President Lee calls for balanced growth to power Korea’s next economic leap in New Year address

President Lee Jae Myung speaks during a Cabinet meeting at Cheong Wa Dae in Seoul, Tuesday. Joint Press Corps

President Lee Jae Myung outlined his vision for Korea’s national leap in 2026, centering on balanced regional development and mutually beneficial growth between large conglomerates and small and medium-sized enterprises (SMEs).

In his New Year address on the first day of the year, Lee pledged to make 2026 “the first year of Korea’s great national leap,” focusing on broad-based growth that delivers tangible benefits to citizens, small businesses and regions beyond the Seoul metropolitan area.

“The goal of the people-sovereignty government is clear,” Lee said in the address. “We will make this new year the foundation for a powerful leap forward, like a red horse in full stride, and turn it into the starting point for Korea’s next great national advance.”

The Korean president vowed sweeping progress across politics, the economy, society, culture, diplomacy and national security.

Crucially, Lee emphasized that the fruit of growth must no longer be monopolized by a small group.

“This is not about only a nation growing richer while its people remain poor,” he said. “We will build a country where all citizens grow together as the nation grows, as large corporations and SMEs advance side by side.”

Lee noted that the economic formula that powered Korea’s rapid rise in the last century has become a “success trap.”

“Inequality and widening gaps are blocking growth,” Lee noted, adding that concentrated investment and opportunity, once a strength, now fuel inequality and intensify social conflict, turning former growth drivers into structural obstacles.

The president reiterated the need to pivot away from an economy dominated by a handful of conglomerates toward what he called “growth for all.” For instance, mentioning the success of recent tariff negotiations with the U.S., and large-scale exports in defense and nuclear energy, Lee said the benefits have disproportionately flowed to major firms.

“Economic achievements made possible by the collective effort of our people must now extend to small businesses, venture firms and household incomes,” the president said.

Additionally, the president underscored a balanced regional development strategies. Under the Lee administration's new vision, Seoul will function as the nation’s economic capital, while the central region of the country will serve as the administrative hub and the southern region as a maritime capital, framing a multipolar national structure.

Beyond the economy, Lee stressed the importance of strengthening cultural industries so that K-culture does not turn into a temporary trend, pledging deeper investment across the cultural ecosystem. He also put emphasis on peace as a prerequisite for sustainable growth, vowing consistent efforts to reduce inter-Korean military tensions and rebuild trust.

“Peace is another word for growth,” Lee said. “If we transform the costs of confrontation into peace-backed development, today’s Korea risk can become tomorrow’s Korea premium.”