According to Bloomberg's report on August 6, South Korea's Minister of Industry, Trade and Resources, Kim Jung-woon, stated that as China invests unprecedented resources in the semiconductor industry and global technological competition intensifies, if South Korea cannot help chip companies accelerate their investments, it may lose its leading position in the semiconductor field.
Kim Jong-ngon said at a forum organized by the Korea Senior Media Professionals Association, known as the Kwanhun Club, on Thursday: "What truly concerns me is China. China's development speed is beyond imagination, and this is why I feel an extreme urgency."
Kim Jeong-woon stated that by the end of this decade, the global storage chip market size is expected to grow to approximately $1 trillion. Therefore, speed will become a key factor in determining competitiveness. He added that since semiconductor customers usually rarely switch suppliers once they choose a particular vendor's products, South Korea cannot lose its market share during times of rapidly growing demand.
Currently, South Korea accounts for approximately 65% of the global storage chip market.
He also warned that efforts to distribute semiconductor industry profits more broadly should not be promoted. Kim Jong-gwan said that instead of discussing how to allocate industry benefits, policymakers should focus on how companies can reinvest these earnings into industrial development.
He said, “If we try to divide the benefits derived from the prosperity of the chip industry, it is tantamount to cutting open the last goose in Korea that still lays golden eggs. This money is not meant for distribution, but must be reinvested into development.”
Kim Jung-wang compared South Korea with China, stating that Beijing is investing a large amount of national resources in the semiconductor industry. He said that Korean chip companies still have the financial capacity to expand their investments, but the government should provide support by increasing investment in infrastructure such as electricity and water supply.
Kim Jong-ung also criticized the practice of linking employees' incentive mechanisms to corporate operating profits, stating that shareholders are the true owners of a company, and their interests should be given priority. He warned that this concept should not spread further throughout society, and said that South Korea has become too obsessed with the success achieved in the chip industry. It is necessary to think carefully about what kind of social and economic system one wishes to build.
Jin Zhengguan said: "Who would invest in a company that violates shareholder and investor interests? And who would willingly become the shareholders of such a company? Ultimately, the consequences will fall on the company's management and employees."
