Lee Jae-myung Government Launches All-Out Drive for 3% Potential Growth Through AI Innovation

The Lee Jae-myung administration has launched a comprehensive campaign to achieve 3% potential growth rate recovery through fundamental economic restructuring, with artificial intelligence innovation at its core.

OECD's Shocking Projections Spark Action

Following the OECD's downward revision of Korea's potential growth rate to 1.9% and projections of a potential drop to zero percent by 2040, the Lee Jae-myung government has initiated aggressive countermeasures. The National Planning Committee has established a dedicated task force comprising the Ministry of Economy and Finance and the Bank of Korea to develop concrete response strategies.

The OECD's latest report estimated Korea's 2025 potential growth rate at 1.9%, significantly below the government's 3% target. This figure reveals structural limitations in the Korean economy and represents a wake-up call for policymakers.

AI Innovation as Economic Breakthrough

To overcome this crisis, the Lee administration is concentrating all capabilities on economic innovation through artificial intelligence technology. The government views AI as the core driver of productivity innovation and has begun establishing a control tower to oversee related policies.

A National Planning Committee official stated, "We are dedicating our full efforts to discovering new growth engines suitable for the AI era and accelerating digital transformation of existing industries to enhance potential growth rates."

Three-Pillar Strategic Framework

The government's potential growth rate recovery strategy consists of three main pillars. First, large-scale investment expansion for AI technology development and industrial application. The government plans to strengthen national-level AI capabilities through sovereign AI construction and innovate productivity across all industrial sectors.

Second, talent development and re-education system establishment. The core focus is nurturing AI-era talent and strengthening existing workers' digital capabilities. The government is building an AI talent development ecosystem through collaboration between universities, companies, and research institutions.

Third, creating business environments through regulatory innovation and institutional improvements. The policy direction involves reforming various regulations that hinder AI technology commercialization and establishing institutional foundations for new business model activation.

International Cooperation and Public-Private Partnership

The Lee administration recognizes that AI innovation has limitations with domestic capabilities alone and is actively pursuing international cooperation. Particular emphasis is placed on strengthening technological cooperation with AI-advanced nations like the United States and Europe, while attracting domestic investment from global AI companies.

Simultaneously, collaboration with the private sector is expanding. Through partnerships not only with major corporations like Samsung and LG but also with AI startups, the government is creating an innovation ecosystem and ensuring policy effectiveness in practical applications.

Need for Bipartisan Political Support

Experts emphasize the need for bipartisan political support, noting that potential growth rate recovery is not achievable in the short term. Policy consistency and continuity must be guaranteed for AI innovation policies to produce substantial results.

Economists point out that "potential growth rate recovery is a long-term task transcending administrations" and "should be approached at the national level, beyond political logic."

Challenges and Future Outlook

However, uncertainty remains about whether these government policies will translate into actual results. AI technology development requires enormous costs and time, and realistic limitations exist in rapidly overcoming technological gaps.

Additionally, aging and low birth rate issues are structural problems difficult to solve through AI technology alone. The government maintains its position of pursuing AI innovation alongside population policies and labor market reforms.

Economic experts evaluate that "3% potential growth rate recovery is a challenging goal, but new possibilities can be opened through AI innovation," emphasizing that "policy execution capability and sustainability are key."

Original Korean article: https://trendy.storydot.kr/politics/lee-government-potential-growth-rate-ai-innovation