Koo Yun-cheol Sees Korea Growth Above 2% as Expansionary Fiscal Policy Takes Focus

Deputy Prime Minister and Finance Economy Minister Koo Yun-cheol said at a press briefing at the Government Complex Sejong on May 11 that South Korea’s economy is expected to grow by more than 2% this year. He said the margin above 2% will depend on trends in the semiconductor industry and developments in the Middle East war. It was the first time the government officially mentioned the possibility of raising its growth outlook for the year. In its 2026 economic growth strategy announced in January, the government projected 2% growth, but expectations rose after first-quarter growth reached 1.7%, far above the Bank of Korea’s February forecast of 0.9%. Koo said exports in January and February ranked fifth globally, while the first-quarter current-account surplus hit a record $73.8 billion. He also reaffirmed plans to use expansionary fiscal policy to lift potential growth and address polarization, alongside strong spending restructuring. Source: hankyung.com.