Chey Tae-won's Warning to Korea's Manufacturing Sector

Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI) and SK Group, has issued a stark warning about the future of Korea's manufacturing industry. He predicts that without the revitalization of the sector through artificial intelligence (AI), most domestic companies could face elimination within the next decade.

The Competitive Threat from China and Beyond

During a press conference at the "KCCI Summer Forum" in Gyeongju, Chey highlighted the intense competition from China, India, and the Middle East, particularly in the petrochemical and semiconductor sectors. He noted that Korean companies are struggling to compete against the flood of cheap Russian crude oil and China's aggressive investment in semiconductors, despite U.S. equipment controls.

A Call for Strategic Overhaul

Chey criticized the lack of strategic planning and complacency within Korea's manufacturing industry. He emphasized the need for new industrial policies and strategies to counter the challenges posed by China's rapid advancement and the aging of Korea's manufacturing facilities.

AI as Korea's Last Hope

With AI still in its nascent stages, Chey sees it as Korea's only hope to regain competitiveness. He suggested collaboration with Japan to share data and slightly enhance their competitive edge in the face of China's overwhelming resources and data advantage.