President Lee: "Expecting 2% Growth Above Potential Rate This Year...K-Shaped Recovery a Major Challenge"

National Report on Economic Growth Strategy
Lee: "K-Shaped Growth a Major Challenge"
Calls for Greater Efforts on Youth Employment

President Lee Jae-myung listens to remarks from participants at the National Report Meeting on Economic Growth Strategy held at the Blue House on the 9th. Photo by Yonhap News

On January 9, President Lee Jae-myung stated, "We are expecting economic growth of around 2% this year, slightly exceeding the potential growth rate." However, he cautioned against uneven growth resulting from so-called "K-shaped growth," which differs from past patterns.

President Lee made these remarks during the "2026 National Report Meeting on Economic Growth Strategy" held at the Blue House on this day. He explained, "This year marks the first year in which the Lee Jae-myung administration is fully accountable for economic management," adding, "Fortunately, last year we were able to revive the struggling livelihood economy and prepare for full-fledged growth."

He further elaborated, "In particular, policies to foster strategic industries such as semiconductors and to normalize financial markets will further strengthen the advantages of our economy and drive a new leap forward."

However, President Lee warned, "We are now facing the significant challenge of so-called K-shaped growth, which is different from the past." K-shaped growth refers to polarization during economic recovery, where one side grows rapidly while the other stagnates or declines.

President Lee pointed out, "If we look only at the external indicators, our economy is clearly improving, but there is a high possibility that the majority of our people will not feel this change." He emphasized, "Above all, the unevenness and polarization of growth that emerge in this process should be regarded not simply as a cyclical difference, but as a structural question posed by the economic system that must be taken seriously."

Lee: "The Shadow of K-Shaped Growth Falls on Youth...A Threat to the Future"

President Lee continued, "Most importantly, the reality that the shadow of K-shaped growth is concentrated on the youth who bear the future is not just a youth issue, but also threatens the long-term future growth engine of the Korean economy." He criticized, "If national growth and corporate profits do not translate into jobs and opportunities for young people, it is difficult to call that society healthy."

President Lee also expressed concern, saying, "More than 400,000 young people who have been pushed out of the labor market are being asked by companies for work experience, yet no one is taking responsibility for providing that starting point." He added, "I am worried that the next generation may despair of the current situation and let go of hope."

In this regard, President Lee stressed, "We must recognize the reality faced by our youth, who are driven to the edge of an employment cliff, as a national crisis, and prepare extraordinary measures by mobilizing all of the nation's capabilities." He instructed, "The government should fundamentally reassess whether current policies are sufficient, and respond swiftly with policy imagination unconstrained by existing frameworks to devise effective solutions."

At this report meeting, President Lee received a direct briefing on next year's economic growth strategy from the Ministry of Economy and Finance, with Blue House aides and ministers and vice ministers from each ministry in attendance. The strategy included the government's assessment of the current economic situation, forecasts for economic growth rate, and consumer price inflation. Four major areas, 15 key tasks, and 50 detailed action plans were also shared. The meeting was attended by representatives of leading small and medium-sized enterprises, including Rebellion, Korea's first artificial intelligence (AI) unicorn, as well as distribution companies such as Samyang Foods and CJ Olive Young.