Chairman Chey Tae-won: "We Will Lower AI Costs and Focus on Low-Cost, High-Efficiency AI Data Centers"

"Semiconductor Supply Bottlenecks Cannot Be Solved Immediately"

"U.S. Listing Marks Our Shift from a Korean Company to a Global Enterprise"

"Lack of Sufficient Capital Could Result in Loss of Momentum"

Chairman Chey Tae-won of SK Group stated, "The current costs of artificial intelligence (AI) are too high. We must work together to find technological breakthroughs that can reduce these costs."

According to the industry on July 14, Chairman Chey said during an interview with US tech platform Six Five Media the previous day, "Semiconductor prices are currently too high, and supply is insufficient, which creates a significant burden. Expanding supply capacity requires a certain lead time, so this is not an issue that can be solved immediately," he explained.

In this regard, Chairman Chey introduced a plan to gradually build AI data centers with a total capacity of 15 GW, as part of the government's three major mega-projects, investing approximately 1,000 trillion won.

Chairman Chey said, "We are focusing on creating new AI data centers that can operate at lower costs and generate tokens more efficiently," adding, "To achieve this, we are talking to all our partners."

He also noted, "When we first set up a $1 trillion investment plan, I did not anticipate it would reach such a scale," and added, "But AI has made this possible. AI incurs very high costs and requires AI data centers of considerable scale."

Chairman Tae-Won Chey of SK Group being interviewed by Six Five Media. Screenshot from Six Five Media YouTube.

He evaluated the listing of SK hynix’s American Depositary Receipts (ADR) on the NASDAQ market in the US as significant from three perspectives: securing financial options, improving management structure, and expanding investment opportunities.

Chairman Chey stated, "Since our stock is now traded not only in Korea but also in the US, we can attract new talent and create new opportunities using equity."

He added, "With the participation of new US shareholders, we have also revamped our governance system. This enables us to move beyond being a simple Korean company to becoming a global enterprise, and we can now establish a governance system appropriate for this new status."

Furthermore, he said, "We can expand research and development (R&D) based in the US and gain access to various AI startups," noting that "we can extend our investments beyond just high-end memory to the AI and energy sectors."

In response to a question about his greatest concerns over the next five years—the target period to double memory production capacity—Chairman Chey answered, "The first is geopolitical risk. Sudden events can trigger volatility in energy prices," and explained, "Even as AI develops, if unexpected events occur, we could lose growth momentum, even if only for a short period."

He continued, "The second concern is funding. Enormous amounts of capital are required for AI," adding, "If sufficient funds are not invested, we could lose the tremendous momentum we have now."

He elaborated, "This is because I believe current AI is still incomplete. In about five years, today’s immature AI will have developed into a more reliable one. When that happens, productivity will improve significantly, and a virtuous cycle can begin."

Chairman Chey also emphasized, "The government must continue to provide funding until we reach the era of Artificial General Intelligence (AGI). Otherwise, concerns about national security could arise."

He highlighted that SK Group’s rise as a global AI industry leader is the result of taking on numerous challenges in the face of adversity. Chairman Chey recalled, "I became chairman at age 37. My father always taught me one principle: in life, you face many crises and hardships, but you must not shy away from them—you have to take on the challenge. And he said it is essential to turn adversity into your strength."

He continued, "I’m not naturally drawn to risk, but when I decide that I must take on a challenge, I do so. I enjoyed the process itself," he said. "We have taken on the memory business for nearly 15 years and transformed the memory manufacturing sector, once thought to be a commodity business, into today’s strategic industry."

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