During a memorandum of understanding ceremony held in Seoul, South Korea, on Monday, April 27, 2026, Bae Kyung-Hoon, the country’s Minister of Science and ICT, emphasized the importance of ensuring that the wealth generated by artificial intelligence benefits the broader public. The event marked a significant partnership between Google DeepMind and South Korea on the ambitious K-Moonshot project, which aims to leverage AI to tackle complex scientific challenges. The ceremony was captured by photographer SeongJoon Cho for Bloomberg via Getty Images.
South Korea currently faces pressing issues related to labor disputes at Samsung Electronics and a stock market surge driven by its leading semiconductor companies. Deputy Prime Minister Bae Kyung-hoon addressed these concerns in an interview with CNBC’s Lisa Kim, highlighting the critical questions surrounding the distribution of AI-generated wealth. He raised concerns about whether the rise of AI could exacerbate inequality or lead to job displacement.
Bae noted that the recent labor-management conflicts, particularly at Samsung Electronics, reflect this ongoing trend. The tech giant narrowly avoided an 18-day strike by unionized workers, which was called off at the last moment following government intervention. The workers had been pushing for a formal integration of bonuses into their contracts, the removal of bonus caps, and a demand for 15% of Samsung’s operating profits to be allocated as bonuses.
Speaking to CNBC’s Lisa Kim on Friday, Bae said the AI era has raised broader questions over how wealth generated by the technology should be distributed, whether AI could worsen inequality and whether it could lead to job losses.
“Recent labor-management conflicts can also be seen as part of this broader trend,” he added, referring to Samsung Electronics, where a planned 18-day strike by unionized workers was suspended Wednesday after government officials stepped in at the last minute to head off a walkout.
Workers had demanded a formalization of bonuses in their contracts, the scrapping of bonus caps, and a payout of 15% of Samsung’s operating profits as bonuses.
A tentative deal was reached on Wednesday, with the union voting on the plan from Friday to 27 May.
Bae does not expect such industrial action to be a one-off event.
“In the age of AI, more of these super-large companies will continue to emerge. In that process, labor-management conflicts may continue to arise, and when they do, it will be important to resolve them wisely through dialogue,” Bae said.
He pointed at automaker Hyundai, and said that there are “many concerns and worries” about its integration of Atlas robots – made by Boston Dynamics – into its manufacturing process.
What South Korea needs is not only the ability to create “great wealth” with AI, but to also judge how the wealth and technology can be used properly, and the impact it will have on the public, Bae said.
“The benefits of AI must also go to the public,” Bae added, saying that Seoul is deeply focused on building an “AI-inclusive society — a society where no one is left behind in the AI era.”
His comments come after South Korean presidential official Kim Yeong Beom proposed on Facebook on May 12 to distribute excess tax revenue generated from Korea’s artificial intelligence and semiconductor sectors to citizens, sparking turmoil in markets.
An official later reportedly clarified that the post was Kim’s opinion, and not a subject of formal discussions.
Shaky Kospi rally
Bae, who also holds the portfolio of South Korea’s minister for science and technology, was also asked about sharp gains in South Korean markets, led by heavyweights Samsung and SK Hynix which have seen their shares rise due to the AI boom.
Samsung has posted a year-to-date gain of almost 144%, and SK Hynix has risen by almost 200% from Jan 1. The Kospi itself is now more than 86% higher in 2026 so far, surpassing last year’s gain of about 75%.
Kospi index, year to date
When asked if he saw the concentration of gains in the tech sector as a weakness, Bae replied: “While these two companies clearly have their own strengths, there is also an ecosystem of related companies that support semiconductor production.”
South Korea is also now trying to establish a competitive advantage in physical AI, Bae said, expressing confidence that Seoul can make inroads into that sector.
Physical AI generally refers to AI embedded in machines such as robots, vehicles and industrial systems, allowing them to sense, reason and act in real-world environments.
“In a way, semiconductors and AI infrastructure provide the fundamental foundation. On top of that, Korea is trying to build out the full spectrum of AI capabilities, including various hardware equipment, software, and related services.”
