Choi Tae-won, chairman of SK Group, emphasized the need to diversify markets beyond China to maintain corporate competitiveness, Bloomberg reported on the 26th (local time).
In a briefing for foreign media, Chairman Choi stated, "China is undoubtedly South Korea's number one trading partner and an irreplaceable market at this point. However, even if we want to expand trade with China, there are limitations due to domestic issues and geopolitical risks in China."
As a specific direction for diversification, he stressed that companies should seek alternative markets and expand into early-stage industries such as artificial intelligence (AI). SK affiliate SK Hynix, for example, generated about 27% of its annual revenue last year from China and is actively conducting business and investments there. China has been the largest importer of Korean products such as semiconductors and displays, but according to the report, its market share is declining recently due to economic slowdown and increased self-reliance of Chinese companies.
Chairman Choi diagnosed, "As markets become fragmented, they are no longer bound by the control of the World Trade Organization (WTO) as in the past," adding, "This makes the situation more difficult for countries like ours that rely on exports for their economy." He also emphasized, "We now need to identify what is needed in smaller markets."
The briefing for foreign media was held as part of efforts to attract the Busan World Expo. Chairman Choi, who is also the chairman of the Korea Chamber of Commerce and Industry, serves as the private sector chairman supporting the Busan Expo bid. He reiterated the rationale for Busan's bid, saying, "South Korea, which once was a developing country and has transformed into one of the most advanced countries in the world, can well represent various nations." Currently, Busan is competing with Riyadh, Saudi Arabia.
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