Party and Government to Promptly Establish Basic Plan for Semiconductor Enhancement to Become World’s No. 2 in Semiconductors

Fostering Strategic Industries Including Defense and K-Culture
Exploring Measures to Promote Long-Term Investment in Domestic Stocks
Pushing for Mega-Special Zone Legislation Linked to the Five Axes, Three Special Zones Strategy

On January 7, the Democratic Party of Korea and the government agreed to promptly establish the "Basic Plan for Semiconductor Enhancement" to help South Korea become the world's second-largest power in the semiconductor industry. They also discussed seeking productive measures to promote long-term investment in domestic stocks.

On this day, the party and government held the "Economic Growth Strategy Party-Government Consultation" at the National Assembly. After the meeting, Han Jungae, Policy Committee Chair of the Democratic Party of Korea, stated, "The Democratic Party requested bold and concrete growth strategies from the government to achieve a major economic leap forward," adding, "We proposed the implementation of active macroeconomic policies and sector-specific measures to boost consumption, exports, and investment for economic revitalization." The party and government also agreed that once the government finalizes this year's economic growth strategy, the party will make efforts to support related legislation. Han further explained, "The specific growth strategies will be announced through the government's economic growth strategy," and added, "Once a few supplements are made, there will be a public report to the nation."

Han Jungae, Policy Committee Chair of the Democratic Party of Korea (seventh from the left), Koo Yoonchul, Deputy Prime Minister and Minister of Economy and Finance (eighth from the left), and Kim Younghoon, Minister of Employment and Labor (ninth from the left), along with other attendees, are posing for a commemorative photo before the 2026 Economic Growth Strategy Party-Government Consultation held at the National Assembly Members' Office Building on the 7th. 2026.1.7 Photo by Kim Hyunmin

As a measure to raise the potential growth rate, the party and government decided to seek ways to foster strategic industries. Han stated, "We will promptly establish the Basic Plan for Semiconductor Enhancement in accordance with the Special Act on Semiconductors to support South Korea's rise as the world's second-largest semiconductor power," and added, "We will also prepare measures to foster the defense industry, K-culture, and new growth businesses, and will swiftly promote structural reforms in sectors such as petrochemicals and steel." She also said, "We requested the government to come up with productive measures to encourage long-term investment in domestic stocks, and the government agreed to include specific plans." Regarding consumer prices, the party and government agreed to prepare measures to stabilize prices through improvements in agriculture, such as the creation of smart farm leading districts, in addition to supply-demand management and discount support.

As regional growth measures, the party and government decided to provide full support for RE100 industrial complexes and to promote special legislation for mega-special zones linked to the "Five Axes, Three Special Zones" growth engine strategy. They also agreed to actively consider expanding the issuance of local gift certificates and launching the local vacation support program earlier than planned.

Regarding the conversion of retirement pensions into a fund system, Han stated, "Separate working-level and high-level party-government consultations are scheduled for January," and added, "It was agreed that the process would be pushed forward with a sense of urgency."

In his public remarks, Koo Yoonchul, Deputy Prime Minister and Minister of Economy and Finance, said, "The government will focus on fostering national strategic industries such as semiconductors, defense, bio, and K-culture, and will achieve an economic rebound through AX (Artificial Intelligence Transformation) and DX (Digital Transformation)." He added, "Such growth will lead to growth for all citizens, sustainable growth, and balanced regional growth, and we will make every effort to overcome polarization through a major shift in the regional paradigm."