Shaping Tomorrow: Korea's APEC 2025
From October 31st to November 1st, 2025, Gyeongju City hosted the Asia-Pacif ic Economic Cooperation (APEC) summit, marking Korea’s return to the global diplomatic stage after two decades since it last hosted the summit in Busan City in 2005. As chair, Korea placed artificial intelligence (AI) cooperation and demographic shifts at the top of the agenda. In response, the Sungkyun Times (SKT) examines the significance of APEC and Korea’s leadership in shaping these global discussions.
APEC’s Journey of Power and Progress
Established in 1989, APEC is the largest multilateral forum dedicated to advancing economic cooperation across the Asia-Pacific region. With 21 members, including the United States (U.S.), China, Japan, Korea, and Australia, APEC has functioned as a central platform for promoting trade liberalization and investment facilitation. Held annually, the forum has played a significant role in setting shared economic agendas. One of its most important milestones was the 1994 Leaders’ Declaration, where members committed to achieving free and open trade and investment by 2010 for developed countries and by 2020 for developing ones. This ambitious aim, also known as the Bogor Goals, established APEC as a forum with tangible influence rather than just a venue for discussion. Another defining moment came during the 1997 Asian Financial Crisis, when member economies coordinated to stabilize the regional currencies and financial systems. More recently, at the 2014 Leaders’ Declaration, APEC leaders endorsed the Beijing Roadmap for the Free Trade Area of the Asia-Pacific (FTAAP), which emphasized comprehensive trade integration and inclusive growth. Through the Bogor Goals, the Asian Financial Crisis response, and the Beijing Roadmap, APEC has proven its significance as a cooperative body with clear goals, a platform capable of joint responses in times of crisis, and a strategic forum that envisions regional integration. Even today, APEC’s collective economic weight is substantial. For example, its members account for nearly 62% of global Gross Domestic Product (GDP) and about half of world trade, according to APEC’s official statistics. The forum has also broadened its agenda to address long-term challenges such as digital transition, climate change, and demographic shifts.
APEC in Korea
-Gyeongju on the Global Stage
For Korea, APEC 2025 carried special symbolic weight. After hosting the summit for the first time in Busan in 2005, the country welcomed leaders back two decades later to Gyeongju, the thousand-year capital of the ancient Silla Kingdom and home to multiple United Nations Educational, Scientific and Cultural Organization (UNESCO) World Heritage Sites. By situating the summit there, Korea was able to showcase its rich cultural heritage and spotlight Gyeongju on the international stage, presenting the city as a rising destination for global business tourism. With its unique combination of ancient heritage, scenic landscapes, and modern infrastructure, such as the Hwabaek International Convention Center (HICO), Gyeongju demonstrated its potential to evolve into a hub where culture, tourism, and international exchange converge. The city’s walkable historic sites, from Bulguksa Temple to the Gyeongju Historic Areas, allowed visiting delegates to experience history firsthand, reinforcing its image as a living museum. In this sense, APEC 2025 positioned Gyeongju as a bridge between tradition and modernity, linking Korea with the broader world.
-APEC Unveiled: Korea’s Backstage Master Plan
Bringing APEC back to Korea required years of meticulous preparation. At the heart of these efforts was HICO, which served as the central venue for the summit, the final stage of APEC where heads of state gather for high-level discussions. First, in terms of infrastructure, the central government invested heavily in upgrades, from expanding hotel capacity to improving transport accessibility. Facilities were adapted to meet the logistical needs of hosting nearly 1,500 delegates, journalists, and support staff. Second, in terms of safety, the government deployed thousands of security personnel across the city, especially around HICO, nearby hotels, and transportation hubs. Advanced Gyeongju, the City Where Heritage Still Breathes counterterrorism systems, including jamming devices to neutralize drones, were installed to detect potential threats. Also, roads leading to key venues were placed under strict traffic control. Moreover, the government partnered with BBB Korea, a language service organization, to provide real time interpretation in over 20 languages, ensuring seamless communication. Preparations for the APEC summit were not limited to building venues or organizing logistics; they also required extensive diplomatic groundwork. In the months leading up to the event, a series of ministerial meetings were held to pave the way for the leaders’ discussions. Ministers responsible for trade, finance, and the digital economy gathered throughout 2024 and 2025 to review pressing issues, coordinate national positions, and seek areas of common ground. These gatherings provided a space for officials to debate policy details and produce draft documents that would later be refined and endorsed by heads of state during the summit. Among the various meeting locations, Incheon City not only served as a venue for these high-level ministerial gatherings but also launched a public recruitment of 140 citizen volunteers, mainly from universities and civic groups, to support the smooth operation of the APEC summit. These efforts reflected Korea’s broader commitment to ensuring the success of the 2025 APEC summit.
AI at a Crossroads: Balancing Innovation and Inequality
-Opportunities, Risks, and Inequalities
Among the central issues discussed at APEC 2025 was the rapid rise of AI. AI has been hailed as a transformative force with the potential to add $15.7 trillion to the global economy by 2030. Today, across various industries from manufacturing to healthcare, AI systems are being deployed to increase efficiency, generate new products, and unlock innovative business models. Within the Asia-Pacific region, AI is increasingly viewed as a strategic asset for both economic growth and national security. However, this technological revolution risks deepening inequalities. Advanced economies such as the U.S. and Japan possess vast capital reserves, allowing them to dominate the global AI market. For instance, the U.S. alone invested about $109.1 billion in private AI funding in 2024. In contrast, developing economies face substantial barriers, including limited access to high performance computing infrastructure, shortages in skilled labor, and weaker digital ecosystems. The risk is that although AI is not new, its rapid rise in recent years could widen existing gaps, creating a two-speed global economy where only the wealthiest benefit from automation. AI’s impact on the labor market further complicates the picture. According to the 2023 report by the Organization for Economic Cooperation and Development (OECD), about 27% of jobs in the OECD region are at high risk of automation. Although AI opens new frontiers in areas such as data science and advanced robotics, it threatens jobs centered on repetitive tasks, particularly in manufacturing. As AI continues to advance, the pressure on labor markets grows, with dangers of job displacement extending beyond repetitive tasks to creative work as well.
-Sharing Data, Sharing Growth
Recognizing potential opportunities and risks of AI, APEC leaders placed AI cooperation at the forefront of their agenda for APEC 2025. The summit emphasized three priorities: establishing common data standards to ensure interoperability, developing ethical governance frameworks to prevent misuse, and fostering cross-border talent exchange to support inclusive workforce development. Korea, serving as chair, advanced the development of a comprehensive APEC AI initiative, which is expected to be finalized by the end of 2025. The initiative is expected to focus on strengthening digital infrastructure, promoting the responsible and trustworthy adoption of AI, expanding connectivity, and building capacity among member economies. By doing so, it seeks to bridge the gap between advanced and developing economies, ensuring that the benefits of AI are more evenly distributed. For Korea, this proposal reflects a broader ambition to act as a mediator between technological front-runners and emerging economies. By leveraging its experience as both a technology-intensive society and a nation that underwent rapid development, Korea positions itself as a credible coordinator of inclusive innovation.
Aging Populations, Rising Pressures
-The Silent Crisis of Shrinking Populations
If AI represents a technological challenge, demographic change represents a social one. The Asia-Pacific region has recently been confronting a dramatic transformation in population structure, characterized by aging populations and declining birth rates. By 2025, Korea is expected to officially become a super-aged society, with more than 20% of its population aged 65 or older. This demographic shift brings with it a host of structural problems: shrinking labor forces, ballooning welfare expenditures, and growing intergenerational tensions. Other APEC members face similar pressures, making demographic change an increasingly urgent issue on the forum’s agenda. For instance, Japan crossed the super-aged threshold in 2005 and continues to grapple with a declining workforce. Therefore, the convergence of these demographic crises across the region has profound implications for economic productivity and social stability.
-From Domestic Strain to Global Cooperation
At APEC 2025, leaders stressed the need for collaborative, cross-border responses. Shared priorities included expanding youth participation in the labor market, promoting silver tech innovations to support elderly populations, and exchanging policy lessons on pension reform and long term care. Korea highlighted its own initiatives as potential models that other economies could look to as references. These initiatives included its long-term care insurance system that provides universal coverage for adults over 65 and younger individuals with illnesses, as well as recent digital healthcare programs aimed at elderly populations. In an interview with the SKT, Lee Min-hyeon, an office worker caring for his father, shared, “My father benefits from digital healthcare monitoring, and it gives our family peace of mind knowing that his health is being tracked in real time.” At the same time, Korean policymakers acknowledged the domestic challenges these systems face, underscoring the need for continued reform at home. Korea’s experience may serve as a cooperative model for other economies, but meaningful progress requires the simultaneous resolution of its own domestic challenges.
Under its motto “Building a Sustainable Tomorrow: Connect, Innovate, Prosper,” APEC 2025 in Gyeongju demonstrated that global challenges demand cooperation grounded in both vision and action. Through this summit and follow-up measures, Korea seeks to lead international cooperation by prioritizing sustainability and innovation. For Kingos, this is more than just a story to follow — it is an invitation to engage with the future that is being shaped today.