Koo Yun-cheol, South Korea’s Deputy Prime Minister and Minister of Economy and Finance, highlighted AI’s potential to enhance the nation’s economy. During a speech at the APEC Finance and Structural Reform Ministers’ Meeting on October 22, Koo suggested that AI could raise economic productivity by 3.2% and boost the country’s GDP by 12.6%. He called AI development the “sole breakthrough” for the future of the Korean economy.
This speech marked the first joint session of APEC’s finance and structural reform ministers, focusing on the theme of “Innovation and Digitalization.” Koo stressed that AI’s integration into the economy would be a transformative force and key to South Korea’s future prosperity.
Koo shared insights from an interaction with ChatGPT, asking how APEC member countries should handle AI and digital transformation. The AI suggested that each nation should strengthen its institutional and policy frameworks, invest in human resources, and promote infrastructure. Additionally, it recommended that APEC countries align their policies and work together to ensure the safety of digital technologies.
He also referenced a Bank of Korea report from February, which found that AI could mitigate the economic slowdown caused by demographic shifts. In line with an April IMF report, Koo noted that AI could raise global GDP by 4%, with countries better equipped in AI, infrastructure, and data access reaping the greatest rewards.
The Deputy Prime Minister introduced South Korea’s ambitious strategy to drive AI adoption across various sectors. He mentioned major “Physical AI” projects, including AI robots and vehicles, supported by research, deregulation, and financial initiatives. Koo emphasized the importance of nationwide AI education to ensure all citizens could utilize AI as easily as the Korean writing system, Hangeul.