Industry minister urges reinvestment of corporate profits amid contrasting views from labor minister
Published: 29 May. 2026, 17:20
Updated: 29 May. 2026, 18:48
![Industry Minister Kim Jung-kwan speaks during a meeting with economy-related ministers on May 29. [NEWS1]](https://koreajoongangdaily.joins.com/data/photo/2026/05/29/90daff78-3fce-465b-8fb9-1dad12054328.jpg)
Industry Minister Kim Jung-kwan speaks during a meeting with economy-related ministers on May 29. [NEWS1]
"Success in the era of AI is determined by speed and scale," wrote Industry Minister Kim Jung-kwan on X, formerly known as Twitter, on Friday. "The highest priority in the use of corporate profits should be productive reinvestments."
His remarks came as debate grows over how corporate profits should be used, particularly as semiconductor companies post operating profits worth hundreds of trillions of won.
“The race for leadership in AI and semiconductors will not wait,” Kim further wrote. “The moment the pace of investment and innovation slows, other countries will take the leading position. What we need now is not hesitation but determination, not dispersion but concentration.”
Kim's comments contrasted with remarks by Labor Minister Kim Young-hoon, who called for the social redistribution of excess profits.
At a press briefing on Tuesday, the labor minister said he would explore the possibility of a so-called Korean-style solidarity wage system. The system, inspired by Nordic countries, aims to reduce wage disparities between primary contractors and subcontractors within the same industry.
“I want to lead social dialogue in a direction where the primary contractors and subcontractors thrive together, local communities benefit and national wealth accumulates,” Kim Young-hoon said during the press briefing.
![Labor Minister Kim Young-hoon smiles after Samsung Electronics management and its labor union strike a wage deal on May 20. [KIM SEONG-RYONG]](https://koreajoongangdaily.joins.com/data/photo/2026/05/29/c0812086-6df6-4435-b30d-df62036a1bf7.jpg)
Labor Minister Kim Young-hoon smiles after Samsung Electronics management and its labor union strike a wage deal on May 20. [KIM SEONG-RYONG]
Kim also said he plans to hold a debate on the Korean-style solidarity wage system on Monday.
The labor minister's remarks prompted concerns among business groups that the government could seek to pressure large corporations into sharing profits.
In response, the Ministry of Employment and Labor released a statement Thursday rejecting claims that the government was seeking to force large corporations to redistribute profits.
“Such claims are completely inconsistent with the purpose and intent of the social dialogue proposed by the government,” the ministry's statement read.
The controversy has since spread into the political sphere. Lawmakers from the People Power Party criticized the proposal, describing it as akin to “cutting open the goose that lays golden eggs.”
Criticism has also centered on the term "excess profits," with some arguing that it is inappropriate for the government to define what constitutes excess corporate earnings.
Minister Kim Young-hoon previously described excess profits as earnings that remain within a company after taxes have been paid.
The labor minister appeared on the OhmyTV YouTube channel, run by media outlet OhmyNews, on Friday to refute criticism.
“Some people call this communism, but how is pursuing a social dialogue a communist idea?” Kim said.
As the controversy continued to grow, the Labor Ministry postponed the solidarity wage system debate it planned to hold on Monday. The Labor Ministry said the decision was intended to gather a wider range of opinions, though many interpreted it as an effort to prevent the issue from generating further political controversy ahead of the June 3 local election.
This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM YEON-JOO, NAM SOO-HYOUN [[email protected]]
with the Korea JoongAng Daily
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