■ Title: KISDI 40th Anniversary Conference – “Exploring Desirable Norms in the Age of AI”

■ Date & Time: Thursday, June 26, 2025, 13:00–15:30

■ Venue: Orchid Room, The Westin Josun Seoul

■ Online Broadcast and Replay: KISDI YouTube (www.youtube.com/@KISDIPR)

The Korea Information Society Development Institute (KISDI, President Sangkyu Rhee) held the “KISDI 40th Anniversary Conference” at 1 p.m. on Thursday, June 26, in the Orchid Room of The Westin Josun Seoul.

The conference, held under the theme “Exploring Desirable Norms in the Age of AI,” provided a venue for academic discussion and policy dialogue on emerging digital-era issues such as the effectiveness of ICT industrial policy, algorithmic price collusion, and the value of digital services.

In his opening remarks, President Rhee stated, “Since the emergence of ChatGPT, AI has begun to affect nearly every aspect of our lives—economy, society, culture, and education. It is therefore important to pay close attention to these changes and to reflect on desirable norms that can help us prepare for the various transformations, particularly the negative impacts, brought about by AI.”

The first presenter in the keynote session, Associate Research Fellow Sora Yeon of KISDI, gave a presentation titled “The Invisible Social Welfare of Digital Services,” pointing out that the intangible benefits of digital services are not adequately reflected in traditional economic indicators. She estimated that the top ten most frequently used digital services in Korea generate approximately KRW 527 trillion in annual consumer welfare—equivalent to about 21.9 percent of GDP. Dr. Yeon emphasized that the non-economic value of digital services is likely to be underestimated and stressed the need for active policy measures, such as bridging the digital divide, to ensure a fairer distribution of these social benefits.

Professor Kooil Kim of Michigan State University presented on “Price Collusion and Verification in the Digital Economy: An Instrumental Variable Approach,” explaining that a model based on instrumental variables (the RV-IV test method) can detect algorithmic collusive pricing behaviors with both simplicity and high accuracy, without the need for complex econometric models. Given that the potential for algorithmic collusion using AI has emerged as a new competition issue, Professor Kim’s methodology suggests an effective analytical tool that could empirically support competition authorities’ decisions.

Professor Minsoo Park of Sungkyunkwan University presented on “The Effects of Korea’s ICT Industrial Policy after the Asian Financial Crisis,” analyzing the impact of policy finance on the ICT sector during that period. According to his analysis, Korea’s policy finance following the Asian Financial Crisis did not have a significant effect on overall investment or productivity growth in the ICT industry, and policy effects were observed only in highly concentrated industries. Based on these findings, he stressed that as the government pursues large-scale investment in AI—now recognized as a new growth engine—it must establish effective policy frameworks that move beyond temporary financial support or tax incentives and take into account the competitive conditions and structural characteristics of each industry.

The panel discussion that followed was chaired by Professor Yongkyu Kim, Professor Emeritus at Hanyang University, and featured Professor Jaepil Choi of Michigan State University, Professor Jooyong Jun of Dongguk University, and Associate Research Fellow Jaekyeong Shin of KISDI, who engaged in an active exchange of views.

※ Presentation materials and the full replay of the conference are available on the KISDI YouTube channel.

** KISDI YouTube: www.youtube.com/@KISDIPR