On the 22nd, the government announced a new economic growth strategy centered on 'AI transformation'. With the growth rate forecast for this year halving from the previous 1.8% to 0.9%, it is determined that the AI transformation is the only breakthrough to reverse the slowdown in growth.
This strategy focuses on setting specific industrial items as targets, unlike existing economic policy directions, and emphasizes 'selection and concentration' on fields with expected outcomes for concentrated investment. The plan aims to mobilize national capabilities in finance, taxation, finance, human resources, regulation, and location to create world-class products and services.
The four pillars of the economic growth strategy proposed by the government are ▲leading growth through technology ▲growth for all ▲fair growth ▲strengthening the foundation for sustainable growth. The government stated, 'We will achieve AI powerhouse status, a potential growth rate of 3%, and rank among the top five global powers through economic revolution.'
As part of the 'leading growth through technology', the government will immediately push for 30 leading projects in AI transformation and super innovation beginning in the second half of the year. AI will be integrated across all manufacturing sectors, including robotics, automobiles, ships, home appliances, drones, factories, and semiconductors, with priority support for all packages including finance, taxation, finance, human resources, regulation, and infrastructure. A national growth fund of over 100 trillion won will be established to back this initiative, and efforts will be made to secure talent through human resource development, preventing outflow, and attracting overseas talent.
To promote balanced regional development, the government will select and concentrate support on ultra-regional growth engines and expand local investment promotion subsidies. A resident participation-type 'sunshine and wind pension' model will be introduced, and a policy to 'create 10 Seoul National Universities' nationwide will also be pursued.
Support for small and medium-sized enterprises (SMEs) and small business owners will be strengthened. By allowing venture investments from retirement pensions and public funds, the venture investment ecosystem will be enhanced, and the use of AI by small manufacturing companies and small business owners will be promoted. In terms of the livelihood economy, reforms to the basic pension, additional payments for maternity leave for low-income families, and gradual extensions of retirement age have been announced.
To strengthen fairness, efforts will be made to expand the delivery price linkage system, enhance responses to technology theft, broaden the evaluation targets for the co-growth index, and establish AI-specialized joint training centers. The aim is also to resolve the gaps between large and small businesses and between regular and irregular workers, and to eradicate industrial accidents.
Measures to normalize the capital market have also been included. Guidelines will be established to expand the fiduciary duty of directors, and a one-strike-out system will be introduced for unfair trading such as stock price manipulation.
Regulatory innovations have also been announced. The shift to a 'negative regulation' system where everything is permitted except prohibited acts for AI transformation will take place, and a system for sharing regulatory information between the central and local governments will be established. Economic punitive regulations will also be relaxed to prevent unfair punishments of corporations.
Meanwhile, the government presented a real GDP growth rate forecast of 0.9% for this year and 1.8% for next year according to the new economic growth strategy. However, it refrained from mentioning the timeline for achieving the '3% growth rate,' which is a pledge and goal of President Lee Jae-myung.
Deputy Minister Yoon In-dae of the Ministry of Economy and Finance said, 'There is no place to retreat in terms of growth rate' and 'We will do our utmost to raise the growth rate.' However, when asked about the timeline for achieving the 3% economic growth rate, he added, 'Reversing the decline in potential growth rate during the current government's term is the top priority.'