Korea Embracing the AI Era Beyond Regulatory Hurdles On April 21, the American Chamber of Commerce in Korea (AmCham) successfully hosted the '2026 8th Domestic Business Environment Seminar' at the Conrad Seoul Hotel in Yeouido, Seoul. The seminar was held as a special 'Freedom 250' session, commemorating the 250th anniversary of the founding of the United States. Under the theme 'Transition to an AI-Powered Economy,' in-depth discussions took place on Korea's economic and industrial strategies. Specifically, focusing on the topic 'Korea's Next-Generation Growth Engine: Transition to an AI-Powered Economy,' a large number of Korean and U.S. government officials, global corporations, and policy experts attended to exchange profound insights. During the event, James Kim, Chairman and CEO of AmCham, emphasized in his keynote speech that "Korea is at a critical juncture of economic transformation, and artificial intelligence (AI) and advanced industries will be key drivers of future growth." He particularly stressed the necessity of regulatory reform, stating, "Aligning regulations with global standards and enhancing policy predictability are crucial for fostering a more competitive investment environment." His remarks underscored the importance of removing regulatory obstacles hindering the development of Korea's AI industry, suggesting that a predictable regulatory environment is essential for the Korean economy to fully realize its potential. The seminar featured active discussions on the direction of Korea's regulatory reform and strategies for building an AI-based industrial ecosystem. Key government officials from Korea and the U.S., global corporations, and policy experts participated, deeply exploring the possibilities for economic and industrial cooperation between the two nations. Attorney Cho Yoon-sun of Kim & Chang Law Firm warned, "Introducing AI is like navigating an ocean full of reefs (risks). We can only avoid being shipwrecked by establishing comprehensive governance, where an experienced captain (leader) steers a safe ship (technological security) with an accurate map (risks)." This vivid analogy conveyed the importance of establishing the necessary legal and technological governance environment for the successful adoption and operation of AI technology. It delivered the message that beyond simply adopting technology, an integrated approach is needed that accurately identifies risks, ensures technological safety, and possesses leadership to oversee the entire process. In conjunction with this, Son Hye-young, Head of the Innovation Growth City Division at the Incheon Free Economic Zone Authority (IFEZA), presented a specific regional case. She unveiled a vision to "develop Incheon into a world-class AI city innovation platform by integrating regulatory innovation, global open innovation, and demonstration infrastructure through the IFEZ AI City model." This is not merely a slogan but a concrete strategy combining three pillars: regulatory innovation, international cooperation, and demonstration-based infrastructure, demonstrating Korea's commitment to building a platform where AI technology can be tested and commercialized in real urban environments. A blueprint for the Incheon Free Economic Zone to leap forward as a global AI hub was presented. During the corporate session of the seminar, major global companies such as Corning Precision Materials, onsemi, and Visa voiced the practical difficulties they face when entering the Korean market. These companies shared realistic opinions on Korea's regulatory and non-tariff barriers and challenges in improving the investment environment, conveying the voices from the business front lines. They specifically pointed out that non-tariff barriers and legal uncertainties are making it difficult for foreign companies to enter the Korean market, urging the need for policy improvements. This is noteworthy because regulations not only affect domestic companies but also significantly influence the likelihood of foreign investors choosing Korea as an economic partner. It revealed the reality that while global companies acknowledge the potential of the Korean market, they hesitate to invest due to the unpredictability of the regulatory environment and non-tariff barriers. Prerequisites for an AI Economy Presented by Domestic and International Experts Korea already demonstrates high potential for AI technology. The government nationally supports AI technology development and is accelerating the creation of an AI ecosystem through its 'Digital New Deal' policy. The technological prowess and infrastructure accumulated in advanced technology sectors such as semiconductors, displays, and telecommunications form a solid foundation for AI industry development. However, despite these efforts and technological capabilities, several obstacles hinder the commercialization of AI technology in Korea. In particular, an opaque regulatory framework and the resulting lack of pol
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