Economic Turnaround: South Korea's Path to Recovery

On Tuesday, South Korean President Lee Jae Myung announced significant strides in the nation's economic recovery, highlighting easing geopolitical risks and enhanced corporate governance that have propelled the Kospi index beyond 4,000.

In his annual budget address to the National Assembly, Lee underscored improved consumer sentiment and a rebound in Q3 economic growth to 1.2%, following a contraction earlier this year. He attributed this progress to decisive government actions over the past five months that addressed a severe crisis stemming from illegal martial law.

Lee outlined a proposed 2026 budget increase to 728 trillion won, focusing on bolstering sectors like artificial intelligence, cultural production, and semiconductors to drive future economic transformation.