SK Group Chairman Tae-won Chey dismissed concerns about an artificial intelligence industry bubble and called for massive infrastructure investment to make South Korea a global AI powerhouse.
"Whether it's a bubble depends on what you're looking at," Chey, who also chairs the Korea Chamber of Commerce and Industry (KCCI), said at a joint seminar hosted by the Bank of Korea and KCCI in Seoul on Thursday. "From an industry perspective, it is not a bubble."
Chey acknowledged that stock markets are prone to overshooting, suggesting some bubble elements may exist in equity valuations. However, he said he does not view the AI sector as a bubble given the potential emergence of new types of AI technology.
The remarks came amid growing skepticism from global investment banks about the AI industry's return timeline and technical limitations, drawing comparisons to the dot-com bubble of the early 2000s.
Chey expressed support for the government's ambition to make Korea a "top three global AI power," while outlining his vision for policy direction. "Korea's AI strategy should focus on making our AI more attractive," he said. "Ultimately, we need to create attractive companies."
The SK chief argued that existing companies alone cannot sustain the AI competition, calling for the creation of a dedicated startup market to nurture tens of thousands of AI startups.
To achieve top-three status in global AI, Korea needs substantial resources including talent and capital, Chey emphasized. He projected that the country would need approximately 20 gigawatts of AI data center capacity within the next seven years to compete effectively in the global AI race.
With construction costs of about 70 trillion won ($51 billion) per gigawatt of data center capacity, the total infrastructure investment required would reach 1,400 trillion won ($1.02 trillion) over seven years, he explained.
"This is just for infrastructure construction—including education costs, far more money would be needed," Chey said, turning to Bank of Korea Governor Changyong Rhee to ask whether the central bank could address the financing challenge or research new investment approaches.
The comments appeared to be an indirect reference to the difficulty companies face in securing massive funding for AI infrastructure, as well as recent controversy over his proposal to allow general holding companies to operate private equity funds.
Chey stressed the importance of strategic prioritization for strengthening AI competitiveness. "A distant third place behind the top two is meaningless," he said, expressing concern that efforts to concentrate resources could face obstacles related to preferential treatment allegations.
During the dialogue, Governor Rhee addressed stablecoins, saying the central bank supports their introduction in Korea. However, he noted that regulations and monitoring requirements for capital outflows mean adoption should proceed through banks first.
Lee Hong-rak, head of LG AI Research, who delivered the keynote address, emphasized the importance of cultivating AI talent. "All work will be restructured around AI as it is applied and learned across various fields," Lee said, calling for expanded AI literacy programs through institutions such as AI universities to help employees understand and utilize AI technologies.
Subsequent presentations highlighted the supply-demand imbalance in AI professionals, the need for solutions, and calls for growth-oriented economic policies centered on AI.
