The presidential policy chief emphasized the need for new state infrastructure to support South Korea’s growth in the AI era. Kim Yong-beom, the presidential chief of staff for policy, highlighted the importance of aggressive investment to enhance the country’s potential in AI. He stressed the necessity for a different response to the ongoing semiconductor and AI supercycle, signaling a structural transformation in South Korea’s industrial landscape.
Kim pointed out that the new AI era requires substantial state support, including investments in electricity, land, and a new industrial ecosystem. He mentioned the possibility of establishing a semiconductor cluster in a regional area due to the capital region’s limitations. Discussions on the construction of an additional cluster are in the final stages, with plans to inform the public once finalized.
In addition to infrastructure, Kim underlined the importance of social discussions on utilizing excess tax revenues and addressing social and labor issues in the AI era. He emphasized the need to ensure equitable distribution of the benefits of AI-driven growth. South Korea is projected to achieve a 3 percent real growth rate this year, with a nominal growth rate potentially reaching the 10-percent range, according to the policy chief.
Despite positive economic indicators such as record-high corporate profits and stock market rallies, Kim expressed concerns about the Korean won’s depreciation against the U.S. dollar and instability in the real estate market. He identified these challenges as new priorities requiring attention in the country’s economic agenda.
