Tax incentives and pension fund hedging shifts signal a pivot to financial protectionism ahead of 2026 local elections

South Korea’s Ministry of Economy and Finance’s (MOEF) announced a new tax package on Wednesday that underscores an all-of-government mobilization toward financial protectionism, as Seoul attempts to break a structural corporate and retail short against the won.

This coordinated effort features high-level statements and a targeted tax incentive package designed to address what authorities describe as a structural supply-demand imbalance in the foreign exchange market.

South Korea’s Ministry of Economy and Finance’s (MOEF) announced a new tax package on Wednesday that underscores an all-of-government mobilization toward financial protectionism, as Seoul attempts to break a structural corporate and retail short against the won.

This coordinated effort features high-level statements and a targeted tax incentive package designed to address what authorities describe as a structural supply-demand imbalance in the foreign exchange market.

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