Choi Tae-won, president of the Korean Chamber of Commerce and Industry, gives a New Year’s greeting at a Seoul business community event held at the Korean Chamber of Commerce and Industry Building in Seoul on January 7, 2026. Photo provided by: Yonhap News
January 18 (Asia Today) — Choi Tae-won, president of the Korean Chamber of Commerce and Industry, said South Korea needs fundamental regulatory reform and a national artificial intelligence strategy to combat what he calls structurally low growth, hovering around 1%.
In a broadcast interview on Sunday, Choi likened the economy to a “bicycle with brakes on” and warned that without a shift to growth-oriented policies, South Korea’s outflow of capital and talent could accelerate.
Choi said South Korea’s potential growth rate has fallen to about 1.9%, and the actual growth rate is even lower, closer to 1%. He argued that stalled growth would lead to an exodus of young people, reduce resources for redistribution, fuel social conflict, and strain democratic stability.
He cited what he called a “tiered” regulatory system as a core cause, with obligations and restrictions increasing rapidly as companies grow, reducing incentives to expand. He urged a shift from a framework that protects small and medium-sized businesses while reining in large corporations to one that incentivizes companies to expand.
Choi also criticized what he called excessive financial penalties that can discourage investment, arguing that the risk of criminal penalties can outweigh the expected benefits in corporate decision-making.
On AI, he described the technology as a civilizational shift and called on governments to treat it as a national strategic priority. He called for world-class AI infrastructure, a dedicated startup market centered on what he called the “AI generation,” and a proof-of-concept support system to accelerate commercialization.
Choi also proposed closer economic cooperation with Japan, suggesting that introducing a common visa system similar to Europe’s Schengen area could generate around 3 trillion won ($2.2 billion) in added value, along with tourism and other synergies.
— Asia Today reported. Translation by UPI
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