[Lee Jaemyung Administration 1 Year] "Growth Rate at 3.6%, KOSPI Surpasses 7,000... Economic Recovery in Full Swing"

Highlighting Improvements in Growth, Employment, and Stock Market
Simultaneous Job Increases Nationwide and in Non-Capital Regions

On the first anniversary of the inauguration of the Lee Jaemyung administration, the government has highlighted key economic achievements including economic recovery and accelerated growth, stabilization of consumer prices, and the elevation of Korea’s global economic status. The government stated that, despite complex internal and external crises such as the imposition of martial law and the Middle East war, its “pragmatic approach” led to rapid improvements in key economic indicators, including a surge in the KOSPI index past the 7,000 mark, as well as gains in growth, employment, and price stability.

Lee Hyung-il, First Vice Minister of the Ministry of Economy and Finance, is holding a joint briefing with related ministries on regulatory improvement measures to resolve supply chain bottlenecks for emergency economic response at the Government Seoul Office in Jongno-gu, Seoul on April 3, 2026. Photo by Jo Yongjun

Economic Rebound and Recovery of Growth Momentum

Lee Hyung-il, First Vice Minister of the Ministry of Economy and Finance, presented the “Key Economic Achievements of the First Anniversary of the People's Sovereignty Government” at a cabinet meeting held at the Blue House on the 20th. The government announced that the economic growth rate for the first quarter of this year was 3.6% year-on-year and 1.7% quarter-on-quarter. According to the Ministry of Economy and Finance, this quarter-on-quarter growth rate is the highest among major OECD member countries for which data has been released to date. The ministry added that, while growth had slumped to just 0.3% in the first half of last year due to the shock of martial law, it rebounded to 1.7% in the second half, and the recovery trend has become even more pronounced this year.

The tax revenue outlook has also shown signs of improvement. National tax revenue, which had declined by 5.18 trillion won in 2023, decreased by only 760 billion won last year, and is expected to increase by 3.74 trillion won this year and by 4.15 trillion won next year. The government assessed that the recovery in growth, improved corporate performance, and a rebound in domestic demand are forming a virtuous cycle leading to increased tax revenue.

Expansion of Employment and Enhanced Global Standing in Exports and Stock Market

The government emphasized that employment expanded both nationwide and in non-metropolitan regions. In the 10 months before the inauguration, nationwide employment increased by 139,000 and by 36,000 in non-metropolitan areas; in the 10 months after the inauguration, these figures rose to 186,000 and 166,000, respectively. The government stated that this is the first time under any administration that both nationwide and non-metropolitan employment have increased simultaneously.

Major institutions at home and abroad have also been raising their economic growth forecasts for Korea. The Korea Development Institute (KDI) raised its growth forecast for this year from 1.9% to 2.5%, while the average forecast from eight global investment banks increased from 2.1% to 2.6%.

The government also assessed that Korea’s global economic standing has risen. As of January to March this year, Korea’s export volume climbed from 8th to 5th in the world, and the current account surplus reached a record 73.8 billion dollars during the same period. The government explained that this figure is close to 60% of last year’s annual current account surplus.

The KOSPI index surpassed the 7,000 mark, and the market capitalization ranking of the stock market jumped from 13th to 8th in the world. The government noted that since being included in the World Government Bond Index (WGBI), net purchases of Korean government bonds by foreigners have increased, positively impacting the stability of the bond and foreign exchange markets. Net foreign purchases of Korean government bonds rose from a monthly average of 4.3 trillion won in 2023 to 8.8 trillion won in April this year.

The government explained that the maintenance of national credit ratings by international credit agencies is also a sign of positive evaluation of the Korean economy. Fitch maintained its AA- rating, Moody’s maintained Aa2, and Standard & Poor’s (S&P) maintained AA, all with a “stable” outlook.

Stabilization of Consumer Prices and Reduced Food Prices

The government also cited the stabilization of consumer prices as a major achievement. It explained that by implementing the highest petroleum price cap in 29 years alongside a fuel tax reduction policy, the consumer price inflation rate was 0.6 percentage points lower in March and 1.2 percentage points lower in April than it would have been without the policy.

Additionally, the government stated it implemented price stabilization measures for consumer staples such as school uniforms, maintenance fees, private education fees, and telecommunications charges, through the Special Task Force on Consumer Price Stabilization. The government explained that, as a result of market regulation and price stabilization policies, processed food prices also declined. The price of cooking oil fell by 6.7% year-on-year, flour by 4.6%, and sugar by 4.4%.

The government emphasized that, despite the rise in international oil prices due to the Middle East war and global inflationary pressures, Korea's consumer price inflation rate has remained in the 2% range. In April this year, Korea’s consumer price inflation rate was 2.6%, lower than the United States (3.8%), the United Kingdom (3.4%), and Germany (2.9%). The government stated, “We will continue to pursue a principle of pragmatism and performance, driving a major economic transformation to raise potential growth and ensure that the fruits of growth are shared with the people.”

This content was produced with the assistance of AI translation services.