South Korean PM outlines 2026 focus on strategic industries and peninsula peace

South Korean Prime Minister Kim Min-seok stated on Friday that the government's focus for 2026 will be on fostering strategic industries, protecting lives from disasters, and promoting peace on the Korean Peninsula. He outlined these priorities during a ceremony marking the new year's first day of work at the government complex in Sejong, emphasizing pursuit under three key goals: an open government, one that listens to field voices, and a nation confident on the international stage.

On January 2, 2026, during a ceremony marking the new year's first day of work at the government complex in Sejong, Prime Minister Kim Min-seok outlined the South Korean government's priorities for the year. He emphasized fostering strategic industries, protecting people's lives from disasters, and promoting peace on the Korean Peninsula.

As the first priority, Kim vowed to exert utmost efforts into nurturing future strategic industries, listing artificial intelligence, bio, contents and culture, defense, and energy—abbreviated as 'ABCDE.' This focus aims to drive economic growth amid global competition.

The second priority centers on placing the value of respect for life at the heart of state affairs. He cited plans to bolster the government's responsibility in safeguarding lives from industrial disasters, suicides, wildfires, and other preventable deaths.

For the third, the prime minister pledged unwavering efforts for peace. "Since immediately after its launch, the Lee Jae Myung government has taken preemptive measures to reduce consuming conflicts, such as those involving trash balloons and loudspeakers," he said, referencing North Korea's 2024 trash-carrying balloon launches into South Korea and the two sides' cross-border loudspeaker propaganda broadcasts. "Our government will continue to leave open the possibility of dialogue and build a Korean Peninsula of peaceful coexistence and prosperity," he added.

These remarks symbolize the steady start of the Lee Jae Myung administration, signaling responses to domestic and international challenges through tension reduction and economic innovation to ensure public stability.

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President Lee Jae-myung delivers New Year address envisioning balanced growth and national leap for 2026.
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President Lee calls for balanced growth in new year address

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President Lee Jae Myung outlined his vision for a national leap in 2026 during his New Year address, emphasizing balanced regional development and symbiotic growth between large conglomerates and small and medium-sized enterprises. He pledged to make 2026 the 'first year of Korea’s great national leap,' ensuring broad-based growth that benefits all citizens. Lee also began the year by paying tribute to fallen soldiers and independence fighters at Seoul National Cemetery.

Seven months into his presidency, South Korean President Lee Jae-myung is set to refocus on delivering tangible results in diplomacy and the economy ahead of local elections. While the political situation has stabilized, challenges remain with a sluggish economy and dim prospects for North Korean dialogue.

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The Pentagon's 2026 National Defense Strategy emphasizes South Korea's leading role in Korean Peninsula security, which the defense ministry welcomed. Foreign Minister Cho Hyun discussed with a US official the need to acquire nuclear-powered submarines to enhance deterrence and the alliance. This aligns with President Trump's 'America First' policy, pushing for stronger self-reliant defense in South Korea.

South Korea's leading business lobbies called for aggressive investments in artificial intelligence (AI) to secure global competitiveness in 2026. Chey Tae-won, chairman of the Korea Chamber of Commerce and Industry (KCCI), emphasized building swift investment capabilities in AI and green sectors amid challenges like low growth and geopolitical uncertainties. Other groups highlighted the need for eased regulations and stronger public-private cooperation.

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Amid stalled inter-Korean relations despite the Lee Jae-myung government's outreach to Pyongyang, Unification Minister Chung Dong-young expressed hope that U.S. President Donald Trump's anticipated April 2026 visit to China could thaw the deadlock and spur peace efforts. He described the coming four months as a critical juncture and plans to engage neighboring countries closely. Chung pledged to make 2026 the year of peaceful coexistence on the Korean Peninsula.

Asia-Pacific Economic Cooperation (APEC) leaders adopted the Gyeongju Declaration at the 2025 summit, recognizing cultural and creative industries as a growth driver for the first time. The declaration reaffirmed the importance of trade and investment cooperation but omitted references to the World Trade Organization (WTO)-centered multilateral trade system, drawing attention. South Korea's initiatives on AI and demographic changes were highlighted.

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The ruling Democratic Party of Korea and the government pledged on January 7 to maintain a proactive fiscal policy this year to prop up private consumption and revive the economy. Finance Minister Koo Yun-cheol said the focus will be on supporting people's livelihoods and the self-employed through measures to boost total demand.

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