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When Nvidia meets ‘K-politicians’

Published: 10 Mar. 2025, 00:04

Ha Hyun-ock

The author is an editorial writer at the JoongAng Ilbo.

“Political speech and writing are largely the defense of the indefensible… Thus, political language is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.”

George Orwell, in his essay “Politics and the English Language” (1946), lamented the degradation of language, arguing that politics — rife with deception and division — drives linguistic decline. His words came to mind while watching the latest controversy surrounding "K-Nvidia," which has devolved into a quagmire of ambiguity and rhetorical excess.

Democratic Party leader Lee Jae-myung speaks during a four-way discussion on a special law for semiconductors, an extra budget and other pending issues at the National Assembly in Yeouido, western Seoul, on Feb. 20. [JOINT PRESS CORPS]

The controversy began with remarks by liberal Democratic Party (DP) leader Lee Jae-myung during a broadcast on the party’s YouTube channel on March 2. Lee stated, “In my vision of a basic society, the benefits of productivity gains should not be monopolized by individuals or corporations but widely shared among the people.” He went on to suggest, “If a company like Nvidia were newly established in Korea, with 70 percent of its shares privately held and 30 percent owned by the public, wouldn’t we reach a society where we no longer have to rely on taxes?”

The backlash was swift and fierce. Lawmakers of the conservative People Power Party (PPP) denounced it as a “utopian planned economy model," while others such as Rep. Lee Jun-seok of the Reform Party accused Lee of entertaining “a crude fantasy of AI-driven windfalls leading to high-tech industrial nationalization.” PPP Rep. Ahn Cheol-soo scoffed, saying, “Does he think Nvidia is a machine churning out fish-shaped buns? He has no understanding of the startup ecosystem.”

Lee dismissed the criticism as coming from “illiterates” with no insight. Yet, his own rhetoric lacked clarity. He proposed an idea but left it vague. The rationale was thin. How would K-Nvidia be created? How was the 30 percent public stake calculated? How would it be maintained without relying on taxes? Without concrete details, his words left room for endless interpretations and rebuttals.

The opposition’s attempts to defend the K-Nvidia idea were equally unconvincing. They cited Taiwan’s TSMC and Korea’s Posco as government-led successes and mentioned sovereign wealth funds and public investment models, but they failed to address key questions. Would it be feasible to secure a 30 percent stake in a company of Nvidia’s scale? How would they prevent dilution as capital injections increase? If maintaining such a stake requires astronomical funding, who would foot the bill?

In an effort to lend substance to the proposal, the DP announced on March 6 a plan to create a National Advanced Industry Fund of at least 50 trillion won ($37 billion). The idea is to pool investments from the public, corporations, the government and pension funds, then channel the money into domestic strategic industries, distributing returns to individuals and businesses through dividends and tax benefits.

Still, the K-Nvidiaproposal feels like little more than political posturing. The core issue is missing. There is no blueprint for fostering an industrial ecosystem that could birth a Korean equivalent of Nvidia — only talk of redistributing wealth. As Gyeonggi Gov. Kim Dong-yeon, a member of Lee's DP, put it, “They’re bringing out the spoons before the meal is even cooked.”

Nvidia CEO Jensen Huang delivers a keynote address at CES 2025 in Las Vegas, Nevada, on Jan. 6. [ AFP/YONHAP]

A company like Nvidia emerges only under the right conditions — entrepreneurial drive, a robust talent pool, patient capital willing to endure failures and an environment that allows businesses to thrive. Even when all these factors align, only a handful of companies achieve Nvidia’s level of success.

But in Korea, even existing companies are struggling to survive. Rigid labor laws, including the failure to relax the 52-hour workweek, and discussions of a four-day workweek only weaken corporate competitiveness. Antibusiness legislation, excessive taxation and burdensome regulations do little to foster an environment for a K-Nvidia to take root. Simply throwing money at the problem without addressing these structural issues raises doubts about whether such a company could ever emerge. The opposition, however, seems unfazed.

And so, the conversation goes in circles. On March 7, Lee reiterated, “If we create a cutting-edge company like Nvidia, secure its initial investment at a national and public level and acquire a solid stake, we can ensure a stable future without hardship.” Once again, the specifics of creating K-Nvidiaremain lost in vague political rhetoric, with the discussion ultimately boiling down to a public investment fund. This is what happens when Nvidia meets "K-politicians."

Translated using generative AI and edited by Korea JoongAng Daily staff.