Deputy Prime Minister and Minister of Economy and Finance Choi Sang-mok, second from left, holds a press briefing to announce the "Dynamic Korea Roadmap" which outlines comprehensive, long-term policy goals and objectives for the second half of this year, at Government Complex Seoul, Wednesday. Yonhap

Korea aims to attract 150,000 professional workers from abroad by 2035, more than doubling the number from 72,000 in 2023, seeking to enhance productivity amid a shrinking working-age population, according to the government, Wednesday.

Asia's fourth-largest economy also aims to establish the world's most extensive network of free trade agreements (FTAs) by 2027. This strategy is intended to create a resilient international business network amid intensified global competition for strategic materials and fragile supply chains.

These plans are part of the "Dynamic Korea Roadmap," a comprehensive set of long-term policy goals jointly announced by the Ministry of Economy and Finance and relevant ministries, Wednesday, to address Korea's weakening growth momentum.

These plans are being implemented as Korea's annual gross domestic product (GDP) growth rate is anticipated to decline to the 1 percent range in the coming years, and potentially below 1 percent after 2035. Despite this projection, the finance ministry has revised up this year's growth outlook to 2.6 percent from 2.2 percent.

"Korea is struggling with a sharp fall in the potential growth rate, after achieving unrivaled economic expansion with the 'Miracle on the Han River,'" First Vice Finance Minister Kim Byoung-hwan said in a preliminary press briefing.

The "Miracle on the Han River" refers to Korea's rapid economic development after the Korean War.

He emphasized that a comprehensive structural reform is crucial to establish "a virtuous cycle of economic growth and social mobility." He added that such reforms would enhance the quality of life and ensure long-term economic sustainability.

"In that regard, I believe the roadmap will be serve as a guideline for us to counter structural problems, as well as a starting point for fundamental economic reforms."

The government considers it essential to attract 150,000 skilled foreign workers, recognizing that Korea lags far behind other major economies in effectively utilizing professional labor from overseas.

For example, during 2012 to 2023, the number of skilled foreign workers in Korea increased from 50,000 to 72,000. In contrast, Japan experienced a significant rise from 124,000 to 480,000 skilled foreign workers over the same timeframe.

To enhance labor productivity, the government is also focused on cultivating new service industries and making substantial investments in artificial intelligence, quantum technologies, and biotechnology.

Regarding FTAs, the combined GDP of Korea's free trade partners accounts for 85 percent of the world's total GDP, making it the second-highest in the world after Singapore's 87 percent.

"And the country plans to clinch more FTAs to claim the No. 1 spot by 2027," the finance ministry explained.

The government will also aim to establish an Asia-Pacific business hub in Seoul's Yongsan International Business District, comparable to those in Singapore and Hong Kong.

Detailed plans for the Asia-Pacific business hub will be finalized in the second half of this year, with the construction of relevant infrastructure slated for completion by 2028.

To foster a more business-friendly environment, the government aims to reduce corporate taxes by 5 percent, based on the increased shareholder returns compared to the average amount over the previous three years.

The government is considering eliminating additional taxation for the largest shareholders of large firms, which is currently imposed when transferring stocks to their family members.

The roadmap also encompasses measures to address challenges related to the declining population, such as the risk of extinction faced by rural areas, a widening wealth gap, and intense competition for university admissions.

The government aims to raise the labor participation rate of the working-age population, aged 15 to 64, above the OECD average of 73.7 percent by 2035, up from 71.1 percent in 2023.

The scattered campuses of the University of California (UC) in the United States are being considered as a potential model. This approach aims to decentralize universities in Seoul and promote balanced regional development.

To bolster international competitiveness in higher education, the government aims to increase the number of universities ranked among the world's top 100 to 10 by 2035, up from one in 2024.

To promote work-life balance, the government is considering increasing the number of public holidays that are observed with alternative holidays when they fall on weekends. This initiative aims to maintain a consistent number of days off for workers throughout the year.

The government also announced smaller policy objectives for the second half of this year.

A large portion of those policies were focused on salvaging cash-strapped small business owners, including a 25 trillion won ($18 billion) financial package, extending loan repayment deadlines by five years, lowering business maintenance costs and vitalizing tourism in rural areas.