Special Lecture at the Martial Arts CEO Breakfast Meeting on the 29th
'No Punishment with Money, Punishment without Money' Quasi-Wartime Situation
No Direct Mention of Subsidy Support
Anduk Geun, Minister of Trade, Industry and Energy, stated on the 29th, "We are working with the firm belief that our companies must never be made to compete on a tilted playing field." He added, "The global economy has become a 'no punishment for the wealthy, punishment for the poor' situation, and we deeply feel that our industrial sector is facing a quasi-war situation." He did not directly mention raising the tax credit rate or preparing subsidy support policies.
Minister Ahn made these remarks as a special speaker at the '178th KITA CEO Breakfast Meeting' hosted by the Korea International Trade Association at the InterContinental Seoul COEX in Samseong-dong, Gangnam-gu, Seoul, on the morning of the same day. About 200 representatives of KITA member companies, including Chairman Yoon Jin-sik of KITA, attended the breakfast meeting.
This was Minister Ahn's first invitation as a speaker at an economic organization lecture since his inauguration in January. He gave a lecture on the theme of "Achieving $700 billion in exports (approximately 945 trillion KRW) and New Industrial Policy 2.0."
He emphasized, "This year, with the recovery of the semiconductor and IT sectors and strong exports of key items such as ships, we expect positive export growth in the first quarter and an upward trend in the second quarter," adding, "We have set a challenging goal of achieving the highest-ever export figure of $700 billion (approximately 945 trillion KRW)."
Minister Andeok Geun of the Ministry of Trade, Industry and Energy attended the KITA CEO Breakfast Meeting held on the 29th at the InterContinental Seoul COEX in Samseong-dong, Seoul, and gave a lecture on achieving $700 billion in exports and New Industry Policy 2.0. Photo by Yongjun Cho jun21@
After the lecture, Minister Ahn hinted at the possibility of increasing semiconductor policy support during a Q&A session with CEOs of KITA member companies.
In response to the question, "Do you have plans to support large domestic companies?" he said, "We are aware of demands that Korea should implement subsidy policies more strongly, like the US and Taiwan, and we are currently considering this. We firmly believe that we must never allow the competitive conditions to remain unfavorable, and we are actively working to create investment incentive mechanisms that can practically help companies."
Minister Ahn stated that Korea's assets lie in its advanced industrial manufacturing capabilities in semiconductors, secondary batteries, and aerospace. He said, "Since technological convergence may occur again through the 'digital green transition,' it is very important for Korea to maintain these advanced strategic industrial assets."
Minister Ahn said that realistically, Korea is unlikely to win the generative artificial intelligence (AI) competition against US big tech companies. He emphasized that integrating AI into manufacturing sites to create growth engines for the Korean economy is an urgent task.
When asked if there are plans to establish a basic AI law, he replied, "AI regulatory issues are highly controversial internationally, and all countries are making considerable efforts. The Ministry of Trade, Industry and Energy will ensure that AI technology is utilized in a way that fits the reality of the Korean economy and our manufacturing base."
He added, "I believe it is impossible for Korea to set a goal of competing with the US and Silicon Valley in generative AI. In the short term, automating and integrating AI-based production processes according to our manufacturing base reality to improve industrial productivity is an absolutely important task to enhance Korea's potential economic growth."
Chairman Yoon also pledged to work with the government to increase Korean exports this year. In his greeting, Chairman Yoon said, "Despite the delayed global economic recovery last year, we achieved the third-highest annual export amount ever, recording $632.7 billion (approximately 854 trillion KRW). Since the government has set a goal of the highest-ever export of $700 billion this year, the trade industry will work together with the government with one heart and mind."
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