EU: "Power determines the future," far-right, Choi Tae-won: "Korea-Japan economic integration, AI sovereignty"
The European Union's Industrial Europe Commission President called for "industrial sovereignty unity" amid the geopolitical crisis caused by the "power determines the future" far-right, while SK Group Chairman Choi Tae-won called for "transitioning from Korea-Japan economic integration to AI sovereignty."
In a contribution to EuRactiv, Judith Curtain-Darling, Secretary General of the Industri All Europe Commission, warned on the 7th, "Europe must unite, reshape its own destiny, and rebuild international cooperation based on law, justice, and solidarity." She added, "If Europe hesitates, we risk sliding into a world where power, not law, determines the future." The European Union's "Syndex Report" from November of last year pointed to the failure of a stock market-dependent economy, stating that "in their profit maximization strategies, companies continue to prioritize shareholder payments over reinvestment in industrial capabilities." It also called for "strategic autonomy and strategic cooperation driven by industrial sovereignty are now crucial, and a return to normal management."
Chairman Choi stated, "Viewing Korea and Japan as a single economic community enables diverse synergies." He defined AI as "not simply technological advancement, but a transition on the scale of the Stone Age to the Iron Age." He declared future decisions to support the establishment of world-class AI infrastructure and the creation of an AI startup ecosystem to this end a "chaebol monopoly."
Conversely, SK On, which Chairman Choi invested over 20 trillion won in the US, taking advantage of the Biden administration's battery subsidies, suffered an annual deficit of 700 billion won last year due to the Trump administration's abolition of electric vehicle subsidies and European countries' retreat from environmentally friendly policies. This year, under the Lee Jae-myung administration, the company rapidly transitioned to a semiconductor-centric system. LG Ensol, a US battery subsidy spin-off of LG Group, which has been leading stock market support since the Moon Jae-in administration, saw its 28 trillion won supply contract with POSCO FutureM and others canceled late last year.
SK On, a key intermediary for Chairman Choi's family's US investments, terminated its initially led joint venture with Ford, and SKC withdrew its plans to enter the cathode materials business. On the 18th, Chairman Choi stated on KBS, "If growth stalls, distributed resources will decrease, social conflict will increase, and the sustainability of democracy could be threatened." He added, "If regulations and risks outweigh the benefits of growth, companies will choose to maintain the status quo." As an alternative, he called for a shift in national identity, citing Taiwan, which has fostered TSMC by focusing on fostering specific industries rather than regulating them based on company size, and continuing strategic investments through sovereign wealth funds. President Lee Jae-myung announced his economic and industrial strategy on the 6th, declaring, "K-Semiconductor Leap Forward to Become a Global 2nd Power" and "Defense Industry Becomes a Global 4th Power." He institutionalized policies to foster national strategic industries such as the defense and bio industries, promote a hyper-innovative economy driven by the AI and Green (GX) Great Transformation, and create new industries through R&D investments in 15 leading projects in the AI and eco-friendly technology sector.
Chairman Choi stated on KBS, "Whether it's AI-powered humanoid robots, batteries, or automobile technology, the speed at which we create new products is faster than ours. China's new AI and robot model cycle is six months, while Korea's is at least a year. To compete with China, we need to create an ecosystem with a much faster development speed." In his contribution, the European Industry Commissioner stated, “We need a plan to rebuild Europe’s industrial sovereignty for people and planet.”
He added, “Europe is not doomed to decline. But naiveté means dependence, and dependence means deindustrialization. The choice is clear: invest now in clean industrial value chains and quality jobs, or succumb to foreign domination? The time to act is now.”
The Syndex Report, presented to the Commission at its meeting in Brussels from November 26 to 27 last year, stated that “of the 18 key industrial sectors, only the aerospace and defense industry remains globally competitive.” He added, “Without urgent investment and a decisive strategic shift, Europe risks accelerating deindustrialization, deepening dependence, and the loss of millions of good industrial jobs.”
The Syndex Report stated that "Europe excels in basic research but lags behind in applied research, and RDI spending has not kept pace with technological advancements." It added that "mandatory transition plans with incentives for industry are key to addressing labor and skills shortages."
The report stated that "European unions across Europe call for a bold industrial strategy based on investment, strong labor rights, and resilient value chains." Key demands include "a substantial investment agenda through a multiannual financial framework sized for industry demand, revised fiscal rules, and strong corporate commitments," "social and local content conditionality for all public support to ensure the benefits for European workers and on-site investment," "mandatory transition plans to coordinate industrial and labor market plans for a just transition," "actions against global overcapacity and unfair trade practices to secure investment in Europe's transforming industries," and "a more ambitious agenda for price regulation to ensure affordable, low-carbon energy for the energy grid and European industry." The European Industry Organization survey examined aerospace, automotive, automotive subcontractors, basic metals, cement, chemicals, defense, glass, oil and glass, refining, petrochemicals, pharmaceuticals, pulp and paper, semiconductors, solar energy, steel, telecommunications, and wind energy.
The report stated that, "Of the 18 key industrial sectors, only aerospace and defense remain globally competitive." "Investment has stagnated, restructuring is sweeping the value chain, and competitors are rapidly gaining ground through strategic support and planning."
IndustriAll Europe Secretary General Judith Curtain-Darling wrote, "Europe must unite, reshape its own destiny, and rebuild international cooperation based on law, justice, and solidarity." She added, "First, moral clarity and strategic composure are needed. The dangers are not only external, but also political and ideological. The far right is growing across Europe, promoting an agenda that promotes fear and disinformation and undermines democratic norms and workers' rights." He continued, "An emerging coalition of autocrats is undermining democratic institutions, weaponizing economic dependence, and normalizing authoritarian rule, all while challenging the very principles of multilateralism and human rights."
He added, "This descent into dictatorship is further perpetuated by Big Tech, where global tech billionaires are allied with powerful leaders to funnel money and data to the wealthiest, prop up undemocratic structures, and concentrate power in the hands of a narrow elite." He continued, "This trend is not inevitable," and "If we act together, maintain internationalism and solidarity, and focus on improving the lives of the majority rather than repeating the far-right agenda, we can reclaim the victory of progressive forces in Europe."
On the other hand, he stated, "If Europe hesitates, we risk sliding into a world where power, not law, determines the future." He announced SURE 2.0 as an "employment protection mechanism" to prevent irreversible job losses from industrial restructuring. This includes "a serious investment agenda through a multiannual financial framework aligned with industrial demand, fiscal rule reform to stimulate public investment, and a firm commitment by companies to reinvest rather than maximize shareholder payouts," and "conditionalizing all public support with social and local content so that taxpayer money creates quality jobs in European workplaces with strong collective bargaining."
He described the EU's industrial strategy as "not a technocratic wish list, but the material foundation of Europe's ability to act geopolitically," adding, "It will ensure that factories are operational, power grids are modernized, and research is transformed into applied innovation." When Europe transforms, when young people have access to quality education and a bright future, when jobs are secure and well-paid, when it is less vulnerable to bullying, easier to collaborate with, and when leadership is better, then Europe will contribute to global stability and become a credible, rules-based actor, supported by a resilient economy, collective defense, and a viable social model. He stated, “Overcoming fear is the most effective antidote to populism and far-right extremism, as it fosters the confidence to overcome fear in achieving social justice.”
Regarding the new rallying cry of EU industry organizations this year, he stated, “Organize to demand investments that create good industrial jobs in workplaces and communities.”
“Organize to make social conditionality the rule for all public spending or support, so that collective bargaining and decent work become the foundation of structural transformation.”
“Organize to protect the space for diplomacy and international law.”
“Peace is a prerequisite for prosperity and workers’ rights, so we must organize to defend fair trade and strategic autonomy, ensuring that Europe remains open but not naive.”
“Organize to ‘arm’ Europe with the tools for democratic regeneration.”
Samsung and SK, which have taken advantage of the Trump administration’s strategy to become an AI powerhouse, are pursuing a foundry plant and an HBM packaging plant in the United States, respectively. Samsung Electronics has invested $17 billion in its Taylor Foundry plant in the United States. The government expanded the investment to $37 billion, investing 360 trillion won in the Yongin Semiconductor Cluster, and resuming construction of new plants, including P4 and P5 in Pyeongtaek.
SK Hynix invested $3.87 billion in a packaging plant in Indiana, USA, and invested 600 trillion won in four plants in the Yongin Cluster. SK Telecom and AWS are pursuing a massive AI data center in the Mipo National Industrial Complex in Ulsan.
The Lee Jae-myung administration also announced a 150 trillion won fund to build "AI Highway" infrastructure based on this project. While citing nationwide real estate price increases and the Consumer Price Index (CPI) minus "ownership costs," the government presented the project as a "rapid economic recovery from recession."