The government has announced a super budget of 727.9 trillion won this year to achieve an economic growth rate of 2.0% and to become a global powerhouse in key strategic industries such as semiconductors, defense, and artificial intelligence (AI). The plan is to make this year the ‘first year of economic leap’.
On the 9th, the government announced the ‘2026 Economic Growth Strategy’. This strategy focuses on four main areas: active macroeconomic management, rebound in potential growth rate, balanced national growth, and strengthening the foundation for a leap forward. President Lee Jae-myung presided over the national report meeting on economic growth strategy at the Blue House.
To boost the economy, the government has allocated a budget of 727.9 trillion won, an increase of 8.1% from the previous year. Measures to stimulate domestic demand include extending the reduction of individual consumption tax on cars and providing subsidies for electric vehicle conversion. The supply of facility investment funds to companies will be expanded. In the export sector, trade insurance and financial support will be increased, and small and medium-sized enterprises vulnerable to exchange rate fluctuations will be supported.
To rebound the potential growth rate, the government aims to become a global powerhouse in semiconductors, defense, and AI. A special committee to strengthen semiconductor industry competitiveness will be established, and the defense industry will be promoted to enter the top four defense countries through export expansion and ecosystem enhancement. In the AI sector, a national AI computing center will be built, and AI utilization will be expanded across industries such as manufacturing, logistics, and agriculture.