**Positive Evaluation of AI Transformation and K-Content Export Expansion Policy
IMF: “Expansive Fiscal Policy Needed…Prepare for Mid- to Long-term Fiscal Risks”**
“Over the next five years, it’s the golden time for the South Korean economy.”
On the 22nd, Deputy Prime Minister and Finance Minister Koo Yoon-cheol met with the International Monetary Fund (IMF) annual consultation mission in Seoul. He explained the new government’s economic stimulus package and structural reform measures such as AI transformation, emphasizing South Korea’s determination for economic recovery.
The IMF praised South Korea’s policy efforts, stating that they will contribute to improving growth rates and export competitiveness.
Rahul Anand, head of the IMF mission to South Korea, noted, “The economic recovery in South Korea is being facilitated by a supplementary budget and a mitigating policy stance, and this positive trend is expected to continue into next year.” In particular, he positively evaluated the government’s pushing for a super innovative economy, AI transformation, and expansion of service exports like K-content, along with diversifying export markets. “This will help solidify dominance in high-tech industries and strengthen export competitiveness,” he said.
The IMF further stated, “An expansive fiscal policy is needed at this time, and the financial management direction reflected in the 2026 budget proposal is appropriate.” However, it recommended that there’s a need to manage mid- to long-term fiscal risks to prepare for the increase in mandatory expenditures due to aging.
Deputy Prime Minister Koo said, “We will mobilize all national policy capabilities to seize the opportunity for a growth rebound,” adding, “We will ensure sustainability through performance-driven financial management, not just simple fiscal expansion, and use finance as a turning point to overcome the low growth crisis.” He further added, “We will establish a virtuous cycle structure where finance promotes growth, and growth, in turn, leads to sound finance.”
Meanwhile, the results of this IMF annual consultation will be officially announced at a press conference scheduled for the morning of the 24th at the government complex in Seoul.