[Anchor]

While the semiconductor boom has raised economic growth projections by 1.5 times, how to distribute those massive profits remains a social challenge. The government held its first official forum today (July 14), but labor and management were divided over whether to prioritize investment or redistribution.

Reporter Baegun has the story.

[Reporter]

The Samsung Electronics performance bonus negotiations, which nearly led to a strike last May, left behind the question of "with whom and how" the massive profits from the semiconductor boom should be shared.

The government held its first forum to discuss whether a new social contract, different from the existing one, is needed.

[Kim Young-hoon / Minister of Employment and Labor: Could the astronomical AI achievements be the total sum of profits created by our society together? We need a new social contract that fits the new era.]

At the forum, proposals were made to use a portion of semiconductor excess profits for subcontracted workers and young people.

There was also a suggestion that a "special purpose tax" specifically for the semiconductor industry could be considered.

[Jung Heung-joon / Professor of Business Administration at Seoul National University of Science and Technology: I hope it will be focused on the semiconductor industry, such as filling the shortage of engineers or creating jobs for young people.]

Proposals were also made to base performance bonuses on net income, which reflects taxes and interest expenses, rather than operating profit, and to expand labor-management councils to allow representatives of subcontracted workers to participate in bonus negotiations.

While labor and management were divided over the priority of distribution versus reinvestment, both sides were negative about the current reality of paying large bonuses only to regular workers in specific sectors.

[Ryu Je-kang / Policy Director 2, Federation of Korean Trade Unions: I believe that reinvesting the economic achievements created by AI innovation into people and society is the most important social redistribution function that taxes and finance should perform.]

[Lee Sang-ho / Economic Division Director, The Federation of Korean Industries: If we distribute the profits without reinvesting them, can we really continue to fend off China's pursuit? In the industrial field, we don't think so.]

Some opinions were also raised that the definition of excess profits under discussion is not clear, or that labor-management autonomous win-win measures should take precedence over additional taxation.

The government plans to begin full-scale social dialogue involving labor, management, young people, and experts starting next month.

(Video reporting: Kim Hak-mo, Video editing: Kim Jong-mi)