▲ President Lee Jae-myung speaks during a meeting with senior aides held at Cheong Wa Dae on October 22.
President Lee Jae-myung assessed, "The International Monetary Fund (IMF) has projected that our potential growth rate will rise for two consecutive years. This is the first time in 40 years since the high-growth era of the 1980s," adding, "The potential growth rate, which had declined by about 1 percentage point with each change of administration, is reaching a historic turning point under our government."
President Lee made the remarks on Thursday (October 22) while presiding over a meeting with senior aides at Cheong Wa Dae, stating, "Unlike the 1980s, which saw a boom driven by the 'three lows' (low oil prices, low interest rates, and a low dollar), this outlook is all the more meaningful because it comes amid unfavorable conditions such as high oil prices caused by Middle East conflicts and global supply chain disruptions."
President Lee noted, "I have repeatedly pledged to reverse the downward trajectory of our potential growth rate, though I knew it would be no easy task," adding, "It is truly welcome news that the foundation for our economy's growth is becoming firmer."
In particular, President Lee urged, "We must use this trend as a catalyst to move toward sustainable and balanced growth."
He continued, "To achieve this, we must further enhance the competitiveness of high-tech strategic industries such as artificial intelligence (AI) and semiconductors, while focusing fiscal and policy resources on sectors where recovery has been lagging," assessing that "we must actively develop and mobilize fiscal and policy measures so that South Korea's economy can settle firmly onto a new growth trajectory."
Specifically, he pointed out, "Due to shifts in current industrial structures, even when the economy grows, career pathways for young people are narrowing and the gap between exports and domestic demand fails to close," warning that "if these imbalances become entrenched, youth participation in the economy will decline, the domestic demand base will weaken, and the opportunity for a rebound in the potential growth rate could vanish into thin air."
He added, "We must not leave these issues entirely to the market," instructing officials to "sufficiently deploy the secured fiscal capacity where needed to expand youth employment, supply housing, and stimulate domestic consumption."
He further noted, "Interest rate hikes are currently anticipated, and some voice the view that this trend is likely to persist for a considerable period. Taking this into account, we must also bolster support for financially vulnerable groups."
Addressing the disparity between large corporations and small and medium-sized enterprises (SMEs), he stressed, "If the fruits of growth are concentrated solely in conglomerates, polarization worsens and undermines the nation's growth potential. Growth that alienates SMEs, which account for more than 80% of all jobs, is neither sustainable nor desirable," calling for "an industrial ecosystem where conglomerates and SMEs grow together."
He went on to explain, "We must newly transform the paradigm of mutual cooperation so that SMEs and large corporations achieve shared growth and drive national economic expansion," adding, "To this end, in keeping pace with the development of artificial intelligence and industrial restructuring, we need to expand the existing framework of mutual cooperation—which has been concentrated in manufacturing and construction—to diverse sectors such as digital platforms and finance."
President Lee reiterated, "Even in key national initiatives such as the three major mega-projects, seven seed projects, and three core social policies, we must devise customized mutual cooperation measures to foster collaboration between large corporations and SMEs."
(Photo: Cheong Wa Dae Press Photo Corps, Yonhap News)
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