Seoul:South Korea is working to transition its current economic boom, fueled by advancements in artificial intelligence (AI) and the semiconductor sector, into sustainable long-term growth, as stated by the country's finance minister during an annual consultation with Fitch Ratings.
According to Yonhap News Agency, Finance Minister Lee Hyoung-il discussed these plans during a meeting with Fitch's delegation, which included Thomas Rookmaaker, head of Asia-Pacific Sovereigns, in Seoul. The meeting marked the conclusion of three days of annual consultations that began earlier in the week.
Minister Lee highlighted South Korea's anticipated growth in the mid-3 percent range this year, driven by the AI and chip industries, and expressed optimism about the country's growth potential rebounding. He underscored the importance of converting the current economic boom into sustainable growth through government-implemented policy measures, including three major projects.
Additionally, Lee detailed South Korea's initiatives to distribute productivity gains from the AI and chip sectors to other areas and establish a foundation for enduring growth. He also addressed the need to manage disparities emerging from the industry boom and ensure equitable distribution of economic growth benefits across different sectors and regions.
The finance ministry noted that Fitch Ratings showed significant interest in the potential for South Korea's economic progress to be sustained structurally beyond the current boom in the semiconductor industry. Minister Lee conveyed confidence that the country could enhance productivity and increase its potential growth rate through large-scale facility investments and the dissemination of AI technologies to small and medium-sized enterprises, despite facing structural challenges such as a declining and aging population.
Source Yonhap News Agency