Bank of Korea Governor Lee Ju-yeol has warned against the quickly aging Korean society, saying it is a risk factor that could significantly lower the country’s growth potential in the future.
 
Lee issued the warning in a speech at a CEO forum arranged by the Korean Standard Association in Jeju on Friday, adding that the country is losing momentum for further growth and its potential growth is weakening.
 
Lee said the potential growth could also be eroded by the slowing growth of labor productivity, declining efficiency in distribution of resources as a result of economic inequality, and the slowing accumulation of capital.
 
The central bank recently forecast South Korea’s potential annual growth rate between 2016 and 2020 will be between two-point-eight percent and two-point-nine percent.
 
The Organization for Economic and Cooperation Development(OECD) is projecting the country’s potential growth rate will drop to two-point-two percent by 2030 and one-point-four percent by 2050.