2026 Economy Growth Strategy

As the KOSPI hovers around the 5,000 mark, attention is shifting to the KOSDAQ, which has seen relatively less of an increase. Last year, while the KOSPI posted a steep rise fueled by expectations for artificial intelligence (AI) and a semiconductor cycle recovery, the KOSDAQ index experienced heightened volatility but limited upward momentum. Market watchers believe the KOSDAQ index will ride an upward trend this year, backed by the government’s commitment to support the market. Although uncertainty surrounding U.S. tariffs may pose a short-term burden, analysts expect the overall upward trend to remain intact. According to the Korea Exchange on January 27, the previous day the KOSDAQ index closed at 1,064.41, up 70.48 points (7.09%). During the session, a sharp rise in the KOSDAQ 150 futures triggered a sidecar (a temporary suspension of program buy orders). This marks the first time in about four years, since January 5, 2022, that the KOSDAQ index has closed above the 1,000 mark. Th

The government is introducing, for the first time, a tentative scheme called the “Housing Buyback Guarantee Program,” which guarantees buyers the right to resell their homes at a predetermined price in order to resolve the issue of unsold housing units in non-metropolitan areas. The government will raise the price threshold for the special tax rule on single-home ownership applied to one unsold, completed unit from 600 million won to 700 million won, extend tax incentives for population-declining areas, and continue support for Corporate Restructuring Real Estate Investment Companies (CR-REITs). On the supply side, the government plans to break ground on 50,000 housing units this year, including 18,000 units in the third-generation new towns. These measures were included in the government’s real estate market stabilization plan, announced on the 9th as part of the “2026 Economic Growth Strategy” unveiled jointly by the relevant ministries. The government has prepared supply-focused mea

The government is accelerating the institutionalization of digital assets, including the establishment of a regulatory framework for stablecoins. Through the enactment of the Digital Asset Basic Act (the second phase of virtual asset legislation), a comprehensive regulatory structure will be created to cover the issuance, distribution, and trading of digital assets. In addition, the government plans to introduce spot exchange-traded funds (ETFs) for digital assets. On the afternoon of January 9, the Ministry of Economy and Finance, the Financial Services Commission, and other relevant agencies announced through the "2026 Economic Growth Strategy" that they will institutionalize digital assets, including the establishment of a stablecoin regulatory framework. The proposed legislation, commonly referred to as the Digital Asset Basic Act, is considering the establishment of a regulatory system centered on stablecoins. While the first phase of legislation focused on regulating unfair tradi

This year, the government has decided to provide 30 trillion won in support for advanced strategic industries such as artificial intelligence (AI) and semiconductors through the National Growth Fund. In addition, a 600 billion won National Growth Fund will be created, allowing citizens to directly invest in advanced industries. According to the "2026 Economic Growth Strategy" released by the government on January 9, the government plans to execute 30 trillion won this year from the National Growth Fund, which is being established with a total size of 150 trillion won to promote productive finance. Of the 30 trillion won, 6 trillion won will be invested in AI, 4.2 trillion won in semiconductors, 1.6 trillion won in secondary batteries, 2.3 trillion won in bio, 3.1 trillion won in mobility, 500 billion won in displays, and 600 billion won in hydrogen fuel cells. The support methods include 3 trillion won in direct investment, 7 trillion won in indirect investment, 10 trillion won in infr

The government will provide support for the National Growth Fund worth 4.2 trillion won to achieve its goal of making Korea one of the world’s top two semiconductor powerhouses. The plan is to elevate Korea’s semiconductor competitiveness beyond its current dominance in memory chips, expanding into all areas including system semiconductors, packaging, materials, components, equipment, talent development, and regional ecosystems. On January 9, the Ministry of Economy and Finance announced the “2026 Economic Growth Strategy,” which includes these initiatives. The government aims to foster “semiconductors plus alpha” strategic industries as a driving force to rebound the country’s potential growth rate. In the era of artificial intelligence (AI) and global competition for technological supremacy, the government will establish a super-large semiconductor cluster and expand the fabless (semiconductor design) industry to ten times its current scale, thereby restructuring the entire ecosystem

Going forward, various subsidies and vouchers provided by the government will be issued in the form of digital currency. Regulatory measures for cross-border transfers and transactions of stablecoins are also set to be established this year, in line with trends in major countries. The Ministry of Economy and Finance announced on January 9 that its '2026 Economic Growth Strategy' includes plans for the use of digital currency and the modernization of treasury management. The government aims to support the execution of one-quarter of treasury funds using digital currency by 2030. First, by the first half of this year, a pilot application of deposit tokens (bank deposits issued in the form of digital tokens) will be introduced in the electric vehicle charging infrastructure project to generate real-world use cases. When eligible charging stations are purchased and installed, deposit tokens that can be converted to cash will be provided, aiming to prevent fraudulent claims and shorten the

Industrial complexes that supply renewable energy to meet the power needs of tenant companies through RE100 (100% renewable energy use) will begin to be established in earnest this year. Startups located within RE100 industrial complexes are set to receive the highest level of fiscal and tax support among all industrial complexes, including full exemptions from income tax and corporate tax for 10 years. In an effort to strengthen industrial safety management, tax incentives for investments in safety equipment will also continue. As advanced safety technologies such as artificial intelligence (AI) and robotics are designated as new growth and original technologies, the R&D tax deduction rate will be expanded from a maximum of 25% to up to 40%. Tax Support for RE100 Industrial Complexes... Regional Tax Differentiation Planned The Ministry of Finance and Economy announced several measures for region-led growth in its "2026 Economic Growth Strategy" released on January 9. First, the e

The Lee Jaemyung administration has raised its economic growth target for the second year in office from 1.8%?set five months ago?to 2.0%. This aims to double last year's projected growth rate of 1.0%. The revision reflects expectations of a recovery in construction investment and strong export growth led by semiconductors. The government plans to support the rise of the semiconductor industry to the world's second-largest and foster new growth sectors such as defense and K-culture, aiming for economic performance that surpasses the potential growth rate estimated by the OECD at 1.8%. However, some point out that the rebound to 2% growth is largely an optical illusion created by the global semiconductor boom, and that the key challenge is to strengthen the overall industrial fundamentals of traditional export sectors, which continue to experience negative growth. On January 9, Deputy Prime Minister and Minister of Economy and Finance Koo Yoon-chul announced the "2026 Economic Growth S

The government will open the foreign exchange market 24 hours a day starting in July, launching efforts to internationalize the Korean won. By establishing an offshore won settlement system and revising related regulations, the government aims to accelerate Korea's inclusion in the Morgan Stanley Capital International (MSCI) Developed Markets Index?a long-standing aspiration for the Korean stock market and a key campaign pledge of President Lee Jaemyung. On the afternoon of January 9, the Ministry of Economy and Finance, the Financial Services Commission, and other relevant agencies unveiled the "2026 Economic Growth Strategy" and, alongside it, announced a comprehensive "Roadmap for Foreign Exchange and Capital Market Reforms for MSCI Developed Markets Index Inclusion." The MSCI Developed Markets Index is highly significant, as it serves as a benchmark for asset allocation by global institutional investors, pension funds, and passive funds. Despite the size of its stock market and th

The Lee Jaemyung administration, which has emphasized productive finance, will introduce the "Productive Finance Individual Savings Account (ISA)" to encourage long-term investment in the stock market. In addition to the "Youth ISA" targeting young people with incomes below a certain threshold, the government will also launch the "National Growth ISA," which offers significantly expanded tax benefits compared to the existing ISA, which provides a 2 million won tax exemption. On the afternoon of January 9, the Ministry of Economy and Finance, the Financial Services Commission, and other relevant ministries released the "2026 Economic Growth Strategy," which includes these measures. Under the banner of productive finance, the government aims to fundamentally transform capital flows and expand global demand by increasing support for advanced industries and promoting long-term domestic stock investment. Launch of the National Growth Fund... 30 Trillion Won This YearFirst, the government wi