Kim Yong-beom, Chief of Staff for Policy at the Presidential Office, stated that artificial intelligence (AI) is not merely a technological revolution but a "production revolution" that redefines the very nature of the state. He declared, "The state is no longer a market regulator, but a production platform that builds power grids, develops industrial sites, and organizes supply chains."

In a social media post today (July 5), Kim wrote, "When the mode of production changes, it does not end with a single company changing. Industries shift, the flow of capital and labor changes, and ultimately, the state is redesigned upon a new mode of production."

He emphasized, "If the internet was a revolution of information, AI is a revolution of production. The AI race is moving beyond a competition of algorithms to a competition of production capacity," adding, "National power in the AI era is determined not by technological prowess, but by the ability to organize production systems."

Kim noted, "If the winners of the internet era were companies that owned platforms, the winners of the AI era are likely to be nations that possess production systems. In the era of a production revolution, what is scarce is not technology but production capacity, and that competition extends beyond companies to nations."

Kim stated, "Industrial policy in the era of a production revolution is not about operating the market on its behalf, but about organizing the entire nation as a single production platform."

He explained, "Data centers cannot exist without electricity, semiconductors cannot be produced without water, and physical AI cannot function in reality without manufacturing, logistics, and urban infrastructure. Companies can create AI, but it is the state's job to build power grids, develop industrial sites, and organize supply chains."

He further asserted, "The AI production revolution will make the nation that organizes the most excellent production system the center of the next era, and South Korea is currently standing at that historical turning point. National power in the AI era is determined by the ability to organize production systems, not by technology alone."

Regarding the role of the state in this era, Kim proposed three pillars: "a state that connects the fruits of production back into production," "a state that builds production infrastructure," and "a state that reproduces production capacity."

He added, "A state is not completed by production alone. AI increases productivity, but the market does not automatically distribute those fruits. Therefore, welfare is not a system that stands in opposition to production."

In particular, he emphasized, "Welfare is an investment that connects the excess profits generated by the production revolution to the production capacity and social trust of the next generation. Production is the prerequisite for distribution, and good distribution enables even greater production. The state is the entity that designs this virtuous cycle."

(Photo: Yonhap News)