Rumors of Chip Profits Being Confiscated Send KOSPI Down Nearly 4% Intraday
Miles Bennett
An unverified online rumor claiming Seoul would force chip makers to "share profits" sent the KOSPI down nearly 4% intraday on Wednesday; Korea's trade ministry called it "completely untrue" — but the market's hair-trigger reaction traces back to President Lee Jae-myung's earlier remarks on redistributing chip super-profits.
What did the rumor claim?
The story circulating online alleged the Korean government was preparing letters to Samsung Electronics and SK hynix, demanding they set up a government-led profit-sharing think tank.
In plain terms = someone claimed "the government wants a say in how chip companies split their money" — and named Korea's two biggest chip firms by name.
Korea's Ministry of Trade, Industry and Energy issued a statement calling the rumor "completely untrue," in unusually blunt language, and warned it would refer deliberate spreaders to investigators.
Why did the market react so violently?
The KOSPI fell nearly 4% intraday — an outsized move for an unverified internet rumor.
This reflects a market already on edge: last month President Lee Jae-myung told *The Economist* that "a portion of super-profits" from chip firms could be distributed to citizens as basic income.
This means → the rumor itself may lack credibility, but it hit the exact nerve investors fear most — policy risk jumping from "discussion" to "execution."
How did the presidential office explain?
The presidential office later clarified that Lee's remarks did not target Samsung or SK hynix specifically, but addressed broader social challenges Korea "will eventually face" amid the AI transformation.
In plain terms = the office's message was "we're talking about long-term questions, not about taking anyone's money right now."
The market was unconvinced — as long as "chip-profit redistribution" remains an open question, investors will stay on high alert at every whisper.
What does this mean for investors?
In the short term, uncertainty itself is the overhang: until the policy direction on chip-profit distribution becomes clear, sentiment will struggle to stabilize.
This means → even though this particular rumor has been debunked, the next similar headline can still trigger sharp swings — the policy "kindling" is still there.
Two signals to watch: whether Seoul draws a clear policy boundary on chip profits, and whether Samsung and SK hynix themselves choose to respond publicly.
Content is for reference only, not financial advice.