When South Korea's most high-profile divorce case returned to court last month, lawyers argued not just about the breakdown of a relationship but also the exact date to value shares in SK Hynix, the manufacturer of chips powering AI systems worldwide. The judges' decision in Seoul could change business tycoon Chey Tae-won's assets by billions of dollars.
South Korea is one of the world's largest makers of high-value memory chips, and the country is experiencing an unprecedented wealth boom driven by Samsung Electronics and SK Hynix. These two companies dominate the global supply of high-bandwidth memory, the specialized chips that AI systems need to run. Analysts project their combined operating profits could rise almost sevenfold this year, pushing the Kospi index to record highs.
Record Bonuses for Chip Workers
The chipmakers have begun sharing record profits with staff on an unprecedented scale. At Samsung, a memory-chip worker on a base salary of 80 million won ($51,300) could receive bonuses close to 600 million won ($384,900) this year, mostly in stock. That is roughly 17 times the average annual salary at a small South Korean firm. SK Hynix paid its workers a bonus of nearly 3,000% of their monthly salary earlier this year. Based on forecast profits, next year's payout is projected to be several times larger.
The signs of flourishing wealth are dotted across the country. In satellite cities built around chip factories south of Seoul, luxury sales are surging. In the first weeks of May, jewellery sales at one department store jumped 146%, while watch sales rose 85%. In Icheon, where SK Hynix has its main campus, imported car registrations surged 108% in February. Apartment prices near semiconductor company bus routes are rising at four times the wider Seoul average.
Who Benefits from the AI Boom?
Not everyone benefiting works in a chip factory. Brian Lee, a retiree in Seoul, bought small amounts of SK Hynix and Samsung shares a few years ago and forgot about them. His SK Hynix return is now 1,264%. "This is the result of my hard work, plus luck," he says. "I feel guilty, and at the same time, even though I have yet to cash it out, I tend to spend more." He has started looking at collector watches.
The explosion in wealth has driven questions about who is entitled to a share of the profits and how to spread the wealth more evenly across society. "Over the years, the semiconductor industry benefited enormously from government support," says Kim Yong-jin, professor of business administration at Sogang University in Seoul, pointing to decades of state investment in research and industrial policy. "So they have to think about society itself."
Political and Social Debates
The president's chief policy adviser floated a "citizen dividend" in May, arguing the wealth rested on foundations built by all Koreans over half a century. Though some critics saw it as a plan to hand out cash or seize company profits, he later framed it more narrowly as a way to channel surplus tax revenues back to the public through structured investment. Opposition politicians called his comments akin to communism, and the presidential office distanced itself from the plan.
The question of shared gains is also industrial. Samsung's largest union nearly brought production to a halt in May, demanding a guaranteed share of profits, before a last-minute deal averted a strike. However, the deal upset some employees, as those in the phone and appliance division were set to receive only a fraction of what chip workers did.
South Korea has long grappled with inequality. It has one of the highest rates of elderly poverty in the developed world, while rising housing and living costs have deepened pressure on many households. Manufacturing employment has fallen year on year for nearly two years. Nearly a million small businesses closed in 2025, with many owners left carrying huge debts. The income gap between the richest and poorest households hit a six-year high.
"Everyone is talking about the boom, but most Koreans can't feel it," says Kyusuk Cho, a graduate student in information studies. "Life is getting more expensive and jobs are harder to find." Strip out the two chipmakers—who make up more than 50% of the Kospi index—and the rest of the economy is barely moving.
Kim Yong-jin says the gains should be shared between those who invested, those who worked, and the society that made it possible, in a way that strengthens the country over the long run, but South Korea has yet to build a framework for how. "We need a consensus on how to share these profits," he says. "That is the most important part."
