Proposal: Use semiconductor windfall profits for national dividend fund

A coalition of civic and labor groups is calling for a national dividend fund to distribute the windfall profits from South Korea's booming semiconductor industry. The groups argue that the nation's significant investment and support for the sector, along with contributions from workers, suppliers, and local communities, warrant a societal sharing of the current "super cycle" profits.

"We must not let the current super boom become a temporary money grab or a poison that further exacerbates inequality," said Oh Joon-ho, director of the Basic Income Policy Research Institute, at a forum hosted by the Citizens' Coalition for Economic Justice and the Federation of Korean Trade Unions. "We need to build a system that shares the fruits of innovation with everyone."

“

We must not let the current super boom become a temporary money grab or a poison that further exacerbates inequality. We need to build a system that shares the fruits of innovation with everyone.

Oh proposed creating a national fund seeded with increased tax revenues from the semiconductor boom over the next three to five years. He also suggested raising corporate taxes on mega-corporations by adjusting the top tax bracket and converting various tax credits offered to semiconductor companies into public equity for the fund. Projections indicate that such a fund, with annual government investment and returns from economic growth, stock value appreciation, and fund management, could provide monthly dividends of 108,000 won per person after 10 years, rising to 290,000 won after 20 years, and 620,000 won after 30 years.

Other suggestions included having the state receive new shares from semiconductor companies annually as a way to recoup profits, which could then be used for public welfare, reducing inequality, and supporting future generations. Additionally, a solidarity fund was proposed to mitigate wage gaps within the semiconductor industry, specifically to support subcontracted workers with wage compensation, welfare, education, and safety improvements.

“

The primary use of excess tax revenue from the semiconductor industry should be to alleviate inequality within the industry and make the industrial ecosystem sustainable.