Summary
- Bloomberg said Kospi volatility in South Korean equities increased after remarks related to an AI citizen dividend triggered a sharp intraday drop.
- Some investors interpreted the proposal as signaling possible additional taxation on profits at semiconductor companies, prompting Samsung Electronics and SK Hynix to reverse early gains and turn lower.
- Bloomberg said the market pared losses and related shares rebounded after Kim Yong-beom said the idea was not a new windfall tax but a plan for using additional tax revenue generated by growth in the AI industry.
Forecast Trend Report by Period
Bloomberg reported that remarks about an “AI citizen dividend” were cited as a factor behind the Kospi’s sharp intraday slide on May 12. Market participants said the comments fueled concerns about possible redistribution of profits from the semiconductor industry, hurting investor sentiment.
Bloomberg said volatility in South Korean equities increased after a senior policy official mentioned a plan to return to the public additional tax revenue generated by the expansion of the artificial intelligence industry.
The report said a Facebook post by Kim Yong-beom, the presidential policy chief, about an AI citizen dividend added to confusion among investors during trading and stoked market swings. Some investors interpreted the proposal as signaling possible additional taxes on semiconductor company profits.
The Kospi opened 1.68% higher than the previous session at 7,953.41 and rose as high as 7,999.67. But heavy selling emerged around 10 a.m., dragging the index down to as low as 7,421.71. Samsung Electronics and SK Hynix also reversed early gains and turned lower.
The comments heightened investor caution at a time when expectations had been building for improved semiconductor industry conditions on the back of expanding AI investment.
Bloomberg reported that the market later pared some of its losses after Kim explained the remarks were not about introducing a new windfall tax on corporate profits, but about how to use increased tax revenue generated by growth in the AI industry. Shares of Samsung Electronics and SK Hynix also rebounded after their sharp intraday drop.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
