IMF: "Korean Economy Recovering... High Praise for AI Transformation and Structural Reform Efforts"

The International Monetary Fund (IMF) Korea Mission has projected that the Korean economy is on a recovery path, with this positive trend expected to continue into next year. The mission also highly praised the new government's structural reform efforts, such as the AI transformation and the ultra-innovation economy, stating that these initiatives will strengthen the competitiveness of advanced industries and help expand the country's export base.

According to the Ministry of Economy and Finance on September 23, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol held a meeting with the IMF mission. The mission, led by Rahul Anand, explained the results of its two-week annual consultation, which took place in Korea from September 11 to September 24. The IMF assessed the Korean economy, stating, "Thanks to expansionary policy measures such as the supplementary budget and the resolution of domestic uncertainties, the Korean economy is showing signs of recovery."

The IMF also mentioned that the expansion of K-content exports and policies to diversify export markets will further bolster Korea's external competitiveness. Furthermore, the IMF acknowledged the need for expansionary fiscal policy at this time and evaluated the fiscal management direction reflected in the 2026 budget proposal as appropriate. However, the IMF recommended that Korea needs to manage medium- to long-term fiscal risks in preparation for increased mandatory spending due to an aging population.

Deputy Prime Minister Koo agreed with the IMF's assessment, stating, "We will make the next five years a golden time for the Korean economy and create an opportunity for a rebound in growth." He added, "We will use fiscal policy as a turning point to overcome the low-growth crisis and establish a virtuous cycle between growth and fiscal soundness." The IMF Korea Mission is scheduled to officially announce the results of this annual consultation at a press conference at the Seoul Government Complex on the morning of September 24.