Choi Tae-won: "Semiconductor Market Cycle Accelerates and Amplitude Increases" (Comprehensive)

Choi Tae-won, Chairman of the Korea Chamber of Commerce and SK Group
Press Conference at the 46th Korea Chamber of Commerce Jeju Forum

Regarding the Semiconductor Business Returning to Deficit
"Concerned About Volatile Market Conditions... Expected to Rebound Next Year"

Points Out Global Economic Bloc Issues
"Market Difficult to Win with Individual Corporate Competitiveness"

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 about the semiconductor industry cycle becoming shorter and its amplitude increasing.

At a press conference held on the 12th at the 46th KCCI Jeju Forum in Jeju Island, Chairman Choi said, "We are facing the issue of the amplitude of the semiconductor industry cycle itself increasing," adding, "The business, which SK Group is primarily involved in, is showing a highly volatile industry cycle, which is worrisome." He further explained the cause of the increased amplitude in the semiconductor industry cycle: "During the pandemic, demand for home appliances and software exploded, leading to a strong semiconductor market, 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."

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 at the MWC (Mobile World Congress) ICT exhibition in February this year. However, this is the first time he has voiced concerns about the volatility of the semiconductor industry. Nevertheless, he predicted, "Since there has been a downturn in the industry, I believe an upturn will come soon," and estimated, "The timing of the industry rebound is expected to be about six months to one year from now, not two to three years."

Chairman Choi viewed that the global economy is being divided and blockized due to the US-China conflict, presenting new challenges to the Korean economy. He said, "Previously, it was a single market where making and selling good products cheaply and well was enough," adding, "Now, with the blockization progressing due to conflicts between major powers, it has become important to consider through which supply chains products are delivered and how to trade with various countries 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 have 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."

Chairman Choi Tae-won 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 joint responses by both the public and private sectors. "Losing leadership in the market happens often, but recovering it is rare. Therefore, it has become even more urgent to respond jointly between the public and private sectors. 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 an expo as the best response to the blockization of the global market. "We must be able to withstand shocks from the US or China. To do this, we need to be able to navigate complex relationships with various countries, and there is no better platform than an 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 important to deliver a message that the platform 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 about practically contributing 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.