Bank of Korea Governor Lee Chang-yong said that the potential growth rate of the Korean economy seems to have dropped from around 5% in the early 2000s to less than 2% recently. If current trends continue, the potential growth rate is likely to fall to the 0% range by the 2040s. Lee Chang-yong said at a policy seminar jointly organized by the Bank of Korea and the Korea Monetary and Finance Association that the weakening potential for economic growth stems from insufficient investment in enterprises and lack of innovation in productivity, which is insufficient to offset the shrinking labor force caused by the rapid decline in the birth rate and aging population.

Bank of Korea Governor Lee Chang-yong said that the potential growth rate of the Korean economy seems to have dropped from around 5% in the early 2000s to less than 2% recently. If current trends continue, the potential growth rate is likely to fall to the 0% range by the 2040s. Lee Chang-yong said at a policy seminar jointly organized by the Bank of Korea and the Korea Monetary and Finance Association that the weakening potential for economic growth stems from insufficient investment in enterprises and lack of innovation in productivity, which is insufficient to offset the shrinking labor force caused by the rapid decline in the birth rate and aging population.