Budget ministry discusses AI, structural challenges with German delegation

SEOUL, Sept. 15 (Yonhap) -- The South Korean budget ministry engaged in a dialogue with a German parliamentary delegation on Tuesday, sharing insights into the nation's approach to navigating AI-driven transformation and demographic shifts. Vice Budget Minister Cho Yong-beom convened with Christian Gorke, the acting chair of Germany's Finance Committee, to explore policy challenges confronting both nations, according to the Ministry of Planning and Budget.

Cho emphasized that fiscal policy must actively drive growth and alleviate economic disparities in the face of AI-fueled industrial shifts. He highlighted South Korea's efforts to tackle demographic issues, such as declining birth rates and an aging populace, and their implications for public finances. The two parties exchanged perspectives on allocating budgetary resources for optimal impact.

Cho presented key elements of South Korea's 2027 budget blueprint, underscoring the country's ambition to achieve economic expansion while maintaining fiscal prudence as the world's fourth-largest economy. In turn, Gorke underscored Germany's pursuit of equilibrium between fiscal prudence and investment in forward-looking sectors.

The meeting, according to the ministry, proved fruitful as both nations exchanged fiscal policy trajectories and experiences.