Choi Tae-won "45-Minute Meeting with US Commerce Secretary... Presented 3 Key Cards: Investment, Energy, Synergy"

Recognition of Korea as an Important Partner
Structural Explanation: Trade Surplus as a Result of Investment
Reviewing the Use of Pohang Cruises for APEC Preparation

Choi Tae-won, chairman of SK Group and the Korea Chamber of Commerce and Industry (KCCI), presented three strategic measures to respond to trade pressures from the United States: local investment, expanding the share of U.S. energy imports, and creating economic synergies between the two countries. During his recent visit to the U.S., Chairman Choi held a 45-minute private meeting with U.S. Secretary of Commerce Gina Raimondo and said, "I felt that Korea is recognized as an important economic partner."

At a press conference marking his fourth anniversary in office held on the 25th at the KCCI in Jung-gu, Seoul, Chairman Choi said, "Secretary Raimondo met the Korean delegation personally despite her busy schedule just before her inauguration oath," and evaluated it as "a meaningful occasion to convey the trade logic and strategic messages we wanted to deliver."

He viewed the possibility that the U.S. might use tariffs as a card regarding the trade imbalance issue between Korea and the U.S. Chairman Choi explained, "Over the past eight years, Korea has been the largest foreign direct investment (FDI) country for the U.S., mostly centered on manufacturing greenfield investments (establishing production facilities or corporations in the investment country)." He added, "The structure is such that most of the equipment or intermediate goods needed to operate factories in the U.S. must be imported from Korea." He further noted, "Korea's investment in the U.S. and its trade surplus are two sides of the same coin."

The U.S. Secretary of Commerce reportedly showed a proactive attitude toward large-scale investments by Korean companies. Chairman Choi said, "She mentioned that companies investing over $1 billion would receive incentives, and those investing over $10 billion would be treated like having a butler, receiving the best treatment," adding, "Her strong business mindset was evident, fitting for someone with an entrepreneurial background."

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, is speaking at a press conference held on the 25th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, marking his 4th anniversary in office.

Trade Is Not a Zero-Sum Game but Synergy... Expanding Energy Imports Also a Card

Chairman Choi emphasized, "Rather than a simple zero-sum game balancing imports and exports, a model where both countries create joint profits is necessary," and added, "Expanding imports of U.S.-produced liquefied natural gas (LNG), crude oil, and other energy sources has practical benefits for Korea in that context." This is because it can reduce dependence on the Middle East and serve as a strategic card with the U.S.

The principle of reciprocity in trade policy was also confirmed during the meeting. Chairman Choi said, "The U.S. expressed that it would apply tariffs and non-tariff measures correspondingly depending on how Korea responds to U.S. products," noting that although no specific items were mentioned, the signal was clear.

Regarding controversies over non-tariff barriers, he said, "Circumstances differ by industry, and since these are internal policies, it is not a simple issue," but added, "It is time to check whether our logic is valid and to examine the details." He also mentioned practical concerns, saying, "Companies entering the U.S. market sell products according to U.S. regulations, but it is difficult for U.S. companies to make separate products tailored to Korea."

"A Crisis Greater Than Hollowing Out: Manufacturing Competitiveness... Must Respond with AI"

Chairman Choi also expressed his stance on concerns about the hollowing out of manufacturing. He said, "The export-driven economic model, which has been dominant since the 1970s, is reaching the end of its life," and added, "Now, the criterion that determines competitiveness is how well artificial intelligence (AI) is integrated into manufacturing." He further stated, "Without AI manufacturing capabilities, whether building domestic factories or overseas ones, companies will inevitably fall behind in competition."

He showed a sense of crisis regarding AI technology. Chairman Choi warned, "Korea does not possess a large language model (LLM) independently, and its technological capability remains outside the top 10," adding, "If we fail to embed LLM internally, we could become an AI-dependent country." He continued, "The government must promote software infrastructure and engineer training at the national level."

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, is speaking at a press conference held on the 25th at the Korea Chamber of Commerce and Industry in Jung-gu, Seoul, marking his 4th anniversary in office.

Issues Raised Over Uniform Application of 52-Hour Workweek... “Law Can Lose Its Purpose in Reality”

He also shared his views on recent demands for exceptions to the 52-hour workweek, especially in the semiconductor and AI industries.

He gave an analogy: "Imagine a rule that says you must take only the bus to work." Chairman Choi explained, "While commuting is possible, in urgent meetings or heavy traffic, options like motorcycles or taxis might be necessary," and added, "Regulations that fundamentally block such choices inevitably harm individuals." He further said, "Although laws may be generally appropriate, they can act unreasonably in special circumstances." He emphasized, "Even if laws start with good intentions, they may not function as intended in reality," and stated, "If the original purpose of a system conflicts with reality, it must be changed or adjusted."

Chairman Choi repeatedly explained the 'paradox of law' by citing examples from the U.S. He said, "When electricity was first introduced, electric shock accidents were frequent, so the U.S. issued licenses only to those who could handle electricity," but "over time, electric shock accidents actually increased." This was because people who could not afford the license ended up taking risks on their own. He explained, "Like this case, if a system does not work as intended, side effects arise," and clarified, "This does not mean regulations are unnecessary, but excessive regulations can suppress autonomy and creativity and may not help solve social problems."

"Uncertainty Is the Greatest Risk... Korea Needs a 'One Team' Strategy"

Chairman Choi diagnosed, "Spring has come, but the economy is frozen," and said, "Complex risks in trade, finance, technology, and politics overlap, putting companies, self-employed people, and citizens all in an overcapacity situation." He emphasized, "There is hope for rapid improvement, but the gap with the outlook is large," and added, "The biggest enemy is uncertainty." He said, "If decisions are delayed, nothing can be done, and this becomes the greatest threat to our economy."

He stated, "In such times, the government and the private sector cannot act separately," and called for "a 'one team' strategy where companies and the government cooperate structurally." He also added, "It is time to send a clear message about what economic model Korea will pursue and what global positioning it will take."

Regarding the Asia-Pacific Economic Cooperation (APEC) summit to be held in Gyeongju this November, he explained, "With about 1,700 global CEOs attending, an economic effect of 7.4 trillion won and the creation of 23,000 jobs are expected." However, he noted, "If more people than expected gather, there may be insufficient preparation for accommodation and transportation," and emphasized, "Comprehensive preparations are needed together with local governments in Gyeongbuk and Gyeongnam." He mentioned that various preparations, including using Pohang as a cruise docking site, are underway.

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