South Korean minister warns semiconductor boom isn't societal prosperity, urges focus on AI, regional growth

South Korea's Minister of Trade, Industry and Energy, Kim Jung-kwan, cautioned against complacency despite the nation's booming semiconductor industry. He stressed that a thriving sector does not automatically translate to widespread societal prosperity, drawing a historical parallel to the biblical story of Joseph preparing for famine during years of plenty.

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There is no business that continues to boom; that is the truth of history.

Speaking at the 49th Jeju Forum hosted by the Korea Chamber of Commerce and Industry, Kim identified three critical "battlegrounds" for South Korea's economic future: artificial intelligence (AI), regional development, and ecosystem building. He warned that missteps in these areas could lead to economic decline for the nation and its businesses.

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A semiconductor boom does not mean society as a whole is booming.

Kim painted a stark picture of the current economic climate, noting that South Korea's growth rate is hovering near zero percent amidst a shifting global order. He urged a heightened sense of urgency and strategic response to prevent a decline in the nation's standing. The minister highlighted the semiconductor industry's importance as a key AI infrastructure but pointed to significant investments by the US and China, predicting a potential drop in South Korea's global market share for DRAM.

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If you make the wrong investment or decision at a battleground, that economy, that company, will inevitably go down the path of ruin.

Furthermore, Kim advocated for prioritizing investment in regional development, acknowledging the political challenges of diverting resources from the capital region. He also underscored the necessity of fostering collaborative ecosystems, particularly in the AI era where individual companies cannot shoulder massive technological development alone. Referencing golfer Yoo Hae-ran's dramatic major championship win, Kim expressed a desire for similar resilience and determination from South Korean business leaders to navigate economic uncertainties and secure global market opportunities.

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In the AI era, you cannot undertake massive technological development and investment alone. If you cannot create an ecosystem, defeat is certain.