AI surplus tax revenue should fund youth, regional growth: ex-aide

Former presidential aide Ha Jung-woo has called for strategic investment of surplus tax revenue generated by the artificial intelligence industry. Speaking at the Hankyung Economic Research Institute's Jeju Summer Forum, Ha argued that the inevitable job losses and widening economic disparities resulting from AI-driven productivity gains necessitate a focus on youth development and regional growth.

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Artificial intelligence will inevitably lead to job losses as corporate productivity increases. We could see jobless growth and K-shaped polarization.

Ha warned of a "K-shaped polarization" where economic benefits are concentrated among a few, potentially leading to social problems and hindering sustainable growth. He stressed that both the nation and corporations must actively manage these societal impacts. "If the fruits of growth are concentrated in the hands of a few, social problems will arise, and it will not be sustainable," he stated.

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We must invest surplus tax revenue not only in future growth engines but also in the development of our youth and regions. Resources should also be used for areas where local communities can leap forward through AI transformation (AX).

The former aide highlighted South Korea's potential to become a leading "intelligence exporter." He pointed to the global trend of big tech companies building data centers to secure "intelligence factories." Ha explained that "tokens" are the fundamental units of intelligence that AI uses to understand and generate results, and that integrating this intelligence into robots would position South Korea as a leader in exporting intelligence.

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If the fruits of growth are concentrated in the hands of a few, social problems will arise, and it will not be sustainable. The nation and corporations must take care of this together.

Referencing OpenAI CEO Sam Altman's "Singularity is Memory" remark, Ha underscored the critical role of memory in AI development. He noted that South Korea's world-class memory technology provides a significant competitive advantage. Furthermore, Ha advised that advanced AI will likely become subject to export controls, making it imperative for the nation to possess at least one superior AI capability to navigate these restrictions, requiring coordinated efforts between the government and industry.

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Becoming an intelligence exporting country is the direction our country must take. Global big tech companies are building data centers to secure intelligence factories.