Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (SK Group chairman), said, "The era of the World Trade Organization (WTO) system and free trade, where products could be sold anywhere in the world if well-made, is coming to an end. The good old days are over."
In a video titled "The last card to save Korea, mega sandbox," released on the Korea Chamber of Commerce and Industry's YouTube channel on the 13th, Chairman Chey responded to a question from Kang Mang-rae, a professor at Chungang University, asking, "How do you see the current situation in Korea?"
Chairman Chey noted, "Protectionism has set in, and this situation is unlikely to change easily," adding, "We will likely live in this form of world for decades to come. Now, we will have to adapt and survive on our own."
He stated, "Korea is not young anymore, and it faces social issues like an aging population and low birth rates," and called the situation one of internal and external difficulties.
He emphasized that "Korea must change its business model to one that is export-led," stating, "For that reason, we have no choice but to transition to a new model through innovations such as artificial intelligence (AI) and the technological revolution that are transforming all industries."
Chairman Chey also mentioned issues such as population decline, regional disparities, corporations regulation, and education, noting, "These issues are interconnected," and emphasized that "a new approach is necessary to solve these problems simultaneously."
He suggested the mega sandbox as a solution. The mega sandbox goes beyond the existing sandbox focused on regulatory innovation to select future strategic industries specialized in large regional units such as Daegu-Gyeongbuk, Gangwon, and Chungcheong, suspend regulations, and provide infrastructure and incentives for education, workforce, and research and development.
Chairman Chey explained that it is necessary to create an environment tailored to specific industries through the mega sandbox, ensuring a seamless transition from university education to employment, while designing living, educational, and cultural environments. He also mentioned that "special zones should be operated autonomously to adequately secure the workforce needed by corporations."
He stated, "Adequate infrastructure is necessary. To resolve issues concerning AI and various high-tech industries, building infrastructure is crucial," adding, "There must be at least one place in Korea where AI infrastructure is properly established to facilitate AI transitions in any industry."
Additionally, he said, "When corporations ask, ‘Can we do this?’ it is important to have an open regulatory environment that allows them to say, ‘Do whatever you like.’" He added, "New industries like autonomous driving should not be obstructed by regulations. We need to allow regions and corporations seeking to solve such problems the freedom to do so."
Chairman Chey emphasized that "regions should be able to provide the incentives that corporations want, and that level should meet the needs of not only domestic corporations but also global corporations." He further stated, "Understanding what the demand side wants should start from a bottom-up approach, and it is unreasonable to say that new attempts cannot be made due to laws, so the laws must be flexible if necessary."
This discussion was also featured in the documentary "The Road to Future Society, Mega Sandbox," which aired the day before on KBS1. The discussion included Professor Kang Mang-rae from Chungang University, Son Bo-mi, CEO of Starseed, and Lee Je-hyung from Starletio Korea.