South Korea’s five major business groups urged the incoming government to make strengthening the country’s artificial intelligence (AI) capabilities its top priority for future growth.

The call was made in a policy proposal jointly released on Sunday by the Korea Chamber of Commerce and Industry (KCCI), Korea Enterprises Federation (KEF), Federation of Korean Industries (FKI), Korea International Trade Association (KITA), and Federation of Middle Market Enterprises of Korea (FOMEK).

The proposal identified the next three to four years as a golden window for Korea to emerge as an AI powerhouse, and emphasizes the need to create a virtuous cycle linking the three key input factors - energy, data, and talent - with the three core AI value chains: infrastructure, models, and industrial AI transformation.

To achieve this, it called for a comprehensive “mega regulatory sandbox” that includes bold incentives, deregulation, and infrastructure support.

The proposal outlines 14 key agendas and 100 policy initiatives across four major areas to revitalize Korea’s stagnant economy, including identifying growth drivers, fostering new industries, expanding economic territory, and cultivating growth foundations.

It also highlighted the importance of nurturing emerging industries such as aerospace, robotics, biotechnology, and eco-friendly shipbuilding, alongside AI, while calling for pump-priming investments from the government as well as private-sector-led industrial activation strategies.

It also called for tax support to foster Korea’s robotics industry and strengthening talent competitiveness to secure advanced technologies.

“With our economic growth momentum slowing, it is essential that we explore and attempt new avenues for growth such as AI, aerospace, and robotics - sectors we have not fully tapped into before,” said Kang Seok-gu, head of KCCI‘s research division. “The next government must preemptively ease regulations and present broad incentives to develop high-value future industries.”

The five business organizations noted that “the Korean economy, which has grown through crises such as the Asian financial crisis, the global financial meltdown, and the Covid-19 pandemic, now faces the powerful waves of low growth, an aging population, rising protectionism, and an AI-driven technological revolution.”

“The upcoming presidential election must be a turning point to reignite growth in the Korean economy,” they added.

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