South Korea seeks major economic leap through innovation-led growth

SEOUL, January 07 (AJP) - South Korea will accelerate a shift toward an “ultra-innovation economy” to lift its potential growth rate, Deputy Prime Minister and Finance Minister Koo Yun-cheol said on Tuesday, describing this year as the starting point for a major economic leap.

Speaking at a policy coordination meeting at the National Assembly, Koo said the ministry will deploy active macroeconomic policies, including measures to boost overall demand and to help revive activity among small business owners and the self-employed.

Koo pointed to last year’s third-quarter economic growth, which he said was the strongest in 15 quarters, as well as gains in financial markets. He said South Korea’s exports exceeded $700 billion for the first time last year, while the effects of a supplementary budget — including the distribution of consumption coupons — helped expand job creation, particularly in service industries linked to domestic demand.

"However, the economy faces mounting challenges amid a more difficult global environment and structural constraints at home," Koo said.

The government plans to accelerate a transition toward an innovation-led growth structure by concentrating policy support on national strategic industries such as semiconductors, defense, biotechnology and K-culture, Koo said. He added that authorities will step up efforts in AX, or artificial intelligence transformation, and GX, or green transformation, to help revive potential growth.

“Global competition has reached a stage where it is difficult to survive without becoming No. 1 in the world or an ultra-innovation economy,” Koo said.

* This article, published by Aju Business Daily, was translated by AI and edited by AJP.