The Organisation for Economic Co-operation and Development (OECD) has revised its growth forecast for South Korea this year up to 2.6%, increasing it by 0.4% points in its biannual economic outlook report on Thursday. This ranks as the fourth-highest expected growth among OECD countries, alongside the U.S. The OECD initially forecasted 2.2% growth for South Korea in February. This new figure surpasses the International Monetary Fund's (IMF) April prediction of 2.3% and the initial projections of 2.2% by the finance ministry, as well as the Bank of Korea's (BOK) prediction of 2.1% for this year’s economic growth in Korea. The OECD has also revised its projection for South Korea’s economic growth in 2025 to 2.2%, up from the initial 2.1%.

The revised forecast comes as the OECD also projected that the global economy will likely recover at a stronger pace than initially expected. However, the OECD has highlighted several urgent structural reforms that the South Korean government needs to address. These include adapting to an aging population through reforms in fiscal policy, labor, and pensions, recommending better fiscal rules, and attracting more immigrant workers.