S. Korea eyes sustainable growth beyond chip-led boom: finance minister

Seoul, Nov. 5 (Yonhap) -- South Korea is striving to transform the present economic surge, propelled by artificial intelligence and the semiconductor sector, into enduring expansion, stated Finance Minister Lee Hyoung-il on Thursday during an annual dialogue with Fitch Ratings. The minister made these comments during a session with the Fitch delegation, including Thomas Rookmaaker, head of Asia-Pacific Sovereigns in Seoul, as the two entities concluded three days of annual consultations that commenced on Tuesday.

In the meeting, Lee underscored that South Korea is projected to expand in the mid-3 percent range this year, driven by the AI and chip industries, with the nation's growth potential also anticipated to recover. In response, Lee stressed the significance of converting the current economic boom into sustainable growth, highlighting that the government is pursuing a suite of policy initiatives, encompassing three megaprojects.

The finance minister also detailed South Korea's endeavors to disseminate productivity gains from the AI and chip sectors across other industries and establish the foundation for sustainable expansion. Lee further underscored the government's efforts to tackle disparities stemming from the boom in specific industries and guarantee that the advantages of economic growth are distributed across diverse sectors and regions.

The finance ministry further disclosed that Fitch expressed considerable interest in whether South Korea's economic boom could be sustained structurally beyond the present semiconductor industry's boom cycle. Lee emphasized that South Korea could elevate productivity across the economy and augment its potential growth rate, despite structural hurdles such as a shrinking and aging populace, through extensive facility investments and efforts to disseminate AI technologies to small and medium-sized enterprises.