Chairman Chey Tae-won: "Concerns Over Increased Volatility in Group's Core Semiconductor Market"

Choi Tae-won, Chairman of the Korea Chamber of Commerce and SK Group
Press Conference at the 46th Korea Chamber of Commerce Jeju Forum
"Mainstay Semiconductor Sector Worries with Wide Fluctuations
...Geopolitical Risks and Shocks Amplify Volatility"

"Global Economic Bloc Issues Worsen
Market Difficult to Win by Individual Corporate Competitiveness"
Need for Proactive Public-Private Joint Approach

Chairman Choi Tae-won of the Korea Chamber of Commerce and Industry is speaking at a press conference during the '46th Korea Chamber of Commerce and Industry Jeju Forum' held at the Haevichi Hotel in Jeju on the 12th. Photo by Korea Chamber of Commerce and Industry

Choi Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI) and SK Group, expressed concerns that the semiconductor industry cycle has shortened and its amplitude has increased.

At a press conference held on the 12th at the '46th KCCI Jeju Forum' in Jeju Island, Chairman Choi said, "We are facing the problem of the amplitude of the semiconductor industry cycle itself increasing," adding, "The business, which SK Group is mainly involved in, is showing a volatile industry cycle, which is worrisome." He continued, "During the pandemic, demand for home appliances and software exploded, leading to a favorable semiconductor industry, but as the pandemic nears its end, the opposite phenomenon is emerging," and diagnosed, "In addition, various external shocks such as geopolitical risks are overlapping, causing the amplitude to increase." Although Chairman Choi had previously expressed optimism that the semiconductor industry cycle would speed up and recover soon at the KCCI year-end press conference in December last year and the ICT exhibition MWC (Mobile World Congress) in February this year, this is the first time he has voiced concerns about the volatility of the semiconductor industry.

Chairman Choi viewed that the global economy is being divided and blockized due to the US-China conflict, posing new challenges to the Korean economy. He said, "Previously, it was a single market where you just needed to make good products cheaply and sell them well," adding, "Now, with the blockization progressing due to conflicts between major powers, it has become important through which supply chains products are delivered and how many different countries trade to reduce risks."

As major countries intervene in the market by providing massive subsidies to protect and nurture their domestic industries, corporate competitiveness is also being tested. He analyzed, "China first intervened in the market to nurture strategic assets and industries, and the EU (European Union) and the US followed with similar policies," adding, "It has become quite difficult to win in the global market based solely on the competitiveness of a single company."

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, is holding crutches with the Busan Expo logo at the '46th Korea Chamber of Commerce and Industry Jeju Forum' held at the Haevichi Hotel in Jeju on the 12th. Chairman Choi suffered a partial Achilles tendon rupture injury while playing tennis a month ago. Photo by Jung Dong-hoon

Regarding these changes in the global market, Chairman Choi emphasized the need for active response through public-private cooperation. "Losing market leadership happens often, but recovering it is rare. Therefore, it has become even more urgent to respond through public-private cooperation. Rather than solving problems after they occur in a 'too little, too late' manner, companies and the government must put their heads together and respond proactively."

He cited 'hosting the Expo' as the best countermeasure against the blockization of the global market. "Now, we must be able to withstand shocks from the US or China. To do this, we need to be able to manage complex relationships with various countries, and there is no platform more suitable than the Expo. I believe the 2030 Busan Expo will be an opportunity for Korea to diversify its relationships globally," he said. The Busan Expo, which the Korean government and KCCI are promoting to host, is a registered Expo. It is an international event comparable in scale and participation to the Olympics and the World Cup. It is expected to attract 50.5 million participants from about 200 countries. The resulting economic ripple effects are projected to reach 43 trillion won in production inducement, 18 trillion won in value-added inducement, and create 504,000 jobs.

He viewed that for hosting the Expo, it will be an important message to have a platform that can solve the challenges humanity faces together. Since March, KCCI has created an online platform called 'WAVE' to propose, develop, and implement ideas through collective intelligence on issues such as food waste and marine debris. This platform originated from Chairman Choi’s proposal to discuss common problems continuously beyond spatial and temporal limitations. Chairman Choi said, "It is not just about holding an event in Busan and ending it, but it is necessary to make a practical contribution to improving the quality of life in human society by solving universal global challenges together."

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