South Korea's Economy Grows 1.7 Percent, Conglomerates Asked to Find New Engines

Finance Minister Koo Yun-cheol speaks during a meeting with executives of major conglomerates at the Seoul government complex, South Korea, April 24, 2026. (Source: Yonhap)

JAKARTA - South Korea's economy has grown rapidly in five and a half years. However, the government reminds large conglomerates not to stop at one quarter's achievements.

Yonhap News Agency, Friday, April 24, Finance Minister Koo Yun-cheol delivered the message during a meeting with executives from Samsung Group, LG Group, Hyundai Motor Group, SK hynix, and Hanwha Ocean on Friday, April 24.

Koo said South Korea's economy grew 1.7 percent in the first quarter compared to the previous three months. The achievement came as external conditions worsened, including conflicts in the Middle East.

"This is the fastest quarterly growth in five and a half years," Koo said.

According to Koo, this performance is inseparable from the role of the private sector. However, companies are still asked to innovate in the midst of global industry changes, especially because of artificial intelligence or AI.

Koo hopes South Korea can produce new sources of growth such as semiconductors. The government also promised to encourage regulatory reforms and prepare support so that corporate investment increases.

He also touched on the way companies pursue profits. Koo reminded that there are certain practices that can be judged as inappropriate by the public. Therefore, the business world is asked to show the spirit of innovation and entrepreneurship again.

Koo assessed that high growth was not enough. South Korean companies still need to find new sources of growth amid global industry changes and geopolitical uncertainties.