Chey Tae-won: "Korea and Japan Must Integrate Economies… Developing New Semiconductors with Japan"

Interview with Japan's Yomiuri Shimbun… "Would Become the World’s 4th Largest Economic Bloc After the U.S., EU, and China"

SK Group Chairman Chey Tae-won has reiterated the need for economic cooperation between South Korea and Japan, modeled after the European Union (EU).

As a concrete example of this economic collaboration, Chairman Chey also revealed the status of a new semiconductor project that transmits communication data in the form of light rather than electricity.

In an interview published in Japan’s Yomiuri Shimbun on the 22nd, Chairman Chey addressed the recent decision by the South Korean government to review joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). He noted that while joining the CPTPP is a positive step, what is truly needed is not just a loose economic alliance, but a full economic integration similar to the EU.

SK Group Chairman Chey Tae-won attending the Osaka-Kansai Expo [Provided by KCCI. Redistribution and DB prohibited]

The CPTPP is a multilateral Free Trade Agreement (FTA) launched in 2018, led by countries including Japan. The South Korean government held an economic ministers' meeting on the 3rd and decided to review the possibility of joining the pact.

Chairman Chey has been advocating for a Korea-Japan economic bloc for several years, emphasizing the importance of bilateral economic cooperation.

Regarding such an economic bloc, he emphasized, "It could reduce social costs and expenses related to economic security," adding that "it would become the world’s fourth-largest economic zone after the U.S., EU, and China."

Chairman Chey added, "While trade volume between Korea and Japan has increased significantly, it will be difficult to grow the economy through trade alone in the future," suggesting that artificial intelligence (AI) and semiconductors could serve as prime examples for cooperation.

Regarding the tariff policies of the Donald Trump administration in the U.S., he said, "It is causing a global reorganization of supply chains and shifts in trade order," and stated, "We need to adapt to this new environment, and joint efforts between Korea and Japan are crucial."

Identifying AI and semiconductors as high-potential areas for Korea-Japan economic ties, Chairman Chey introduced examples of SK Group's economic cooperation with Japan.

He explained, "We are in discussions with Japan's NTT regarding semiconductor technology development," and "We are also participating in the 'IOWN (Innovative Optical & Wireless Network)' project to develop new semiconductors."

IOWN is a multinational next-generation communication network project involving companies such as NTT, SK Telecom, Sony, and Intel. The project aims to develop technology that transmits communication data using light rather than traditional electricity, allowing for faster speeds with zero latency and reduced power consumption.

Some foreign media outlets reported early last year that NTT received 45 billion yen in support from the Japanese government for the IOWN project, with SK Hynix and Intel participating in the semiconductor development.

Chairman Chey also explained, "We are in talks with Japan's NTT on semiconductor technology development and maintain active exchanges with companies like Tokyo Electron," adding, "If the right conditions are created, SK is ready to make larger investments in Japan, and the intention to invest is clearly there."

The newspaper reported that the interview took place on the 15th during Chairman Chey’s visit to the Osaka-Kansai World Expo. Yonhap News