President Lee Jae Myung dismissed criticism of his policy aide’s tax plan on Wednesday. He called the negative reports fake news in a post on X. This fake news controversy began after chief policy secretary Kim Yong-beom spoke publicly. Kim proposed distributing excess tax revenue from South Korea’s artificial intelligence sector. He described his idea as a citizens’ dividend funded by tech industry taxes.
Stock markets reacted with volatility after Kim’s Facebook post. Foreign investors also sold off shares in response to the proposal. Lee then claimed that news reports had malicious intent to mislead the public. He quoted opposition lawmaker Park Soo-young comparing the plan to socialist policies. Lee clarified that Kim proposed distributing excess tax revenue directly. He did not propose distributing company profits to citizens as some reported. Lee expressed frustration that such fake news still exists after his aide clarified.
Ruling party chair Jung Chung-rae called Kim’s remarks premature on Wednesday. Jung said Kim should have conducted academic research before announcing the idea. Reaching public consensus first would have made the proposal more responsible. Jung compared the situation to opening a rice cooker prematurely. Lee had warned on Tuesday that circulating fake news is a serious crime. He said such actions deserve criminal punishment under the law. Opposition lawmakers now demand clearer explanations from the presidential office. Investors remain cautious about potential tax redistribution schemes affecting tech companies.
