[Editorial] Go Beyond the Semiconductor Mirage: Enhance the Quality of Growth

The government has raised this year's economic growth forecast from 2.0% to 3.0%, while unveiling its "3·4·5 Vision," which aims to become one of the world’s top four exporting nations and achieve a per capita national income of $50,000. However, behind this optimism lies a shadow: the government has actually lowered its employment forecast. In other words, the government itself has acknowledged the reality of "jobless growth."

Advanced industries such as semiconductors are driving increases in productivity and exports, but their impact on job creation remains limited. In addition, artificial intelligence (AI) is rapidly replacing jobs, especially among the youth, and as discussions around extending the retirement age accelerate, entry and mobility within the labor market are likely to become even more difficult. The so-called "semiconductor illusion," in which a boom in semiconductors appears to boost the entire economy’s vitality, must not obscure the underlying risks. If the benefits of growth become concentrated in certain sectors and classes without spreading across the broader economy, the structural polarization will only worsen.

This is why it is crucial to move beyond a semiconductor-centered growth strategy and find structural solutions to enhance the competitiveness of the entire economy. Above all, reform of the labor market structure can no longer be delayed. Sustainable growth cannot be expected if inflexible employment systems, a dual labor market, and barriers to labor mobility across industries are left in place while simply expanding investment in advanced industries. Policies must be implemented to enable a smooth workforce transition to new industries and create an environment where companies can generate new jobs, while also carrying out measures to mitigate polarization and ensure that the fruits of growth concentrated in certain industries can widely spread.

A potential growth rate of 3% is an ambitious but attainable goal. However, unless the quality of growth improves, the vibrancy of Korea’s economy could diminish as soon as the semiconductor boom ends. The government’s challenge cannot end with merely raising growth rate numbers. The key is to create a structure where more citizens can feel economic development through jobs and income—that is the condition for sustainable growth.

This content was produced with the assistance of AI translation services.