President Lee Jae Myung (third from left) on Dec. 11 speaks at a briefing on the 2026 business plans of the Ministry of Economy and Finance and the Ministry of Data and Statistics at Government Complex-Sejong. (Office of the President)

By Lee Jihae

A Korean-style sovereign wealth fund is set for launch next year.

"We will promote the setup of a Korean-style sovereign wealth fund to systematically accumulate and grow our country's wealth and pass it on to future generations," Deputy Prime Minister and Minister of Economy and Finance Koo Yun Cheol on Dec. 11 said at his ministry's presentation of its 2026 business plan in Sejong.

To this end, the benchmarking of successful case studies abroad such as Singapore's Temasek and Australia's Future Fund will be used to set up a Korean equivalent in the first half of next year.

The new fund will be a commercial instrument to yield returns both at home and abroad, with funding to come from tax revenue but shares received instead of cash payments will also be used.

The ministry also set a goal of economic growth of 1.8% or more in 2026, along with a rebound of the potential growth rate.

With next year designated "the inaugural year of the Korean economy's major leap forward," the ministry pledged to push for policies in the following six areas: reinforced planning and coordination of economic policy; raising of the potential growth rate; stabilization of the people's livelihood and reduction of social polarization; strategic economic cooperation with the world; proactive creation of national wealth; and innovation in finance, tax and the public sector.

Fifteen projects will also push forward the transition toward artificial intelligence and a hyper-innovative economy.

On the highly anticipated separation of banking and industry, the ministry decided to partially accept demands from business by adopting regulatory exemptions for holding companies linked to investment in the provinces.

A major example is the slashing of the mandatory ownership ratio for third-tier subsidiaries of general holding companies from 100% to at least 50%. Related legal revisions are expected as early as next month.

jihlee08@korea.kr