Chairman Choi Tae-won Warns of Negative Growth in South Korea’s Economy and Calls for AI Industry Development in 2026

Chairman Choi Tae-won of the Korea Chamber of Commerce Highlights Structural Slowdown in Korea’s Economy

On the 2nd, Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, delivered a strong warning about the **structural slowdown** in South Korea’s economy during the '2026 Economic New Year Gathering' held at the KCCI building in Seoul’s Jung District[2].

He pointed out, “Thirty years ago, Korea was growing at over 8%, but now the growth rate has declined by 1-2 percentage points every five years, and some are even talking about potential negative growth,” emphasizing that “if things continue like this, serious problems could arise.”

Choi predicted that the next year could be a **turning point** for Korea’s economy and urged a shift toward growth-focused policies[2].

Proposals for Boosting AI Industry and Policy Reforms

Choi stressed that fostering the **artificial intelligence (AI) industry** should be a top priority[2].

He proposed reforms centered on supporting growing companies, establishing a bilateral working group between Korea and Japan, and implementing a **mega sandbox** system to accelerate innovation[2].

• Reforming laws and policies to support growing companies
• Creating a Korea-Japan bilateral working group
• Implementing a mega sandbox system for rapid testing and deployment

Business Leaders Agree and Highlight Trade Achievements

Yoon Jin-sik, President of the Korea International Trade Association, praised the country’s achievement of surpassing $700 billion in exports last year despite global trade challenges[2].

Son Kyung-sik, head of the Korea Employers Federation, emphasized the importance of innovation-driven growth in high-tech industries to revitalize the market and propel Korea’s economic leap[2].

Industry leaders, government officials, and lawmakers are aligned on the need for Korea’s economic rebound and continue discussions on strategies to achieve it[2].

Stock Market Outlook: KOSPI Expected to Rise Further

Lee In-chul, chief analyst at the Korea Economic Research Institute, pointed out that last year’s KOSPI index surpassed 4,200 driven by government policies, liquidity, and a supercycle in AI and semiconductors[3].

He predicts that the ongoing liquidity-driven market environment will likely push the KOSPI even higher this year[3].

Inflation remains stable at around 2.1%, close to the Bank of Korea’s target of 2%, indicating a healthy economic outlook[3].

Recent Economic Trends in Data

In the January 3rd issue of Dong-A Ilbo’s Economic Indicators, news about the U.S. military’s operation pause at Pyeongtaek’s Apache battalion signals a potential **reduction in U.S. forces in Korea**, drawing attention to its implications for Korea’s security and economy[1].

Additionally, market data shows a brief plunge and rebound in gold and silver prices, along with increased investment activity from European universities, highlighting ongoing global economic shifts[5].