How Can South Korea Enhance AI-led Growth in 2026?
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Synopsis
As South Korea grapples with economic challenges, leading business lobbies stress the urgent need for AI-driven growth. With calls for public-private partnerships and regulatory reforms, the nation aims to secure its position in the global AI landscape. This is a pivotal moment for South Korea's economy.
Key Takeaways
- South Korea must act quickly to enhance its AI capabilities.
- Public-private cooperation is essential for driving growth.
- Regulatory reforms are needed to support investment in AI.
- Global economic uncertainties continue to pose challenges.
- Business lobbies are advocating for significant changes in local policies.
Seoul, Dec 29 (NationPress) South Korea needs to act swiftly to maintain its global edge in artificial intelligence (AI) through proactive investments in 2026, as emphasized by the country's foremost business associations. They recognize AI as a vital growth area for the nation.
"To achieve global competitiveness in the AI and green transformation sectors, it is crucial to develop the ability to quickly implement significant investment projects," stated Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI), in a New Year's announcement.
Chey, who also leads SK Group, pointed out that such initiatives are essential as South Korea grapples with multiple challenges, including sluggish growth and uncertainties in global geopolitics, as reported by Yonhap news agency.
The chairman has urged the government to reform local fair trade regulations to assist chip manufacturers in securing funds for major investment initiatives, which includes relaxing shareholding rules for launching subsidiaries to attract external investment.
"Enhancing the predictability of local policies is necessary so that businesses, the primary growth drivers, do not encounter obstacles when making investments or pursuing innovations," added the KCCI chairman, stressing that larger companies should not face increased regulations.
The head of the Federation of Korean Industries (FKI), another significant business lobby, underscored the importance of bolstered public-private collaboration in the domain of AI.
"The FKI intends to outline a new growth trajectory for the Korean economy, which includes institutional reforms to boost competitiveness in emerging sectors like AI," said Ryu Jin, chairman of the federation, in a separate statement.
Meanwhile, Yoon Jin-sik, head of the Korea International Trade Association, forecasted that global economic uncertainty will persist into 2026 and promised to support South Korean businesses' international expansion by enhancing and developing various AI-based export support infrastructures, according to the report.
Point of View
Prioritizing innovation and investment in technology could pave the way for sustainable growth.
NationPress
09/01/2026
Frequently Asked Questions
What are South Korea's plans for AI in 2026?
South Korea aims to enhance its global competitiveness in AI through aggressive investments and public-private collaboration.
Why is AI important for South Korea's economy?
AI is viewed as a crucial growth sector that can help the nation overcome economic challenges and uncertainties.
What reforms are being proposed by business lobbies?
Business lobbies are advocating for changes in fair trade laws and regulations to support major investment projects in AI.
Who is leading the call for AI investment?
Key figures like Chey Tae-won, chairman of the KCCI, and Ryu Jin, chairman of the FKI, are leading the push for AI investment.
How does global uncertainty affect South Korea's strategy?
The ongoing global economic uncertainty necessitates swift action and strategic investments to maintain competitiveness in emerging sectors like AI.
