In the first half of 2026, Korea plans to introduce a plan to make its currency more international, in order to boost its economic stability and protect against risks that are causing instability in the foreign exchange market, as announced by the government.
By 2030, the government plans to handle and carry out 25 percent of the national treasury using digital currency, acknowledging the growing trend of decentralized cryptocurrency investment by government entities globally.
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The actions, which were announced by the Ministry of Economy and Finance along with other ministries, are a component of the 2026 economic growth plan aimed at capitalizing on the favorable progress made during President Lee Jae Myung's initial year in power.
The finance ministry has forecasted a two percent increase in gross domestic product (GDP) for 2026, which is the first time a growth target has been officially stated, compared to an estimated one percent in 2025.
However, there are still ongoing concerns about the economy in the long run, as the potential growth rate, which is the maximum sustainable pace of the economy, has decreased to one percent. This rate could potentially reach zero by 2040 due to unpredictable challenges at both domestic and global levels. These challenges include the transformation of industries driven by artificial intelligence (AI) and an increase in trade protectionism.
The president expressed optimism that the 2026 plan would act as a catalyst for significant economic growth by 2045, which marks the 100th anniversary of National Liberation Day. Koo Yun-cheol, the Deputy Prime Minister and Minister of Economy and Finance, stated that the strategy aims to make significant progress in four main areas: implementing a bold macroeconomic policy, increasing potential growth, promoting balanced growth to address growing inequality, and enhancing the groundwork for long-term development.
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During a different press briefing, First Vice Minister of Economy and Finance Lee Hyoung-il mentioned that the Korean won is deemed as undervalued, given its volatility and the constraints it faces, despite the growth of the country's economy. The plan will concentrate on lowering expenses for local companies, advocating for financial products based on the won, boosting international interest in assets denominated in won, and allowing foreign individuals and businesses to freely hold and use the won.
Lee reported that Korea is already making progress in accordance with its decision to become a member of MSCI's developed market index.
In terms of other financial endeavors, the government has pledged comprehensive assistance in overseeing and implementing 25 percent of the national budget through digital currency by the year 2030. To put into action, a test program will be introduced using digitally tokenized deposits for the electric vehicle charging infrastructure project and a legal framework will be established for full-scale blockchain-based payments and settlements, with both set to be completed in the first half of 2026.
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Preparations are currently being made for a new sovereign wealth fund with an initial funding amount of 20 trillion won ($13.79 billion), showing the government's dedication to expanding national assets. To encourage balanced regional growth, infrastructure for AX, green energy, and other promising industries will be developed in five regions outside of Seoul.