South Korea's Economic Growth and Strategic Initiatives

The ruling Democratic Party (DP) and the government agreed Tuesday to use additional tax revenue to invest in young generations and regional development under next year's budget plan. The two sides reached the agreement during a high-level consultative meeting on the 2027 budget at the National Assembly, saying the government expects a sharp increase in tax revenue thanks to record earnings by semiconductor companies.

South Korea's exports rose 52.3 percent from a year earlier in the first 20 days of July as overseas shipments of semiconductors nearly tripled amid the ongoing artificial intelligence (AI) boom, customs data showed Tuesday. Outbound shipments reached US$54.9 billion in the July 1-20 period, compared with $36 billion tallied in the same period last year, according to the data from the Korea Customs Service.

The defense ministry on Monday said it will lift or ease restrictions in military protection zones equivalent to 10 times the size of Yeouido in western Seoul, as the government seeks to address public inconveniences and promote balanced regional development. Under the plan, the ministry will completely lift restrictions in five regions -- Goseong County and Sokcho city in Gangwon Province, Pyeongtaek and Goyang cities in Gyeonggi Province, and Seoul's Yongsan Ward.

Seoul stocks erased earlier losses and were trading higher late Tuesday morning as investors went bargain hunting for technology stocks. The benchmark Korea Composite Stock Price Index (KOSPI) changed its trajectory, going up 149.39 points, or 2.29 percent, to 6,665.66, as of 11:25 a.m.

South Korean defense company LIG Defense & Aerospace (D&A) Co. said Tuesday it will team up with European aerospace giant Airbus to jointly develop next-generation unmanned aircraft systems (UAS). LIG D&A and Airbus Helicopters signed a memorandum of understanding at the Farnborough International Airshow in Britain to jointly develop next-generation UAS technologies, the Korean company said.