[Inside Chodong] A Step Below: Korea No Longer Draws Curiosity

"These days, when you go to China, no one pays attention to Korean companies anymore. They now look down on us."

A CEO of a mid-sized company whom I recently met shared an experience that made it clear how Korean companies are losing ground in the global competition. It may sound like a joke, but the situation behind his words is no laughing matter. It's a bitter reality that we have no choice but to acknowledge.

Among Chinese businesspeople, there's a saying: "They don't even turn off the lights at the factory, don't go home, and don't sleep." In fact, there are quite a few companies that operate this way. At large Chinese corporations, employees typically start work between 6 and 9 a.m. and continue late into the night, often working past midnight. Working six days a week is standard, which adds up to more than 72 hours per week-an amount that would be illegal in Korea.

The gap is nearly impossible to close. Ultimately, this becomes a structural disparity. Korea is falling behind in terms of working hours and intensity, is outnumbered in workforce size, and struggles to keep up in terms of speed. In many sectors, China has already overtaken Korea in technology. On the ground, people naturally say, "We can't win." It's not just a matter of working harder; the rules of competition themselves are different. Korea cannot choose the path China is taking. That was only possible in a bygone era to which we cannot return.

So, what breakthroughs can be found in this competition? While it's true that Korea is at a disadvantage in terms of population and working hours, that doesn't mean there are no solutions. The CEO pointed to high-quality data and proprietary technology. By leveraging the vast amounts of data and research and development (R&D) experience accumulated throughout its manufacturing history, Korea still has a path forward.

By analyzing the data pouring in from factory sensors and equipment to improve efficiency, and by reducing errors at the design stage to shorten processes, productivity can be multiplied. In particular, Korea already has strengths in utilizing data combined with artificial intelligence (AI). If this capability is systematically integrated into industrial sites, it could make it possible to achieve "big results with a small population." Korea already possesses world-class data and technological assets in fields such as semiconductors, batteries, and displays. Based on these advantages, Korea must transition to a system where automated factories run 24 hours a day, while humans focus on design and verification.

The case of Japan, which holds proprietary technologies, is also a noteworthy model. In certain industries, there are Japanese companies that hold an "absolute share" of the market. Ajinomoto, which produces semiconductor materials, is a prime example. The company's packaging materials are essential for global semiconductor manufacturers. If their supply is cut off, even the world's largest corporations cannot produce their products. Japan has maintained its position by nurturing such irreplaceable companies within the global supply chain. Their strategy is to carve out niches in materials, components, and equipment, becoming indispensable in each field. Ultimately, for Korea-which cannot compete in terms of scale-the only way to survive is to dominate specific processes in the global market.

Korea's options are ultimately narrowing. It cannot push forward with labor intensity like China. As mentioned earlier, that is a path we cannot and should not return to. The only remaining way is to secure proprietary technologies like Japan. AI-based automation and exclusive technologies in specific fields-these two pillars are the only survival strategies available to Korea. Building up data and technology to make Korea irreplaceable is the final solution to overcoming being treated as inferior.