Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won speaks during a press conference at the chamber's headquarters in central Seoul, Tuesday. Courtesy of KCCI

Korea Chamber of Commerce and Industry (KCCI) Chairman Chey Tae-won called for a reassessment of the country's traditional economic model of "exporting goods manufactured in Korea," in light of growing geopolitical and trade risks beyond its control.

Chey made the remarks following his recent visit to the United States, where he led a Korean business delegation to meet key officials from the Donald Trump administration — including Secretary of Commerce Howard Lutnick — in an effort to prevent potential trade challenges from the new U.S. administration.

Despite these efforts, critics alleged that the outreach campaign was fruitless, as Washington continued to tighten its grip on the Korean economy by imposing new tariffs and using other economic tools to draw more investments from Korean companies into the U.S.

During a press conference Tuesday marking his fourth year as KCCI chairman, Chey said the delegation received favorable feedback from the U.S., but at the same time noted that trade issues stemming from U.S. tariffs are among the key factors keeping the Korean economy "frozen, even though spring has arrived."

"Political and economic scholars in the U.S. say the competition (between the U.S. and China) toward the economic hegemony will last for over 30 years, and subsequent volatilities will come in the current trade order," Chey said. "The biggest challenge for Korea is whether we will keep waiting for unchanging geopolitical issues to somehow change — or whether we will change our own (economic) model instead."

He said Korea's conventional economic model of exporting domestically manufactured goods is reaching the end of its lifespan due to pressures from the shifting global trade order and the country's declining manufacturing competitiveness.

"Manufacturing still remains a crucial pillar of the Korean economy. However, the conventional idea of producing everything domestically and exporting it needs to be reconsidered, because it's no longer to our advantage," Chey said.

To bring changes to Korea's economic model, Chey stressed that the country's manufacturing competitiveness should be improved through artificial intelligence.

"Once that capability is secured, the location of production — whether at home or abroad — becomes far less important," he said.

Chey added that making foreign investments can also become a tool for a new economic model. He noted that the Korean industry expects its chips and automobiles to "sell well" in the overseas market, but has "no insurance against adverse situations." In this context, he said foreign investments could be a viable strategy to generate favorable economic outcomes, regardless of trade deficits.

Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI), delivers his opening remarks during the Korea-U.S. Business Night Gala Dinner in the Great Hall of the Thomas Jefferson Building in Washington, Feb. 19. Courtesy of KCCI

Chey added that the country should find a "partner" to lower its social and infrastructure costs, therefore overcoming the shortcomings of being a "go-it-alone economy."

"In a country where its population remains at 50 million, we manufacture everything by ourselves, thus slowing our growth," he said. "By cutting social costs, we can have a greater likelihood of securing a fresh growth driver, but we cannot do it alone. When you feel [it is] difficult managing your household alone, people naturally start talking about sharing things with the neighbors. We need to start building systems that enable collaboration."

The chairman highlighted Japan as a potential partner for Korea, emphasizing that cooperation between the two countries could help reduce costs in health care, welfare, education and other social and infrastructure sectors.

Chey has been advocating similar ideas in recent months. During a TV interview in January, he discussed the benefits of economic partnerships with Japan amid ongoing geopolitical upheaval. Last month, at a forum in the U.S., he also emphasized the importance of trilateral cooperation between Seoul, Washington and Tokyo.

When asked about the challenges businesses face in engaging with the U.S. amid limited support from the Korean government due to President Yoon Suk Yeol's Dec. 3 martial law declaration and his pending impeachment trial, Chey said he assured U.S. officials of Korea's intention and ability to remain "a steadfast partner" to the U.S.

"In this time of political instability, there may be a shift in how the U.S. perceives Korea, and the credibility of our responses to the questions on the country's future may be questioned," he said. "What matters now is to quickly restore order and show that our country has stable political leadership and is functioning as it should."

KCCI Chairman Chey Tae-won, front row right, walks with Pohang Mayor Lee Kang-deok, front row left, during his visit to Yeongilman Port in Pohang, North Gyeongsang Province, March 18. Courtesy of Pohang Mayor's Office

Chey also expressed his confidence in the preparations for the upcoming 2025 Asia-Pacific Economic Cooperation (APEC) CEO Summit. Chey is the chair of the event slated for Oct. 28 to 31 in Gyeongju, North Gyeongsang Province.

He said the KCCI expects more than 1,700 CEOs to attend the summit, with around 20,000 people expected to visit Gyeongju for the event. He emphasized the need for thorough preparations in accommodation and other logistical support to ensure the event runs smoothly.

If the number of visitors surpasses KCCI's estimate, Chey said he is considering setting up a cruise vessel in the nearby port city of Pohang to accommodate the overflow.