Dong-A International Forum:
What Should We Do in the Era of Technological Innovation?

• What Should We Do in the Era of Technological Innovation? 
• Building a Flexible Social System to Respond to the AI Technological Revolution

  On May 30, President Cho Dong-chul delivered a keynote speech at the Dong-A International Forum hosted by Dong-A Ilbo, discussing the measures our economy should take in the era of AI-driven innovation. The theme of this forum was "The Era of AI Innovation and the Future of Korean Finance," and President Cho emphasized the necessity of creating a flexible social system capable of adapting to rapid technological changes.
  
  The impact of technological changes on our society is uncertain. A long-term perspective is required, and pessimistic predictions dominate the long-term economic outlook for Korea. Among the three factors of economic growth, labor and capital are challenging to improve due to population decline and the consequent reduction in economic scale. Therefore, the only remaining solution is to increase Total Factor Productivity (TFP). To enhance productivity, it is essential to reallocate personnel and resources appropriately and develop new technologies to improve production efficiency.
  
  President Cho stated, “The development of new technologies is the domain of businesses, but creating an environment conducive to such development is the government's responsibility.” He further mentioned that the government’s role is to create a flexible economic environment that can actively embrace new technologies. He expressed concern that the public sentiment of guarding against competitive new enterprises and the excessive regulation policies are hindrances to economic development. He pointed out that most of the top 100 unicorn businesses cannot freely operate domestically, and that excessive regulation only darkens our economic prospects.
  
   

• Protecting People, Not Businesses. 
• An Economy that Actively Embraces New Technologies Will Prevail

  President Cho emphasized that “What we need to protect are people, not businesses.” He argued that competitive companies should be encouraged to survive and provide high-quality products and services to consumers at lower prices. While managing the social conflicts arising from this process is also the government's role, he stressed that ultimately, an economy that actively embraces new technologies will prevail. Additionally, he highlighted the need for educational reform focused on teaching the technologies and knowledge that society demands and enhancing flexibility in the labor market in terms of time, wages, and employment.

Written by:
Bojeon Kim, Research Associate at the President Office,  044-550-4003, kbj@kdi.re.kr