South Korea's Ministry of Economy and Finance published a Cabinet meeting readout reviewing the administration's first-year economic results. The update highlighted gross domestic product growth of 3.6 percent year on year and 1.7 percent quarter on quarter in the first quarter of 2026, alongside stronger corporate earnings, domestic demand, tax receipts and job creation, including in non-capital regions. It also noted that KDI and the average forecast of eight global investment banks had raised their 2026 growth projections to 2.5 percent and 2.6 percent respectively. On external and market indicators, the ministry said South Korea's exports ranking rose from eighth in the first quarter of 2025 to fifth in the first quarter of 2026, while the current account surplus reached a record USD 73.8 billion in the first quarter of 2026. It also pointed to the KOSPI moving above 7000, lifting market capitalisation from 13th to eighth globally, and said inclusion in the World Government Bond Index from 1 April 2026 was followed by foreign net purchases of Korean Treasury bonds rising to KRW 8.8 trillion in April on a settlement basis, versus a KRW 4.3 trillion monthly average in 2023. On prices, the ministry said an oil price ceiling and fuel tax cuts reduced headline inflation by 0.6 percentage points in March and 1.2 percentage points in April relative to a no-measure scenario, with April consumer inflation at 2.6 percent.
Ministry of Economy & Finance (South Korea)2026-05-20
South Korea Ministry of Economy and Finance reviews first year economic performance with 3.6 percent first quarter growth and KOSPI above 7000
South Korea’s Ministry of Economy and Finance reported first-quarter 2026 GDP growth of 3.6 percent year on year and 1.7 percent quarter on quarter, supported by stronger corporate earnings, domestic demand, tax receipts and job creation. It cited an improved external position, with South Korea’s export ranking rising to fifth, a record current account surplus of USD 73.8 billion, KOSPI surpassing 7000 and increased foreign purchases of Korean Treasury bonds after inclusion in the World Government Bond Index. The ministry said an oil price ceiling and fuel tax cuts helped keep April consumer inflation at 2.6 percent.