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

Choi Tae-won, Chairman of the Korea Chamber of Commerce and Industry, Issues New Year Warning

On January 2nd, at the '2026 Economic Leaders New Year Gathering' held at the Korea Chamber of Commerce building in Seoul’s Jung District, Chairman Choi Tae-won pointed out the structural slowdown in South Korea’s economy. He warned that, "Thirty years ago, Korea was growing at over 8%, but now we’re even talking about the possibility of negative growth," calling it a serious concern.

Choi emphasized that 2026 will be a critical year for South Korea’s economy—either it slides into negative growth or becomes the launchpad for a new era of growth. He urged a shift towards growth-oriented policies to turn things around.

Promoting AI Industry and Policy Recommendations

Choi highlighted artificial intelligence (AI) development as a key focus, proposing reforms to support growth-driven companies, establishing practical cooperation between Korea and Japan, and implementing a ‘Mega Sandbox’ system to foster innovation.

Industry insiders agree and stress the need for renewed momentum. Yoon Jin-sik, President of the Korea International Trade Association, praised last year’s export milestone of over $700 billion and highlighted Korea’s strong position in the global trade landscape.

Remarks from Korea Employers Federation President Son Kyung-shik

• Creating a timely investment environment for businesses
• Driving market vitality through advanced industry innovation
• Expecting a major economic transformation

Son Kyung-shik, head of the Korea Employers Federation, discussed how focusing on innovation in high-tech industries could propel Korea’s economy forward.

Stock Market Trends and Economic Indicators

The KOSPI recently broke past 4,200 points, signaling a bullish trend. Key drivers include government policies, liquidity, and a booming AI and semiconductor cycle.

Last year’s inflation rate was 2.1%, close to the Bank of Korea’s target of 2%. Meanwhile, Korea’s foreign exchange reserves stand at around $420 billion, and returns from domestic stock investments by the National Pension Service are attracting attention.

Global Economic Impact

Discussions are underway about how the U.S. Trump administration’s increased tariffs (around 18.75%) could influence the global economy. Korea’s stock market has surged by 76%, ranking as the top performer worldwide, which many see as a positive sign.

Gold and silver prices experienced a quick dip but are now rebounding, with long-term growth prospects remaining strong.

U.S. Military Presence in Korea

The U.S. announced the suspension of operations at the Apache battalion at Pyeongtaek base, which is seen as a signal of potential troop reductions. This development could impact Korea’s security and economic stability moving forward.