Presidential policy chief discusses policy achievements, priorities at Korea Economic Forum

Sung Tae-yoon, the policy chief at the presidential office, encouraged other nations to seek inspiration from Korea's growth, which the World Bank called "required reading."

Sung Tae-yoon, the director of national policy at the presidential office, speaks during the 2024 Korea Economic Forum held at the Lotte Hotel in central Seoul on Thursday. [PARK SANG-MOON]

Presidential policy chief Sung Tae-yoon highlighted Korea’s innovation-led breakthrough to become a developed economy, a feat the World Bank praised as “required reading” for other nations, during the 2024 Korea Economic Forum on Thursday.

Sung put an emphasis on recent strides in the private sector, which fueled rapid growth in the first half of the year, as well as the government’s efforts to foster a “cooperative relationship” between management and labor.

“When we take on a challenge and introduce new policies, especially those aimed at implementing a fundamental change in the social and economic structure, there always have been, and will continue to be, significant risks,” said Sung, the director of national policy at the presidential office, in his keynote speech during the forum.

“However, I am certain that Korea — as well as the Yoon Suk Yeol administration — will continue to be able to turn such risks into opportunities,” said the director.

During his presentation, Sung introduced a recent report published by the World Bank, titled “World Development Report 2024: The Middle-Income Trap.”

The report, issued on Aug. 1, named Korea as “a growth superstar,” praising the country’s trajectory of steep economic development as “required reading” for other mid-sized economies.

“It is truly inspiring that the World Bank, a globally respected international organization, has praised Korea’s economic history and presented [the country’s] growth strategy as a model case for other developing nations,” said Sung.

Korea also ranked 20th in national competitiveness among 67 countries this year, according to the World Competitiveness Ranking by the International Institute for Management Development released in June. This marked the country's highest-ever position and an eight-spot jump from a year before.

Sung noted that Korea notched a significant leap in business efficiency in particular.

“The Yoon administration has been committed to establishing the rule of law regarding labor issues, and has pursued fostering a cooperative relationship between management and labor,” said the director.

“Korea traditionally experienced frequent labor disputes, which almost became annual rituals of sorts, but such occurrences have become rare under the current administration.”

Meanwhile, energy security was highlighted as one of the Yoon administration’s key policy agenda items, as a stable energy supply is fundamental to the advancement of technology development, especially in strategic sectors such as semiconductors.

The energy policy of the Yoon administration is mainly characterized by a stark shift from the previous Moon Jae-in administration’s nuclear phaseout, as the government put a renewed focus on nuclear power.

“As key indices in the nuclear sector, such as revenue, employment and investments, have been improving back to levels seen before the nuclear phaseout was implemented, we believe this will play a crucial role in enhancing Korea’s industrial competitiveness,” said Sung, adding that “we are also deeply interested in the role of nuclear plants for Korea in achieving the carbon neutrality.”

A Korean consortium was recently named the preferred bidder for a 24 trillion won ($18 billion) nuclear reactor project in the Czech Republic. The government aims to export 10 plants by 2030.

Addressing a question from British Ambassador to Korea Colin Crooks about the Yoon administration’s plan for achieving net-zero carbon emissions, Sung emphasized the importance of a balanced energy mix.

"We are heading toward the goal of carbon neutrality, but it should not be done by relying on only one energy source, so we're making efforts to achieve the right energy mix,” said Sung, adding, "I can speak with confidence that renewable energy is also part of such initiatives.”

According to the first draft of the 11th Basic Plan on Electricity Demand and Supply announced in May, nuclear energy will take up 31.8 percent of Korea’s total energy mix by 2030. The target share of renewable energy is 21.6 percent in 2030.

BY SHIN HA-NEE [shin.hanee@joongang.co.kr]