Koo Yooncheol: "The Next 5 Years Are Korea's Golden Time... AI Will Be the Future Growth Driver"

Ministry of Economy and Finance Holds 2nd Future Strategy Forum
Deputy Prime Minister Koo Yooncheol Expresses Commitment to AI Policy
"Economic Sustainability Impossible Without Growth"
Focus on 'Physical AI'... "Data and ICT Are Also Strengths"

"The next five years are the golden time for the Korean economy, so we must deliver results. If we go all in on AI and manage to create even one or two world-leading products, that will become the future growth potential of Korea."

Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol made these remarks at the 2nd Future Strategy Forum held on the 29th at the Fairmont Hotel in Yeongdeungpo-gu, Seoul. He said, "The current economic situation is at zero percent growth due to a sharp drop in consumer sentiment," and emphasized, "Although the government has recently made efforts and things are changing, without innovation-driven growth, it will not be sustainable."

The Future Strategy Forum is hosted by the Ministry of Economy and Finance and organized by the Korea Development Institute (KDI). Its purpose is to identify mid- to long-term future issues and explore related policy directions and strategies. While the first forum held in May addressed the challenge of advancing the bio industry, this forum discussed ways to secure future growth engines by integrating physical AI (AI that acts proactively like humans in real-world settings) into various industries and technological sectors.

Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol is delivering the keynote speech at the 2nd Future Strategy Forum held on the 29th at the Fairmont Hotel in Yeongdeungpo-gu, Seoul. Ministry of Economy and Finance

As the keynote speaker at the event, Deputy Prime Minister Koo said, "Since the Korean War in 1953, the Korean economy has achieved tremendous things from the ashes," but added, "I think we may have reached our limits." He also pointed out, "The potential growth rate continues to decline, and the bigger problem is that the Korean economy is not even performing up to its potential growth rate." To address this, he stated, "We need to fundamentally change our approach."

He explained, "If the growth rate reaches 1.8% next year, it will be at the level of the potential growth rate," and emphasized, "To raise this further, we need to see the seeds of a hyper-innovative economy by 2027, and only then can the growth rate surpass 2% again." He also noted, "We should leverage Korea's well-established AI infrastructure and do things properly," adding, "The key difference in policy direction now is that the focus is not on the government, but on companies."

The AI keyword the government is focusing on is 'physical AI.' He said, "While we may not be competitive in large language models (LLMs), physical AI is an area where Korea has a real chance," and emphasized, "There are still opportunities to apply AI to manufacturing, business, and real-life situations." He added, "Data and other resources are relatively better compared to competing countries, and the information and communication technology (ICT) capabilities we have accumulated so far serve as a strong foundation for the AI era."

During the forum, presentations were also made by Cho Hyuncheol, Executive Director of the E-FOREST Strategy Office at Hyundai Motor Company; Yoo Jihwan, Professor at the Korea Advanced Institute of Science and Technology (KAIST); and Lee Junho, Executive Director of the Smart Logistics & City Division at LG CNS. They shared cases of physical AI applications in various industries such as mobility, manufacturing, and logistics, as well as the necessary policy directions.

In the case of Hyundai Motor Company, they are developing technology with the goal of creating a so-called 'dark factory,' a plant that operates autonomously 24 hours a day. This is aimed at reducing manufacturing costs and increasing production flexibility. According to Executive Director Cho, it will take about three to four years before humanoid robots are introduced to manufacturing sites, and implementing a dark factory will require the application of physical AI.

Hyundai Motor Company is currently collaborating on a government-led project to develop physical AI. Executive Director Cho said, "If government-led efforts to establish data standards, funding, and datasets are carried out, it will greatly benefit not only our company but also the entire ecosystem, including component suppliers." He also called on the government to provide incentives to secure high-level AI talent.

Deputy Prime Minister and Minister of Economy and Finance Koo Yoonchul is attending the "2nd Future Strategy Forum" held at the Fairmont Hotel in Yeongdeungpo-gu, Seoul, on the 29th, engaging in a conversation with Kwon Ohhyun, the new chairman of the 7th Mid- to Long-Term Strategy Committee. Ministry of Economy and Finance

Meanwhile, prior to the forum, the Ministry of Economy and Finance held an appointment ceremony for the 7th Mid- to Long-term Strategy Committee. The committee, which was established in 2012, serves as an advisory body to the ministry and is composed of private-sector members to formulate mid- to long-term strategies for national development. The 7th committee is chaired by Kwon Ohhyun, former Chairman of Samsung Electronics. This is the first time that a private-sector entrepreneur has been appointed as chairman.

In his congratulatory remarks, Chairman Kwon said, "The global economy is becoming more difficult, and Korea is no exception," expressing concern that "although we have reached the threshold of becoming an advanced country, many companies remain stagnant and it is difficult for new industries and businesses to emerge." He also pointed out, "Due to the lack of continuity in government policies, it has been difficult for companies to set their direction," and explained, "I decided to participate as chairman to discuss the direction the industrial sector should take."