The government reported to President Lee Jae-myung on the 11th that it will continue an expansionary fiscal stance next year, it was learned on the 12th. To stabilize the real estate market, which has a major impact on the livelihoods of low- and middle-income people, the government decided to accelerate the supply of dwellings next year.
The Ministry of Economy and Finance reported the "2026 economic growth strategy" with these details to the president at the Cabinet meeting the previous day. The president said on his Facebook page around 9 p.m. the previous day, "We will make 2026 the first year of a rebound in the potential growth rate." He added, "To that end, we intend to prepare the '2026 economic growth strategy.'"
The "economic growth strategy" appears to add medium- to long-term policies for economic structural reform to the "economic policy directions" that the Ministry of Economy and Finance (MOEF) used to announce at the start of each year. The MOEF has set policy goals to suit the year's economic conditions and has included implementation tasks to achieve them in the economic policy directions.
The "2026 economic growth strategy" consists of four tasks. ▲ Macroeconomic and livelihood stability ▲ Expansion of growth engines (technology-led growth) ▲ Overcoming polarization structures (fair growth for all) ▲ Expansion of the foundation for sustainable growth.
To ensure macroeconomic and livelihood stability, the government plans to implement an expansionary fiscal policy next year as it did this year. It also decided to accelerate the supply of dwellings to stabilize the real estate market. In addition, it plans to tame prices by improving distribution structures and promoting competition in the food industry. It will also establish a regulatory framework for stablecoins.
The government will also support the cultivation of culture-related industries such as K-semiconductors, defense, and games, food, and beauty. Petrochemicals and steel will see faster restructuring. It will also finalize follow-up measures to the U.S.-Korea trade negotiations, diversify export markets, and strengthen supply chains. The industrial focus will shift to artificial intelligence (AI), and research and development innovation will be pursued.
At the same time, policies to ease polarization will be pursued. Policies will be introduced to protect non-regular workers such as part-time staff and delivery workers and to prevent large companies from stealing small and midsize companies' technologies. In addition, it will encourage individuals' long-term investment in domestic stocks and pursue inclusion of the Korean stock market in the Morgan Stanley Capital International (MSCI) developed market index.