South Korea's Ministry of Employment and Labor has formed a public-private panel to discuss a new social contract for the artificial intelligence era, including how corporate profits should be redistributed. The panel includes a considerable number of members who are wary of redistributing excess profits, setting the stage for heated debate.
The ministry said on the 9th that it launched the Green Paper Panel for a New Social Contract in the AI Era at the Koreana Hotel in central Seoul's Jung District. The panel will discuss labor issues in the AI era, including jobs and the social safety net, over three months.
The biggest question is what conclusion the panel will reach on redistributing corporate excess profits, an issue brought to the fore by controversies over performance bonuses at Samsung Electronics and SK hynix. After Labor Minister Kim Young-hoon called for public debate on setting redistribution standards, Trade, Industry and Energy Minister Kim Jung-kwan publicly pushed back, saying corporate investment should come first. The two ministries went on to hold separate forums on AI excess profits, deepening their confrontation.
The gap between the two ministries has now been brought to the panel's table. Of the 23 panel members, academics account for the largest share at 11, followed by labor with seven, government and public institutions with three, and business with two. Kang Sung-jin, president of the Korean Economic Association, serves as chair, and the labor ministry is for now the only government body taking part.
While the ministry gave labor more than three times the representation of business, it clearly took pains to balance the discussion through academics and outside figures. Notably, two participants from the industry ministry's forum, where opposition to redistributing AI excess profits ran strong, also joined the panel.
The panel plans to avoid hastily setting a policy direction even after publishing a green paper. The Economic, Social and Labor Council, a tripartite body for social dialogue, joined the panel, reflecting the intention to identify the issues through the green paper and then hand actual discussions on legislation to the council.
The ministry also appears to be managing the discussion so it does not tilt one-sidedly toward profit distribution. In his opening remarks, Minister Kim said, "If the fruits of innovation stay only inside companies, the competitiveness of the entire industry cannot last," adding that "fair distribution can be a more successful reinvestment." He did not, however, use the term "excess profit" directly in his remarks.
