Latest news with #CheyTae-won
Korea Herald
20-07-2025
- Business
- Korea Herald
KCCI chief suggests EU-style economic bloc between Korea, Japan
Chey Tae-won says tie-up between neighbors in AI, manufacturing could be key to weathering global economic storm Chey Tae-won, chairman of SK Group and the Korea Chamber of Commerce and Industry, doubled down on his proposal for a Korea-Japan economic bloc that is akin to the EU, stressing that the two nations must strengthen cooperation in AI and manufacturing sectors as global economic uncertainties intensify. Envisioning a bloc that would unite the two neighbors — both grappling with stagnant domestic economies, aging population and rising global trade barriers — Chey has been advocating such a union would create a $6 trillion economic zone, making it the world's fourth-largest economy, one that would be better places to combat these shared challenges. "The question is: Is Korea okay the way it is? If not, we need to explore new options that we have never tried before," Chey told reporters during a press conference Thursday on the sidelines of the 48th KCCI summer forum held in Gyeongju, North Gyeongsang Province. 'A Korea-Japan economic bloc could be one of those options, and it can grow into a community like the EU,' he added. Chey acknowledged the proposal may meet with mixed public sentiment, but noted that many Japanese business and political leaders he met were not opposed to the idea. He met with Japanese Prime Minister Shigeru Ishiba in May, advocating for deeper economic cooperation between the two countries. 'Japan thinks a lot more in terms of economic security and it is my understanding that Prime Minister Ishiba is also putting a lot of efforts and interest into it as well," he said. Chey pinpointed artificial intelligence and manufacturing as two critical areas where Korean and Japanese expertise could combine forces. 'To do AI well, we have to join hands with Japan and exchange data with each other,' he said, noting Korea's domestic industry, manufacturing scale and data alone are not big enough on their own. 'When Korea and Japan combine data together, we can even achieve at least some competitiveness," he said. 'There are many issues South Korea cannot resolve alone.' He believes AI could be the very key to tackle Korea's dwindling manufacturing industry. 'In this era of AI, if Korea fails to rebuild its manufacturing industry through AI, a large portion of Korea's manufacturing industry could be wiped out within a decade, he said. 'It's a grim scenario, but AI is our only hope at this point.' Chey raised alarm over China's rapid adoption of AI. "In AI, China is catching up and applying it faster than we are. Korea needs to catch up as soon as possible to stay competitive," he said. On the domestic front, Chey called for efforts to scale Korea's AI ecosystem, including the development of infrastructure, the cultivation of talent and the nurturing of a vibrant startup environment. 'What I want to ask the government is this: Create a market. We need public sector-led AI projects," he said. "Once these projects are launched, startups, mid-sized firms and large companies can all participate and make something. That's how we can increase the number of people with experience and training in AI." To that end, infrastructure is critical, he added. 'We need to make many applications for accessible AI, but more importantly, we need the infrastructure to support them, like AI data centers with GPU capacity," he added. Such resources should be publicly available for startups and SMEs to train AI models and develop practical product. Chey, who is hosting the upcoming APEC CEO Summit in October in Gyeongju, said he hoped the event would promote international cooperation not only in AI, but also in solving broader challenges such as trade issues. 'One thing I would like to see come out of APEC is a clear solution to the tariff issues,' he said but adding it would be ideal if the matter could be resolved before the summit. 'If tariff issues are resolved, it would be a strong signal that economic threats are easing. Beyond tariffs, Chey said he expressed home for new types of cooperation in AI, semiconductors, shipbuilding, steel and automobiles. Chey said he is putting all out efforts to invite many global business leaders to the upcoming meeting. "Our approach now is to ask the (leaders) who they want to meet when they come to Korea," he said. "If they believe they can meet someone important to them here, the likelihood of attendance will increase. Because ultimately, they need a clear reason to come."
Time of India
04-07-2025
- Business
- Time of India
South Korea orders SK Telecom to strengthen data security after leak
SEOUL : South Korean authorities ordered on Friday SK Telecom to strengthen data security and imposed a fine after the country's biggest mobile carrier was hit by a cyberattack that caused the leak of 26.96 million pieces of user data. The measures come after SK Telecom in April disclosed that it had suffered a major leak of customer data caused by a malware attack. The Ministry of Science and ICT said on Friday that it will impose a fine of up to 30 million won ($21,970), and SK Telecom must enforce security measures at least once a quarter, have its chief executive officer directly oversee data governance , and increase personnel and investment in data security. "This... was a wake-up call for information protection not only in the domestic telecommunications industry but also in the overall network infrastructure," Science Minister Yoo Sang-im said in a statement issued after an investigation by the ministry. SK Group Chairman Chey Tae-won apologised last month for the data leak and SK Telecom said it would take full responsibility for any harm caused as a result of the breach, which has caused alarm among its 23 million users over the possible theft of personal and financial information. The mobile carrier said it would start offering free universal subscriber identity module (USIM) replacements to all 23 million users for free at more than 2,600 retail stores nationwide following the cybersecurity breach. About 9.39 million users have replaced their USIMs as of late June, according to SK Telecom.
New Straits Times
04-07-2025
- New Straits Times
South Korea orders SK Telecom to boost data security after major leak
SEOUL: South Korean authorities on Friday ordered SK Telecom to enhance its data security measures and imposed a fine following a cyberattack that exposed nearly 27 million pieces of user data. The directive comes after the country's largest mobile carrier disclosed in April that it had suffered a major data breach caused by a malware attack. The Ministry of Science and ICT said it will impose a fine of up to 30 million won (US$21,970), and required SK Telecom to strengthen its security protocols. These include conducting security audits at least quarterly, placing data governance under the direct oversight of the CEO, and increasing investment and staffing in data security. "This incident serves as a wake-up call for information protection not only in the domestic telecommunications industry but also across the entire network infrastructure," said Science Minister Yoo Sang-im in a statement, following a government investigation. SK Group chairman Chey Tae-won apologised last month for the breach, and SK Telecom said it would take full responsibility for any harm caused. The breach has sparked alarm among its 23 million users over the possible theft of personal and financial data. In response, the carrier said it would provide free Universal Subscriber Identity Module (USIM) replacements to all affected users at more than 2,600 retail outlets nationwide. As of late June, around 9.39 million users had replaced their USIM cards, according to SK Telecom.
UPI
26-06-2025
- Business
- UPI
Analysis: SK Group becomes most profitable conglomerate in Korea
South Korea's SK Group, led by Chairman Chey Tae-won, became South Korea's most profitable conglomerate, according to business tracker CXO Institute. File Pool Photo by Yonhap/EPA-EFE June 26 (UPI) -- SK Group has emerged as the most profitable conglomerate in South Korea thanks to the stellar performance of its key affiliate SK hynix, the world's No. 2 memory chipmaker. According to Seoul-based business tracker CXO Institute on Wednesday, SK Group's subsidiaries recorded $20 billion in operating profit last year, surpassing Samsung Group's $19.9 billion. This means that Samsung Group, a perennial leader in profitability, has now failed to claim the top spot for two consecutive years. In 2023, Hyundai Motor Group led the rankings for operating income. "Throughout last year, SK hynix single-handedly carried SK Group. And the trend is expected to continue this year, which means SK Group may become the most profitable company for two straight years," CXO Institute chief Oh Il-sun told UPI. Lee Phil-sang, an adviser at Aju Research Institute of Corporate Management and former Seoul National University economics professor, echoed that view. "Samsung Electronics is putting forth great efforts to catch up in next-generation chips, but it will take some time. SK hynix is projected to be more profitable than Samsung Electronics this year," he said in a phone interview. Driven by the booming sales of high-bandwidth memory (HBM) chips, which are used for AI applications or supercomputers, SK hynix delivered record-breaking profits in 2024. Its operating profit reached $17 billion, accounting for 85% of SK Group's total, a dramatic turnaround from its $5.68 billion operating loss in 2023. In the first quarter of this year alone, SK hynix chalked up $5.48 billion in operating profit. Based on the impressive results, the company's market capitalization topped $150 billion this week for the first time, trailing only Samsung Electronics' $262 billion. The latter is the world's largest manufacturer of memory chips and smartphones. Despite SK's current edge, some watchers believe that Samsung Group may reclaim the top position this year as the prices of DRAM, a major product of Samsung Electronics, show signs of recovery. "From the third quarter, technology and sales are expected to gradually normalize," Daishin Securities analyst Ryu Hyung-keun noted in a recent report. "While it won't be easy to restore technological competitiveness in a short period, the strategic shift should begin to yield signs of improvement in the second half." Samsung Electronics posted $4.9 billion in operating profit during the first three months of 2025, up 1.2% year-on-year. When it comes to 2024 sales, Samsung Group was the runaway leader with $294 billion, far ahead of $215 billion of Hyundai Motor Group and $152 billion of SK Group. Samsung Group also led in employment as more than 280,000 workers were on its payroll, compared to around 200,000 for Hyundai Motor Group and 150,000 for LG Group. In terms of per-capita turnover, Mirae Asset Group was atop the list with $2.7 million. It is one of the biggest financial conglomerates here, focusing on asset management, brokerage, investment banking, and insurance. "We can say that Mirae Asset workers generated the largest added values on average last year. In other words, the group wins out in efficiency," CXO Institute's Oh said. By contrast, LG Group struggled to find its feet last year as the outfit failed to remain profitable. The Seoul-based group logged $392 million in operating loss, up 38% from a year before. "LG Group has been languishing because its main unit LG Energy Solution faced a double whammy of the electric car chasm and the intensifying competition from Chinese players," said economic commentator Kim Kyeong-joon, formerly vice chairman at Deloitte Consulting Korea. "The group should address both issues to rebound, which is not an easy task," he added. The term EV chasm refers to the weaker-than-expected demand for electric cars in recent years due to the gap between early adopters and mass market consumers. LG Energy Solution is one of the world's foremost EV battery producers.
Korea Herald
25-06-2025
- Business
- Korea Herald
Skilled immigration, Japan ties key to rebooting Korea's growth: KCCI
New report urges mega sandbox reforms, reshoring of fabs, $6tr Korea-Japan bloc to unlock new growth engines South Korea needs to attract 5 million highly-skilled foreign professionals and forge an economic alliance with Japan to tackle its demographic headwinds and counter rising trade protectionism, the Korea Chamber of Commerce and Industry proposed Wednesday. In a policy booklet roughly translates to "New Order, New Growth" delivered Tuesday to the government, parliament, and presidential office, the business lobby outlined structural fixes to help Korea escape the trap of slowing growth and a shrinking labor force. 'This is a time when growth is more necessary than ever. The global landscape is shifting dramatically, and the Korean economy, having failed to bring about lasting change, now faces the risk of zero growth,' wrote Chey Tae-won, chairman of SK Group and KCCI, in the booklet's preface. 'We must work with the new government to build future growth engines for the Korean economy. It's essential to find actionable solutions to reduce high costs by joining hands with global partners.' The proposal comes as the Lee Jae Myung administration works to finalize its national policy roadmap, with input from a new planning committee that is actively soliciting feedback from business and civil society. Among Korea's most pressing structural concerns is a declining working-age population coupled with a limited domestic market. The KCCI argued this can be alleviated by attracting skilled talent from countries such as Vietnam, Indonesia and Malaysia. Beyond addressing labor shortages, an influx of foreign professionals could be expected to stimulate consumption and increase tax revenues. Supporting this approach, studies cited in the proposal showed that a 3 percent increase in skilled and unskilled foreign labor leads to GDP growth of 1.46 percent and 0.85 percent, respectively, in the US, with comparable figures in Japan, underscoring the economic benefits of immigration. The plan recommends visa reforms inspired by Germany's Green Card system tailored for IT professionals, along with family friendly settlement policies. It also proposed reshoring major overseas semiconductor fabs to Korea to attract highly skilled workers on a large scale. In tandem with immigration, the KCCI urges Korea to deepen economic cooperation with Japan, a nation grappling with similar demographic and industrial challenges. The report argues that aligning the two economies could create a $6 trillion economic bloc, eclipsing Germany and positioning Korea and Japan as global rule-makers in trade and regulatory standards. 'If Korea and Japan become each other's second-largest domestic market, they can enjoy productivity gains even in aging societies,' the report said. Joint LNG procurement and coordinated production networks spanning Asia, the US, and the EU could lower costs and enhance competitiveness. The proposal envisioned an emerging Asian economic zone — including Korea, Japan, and other developing countries that could grow to $47.7 trillion by 2030, becoming the world's largest economic region, 1.3 times the size of the US economy. The booklet also called for a fundamental shift away from Korea's longstanding dependence on goods exports, which have fueled remarkable growth -- over 10,000 percent in GDP over 70 years -- but are now hampered by shrinking profit margins and rising protectionism. Manufacturing profitability has steeply declined, with net income per 10,000 won ($7.35) in sales dropping from 830 won in 1995 to just 320 won in 2024, reflecting structural challenges in the sector. To counter this, the KCCI advocated boosting service exports and primary income through strategic overseas investments, pointing to Japan's returns from foreign assets and the UK's robust service economy as benchmarks. One example the group suggested was the industrialization of Korean food and culture exports, including recipe licensing, cooking classes, kitchenware, and interior design, aiming to capture untapped non-tariff export value and open new global markets. To implement these changes, the KCCI proposed expanding Korea's regulatory sandbox into a 'mega sandbox' model. This framework would offer wide-ranging regulatory exemptions, aggressive private sector incentives, talent matching platforms and global-standard living conditions to attract and retain top international talent. The 250-page report was compiled by 13 experts, ranging from think tank researchers and law professors to industry consultants, including Kim Chang-wook, Boston Consulting Group's semiconductor lead in Korea, Suh Dong-hyun, economist at the Bank of Korea, and Kwon Seok-joon, a chemical and polymer engineering professor at Sungkyunkwan University.
