In 2026, South Korea launched a series of economic policies aimed at transforming the nation’s growth paradigm. President Lee Jae-myung emphasized shifting from large conglomerate-led growth to inclusive opportunities for all, fostering a startup-driven society, and boosting K-content exports. The government is focusing on capital market innovation, manufacturing AI adoption, and creative industry support. These initiatives are designed to position South Korea for a new era of economic vitality and global competitiveness.
The reforms impact a wide range of stakeholders, including individual investors, startups, manufacturing firms, and K-content creators. Key measures include the introduction of separate taxation on high-dividend income, expansion of tax deductions for venture fund investments, and increased tax credits for webtoon and video content production. Manufacturing companies will benefit from the M.AX Alliance, which aims to integrate AI into production processes, while startups gain access to expanded support centers and funding opportunities. Export-oriented businesses will also see enhanced diplomatic and administrative support.
Implementation began in early 2026, with several programs already operational. The new dividend tax structure reduces burdens for shareholders, and the annual venture fund investment deduction limit has increased. The government targets 500 AI factories by 2030, up from 102 in 2025, and has established 17 physical and one online startup support centers. K-content producers can now access new tax credits, and streamlined business registration processes for small businesses are set to launch in the second half of 2026.
Frequently asked questions include: Who benefits from the new tax policies? Individual investors, startups, and content creators are primary beneficiaries. What support is available for startups? The government offers a ‘Startup One-Stop Support Center’ network and the ‘Everyone’s Startup Project’ to nurture 5,000 new entrepreneurs. How will manufacturing change? The M.AX Alliance will help companies adopt AI, aiming for significant productivity and cost improvements. Exporters can access enhanced diplomatic support and unified help desks for overseas business challenges.
South Korea’s 2026 economic policy package demonstrates a comprehensive approach to fostering innovation and inclusive growth. By combining capital market reforms, AI-driven manufacturing upgrades, and targeted support for startups and K-content creators, the government is addressing both immediate and long-term economic challenges. The focus on streamlined processes and expanded support networks is likely to lower barriers for entrepreneurs and investors. These measures, if effectively implemented, could position South Korea as a global leader in advanced manufacturing and creative industries.