Chey Tae-won: "In the Era of Protectionism, We Must Go Beyond Cooperation and Form an Economic Community with Japan"

Emphasized on YouTube Channel
"Time to Live Together Like the EU"

Chey Tae-won, Chairman of SK Group, stated that South Korea and Japan should move beyond economic cooperation and form an economic community similar to the European Union (EU). He explained that this view stems from the need for a new survival strategy amid an era of low growth and protectionist policies.

Screenshot of the YouTube channel "Jiyoon Kim's Knowledge PLAY"

On July 16, appearing on the YouTube channel "Jiyoon Kim's Knowledge PLAY," Chairman Chey said, "The growth of South Korea has nearly come to a standstill," and added, "The potential growth rate has entered the 0% range, and I question whether we can survive if we continue as we have so far." He went on to argue, "Rather than merely cooperating economically with Japan, we should establish a true economic community."

He noted, "I have shared the need to form a community like the EU with various figures in Japan, and Japan is grappling with similar concerns." Regarding historical conflicts, he stated, "That is something we must move beyond; choosing to do nothing because of it is not an option available to us."

Chairman Chey cited the example of Germany and France achieving economic integration through the EU even after World War II, explaining, "These countries experienced conflicts far greater than those between South Korea and Japan, but ultimately chose to move forward together." He added, "We now live in an era that demands ideas previously unimaginable in the past," and emphasized, "It is time to devise ways to coexist."

Regarding the global economic environment, he said, "The protectionist trend that began during the first Trump administration has not changed under the Biden administration," and concluded, "We are now in an era of protectionism, regardless." Amid these changes, he assessed that Japan is the only country in a similar position to South Korea and the only one from which meaningful cooperation can be expected.

He also called for a transformation of South Korea's economic model. Chairman Chey stated, "A surplus structure centered on exports, as we have now, could lead to trade friction and diplomatic conflict," and stressed, "We need to shift to a model that invests overseas and repatriates profits, which is a strategy Japan is already utilizing to a significant extent." He further emphasized, "It is time for South Korea to strategically leverage its assets."

He identified the soft cultural industry, following manufacturing AI (artificial intelligence), as the next-generation industry, and raised the need for a new industrial sector that combines AI technology with cultural content. Chairman Chey proposed, "K-culture should be established as a habitual part of daily life, not just a temporary trend," and suggested that Korean food and culture should be spread as a global everyday experience.