Korea will unveil a roadmap to internationalize its currency in the first half of 2026, aiming to strengthen economic resilience against external risks that increasingly destabilize the foreign exchange market, the government said Friday. These measures, jointly announced by the Ministry of Economy and Finance and other ministries, are part of the 2026 economic growth strategy designed to build on the positive momentum from President Lee Jae Myung’s first year in office. The finance ministry projected 2 percent gross domestic product (GDP) growth in 2026, marking the first time it has formally specified a growth target, up from an estimated 1 percent in 2025. But long-term economic concerns persist, as the potential growth rate — the economy’s maximum sustainable pace — has slowed to 1 percent and could approach zero by 2040 amid unpredictable domestic and global challenges, such as artificial intelligence (AI)-driven industrial transformation and rising trade protectionism. The president expressed hope that the 2026 strategy would serve as a catalyst for a major economic leap by 2045, the 100th anniversary of National Liberation Day. “We must strengthen policy efforts so that the fruits of growth achieved through a great leap forward are shared by everyone, allowing all citizens to grow alongside the nation,” he said at a presidential briefing on the strategy at Cheong Wa Dae. Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol noted that the strategy is “designed to achieve a major breakthrough” in four key areas: aggressive macroeconomic policy, a rebound in potential growth, balanced growth to curb deepening polarization and strengthening the foundation for long-term transformation. Regarding the local currency, First Vice Minister of Economy and Finance Lee Hyoung-il said in a separate press conference that the Korean won is "still undervalued as a volatile and heavily constrained currency despite expansion of the country’s economy." He said a task force will be set up to prepare a roadmap in the first half of the year, adding that the won “should be used more broadly in both cross-border trade and financial transactions.” The roadmap will focus on reducing costs for domestic businesses, promoting won-based financial products, increasing foreign demand for won-denominated assets and enabling foreign individuals and companies to hold and use the won freely. Progress is already being made in line with Korea’s step to join MSCI’s developed market index, according to Lee. “Accordingly, Korea can shift away from its dollar-dependent structure, which is vulnerable to external conditions, to build a more resilient economy,” he said. As for other financial initiatives, the government promised full-fledged support to manage and execute one-fourth of the national treasury using digital currency by 2030. For implementation, it will launch a pilot program using digitally tokenized deposits for the electric vehicle charging infrastructure project and establish legal grounds for full-scale blockchain-based payments and settlements, both scheduled for the first half of 2026. (ICE SEOUL)

Fonte notizia: The Korea Times