Kim Yong-beom, the Chief of the Presidential Policy Office, stated on July 5 that "AI (artificial intelligence) is not just a technological revolution but a production revolution, and the national power in the AI era will be determined by the ability to organize production systems rather than technological prowess."
In a post on Facebook, Kim explained, "If the internet represented an information revolution, AI signifies a production revolution, and the competition in AI is shifting from algorithmic competition to competition in production capacity."
He noted that while platform-owning companies were the winners in the internet era, the victors in the AI era are likely to be nations that possess robust production systems. "In this age of production revolution, what is scarce is not technology but production capacity, and this competition extends beyond companies to nations," he added.
Kim elaborated that the role of the state has evolved from being a market regulator to becoming a production platform that builds power grids, develops industrial sites, and organizes supply chains.
He outlined three key roles for the state in this context: 1) a nation that reconnects the fruits of production to further production, 2) a nation that builds production infrastructure, and 3) a nation that reproduces production capacity.
"A nation cannot be completed by production alone. While AI enhances productivity, the market does not automatically distribute its benefits," he emphasized, adding that welfare is not a system opposing production. He described welfare as an investment that connects the surplus profits generated by the production revolution to the production capacity and social trust of future generations. "Production is a prerequisite for distribution, and good distribution enables even greater production. The state is the entity that designs this virtuous cycle," he stated.
Furthermore, Kim asserted that industrial policy in the era of production revolution is about organizing the entire nation as a unified production platform rather than merely managing the market.
He pointed out that data centers cannot exist without power, semiconductors cannot be produced without water, and physical AI cannot operate in reality without manufacturing, logistics, and urban infrastructure. "While companies can create AI, it is the responsibility of the state to build power grids, develop industrial sites, and organize supply chains," he explained.
Kim concluded by stating that the AI production revolution will position the nation with the most advanced production system at the center of the next era, emphasizing that South Korea stands at a historical turning point. "In the AI era, national power will be determined not by technological capability but by the ability to organize production systems," he stressed.
* This article has been translated by AI.
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