President Lee Jae-myung on October 22 evaluated the forecast of a two-year consecutive increase in the potential growth rate as a "historic turning point for our government." He emphasized the need to concentrate fiscal and policy resources on sectors that are recovering slowly, specifically directing sufficient financial input for youth jobs, housing supply, and domestic consumption activation.
During a meeting with senior aides at the Blue House, President Lee referenced the International Monetary Fund's (IMF) outlook for South Korea's potential growth rate, noting, "This is the first time in 40 years since the mid-1980s during the period of high growth."
He added, "The forecast is particularly significant given the unfavorable conditions such as high oil prices due to the Middle East conflict and the global supply chain crisis, unlike the prosperous period of the 1980s."
President Lee described the rebound in potential growth rate, which he called the foundation of the economy, as "truly welcome news" and stressed that it should serve as a catalyst for balanced growth.
To achieve this, he stated that policy efforts should focus on enhancing the competitiveness of advanced strategic industries such as AI and semiconductors while also recovering youth jobs and domestic demand.
He warned that if imbalances become entrenched, it could lead to decreased youth participation in the economy and weaken the domestic base, potentially squandering the opportunity for a rebound in the potential growth rate. "These issues cannot be left entirely to the market," he said.
President Lee instructed that the secured fiscal capacity should be sufficiently allocated to expand youth jobs, increase housing supply, and stimulate domestic consumption.
He also called for strengthening support for financially vulnerable groups in anticipation of rising interest rates. Noting that the upward trend in interest rates may persist for some time, he stated, "We must actively develop and mobilize fiscal and policy measures to ensure that the South Korean economy can settle into a new growth trajectory."
President Lee emphasized the need to change the framework of cooperation between large and small businesses. He pointed out that if the fruits of growth are concentrated solely in large corporations, it would exacerbate internal economic disparities and deepen polarization, undermining the nation's growth potential. He noted that growth that leaves small businesses, which account for over 80% of total jobs, behind is neither sustainable nor desirable.
He stated, "We must shift the paradigm of cooperation between large and small businesses to ensure balanced growth and drive national economic growth."
Specifically, he mentioned the need to expand the existing framework of cooperation, which has focused on manufacturing and construction, into diverse areas such as platforms and finance, in line with advancements in artificial intelligence and industrial restructuring.
He also called for tailored cooperation measures to promote collaboration between large and small businesses in national projects, including three mega-projects, seven SEED projects, and three key social policies.
Meanwhile, President Lee directed officials to assess safety management in areas expected to see large crowds in preparation for Halloween and autumn festivals. He particularly emphasized the need for heightened vigilance regarding events that lack clear organizers or involve ambiguous large gatherings to prevent safety blind spots.
* This article has been translated by AI.
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