Seoul [South Korea], May 13 (ANI): South Korean President Lee Jae Myung has accused sections of the media of spreading 'fake news' and misleading the public over remarks made by his policy aide regarding the possible use of excess tax revenue from the technology sector, according to a report by The Korea Herald.

The controversy began after Lee's chief presidential secretary for policy, Kim Yong-beom, suggested the idea of a 'citizens' dividend' linked to profits generated by the artificial intelligence sector.

In a Facebook post earlier this week, Kim called for 'structural changes' to address growing inequality and economic polarization caused by what he described as 'excess gains' from AI technology.

He proposed that excess tax revenue generated from highly profitable technology companies could eventually be distributed among citizens. The remarks triggered volatility in South Korea's stock market and reportedly led to selling by foreign investors.

Following the backlash, President Lee defended his aide and claimed that several media reports had distorted Kim's remarks.

In a post on X on Wednesday, Lee said fake news was being used to manipulate public opinion and harm democracy.

'What Director Kim Yong-beom said was 'Reviewing a plan to distribute the national excess tax revenue generated from excess profits in the AI sector to the public as a citizen's dividend'. In response, some media outlets edited this statement and spread defamatory fake news claiming 'Director Kim advocated for reviewing a plan to distribute corporate excess profits as a citizen's dividend,' Lee said.

According to the president, some media reports falsely portrayed Kim's proposal as a plan to directly distribute company profits to citizens in the form of dividends.

Lee clarified that Kim had actually referred to distributing excess tax revenue collected by the government from companies making large profits, not the companies' earnings themselves.

The Korea Herald stated that after this post one of the controversial news reports was later taken down after Lee highlighted it on social media.

President Lee had also warned earlier that spreading fake news related to state affairs could amount to a serious offence punishable under criminal law.

Meanwhile, even leaders within the ruling Democratic Party of Korea expressed caution over the timing of Kim's proposal.

Party chairman Jung Chung-rae described the comments as 'premature' during a press conference at the National Assembly on Wednesday.

He said South Korea is currently going through a major technological and economic transformation due to the rapid rise of AI and related industries. However, he suggested that such proposals should first undergo academic study and public consultation before being formally discussed as policy.

Jung also stated that Kim had not discussed the proposal with the ruling party before posting it publicly on Facebook.

'It was like opening the lid of a rice cooker prematurely, causing the rice to become undercooked,' Jung said while describing the timing of the remarks.

The controversy has sparked wider debate in South Korea over how governments should manage rising wealth generated by AI-driven industries and whether excess tax revenues from technology firms should eventually be redistributed for public welfare. (ANI)