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SK chairman calls for stronger economic ties with Japan, increased investment in AI

Published: 26 Oct. 2025, 16:52 Updated: 26 Oct. 2025, 18:33

SK Group Chairman and Korea Chamber of Commerce and Industry Chief Chey Tae-won speaks during an interview with three YouTube channels on Oct. 26. [SK GROUP]

SK Group Chairman and Korea Chamber of Commerce and Industry Chief Chey Tae-won said that it's “no longer possible to solve our growth problems just by exporting more. Korea’s economic model needs to change.”

The remark came during a joint interview released on Sunday on YouTube channels 3 Pro TV, Understanding and Apgwon.

Chey said the global trade environment has fundamentally shifted. “It’s difficult to restore free trade under the old World Trade Organization framework,” he said. “The export-led growth formula that has driven Korea’s economy since the 1960s no longer works because of rising tariffs.”

Chey outlined several proposals: stronger economic ties with Japan, regulatory reforms to support growth-oriented companies, increased investment in artificial intelligence (AI) and attracting global talent.

He argued that a Korea-Japan economic bloc could form a $6 trillion market capable of countering protectionism and regional economic fragmentation.

“The European Union takes years to reach consensus among 27 countries,” he said. “Korea and Japan could build a far more efficient version of that model, forming the world’s fourth-largest economic bloc.”

Chey also urged the government to redesign its regulatory framework to reward expansion, not just protection. “Policies that simply shield small businesses are outdated,” he said. “We need to support companies that are growing and strengthen key supply chains, especially in strategic sectors like semiconductors.”

Chey likened today’s race for dominance in artificial intelligence to the Cold War arms race.

“The United States and China will not stop investing in AI,” he said. “Even amid geopolitical uncertainty, we must keep investing. Falling behind in AI poses a major risk.”

He also called for attracting more foreign talent, easing local regulations through what he described as “mega sandboxes” and nurturing “soft money” industries beyond traditional manufacturing.

Reflecting on his role as a business leader, Chey cited his late father, former SK Chairman Chey Jong-hyun. “My father always said that companies must contribute to the national economy,” he said. “A company shouldn’t grow only through competition — it should grow with the community and give back to society.”

Chey described the APEC summit in Gyeongju as “a meeting that will offer clues about how U.S.-China relations will unfold in the coming years.” U.S. President Donald Trump and Chinese President Xi Jinping are scheduled to hold a summit there on Oct. 30.

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY NA SANG-HYEON [[email protected]]