Bank of Korea-Korea Chamber of Commerce discuss supply chain restructuring... Exploring ways to enhance Korea's competitiveness

Governor Lee Chang-yong and Professor Baldwin Discuss in Opening Session

The Bank of Korea and the Korea Chamber of Commerce and Industry held the 3rd joint seminar on the theme of global supply chain restructuring and artificial intelligence (AI) on the 27th at the Bank of Korea annex in Jung-gu, Seoul.

At this seminar, the two institutions presented the results of their research to examine the impact of global supply chain restructuring and the spread of artificial intelligence (AI) on our economy and to explore ways to enhance the competitiveness of Korean industries.

The event began with a welcome speech by Chey Tae-won, Chairman of the Korea Chamber of Commerce and Industry, congratulatory remarks by Ahn Duk-geun, Minister of Trade, Industry and Energy, and a keynote speech by Richard Baldwin, professor at the International Institute for Management Development (IMD). It proceeded with presentations and discussions in two sessions, followed by a comprehensive discussion. During the opening session, Lee Chang-yong, Governor of the Bank of Korea, held a dialogue with Professor Baldwin.

In his keynote speech, Professor Baldwin stated, "Global supply chains are rapidly being restructured due to the recent expansion of service trade and changes in the geopolitical environment," and predicted, "Future global trade will be influenced by both changes, but the latter will have a greater impact."

Jeong Seon-young, Deputy Head of the Macroeconomic Analysis Team at the Bank of Korea, who presented in Session 1, said, "Perceptions of global supply chains have shifted from being a driving force of past economic growth to a source of risk recently, leading to geopolitical blockization and regionalization," adding, "Korea, which is deeply involved in global supply chains, is highly exposed to these supply chain changes."

She continued, "Future supply chains are expected to see an increased importance of intermediate services compared to intermediate goods, and the servitization of manufacturing will accelerate," emphasizing, "We must maintain technological superiority in advanced manufacturing, strengthen the stability of import supply chains through international strategic cooperation, expand service exports through a two-track strategy of manufacturing-embedded services and digital services, and accelerate the transition to ESG supply chains."

Min Kyung-hee, Research Fellow of the Sustainable Growth Initiative (SGI) at the Korea Chamber of Commerce and Industry, presented in Session 2, stating, "The number of domestic AI-related news articles has significantly increased since 2015, and the main topics of AI news have shifted over time from technical aspects to utilization and global issues," and noted, "The economic impact of AI reflects adoption speed, industrial utilization, and productivity improvement."

She added, "AI is expected to create significant synergy particularly in high-tech, healthcare, and financial industries, or in fields such as marketing where large data utilization and frequent customer interactions occur," explaining, "The domestic AI environment is evaluated as lacking in funding, infrastructure, and talent compared to leading countries, necessitating responses from both companies and the government."

In the Session 1 discussion, Lee Ji-ho, Director of the Research Department at the Bank of Korea, moderated a discussion between Kwon Hyo-sung, Senior Economist for Korea at Bloomberg, and Yoon Sang-ha, Head of the International Macroeconomics Team at the Korea Institute for International Economic Policy. In Session 2, Park Yang-soo, Director of SGI at the Korea Chamber of Commerce and Industry, moderated a discussion with Choi Jae-sik, Professor at KAIST Kim Jaechul AI Graduate School, and Cho Jae-han, Director of Industrial Policy Office at the Korea Institute for Industrial Economics and Trade.

In the final comprehensive discussion, moderated by Yoo Myung-hee, Visiting Professor at Seoul National University Graduate School of International Studies, Ha Jung-woo, Head of Naver AI Lab, Yoo Min-sang, CSO (Chief Strategy Officer) of Autonomous A Investment Future Strategy Office, Kwon Gu-hoon, Senior Economist for Asia at Goldman Sachs, and Kang Gam-chan, Director of Industrial Policy at the Ministry of Trade, Industry and Energy, discussed "Industrial Strategies in the Era of AI and Supply Chain Transformation."