[Editorial] In the Age of AI, Strong Fundamentals and Deregulation Are the Answer

Chey Tae-won, Chairman of SK Group, emphasized in his New Year's address, "Let us rise to the challenge of Sailing Through the Winds and Waves as we navigate the coming tides." The spirit of Sailing Through the Winds and Waves represents bold challenge and innovation. Just as one rides the strong winds and cuts through rough waves, it means seizing the changes of the times as opportunities and forging ahead with courage. This year, the global business environment is expected to be more uncertain than ever. The United States of America (USA) is facing a palpable tariff crisis, while a new era of industrial upheaval driven by Artificial Intelligence (AI) is unfolding before us. Such winds of change bring both crisis and opportunity. To ride these powerful winds and navigate the turbulent global market, certain prerequisites are essential.
First, robust fundamentals are crucial. In his address, Chairman Chey stated, "Solid fundamentals are vital for a successful AI transition." This means that not everyone can ride the wave of success simply because a new window of opportunity opens. Only companies that have built technological capabilities and business acumen over time can truly take flight in the emerging AI industry. Chasing the wind without solid skills means missing out on new opportunities, even when they arise. This is why the attitude of Beop Go Chang Sin (the spirit of creating the new, based on the old), as mentioned by Chairman Chey, is essential—wisdom to create innovation grounded in accumulated assets and values. A balanced approach that remains faithful to the basics while not neglecting innovation is required. Looking back at the Information Technology (IT) bubble era, most companies that merely followed trends without strong fundamentals eventually disappeared. Without a solid foundation, no wave of innovation can last.
Second, bold regulatory reform by the government is needed. No matter how much companies embrace the spirit of Sailing Through the Winds and Waves, outdated regulations will only hold them back. It is like shackling someone who is trying to swim across a rough sea. To secure new markets, companies must be given the wings of autonomy. The government must implement decisive deregulation and institutional improvements, especially in new industries such as AI.
Recently, industrial competition has intensified beyond the corporate level, evolving into a contest between nations. Major countries, including the USA and China, are offering unprecedented support and deregulation to foster the AI industry. However, if we remain trapped in outdated regulatory frameworks, we will inevitably lose our competitive edge. It is the government's role to remove obstacles that hinder companies' creative challenges and to cultivate an environment where new business models can flourish.
Of course, this does not mean that all regulations should be abolished. Regulations rooted in administrative convenience are harmful. Depending on how they are utilized, regulations can also be beneficial. For example, rational regulatory systems are urgently needed in areas such as data utilization, personal information protection, and new technology validation. Smart regulations that can achieve both safety and innovation are essential. Only proactive and aggressive regulatory reform will prevent us from falling behind in global competition. We must remember that the purpose of regulation is not to stifle innovation, but to guide it in the right direction.