SK Group’s Bold Vision: Megacities and Japan Alliance to Counter Korea’s Demographic Crisis

When one of South Korea’s most powerful business leaders speaks, the country listens. SK Group Chairman Chey Tae-won’s recent call for radical solutions to his nation’s demographic crisis represents more than just corporate commentary—it’s a stark admission that business as usual won’t cut it anymore. In a revealing YouTube interview that’s generating serious buzz in policy circles, Chey didn’t just identify problems; he proposed solutions so ambitious they’d make most urban planners blush.

The Demographic Imperative

South Korea faces what can only be described as a demographic emergency. With the world’s lowest fertility rate at 0.72 children per woman and a rapidly aging population, the economic implications are staggering. Chey’s intervention comes at a critical moment when traditional policy responses have clearly failed to move the needle. “What’s striking about Chey’s proposals is their scale,” says Dr. Min-ji Park, a demographics expert at Seoul National University. “He’s not talking about incremental changes but fundamental rethinking of how Korea positions itself in the region.”

The numbers tell a frightening story. According to recent analysis, South Korea’s working-age population peaked in 2020 and is now in permanent decline. By 2070, nearly half the population will be over 65. Against this backdrop, Chey’s call for an “international megacity” and specialized green card system isn’t just ambitious—it’s arguably necessary for survival.

The Megacity Vision

Chey’s proposal for an international megacity represents one of the most forward-thinking urban development concepts to emerge from corporate Korea. While details remain scarce, the vision appears to involve creating a specially designated zone with streamlined immigration, international standards of living, and infrastructure designed to attract global talent. This isn’t just about building taller buildings—it’s about creating an ecosystem that can compete with Singapore, Dubai, and other global talent hubs.

“The megacity concept makes strategic sense,” observes urban development expert Kenji Tanaka. “Korea needs to create magnets for global talent, and purpose-built cities with special economic zones have proven successful in China and the Middle East. The key will be whether they can offer the lifestyle and opportunities that top global talent demands.”

What’s particularly interesting is the timing. This proposal comes as global competition for skilled workers intensifies, with countries from Canada to Germany rolling out red carpets for tech talent and specialized professionals. Korea’s traditionally homogeneous society would need to undergo significant cultural shifts to make such a vision workable.

The Japan Gambit

Perhaps even more politically charged is Chey’s call for an “economic coalition” with Japan. Given the historical tensions between the two nations—including ongoing disputes over wartime history and trade restrictions—this represents a bold departure from conventional thinking. Chey specifically mentioned joint energy purchases and development, which could provide substantial cost savings for both nations’ manufacturing-heavy economies.

The energy angle is particularly savvy. Both Japan and South Korea are heavily dependent on imported energy, and combining purchasing power could significantly strengthen their negotiating position with suppliers. “In the global energy markets, scale matters,” notes energy analyst Sarah Chen. “A joint Japan-Korea purchasing bloc could command better pricing and supply security, especially for LNG and other critical resources.”

This isn’t just about immediate cost savings, though. The proposal hints at deeper industrial cooperation that could help both nations compete more effectively against China’s manufacturing dominance and navigate the complex geopolitics of US-China tensions.

Corporate Leadership in Policy

What’s fascinating about Chey’s intervention is what it says about the evolving role of corporate leaders in Korean society. As chairman of SK Group—South Korea’s second-largest conglomerate with interests spanning energy, telecommunications, and semiconductors—Chey wields influence that extends far beyond his corporate portfolio. His willingness to weigh in on fundamental national policy questions reflects how business leaders are increasingly stepping into what was traditionally government territory.

This isn’t entirely new for Korea, where the chaebol have long played an outsized role in the economy. But the scope and ambition of these proposals suggest a new level of corporate engagement with existential national challenges. “When business leaders start talking about demographic crises and international relations, it signals that they see these issues as fundamental threats to their future operations,” says business strategy professor David Kim.

Implementation Challenges

The gap between vision and reality, however, remains substantial. Creating a new international megacity would require massive investment, political will, and likely special legislation. The green card system faces cultural headwinds in a society that has historically been cautious about immigration. And the Japan cooperation proposal must navigate decades of historical baggage and periodic diplomatic flare-ups.

Meanwhile, the clock is ticking. South Korea’s demographic challenges are already affecting labor markets, pension systems, and economic growth projections. The urgency in Chey’s comments suggests that corporate leadership recognizes that waiting for perfect solutions is a luxury the nation can no longer afford.

What makes these proposals particularly compelling is their recognition that Korea’s challenges require thinking beyond national borders. In an era of deglobalization and rising nationalism, Chey is advocating for more integration, more cooperation, and more openness—a contrarian position that might just be what the situation demands.

The Bigger Picture

Chey’s vision extends beyond immediate business interests. As leader of a conglomerate with massive investments in future technologies like semiconductors, batteries, and renewable energy, he understands that Korea’s ability to compete globally depends on solving these foundational challenges. The proposals represent a strategic recognition that corporate success and national prosperity are inextricably linked.

Other Asian nations facing similar demographic headwinds—including Japan, Taiwan, and Singapore—will be watching closely. If Korea can successfully implement even parts of this vision, it could provide a blueprint for other aging societies. The international megacity concept, in particular, could become a model for creating targeted zones of global connectivity within national borders.

What’s clear is that business as usual isn’t an option. As Chey’s intervention demonstrates, solving Korea’s demographic crisis will require bold thinking, international cooperation, and probably some ideas that seem radical today. The question isn’t whether changes this dramatic are necessary, but whether the political and social will exists to make them happen before it’s too late.