A rumor claiming the South Korean government would force chip companies to "share profits" spread rapidly on Wednesday, triggering a sharp intraday drop of nearly 4% in the KOSPI index. The Ministry of Trade, Industry and Energy promptly issued a statement, denouncing it as "completely false" and deliberate misinformation, and warned of legal action against those spreading it.

The ministry stated in its declaration that the online claim alleging "Seoul has sent letters to Samsung Electronics and SK Hynix, demanding the establishment of a government-led think tank related to profit sharing" was "completely untrue." It announced it would refer acts of intentionally disseminating false information to investigative authorities.

This incident is not an isolated one. South Korean President Lee Jae-myung suggested last month in an interview with The Economist that a portion of chip companies' excess profits could be distributed to the public. This remark has since kept market nerves on edge, creating fertile ground for the rapid spread of this latest rumor.

Official Denial and Legal Threat

According to Yonhap News Agency, the Ministry of Trade, Industry and Energy issued a statement on Wednesday explicitly denying rumors that the government is pushing to establish a new think tank to manage and utilize the massive profits chip companies are reaping from the global AI boom. The ministry labeled these rumors as "completely false" and stated it would take strong measures against acts of "maliciously spreading misleading information," referring them for investigation.

The unusually strong wording of the statement signals the authorities' high alert regarding such rumors disrupting capital markets. The backdrop to the rumor's circulation is the ongoing and intensifying domestic debate in South Korea over how to use the additional tax revenues generated from chip companies' record profits. The global AI boom has significantly boosted the performance of Samsung Electronics and SK Hynix, making how to allocate this "windfall" a focal point of debate in Korean political and social circles.

President's Earlier Remarks Create Uncertainty

The rumor's ability to trigger such a strong market reaction is closely linked to President Lee Jae-myung's previous public comments. Last month, Lee proposed that "a portion of the excess profits" from chip companies could be distributed to ordinary citizens in the form of a basic income, suggesting it as a potential solution to debates over profit-sharing in the chip industry.

This statement drew widespread market attention and unease. The presidential office subsequently stepped in to clarify, stating the remarks were not targeted at specific companies like Samsung Electronics or SK Hynix, but were rather focused on the deep-seated societal challenges South Korea "will eventually face" amid the AI transformation.

Despite official clarifications, the severe impact of this rumor on the South Korean stock market serves as another reminder that until policy discussions on profit distribution in the chip industry reach clarity, related uncertainties will continue to weigh on market sentiment. Investors are likely to remain highly sensitive to any news for the foreseeable future.