Energy and AI, Survival Strategies for the Future - President Lee Jae-myung at the G7 Expanded Meeting

Introduction: In an Era of Complex Crises, the Survival Strategy Lies in Integration

The 21st century is not an era of a single crisis, but rather one of a complex crisis. Climate change has normalized unpredictable natural disasters, while the Russia-Ukraine war and the U.S.-China hegemonic competition are destabilizing energy and resource supply chains. At the same time, AI is shaking the foundations of industrial structures, labor markets, and governance systems, resetting the very direction of civilization. In particular, the rapid spread of AI technology is revealing unexpected problems. Data centers and generative AI training consume massive amounts of electricity, and the expansion of electric vehicle adoption is highlighting the limitations of existing power infrastructure. Energy and AI are not separate domains they have become variables that determine each other. Faced with such complex challenges, President Lee Jae-myung presented a vision for system innovation for survival through the 'Energy-Digital Integration Strategy' at the G7 Summit held in Canmore, Alberta, Canada, on June 17, 2025. This strategy aimed beyond simple technological responses, seeking to change the operating principles of the nation and redesign the collaborative structure with the international community.

Chapter 1: Energy Security – Restructuring Infrastructure and Securing Strategic Resources

President Lee Jae-myung emphasized that "energy security and the stabilization of core mineral supply chains are not just economic issues, but the foundation of national survival." He proposed an approach that combines a multi-layered infrastructure strategy with the expansion of resource diplomacy. 1. Advancement of the Renewable Energy Ecosystem Korea currently relies on renewable energy for about 7% of its total electricity, which is a low level compared to major advanced countries. To increase this to over 35% by 2040, specific plans are being implemented as follows: - Securing acceptance of solar and wind facilities through relaxation of mountain regulations and introduction of resident profit-sharing systems. - Advancement of the hydrogen industry: increased investment in blue and green hydrogen production and storage technologies. - Designing power plants tailored to climate zones: concentrating offshore wind in the southwestern coast, and solar power in inland highlands. 2. Establishment of an 'Energy Highway' To resolve regional imbalances in power supply and demand, the national power grid based on high-voltage direct current (HVDC) will be redesigned. This system minimizes energy loss and is advantageous for long-distance transmission, particularly supplying power produced in southern areas steadily to the metropolitan area. - Large-scale renewable energy clusters in Honam and Yeongnam regions → connection to the metropolitan smart grid. - Introduction of an AI-based demand forecasting and load adjustment system: establishing an automatic response system to rapidly changing electricity demands. - Microgrid + ESS: residential areas below the military unit level will secure a decentralized energy structure through self-sufficient power grids. 3. Cybersecurity and Digital Resilience The introduction of AI-based control systems also increases the risk of cyberattacks. To address this, Korea is pursuing the following strategies: - Establishment of an energy-ICT convergence security center: regular cyber training and penetration tests for national infrastructure. - Implementation of AI-based anomaly detection systems: expanding real-time prediction and automatic blocking technologies to the private and public sectors. - Signing of international cybersecurity agreements: promoting the establishment of a joint response system with G7 and EU. 4. Diversification of Core Mineral Diplomacy As the chair country of MSP (Mineral Security Partnership), Korea is conducting strategic resource diplomacy to secure stable supplies of resources essential for energy storage devices and semiconductors, such as rare earth elements, lithium, nickel, and cobalt. - Signing bilateral MOUs with Brazil, Australia, and South Africa. - Negotiating ‘fair trade and technology transfer’ packages with countries implementing resource nationalization policies. - Establishing joint investment funds in the fields of mineral exploration and refinement.

Main Point 2: AI Strategy - Achieving Technological Independence and Social Inclusion Simultaneously

President Lee Jae-myung emphasized that the advancement of AI affects not only power consumption issues but also all areas including industry, employment, human rights, and education. He stated that reforms in both technology and accompanying systems and philosophy are necessary. 1. Low-Power AI Semiconductors – The Core of Energy-Efficient Digital Technology AI computations consume power over 20 times that of CPUs. To overcome this, Korea is focusing its capabilities on developing NPUs (Neural Processing Units) with high energy efficiency. - Roadmap for Korean NPU chip development: Aiming for mass production of world-class NPUs with processes below 5nm by 2027. - Increase in localization rate: Support for integration of AI semiconductor design, testing, and fabrication processes. - Development of custom chips for cloud and edge servers to improve AI energy efficiency by over 40%. 2. Private Sector-Led Innovation Ecosystem AI thrives on speed and flexibility. Accordingly, the Korean government is pursuing institutional reforms under the principle that the government acts as a coordinator while the private sector serves as the innovation entity. - Expansion of AI-specialized R&D tax credits: Increasing from 30% to 50%. - Expansion of regulatory sandbox items: Increasing AI demonstration projects in healthcare, finance, education, etc. - Establishment of the 'National AI Fund': A fund of 5 trillion won co-participated by pension funds, private capital, and the national budget. 3. Ethical Use and Inclusiveness of AI To ensure that technological advancements do not lead to marginalization and inequality, Korea is proposing the following directions. - Expansion of publicly accessible datasets: Enhancing transparency so that anyone can participate in AI development. - Establishment of an AI education platform: Supporting basic AI education for youth, the elderly, and non-IT personnel. - Participation in the establishment of international AI ethical standards: Collaborating with UNESCO and OECD.

Main Point 3: International Strategy - A Global Network Centered on G7, APEC, and MSP

President Lee Jae-myung is scheduled to officially announce the specific implementation roadmap and evaluation system of the AI-Energy Integration Strategy presented at this year's G7 during the APEC summit to be held in Gyeongju in October. 'K-Integration Strategy 2030' declaration: Specifies the joint action principles of countries undergoing structural transformation in the AI and energy sectors. Annual implementation goals and evaluation framework established: Quantification for effective execution. Additionally, at this G7, Korea officially joined the 'Critical Minerals Action Plan' and the 'Kanawhiskis Wildfire Charter,' demonstrating Korea's position as an active player rather than just a neighboring country in addressing climate and resource crises. Participation in such international arenas is not merely an expansion of diplomacy it is an expression of Korea's commitment to realize the 'paradigm shift in governance' proposed by Korea in collaboration with the global community.

Conclusion: Structural Reform and Trust-Based Leadership

President Lee Jae-myung's G7 speech focused on the core pillars of future society: energy and AI, presenting a direction for structural reform rather than short-term responses. This strategy is summarized into four main axes: - National infrastructure innovation: modernization of physical infrastructure such as renewable energy, smart grids, and cybersecurity - Supply chain-led diplomacy: strategic acquisition of resource accessibility through mineral diplomacy and the MSP - Private sector-centered technological innovation: encouraging simultaneous participation of businesses and citizens through tax, fund, and regulatory innovation - Joint design of global norms: philosophical and institutional sharing of structural reforms within multilateral organizations like G7 and APEC If these strategies are realized, South Korea could achieve technological hegemony and energy independence, becoming a trusted partner and mediator in the international community.