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Korea Herald
5 days ago
- Business
- Korea Herald
SK chief says China is biggest AI threat in manufacturing
GYEONGJU, North Gyeongsang Province — South Korea needs to deepen data collaboration with Japan to counter China's growing dominance in AI manufacturing, according to Chey Tae-won, chairman of SK Group and the Korea Chamber of Commerce and Industry. 'China is emerging as the biggest threat in AI in the manufacturing sector. In order for South Korea's manufacturing to survive, it has to outperform,' Chey said during a session on AI at the KCCI's annual summer forum in Gyeongju, North Gyeongsang Province, on Friday. Chey stressed that while Korea possesses a wealth of manufacturing data, China has far more. 'If their learning ability becomes faster and greater, Korea's manufacturing industry will inevitably be hit harder.' Emphasizing the importance of data — which Chey described as "food" to make AI strong and healthy — called for a partnership with Japan. 'Japan has a vast amount of manufacturing data. If the two countries can exchange and co-train this data, we can make a better AI,' he said. The session, titled 'AI for All, AI for Us,' brought corporate executives, startup founders and AI experts together to discuss the real-world application of AI business. Kakao CEO Chung Shin-a, who moderated the session, also highlighted the growing value of data, calling it the 'core competitiveness and resource in the AI era.' Chung added that the AI models have now surpassed the knowledge level of the average person and are capable of reasoning, which opens up new business opportunities using AI. Still, she cautioned that AI is only as strong as its data foundation. 'If the model doesn't study enough data, its performance will deteriorate and the probability of finding the right answer decreases,' said Chung. 'Even if the model has learned enough, if the bias is reduced, there is an issue of accuracy.' Chung also touched on the Industry Ministry's recently announced plans to expand more AI-powered factories in the country. "In return for free cloud services, US tech giants are said to have requested Korean factories to provide manufacturing data,' said Chung. She noted that the US, with its relatively weak manufacturing base, is trying to secure data on variables such as defect rate, temperature and humidity, to study their correlation. The session also featured Korean startups showcasing AI deployments across industries, including Washwat, a laundry service startup that uses AI to process 30,000 care labels daily to provide quality service for consumers. Another startup, Liner, provides a specialized AI search engine for academic research. Vuno predicts heart age, cardiac arrest risk and other diagnoses by AI studying X-rays, MRIs and other hospital data. Going forward, Chey emphasized the urgent need to cultivate talented AI professionals through education and by attracting high-skilled workers abroad for Korea to lead the AI race. 'We need more than 100,000 AI engineers for Korea to stay competitive. And potentially, one million or even 10 million AI experts in the future,' said Chey. To nurture such talent, Chey proposed making AI a required course in universities and tapping into global talent, as education alone takes time and does not always guarantee high-caliber engineers. 'One of the reasons why South Korea isn't growing is brain drain. We raise brilliant minds, only to see them leave for global opportunities,' he said, stressing the need for Korea to become more welcoming to overseas professionals. Chey also called for electricity prices to be cheaper and the adoption of differentiated pricing. Running an AI data center takes enormous power, he said, which is almost like a power plant, referring to SK Group's data center in Seoul's Gasan-gu. 'About 85 percent of the operating cost is just electricity bills,' he said. 'I have repeatedly asked for cheaper electricity.' He also advocated for a market-based electricity pricing system, which charges more for areas far from power generators and less for those nearby. Chey cited the oil prices liberalization in 1980s, which changed from standardized prices nationwide to market-based pricing, suggesting electricity should be the same.
Korea Herald
7 days ago
- Health
- Korea Herald
Death benefit claims for delivery workers in H1 near 2024's full-year total
10 applications filed by bereaved families of delivery workers in first six months of this year Bereaved families of express delivery service workers in South Korea filed 10 applications for government death benefits in the first half of 2025, just two cases short of the 12 submitted for the entire year of 2024, according to government data released Wednesday. Of the 10 applications, seven have been approved so far, according to data from the Korea Workers' Compensation and Welfare Service obtained and released by the office of Rep. Kim Ui-sang of the People Power Party. Last year, nine of the 12 applications were approved. Under Article 62 of the Industrial Accident Compensation Insurance Act, families of workers whose deaths are attributed to occupational causes may apply for survivors' benefits. Until now, no more than 14 applications for industrial accident-related death benefits have been filed per year between 2020 and 2024. This makes the first half of 2025 one of the deadliest periods in recent years for Korea's package delivery industry, commonly known as taekbae. Of this year's 10 applications, three were related to deaths caused by work-related accidents, matching the total number filed in 2024. All three cases this year were approved, while two of the three applications were approved last year. Six applications were filed for deaths resulting from "occupational diseases," of which three have been approved so far. Occupational disease refers to illnesses directly related to the nature of the job, which for delivery workers commonly involve musculoskeletal issues related to the muscles and skeleton. The remaining application was related to a death that occurred while commuting. Express package delivery service, known as "taekbae" in Korea, has become an essential part of daily life, driven by the widespread use of e-commerce. An October report by the Korea Chamber of Commerce and Industry found that, on average, Koreans used express delivery services about 100 times per person in 2023. But there have also been concerns about the health risks faced by delivery workers, many of whom are overworked. KWCWS data released in September showed that 69.7 percent of package delivery workers' deaths from 2020 to 2022 were due to overwork. "We have to review the current system of industrial safety to see if it provides sufficient protection for those working in the field of e-commerce, from factors like extreme heat due to unusual weather and excessive workload," Rep. Kim said. In terms of total industrial accidents in the express package delivery field in the first half of 2025, 757 applications for compensation were filed, and 680 were approved. This is not particularly high compared to 1,556 filed for 2024, with 1,424 approved. But the number of applications for industrial accidents has skyrocketed from 326 in 2020. By far the most common industrial accident for package delivery workers in the first half of the year was accidents; 595 of 627 applications were approved. A total of 86 applications for industrial accidents were filed, with musculoskeletal health issues accounting for 70.
Korea Herald
15-07-2025
- Korea Herald
Classroom out, summer in
Students rushed down the hallway with excitement at Buil Elementary School in Bupyeong-gu, Incheon, Tuesday, marking the start of summer break. Many elementary, middle and high schools across the country are beginning their summer vacations this week, which typically last three to four weeks. This summer, 8 out of 10 Korean office workers are planning to take a vacation, with the vast majority opting for domestic travel, according to a survey released last month by the Korea Chamber of Commerce and Industry. Of 800 respondents, 81.6 percent said they had vacation plans, and 83.5 percent of them preferred domestic destinations. Among domestic travel destinations, Gangwon Province was the most popular, selected by 34.9 percent, followed by the North and South Gyeongsang provinces (27.9 percent), Jeju Island (22.4 percent) and the North and South Jeolla provinces (20 percent). Among those planning overseas trips, the top choices were Japan (50.9 percent) and Southeast Asia (45.4 percent). The most common expected vacation budget per person was 535,000 won ($385), a 9.4 percent increase from last year's 489,000 won.
Korea Herald
25-06-2025
- Business
- Korea Herald
Skilled immigration, Japan ties key to rebooting Korea's growth: KCCI
New report urges mega sandbox reforms, reshoring of fabs, $6tr Korea-Japan bloc to unlock new growth engines South Korea needs to attract 5 million highly-skilled foreign professionals and forge an economic alliance with Japan to tackle its demographic headwinds and counter rising trade protectionism, the Korea Chamber of Commerce and Industry proposed Wednesday. In a policy booklet roughly translates to "New Order, New Growth" delivered Tuesday to the government, parliament, and presidential office, the business lobby outlined structural fixes to help Korea escape the trap of slowing growth and a shrinking labor force. 'This is a time when growth is more necessary than ever. The global landscape is shifting dramatically, and the Korean economy, having failed to bring about lasting change, now faces the risk of zero growth,' wrote Chey Tae-won, chairman of SK Group and KCCI, in the booklet's preface. 'We must work with the new government to build future growth engines for the Korean economy. It's essential to find actionable solutions to reduce high costs by joining hands with global partners.' The proposal comes as the Lee Jae Myung administration works to finalize its national policy roadmap, with input from a new planning committee that is actively soliciting feedback from business and civil society. Among Korea's most pressing structural concerns is a declining working-age population coupled with a limited domestic market. The KCCI argued this can be alleviated by attracting skilled talent from countries such as Vietnam, Indonesia and Malaysia. Beyond addressing labor shortages, an influx of foreign professionals could be expected to stimulate consumption and increase tax revenues. Supporting this approach, studies cited in the proposal showed that a 3 percent increase in skilled and unskilled foreign labor leads to GDP growth of 1.46 percent and 0.85 percent, respectively, in the US, with comparable figures in Japan, underscoring the economic benefits of immigration. The plan recommends visa reforms inspired by Germany's Green Card system tailored for IT professionals, along with family friendly settlement policies. It also proposed reshoring major overseas semiconductor fabs to Korea to attract highly skilled workers on a large scale. In tandem with immigration, the KCCI urges Korea to deepen economic cooperation with Japan, a nation grappling with similar demographic and industrial challenges. The report argues that aligning the two economies could create a $6 trillion economic bloc, eclipsing Germany and positioning Korea and Japan as global rule-makers in trade and regulatory standards. 'If Korea and Japan become each other's second-largest domestic market, they can enjoy productivity gains even in aging societies,' the report said. Joint LNG procurement and coordinated production networks spanning Asia, the US, and the EU could lower costs and enhance competitiveness. The proposal envisioned an emerging Asian economic zone — including Korea, Japan, and other developing countries that could grow to $47.7 trillion by 2030, becoming the world's largest economic region, 1.3 times the size of the US economy. The booklet also called for a fundamental shift away from Korea's longstanding dependence on goods exports, which have fueled remarkable growth -- over 10,000 percent in GDP over 70 years -- but are now hampered by shrinking profit margins and rising protectionism. Manufacturing profitability has steeply declined, with net income per 10,000 won ($7.35) in sales dropping from 830 won in 1995 to just 320 won in 2024, reflecting structural challenges in the sector. To counter this, the KCCI advocated boosting service exports and primary income through strategic overseas investments, pointing to Japan's returns from foreign assets and the UK's robust service economy as benchmarks. One example the group suggested was the industrialization of Korean food and culture exports, including recipe licensing, cooking classes, kitchenware, and interior design, aiming to capture untapped non-tariff export value and open new global markets. To implement these changes, the KCCI proposed expanding Korea's regulatory sandbox into a 'mega sandbox' model. This framework would offer wide-ranging regulatory exemptions, aggressive private sector incentives, talent matching platforms and global-standard living conditions to attract and retain top international talent. The 250-page report was compiled by 13 experts, ranging from think tank researchers and law professors to industry consultants, including Kim Chang-wook, Boston Consulting Group's semiconductor lead in Korea, Suh Dong-hyun, economist at the Bank of Korea, and Kwon Seok-joon, a chemical and polymer engineering professor at Sungkyunkwan University.
Korea Herald
09-06-2025
- Business
- Korea Herald
Lee likely to meet business leaders later this week ahead of G7 summit
President Lee Jae-myung is expected to meet with top business leaders and heads of major economic organizations later this week, ahead of his participation in the Group of Seven summit in Canada, industry sources said Monday. According to the sources, the presidential office is arranging the meeting for Thursday or Friday, with the Korea Chamber of Commerce and Industry coordinating final details on behalf of the business community. The gathering is expected to bring together the heads of South Korea's five major conglomerates -- Samsung Electronics Co. Chairman Lee Jae-yong, SK Group Chairman and KCCI Chairman Chey Tae-won, Hyundai Motor Group Chair Euisun Chung, LG Group Chairman Koo Kwang-mo and Lotte Group Chairman Shin Dong-bin. Other business leaders expected to attend include Sohn Kyung-shik, chairman of the Korea Enterprises Federation, and Yoon Jin-sik, chairman of the Korea International Trade Association. The meeting appears to be aimed at reviewing both domestic and global economic conditions and gathering input from the business community on key pending issues ahead of Lee's participation in the G7 summit, scheduled for June 15-17 in Alberta, Canada. On his first day in office, Lee ordered the formation of an emergency economic task force, and was briefed on the current state of the local economy and the potential impact of a supplementary budget, underscoring his administration's focus on economic recovery as a top policy priority. (Yonhap)
