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Lee Wants S. Korea to Lead in AI Integration, Defense Sales
By Reuters | 07 Jun, 2026

South Korean President Lee Jae Myung plans to use surplus taxes from the record profitability of SK Hynix and Samsung to help workers and society share in the prosperity.

South Korean President Lee Jae Myung delivers a speech during a ceremony marking the country's 71st Memorial Day to commemorate veterans and independent activists, at the National Cemetery in Seoul, South Korea, June 6, 2026. REUTERS/Kim Hong-Ji/Pool

South Korean President Lee Jae Myung said on Monday the gains of business success should be shared throughout society and the government will devise a plan to effectively use the surplus tax revenues generated from the country's semiconductor sector.

Lee was speaking at a press conference marking one year in office after he won the presidency following a failed bid to impose martial law led to the ouster of his predecessor.

Lee pledged to make South Korea the first country to fully integrate AI across industries and the preferred partner for other countries seeking to be self reliant on defence.

South Korea's Samsung Electronics and SK Hynix have reported record profits in the first quarter, driven by a surge in AI adoption that has fuelled global demand for memory chips.

Lee said there is a clear distinction between corporate earnings growth and increases in windfall tax revenue, but debate will continue over whether workers and society should share in the gains of companies that have expanded rapidly.

While such measures could risk undermining industrial competitiveness, the success also creates an opportunity to rethink the country’s growth strategy, he said.

"We will determine how to most effectively utilize the surplus tax revenues generated by the semiconductor industry," he said, adding the government will soon unveil a large-scale investment project, without elaborating.

On the economic impact of the war in Iran, Lee said price pressures have been rising nationwide, but the fallout is unlikely to trigger a crisis for South Korea.

(Reporting by Kyu-seok Shim, Joyce Lee and Jack Kim; Editing by Tom Hogue and Shri Navaratnam)