The middle market business community asked the government to support manufacturing innovation and industrial upgrading based on artificial intelligence (AI).
Kim Jung-kwan, Minister of Trade, Industry and Energy, said, "We will actively support securing new growth engines for middle market enterprises."
The Federation of Middle Market Enterprises of Korea (FOMEK) held the "190th middle market CEO luncheon lecture" at the Grand Hyatt Seoul on the 3rd and discussed ways for the Korean economy to make a fresh leap forward, taking the conclusion of the Korea-U.S. tariff negotiations as an opportunity.
Choi Jin-sik, FOMEK chair, noted the urgency of introducing AI on the ground and urged government support so AI can spread across industries.
According to FOMEK's recent "survey on AI adoption and utilization by middle market enterprises," 59.1% of responding corporations recognized the need to adopt AI, but the actual adoption rate was only 18.1%. Corporations pointed to the following as priority tasks for spreading AI: ▲ building AI infrastructure ▲ support for research and development (R&D) and investment expense ▲ training professional personnel ▲ expansion of policy incentives such as tax benefits.
Kim Jung-kwan, Minister of Trade, Industry and Energy, said, "In the 14th to 15th centuries, countries that invented the compass and crossed the oceans gained power that dominated the world for nearly 500 years," adding, "Today, AI plays the role of the compass in the Age of Discovery. We must pioneer the newly opening markets and the world."
He raised eight key keywords that will be central to the AI great transition: ▲ capability upgrading ▲ consolidation ▲ leverage ▲ innovation ▲ speed ▲ ecosystemization ▲ convergence ▲ expansion.
The Minister explained, "If we can discover each company's strengths and connect them through AI transition, they can grow into companies so large they could lift the earth in the future," adding, "Every country is now in a war of innovation. If we do not achieve innovation with a sense of speed in this era, it is virtually the same as not innovating."
Individual middle market enterprises emphasized that support measures that can be felt on the ground are needed. Park Il-dong, DISEC chair, also requested support measures such as tax cuts depending on the degree and completeness of AI transition.
Choi Jin-sik, FOMEK chair, said, "To strengthen the Korean economy's crisis response capabilities under the newly reorganized global economic environment following the conclusion of the Korea-U.S. tariff negotiations, we must hurry an industrial AI great transition, including strengthening innovation capabilities through active AX and creating a data-based smart manufacturing ecosystem."
He added, "Given the dazzling speed of AI development, we will communicate closely with the government and the National Assembly so that a legal, institutional, and policy environment can be established to support manufacturing innovation using AI and the upgrading of advanced industries."
The Minister promised support, saying, "To secure a leading position in the global market, we must embark on pioneering new routes for the changed era based on a deep understanding of AI."