Seoul: The South Korean government has unveiled its economic policy measures for the second half of 2026, revising its growth outlook to 3 percent from the earlier projection of 2 percent. This adjustment is attributed to the robust semiconductor cycle and decreasing uncertainties related to the Middle East war.

According to Yonhap News Agency, South Korea aims to establish itself as an "irreplaceable Republic of Korea" through its 3-4-5 vision. This strategy seeks to achieve a potential growth rate of 3 percent, position the country among the world's top four exporters, and increase the gross national income per capita to US$50,000.

The government's post-Middle East war strategy focuses on maintaining macroeconomic stability, establishing a Korean-style supply chain, and achieving energy independence. Key measures include implementing coordinated macroeconomic policies, supporting housing stability, and promoting renewable energy.

To rebound growth potentials, South Korea plans to implement projects in chips, data centers, and physical AI. The country aims to foster new growth engines through innovation and strengthen regional growth bases to secure growth momentum.

Addressing structural issues is another priority, with initiatives to respond to labor market changes driven by AI, support younger generations, and aid the growth of SMEs and vulnerable groups. The government also plans to institutionalize innovation in public sectors and address population decline, while enhancing income systems for seniors and revamping regulations.