Why Korea’s 2% growth target for 2026 matters less than reform and execution
A growth rate of 2 percent rarely sounds ambitious. For South Korea in 2026, however, it is being cast as a turning point.
On Friday, the Lee Jae Myung administration framed this year as the first year of an economic reset, anchoring its case to a headline expansion target of 2 percent. After a bruising 2025 marked by weak domestic demand, political disruption and global uncertainty, the pivot is deliberate. Fiscal restraint has given way to an activist industrial posture, backed by looser budgets and a more confident tone.
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