Latest news with #GlobalBusinessForum
Korea Herald
29-05-2025
- Business
- Korea Herald
South Korea must brace for slow growth, invest in AI to survive, experts warn
A financial risk strategist and an AI scholar on Thursday warned that South Korea must brace for a prolonged low-growth era, urging businesses and individuals to prepare for structural changes in the economy — from the fragmentation of global trade to the explosive rise of artificial intelligence. Speaking at the Global Business Forum hosted by The Korea Herald in Seoul, Cho Bong-hyun, executive vice president of IBK Insurance, said Korea is entering a structural downturn that may resemble Japan's lost decades and warned that the country can no longer rely on past growth formulas to stay competitive. 'We are not just facing a cyclical slowdown,' he said. 'We are entering a new normal of low growth, and it will be long-term.' Cho pointed to persistent inflation in the US, the likelihood of extended high interest rates and a slowing Chinese economy as external risks. But he emphasized Korea's internal vulnerabilities as even more urgent. 'Domestic demand is weak, household debt remains high and the housing market is unlikely to rebound even with monetary easing,' he said. 'Asset prices are entering a correction phase.' On the structural front, Cho highlighted the looming demographic crisis. "Starting in 2025, Korea will see a steep decline in its working-age population. This will shake the foundations of our pension, labor and financial systems,' he said. 'It may sound pessimistic,' Cho added, 'but preparing for the worst-case scenario is wiser than clinging to outdated assumptions.' To respond to these complex transitions, Cho urged Korean businesses to embrace what he called 'dynamic balancing,' the ability to alternate between outward expansion and internal consolidation depending on global and domestic conditions. 'Now is not the time for blind expansion or excessive risk aversion,' he said. 'We need companies to be nimble, and capable of both advancing outward and consolidating inward, depending on shifting conditions.' Yet flexibility alone, he said, is not enough. 'In a time of low growth, innovation isn't just a choice. It's the only way forward.' Meanwhile, Choi Jae-boong, a mechanical engineering professor at Sungkyunkwan University, said the next three years would be decisive for Korea's future in AI. 'AI development is accelerating like a revolution,' Choi said. 'After three years, the pace will slow. You must act now.' He cited the explosive growth of US-based AI firms, noting that the combined market capitalization of the top seven US AI companies surged from $13 trillion in 2024 to over $17 trillion in 2025. 'In contrast, Korea's largest company is worth only $400 billion,' he said. 'We must ask ourselves — are we part of the future or not?' Still, Choi said Korea has a unique strength: its world-class hardware and manufacturing capabilities. He pointed to Samsung Electronics and SK hynix as key suppliers of high-bandwidth memory chips used in AI training, including models such as ChatGPT. 'These firms are already powering the AI engines of today,' he said. 'No AI runs without hardware, and that hardware often starts in Korea.' He added that while countries like China may have scale, they lack the geopolitical trust necessary to be a reliable partner in global supply chains. 'The US needs partners who are both technologically capable and politically aligned. Korea fits both criteria,' Choi said. To seize that opportunity, Choi emphasized, Korea must escape its bureaucratic mindset. 'Too often, innovation is paralyzed by questions like: 'Who will take responsibility if it fails?'' he said. 'But while we hesitate, others are already building.'
Korea Herald
15-05-2025
- Business
- Korea Herald
2025 Global Biz Forum highlights business opportunities in Vietnam
Leaders from across Korea's business and public sectors gathered in Seoul on Wednesday for the ninth session of the 2025 Global Business Forum, exploring investment opportunities in Vietnam, as the country's deputy envoy reaffirmed Hanoi''s commitment to supporting global investors. Organized by The Korea Herald and Herald Business, the Global Business Forum serves as a platform that brings together business executives, diplomats and cultural figures to share insights on market trends and leadership strategies. The forum hosts weekly sessions featuring speeches from prominent voices across various sectors. The Wednesday session, titled "CEOs Expanding Globally," was held at the Prugio Summit Gallery in Gangnam, southern Seoul. Nguyen Thi Thai Binh, deputy chief of mission at the Vietnamese Embassy in Seoul, delivered a keynote address on behalf of Ambassador Vu Ho. 'South Korea has always been among the leading countries in investment and trade in Vietnam,' Nguyen said during her speech. 'It can be said that Korean enterprises are seen as an important bridge to foster the bilateral cooperation partnership (between Korea and Vietnam) and make it more practical and effective.' During her speech, Nguyen highlighted Vietnam's commitment to creating a supportive environment for foreign enterprises to thrive and contribute to the country's economic development. According to the deputy chief of mission, Vietnam is focusing on three strategic actions to attract investors: streamlining administrative procedures, enhancing communication and transportation infrastructure and developing human resources. These initiatives aim to reduce bureaucratic hurdles, provide a reliable business environment and offer a skilled workforce for foreign enterprises. With ongoing innovations, Vietnam will continue to offer flexible solutions and preferential policies in response to the rapidly evolving global market, she said. The country is particularly committed to supporting a wide range of emerging sectors that are shaping the future economy, from green and circular industries to the entertainment sector and digital economy. 'Vietnam pledges to always accompany and share with Korean enterprises our ideas, visions and actions to ensure the legitimate rights and interests of Korean enterprises on the basis of legal business, increase cooperation efficiency,' the deputy chief added. Daewoo Engineering & Construction also delivered a presentation at the forum on its overseas projects, offering a range of exemplary cases that demonstrated how a company can expand globally. Lee Kang-seok, head of Daewoo E&C's external affairs division, highlighted the company's smart city project near Hanoi, Vietnam spanning 1.86 million square meters, along with several other ongoing developments in the country, underscoring the investment opportunities Vietnam offers to international businesses. In particular, the presentation highlighted the company's expanding role as a globally recognized urban developer under the leadership of Chair Jung Won-ju, who took on the role in 2023. 'Daewoo is no longer just a construction company. We are increasingly engaged in shaping environments where people can live and thrive together around the world,' Lee emphasized. The session concluded with a speech by Kim Young-se, CEO of US-based industrial design consultancy Inno Design and the designer of the Olympic cauldron for the 2018 PyeongChang Winter Games. Kim emphasized that the ability to entertain others is a fundamental element of successful business, applicable anywhere in the world. 'I always ask our designers to approach their work as if they are trying to entertain the one they love. I confidently tell them, 'if you design with that mindset, it will sell well,'' said the CEO. 'And this mindset goes beyond just design.'
Zawya
10-04-2025
- Business
- Zawya
Expo Centre Sharjah showcases its diverse lineup of specialized events and exhibitions
Sharjah: Expo Centre Sharjah, represented by H.E Saif Mohammed Al Midfa, CEO of Expo Centre Sharjah and Board Member of the Global Association of the Exhibition Industry (UFI), participated in 55th annual World Trade Centers Association (WTCA)'s Global Business Forum (GBF) recently held in Marseille, France. This participation underscores the Centre's commitment to staying abreast of the latest developments and best practices associated with the global conference, business and exhibition industry. During the global gathering, H.E Saif Mohammed Al Midfa engaged in discussions with several forum participants outlining the advancements and recent progress within the exhibitions sector and the performance indicators recorded during the past period. He emphasized Expo Centre Sharjah's pivotal role in contributing to sectoral growth through its portfolio of specialized trade shows which serve as catalysts for trade and business development in Sharjah. He further highlighted the Centre's commitment to facilitating strategic partnerships, promoting business sustainability, and integrating cutting-edge technologies to optimize exhibitor experience and competitive positioning. Al Midfa affirmed that the participation of over 300 delegates from more than 50 countries at the WTCA Global Business Forum offered a unique platform for advancing key strategic goals. These included exploring cooperation opportunities, fostering the exchange of expertise, and identifying more ways to develop the services offered by Expo Centre Sharjah in accordance with the best global practices. The forum also served as a valuable opportunity to Promote the Centre's calendar of business-focused exhibitions and events. He noted that the Expo Centre Sharjah's participation in the 2025 GBF is part of a broader vision to strengthen the Centre's role as a leading platform for trade and business on both the local and regional levels. This strategic direction focuses on strengthening international partnerships with global trade centers and related institutions, while also investing in infrastructure and technological advancements to deliver world-class services. These efforts aim to attract a broader range of international events to Sharjah, thereby contributing to the diversification of the local economy and promoting sustainable development. During the forum, Expo Centre Sharjah's delegation participated in discussions focusing on the importance of adapting to economic changes by employing innovative strategies that ensure the sustainability and growth of the business sector. The forum also addressed strategies for speeding up expansion into emerging markets, enhancing collaboration between members, and promoting innovation in processes and services within the sector to drive economic growth and increase its contribution to global economic development. For further information, please contact: Ali Elgendy Misbar Communications ali@ Ahmad Aldwairi Misbar Communications
Korea Herald
03-04-2025
- Business
- Korea Herald
AmCham chief stresses Korea-US alliance, economic potential at Global Biz Forum
The American Chamber of Commerce in Korea Chair and CEO James Kim highlighted the promising future of South Korea-US economic ties despite near-term challenges, during a session at the Global Business Forum on Wednesday. The GBF, organized by The Korea Herald and Herald Business, is a 15-week program held every Wednesday, setting the stage for discussions among business leaders, experts, scholars and diplomats on global business trends. In his keynote speech, 'Korea at the Crossroads,' CEO Kim expressed optimism about the business relationship between South Korea and the US as one that continues to benefit both countries. 'Korea, as the sixth-largest trading partner of the US, is investing heavily in the United States while creating jobs there,' Kim said, noting that the US also plays a vital role in the Korean economy as both a trade partner and investor. According to Kim, that's where AmCham serves as a vital bridge that helps drive investment in both directions. 'Korea is now a major contributor to investment in the US, surpassing Taiwan, Japan and China,' he added. Kim further acknowledged Korea's untapped potential as a global business hub, noting that it has fewer regional headquarters than Asia-Pacific peers such as Singapore and Hong Kong. 'For a country of this magnitude and with this level of infrastructure, the number is far too low,' he said. 'We need to recognize that Korea may not have competed as effectively with other players in the region.' Amid looming challenges for Korea, including US President Donald Trump's tariffs, the nation's ongoing political crisis and various regulatory barriers to attracting foreign firms, Kim explained that AmCham has been working to address these issues. 'What AmCham has also done is make sure that Korea stands tall,' Kim remarked, highlighting the chamber's role in enabling effective communication between both sides and its 'Buy American' campaign, which has helped strengthen trade and economic ties. Looking ahead, Kim described the alliance as rock-solid: 'There may be some short-term setbacks, but in the long run, we're headed toward a strong and promising future.' As the evening progressed, other prominent speakers addressed the challenges facing Korea. Kim Gwang-suk, a researcher at the Institute of Korean Economy and Industry and an adjunct professor at Hanyang University's Graduate School of International Studies, shared his outlook on an impending shift in the global economic landscape. 'The world has entered an era of muted growth, but not recession,' Kim said. 'What Korea needs is to confront the reality head-on — that we are falling behind China and remain vulnerable to American protectionism. Only by acknowledging this can we chart a path forward.' As one solution, Kim suggested that Korea deepen engagement with new emerging markets, singling out India as a prime example due to its rapid economic growth. Turning the focus to Korean society, Yoo Seong-ho, a professor in the department of forensic medicine at Seoul National University College of Medicine, emphasized the growing importance of health, particularly as the nation undergoes rapid aging. 'With health care costs expected to rise alongside increasing life expectancy, it's important to stay healthy and face the final chapter of life without regret,' he said. He explained that discussions surrounding 'well-dying' are closely tied to overall well-being, and that it is worth reflecting on how we want to approach the end of life.
Korea Herald
27-03-2025
- Business
- Korea Herald
German envoy calls for deeper ties in defense, climate
Germany has entered a new era of defense and infrastructure investment, driven by a dramatic shift in fiscal policy and a renewed call for international cooperation amid escalating military tensions, the country's top envoy to South Korea said Wednesday. 'To enable this shift, Germany passed a constitutional amendment — approved by a two-thirds majority in parliament — allowing greater borrowing flexibility through two special funds totaling an estimated 500 billion euros ($538 billion),' said German Ambassador Georg Schmidt at the Global Business Forum held Wednesday evening in Seoul. The event was organized by The Korea Herald and Herald Business. One of the new funds is dedicated to defense and security, covering cyber defense, civilian protection and aid to Ukraine. The other targets infrastructure and climate-related transformation, including 100 billion euros earmarked for sustainable projects. 'This is more than just meeting NATO's goal of spending 2 percent of GDP on defense. It's about fundamentally rethinking our approach to security,' Schmidt said. He noted that the shift reflects broader geopolitical concerns — particularly growing uncertainty over US security commitments to Europe and escalating threats from Russia, which he said has effectively transformed into a wartime economy, with around 60 percent of its national expenditures now devoted to military purposes. Schmidt emphasized that these developments are relevant not only to Europe, but also to countries like Korea. 'Germany's firm support for Ukraine sends a message not only to Russia, but also to North Korea,' he said. Schmidt highlighted Korea's formal defense and security partnership with the European Union, saying it opens the door to future cooperation in emerging security technologies. At the weekly forum, Kim Yong-sub, founder of Trend Hitchhiking and an independent business insight provider, also spoke about how shifting social values among younger generations are reshaping consumer behavior in Korea. 'We're now seeing more consumers — particularly those in their 20s and 30s — who no longer view marriage, homeownership or having children as essential life goals,' Kim said. 'Instead, they seek meaning through personal hobbies, pet ownership, solo travel or simply choosing to remain single.' He added that this shift is already reshaping Korea's economic landscape, with declining demand for products targeting traditional nuclear families and rising sales in sectors like home fitness, pet care, wellness and single-person appliances. 'Companies that continue to target a lifestyle that fewer people aspire to will struggle to stay relevant,' he said. Next, Chae Sang-wook, CEO of Connected Ground and host of the real estate YouTube channel Chaebushim, provided a macroeconomic perspective on the broader implications of Korea's record-low fertility rate of 0.75 birth in a woman's lifetime. 'This isn't just a social issue. Fewer births mean a smaller domestic market and shrinking GDP (gross domestic product),' Chae said. He added that housing market trends already reflect this shift: While the top 20 percent of apartments in Seoul have recovered or surpassed 2021 price levels, the majority remain below prepandemic prices — especially when adjusted for inflation and the Korean won's depreciation against the US dollar. Beyond demographics and consumption trends, Chae emphasized the importance of strategic asset planning in an increasingly volatile global environment.
