This report identifies the origin of current slow-growth of Korean economy to be“wageless growth”and“paradox of corporate thrift”, new phenomena which have emerged since 2008. The“wageless growth”refers to the fact that Korea’s real wage has not increased at all while labor productivity has increased quite steadily for the last 6 years. It is the first experience in Korea’s modern economic history to witness such a stagnant real wage growth for so long. The“paradox of corporate thrift” refers to excessive corporate saving which has accumulated so much vigorously as to absorb household incomes and thus discourage dynamic recovery of domestic demand. Since the onset of the global financial crisis, Korea’s income distribution mechanism has been set to be unduly favorable to business activities at the cost of labor income. These phenomena are structural and cannot be remedied by any cyclical policy measures. In order to escape from the current slow-growth trap, Korean economy has to correct the bias in income di tribution mechanism: real wage needs to increase along with real labor productivity and corporate firms need to focus on more investment and/or more employment instead of building up on already excessive corporate savings.