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). This year is envisioned as the ‘first year of economic leap forward.’
On the 9th, the government unveiled the ‘2026 Economic Growth Strategy,’ focusing on four main areas: active macroeconomic management, potential growth rate rebound, balanced national growth, and strengthening the foundation for a great leap forward. President Lee Jae-myung presided over the national report meeting on the economic growth strategy at the Blue House.
To capture the momentum of economic rebound, the government has allocated a budget of 727.9 trillion won, an 8.1% increase from the previous year. Measures to boost domestic demand include extending the reduction of individual consumption tax on automobiles and providing subsidies for electric vehicle conversion. In the export sector, financial and fiscal support such as trade insurance will be expanded, and the scale of exchange rate fluctuation insurance will be increased for small and medium-sized enterprises vulnerable to exchange rate risks.
To rebound the potential growth rate and enhance national competitiveness, the government aims to become the world’s second-largest in semiconductors, fourth in defense, and third in AI. In the semiconductor sector, the goal is to grow both manufacturing and fabless structures together to achieve the world’s second-largest position. The defense industry aims to enter the top four defense powerhouses through export expansion and strengthening the industrial ecosystem.