Semiconductor Boom Not Eternal: Minister Calls for Focus on AI, Regions, and Ecosystems

South Korea's Minister of Trade, Industry and Energy, Kim Jeong-kwan, has cautioned that the current semiconductor boom is not guaranteed to last, urging the nation to proactively establish new growth engines. Speaking at a forum in Jeju, Kim pointed out that while the semiconductor industry is thriving, other sectors of the economy are facing significant difficulties. He stressed that the semiconductor market's current strength is not permanent, reminding attendees that history shows no business sector enjoys perpetual prosperity. The minister identified artificial intelligence (AI), regional development, and the broader industrial ecosystem as the key battlegrounds for future economic resurgence. He envisions AI as ushering in a new era, with regional areas serving as the spaces to accommodate this AI-driven future. To support this vision, the government plans to expand investment incentives, such as income tax reductions for regional workers, and significantly ease related regulations. Efforts are also underway to foster an ecosystem where businesses, government, and local communities collaborate through initiatives like the Manufacturing AI Transformation (M.AX) program in industrial complexes.

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The semiconductor market's current strength is not permanent.