South Korea's potential growth rate for the foreseeable future could significantly decline because of a shrinking workforce caused by a rapidly aging population, the Bank of Korea chief warned Friday.
At a forum with business executives on the southern resort island of Jeju, BOK Gov. Lee Ju-yeol called for deregulations and a search for new growth engines to mitigate the impact of the aging population.
The BOK expects South Korea's potential growth rate to stay at 2.8 or 2.9 percent between 2016 and 2020.
The Organization for Economic Cooperation and Development predicted that South Korea's potential growth rate may fall to 2.2 percent in 2030 and 1.4 percent in 2050.
"The rapidly aging population is posing risks that can cause sharp declines in the potential growth rate," Lee told the meeting, according to the BOK.
Lee also urged the government to take steps to stabilize the property market, do more to tame the rapid growth of household debts and narrow the income gap. (Yonhap)