Kim Se-jik, the director of the Korea Development Institute (KDI), spoke at a press conference on October 10, discussing the government's expansionary fiscal policy and the necessity for additional supplementary budgets. He advised caution regarding demand stimulation through monetary and interest rate policies but acknowledged the appropriateness of using the budget to alleviate hardships for vulnerable groups. His comments came amid an official announcement by President Lee Jae-myung regarding the early implementation of a supplementary budget due to the economic challenges posed by ongoing conflicts.

During the conference held in Sejong City, Kim also expressed uncertainty about the broader macroeconomic impacts of recent warfare, noting that while the ongoing conflict has amplified external uncertainties, the specific effects on the annual growth rate are not yet clear. He indicated that the severity and longevity of the war are key factors influencing economic outcomes, highlighting the need for vigilance as the situation evolves.

Kim stressed the necessity to address the fundamental issues causing stagnation in South Korea's economic growth, which has seen a decline of 1 percentage point in the long-term growth rate every five years over the last three decades, possibly leading to negative growth by 2030 if trends continue. He advocated for a transition from imitation-based to innovation-based human capital to achieve sustainable long-term growth and proposed institutional incentives for creative ideas, such as a nationwide idea registration system, to foster innovation and drive economic improvement.