Chey Tae-won, chair of the Korea Chamber of Commerce and Industry(KCCI) and SK Group, has warned that China poses the greatest threat to South Korea’s leadership in artificial intelligence(AI) for manufacturing and stressed the need for cooperation with Japan.

Speaking at a KCCI summer forum event in Gyeongju on Friday, Chey noted that while South Korea has abundant manufacturing AI data, China now has more and is rapidly advancing in its learning capabilities.

He called for strategic data-sharing with Japan, highlighting the complementary nature of the two countries’ manufacturing datasets.

Chey also cautioned that a brain drain is hampering South Korea’s growth, proposing the creation of English-speaking settlement zones to attract high-level foreign AI talent.

He further urged reforms to South Korea’s electricity pricing system, warning that high energy costs are hindering data center operations and slowing the AI industry’s progress.