- San Francisco AI Declaration? Driving a change bigger than the Industrial Revolution
- Building an AI supply chain by integrating GPU, HBM, and software companies
- Korea seen as crucial enough to gather CEOs who don't even get along
- Proving the "Three Mega Projects" are not merely for domestic use
- $950 billion scale... Would have been difficult without the government
- South American tour? To secure firm commitments on resource cooperation, including rare earths
- Raising real estate holding tax? Will decide considering equity
- 3 billion won threshold? Listening to public opinion... Announcement coming soon
- Jeonse and monthly rent measures? Plan to rapidly increase supply will be announced soon
- Easing loan regulations? Cannot drink saltwater just because we are thirsty
- However, stance to re-examine loans that stimulate supply
- No land for housing in Seoul? Not completely none... Currently searching for land
- KOSPI volatility? Could be a correction after rising so much
- Single-stock leveraged ETFs: Strengthening previously loose terms and conditions to complement policies

■ Broadcast: SBS Kim Tae-hyun's Political Show (FM 103.5 MHz 7:00 ~ 9:00)
■ Date: July 27, 2026 (Mon)
■ Host: Attorney Kim Tae-hyun
■ Guest: Ha Joon-kyung, Senior Presidential Secretary for Economic Growth

[Kim Tae-hyun]: Last weekend in San Francisco, President Lee Jae-myung met with leaders of global big tech companies and announced the San Francisco AI Declaration. In response, Nvidia CEO Jensen Huang spoke highly of it, saying, "South Korea has entered a golden age of AI." We are joined by Ha Joon-kyung, Senior Presidential Secretary for Economic Growth, to discuss the significance and achievements of the San Francisco AI Declaration. Senior Secretary, hello.

[Ha Joon-kyung]: Hello.

[Kim Tae-hyun]: Senior Secretary, a very important declaration came out this time, didn't it? The San Francisco AI Declaration.

[Ha Joon-kyung]: Yes.

[Kim Tae-hyun]: President Lee Jae-myung visited San Francisco in person to announce this. What is the background behind this?

[Ha Joon-kyung]: San Francisco is actually a city that rose from the ruins of a past earthquake, and now it is leading global technological innovation. You could call it the epicenter of the AI technological revolution currently taking place. There is significant meaning in us going to that center and establishing equal partnerships with the companies leading this change.

[Kim Tae-hyun]: Yes.

[Ha Joon-kyung]: Regarding what AI really is, there are still things we don't fully feel yet. Recently, about 16 Nobel laureates in economics, along with many others, jointly issued a statement titled "We must act now." What they said there is that this is a change bigger than the Industrial Revolution of the past, and that it will happen in a very short period of time—over the next ten years. Leading this change is extremely important. So it signifies that we are in the group leading it, and that we can become a key nation in that supply chain.

[Kim Tae-hyun]: What are the key contents of the San Francisco AI Declaration made this time?

[Ha Joon-kyung]: The core content revolves around the AI supply chain. There are companies that created tools like ChatGPT that we use today, and then there is Nvidia, which makes GPUs that enable them. There are also Korean companies that make HBM, the memory that allows GPUs to function, and various other companies that integrate this into software, machinery, and so on. It means everyone comes together to work jointly. So I see this as potentially a historically very significant moment.

[Kim Tae-hyun]: But while it makes sense for Korean business leaders like Chairman Jay Y. Lee or Chairman Chey Tae-won to go to San Francisco with the President, gathering global big tech CEOs like Sam Altman in one place must not have been easy. How did it come together so well?

[Ha Joon-kyung]: In fact, among these executives, there are some who do not particularly like each other.

[Kim Tae-hyun]: For example?

[Ha Joon-kyung]: Well, I don't need to specify because everyone probably knows, but some of them are direct competitors.

[Kim Tae-hyun]: That makes sense.

[Ha Joon-kyung]: So if President Lee Jae-myung had not gone in person, it would have been nearly impossible for them to gather together.

[Kim Tae-hyun]: Right.

[Ha Joon-kyung]: In fact, these executives really wanted to meet the South Korean President. For instance, the CEO of Microsoft could not attend in person due to a White House meeting that was difficult to cancel. So he asked to join at least via video, and sent a video message on the spot.

[Kim Tae-hyun]: I see.

[Ha Joon-kyung]: So they place great importance on South Korea and believe they need to work together with South Korea.

[Kim Tae-hyun]: Because it is beneficial for them as well?

[Ha Joon-kyung]: That's right. It benefits them and helps them lead this upcoming change.

[Kim Tae-hyun]: Recently and previously, the President often spoke about goals such as becoming one of the top three AI powerhouses, driving an AI Great Transformation, and undertaking the "Three Mega Projects."

[Ha Joon-kyung]: Yes.

[Kim Tae-hyun]: How specifically does this San Francisco AI Declaration connect to those Three Mega Projects mentioned before?

[Ha Joon-kyung]: The scale of the Three Mega Projects is astronomical, reaching over 4,000 trillion won. What it entails is building many new memory fabs, creating AI data centers that generate things like knowledge tokens, and applying physical AI to various factories and industries. It is about building a full-stack ecosystem. We are not doing this work just to use it within South Korea alone.

[Kim Tae-hyun]: Of course.

[Ha Joon-kyung]: This is a massive investment. Global big tech companies need South Korea's memory chips and need to collaborate with Korean companies on how to develop these technologies to navigate the future. So our Three Mega Projects are not merely for domestic use; they serve as a foundation for bringing about global change. Big tech companies recognize this, and this is an effort to drive global transformation together.

[Kim Tae-hyun]: When do you think the public will be able to tangibly feel the impact of what you described?

[Ha Joon-kyung]: It tends to vary from person to person. Some people are already feeling it, as performance bonuses are coming in.

[Kim Tae-hyun]: At those two major companies.

[Ha Joon-kyung]: In a way, it's a bit like oil suddenly gushing out in an oil-producing country. Those who own the land above the oil field feel it immediately, right?

[Kim Tae-hyun]: That's true.

[Ha Joon-kyung]: But people nearby might feel it only lukewarmly for now, and those further away might ask, "Is something happening?" But over time, this will spread throughout the economy. However, if it spreads in the wrong direction, it could cause serious problems. For instance, if this massive amount of money flows straight into real estate, only landowners would benefit.

[Kim Tae-hyun]: Right.

[Ha Joon-kyung]: So rather than that, we are working hard to ensure that it spreads evenly across the entire economy and creates a virtuous cycle. If so, people will likely begin feeling gradual changes starting now, and in a few years, they will realize the world has changed significantly.

[Kim Tae-hyun]: Does that mean you are deeply contemplating how to utilize the massive corporate taxes and excess tax revenue generated by companies like Samsung Electronics or SK Hynix?

[Ha Joon-kyung]: That is definitely part of it. What we call excess tax revenue will help much more than imagined.

[Kim Tae-hyun]: True.

[Ha Joon-kyung]: Ensuring that this revenue is well-utilized to enhance the economy's growth potential is a major task, and we will continue working on that.

[Kim Tae-hyun]: Were there specific outcomes at the San Francisco event regarding investment attraction or tangible achievements?

[Ha Joon-kyung]: There are many. Various contracts were signed there, and commitments were made to pursue semiconductor sector cooperation worth $950 billion, or around 1,375 trillion won. As for individual corporate agreements, you can learn more from media reports. In particular, regarding AI data centers and related facilities, plans are underway for a scale of about 5 gigawatts, which is actually massive. It might be hard to feel the scale just from numbers, but globally it is a tremendous level.

[Kim Tae-hyun]: But opposition parties criticize this, asking why the President is announcing achievements of private companies instead of company chairmen themselves.

[Ha Joon-kyung]: It is true that private companies play a leading role, but this project is far too large for private companies to undertake individually. In any country, such initiatives cannot be accomplished without government involvement. For example, building fabs and data centers of this magnitude requires an immense amount of electricity, water, necessary infrastructure, and workforce training.

[Kim Tae-hyun]: Right.

[Ha Joon-kyung]: Building infrastructure of this scale is comparable to constructing several large cities. It requires national resources, institutional arrangements, and every element to be aligned.

[Kim Tae-hyun]: Yes.

[Ha Joon-kyung]: We have been pushing for this continuously since our government launched last year, which is why we are somewhat ahead. That is why global big tech CEOs are eager to meet our President, feeling they need to stay on good terms with South Korea.

[Kim Tae-hyun]: I see. That is good news for us.

[Ha Joon-kyung]: Yes, it is a good thing for us.

[Kim Tae-hyun]: After successful results during the two-day stay in San Francisco, the President is now traveling to South America. It appears he will tour three South American countries in the order of Brazil, Chile, and Argentina, with Brazil being a state visit.

[Ha Joon-kyung]: Yes.

[Kim Tae-hyun]: Media reports today say discussions will cover building supply chains for critical minerals like rare earths. What specific achievements are you expecting from this South American tour?

[Ha Joon-kyung]: The President will likely announce those details himself.

[Kim Tae-hyun]: Resource diplomacy?

[Ha Joon-kyung]: Yes, but resource cooperation involves many difficult aspects. Rare earths are called rare because they are scarce, and while they exist in large quantities there, many other countries also want to secure them.

[Kim Tae-hyun]: Indeed.

[Ha Joon-kyung]: When dealing with those countries, things often seem close to working out but don't, or seem unlikely but suddenly materialize; there is a lot of uncertainty. In such situations, the President visiting in person to seal the deal can have a major impact. Meeting leaders directly to resolve these complex issues can significantly strengthen our supply chains, economic security, and support our various AI-related projects.

[Kim Tae-hyun]: I heard he is also accompanied by representatives from many beauty companies this time. Is the South American market very large for K-beauty?

[Ha Joon-kyung]: That region has tremendous potential.

[Kim Tae-hyun]: It has a large population as well.

[Ha Joon-kyung]: Yes, a large population.

[Kim Tae-hyun]: Right.

[Ha Joon-kyung]: People there are very favorable toward Korean culture, so promoting K-beauty there creates a high likelihood of significant market growth.

[Kim Tae-hyun]: Understood. While you are here, let me ask about real estate, which is always a hot topic. Last week, there was a major real estate public forum, and the President hinted at strengthening holding taxes. With tax reform proposals expected soon, will holding taxes like the Comprehensive Real Estate Holding Tax or property tax be increased?

[Ha Joon-kyung]: Well, it's hard to sum up simply. Holding taxes have various dimensions. Many argue that areas with heavy infrastructure investment and high maintenance costs should pay higher holding taxes.

[Kim Tae-hyun]: Right.

[Ha Joon-kyung]: There are also theories that high housing prices inflict great pain on young people, so taxes reflecting that social cost should be imposed. On the other hand, some argue that simply living in one's primary residence shouldn't impose an excessive burden, taking a housing welfare perspective.

[Kim Tae-hyun]: Yes.

[Ha Joon-kyung]: So we need to consider all these factors to collect a socially appropriate level of holding tax, referencing international examples as well. However, it should not compromise housing welfare. We plan to take into account housing welfare, social efficiency, and tax equity altogether.

[Kim Tae-hyun]: Ultimately, if holding taxes are levied on high-priced single homes—the so-called "one smart home"—setting the standard for what constitutes a high-priced home seems crucial. A report by Kyunghyang Shinmun today suggested the government might use an officially assessed price of 3 billion won as the threshold for heavy holding taxes. Is that accurate?

[Ha Joon-kyung]: We are preparing various options, so it is difficult to confirm that now. However, another discussion presided over by the Prime Minister takes place today. The President is also receiving continuous feedback, and we are holding internal discussions. So after listening to public opinion, we expect an announcement soon. Our basic principle is to prevent people from suffering due to real estate issues, while simultaneously creating a fair tax system.

[Kim Tae-hyun]: Do you personally have a standard in mind for what defines "one smart home"?

[Ha Joon-kyung]: I have my personal view, but it's difficult to share here.

[Kim Tae-hyun]: That shows there are differing opinions within the government regarding where to set the threshold. On July 26, you appeared on the Blue House YouTube channel and said, "We are directing policy so that people living in their own homes without speculative intent do not face hardship due to these measures," and "We take the suffering of people struggling with Jeonse or monthly rent very seriously and are preparing extensively."

[Ha Joon-kyung]: Yes.

[Kim Tae-hyun]: Yesterday, a Hankyoreh report pointed out that the real estate forum only focused on buying and selling properties, lacking measures for Jeonse and monthly rental housing.

[Ha Joon-kyung]: Rental housing measures are actually being prepared on multiple fronts. Fundamentally, stabilizing rental prices requires expanding supply, so we are preparing measures regarding supply, including ways to increase supply quickly in the short term. An announcement will likely be made soon.

[Kim Tae-hyun]: Yes.

[Ha Joon-kyung]: Additionally, costs in the Jeonse market have risen due to trust issues stemming from Jeonse fraud and similar problems. We are preparing measures for that as well. Furthermore, regarding monthly rent, young people are facing significant difficulty, so measures are being prepared on multiple levels. You will see announcements coming out step by step.

[Kim Tae-hyun]: Another critical factor in real estate is loans. Actual homebuyers, young adults, and newlyweds often express frustration with loan regulations. At the previous real estate forum, a woman mentioned she couldn't pay the remaining balance due to sudden regulation changes, and the President strongly sympathized. Are there any measures or deregulation plans being considered?

[Ha Joon-kyung]: The difficulty with loans is that everyone wants to borrow more. But if everyone is granted larger loans, housing prices rise again, forcing people to take on even bigger loans. We describe this as not drinking saltwater or seawater just because we are thirsty.

[Kim Tae-hyun]: Right.

[Ha Joon-kyung]: Nevertheless, if there are unreasonable aspects or areas that need fixing in loan policies, we should certainly fix them. We have several principles: rather than loans that simply drive up demand, we maintain a stance to re-examine loans that stimulate supply. Also, in cases where promises or institutional guarantees were previously made but suddenly revoked, or where banks suddenly tightened credit due to internal circumstances, targeted pin-point relief may be needed.

[Kim Tae-hyun]: Right.

[Ha Joon-kyung]: We hold these principles, and measures reflecting them will be announced in due course.

[Kim Tae-hyun]: Regarding supply measures, the President mentioned he might take a helicopter ride to look for available land. However, at the real estate forum, he noted that "there is not much residential land available in Seoul," and "reconstruction and redevelopment seem to have little effect in increasing the number of housing units." Combining those two remarks might lead people to interpret that there won't be housing supply in Seoul in the future.

[Ha Joon-kyung]: That is not the case. It is true that land is scarce, but it is not completely nonexistent. Since there are various forms of housing, we are searching for sites that fit those types. You will hear more about this soon.

[Kim Tae-hyun]: Understood. We look forward to it. Senior Secretary, one final question: stock market sidecars have been triggered for 10 consecutive trading days, alternating between sell sidecars and buy sidecars. With such high volatility, investing has become very difficult.

[Ha Joon-kyung]: Yes.

[Kim Tae-hyun]: What is your perspective? Is the government preparing any response measures?

[Ha Joon-kyung]: High volatility is indeed a fact, though it isn't unique to South Korea—U.S. semiconductor companies are also experiencing high volatility. In a way, the market moved upward continuously in one direction for a while, so this can be seen as a period of correction. However, many people are asking if leveraged ETFs are driving this.

[Kim Tae-hyun]: There are such arguments.

[Ha Joon-kyung]: Whether it's due to system mechanics or other factors requires rigorous analysis, but it is true that the public feels psychological impacts. When these products were introduced, terms and conditions were established. We are checking whether any terms were too loose, which is why we recently raised deposit requirements.

[Kim Tae-hyun]: Raised to 30 million won.

[Ha Joon-kyung]: Systems must be continuously refined. If citizens face difficulties, we must keep making improvements.

[Kim Tae-hyun]: You mentioned raising deposit requirements. Do you expect such measures will help control the volatility issue to some degree?

[Ha Joon-kyung]: We understand that trading volumes in that sector have decreased somewhat, though we need to monitor it further. We expect these steps to be effective.

[Kim Tae-hyun]: Understood. We will wrap up here for today. We have been speaking with Ha Joon-kyung, Senior Presidential Secretary for Economic Growth. Thank you.

[Ha Joon-kyung]: Thank you.

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