Concerns Over 0% Economic Growth Rate by 2050... KDI Discusses National Future Strategy

"30th 2nd National Future Strategy Conference" Held

The Korea Development Institute (KDI) announced on the 23rd that it will hold the "2nd National Future Strategy Conference" at the Korea Chamber of Commerce and Industry International Conference Hall on the 30th. The conference aims to discuss long-term outlooks and countermeasures amid intensifying US-China competition and increasing macroeconomic instability.

KDI divided the conference topics into three main sessions: △ External Environment and Macroeconomics △ Low-Carbon Economy △ Education and Labor.

According to KDI, South Korea's economic growth rate has declined from 9% in the 1980s to the 3% range in 2010. Due to low birth rates and aging population, the future outlook is not very optimistic. There are concerns that if the current economic conditions persist, the economic growth rate will enter the 0% range by 2050. The first session will be chaired by Professor Shin Kwan-ho of Korea University. Presentations include "Structural Changes in External Economic Conditions and Response Tasks" by Jeong Dae-hee, Head of KDI’s Macroeconomic and Financial Research Department, and "Long-term Economic Growth Rate Outlook and Implications" by Jeong Gyu-cheol, Head of KDI’s Economic Forecasting Office. An Seong-bae, Director of the International Macroeconomic and Financial Office at the Korea Institute for International Economic Policy, and Professor Shin In-seok of Chung-Ang University will participate in the designated discussion.

The low-carbon economy will also be discussed. With 2050 set as the deadline to achieve carbon neutrality, the conference will address South Korea’s low-carbon economy. Although research on new energy sources and technological innovations to improve energy efficiency are underway, it is judged that carbon neutrality will be difficult to achieve without implementation following research and development. Former Electricity Commission Chairman Kang Seung-jin will chair this session. Presentations include "Carbon Neutrality and Sustainable Growth" by Yang Yong-hyun, Head of KDI’s Regulatory Research Center, and "Challenges of Strategic Industries for Low-Carbon Electrification" by Professor Im Won-hyuk of KDI Graduate School of International Policy.

The final session will cover education and labor. Professor Kim Dae-il of Seoul National University will chair, with presentations including "Transition to AI-based Education and Challenges" by Han Seong-min, Head of KDI’s Public Investment Policy Office, "Direction of University Structural Reform" by Ko Young-sun, Head Researcher at KDI, and "Labor Market Impacts and Policy Directions of Digital Transformation" by Han Yosep, Research Fellow at KDI’s Industrial and Market Policy Research Department. KDI stated, "This will be a forum to empirically analyze the national challenges facing our economy and to explore directions for the future."