[Market Pulse] The Challenges Left by APEC: Surviving in the Age of AI

The 2025 Asia-Pacific Economic Cooperation (APEC) Summit concluded successfully. With the attendance of leaders from 14 countries, including U.S. President Donald Trump and Chinese President Xi Jinping, this event can be interpreted in various ways, but it can largely be summarized in two key points.

First, it reduced global economic uncertainty. Despite the ongoing trade war, the fact that the United States and China held a summit for the first time in six years suggests that uncertainty will decrease. South Korea also concluded tariff negotiations through a summit with the United States, and signed six memorandums of understanding (MOUs) and restored dialogue channels with China through the Korea-China summit, thereby reducing risk factors. Expectations for an easing of the U.S.-China trade war, which has been a major wrinkle for the global economy, led the U.S. stock market to rise by 1.2 percent, and served as a catalyst for the KOSPI to surpass the 4,000-point mark.

Secondly, it demonstrated the arrival of the artificial intelligence (AI) era. Even before the event, there was intense interest in whether Jensen Huang, CEO of Nvidia, would attend. He not only attended and delivered a special address, but also created excitement with a "Kkanbu Chicken" event, meeting expectations. In particular, his announcement that Nvidia would supply 260,000 graphics processing units (GPUs) to South Korea added even greater significance. Although the main topics of this summit were aging populations, the digital economy, and sustainable growth, the core agenda was clearly AI. As a result of the discussions, the "APEC AI Initiative" was announced, providing guidelines for the 21 member countries on AI policy coordination, increased investment, infrastructure development, and regulatory conflict resolution. This raises questions about how South Korea should position itself in the AI race led by the United States and China.

What lessons does this successful APEC summit offer us? First, as the global economy enters a boom phase, there is a call for expanding investment to pioneer global markets. Fortunately, facility investment has increased by 12.7 percent, and consumption has risen by 1.5 percent, improving production conditions. To sustain this economic recovery momentum, institutional reforms such as corporate and inheritance tax improvements, better financial conditions such as interest rate cuts, and efforts to stimulate consumption are all being urged.

Above all, the national strategy to become an AI hub must be further expanded and strengthened. While the vision of becoming the world’s third-largest AI power has already been set, detailed measures to activate the market must be established. With 260,000 GPUs to be secured, infrastructure to maximize their use must be prepared. For AI computing centers, it is worth considering the East Coast region, where facilities have been completed but operations remain sluggish due to power transmission issues, to ensure they become fully operational as soon as possible. In addition, for GPUs, securing a stable energy supply is urgent, and it will be necessary to implement a more flexible power system evaluation process. AI computing should be treated as a public good, with a support system in place to ensure that everyone can use it easily and affordably.

A variety of AI services must be developed, and an ecosystem should be created so that anyone can easily develop AI services. University startup support programs, the development of AI services by local public institutions, and support for middle-aged and older adults to develop AI services are all needed to address the digital divide. For regulatory and legal issues, a dedicated AI Regulatory Innovation Task Force should be established, with diverse sandbox and temporary permit systems in place. To address data shortages, in addition to existing voucher programs, a groundbreaking databank should be created to promote quality management and free distribution. Furthermore, ethical standards and a self-regulatory framework for responsible AI must be established. The competition in the AI era has already begun.

Kang Sungjoo, Visiting Professor at Sejong University (Former Postmaster General of Korea Post)