Minister Kim Jungkwan: "The Era of China Catching Up Is Over—Now We Must Catch Up with China"

The 289th Korea Employers Federation Forum: Lecture by the Minister of Trade, Industry and Energy

"The New Age of Great Navigation: M.AX ALLIANCE"

"AI transformation is not a matter of choice, but a matter of survival"

Kim Jeonggwan, Minister of Trade, Industry and Energy, emphasized that companies, the government, universities, and research institutes must work together to rapidly build an ecosystem for the AI transformation of the manufacturing sector.

On the 26th, at the 289th Federation of Korean Industries Forum held at The Westin Chosun Seoul in Jung-gu, Seoul, Minister Kim delivered a lecture on the theme "The New Age of Discovery: M.AX ALLIANCE," stating, "AI Transformation (AX) is no longer a matter of choice, but of survival."

On the 26th, at the 289th Federation of Korean Industries Forum held at The Westin Chosun Seoul in Jung-gu, Seoul, Kim Jeonggwan, Minister of Trade, Industry and Energy, delivered a lecture. Photo by Lee Seungjin

Minister Kim noted that the policy keyword he is emphasizing most these days is "M.AX," which stands for Manufacturing AI Transformation. He said, "If you ask what the Minister of Trade, Industry and Energy is doing, my answer is: first, MAX; second, MAX; and third, MAX," adding, "All our capabilities are being focused on the AI transformation of manufacturing."

He likened the present moment to the 'Age of Discovery' in the 15th century, explaining that countries which embraced new technologies and adapted to change prospered, while those that did not declined.

Minister Kim stated, "Back then, the compass set the course for exploration, and now AI plays the role of a new compass. How well we combine tension, technology, and talent will ultimately determine a nation’s future."

He repeatedly highlighted the sense of urgency by referencing China’s manufacturing competitiveness.

Minister Kim shared his experience of visiting the electric vehicle factory of Xiaomi in China, explaining, "A car is produced every 76 seconds, and the automation rate reaches 91%. There is virtually no inventory; once a consumer places an order, the production schedule is automatically connected in the system."

He further assessed, "In the past, we used to say China was catching up to us, but now it is time for us to consider how we can catch up to China."

Introducing the 'MAX Alliance,' Minister Kim again stressed the importance of AI transformation. The MAX Alliance is a collaborative body led by the government, bringing together large corporations, small and medium-sized enterprises, startups, universities, and research institutes to jointly pursue R&D and AI adoption. The government acts as both facilitator and coordinator, supporting joint R&D and the spread of AI.

Minister Kim said, "Universities working on their own and companies working separately cannot keep up with the speed of change. The government will use R&D funding and policy tools to help everyone research and create markets together."

He reiterated the importance of building an ecosystem. Minister Kim stated, "The reason TSMC is strong is not because of TSMC alone, but because there is an ecosystem of countless materials, components, and equipment companies, along with universities and research institutes, moving together. The era when a large corporation could succeed at AX alone is over."

He added, "AI must be adopted by partner companies too, in order to strengthen the competitiveness of the entire supply chain. The government is also shifting R&D support to focus on the ecosystem as a whole."

He also urged business leaders to take on bold challenges. Quoting the late Hyundai Group Honorary Chairman Chung Ju-yung's famous words, "Have you tried it?", he said, "When companies talk about AI, they mention costs and difficulties first. I hope they will first ask themselves, 'Have you actually tried it?'"

Finally, Minister Kim stated, "The domestic market is continuously shrinking due to a declining and aging population. Korean companies cannot achieve growth by staying within a market of 50 million people."

He continued, "Some 96 to 97 percent of the global market is still out there. The path for Korea to continue to prosper in the AI era is to reach out to the global market through innovation and AI transformation."

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