Trend Korea's potential growth rate is on a structural decline that science and AI could reverse

Summary

The plan identifies a structural decline in Korea's potential growth rate as a central challenge. It links the decline to a sharp fall in the working-age population caused by low fertility and ageing and to slowing total factor productivity. If current trends continue, potential growth is expected to fall to around zero percent in the 2040s. The plan argues, however, that the path of science, technology and AI could reverse the growth trend. It therefore calls for an urgent rebound driven by science and technology, supported by innovation in research capacity and systems.