Korea Needs Innovation Finance to Avoid Middle-Income Trap, Peter Howitt Says

Peter Howitt, professor emeritus at Brown University in the United States, said in a keynote speech at the 2026 Dong-A International Finance Forum held at Lotte Hotel in Jung-gu, Seoul, on May 14 that Korea must foster creative innovation finance to avoid the “middle-income trap.” He said countries such as Korea, Taiwan and Singapore can maintain advanced-economy status through finance, adding that a nation’s financial system shows whether it can remain advanced. As advanced technologies led by AI reshape industries, he stressed the need for finance that actively supports innovative technology firms. Howitt also advised nurturing startups as a stimulus for continued innovation by major companies. Source: rss.donga.com