Deputy Prime Minister Gu Yun-cheol "All-in on AI and the ultra-innovation economy… will push KOSPI past 5000" [KIW 2025]

Deputy Prime Minister and Minister of Economy and Finance Gu Yun-cheol

In his KIW keynote speech: "Strengthen economic fundamentals... KOSPI 5000 and beyond"

"The government will no longer ask 'Can we do it?'. We will simply do it. We will go all in on artificial intelligence (AI) and the 30 major ultra-innovation projects to push the KOSPI past 5000."

Deputy Prime Minister and Minister of Economy and Finance Gu Yun-cheol said this on the 15th during his keynote speech at 'Korea Investment Week (KIW) 2025' held at the Conrad Hotel in Yeouido, Seoul. Domestic and foreign asset management officials, analysts, and corporate representatives attended the event.

Gu said that "the new government will boldly implement its economic growth strategy." He said, "Korea is the only country that rapidly moved from a poor country to an advanced country, but recently the economy's fundamental strength, namely potential growth rate, has been trending downward," adding, "The fact that the potential growth rate was [negative] in Q2 last year and Q1 this year, even without any clear external crisis factors, is evidence that we cannot continue as we are."

He continued, "From now on, the government will select ultra-innovative technology items as if a company were devising a growth strategy, and will devote all efforts to implementing these items," adding, "We will mobilize national capabilities including fiscal support, tax support, manpower support, and regulatory easing." He repeatedly emphasized that "this is a time that requires the resolve of do-or-die, that it's not about 'we can' but 'we must'."

"All-out on AI transformation and the 30 leading ultra-innovation projects"

That day Gu emphasized the government's previously announced 30 leading projects. He said, "We will drive an AI transformation by combining AI with fields such as robotics, automobiles, ships, home appliances, factories, and semiconductors," adding, "Ministries in charge and related ministries will collaborate centered on companies, and the Ministry of Economy and Finance will support them." He added that "a task force will be formed to provide comprehensive concentrated support," and said, "Korea has excellent data and tacit knowledge, so it can especially succeed in AI transformation."

He also said, "We will attach AI to public services such as welfare and tax administration," adding, "Even drug approvals that used to take many years will have AI attached to drastically shorten the period, enabling world-class outcomes."

He also highlighted 15 ultra-innovation tasks: advanced materials and parts such as silicon carbide (SiC) power semiconductors, liquefied natural gas (LNG) cargo tanks, superconductors, graphene, and special carbon steel; solar power and next-generation power grids, offshore wind power, green hydrogen and small modular reactors (SMR), smart agriculture, smart fisheries, K-beauty, K-content, and K-food. Gu said, "If we develop these items, they could be deployed regionally in terms of balanced regional development," adding, "Having visited many regions earlier, I saw places where (industrial promotion) could work."

The government also plans to increase support for this. Gu said, "In the past, when technology and industry promotion policies were announced, budgets were not directly allocated, but now budgets will be injected immediately on a per-project basis," adding, "Research that previously received funding on the order of hundreds of millions will now receive tens of hundreds of millions." He added, "Major research and development (R&D) projects will also be exempt from preliminary feasibility studies (Yeta)," noting, "The Yeta process alone takes 2–3 years, so we want to shorten that and move straight to technology development."

He said, "We also abolished the project-based system (PBS) of government-funded research institutes," adding, "To restore the research ecosystem, the government will fully cover personnel costs at government-funded research institutes."

Gu said, "The government is certainly different from the past," adding, "We will succeed in each task with a mindset of simply doing it." He pledged, "If these tasks succeed, the economy's fundamentals will improve and we can head straight to KOSPI 5000 and beyond."

Government withdraws plan to tighten major shareholder threshold… KOSPI index breaks 3400

Gu's remarks that day were the first comments related to the domestic stock market since the government announced it would maintain the major shareholder threshold subject to stock transfer tax at the current level of 5 billion won.

Before the event, Gu attended a ruling-party-government meeting on Chuseok livelihood stabilization measures held at the National Assembly, where he announced the decision to maintain the major shareholder threshold. This contrasts with the tax reform plan previously proposed by the Ministry of Economy and Finance, which sought to strengthen the per-stock major shareholder holding threshold from the existing 5 billion won to 1 billion won.

Individual investors and the financial investment industry had opposed tightening the major shareholder threshold. They argued that if investors subject to the major shareholder requirement sell off holdings en masse at year-end to avoid capital gains tax, stock prices would plunge and ordinary investors would also suffer.

Gu said at the National Assembly, "We comprehensively considered the public's desire to revitalize the capital market and the Democratic Party's position that maintaining the major shareholder threshold is necessary," adding, "There was much deliberation between tax normalization and the need to vitalize the capital market."

That afternoon, during trading the KOSPI index surpassed 3400 to reach 3413.21, marking a record high for the fourth trading day.

Reporter Seon Han-gyeol always@hankyung.com