[Exclusive] OECD to Issue First Assessment of Lee Jaemyung Administration... Expected to Recommend Fiscal Rule and Education Grant Reform

OECD to Release "Economic Surveys: Korea 2026" in Early July
Highlights Need for Legally Binding Fiscal Rule and Reform of Local Education Grants

The Organisation for Economic Co-operation and Development (OECD) is reportedly set to highlight the need for the introduction of a legally binding fiscal rule and the reform of local education grants to reflect the decline in the school-age population in its upcoming Korea Economic Report, which is scheduled to be published in early July.

According to the Ministry of Economy and Finance on June 19, the Economic and Development Review Committee (EDRC) under the OECD is finalizing the wording of the "Economic Surveys: Korea 2026" report with the Korean government. The OECD’s biennial economic report is a comprehensive assessment of member countries' economic strength and serves as a trusted reference for global credit rating agencies and investment banks when evaluating national credit ratings or making investment decisions. This report will also mark the first comprehensive OECD assessment since the inauguration of the Lee Jaemyung administration.

In addition to recommendations on fiscal rules and education grant reform, the upcoming report is expected to include a thorough and wide-ranging review of the Korean economy. It will provide an in-depth diagnosis of Korea’s macroeconomic trends in light of heightened external risks such as the Middle East conflicts, and will detail strategies to break the vicious cycle of regional disparities amid population decline, including measures to improve the efficiency of local finances and strategies for balanced development through the activation of regional hubs.

The report is currently in the final coordination stage right before publication. The OECD economic report is completed through the drafting of an initial version by the OECD, circulation among relevant government ministries for feedback, and final adjustments to the text. OECD staff in charge of Korea, who drafted the report, are scheduled to visit Korea to provide an official briefing with consecutive interpretation.

A government official stated, "This report has symbolic significance as the OECD’s first official evaluation of the current administration," adding, "We are making final efforts to ensure that any misunderstandings about our government’s policies are minimized and that an objective and balanced assessment is reflected in the final version."

This content was produced with the assistance of AI translation services.