Forging true partnerships with 2nd Trump administration

By Choi Sung-jai

The shift from analog to digital technology represents a significant transformation, akin to the creation of a new playing field. When this field changes, it not only creates new industries but also determines the fates of businesses, causing some to rise while others which failed to adapt to the change fall.

Currently, we are witnessing the reshaping of a field centered around the United States. It is not that the Donald Trump administration has altered the rules of the game. Rather, it is more accurate to say that the administration is responding to changes that were already underway.

One of the drivers of this transformation is artificial intelligence (AI), which acts as a catalyst for disruptive innovation. Throughout its development, AI has experienced fluctuations, but it has consistently found breakthroughs. Once a technology passes a critical threshold, it creates a new landscape.

AI, as it integrates with existing technologies, will reveal new dimensions. For instance, Elon Musk, who leads the U.S. Department of Government Efficiency, has pointed out that AI-equipped unmanned drones could replace fifth-generation fighter jets like the F-35, dramatically reducing the cost of warfare — a scenario that could also occur within industries.

Changes in the industrial landscape are directly linked to the survival of businesses, nations and societies alike. In this evolving context, making friends and establishing shared technological standards with them becomes essential.

On the onset of the second Trump administration, norms and rules of international trade are likely to transition from a free trade order, represented by the World Trade Organization, into a more bloc-oriented trade system where allies unite.

This reorganization is closely related to technological changes. In this new order, countries and companies within a bloc will each take on specific roles, fostering growth within the new framework. A transformation is indeed underway in the trade order.

This holds true at the national level. Korea Chamber of Commerce and Industry Chairman Chey Tae-won recently appeared on a broadcast stating that the international order is transitioning from the rules of wrestling to those of swimming. Chey also highlighted the importance of talent and electricity in the era of AI. His observation is timely and insightful.

As Chey underscored, two factors are essential in the AI industry — talent and electricity. Regarding talent, it is critical to focus on both cultivating new talent and attracting existing talent. Forming a proactive core group that can change the game and strategically respond to changes is crucial.

Another key infrastructure in the AI industry is the power sector. The power consumption of global AI data centers is projected to triple by 2030, increasing from 400 terawatt-hours to 1,065 terawatt-hours, which is equivalent to twice the annual power use of Korea.

This surge underscores the need for technological advancements to enhance both the capacity and quality of power supply in the energy sector. Given our industrial strengths in manufacturing, it is essential to leverage these assets to formulate future strategies, with a focus on bolstering the capabilities of the power industry.

If the Trump administration recognizes that Korea's strategies are compelling, the significance of Korea and its corporate sector will undoubtedly increase.

The second Trump presidency moves beyond abstract notions of good and evil into a period of “friend-shoring,” where only those who provide tangible benefits can become allies. This suggests that while we are facing a crisis, we are also witnessing new opportunities, as we are in a transformative period. The rise of digitization once led to the decline of Japan’s electronics industry, but the advent of the AI era does not necessarily signal the end of hardware manufacturing.

To capitalize on this evolving landscape, Korea must harness its manufacturing prowess in conjunction with AI, strategically positioning itself for a significant leap forward in the new era.

Choi Sung-jai is an attorney and a professor of law at Sejong University. He studied intellectual property & antitrust law. Choi represented the Fair Trade Commission in a 2019 lawsuit filed by U.S. tech giant Qualcomm, which sought to overturn a 1.03 trillion won fine against the company. In the high-profile case, Choi successfully defended the commission, leading to a favorable ruling.