Morgan Stanley: Additional stimulus measures may have limited impact on South Korea's 2026 GDP growth.

Kathleen Oh, from Morgan Stanley, said that South Korea's planned additional fiscal stimulus measures aim to cushion the energy shock brought by the Middle East conflict, but these measures may have limited effect on boosting South Korea's domestic gross domestic product (GDP) this year. The economist expects that the proposed additional budget of approximately 25 trillion Korean won will focus on direct transfer payments to households and heavily affected industries, with the details of the budget expected to be announced before March 31. Kim believes that stimulus measures in the form of consumption vouchers and energy vouchers may only provide a limited boost to economic growth. She estimates that this may contribute about 0.15 percentage points to GDP growth this year, partially offsetting the downside risks from rising oil prices.