* Editor's Note: According to the Korea Foundation's 2024 report, there are nearly 225 million Hallyu (Korean Wave) fans worldwide. With the advent of the "Digital Silk Road," transcending time and space, we are entering the era of "Hallyu 4.0." To help readers gain a fresh perspective on Korean culture and K-culture, the Yonhap News K-Culture Team has prepared a series of expert columns.

 

Do Joon-woong's Digital Economic Insight: National Strategy in the Age of AI

 

Contributed by Do Joon-woong, Management Strategy Expert and CEO of KeyTalk AI. (Formerly served as Vice President of McKinsey & CJ Group. Author of Reconstructing Marketing in the AI Era and Marketing New Normal 10 in the Digital Transformation Era.)

 

 

 

This year marks a significant milestone with the establishment of the National Artificial Intelligence Committee. Building on previous discussions, I wish to share seven strategies for survival in the AI era, which I recently discussed with a colleague involved in the country’s AI strategy.

 

◇ The Connection Between Web 3.0 and AI

 

First, understanding the philosophy of "Web 3.0" and its link to AI is essential. Web 2.0, based on principles of “participation, sharing, and openness,” ushered in an era where consumers and citizens actively influenced society through SNS, reviews, and ratings. Digital content spread widely, and open access to information became the norm. Open APIs like those from Google empowered users, breaking down some monopolistic power structures.

 

Web 3.0 is grounded in decentralization, and through blockchain, transparency in finance has improved, and AI has raised the capabilities of the general public. As AI-enabled content creation becomes accessible, people can now produce hundreds of songs or publish multiple books, bringing “popular art” into reality.

 

In the AI era, innovations like NFTs are progressing beyond mere speculative assets to become “RWA” (Real World Assets) with digital and practical value. This transition enables personal creations or assets to be traded globally and elevates these creations to commercially viable standards. This represents a significant shift in the IP landscape, with wide-reaching implications for individual creative ownership, corporate business models, and even national economic structures. 

 

The integration of blockchain and AI fosters a new era that distributes power and asset control among users, creating an ecosystem where everyone is an active participant. This transformation demands in-depth exploration into how digital assets integrate with real-world assets and how this affects daily life. The genuine convergence of AI and blockchain will enable these shifts, creating a journey of challenges and opportunities that society must collectively navigate.

 

◇ New Red Oceans and 'BPR'

 

The first dot-com “red ocean” centered on traditional industries, where internet and IT advancements increased business efficiency. Popular at the time, “Business Process Reengineering” (BPR) advocated redesigning business processes to incorporate new technology. 

 

Last February, I met with Kim Beom-su, chairman of Kakao, one of our firm’s major shareholders. During the conversation, I pointed out that "Kakao has become a prime example of Korea’s red ocean," attributing this to factors like the operational mode where essential workforce and governance have become rigid and outdated. 

 

In the AI-led Fifth Industrial Revolution, digital industries and platform services are the new red oceans, with growth often prioritizing expansion over efficiency. Now, excessive governance and workforce in these areas are being downsized. Educational programs, corporations, and government agencies must strategically reassign their digital and IT personnel to reflect the era’s needs, necessitating widespread “restructuring” of jobs and departments established in the post-dot-com era. 

 

CEOs who believe developers and technical departments alone should handle AI advancements need a reality check. The responsibility to study AI and design strategies that enhance consumer lives lies with CEOs who understand their audience. The same is true in politics: using these new technologies demands a broader perspective beyond the technical.

 

◇ The Nation as a Change Management Leader

 

During the dot-com era, "change management," alongside BPR, was widely discussed as a framework for guiding people through the psychological process of adopting innovation (from confusion, denial, and anger, through attempts at compromise, to depression, and finally acceptance).  

 

When faced with change, it's natural for people to respond initially with denial or attempts to cling to familiar ways. This has been the case across technological shifts, as many leaders once asked, "Who would buy something online, or expect any revenue from it?” Those who witnessed the fading of such resistance during the dot-com and mobile revolutions must now share this wisdom with younger generations to help them navigate new disruptions confidently. 

 

As AI transformation reshapes sectors worldwide, the importance of change management is becoming increasingly evident. Here, experienced professionals should take the lead in guiding their juniors, offering stability and emphasizing the positive aspects of adaptation. Encouraging examples, such as, “It took time for banks to transition from handling cash manually to using computers for online transactions, but look how much more convenient our lives became as a result,” can make a big difference. 

 

In this context, the nation itself should act as the primary change manager, spearheading AI transformation (AI Transformation) to foster stability across industries and facilitate society's adaptation. The government's role is more than just overseeing technology implementation; it’s about actively engaging with citizens' lifestyles and economic activities to ensure smooth transitions. This approach requires strategic foresight and comprehensive planning, supported by various policy tools to drive sustainable progress across all levels of society.

 

 

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