(C) China Daily
SEOUL – Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry (KCCI) and SK Group, has issued a stark warning regarding the structural slowdown of the South Korean economy, calling for a fundamental paradigm shift toward growth-oriented policies and AI-driven strategies.
In an interview with KBS "Sunday Diagnosis" aired on the 18th, Choi compared a stagnant economy to a bicycle with its brakes on. "An economy that has stopped growing is much harder to restart," Choi stated. "South Korea’s growth embers are currently flickering out."
The Gap Between Potential and Reality
Choi pointed out that South Korea’s growth rate has declined by approximately 1.2 percentage points every five years, with the potential growth rate now dropping to around 1.9%. More concerningly, he noted that the actual growth rate is hovering around a mere 1%.
"The fact that the actual growth rate is lower than our potential means that our policies and actions are failing to translate our inherent capabilities into results," Choi explained, identifying this gap as the core challenge facing the nation.
"Step-ladder Regulations" Stifling Corporate Ambition
The Chairman criticized the current domestic regulatory environment, which he described as "disadvantageous to growth." He highlighted "step-ladder regulations"—where the burden of oversight increases as a company expands—as a primary deterrent to corporate investment.
"If the risks and regulations outweigh the fruits of growth, companies will naturally choose the status quo over expansion," Choi warned. He cited Taiwan as a successful model, noting how its sovereign wealth fund and strategic support paved the way for TSMC to become a global titan. He also addressed "economic penalties," arguing that criminal liability for corporate management creates uncalculable risks that hinder bold investment.
AI as a "Civilizational Shift" and Regional Cooperation
Looking toward the future, Choi identified Artificial Intelligence (AI) as the next major growth engine, equating its impact to the transition from the Stone Age to the Iron Age. He urged the government to move beyond local infrastructure and aim for a "global AI hub" that the entire world can utilize.
To achieve this, Choi proposed three core tasks:
Building world-class AI infrastructure.
Fostering a robust AI startup ecosystem.
Establishing a supportive framework for Proof of Concept (PoC) testing.
Furthermore, Choi suggested strengthening ties with Japan to create a "Single Economic Community." He estimated that adopting a unified visa system—similar to the EU's Schengen Agreement—could generate roughly 3 trillion KRW in added value through increased synergy and trade.
The Social Cost of Stagnation
Beyond numbers, Choi linked economic growth directly to social stability and democracy. He warned that without growth, the resources for distribution shrink, leading to intensified social conflict and a loss of hope among the youth.
"Growth is a question of whether the younger generation feels they can still live and dream in this country," Choi said. "If we provide the policy backing to mitigate excessive risks, the private sector is ready to take the leap. South Korea still has the potential to create a new national narrative through its unique blend of cultural assets and AI technology."
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