FKI Suggests Making Joint Efforts on the Free Flow of Data in Asia, Low Birth Rates, and Aging Populations to 11 Other Asian Business Organizations
• FKI participates in the 13th Asian Business Summit held in Tokyo to represent Korean business
• “Allow free flow of data within Asia to keep up with the AI development” – FKI Chairman Jin Roy Ryu
• FKI’s suggestions (free flow of data, strengthen CPTPP and RCEP) reflected in the joint statement
The Federation of Korean Industries (FKI) participated in the 13th Asian Business Summit (ABS), a gathering of business leaders from across Asia, to represent the Korean business community. At the summit, FKI proposed cooperation measures for the sustainable development and common prosperity of Asia, including ensuring the free flow of data within Asia, addressing low birth rates and aging populations in unison, and expanding the membership of the CPTPP.
FKI participates in 13th Asian Business Summit in Tokyo on behalf of Korean business
At the 13th Asian Business Summit in Tokyo, Japan on July 5 (Friday), FKI Chairman Jin Roy Ryu, Samyang Group Chairman and FKI Vice Chairman Yoon Kim, and FKI CEO and Vice Chairman Chang-beom Kim participated 1 as representatives of the Korean business community.
1 Participating organizations (13 Asian business organizations): FKI (Korea), Keidanren (Japan), China Council for the Promotion of International Trade (China), China Enterprise Confederation (China), Chinese National Association of Industry and Commerce, Taiwan (Taiwan), Chinese East Asia Economic Association
With the 11 Asian countries and regions represented at the Asian Business Summit playing an important role in the global economy, there are high expectations that strengthened cooperation as a result of the Summit will have a significant ripple effect. The 2023 GDP of the 11 countries and regions was $31.7 trillion, which is twice that of the Eurozone ($15.5 trillion) and equal to USMCA (United States, Canada, and Mexico, $31.3 trillion) 2 .
2 Used IMF World Economic Outlook and World Bank’s 2023 nominal GDP data (GDP outlook data used for Singapore and Myanmar)
FKI Chairman argues that allowing free data flow within Asia will help the Asian AI industry grow
In his presentation during the “Growing Asia” session, FKI Chairman Jin Roy Ryu mentioned that Korea is the only OECD country to have a fertility rate of less than one and faces a population crisis.” Chairman Ryu pointed out that “productivity is key to counteract secular stagnation from declining population, but it remains low in Korea due to lack of innovation and excessive regulation,” while noting that “the problems Korea is facing are, in fact, common across Asia.”
Chairman Ryu suggested that AI will be key in improving Asia’s growth potential, which requires “Allowing free flow of data within Asia to keep up with the AI development.”
“The performance of AI is determined by the amount of data they have …. Asia, home to 60% of the world’s population, has immense potential for the growth in AI industry through enhanced data accessibility,” said Chairman Ryu.
*(Taiwan), Confederation of Indian Industry (India), Singapore Business Federation (Singapore), Joint Standing Committee on Commerce, Industry and Banking (Thailand), Indonesian Chamber of Commerce and Industry (Indonesia), Union of Myanmar Federation of Chambers of Commerce and Industry (Myanmar), The Philippines-Japan Economic Cooperation Committee (The Philippines), Malaysia-Japan Economic Association (Malaysia).
“Amongst regions worldwide with a population of over 5 million, the one with the lowest total fertility rate is Hong Kong, followed by Korea, the next three regions are all in Asia as well 3,” said Chairman Ryu, suggesting that to strengthen Asia’s growth potential, “we as Asia’s business groups must address the imminent risks of declining birthrates and aging populations across Asia.”
3 1st: Hong Kong 2nd: Korea 3rd: Singapore 4th: Taiwan 5th: China, UN World Population Prospects 2022, data as of 2021
Samyang Group Chairman (and FKI Vice Chairman) Yoon Kim presented during the “Economic Development by Promoting new Industry” session and offered cooperation measures to promote Asia’s digital industry.
“I propose we work together to establish common rules and framework for data free flow of data and utilization within Asia, just as outlined by the EU in its European Data Governance Act 4 … the development of digital industry is proportional to the accumulation of data; therefore, data sharing is essential,” said Chairman Kim.
4 Aims to improve data availability by establishing common rules and practices for data across Europe; entered into force November 2021
In the fourth session on “Promoting a Free Trade and Investment”, FKI CEO and Vice Chairman Chang-beom Kim called for quantitative and qualitative improvements to multilateral free trade agreements in Asia, such as adding new members to the CPTPP including Korea and increasing the level of trade liberalization within RCEP.
FKI’s suggestions (free flow of data, strengthen CPTPP and RCEP) reflected in the joint statement
The 13 business organizations that participated in this year’s summit signed a joint statement based on the ideas discussed during the summit.
The FKI’s suggestions to establish common rules and framework for data free flow of data and utilization within Asia” for the development of Asia’s AI industry and promote free trade by upgrading CPTPP and RCEP were included in the 13th Asian Business Summit Joint Statement.
The joint statement also called on Asian economies to work together to build startup-friendly systems to foster innovation ecosystems, and to ease immigration and long-term residency conditions for highly skilled foreign talent.
[Attached] Overview of 13th Asian Business Summit