On the 29th, President Lee Jae-myung said at the APEC (Asia-Pacific Economic Cooperation) summit in Gyeongju, "At a time when protectionism and 'our country first' policies are rearing their heads and urgent survival is at stake, words like 'cooperation and co-prosperity' and 'inclusive growth' may sound hollow, but the more severe the crisis, the more the role of APEC as a platform for solidarity will shine." It appeared to point to the intensifying trade conflict stemming from the Trump 2.0 administration's high-intensity tariff measures and the spread of protectionism.
In a special address at the opening of the APEC CEO Summit held that morning at the Gyeongju Arts Center, President Lee referred to the 2005 Busan APEC and said, "The external environment surrounding APEC today is very different from then." Lee said, "Just as there is a saying that a friend in need is a friend indeed, APEC has joined hands at every moment of crisis, demonstrating that mutual trust is the shortcut to mutual prosperity." He added, "Korea, which rallied APEC's unified will 20 years ago, will once again, as APEC chair, lead the path of multilateral cooperation to face the crisis."
Lee said, "As a responsible global power, Korea will make a major contribution to restoring the links of trust and cooperation in the region," naming "supply chains" and "AI" (artificial intelligence) as core agenda items. Lee said, "In 2023, Korea enacted the Supply Chain Stabilization Act to establish domestic and international crisis response systems for supply chains, and at the trade ministers' meeting on May 5 we wrapped up implementation of the APEC Connectivity Blueprint and agreed to strengthen material and institutional connectivity through digital connectivity going forward."
The government also discussed introducing AI in customs and the AI technology and standards framework at the trade ministers' meeting on May 5, and in September formed the AI Strategy Committee, Lee said, adding, "Korea is making sweeping preparations for the AI era and is also working on building an artificial intelligence highway." He continued, "Korea will propose an artificial intelligence initiative at this APEC summit," and said, "We hope a vision for all becomes APEC's new normal."
Lee said, "APEC has led regional free growth at the vanguard of investment liberalization," adding, "To achieve shared prosperity, we must work to distribute the fruits of growth evenly." In this regard, he said, "The APEC Small and Medium Enterprise Innovation Center, established in 2005 under Korea's leadership, continues to provide tailored consulting services to SMEs in the Asia-Pacific," and, "Since 2012, through the Capacity Building Program for Developing Economies, we have shared Korea's accumulated know-how and information on intellectual property rights, trade dispute resolution, and rules of origin."
Regarding talent development, Lee said, "In August this year, Korea established the APEC Future Prosperity Fund and contributed $1 million," adding, "We will prioritize support for five key areas, including research on core issues such as demographics and the environment, as well as knowledge exchange and digital capacity building for youth, startup support, and skills training."
◇Trump touts economic record, says "build your factories in the United States"
On this day, President Trump devoted considerable time to touting the economic performance of his second term in office. He also said a U.S.-Korea tariff negotiation was imminent, and repeatedly highlighted Toyota's $10 billion (about 14 trillion won) investment in the United States. It was effectively a passage pressuring Korean investment. He said, "One year after my inauguration, the United States became 'the hottest country.' The economy, the military, and friendships between nations are stronger than ever. A golden age has opened," adding that U.S. gross domestic product (GDP) grew 3.8% in the second quarter and would grow more than 4% in the third quarter.
He specifically mentioned Minister Kim Jung-kwan, who oversees tariff negotiations with the United States, calling him "a very tough and remarkable person." He then joked, "We wanted someone less outstanding than Minister Kim." Trump said, "Nvidia and TSMC produced cutting-edge chips, and they were manufactured 100% in the United States. We are building semiconductor plants across the country on a large scale, creating jobs for the people," adding, "A great many factories are coming into the United States and auto plants are being built as well."
He also told the heads of Korean corporations to build factories in the United States. Trump said, "The United States is rapidly becoming the best place on Earth to do business. We are eliminating regulations most boldly," adding, "We will strip away bureaucracy and run an administration that says 'yes' to ambitious ideas. The United States has reasonable tax rates and abundant energy, making it the place with the lowest institutional burdens in the world." On the AI (artificial intelligence) industry and electric energy industry, he said, "When building large-scale factories (in the United States), we will quickly grant permits so that power plants can be built alongside them."
Attending the event were major corporate chiefs, including Chey Tae-won, chair of the CEO Summit and chair of SK Group as well as chair of the Korea Chamber of Commerce and Industry; Lee Jae-yong, chair of Samsung Electronics; Chung Eui-sun, chair of Hyundai Motor Group; Koo Kwang-mo, chair of LG; Shin Dong-bin, chair of Lotte Group; Chang In-hwa, chair of POSCO Holdings; Chung Ki-sun, chair of HD Hyundai; and Huh Tae-soo, chair of GS Group.