Cabinet explores S. Korea's new growth engines in televised discussion

Staying at the Presidential Office, President Lee Jae Myung chaired a Cabinet meeting today, where a two-hour discussion on South Korea's new growth engines was aired live.

Take a look.

The second of President Lee Jae Myung's Cabinet meeting discussions to be broadcast live centered on ways to boost South Korea's economic growth.

President Lee opened Tuesday's session by highlighting encouraging figures from the domestic economy.

"Industrial output, consumption, and facility investment turned upward in July. Retail sales, directly tied to people's livelihoods, saw the sharpest increase in 29 months, thanks in part to the voucher-style cash handouts.

But he also sounded the alarm over the country's weakening potential growth rate, which is already in the upper one percent range and projected to dip to the low one percent range by the end of the decade.

"We need a swift, government-wide action plan that mobilizes a proactive fiscal policy and productive finance to support technological innovation, regulatory reform, industrial restructuring, and talent development."

That said, the floor was open to the ministers to weigh in on the challenges and possible solutions.

"Our economy is under strain from a shrinking workforce, weak investment, and stagnant productivity, driving down growth potential. We've also fallen behind in AI and green transitions, while U.S. tariffs are reshaping global trade, leaving not only smaller firms but even major corporations struggling."

The finance minister noted that a significant portion of next year's 7-hundred-28 trillion-won budget will go toward artificial intelligence development.

"We'll invest in AI infrastructure to help businesses and universities expand adoption more quickly. At the same time, we'll train top-tier talent, develop a homegrown foundation model, and establish AI innovation hubs in Gwangju and Daegu cities, and Jeollabuk-do and Gyeongsangnam-do provinces."

Another focus was adapting to the changing export environment shaped by the Trump administration's sweeping tariffs.

"We should focus more on diversifying our export markets wherever possible, giving priority support to companies that develop new markets or new export items."

"For example, the Korean Wave has fueled strong demand in related sectors in the Global South. We will work to reduce dependence on the U.S. market and enable our small and mid-sized firms to expand exports in these areas."

Tuesday's discussion reflected the president's commitment to prioritize stabilizing people's livelihoods and finding new growth engines following his back-to-back trips to the U.S. and Japan.