Labor minister calls excess-profit plan 'social reinvestment,' not forced redistribution

Amid continuing controversy over his remarks calling for the social redistribution of large corporations' excess profits, Minister of Employment and Labor Kim Young-hoon has again drawn a line, saying the government has no intention of forcibly dividing up corporate earnings.

In an interview released Sunday by Newsis, Kim addressed the furor over his "social redistribution of excess profits" comments, saying the concept reflects "stakeholder capitalism as opposed to shareholder capitalism" and that he was "not calling for communism."

Earlier, at a press roundtable last month, Kim said semiconductors had "already become a public good in the AI era" and called for a discussion on how large corporations' excess profits could be put to social use. His remarks drew criticism from parts of the business community, who said they amounted to excessive government interference in corporate earnings.

Kim cited Samsung Electronics' OPI — an over-performance incentive bonus — as an example, describing it as "a system in which, when a company exceeds the targets it set for itself, the excess profit is shared among its members."

"The problem," he said, "is that the scale has grown so large that it now requires social discussion."

Kim said the semiconductor industry's achievements were not the result of corporate and worker effort alone.

"The innovation of companies and the dedicated efforts of engineers cannot be denied," he said, "but the results were also shaped by social contributions — corporate tax support, electricity and water supply, and infrastructure development."

"If the gains were created socially, the distribution process should not be confined to the corporate level alone," he added. "Social redistribution is, in itself, reinvestment."

He stressed, however, that this did not mean the government would forcibly reclaim or allocate corporate profits.

"This is absolutely not about splitting everything with unions while the going is good," Kim said. "I think the criticism — that we would divide it all up now and have nothing left later — has a point."

Kim also outlined his vision for channeling excess profits into strengthening the industrial ecosystem's competitiveness.

"When materials, parts and equipment suppliers become competitive, the quality of finished products rises as well," he said. "Having primary contractors and subcontractors grow together is genuine reinvestment."

He also warned against complacency, saying, "The moment innovation stops, you fall behind. Where did Nokia go? Where did Sony go? Samsung Electronics could end up the same way."

He said excess profits should be viewed not merely as a source of internal bonuses but as capital for future innovation and industrial competitiveness.

Kim was cautious, however, about spelling out specific policy mechanisms.

"The moment I name a particular approach, social dialogue becomes impossible," he said, adding that adjusting contract prices with suppliers and investing in talent development were "just examples."

"The Samsung Electronics situation was a reminder of how important dialogue is," he said. "Experts and stakeholders need to deliberate intensively to find the best solution."