SK Group Chairman Chey Tae-won has stated that the current costs associated with artificial intelligence (AI) are excessively high, calling for collaborative efforts to find technological breakthroughs and reduce these expenses.

During a program appearance on the 13th, Chey discussed the current semiconductor market, noting that persistently high prices and insufficient supply are placing a heavy burden on the industry. He explained that expanding production capacity involves fixed lead times, meaning this issue cannot be fully resolved in the short term.

In response to this situation, Chey outlined the group's strategy. As part of one of the South Korean government's three national mega-projects, SK plans to construct a large-scale AI data center complex with a total capacity of 15 gigawatts in phases.

Chey emphasized that the focus will be on building new AI data centers capable of generating token computing power with lower operational costs and higher efficiency, adding that the company is currently in discussions with all relevant partners on this matter.

He further commented that when the group initially formulated its investment plan, the scale of business expansion was not anticipated to reach its current level. The explosive growth of the AI industry has made this ambitious plan a reality. He noted that the AI sector requires massive investment and must be supported by data centers of a certain minimum scale.

When asked about the most concerning risk factors over the next five years—the period in which the group aims to double its memory chip production capacity—Chey identified geopolitical risks and funding issues. He stated that sudden geopolitical events can easily drive up energy prices, and if the AI industry faces various unexpected shocks during its development, even short-term impacts could cause the sector to lose its growth momentum.

Regarding funding, he candidly remarked that the AI field requires enormous and continuous capital investment. If the supply of funds cannot keep pace, the current strong momentum of industry development will wane.

Chey explained that the root cause of these pressures is the current immaturity of AI technology. He estimated that in about five years, AI technology will mature and stabilize significantly, akin to a child growing up, with greatly enhanced reliability. At that point, it is expected to significantly boost overall societal productivity and initiate a virtuous industrial cycle.

He also called on the South Korean government to introduce corresponding supportive policies.