South Korea must transform itself from a “fast follower” to “a first mover” in order to achieve sustainable growth and become a global economic power, the country‘s top business group said Wednesday.
In a gathering to mark its 50th anniversary, the Federation of Korean Industries said past growth strategies of copying or benchmarking industrialized economies are no longer valid.
It stressed South Korea needs to overhaul its current economic paradigm, set up a new economic infrastructure and build its technology base, if it wants to make the next leap forward.
The lobbying group of large businesses said a paradigm shift is vital if the country wants to become the 10th largest economic powerhouse by 2030, with a per capita income of $100,000.
South Korea is currently the 15th largest economy with per capita income hovering at around $20,000.
“Now is the time for the country to create brand new markets and adopt an economic strategy for leading the world,” said Bae Sang-kun, a senior economist at the FKI.
He also pointed out that there is a need to move away from relying solely on labor and capital inputs for growth, and to focus on creating a knowledge-based economic environment.
Such an environment can help create value-added manufacturing industries and innovative service businesses.
The FKI, meanwhile, cited low birth rates, technology acquisition difficulties, social discord and emergence of new international rivals like China, for South Korea’s sluggish economic growth and a drop in overall growth potential.
After managing to pull off 6.2 percent growth in 2010, the South Korean policymakers downgraded this year’s growth rate to 4.5 percent. (Yonhap News)
