Trend Korea's catch-up growth model has reached its limits

Summary

The government argues that Korea's past success rests on a catch-up model that no longer fits the country's position. It credits Korea with joining the ten largest economies, becoming the seventh member of the 3050 club and being the only developing country to reach advanced status. Yet it describes these gains as the record of a follower economy and says the rivals Korea must now beat are the leading advanced economies. The attached diagnosis adds that the catch-up path has hit a ceiling while China overtakes Korean technology and the AI and green transitions reshape industry. The government warns that unless the shift to a frontier-led economy is accelerated, even what has already been achieved could come under threat.