(LEAD) APEC finance chiefs discuss structural reform amid global shifts

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By Kim Han-joo

INCHEON, Oct. 22 (Yonhap) -- Finance chiefs from Asia-Pacific Economic Cooperation (APEC) member economies discussed directions for structural reform Wednesday, in response to a rapidly changing global environment driven by advances in artificial intelligence (AI) and demographic shifts, Seoul's finance ministry said.

The discussion took place during a joint session on the second day of the APEC Finance Ministers' Meeting, held in the western port city of Incheon. Finance ministers or minister-level officials from the 21 APEC member nations gathered here from Tuesday for the three-day conference under the theme of "Building a Sustainable Tomorrow," ahead of the official APEC summit.

Wednesday's session was part of the APEC Structural Reform Ministerial Meeting, held jointly with the finance ministers' meeting for the first time. The structural reform meeting also marked its first in-person session in 10 years and its first overall since 2021.

During the session, participating officials explored strategies for structural reform aimed at addressing the challenges posed by increased global uncertainty, technological advancement in sectors such as AI, and demographic transformation.

"In an era of major global transition, marked by slow economic growth, rapid technological development and demographic shifts, the role of structural reform is more important than ever," South Korean Finance Minister Koo Yun-cheol was quoted by the ministry as saying.

Earlier in the day, in his opening remarks, Koo outlined his vision to promote prosperity across APEC member economies through innovation centered on AI.

"Through today's joint session, I look forward to exchanging views on policy directions and exploring APEC's cooperative pathways for AI and digital transformation," Koo said. "Together, we can harness AI innovation to drive prosperity across APEC."

Koo also expressed optimism that next year's APEC Economic Policy Report will offer concrete directions for cooperation aimed at building a secure AI ecosystem and narrowing the digital divide.

The report is the APEC economic committee's flagship annual publication, analyzing structural reforms across APEC economies. The 2026 edition is titled "Structural Reform and AI-Driven Digital Transformation."

He further outlined his belief that AI is the only breakthrough for the South Korean economy, saying that Seoul "is pursuing a comprehensive AI transformation across the private sector, the public sector and all citizens."

The plan is part of the Lee Jae Myung administration's five-year economic development blueprint, unveiled earlier this year, which emphasizes integrating AI across the private and public sectors to build what it describes as a "super-innovation economy."

"According to a recent domestic study, AI adoption could increase (South) Korea's productivity by 1.1 to 3.2 percent and its GDP by 4.2 to 12.6 percent, which could help significantly offset the impact of demographic headwinds on economic growth," Koo said.

This week's meeting is the final ministerial session before the APEC summit scheduled for Oct. 31 to Nov. 1 in Gyeongju in the country's southeast.

khj@yna.co.kr
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