South Korea's presidential policy chief proposed using AI tax revenues for citizen dividends, sparking a 5.1% stock market sell-off and raising global questions about how AI profits should be shared.

What happened: Kim Yong-beom, presidential chief of staff for policy, posted a "national dividend" proposal on Facebook suggesting excess tax revenues from Korea's AI infrastructure boom fund youth startups, rural basic income, artist support, and elderly pensions. The Kospi index fell 5.1%, with Samsung Electronics down 2.28% and SK Hynix down 2.39%. The Presidential Office quickly called the proposal "personal views" rather than official policy.

Why it matters: The proposal reflects real tension over AI wealth concentration—Samsung's union is demanding 15% of chip division operating profits as bonuses, while SK Hynix already agreed to share 10% of annual operating profits with workers. Politicians worldwide are grappling with AI's "winner-take-all economics," where memory chip monopolies generate massive profits while broader middle-class benefits remain limited. Markets are watching because if governments begin floating citizen dividends from tech profits, investment strategies may need to shift.

What to watch: Samsung workers plan an 18-day strike starting May 21 unless profit-sharing demands are met. The proposal itself remains unofficial, but the fact that a top government official publicly floated it signals the AI wealth-distribution debate is moving from theory into real policy discussions globally.