Ministry of Economy and Finance Presents 2026 Work Report
On the afternoon of December 11, Deputy Prime Minister and Minister of Economy and Finance Koo Yooncheol announced at a work briefing held at the Government Sejong Convention Center in Sejong City that Korea will pursue the establishment of a sovereign wealth fund. He also stated that the economic growth strategy for 2026, aimed at achieving an economic growth rate of 1.8% next year, will be prepared in January. In response to demands from the business community to ease the separation of banking and commerce, he said, "We will establish special regulatory provisions for holding companies and rationalize regulations and economic criminal laws according to company size."
On this day, Deputy Prime Minister Koo reported these plans as part of the "2026 Ministry of Economy and Finance Key Work Plan" to President Lee Jaemyung. The government stated that it will benchmark overseas cases such as Singapore's Temasek and Australia's Future Fund to create a Korean-style sovereign wealth fund. President Lee commented on the plan, saying, "It is now necessary to actively pursue large-scale investments that are difficult for individual companies to handle," and asked for thorough preparation.
Regarding macroeconomic management, Deputy Prime Minister Koo explained, "We will support '1.8%+α' growth through active fiscal policy and sector-specific measures for consumption, investment, and exports, and will thoroughly manage the foreign exchange and real estate markets through a constant monitoring system." To boost the potential growth rate, the government will also initiate a major transformation focused on "Physical AI." Projects such as next-generation power semiconductors, K-Food, and K-Beauty-described as "super-innovative economic projects"-are also expected to become more visible.
Regarding the separation of banking and commerce, he reported, "To promote investment in advanced industries, we will establish special regulatory provisions for holding companies in connection with local investment, and pursue rationalization of regulations and economic criminal penalties according to company size." On investment in the United States, he stated, "We will pursue strategic global economic cooperation," adding, "We will establish a Korea-US Strategic Investment Corporation and fund, and ensure that commercially reasonable investment projects are selected." He also reported plans to create a "Strategic Export Finance Fund" to support large-scale exports and overseas orders.
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