Exports, especially chip shipments, are a principal growth engine, reinforcing Korea’s shift toward a tech-led expansion.

However, policymakers warn of downside risks, including potential energy supply disruptions from Middle East tensions, renewed U.S. tariff pressures, and possible stock market volatility.

These risks encompass long-term energy volatility, tariff policy shifts, and potential market corrections that could temper gains.

A second plan for transferring public institutions will be announced in the second half, with transfers starting next year and a focus on slimming remaining institutions tied to a five-hub and three-zone strategy.

AI data centers will be designated a national strategic industry to accelerate development of domestic IT, cloud/software, and electricity technologies.

A Special Act on Mega Zones will be enacted within the year, with two wide-area regulatory free zones to be designated in August to support commercialization and R&D funding.

The article notes that concrete timing for hitting listed long-term goals was not provided.

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The government will actively pursue industry procurement and market creation by buying AI robots for research, expanding subsidies, and forming an inter-ministerial task force to cultivate early-stage robot markets.

Additional measures include grid and water infrastructure upgrades and faster permitting to support new infrastructure and the token economy goals.

South Korea raises its 2026 GDP growth forecast to 3%, underscoring a boom in semiconductor and AI-driven demand that is lifting exports, with chip shipments fueling the strongest quarterly growth in nearly six years.

For 2027, the budget aims to boost spending by at least 10% to exceed 800 trillion won, prioritizing mega projects and tapping stronger semiconductor tax revenues to finance growth.