Bae Kyung-Hoon, South Korea’s Minister of Science and ICT, speaks during a memorandum of understanding signing ceremony in Seoul, South Korea, Monday, April 27, 2026. Google DeepMind is partnering with South Korea on the country’s K-Moonshot project, which uses AI to solve complex scientific problems. Photographer: SeongJoon Cho/Bloomberg via Getty Images
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South Korea must ensure that the wealth created by artificial intelligence benefits the general public, Deputy Prime Minister Bae Kyung-hoon said, even as the country grapples with social tensions at Samsung Electronics and a stock market rally increasingly fueled by its biggest chipmakers.
Speaking to CNBC’s Lisa Kim on Friday, Bae said the AI era raises broader questions about how technology-generated wealth should be distributed, whether AI could worsen inequality and whether it could lead to job losses.
“Recent conflicts between labor and management can also be seen as part of this broader trend,” he added, referring to Samsung Electronics, where a proposed 18 day strike by union workers was suspended Wednesday after government officials intervened at the last minute to prevent a walkout.
The workers had demanded formalization of bonuses in their contracts, the removal of bonus caps and the payment of 15% of Samsung’s operating profits as bonuses.
A tentative agreement was reached on Wednesday, with the union voting on the plan between Friday and May 27.
Bae does not expect such industrial action to be a one-off event.
“In the AI era, more and more of these very large companies will continue to emerge. In this process, conflicts between labor and management may continue to arise, and when they do arise, it will be important to resolve them judiciously through dialogue,” Bae said.
He pointed the finger at automaker Hyundai and said there were “many concerns and worries” about the integration of Atlas Robots – manufactured by Boston Dynamics – in its manufacturing process.
What South Korea needs is not only the ability to create “great wealth” through AI, but also to judge how wealth and technology can be used properly, and the impact it will have on the public, Bae said.
“The benefits of AI must also benefit the public,” Bae added, saying Seoul is deeply focused on building an “AI-inclusive society, one where no one is left behind in the AI era.”
His comments come after South Korean presidential official Kim Yeong Beom proposed the Facebook on May 12 to distribute excess tax revenue generated by Korea’s artificial intelligence and semiconductor sectors to citizens, causing market turmoil.
A civil servant later would have clarified that the message was Kim’s opinion and not a subject for formal discussions.
Fragile gathering of KospiBae, who also holds the South Korean Minister of Science and Technology portfolio, was also asked about the sharp rises in South Korean markets, led by heavyweights Samsung and SK Hynix, which have seen their stocks rise due to the AI boom.
Samsung has seen a gain of nearly 144% year to date, and SK Hynix is up nearly 200% since January 1. Kospi itself is now more than 86% higher than in 2026, surpassing last year’s gain of around 75%.
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Kospi index, cumulative year
Asked if he sees the concentration of earnings in the technology 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 a breakthrough in this 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 form the fundamental foundation. In addition, Korea is trying to develop the entire AI capabilities, including various hardware equipment, software and related services.”
— CNBC’s Lisa Kim and Blair Baek contributed to this report.
