KDI macro researcher Kim Mi-ru warned Korea’s potential growth rate could fall
into the 0% range by the 2040s if the multi-decade decline is not reversed,
citing slower technological innovation and weakening productivity. Kwon
Nam-hoon, head of the Korea Institute for Industrial Economics and Trade, said
industrial production and exports have decelerated since 2010; between 2011 and
2025 exports outside semiconductors and autos showed virtually no growth, and
capacity utilisation in petrochemicals, steel and batteries has declined in
recent years. He said industrial competitiveness outside semiconductors has
stagnated or begun to deteriorate, with the semiconductor boom masking broader
sectoral weakness.
