On the 22nd, the government announced its 'new government economic growth strategy,' which contains a prescription that Korea's economic breakthrough lies in 'artificial intelligence (AI)' amid China's technological rise and America's trade order disruption. This strategy includes a blueprint to innovate the manufacturing industry based on AI to lay the groundwork for medium- to long-term growth.
Experts generally agreed with the approach of raising the potential growth rate to 3% through manufacturing innovation utilizing AI. However, they pointed out that there are no short-term responses to overcome the current economic downturn and consumption slump. There were also voices criticizing the listing of tasks without specific plans for tax and fiscal support.
Woo Seok-jin, a professor of economics at Myongji University, noted, "The approach of focusing on AI itself is positive," but added, "However, this is a medium- to long-term task, and I do not see any short-term measures that should be included in the economic policy direction." Professor Woo particularly criticized the omission of realistic measures, such as responses to the sluggish construction market and consumer recovery.
Lee Jeong-hee, a professor of economics at Chung-Ang University, stated, "The goal of raising the potential growth rate to 3% through manufacturing innovation utilizing AI is good," adding, "Technological innovation to enhance productivity amidst declining labor and capital competitiveness is an urgent task."
However, Professor Lee further pointed out, "The vision is good, but specific plans to guarantee execution must follow." He indicated that there is an absence of specific execution plans.
Kim Jeong-sik, a professor of economics at Yonsei University, also stated, "The government's policy direction to actively support AI is good, but concrete plans by year are necessary." Seok Byeong-hoon, a professor of economics at Ewha Womans University, emphasized, "The core of this strategy is to greatly increase investment in AI, but there is no detail on how this will be implemented."
Criticism regarding policy consistency also emerged. While the subject of technology development and facility investment is set as corporations, there are policies that hinder corporate activities, such as labor law amendments.
Professor Kim Jeong-sik remarked, "To achieve the target potential growth rate of 3%, it is essential to improve systems in the labor market and tax that are not aligned with global standards to encourage increased corporate investment," adding, "While stating that fiscal policies will stimulate domestic demand, on the other hand, they are implementing policies that hinder corporate investment. Consistent economic stimulus policies are necessary to support domestic demand."
Professor Seok Byeong-hoon pointed out, "It seems that measures to enhance the potential growth rate have only been sought from the perspective of technological innovation," adding, "There are no plans to boost the growth rate in terms of 'total factor productivity,' which assesses the efficiency of labor and capital input." He asked, "Aren't corporations the main players in tech investments, such as AI?" and noted, "However, while promoting the Yellow Envelope Law and amendments to commercial laws centered around the National Assembly, they are trying to implement policies that dampen corporate investment."
There are also criticisms regarding insufficient consideration of changes in the labor market following the introduction of AI. Professor Seok said, "There is also an expectation of reduced labor expense from corporations increasing investments in AI automation facilities," stating, "However, the government's strategy does not include concerns about the changes in the labor market that will occur after the introduction of AI."
There are criticisms that the projects the government has adopted for future growth are too vast. It is said that government support may be fragmented, and as a result, the nurturing of a 'first-class industry' may not occur.
Ahn Dong-hyun, a professor of economics at Seoul National University, stated, "Rather than aiming to dominate all areas of AI, I believe it would be more effective to focus on specific fields such as parts, materials, and applications to implement finance intensively." Professor Ahn explained, "The automotive, shipbuilding, and steel industries nurtured in the 1970s are still driving our economy," adding, "This is because the financing has been used in a fragmented manner, failing to cultivate new industries intensively."