At an investment briefing in London for 17 global financial institutions, South Korea's Ministry of Economy & Finance presented Korea's investment case and said the government is pairing industrial policy for the artificial intelligence transition with faster foreign exchange and capital market reforms. The ministry said that since the new government took office in June 2025, the KOSPI has risen by more than 170%, the stock market's capitalization has climbed to seventh globally, and inclusion of South Korean government bonds in the World Government Bond Index in April 2026 has brought about USD 10.9 billion of new inflows by May 15. The presentation highlighted Korea's role in AI-related supply chains including memory semiconductors, high-bandwidth memory, batteries, power semiconductors and sensors, alongside reforms intended to improve access for foreign investors. These include a 24-hour foreign exchange market, an offshore KRW settlement system, simpler account opening and settlement procedures, lighter real-name verification and know-your-customer requirements, wider access to corporate and index information, amendments to the Commercial Act to strengthen corporate governance and shareholder protection, and separate taxation treatment for dividend income. The ministry also pointed to first-quarter 2026 gross domestic product growth of 1.7% quarter on quarter, exports of USD 310 billion in January to April, and a first-quarter current account surplus of USD 73.8 billion. In question-and-answer sessions, officials said the government is pursuing longer-term supply chain measures including expanding domestic production bases, stockpiles, overseas capacity and import diversification in response to Middle East-related risks. They also said Korea is strengthening power supply policy for the AI transition through a mix of nuclear and renewable generation and grid expansion, and that a war-related supplementary budget was financed from excess tax revenue without additional government bond issuance.
Ministry of Economy & Finance (South Korea)2026-05-19
South Korea's Ministry of Economy & Finance tells London investors it is accelerating foreign exchange and capital market reforms after World Government Bond Index entry brought USD 10.9 billion
The Ministry of Economy & Finance (South Korea) used a London investment briefing to promote Korea’s AI-focused industrial strategy and accelerated foreign exchange and capital market reforms, citing strong equity performance and inflows after South Korean government bonds joined the World Government Bond Index. Officials detailed measures to improve foreign investor access, strengthen corporate governance, adjust dividend tax treatment, and bolster supply chain resilience and power supply for the AI transition, while noting a war-related supplementary budget was funded from excess tax revenue without new bond issuance.