Korean and Japanese Business Leaders Propose AI Infrastructure Cooperation: "Shift Needed from Domestic Strategies to Collaboration"

KITA Korea-Japan Exchange Committee and Japan Association of Corporate Executives Issue Joint Statement
Result of "Korea-Japan Economic Roundtable" Discussions
AI-Based Infrastructure Development and Solutions to Social Challenges
Expanding Korea-Japan Joint Achievements to ASEAN

The business communities of Korea and Japan have jointly called for the establishment of a "Korea-Japan Economic Community" to respond to the intensifying US-China technological hegemony competition.

Hyojun Cho, Chairman of the Korea-Japan Exchange Special Committee of the Korea International Trade Association and Chairman of Hyosung Group. Korea International Trade Association

On January 14, the Korea-Japan Exchange Special Committee of the Korea International Trade Association announced a "Joint Statement on Korea-Japan Industrial Cooperation in the Era of Artificial Intelligence (AI)" together with the Japan Association of Corporate Executives. This statement is the result of discussions held during four "Korea-Japan Economic Roundtables" that took place between Seoul and Osaka from May 2024.

In the joint statement, the two countries' business leaders presented three key visions: building an AI-based autonomous industrial infrastructure, addressing social challenges such as healthcare and caregiving, and expanding Korea-Japan joint achievements to ASEAN. In particular, they urged both governments to make progressive policy changes, emphasizing the need to shift from domestically focused strategies to a collaborative structure that integrates global advanced technologies.

Specifically, in the field of AI infrastructure, they recommended efficient power management by nationally and regionally distributing data centers to cope with the surge in data and potential power shortages.

They also warned that relying solely on external sources for core infrastructure amid the US-China tech rivalry is risky. The statement called for the governments of both countries to jointly lead research on data center cooling technologies and next-generation networks, which are difficult for the private sector to advance alone. Additionally, they proposed that both countries mutually share and utilize refined datasets for AI training, taking into account the legal risks associated with public data.

In the area of healthcare and caregiving cooperation, the committee saw potential for collaboration in digital therapeutics, telemedicine, AI diagnostics, and new drug development by combining Korea's medical data collection capabilities with Japan's healthcare system expertise. Regarding startups and investment, they suggested broadening exit routes by revitalizing initial public offerings (IPOs) and expanding the secondary market, thereby promoting cross-investment by corporate venture capital (CVC) firms.

The strategy is to spread the joint achievements of Korea and Japan to global markets such as ASEAN.

Hyojun Cho, Chairman of the Korea-Japan Exchange Special Committee (Chairman of Hyosung Group), stated, "This is a critical moment for Korea and Japan to pool their respective strengths and open a new horizon of cooperation in the AI sector. I hope this joint statement will serve as the starting point for a long-term partnership."

The Korea International Trade Association and the Japan Association of Corporate Executives have also agreed to institutionalize the roundtable meetings going forward, regularly reviewing key issues and sequentially achieving cooperative results.