President Lee Jae-myung Meets with Xi Jinping, Signs Over 10 Economic Cooperation MOU Agreements

South Korea-China Summit Held

President Lee Jae-myung is currently on a state visit to China, where he held a summit with Chinese President Xi Jinping. This marks the second meeting between the two leaders in just two months, following the Asia-Pacific Economic Cooperation (APEC) summit in Gyeongju on November 1st.

During the talks, they discussed regional security issues, including denuclearization of the Korean Peninsula, and are expected to explore new avenues for economic cooperation.

Signing of Over 10 Economic Cooperation MOU Agreements

It’s anticipated that more than 10 memorandums of understanding (MOUs) related to economic collaboration will be signed during this visit. Topics such as easing restrictions on Korean entertainment and cultural content, as well as issues surrounding maritime infrastructure in the West Sea, were also on the table.

Chinese media outlet Hong Shengshiwen predicts that this visit will go beyond trade, aiming to reshape the cooperation ecosystem between the two countries.

South Korea’s Economic Outlook

Meanwhile, South Korea’s economy is showing promising signs for 2026. Projections suggest that the combined operating profits of South Korea’s four major shipbuilders could reach around 10.1 trillion won ($8.5 billion), a 55% increase from last year. This surpasses the peak profits seen during the boom years of 2010, which hit about 5.3 trillion won.

The shipbuilding industry’s strong performance is driven by increased orders for high-value vessels, improved production efficiency, and favorable exchange rates, especially in 2023 and 2024.

Currency and Financial Market Trends

The USD/KRW exchange rate is expected to fluctuate between 1,430 and 1,460 won in January 2026. While slowing U.S. job growth and inflation may limit the upward pressure on the dollar, cautious Federal Reserve interest rate policies could prevent a sharp decline in the exchange rate.

Bank of Korea Governor Lee Chang-yong expressed concern about exchange rate volatility during the '2026 Financial Industry New Year Gathering' on January 5th.

KOSPI Market Outlook

The KOSPI stock index continues to hit record highs, showing strong upward momentum. Experts believe that the index could reach 5,000 points in the first quarter of 2026, driven by semiconductor supply shortages and the so-called January effect.

Specifically, Samsung Electronics is expected to break the 20 trillion won ($16.8 billion) operating profit mark for the first time in history, signaling robust growth for the tech giant.