Ministry of Finance and Economy

1.       In January 2026, the employment rate for those aged 15 and above stood at 61.0%, unchanged from a year earlier. The employment rate for those aged 15 to 64 rose by 0.4%p year-on-year to 69.2%. The labor force participation rate increased by 0.2%p from a year earlier to 63.6%, while the unemployment rate rose by 0.4%p year-on-year to 4.1%.   * Employment Indicators for January (2025 → 2026, %):     Employment rate 61.0 → 61.0             Labor force participation rate 63.4 → 63.6              Unemployment rate 3.7 → 4.1   By age group, the employment rate increased for those in their 30s (80.5%, +0.5%p), 40s (80.0%, +1.2%p), and 50s (77.5%, +1.0%p), while it declined among those aged 60 and over (41.8%, -0.5%p), and youth (43.6%, -1.2%p).   Both the labor force participation rate and the employment rate for those aged 15 and older marked the highest levels ever recorded for the month of January. The employment rate for those aged 15 to 64 also reached a record high for January.   2.       The number of employed persons went up by 10 8,000 year-on-year, marking 13 consecutive months of six-figure increases. However, the pace of increase slowed compared to the annual increase in 2025 (193,000) and December (168,000).   * Growth/decline in the number of employed persons (year-on-year, ten thousand):   (Jan, 2025) +13.5  (Jul) +17.1  (Aug) +16.6  (Sep) +31.2  (Oct) +19.3  (Nov) +22.5  (Dec) +16.8  (Jan, 2026) +10.8   By industry, employment growth in the services sector moderated, as temporary factors overlapped, including base effects from the previously solid pace of increases, cold weather conditions, and holiday-related calendar effect.   By employment status, the number of regular workers (+195,000 → +192,000) and daily workers (+25,000 → +26,000) rose, while the decline in temporary workers (-7,000→ -97,000) widened.   3.       The youth employment rate continued to fall and the number of economically inactive population (those not in employment or seeking work) climbed from a year earlier.   * Inactive Youth (y-o-y, ten thousand):   (Jan, 2025) 3.0  (Aug) -1.4  (Sep) -3.4  (Oct) -0.9  (Nov) 0.7  (Dec) 0.0  (Jan, 2026) 3.5 4.       The government will continue to strengthen the virtuous cycle between growth and employment so that the expanding recovery momentum translates into quality jobs, while stepping up efforts to support vulnerable segments of the labor market, including youth and regional areas.   The government will swiftly implement the key job-related initiatives under the 2026 Economic Growth Strategy. At the same time, it will formulate tailored measures that take into account the characteristics of job-seeking and inactive youth, including efforts to enhance employability, provide work experience opportunities, and offer recovery support.   Efforts will be made to boost job creation capacity by bolstering the competitiveness of key industries and supporting future growth drivers, including the KRW 30 trillion National Growth Fund and the flagship projects of the Hyper-Innovation Economy. Industrial conditions and employment challenges across regions will also be continuously monitored.   In addition, domestic and external risk factors, including those related to trade, financial markets, and prices, will be closely monitored, and every effort will be made to ensure a timely and thorough response. Please refer to the attached files.   

Statistics Korea released report on the 'Economically active population survey' on 11 February, 2026. The economically active population marked 29.197 million persons in January, which grew 236 thousand persons or 0.8% year-on-year. Please refer to the attached PDF.

On February 10, Deputy Prime Minister and Minister of Finance and Economy Koo Yun Cheol convened the 263rd Ministerial Meeting on International Economic Affairs at the Government Complex-Seoul. At the meeting, participants deliberated on and approved a plan to establish a temporary implementation framework for the execution of the Korea-U.S. Strategic Investment MOU, and were briefed on Export-Import Bank of Korea’s key implementation strategy for 2026 to promote “productive finance.”   Key messages from DPM Koo’s remarks are as follows:    [Formation of a Special Committee for the Special Act on Korea-U.S. Strategic Investments]   A resolution to establish a special committee to handle the Special Act on the Management of Korea-U.S. Strategic Investments was passed at the National Assembly on February 9.   The government will make every effort to cooperate fully throughout the legislative review process to ensure the swift passage of the bill.   [Launch of a Temporary Implementation Framework for the Korea-U.S. Strategic Investment MOU]   However, even if the special act is passed, it will take an additional approximately three months before it can be implemented, as preparations such as the enactment of subordinate legislation will be required.   While the bill is proceeding through the normal legislative process in accordance with domestic law, any unnecessary misunderstandings between Korea and the U.S. or any erosion of mutual trust during the implementation of the MOU would not be desirable from the perspective of national interest.   Accordingly, the government seeks to build a framework that would allow for preliminary reviews of candidate projects proposed by both sides, within the scope of what is administratively feasible, until the special act is enacted and implemented.   ➊First, the Ministerial Meeting on International Economic Affairs will serve as the temporary control tower, in place of the Operating Committee of the Corporation (Fund) stipulated under the special bill. ➋A Strategic Investment MOU Implementation Committee, comprising the Minister of Industry, vice ministers of relevant ministries, and officials from related institutions, will be operated on a temporary basis.   In addition, with an aim to conduct in-depth reviews of the commercial viability and other aspects of candidate projects proposed by both the U.S. and Korean sides, the government will establish and operate a Preliminary Project Review Panel, composed of experts with the highest level of expertise and experience, under the Strategic Investment MOU Implementation Committee.   As noted earlier, since this procedure involves preliminary reviews conducted within the scope of what is administratively feasible prior to the enactment of the legislation, final investment decisions and the execution of investments will be pursued only after the passage and implementation of the special act, taking into comprehensive consideration of factors such as the project’s commercial viability and financial conditions, including the foreign exchange market.   [Korea Eximbank’s key implementation strategy for 2026 to promote “productive finance”]   In 2026, the Export-Import Bank of Korea seeks to contribute to overcoming low growth and addressing Korea’s polarization by promoting “productive finance.”   (1) The Bank will actively provide KRW 22 trillion in support over the next five years for the AI industry, through a range of instruments including loans, guarantees, equity investments, and AI transformation (AX) consulting, to contribute to the realization of a hyper-innovation economy.   (2) As a member of “Team Korea,” Korea Eximbank will provide KRW 100 trillion in support over the next five years for mega-scale strategic overseas project orders in sectors such as nuclear power, defense, and infrastructure, thereby ensuring steadfast backing for exports and overseas contract awards.   (3) As part of efforts to overcome trade-related crises, the Bank will provide KRW 150 trillion in financing over the next five years, including sector-specific tailored financing under the “Export Vitality ON” financial support package.   (4) Lastly, in order to facilitate balanced regional development, the Bank will drive “inclusive” growth by concentrating at least 35% of its total lending on companies located in regional areas.   [Closing Remarks: Strengthening Korea-U.S. Communication]   The government will continue to strengthen communication with the U.S., including by fully explaining to the U.S. side the efforts undertaken by both the government and the National Assembly to implement the bilateral agreement.   Also, all-out efforts will be made to conduct thorough preparations and rigorous preliminary reviews to make sure that investment projects in the U.S. create mutually beneficial outcomes for both Korea and the U.S., while positioning the Korean economy and businesses to take the lead in global value chains amid the rapidly evolving international trade environment. Please refer to the attached files.