Korea’s exports reached USD 709.7 billion in 2025, up 3.8% year-on-year, surpassing the USD 700 billion mark for the first time. After exceeding USD 600 billion in 2018, Korea reached this new milestone just seven years later, becoming only the sixth country to do so. Semiconductor exports totaled USD 173.4 billion, driven by increased investment in AI and data centers and rising memory chip prices. Automobiles, shipbuilding and wireless communication devices, along with cosmetics and agri-food products, also set record highs. However, some forecasts suggest that exports may decline or see slower growth this year due to weakening global trade and the spread of protectionism.

The Monetary Policy Board of the Bank of Korea kept the base interest rate unchanged at 2.5% for the fifth consecutive time, citing the sharp rise in the KRW-USD exchange rate to the upper 1,400 won range. Governor Chang-yong Rhee attributed the volatility to a strong U.S. dollar and supply-demand imbalances, including increased overseas equity investment by domestic investors. Notably, language referencing potential rate cuts was removed from the policy statement, and more members expressed support for maintaining rates over the next three months. This signals that the previous easing stance has effectively come to an end.

A survey conducted by the Ministry of Climate, Energy and Environment found that more than 60% of respondents support the construction of new nuclear power plants included in the 11th Basic Plan for Long-term Electricity Supply and Demand. Support also reached 69.6% in a similar Korea Gallup survey and 61.9% in a Realmeter survey. More than 80% of respondents also said nuclear power is necessary. The government plans to increase the share of nuclear power to 35% by 2038 while reducing coal to 10%. Based on the survey results, the government is expected to announce a plan that includes the construction of two large-scale reactors soon.

The government will fully implement the Framework Act on the Development of Artificial Intelligence and the Creation of a Foundation for Trust on January 22. As the European Union, - which had earlier enacted AI regulation - has postponed parts of its implementation, Korea has become the first country to enforce a comprehensive AI regulatory framework. The law requires watermarking of AI-generated content, including videos, and it designates ten “high-impact AI” sectors, which are subject to more stringent oversight because of their close link to public safety. Violations may incur fines of up to KRW 30 million. However, in consideration of concerns over reduced industrial competitiveness, the government will allow a guidance period of at least one year before imposing penalties. The implementation of the law is expected to serve as a foundation for establishing global standards, while also highlighting the need for more refined policy measures that keep pace with rapid technological advancement.

The KOSPI index surpassed the 5,000 mark intraday for the first time, reaching an all-time high since its launch in 1980. The rally was supported by gains in U.S. markets amid easing geopolitical tensions between the United States and Europe, pushing the index to an intraday peak of 5,019.54. Following a surge of over 75% last year, the KOSPI has continued its upward momentum this year with gains approaching 17%, outperforming major global markets. In response to the strong rally, both domestic and international brokerage firms have raised their target index levels, projecting further upside.

Korea’s exports surpassed USD 700 billion for the first time last year, but the share accounted for by the top 10 companies also reached a record high of 39.0%, the highest level since records began in 2010. In the fourth quarter alone, this share rose to 43.4%, indicating that export growth has become increasingly concentrated among a small number of large corporations. While electrical and electronics exports surged on the back of the semiconductor boom, petrochemicals and textiles and apparel declined. Consumer goods exports, including automobiles, also showed sluggish performance. By region, exports to Southeast Asia and Latin America increased, while shipments to the United States and Japan declined. This suggests that concentration by product category, company, and market has intensified despite overall export growth.

Infrastructure bottlenecks caused by power supply shortages are increasingly hindering the development of AI data centers in Korea. Of 195 applications for new data center construction, only four have received final approval. Key factors include delays in expanding transmission networks in the Seoul metropolitan area and rising electricity costs. In addition, the current regulatory framework does not allow large-scale direct power purchase agreements (PPAs). This raises concerns that Korea’s AI competitiveness may fall behind that of the United States and Japan. Industry stakeholders are closely monitoring the National Assembly’s review of a proposed special act aimed at addressing supply-demand imbalances and permitting direct electricity transactions.

The Ministry of Justice has unveiled its “Future Immigration Policy Strategy 2030,” aimed at attracting high-quality foreign talent and addressing regional population decline. As part of the plan, a new “K-Core Visa” will be introduced to support the employment of vocational college graduates in regional manufacturing industries. Eligibility for the “Top-Tier Visa,” designed for highly skilled talent, will be expanded to include universities and research institutions, with a target of securing 350 individuals by 2030. A new “Skilled Agriculture and Fisheries Visa” will also be introduced to support long-term residency for experienced workers in relevant sectors. The current employment visa system, which consists of 10 categories and 39 subtypes, will be simplified into a three-tier structure based on skill level. To prevent illegal brokerage, the government plans to introduce a registration system for foreign talent recruitment agencies and establish a pre-screening system for high-risk applicants. The policy marks a shift away from reliance on low-skilled labor toward retaining mid-level technical workers trained in Korea and highly skilled science and technology professionals in regional communities.

Major Korean conglomerates, including Samsung Electronics and SK Inc., have announced large-scale treasury share cancellation plans in line with the implementation of the third revision of the Commercial Act, which effectively mandates the cancellation of treasury shares. Samsung Electronics plans to cancel KRW 16 trillion worth of treasury shares in the first half of the year, while SK Inc. will cancel KRW 4.8 trillion worth, equivalent to approximately 20% of its total outstanding shares. Companies such as KCC and LOTTE Corporation have also joined the move. The initiative is intended to enhance shareholder value; however, the business community has raised concerns that mandating the cancellation of all treasury shares, including those acquired prior to the law’s implementation, could limit their financial flexibility. They have called for supplementary measures that take into account corporate stability during the implementation process.

According to Bloomberg, the free concert scheduled for March 21 at Gwanghwamun Square is expected to generate approximately USD 177 million, or about KRW 266 billion, in economic impact for Seoul, taking into account potential spending on air travel, accommodation, food, merchandise and streaming services. Ahead of the event, nearby accommodations have been fully booked, and retailers are launching related marketing campaigns, driving a surge in demand. Experts view the concert as a potential turning point for the revival of Korea’s tourism industry, driven by K-content. The government is also considering expanding large-scale performance infrastructure, including the construction of a 50,000-seat dome stadium, to support the sustainable growth of K-pop.

The government has launched “Everyone’s Startup Project” to promote balanced regional growth and revitalize the startup ecosystem through nationwide participation. To address the concentration of startups in the capital region, more than 70% of the 5,000 selected participants will be drawn from non-metropolitan areas. The final winner will receive over KRW 1 billion in business funding. Approximately 500 successful entrepreneurs will participate as mentors, sharing their expertise. In addition, a “Challenge Experience Certificate” system will be introduced to recognize failed ventures as valuable experience and encourage second attempts. The government also plans to establish a dedicated fund worth KRW 50 billion and build an online platform to support a sustainable startup infrastructure.