Faced with the challenge of establishing scientifically-sound economic policies in the 1970s, the Korea Development Institute (KDI) was established in March 1971 by the government to provide in-depth and practical analysis for the development of appropriate economic policies in Korea. As the first social science think tank in South Korea, KDI was tasked with designing the nation's economy towards prosperity.

Starting with a team of 12 economists, KDI quickly became a driving force behind the economic and social development of the nation. Over the past five decades, the Institute has expanded its research to encompass a broad range of fields including macroeconomics, finance, social security, labor, industry, trade, competition policy, and the North Korean economy. Its tireless efforts have resulted in significant contributions to the formulation of sound policies and the implementation of institutional reforms. KDI has evolved and adapted to meet the changing needs of our time, all while maintaining its commitment to promoting co-shared progress through activities such as economic education, government-funded project evaluation, PPP support, nurturing future global leaders, and sharing the Republic of Korea's development experiences.