Choi Taewon: "AI Must Cut Welfare Costs... Token Economy Experiment Needed"

National Science and Technology Advisory Council and National Economic Advisory Council Host AX Symposium
Kim Seongsik: “Korea Must Differ from Taiwan... A Full-Stack Approach Combining Manufacturing, Data, and Devices Is Essential”

Choi Tae-won, chairman of the Korea Chamber of Commerce and Industry, is delivering a congratulatory speech at the AX Symposium of the National Science and Technology Advisory Council and the National Economic Advisory Council held on the 25th. Photo by Paek Jongmin, Tech Specialist

There was a proposal to utilize artificial intelligence (AI) not just as a tool for industrial growth, but as a core infrastructure to reduce social costs, including increasing welfare expenses due to low birth rates and an aging population. The proposal suggested that Korea should establish an 'AI full stack' strategy—a combination of manufacturing, data, and devices—that differs from the foundry-centric model of Taiwan.

During his congratulatory speech at the 'AX Challenge and Response: National Strategy for Innovation, Growth, and Inclusion' symposium held at the Korea Chamber of Commerce and Industry on June 25, Chairman Choi Tae-won identified 'tokens' as the key to future competitiveness. He stated, “We are entering an era where people will ask for tokens instead of money,” emphasizing the urgency of experimenting with how to realize a ‘token economy’ in a time when AI competitiveness equates to national competitiveness.

Chairman Choi addressed the issue of soaring welfare costs resulting from low birth rates and the aging population, arguing, “We must leverage AI’s capability to reduce ‘transaction costs,’ which is a key feature of the technology.” He explained that, since administrative, review, and intermediary costs increase as welfare benefits are delivered to actual recipients, deploying AI agents can reduce these expenses and increase the real benefits returned to the public.

He also pointed out that there are no clear precedents worldwide for token distribution and operation, expressing confidence that Korea could lead globally if it creates a model to identify and solve people’s pain points.

Chairman Choi further stressed the importance of bold experimentation, stating that innovation cannot happen without trials. He said, “To venture down uncharted paths, we need concepts like AI cities or AI sandboxes,” and expressed concern that “without experimentation, there will be no acceleration in innovation and costs will not decrease.”

As one of the execution models for AI innovation, Chairman Choi also proposed the need for a dedicated ‘AI startup market’ that is separate from the existing startup ecosystem. He stated, “We must enable AI startups to grow in ways that differ from those of the past.” This suggests the necessity of a specialized growth platform that would allow promising AI companies to secure capital and technology more rapidly, in line with an era where AI competitiveness is synonymous with national competitiveness.

In his welcoming remarks, Kim Seongsik, Vice Chair of the National Economic Advisory Council, assessed that while Korea has so far played a central role in supplying hardware such as high-bandwidth memory (HBM), it now needs to move beyond this. He emphasized, “We must become not just suppliers of parts, but partners who co-design next-generation chips and AI infrastructure, sharing intellectual property and added value.”

Vice Chair Kim particularly highlighted that Korea’s path in the global AI supply chain must be distinctly different from Taiwan’s, stating, “We must be different from Taiwan, and we can be different.”

The logic is that, rather than following Taiwan’s semiconductor foundry-centered model, Korea should create differentiated value through its own unique ‘AI full stack’ strategy. To this end, Vice Chair Kim proposed that a system for joint response between the corporate sector and the government at the national level is necessary, and that strong collaborative platforms such as the ‘K-AI Consortium’ should be fully launched.

In his opening remarks, Lee Kyungsoo, Vice Chair of the National Science and Technology Advisory Council, emphasized, “Since AI is now deeply integrated into all aspects of society and daily life—including business, industry, education, and employment—we must develop practical and detailed strategies that address both the opportunities and disparities brought by AI.”

In his congratulatory speech, Deputy Prime Minister Bae Kyunghoon stated, “We are preparing as a key task the establishment of a ‘AI for All’ business platform to create a ‘basic AI society’ where everyone in the country can benefit from AI without exclusion.” He further promised, “We will go beyond merely providing free AI by proactively responding to the era of agentic AI, in which AI directly participates in social and economic activities to find and deliver tangible benefits.”

This symposium, jointly organized by the National Science and Technology Advisory Council, the National Economic Advisory Council, and the Korean Society for Artificial Intelligence, was arranged to discuss national strategies for securing Korea’s AX (AI transformation) competitiveness and achieving inclusive transformation, as AX is restructuring both industry and society at large.

This content was produced with the assistance of AI translation services.