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SK chief calls for infrastructure investment, integration with Japan amid U.S.-China AI competition

Published: 28 Apr. 2026, 17:53

Chey Tae-won, chair of the Korea Chamber of Commerce and Industry, speaks during a seminar on Korea’s growth strategy amid the U.S.-China AI technology rivalry at the National Assembly in Yeouido, western Seoul, on April 28. [NEWS1]

Chey Tae-won, chair of the Korea Chamber of Commerce and Industry (KCCI) and chair of SK Group, called for large-scale infrastructure investments and economic integration with Japan as part of a response strategy amid the U.S.-China competition for dominance in AI .

“AI is about how much knowledge can be stored; in other words, a matter of memory,” said Chey as a presenter at a seminar held at the National Assembly on Tuesday by the Korea-China parliamentary union under the theme of Korea’s growth strategy amid the U.S.-China AI tech race.

According to Chey, four major factors — funding, power supply, GPUs and memory required for data centers — are constraining the spread of AI. As a response, Chey proposed speed, scale and infrastructure.

“AI can only be industrialized if there are factories,” the KCCI chairman said. “Data centers on the gigawatt scale should be expanded to at least 10 gigawatts to 20 gigawatts. Rather than waiting for perfection, we must act quickly and draw in private investment through public demand.”

On the social impact of AI expansion, Chey noted that protecting the work force in a situation where AI is taking over roles by legally restricting layoffs is untenable.

He proposed what he described as a “new capitalism” that measures and compensates social value.

“Until now, performance has been evaluated only in monetary terms, but going forward, social contributions such as the environment and the employment of vulnerable groups should also be assessed,” Chey noted. “So-called good deeds cannot be rewarded unless they are properly measured, and they must be measurable to be institutionalized."

As a long-term strategy, Chey also suggested economic integration with Japan, noting that there are limits to going it alone.

“With its current economic scale, Korea is unlikely to be in a position to set the rules,” Chey said, adding, “If Korea and Japan work together, they would form an economic bloc worth about $6 trillion, reaching roughly two-thirds of China’s GDP and gaining greater bargaining power.”

He also outlined a vision of an expanded economic bloc based on Korea-Japan integration. After securing a certain scale through cooperation with Japan, the bloc could expand southward, encompassing Southeast Asian countries, and northward, linking with northeastern China and Russia’s Far East region.

“There is a demand from neighboring countries to be incorporated into a larger economic bloc,” Chey said. “Once a certain market size is secured, participation can expand naturally.”

This article was originally written in Korean and translated by a bilingual reporter with the help of generative AI tools. It was then edited by a native English-speaking editor. All AI-assisted translations are reviewed and refined by our newsroom.
BY KIM JI-YE [[email protected]]