Sources: Ministry of Economy and Finance 1-Year Report | Food & Drug Safety – Cosmetics Trade Surplus $10B | Policy Briefing – Small Business Key Money Protection
Overview
On the one-year anniversary of the Lee Jae-myung administration (May 2026), three major economic policy developments were reported through South Korea’s official government RSS feeds.
1. GDP Growth Rebounds and KOSPI Enters 7,000-Point Range
The Ministry of Economy and Finance (재경부) highlighted in its first-year performance report that South Korea’s GDP growth rate has rebounded and the KOSPI composite index entered the 7,000-point era. Two rounds of supplementary budgets supported domestic demand and investment sentiment. Sustained foreign net buying and improved corporate earnings also contributed to the market advance.
2. K-Beauty Cosmetics Trade Surplus Tops $10 Billion for First Time
South Korea’s Ministry of Food and Drug Safety announced that the country’s cosmetics trade surplus exceeded $10 billion (approximately KRW 14 trillion) in 2025 — a historic first. This made South Korea the world’s second-largest cosmetics exporter. The global spread of K-pop and K-drama has driven demand for Korean beauty products across China, the United States, Japan, Southeast Asia, and the Middle East.
3. Small Business Tenant Key Money Protection Strengthened
The government is reinforcing protections for commercial tenants’ key money (권리금) rights when building ownership changes. Under the Commercial Building Lease Protection Act, new landlords are prohibited from interfering with outgoing tenants’ right to collect key money from successors. This measure particularly benefits long-term operators — such as shop owners with 9 or more years of business — whose accumulated goodwill and investments are at risk when ownership transfers.
Policy Context
- The three issues reflect the Lee Jae-myung government’s focus on macroeconomic recovery, export diversification, and livelihood-centered small business support.
- K-beauty’s $10B milestone signals a structural shift in Korea’s export portfolio beyond semiconductors and automobiles.
- Key money protection addresses a longstanding vulnerability for self-employed operators in Korea’s commercial real estate market.