S. Korea eyes sustainable growth beyond chip-led boom: finance minister

By Kang Yoon-seung

SEOUL, Nov. 5 (Yonhap) -- South Korea is seeking to turn the current economic boom driven by artificial intelligence (AI) and the semiconductor industry into sustainable growth, the finance minister said Thursday during an annual consultation meeting with Fitch Ratings.

Finance Minister Lee Hyoung-il made the remarks during a meeting with the Fitch delegation including Thomas Rookmaaker, head of Asia-Pacific Sovereigns in Seoul, as the two parties wrapped up three days of annual consultations that began Tuesday.

During the meeting, Lee stressed that South Korea is likely to grow in the mid-3 percent range this year on the back of the AI and chip industries, with its growth potential also expected to rebound.

To this end, Lee emphasized the importance of turning the current economic boom into sustainable growth, noting the government is implementing a set of policy measures, including three megaprojects.

The finance minister also outlined South Korea's efforts to spread productivity gains from the AI and chip industries to other sectors and lay the groundwork for sustainable growth.

Lee additionally highlighted the government's efforts to address disparities arising from the boom in certain industries and ensure that the benefits of economic growth are shared across different sectors and regions.

The finance ministry, meanwhile, said Fitch showed keen interest in whether South Korea's economic boom could be sustained structurally beyond the current semiconductor industry's boom cycle.

Lee emphasized that South Korea could boost productivity across the economy and raise its potential growth rate despite structural challenges, including a declining and aging population, through large-scale facility investments and efforts to spread AI technologies to small and medium-sized businesses.

colin@yna.co.kr
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