Jeong Manki, Vice Chairman of Muhyeop, "Need for Awareness Improvement and Regulatory Reform Related to Digital Transformation"

Mu-hyup and Information Industry Association Sign Business Agreement to Support Digital Transformation in Industry Sector

Jung Manki, Vice Chairman of the Korea International Trade Association.
Photo by Asia Economy DB

[Asia Economy Reporter Han Ye-ju] Chung Man-ki, Vice Chairman of the Korea International Trade Association (KITA), pointed out the need for improving awareness of digital transformation and efforts to reform regulations.

KITA, in collaboration with the Korea Information Industry Association, held the "Management Excellence Seminar for Evolving into a Digital Enterprise" on the 12th at the Trade Tower in Samseong-dong.

Prior to the seminar, KITA and the Information Industry Association signed a Memorandum of Understanding (MOU) to promote mutual cooperation in industrial digital transformation, discover successful cases of digital transformation, and jointly host digital innovation events.

In his opening remarks, Chung Man-ki, Vice Chairman of KITA, stated, "We need to pay attention to structural factors such as the reindustrialization of advanced countries and the catch-up of latecomer countries as causes of our trade deficit expansion." He added, "Between 2015 and 2019, manufacturing employment increased by 490,000 in the U.S., 250,000 in Germany, and 340,000 in Japan due to the spread of digital transformation, whereas in Korea it decreased by 180,000. Third-generation late industrializing countries such as Vietnam and Indonesia are catching up with us through industrialization."

He further explained, "For example, in 2017, our market share of imports into the U.S. was 3.05%, which was 2.06 percentage points higher than Vietnam's 1.99%, but by 2021, Korea's share was 3.35% while Vietnam's was 3.6%, surpassing us."

Vice Chairman Chung emphasized, "Due to deteriorating competitiveness conditions such as the 52-hour workweek system, prohibition of dispatch and substitute labor, and a surge in corporate regulations, urgent digital transformation is needed to compensate for these." He highlighted, "When many Japanese life insurance companies went bankrupt in the 2010s, Fukoku Mutual Life Insurance survived by adopting IBM Watson to replace human activities such as insurance claim calculations with AI, thereby improving productivity and reducing costs. Similarly, digital transformation has become a key factor determining corporate survival."

He continued, "Considering the global digital market growing at 23% annually from about $1 trillion in 2018 to approximately $2.4 trillion in 2024, it is urgent for the National Assembly to improve awareness of digital transformation and reform regulations." He argued, "Various regulatory reforms, such as those on platform operators under the Passenger Transport Service Act symbolized by the so-called 'Tada Ban Law,' medical platform advertising regulations, and online legal platform regulations, will determine the future of our industry."

Jung Jin-seop, Chairman of the Korea Information Industry Association, said in his welcoming remarks, "For companies to succeed in digital transformation, they must create new businesses based on digital platforms." He added, "Continuous investment in organizations and people to digitalize internally and improve work productivity must also be sustained."

This content was produced with the assistance of AI translation services.