Signal Supply-side erosion: a shrinking workforce, net capital outflow and falling world market shares

Summary

On the supply side the plan groups three weaknesses under the labour, capital and productivity headings of growth accounting. For labour it cites a projected fall of four million in the working-age population between 2025 and 2035. For capital it points to a net outflow of overseas investment worth 84 billion US dollars over 2022 and 2023. For productivity it cites declining world market shares, with semiconductors slipping from 6.8 to 6.3 percent, displays from 11.3 to 7.5 percent and secondary batteries from 6.4 to 4.2 percent between 2013 and 2023. The plan reads these figures together as evidence that Korea's competitiveness is eroding.