President Lee Jae-myung sought advice on Korea's innovation-driven growth strategy from Peter Howitt, professor emeritus at Brown University and a 2024 Nobel laureate in economics, on Wednesday.
Meeting Howitt at the former presidential office Cheong Wa Dae, Lee said, "I heard you are the mentor of our Senior Presidential Secretary for Economic Growth Ha Jun-kyung." He added, "By raising such a capable student, you are making a great contribution to South Korea's state affairs." Lee noted that Ha "is directly overseeing South Korea's economic growth, and is likely focusing on growth through innovation, in line with the strategies you have long taught."
"Since you are here today, I kindly ask for your advice on South Korea's economic growth strategy," Lee continued. "Although it is belated, congratulations on receiving the Nobel Prize in Economics." Howitt was Ha's doctoral dissertation adviser at Brown University in 2003.
In response, Howitt said, "Under your leadership, Korea has adopted growth-oriented policies and appears to be implementing an innovation-based economic growth strategy." He praised Korea as "standing at the global forefront as an innovation nation, where artificial intelligence (AI), semiconductors, and advanced technologies lead industrial sectors."
"Korea's research and development (R&D) spending as a share of gross domestic product is the second highest in the world," he said. "Under President Lee, strengthening incentives and fiscal support for startups and small and medium-sized enterprises — the agents of creative destruction and the key drivers of economic growth — is something I view very positively." He added, "Furthermore, it is truly impressive that the benefits of growth are being extended inclusively through reasonable policies."
Howitt was particularly struck by Korea's fiscal management. "What is truly impressive is that, while pursuing all of these policies, the country is maintaining a sound fiscal stance, minimizing the fiscal deficit, and properly managing inflation targets," he said. "Even amid an unstable and uncertain global environment, Korea is achieving impressive results."
"There are not many countries in the world navigating headwinds the way Korea is. I believe this is thanks to your leadership," he said. "Through today's conversation, I want to learn how Korea has achieved such impressive results. You have my support."
Lee replied, "Thanks to your indirect guidance through Senior Secretary Ha, South Korea posted the highest growth rate in the world in the first quarter of this year," drawing laughter from those present.
