South Korea's Big Plans for Economic Growth

Sovereign Wealth Fund in the Works

South Korea is planning to establish a sovereign wealth fund by the first half of next year, similar to those in Singapore and Australia. This fund will manage state-owned properties worth 1,300 trillion won, aiming to expand public housing and support key industries like AI and renewable energy.

Export and Overseas Business Support

A special fund is being set up to support exports and overseas business deals. This initiative is part of a broader strategy to become a global leader in physical AI, including robots and smart cars. The government targets at least 1.8% economic growth through proactive fiscal policies, boosting consumption, investment, and exports.

Easing Regulations for Holding Companies

The finance ministry is considering easing regulations for holding companies, providing more flexibility for advanced industries that require significant investments, such as semiconductors. Additionally, there are plans to restructure fiscal and tax policies to better allocate assets and encourage capital flow into productive sectors.

Investment in the U.S. Under Bilateral Tariff Deal

South Korea is planning to invest heavily in the U.S. under a bilateral tariff deal. A strategic investment corporation and a special fund will be established to select commercially rational projects. A special law will be legislated to monitor the impact on the Korean economy and the foreign exchange market.

New Committee on Economic Security

A new committee on economic security will be set up to address supply chain disruptions. This move underscores South Korea's commitment to securing its economic future and ensuring stability amid global challenges.