Ministry of Economy and Finance

On January 21, Deputy Prime Minister and Minister of Economy and Finance Koo Yun Cheol chaired the Ministerial Meeting on Economic Affairs at the Government Complex-Seoul. The meeting discussed the “Win-Win Growth Strategy for Large Corporations and Small and Medium-sized Enterprises (SMEs)”, “Plan to Strengthen Strategic Export Financing Support”, and “Measures to Enhance the Advanced Critical Care Capacity of Regional Leading Hospitals.”     Key messages from DPM Koo’s remarks are as follows:     [Win-Win Growth Strategy for Large Corporations and SMEs]   The government will shift from a system in which the benefits of economic diplomacy primarily flowed to large corporations, toward one that expands opportunities for SMEs to enter overseas markets and increases the supply of growth capital.   -             Offer preferential export financing limits and interest rates for joint overseas expansion projects between large corporations and SMEs; double financial support for investment projects in the United States. -             Significantly expand win-win growth financing, under which large corporations and financial institutions contribute to guarantee agencies to support their partner companies, form KRW 1 trillion to KRW 1.7 trillion.   At the same time, it will bolster institutional mechanisms to ensure that the benefits generated by large corporations are systematically passed on to SMEs.   -             Extend the performance-sharing system to cover all inter-firm transactions, including platforms and distribution, and conduct win-win growth evaluations across all public institutions (134 → 331). -             Reinforce administrative sanctions against the misappropriation of technology from SMEs and introduce fines of up to KRW 5 billion for serious violations.   Not only that, it will expand the win-win growth ecosystem, which has been centered on manufacturing, to include platforms, finance, and the defense industry.       [Plan to Strengthen Strategic Export Financing Support]   A Strategic Export Financing Fund will be launched with an aim to bolster financial support capacity for strategic exports.   -             Step up financial support not only for large-scale projects such as defense, nuclear power, and plants, but also for long-term and low-credit projects that have previously received limited support, thereby supporting the development of new markets. -             Introduce a Strategic Export Win-Win Contribution Fund to create a virtuous cycle in which the profits of beneficiary companies contribute to strengthening competitiveness across the entire ecosystem. -             Promptly push for the enactment of legislation on strategic export financing support.   [Measures to Enhance the Advanced Critical Care Capacity of Regional Leading Hospitals]   The government will swiftly upgrade the aging infrastructure of the regional leading hospitals in each of the 17 metropolitan cities and provinces, thereby boosting regional healthcare capacity.   -             Invest a total of KRW 203 billion in 2026 to expand intensive care units (ICUs) and introduce high-tech medical equipment, including robotic surgical systems, and critical care equipment. Please refer to the attached files.   

In November 2025, industrial production, services production, facilities investment and construction investment increased, while retail sales declined.   Production in the industrial sector (+0.6% m-o-m, -1.4% y-o-y), construction (+6.6%, -17.0%) and services (+0.7%, +3.0%) rose, leading to an increase in total industrial production (+0.9%, +0.3%).   Retail sales decreased (-3.3% m-o-m, +0.8% y-o-y), while facilities investment went up (+1.5%, -0.1%).   Exports in December 2025 climbed by 13.4% year-on-year, supported by strong semiconductor performance. Average daily exports rose by 8.7% in December compared to the same month of last year.   The consumer sentiment index (CSI) in December went down by 2.5 points month-on-month to 109.9. The composite business sentiment index (CBSI) increased by 1.6 points to 93.7 and the CBSI outlook for January fell by 1.7 points to 89.4.   The cyclical indicator of the coincident composite index for November moved down by 0.4 points and the cyclical indicator of the leading composite index moved up by 0.3 points.   In December, the increase in the number of employed persons moderated, with consumer prices rising at a slower pace.   The number of employed persons grew by 168,000 compared to the same month last year, and the unemployment rate rose by 0.3%p to 4.1%.   The year-on-year consumer price index (CPI) climbed by 2.3%, driven by increases in agricultural products and petroleum prices. The CPI excluding food and energy grew by 2.0% compared to the same month of last year.   In December, stock prices went up, Korean Treasury Bond yields rose and the Korean won weakened.   In December, both housing prices (+0.26%, m-o-m) and Jeonse[1] prices rose (+0.28%, m-o-m).   Recently, the Korean economy has continued to show a recovery trend, supported by improvements in domestic demand such as consumption and strong export performance led by semiconductors.   However, amid heightened month-to-month volatility – as indicators that recorded sharp increases in the third quarter have undergone some adjustment due to base effects and extended holidays – hiring difficulties in vulnerable sectors persist, and uncertainties remain regarding the pace of recovery in construction investment and the impact of U.S. tariff measures.   The global economy continues to face volatility in global financial markets and concerns over slowing trade and growth, due in part to a deteriorating trade environment following tariff measures by major economies and geopolitical uncertainties.   With an aim to broaden growth momentum going forward, the government will continue to pursue proactive macroeconomic policies and efforts to revitalize consumption, investment, and exports, while expeditiously implementing the 2026 Economic Growth Strategy to boost potential growth, promoting balanced and inclusive growth, overcoming polarization, and strengthening the foundation for a major economic leap forward. [1] lump-sum deposits with no monthly payments Key Statistics Employment   2024                                                                                                                     2025 Annual Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Number of employed  (million) 28.58 28.04 27.88 28.18 28.59 28.89 29.16 29.09 29.03 28.97 29.15 29.04 29.05 28.21 Employment rate  (%) 62.7 61.4 61.0 61.7 62.5 63.2 63.8 63.6 63.4 63.3 63.7 63.4 63.4 61.5 (Seasonally adjusted)  62.7 62.3 62.9 63.0 63.0 63.1 62.9 62.8 62.8 62.8 63.1 62.8 62.8 62.4 Consumer Price Index                                                                                          (%)   2024                                                                                                  2025 Aug Sep Oct Nov Dec Jan Feb Mar  Apr    May  Jun  Jul  Aug  Sep Oct Nov Dec y-o-y 2.0 1.6 1.3 1.5 1.9 2.2 2.0 2.1 2.1 1.9 2.2 2.1 1.7 2.1 2.4 2.4 2.3 m-o-m 0.4 0.1 0.0 -0.3 0.4 0.7 0.3 0.2 0.1 -0.1 0.0 0.2 -0.1 0.5 0.3 -0.2 0.3   Retail Sales (Percentage change from the previous period, %)   2023   2024                                               2025 Annual Q1 Q2 Q3 Q4 Annual Q1 Q2 Q3  Q4  Q1 Q2 Q3  Sep  Oct¹  Nov¹ Retail sales -1.3 -0.7 0.4 -1.3 0.8 -2.1 -2.2 -0.3 0.7 -0.4 0.4 -0.9 1.5 -0.1 3.6 -3.3 (y-o-y) - -1.4 -0.4 -2.6 -1.2 - -1.6 -3.1 -1.5  -2.0 -0.3 0.0 1.5 2.2 0.4 0.8 1. Preliminary Facility Investment Index (Percentage change from the previous period, %)   2023                                                                2024                                           2025 Annual Q1 Q2   Q3 Q4 Annual Q1 Q2 Q3 Q4      Q1      Q2      Q3     Oct¹     Nov¹ Facility investment index -4.8 -9.0 1.5 -3.8 3.5 2.9 -1.5 -1.4 10.2 -1.8 -1.7 0.0 5.7 -14.1 1.5 (y-o-y) - -1.5 -0.9 -10.5 -5.8 - -1.4 -3.3 11.5 5.3 5.7 5.3 1.9 -4.3 -0.1 1. Preliminary    Construction Completed  (Percentage change from the previous period, %)   2023                                                2024                                           2025   Annual Q1 Q2 Q3 Q4   Annual      Q1 Q2 Q3 Q4      Q1      Q2      Q3     Oct¹     Nov¹ Construction Completed (Constant) 7.8 3.4 -0.4 1.9 -4.2 -4.7 7.7 -8.2 -3.8 -5.1 -6.4 -3.2 2.7 -21.1 6.6 (y-o-y) - 12.0 9.5 10.8 0.8 - 4.0 -3.1 -9.1 -9.7 -21.2 -17.4 -11.8 -24.8 -17.0 1. Preliminary Exports and Imports  (US$ billion, y-o-y, %)   2023 2024 2025 Annual Annual          Q2          Q3         Q4       Q1       Q2         Q3       Q4      Nov      Dec          Dec Exports 632.23 683.61 171.51 173.65 175.15 61.36 159.54 175.13 184.91 190.11 61.03 69.58 (y-o-y, %) -7.5 8.1 10.1 10.5 4.2 6.6 -2.3 2.1 6.5 8.5 8.4 13.4 Average daily exports 2.34 2.53 2.58 2.53 2.56 2.67 2.49 2.63 2.59 2.86 2.71 2.90 Imports 642.59 631.77 157.04 160.00 159.92 54.88 152.79 154.26 162.44 162.18 51.30 57.40 (y-o-y, %) -12.1 -1.6 -1.4 6.2 0.9 3.3 -1.3 -1.8 1.5 1.4 1.2 4.6 Average daily imports 2.38 2.34 2.36 2.34 2.33 2.67 2.49 2.63 2.59 2.86 2.28 2.90 Industrial Production (Mining, Manufacturing, Electricity and Gas Production)                 (Percentage change from the previous period, %) 2023  2024                                              2025 Annual Q3 Q4 Annual Q1 Q2 Q3 Q4 Q1 Q2 Q3 Nov¹ Total Production2 m-o-m, q-o-q - 1.4 1.8 - -0.8 1.8 -0.5 1.5 0.2 0.0 1.6 0.6 y-o-y -2.6 -0.5 4.8 4.1 5.3 5.2 2.4 3.5 2.0 2.1 5.9 -1.4 Manufacturing Production m-o-m, q-o-q - 1.4 1.9 - -0.8 1.8 -0.8 2.1 0.1 -0.2 1.4 0.7 y-o-y -2.6 -0.3 5.2 4.2 5.8 5.3 2.2 3.7 2.0 2.3 6.0 -1.5 Shipments (m-o-m, q-o-q) - -1.3 2.0 - -2.8 1.8 -1.0 0.8 -1.7 1.3 -0.2 1.6 Inventory3 (m-o-m, q-o-q) - 1.5 -5.2 - -2.1 -0.5 0.1 -0.5 -4.5 0.0 0.8 0.6 Production capacity (y-o-y) -0.5 -0.6 1.5 0.7 1.0 0.9 0.4 0.6 0.7 1.0 1.4 0.4 Average operation ratio4 72.1 72.5 72.7 72.7 72.4 73.4 72.5 72.5 73.5 72.5 73.6 70.9   1. Preliminary   2. Mining, Manufacturing, Electricity and Gas Production   3. End-point (month, quarter, and year)   4. Average operation ratio for the month (or quarter)    Service Output            (Percentage change from the previous period, %)   2023                                                2024                                                 2025 Annual Q1 Q2 Q3 Q4  Annual  Q1 Q2 Q3 Q4 Q1 Q2 Q3 Sep     Oct¹      Nov¹ Service output 3.4 0.7 0.5 1.0 0.3 1.1  0.3 0.0      -0.3       0.7 0.3  0.7 0.9 2.0 -0.7 0.7     1. Preliminary Composite Indices of Coincident and Leading Indicators                                                                                            (Points)             2025 Jan Feb Mar Apr May Jun Jul Aug Sep¹ Oct¹ Nov¹ Cyclical indicator of coincident composite index 98.9 99.1 99.3 99.5 99.1 99.1 99.0 99.2 99.4 99.0 98.6 m-o-m (points) -0.4 0.2 0.2 0.2 -0.4 0.0 -0.1 0.2 0.2 -0.4 -0.4 Cyclical indicator of leading composite index 100.2 100.2 100.3 100.8 100.8 101.0 101.6 102.1 102.2 102.2 102.5 m-o-m (points) -0.3 -0.3 0.1 0.3 0.0 0.2 0.6 0.5 0.1 0.0 0.3 1. Preliminary   Please refer to the attached files.

On January 15, Director General for Economic Supply Chain Bureau at the Ministry of Economy and Finance, Woong-Ki SOHN, convened a joint interagency meeting to review the potential domestic impact of China’s tightened export controls on Japan, with a focus on economic security items* highly dependent on Japan.   * “Items that are highly dependent on imports from certain foreign countries or have a significant impact on the domestic economy.” (Article 2 of the Framework Act on Supply Chain Stabilization for Economic Security)   Held in response to China’s January 6 announcement of tightened export controls on dual-use items to Japan, the meeting brought together the Ministry of Trade, Industry and Resources, the Ministry of Climate, Energy and Environment, the Ministry of Food and Drug Safety, and the Defense Acquisition Program Administration to collectively review item-specific supply conditions and potential supply chain risks.   The review found no notable developments to date, as some items can be sourced from countries other than Japan or are not directly impacted by China’s export controls.   However, items for which Japan is highly dependent on Chinese raw materials were assessed to pose potential risks to domestic supply chains if export controls are prolonged, underscoring the need for close monitoring and careful supply management.   Accordingly, close coordination with relevant ministries will be maintained to continuously monitor supply and demand conditions for the relevant items, while efforts to enhance supply chain stability – including the diversification of import sources and the expansion of domestic production – will be sustained.   Director General SOHN noted that supply chains are not always readily apparent under normal circumstances but can have far-reaching impacts across industries once disruptions occur, highlighting the importance of advance checks and preparedness. He added that, building on this review, the government will proactively manage potential risks and establish a robust and comprehensive response system in close coordination with relevant ministries.   He further emphasized that, if necessary, the Supply Chain Resilience Fund will be actively utilized to provide policy financing at interest rates capped at the level of government bond yields, and that an Integrated Supply Chain Early Warning System will be launched within the year to enable the early detection of supply-demand disruptions and timely responses. Please refer to the attached files.