"The Era of Catch-up Economy is Over"... Koo Yoon-cheol "Must Install New Growth Engine through AI Transformation"

[Financial News] Koo Yoon-cheol, nominee for Deputy Prime Minister and Minister of Economy and Finance, emphasized on the 17th, "The existing catch-up economic model no longer fits us," and "It is time to transition to a technology-driven leading nation."
 Nominee Koo presented the new government's economic vision in his opening statement at the National Assembly confirmation hearing, using expressions like 'real growth', 'super-innovative economy', and 'Corporation Korea', focusing on performance-oriented policy operation, AI-based industrial transformation, public welfare stability, and export structure improvement.
 He pointed out, "While hesitating on the transition, even the achievements we have made so far are threatened by declining potential growth rates and widening gaps between sectors." He continued, "Recently, our economy has been experiencing low growth around 0% for four consecutive quarters, and for the first time in history, the number of self-employed business closures exceeded 1 million annually due to domestic demand stagnation, while the income of ordinary households has actually decreased."
 Over the past three years, consumer prices have risen by more than 8% cumulatively, significantly increasing the living cost burden on ordinary citizens. Externally, he diagnosed that various risks, such as tariff negotiations with the United States, China's pursuit, the Russia-Ukraine war, and instability in the Middle East, are exacerbating the economic crisis.
 Nominee Koo identified "the weakening of our growth potential as the biggest problem," citing low birth rates, aging population, investment contraction, and productivity stagnation as major threats.
 He declared, "Through a technology-driven super-innovative economic transformation, we will change the outdated catch-up economic model to a leading economic model." He proposed the concept of 'Corporation Korea' as an administrative philosophy to realize this.
 He emphasized, "Civil servants are key employees maximizing the happiness of shareholders, the people," and stressed the need for performance-oriented policy promotion.
 Nominee Koo also stated, "We must install a new growth engine in our economy through AI transformation." He announced plans to "train young people as AI special forces and provide AI education to all citizens so that AI can be an open opportunity for everyone."
 The plan is to utilize AI technology as the two main pillars for upgrading existing industries and fostering advanced strategic industries. The existing petrochemical and automobile industries will incorporate AI, and future industries such as quantum, space, bio, energy, K-culture, and defense will be linked with AI to transform into super-innovative industries.
 To achieve this, Nominee Koo announced the formation of a 'Super-Innovation Item Project Team', stating, "We must select core items and mobilize all national capabilities to create world-class products."
 Nominee Koo also expressed his position to simultaneously promote measures for price stability and domestic demand recovery.
 He said, "We will mobilize all available resources to stably manage the prices of essential goods, agricultural and livestock products, and processed foods," and "We will execute supplementary budgets as quickly as possible and focus all efforts on revitalizing domestic tourism and promoting consumption to revive domestic demand."
 Nominee Koo emphasized the need for proactive responses to recent changes in the trade environment and committed to strengthening fundamental export competitiveness through diversification of export items and markets.
 He stated, "We have no choice but to do this," and "With the determination that it must be done, we will achieve major innovations in the economic, social, and national systems."
 He emphasized, "For over 30 years as an economic official, I have planned and coordinated various policies, and after retirement, I have traveled to local areas to directly observe policy sites," and "I will devote all my energy to building a great Korea through real growth."


spring@fnnews.com Reporter Lee Bomi