Seoul: The newly appointed head of the Korea Development Institute (KDI) has emphasized the need for South Korea to transition towards a focus on "genuine growth" in order to enhance the nation's growth potential. He asserted that relying solely on short-term economic stimulus measures will be insufficient to tackle the country's economic issues.

According to Yonhap News Agency, Kim Se-jik, in his inauguration speech, highlighted that short-term policies are inadequate for resolving structural economic challenges. He warned of the potential decline of South Korea's growth rate to the zero percent range, urging a shift in economic policy towards sustainable growth that counters the long-term downward trends in potential growth.

Kim's call for change is supported by several institutions, including the Bank of Korea, which have forecasted a possible drop in the country's growth potential to near zero by the 2040s. To combat this, Kim advocates for comprehensive innovation in various sectors, including the economy, technology, education, and social systems, coupled with policy research to drive these changes.

As a former economist with the International Monetary Fund (IMF), Kim also committed to supporting efforts aimed at identifying policy agendas and fostering the development of innovative policy ideas in pursuit of genuine growth.