Choi Tae-won, chairman of the Korea Chamber of Commerce and Industry and SK Group, said on the 19th, "It is time to change the export-led economy."
On this day, Chairman Choi appeared on KBS's Sunday Diagnosis and noted, "Even an athlete who has been wrestling well until now would inevitably face difficulties if asked to swim and compete right away." This is interpreted as meaning that there are limitations to the existing export-led model as uncertainty grows with the inauguration of the Trump administration's second term.
Chairman Choi mentioned that Korea's trade surplus with the U.S. has increased from $60 billion during the four years of the Trump administration's first term eight years ago to $150 billion during the four years of the Biden administration, suggesting a high possibility of facing pressure as a result.
Chairman Choi said, "It is true that we need to strive to avoid excessive trade pressure," and added, "Fundamentally, we are faced with the issue of needing to change the model of making money through exports." He further diagnosed that "the export-led economic model that has been utilized for decades finds it difficult to operate like the past in the current trade order."
In this context, Chairman Choi mentioned economic ties with countries like Japan. He said, "The current rule makers in the global economy are the U.S. in first place, China in second, and the European Union (EU) in third, and we are in a position where we must accept those rules," adding, "South Korea alone lacks the power to change the international order or rules, so we need partners with whom we can collaborate."
Chairman Choi proposed overseas investment and software as models to replace existing exports. He stated, "We need to more systematically develop and sell cultural products that are relatively free from trade pressure." He also mentioned the need to expand domestic demand through the influx of foreign citizens, noting, "About 10% of the population, or more than 5 million foreign workers, are needed."