South Korea’s Economy Looks Up: President Lee Says “We’ve Turned the Corner”

Advanced | November 12, 2025

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South Korea Economy Rebound: A Fresh Start

On November 4, 2025, Lee Jae‑myung, President of South Korea, delivered his annual budget speech to parliament and declared that the country’s economy has “turned a corner.” He pointed to softening risks from geopolitics and corporate governance issues—changes that helped push the KOSPI index above the 4,000 mark. This moment, he said, signaled a true South Korea economy rebound after years of sluggish growth. (Reuters)

What’s Driving the Improvement?

South Korea’s economy grew by 1.2% in the third quarter of 2025, up from a contraction earlier in the year. President Lee credited this rebound to improving consumer sentiment, strong exports despite U.S. tariff concerns, and a government “extra” budget of more than US $20 billion that included cash handouts and supported retail and restaurant spending. These measures helped stabilize domestic demand and encouraged investors who had been cautious earlier in the year. Analysts describe this as a clear South Korea economy rebound, driven by both policy and renewed consumer confidence.

What’s Next: Ambitious Plans for 2026

Lee outlined that for 2026, the government budget will be 728 trillion won (about US $512 billion), an 8.1% increase from the current year. The new budget aims to accelerate investment in key industries such as artificial intelligence, entertainment content, shipbuilding, and semiconductors, signaling a shift toward economic transformation rather than mere recovery. Analysts say this forward-looking approach could position South Korea as a leader in the next generation of global tech and manufacturing innovation. (MarketScreener)

Why This Matters for Business English Learners

For business professionals, this story highlights how a government can pivot from crisis mode to growth mode using a mix of policy, stimulus, and strategic investment. It serves as a reminder that macroeconomic signals—like GDP growth, export strength, and consumer sentiment—are vital indicators for global business. It also shows how leadership communication can shape investor confidence and influence both domestic and international markets.

Vocabulary

Rebound (verb) – to bounce back after a decline.
- Example: “The economy rebounded by 1.2% in Q3.”
Sentiment (noun) – the general feeling or attitude of a group.
- Example: “Consumer sentiment is improving.”
Extra budget (noun) – a supplementary budget outside the regular one.
- Example: “The government passed an extra budget of more than US $20 billion.”
Turn the corner (phrase) – to pass a difficult stage and begin to improve.
- Example: “The president said the economy has turned the corner.”
Transformation (noun) – a major change in form or structure.
- Example: “The government aims for economic transformation.”
Exports (noun) – goods and services sold abroad.
- Example: “Strong exports helped the economy.”
Tariff (noun) – a tax on imported or exported goods.
- Example: “U.S. tariff concerns remain for Korean exports.”
Domestic demand (noun) – demand for goods and services within a country.
- Example: “Domestic demand was underpinned by cash handouts.”
Stimulus (noun) – policy actions taken to boost economic activity.
- Example: “The extra budget included stimulus for restaurants and retail.”
Corporate governance (noun) – the system of rules by which companies are directed and controlled.
- Example: “Easing risks in corporate governance helped improve investor confidence.”

Discussion Questions (About the Article)

What does President Lee mean by the economy having “turned a corner”?
How did the extra budget and cash handouts help boost the economy?
Which sectors has the Korean government identified for future investment, and why might that matter?
Why is the rebound in exports significant for South Korea’s business environment?
How might improving consumer sentiment affect business strategies in Korea?

Discussion Questions (About the Topic)

In your view, what role should government stimulus play in supporting economic recovery?
How reliable is a single quarter’s growth rate (1.2% in Q3) as a signal of lasting recovery?
What are the risks of focusing investment on high-tech sectors like AI and semiconductors?
How might companies operating in South Korea respond to this message of economic turnaround?
Thinking globally, how do you see geopolitical and tariff risks affecting export-dependent economies?

Related Idiom

“Turn the corner” – This idiom means to move past a difficult period and start improving.
Example: “After the crisis, the economy seems to have turned the corner.”

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This article was inspired by: Reuters, MarketScreener