Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and Chairman of SK Group, emphasized the need for a policy shift toward growth and a new growth strategy based on artificial intelligence (AI), stating that "the spark of growth in the Korean economy is currently weakening."
Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and Chairman of SK Group. Photo by Yonhap News Agency
Appearing on KBS Sunday Diagnosis broadcast on January 18, Choi said, "An economy that has stopped growing is like a bicycle with the brakes on-it becomes much harder to get moving again."
He explained, "Korea's growth rate has fallen by about 1.2 percentage points every five years, and the current potential growth rate has dropped to around 1.9 percent." He added, "The actual growth rate remains even lower, hovering around 1 percent."
He further pointed out, "The fact that the actual growth rate is lower than the potential growth rate means that, while there is potential, policies and actions have not been sufficiently translated into real outcomes," identifying the gap between potential and actual growth rates as a core issue.
Choi also expressed concerns about the broader societal impact if growth stagnation persists over the long term. He said, "Economic growth is directly tied to the hope for the future among young people-whether they can continue to live in this country." He warned, "If growth stops and the country becomes a place with little or no hope, dissatisfaction and departure among young people will inevitably increase."
He continued, "Korea is one of the very few countries that have achieved both economic growth and democratization simultaneously." He added, "If growth stops, resources for distribution shrink, social conflicts intensify, and the sustainability of democracy itself is threatened."
Regarding the business environment, he identified the "institutional environment that becomes more disadvantageous as companies grow" as a problem. Choi said, "So-called 'stepwise regulations' are undermining companies' willingness to grow," and noted, "If the risks and regulations outweigh the benefits of growth, companies will opt to maintain the status quo."
On the issue of economic criminal penalties, he suggested that "investment decisions are made by weighing returns and risks, but criminal punishment presents a risk that is beyond what companies can bear or calculate," and called for solutions to this issue.
Regarding cooperation with Japan, he said, "If South Korea and Japan were to introduce a single visa system similar to the Schengen Agreement of the European Union, it would generate approximately 3 trillion won in added value." He added, "If the two countries are viewed as a single economic community, a variety of products and synergies would emerge."
Choi, who identified AI as the next engine of growth, said, "AI is not merely a technological advance, but a civilizational shift on the scale of moving from the Stone Age to the Iron Age," stressing the need for a national-level strategy. To strengthen Korea's AI competitiveness, he presented the following as key tasks: ▲ building global-level AI infrastructure ▲ fostering an AI startup ecosystem ▲ establishing a support system for product testing (Proof of Concept, PoC).
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