59th ADB Annual Meeting to be Held in Samarkand, Uzbekistan, May 3-6

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol poses with Minister Park Hong-geun of the Ministry of Planning and Budget and Chmn. Lee Eok-won of the Financial Services Commission during a “macro fiscal and financing meeting” at the Seoul Government Complex on April 1.

Thousands of financial policymakers, including finance and economic planning ministers, representatives of the multilateral development bank community, investment bankers, and representatives of nongovernment organizations, will assemble for the 59th Annual Meeting of the ADB Board of Governors, which will take place in Samarkand, Uzbekistan, from May 3 to 6.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol will head a Korean delegation to the 59th ADB Annual Meeting.

Korea’s delegates include the governor of the Bank of Korea and heads and representatives of commercial banks, including Shinhan Financial Group, KB Kookmin Financial Group, Hana Financial Group, NongHyup Financial Group, Woori Financial Group, Korea Development Bank, IBK, and Export-Import Bank of Korea (KEXIM) as well as representatives of other financial institutions and the financial industry, including Korea Asset Management Corp. and the Korea Financial Investment Association.

The Annual Meeting is a key opportunity for Governors from ADB’s 69 members to consider development issues and challenges facing Asia and the Pacific.

Several thousand participants, including finance ministers, central bank governors, senior government officials, members of the private sector, representatives of international organizations, civil society, and the media regularly join the meeting.

“I am confident that the 2026 Annual Meeting will offer us an inspiring venue for dialogue and foster stronger partnerships, providing an opportunity to highlight the many unique facets of the region,” said ADB President Masato Kanda.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol looks into a production process as he toured Yusang Chemical, a material film maker in Sejong city, to inspect supply chains on April 9.

First Macroeconomic, Fiscal and Financial Meeting Held to Strengthen Macroeconomic Policy Coordination

First Vice Minister of Finance and Economy Lee Hyoung Il chaired an inter-ministerial vice ministers’ meeting on price trends and the Middle East conflict response on April 2.

Participants discussed (March consumer price trends and price developments and management measures for key livelihood items under special monitoring, including those affected by the Middle East conflict.

Vice Minister Lee noted that “consumer prices rose 2.2% in March, supported by falling agricultural prices and the implementation of price caps, despite upward pressure from higher petroleum prices driven by the Middle East conflict and rising global oil prices.”

He added that “given heightened volatility in global oil prices and persistent upside risks, all ministries should work together to ensure price and supply stability across key items.”

The meeting was the first since the launch of the Middle East Conflict Response Team under the Livelihood Price Task Force.

Relevant ministries reviewed price trends and discussed management measures for 43 key items under special monitoring, including manufactured goods and processed food products potentially affected by the conflict.

The government will step up monitoring and conduct on-site inspections at 10,000 gas stations nationwide to prevent excessive price hikes following the second adjustment of price caps on petroleum products.

It will also expand supply measures for chicken, whose prices have risen recently due to livestock disease outbreaks, and provide discounts of up to 40 percent starting April 2.

In addition, the government plans to allocate 15 billion won over April and May to expand discount support for essential items such as rice, eggs, and mackerel, which have seen strong price increases.

Meanwhile, daily prices of key livelihood items among manufactured goods, processed foods, and dining-out services in the special monitoring list will be newly surveyed by the Ministry of Data and Statistics in order to closely track any fluctuations stemming from the Middle East conflict. Items with potential supply or price concerns will be continuously added to the list and subject to intensified management.

Deputy Prime Minister and Minister of Economy and Finance Koo Yun-cheol gets a briefing on countermeasures designed to cope with the aftermath of the Middle East situation and the direction of government policies at the Korean economy IR session at the Permanent Mission of the Republic of Korea to the UN on April 14. (Photos: MOEF)

Overall Industrial Production Increased 2.5%Month-Over-Month in February 2026

In February, overall industrial production rose by 2.5% month-over-month and 0.5% year-onver-year with gains in mining and manufacturing (5.4% / -2.2%) and services (0.5% / 2.1%) outweighing a decline in public administration (-4.6% / -0.8%).

On the expenditure side, facility investment (13.5% / 5.3%) and construction completed (19.5% / 1.2%) increased significantly, while retail sales (0.0% / 4.7%) remained flat.

In February, key indicators of industrial activity showed a marked increase on both the production and expenditure sides.

On the production side, mining and manufacturing and overall industrial production recorded their largest increases in almost six years, driven by strong semiconductor performance, while services output returned to growth, led by wholesale and retail trade and professional, scientific and technical services.

On the expenditure side, both facility investment and construction posted double-digit growth rates. Retail sales remained flat in February, despite the base effect from the previous month’s sharp increase (2.9%), which marked the largest rise in two years and eleven months.

This suggests that the recovery momentum in consumption has been sustained.

Exports continued to show a favorable trend in March. However, downside risks to the economy are increasing due to rising international oil prices stemming from the Middle East conflict, as well as weakening consumer and business sentiment.

The government will make all-out efforts to minimize the impact of the Middle East conflict on the Korean economy by mobilizing all available policy tools, including fiscal, tax, financial, and regulatory measures.

Consumer Price Index Climbed By 2.0% in February

The consumer price index (CPI) in February increased by 2.0% year-on-year (2.0% in January), as the pace of price increases for agricultural, livestock, and fisheries products moderated and petroleum prices declined.

Core inflation, which reflects the underlying trend by excluding volatile food and energy prices, rose by 2.3% year-on-year (2.0% in January).

The CPI for living necessities, which tracks items with a high share of household spending, climbed by 1.8% year-on-year (2.2% in January).