribution in connection with emerging industries.On May 11, chief presidential secretary for policy Kim Yong-bum called for an AI-related national dividend.“Part of the fruits of this age of AI infrastructure must be structurally returned to the people,” Kim wrote on social media.Following backlash, President Lee clarified that Kim’s remarks referred to “excess tax revenue from excess profits in the AI sector.”However, the labor minister’s remarks Wednesday have drawn heavier criticism, as critics say they go beyond the government’s use of tax revenue and appear to directly target corporate profits.“I am not saying we should cut open the goose,” Kim said in the later YouTube interview. “I am saying we should create another, even larger goose.”Experts urge cautionExperts say that while discussion on redistribution is necessary, the government and its officials must be cautious in how they frame the issue.Terms such as “public good,” “social solidarity wage” and “social redistribution” could make it appear as though the government is trying to steer the discussion in a predetermined direction, experts said.“It is a meaningful discussion,” Konkuk University professor Yoon Dong-ryeol told local news agency Newsis. “The government, however, must be cautious about deciding a certain redistribution rate or creating a blanket policy to apply to all companies.”“As the semiconductor industry requires tens of trillions of won in upfront investment to secure competitiveness in AI, a short-term approach of distributing all excess profits could conflict with long-term competitiveness,” Yoon added.Labor groups have also called for a clearer definition of what constitutes “excess profit.”