South Korea faces a pivotal moment as it maneuvers through intensifying competition between the US and China, but the evolving landscape offers distinct opportunities for the economy, global investors said during an event hosted by the Milken Institute.
The California-based economic think tank held its inaugural Global Dinner Dialogue, titled “South Korea at the Crossroads,” in Seoul on Thursday. The event brought together senior executives and regional leaders to discuss Korea’s economic outlook, investment landscape and emerging opportunities for collaboration between global and Korean investors and business leaders.
Yang Tae-won, executive vice president of Korea Investment Holdings, highlighted Korea’s position within shifting global dynamics, particularly in the shipbuilding and defense sectors.
“The US has a strategic imperative to diversify shipbuilding capabilities away from Chinese dominance. By transferring technology and collaborating in shipbuilding projects, Korea can solidify its position as a meaningful player in the global maritime industry,” he said.
Yang also emphasized Korea’s leadership in LNG vessels, noting that the country’s advanced low-carbon fuel engines provide a competitive edge in the global energy transition.
Timothy Reese, CEO and CIO of the Pennsylvania Municipality Retirement System, addressed US President Donald Trump’s recent announcement of 25 percent tariffs on all imported vehicles starting next month — a move that will directly impact Korean automakers such as Hyundai Motor Group, Kia and GM Korea. He urged companies to use this as an opportunity to reassess and adapt their long-term strategies.
“This is going to be an opportunity for businesses to decide how they want to allocate their capital, aligning it with long-term investment decisions. Does that include building more plants in the US? Does that mean new, different alliances to make up any shortfalls? This is the opportunity now,” he said.
JP Lee, CEO of SoftBank Ventures Asia, pointed to Korea’s strong adoption of artificial intelligence as a key driver of new business opportunities.
“When OpenAI representatives visited Korea a few months ago, they noted that Korea is likely among the top three countries in terms of usage revenue and the number of developers utilizing the OpenAI API to create new products,” he said.
Lee also emphasized the presence of hidden talent in Korea, particularly in AI innovation. He cited a Korean startup developing vanadium-ion technology to build non-flammable batteries — an advancement with significant implications for AI data centers and infrastructure.
“Most lithium-ion batteries today are flammable, and it costs a lot to prevent fires. That part is very important in AI data centers and infrastructure,” he said.
Lee added that such innovations often surprise global investors, especially those in AI cloud computing and data centers looking for cutting-edge hardware technology.
“When they see such technology from Korea, they're surprised and ask, ‘Where did you find a team like this?’” he said.
hnpark@heraldcorp.com
