Gov't denies rumors over new think tank on utilizing chipmakers' huge profits

Industry Minister Kim Jung-kwan attends a meeting held at Korea Trade Insurance Corporation's headquarters in Seoul, Wednesday. Courtesy of Ministry of Trade, Industry and Resources

Korea's industry ministry on Wednesday denied recent rumors that the government is pushing to establish a new think tank tasked with utilizing chipmakers' massive profits generated by the global artificial intelligence (AI) boom.

"The rumor circulating online that Seoul has sent letters to Samsung Electronics and SK hynix to launch a government-led think tank related to the sharing of profits is completely false," the Ministry of Trade, Industry and Resources said in a statement.

The rumor came amid growing discussions in Korea over how to utilize additional tax revenue generated by chipmakers' record profits to support long-term growth.

"We will take strong action against the spread of such misleading information with malicious intent by referring the matter to investigative authorities," it added.

Last month, President Lee Jae Myung suggested a basic income grant as a way to "distribute some of the excess profits to the general public" during an interview with The Economist, referring to the recent debate over how to share the windfall gains of chipmakers.

The presidential office later explained the remarks were not aimed at specific companies, but referred to a challenge Korea will eventually have to address amid the AI transition.