South Korea has officially unveiled its aggressive financial strategy for 2026, aiming to solidify its position as a global technology powerhouse. The government plans to inject a massive 252 trillion won in policy finance, marking a 2 percent increase from the previous year. This strategic move is designed to revitalize the economy and secure a competitive edge in critical future industries.
The 60 Percent Rule: Targeting Five Key Sectors
The core of this initiative is the targeted allocation of funds. Approximately 60 percent of the total budget, amounting to 150 trillion won, is dedicated to five major priority areas. This concentration reflects a clear "selection and focus" strategy to maximize impact.
The breakdown of this 150 trillion won investment is as follows:
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Advanced Strategic Industries (42.5 trillion won): This is the largest slice of the pie, targeting the semiconductor, display, and secondary battery sectors. The goal is to maintain the "super-gap" in technologies where Korea already leads.
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Promising Future Industries (24.7 trillion won): Funding here is directed toward emerging fields such as Artificial Intelligence and robotics, planting seeds for the next generation of growth engines.
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Upgrading Existing Industries (32.2 trillion won): This allocation supports the modernization of traditional manufacturing sectors like shipbuilding and automotive, helping them transition toward digitalization and eco-friendly practices.
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Unicorn, Venture, and SME Support (19 trillion won): To foster a dynamic business ecosystem, significant funds will support startups and small-to-medium enterprises aiming to scale up.
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Corporate Crisis Support (31.8 trillion won): Recognizing global uncertainties, this safety net provides liquidity to companies facing difficulties due to worsening external economic conditions.
