Growth resumes after a soft patch Domestic demand should strengthen from the 2nd half of 2024 ⇓ GDP Growth (unchanged) 2.6% (July 2024) Inflation (-0.1%p) 2.5% (July 2024) The OECD's policy recommendations are in line with the Korean government's Dynamic Economy Roadmap in the direction of structural reforms [Key Recommendations] ㅇ Responding to inflation and fiscal challenges - Adopt to proposed fiscal rule and restrain spending in 2024 and 2025 in line with current plans ㅇ Leveling the playing field to boost SME productivity - Limit the scope for public aid including subsidies to companies - Remove regulatory barriers to fair competition ㅇ Achieving climate targets - Tighten the emissions trading scheme - Reform energy markets to incentivize clean electricity supply and energy savings ㅇ Responding to population decline - Improve the work-life balance - Address high housing and education costs - Tackle labor market dualism - Boost elderly employment and utilization of foreign labor