Key Economic Changes in South Korea for 2026: Minimum Wage Hike and Presidential New Year Address

Minimum Wage Increased to $10.20 per Hour

Starting January 1, 2026, South Korea’s minimum wage has been raised to $10.20 an hour. Based on a 40-hour workweek, this translates to a monthly salary of approximately $1,680.

This new rate applies uniformly across all workplaces, regardless of employment type or nationality. Intern workers can have their wages reduced by up to 10% during a three-month probation period.

• Late wage payments could be considered wage theft starting at midnight.
• Support for converting part-time roles to full-time jobs is back: up to $500 per month per worker for a year, for companies with fewer than 30 employees.

President Lee Jae-myung’s New Year Address: Outlining Five Growth Strategies

President Lee Jae-myung emphasized local-led growth as the main vision for 2026, unveiling five key strategies to boost the economy. The first focuses on fostering growth driven by regional development.

Other strategies include eliminating industry sanctions for sustainable growth, promoting cultural industries, and pursuing peace initiatives on the Korean Peninsula. Improving everyday living costs and stabilizing inflation were highlighted as top priorities. Prices for staples like rice and mackerel have risen by around 10%, and diesel prices have surged the most in three years.

South Korea Economy TV Special: Focus on Growth Sectors

South Korea’s Business TV aired a special live broadcast from 8 a.m. to noon on January 1, titled "Focus on Growth Sectors in 2026". The program examined the stock market’s upward cycle driven by strong corporate earnings.

Five industry experts shared insights on sector-specific outlooks and investment strategies, emphasizing growth-focused approaches over short-term volatility.

Korean Air’s First Customer Event of the Year

Korean Air welcomed the first arriving passengers at Incheon International Airport for 2026. The highlight was a young traveler, Shu Suyany (in her 20s from China), on flight KE864 from Beijing.

She received two round-trip business class tickets to Beijing and a stay at the Grand Hyatt Incheon as gifts. The airline reaffirmed its commitment to safety and enhanced service quality this year.

First Babies Born in the Year of the Dragon (Year of the Snake)

At Seoul’s Gangnam Women’s Hospital, two babies were born at midnight on January 1 — a girl weighing 6.4 pounds to the Jung family and another girl weighing 7.5 pounds to a different family. This reflects a rising trend in second children being born.

Doctor Park Hee-jin emphasized the importance of maternal and infant health, sharing the joy of new life. The message was clear: “Let’s live happily with mom and dad.”

Top Economic Headlines on Front Pages

Major newspapers like The Korea Economic Daily and Maeil Business Newspaper focused on inflation, growth strategies, and key industries like semiconductors and batteries, highlighting the economic outlook for 2026.