Chairman Choi Tae-won: "AI Must Reduce Social Costs... Relying Only on Goodwill Has Its Limits"

Welcoming Remarks at the Opening of the 3rd Korea Social Value Festa

"AI Must Identify Where to Start Addressing Social Problems"

"A Virtuous Cycle of Goal-Setting, Performance Measurement, and Rewards with AI Is Essential"

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and Chairman of SK Group, presented artificial intelligence (AI) and a "social value measurement and reward system" as the key to reducing surging social costs. He proposed going beyond the traditional, passive approach where companies merely pay taxes from their earnings to solve problems, suggesting instead the need to build an ecosystem where AI is leveraged to pinpoint the crux of complex social issues and provide appropriate economic rewards for the resulting achievements.

During his welcoming speech at the opening ceremony of the "3rd Korea Social Value Festa" held at COEX in Gangnam-gu, Seoul on the 21st, Chairman Choi diagnosed, "One of the biggest problems facing Korea is, of course, slowing and shrinking economic growth, but the growing volume of social expenditures we spend is in fact a bigger issue."

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry and Chairman of SK Group, is delivering a welcoming speech at the opening ceremony of the 3rd Korea Social Value Festa held at COEX in Gangnam-gu, Seoul, on the 21st. Photo by Kim Jinyoung

He explained, "Up until now, much of what I have done has been to generate profits and pay substantial taxes to address social issues. However, this alone is not enough. It is necessary to directly resolve social problems and lower the costs themselves. Only then can we build a healthy society where, even if economic growth slows, there is no need to worry about the cost challenges."

In particular, Chairman Choi highlighted AI technology as a powerful tool for reducing social costs. "There are many concerns that AI will replace jobs and actually create more social problems, but rather than taking a defensive stance, we need to actively solve social issues," he said. "AI should be used to measure complex problems such as aging, caregiving, and climate change, and to identify the areas that require urgent attention." However, he also stressed, "Ultimately, it is human empathy that heals real issues on the ground," emphasizing the importance of human-centered AI utilization.

He also underscored the value of introducing clear measurement of social value creation and implementing economic incentives. "If we expect people to work hard without any rewards and simply say, 'Just rely on good intentions and benevolence,' there will be limits to resolving rapidly increasing social problems," Choi pointed out.

He then shared the results of SK Group's decade-long "Social Progress Credit (SPC)" experiment: "Over 470 enterprises have generated a social impact worth 540 billion won, and the revenue of the rewarded companies has grown approximately 35%." He added, "Counting only the money earned is not enough. It is also important to measure resolved social problems in monetary terms. If a structure is established where problem-solving is followed by rewards, a virtuous cycle will emerge between economic activity and solving social problems."

At the SK hynix booth set up at the "3rd Korea Social Value Festa" held on the 21st at COEX, Gangnam-gu, Seoul, SK hynix showcased cases of care and talent development utilizing artificial intelligence (AI) technology. Photo by Jinyoung Kim

This year's event, now in its third iteration, focused on advancing from awareness to action and from problems to solutions under the theme "Beyond Thought to Action, Beyond Problems to Solutions," introducing execution-oriented collaborative models designed to deliver real results. The number of participating organizations has increased from 344 last year to over 400, and more than 15,000 visitors are expected to attend.

During the main session "Leaders' Summit" held on the first day of the event, about 150 leaders from various fields—including business, government, finance, and foundations—gathered to discuss "How Capital Nurtures Social Value." As a keynote speaker, Kim Jungtae, CEO of MYSC, emphasized the importance of establishing a "blended finance" system, where initial subsidies, philanthropic capital for verification stages, and growth investments are linked sequentially. Blended finance is an advanced financial technique that uses public or philanthropic capital as a catalyst to lower investment risks and encourage private capital for social investment. Kazunari Taguchi, CEO of Borderless Japan, highlighted the importance of "patient capital," where corporate profits are reinvested into startups and stakeholders patiently wait for results.

Within the exhibition hall, four themed zones featured about 300 exhibition and market booths. SK hynix and SK telecom showcased use cases for AI-generated care and talent development, while Hyundai Marine & Fire Insurance introduced an experiential program to help young people turn their experiences in addressing social issues into valuable capability assets. Collaboration with international organizations also expanded, with the United Nations Development Programme (UNDP) co-hosting a Social and Solidarity Economy Activation Forum, and discussions with organizations such as the United Nations Environment Programme (UNEP) and the United Nations Global Compact (UNGC) centered on supply chain sustainability and impact measurement.

Taewon Chey, Chairman of the Korea Chamber of Commerce and Industry (right), and Prime Minister Seungsook Han are touring the exhibition site of the '3rd Korea Social Value Festa' held on the 21st at COEX in Gangnam-gu, Seoul. Photo by Jinyoung Kim

On the second day of the event, September 22, the Ministry of Employment and Labor, together with organizers, will host a forum on youth job creation in the age of AI, alongside a variety of participatory programs for citizens and young people. The Social Value Film Festival will screen movies such as "Capernaum" and "Green Book," and top global e-sports athletes "Doran" (Hyunjun Choi) and "Oner" (Hyunjun Moon) from T1 will participate in a career talk show for youth audiences.

Kim Jeongil, Executive Vice Chairman of the Korea Chamber of Commerce and Industry, stated, "Social issues are becoming increasingly complex, and it is difficult for any single party to solve them alone. We hope this Festa becomes a powerful social solution platform that transforms individual challenges into collective solutions by connecting the capabilities of businesses, government, social enterprises, and civil society."

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