Bulgaria joined the euro area in January 2026; cutting a national-basis deficit of 5.7% of GDP is the Radev government's main task, and the EU opened an excessive deficit procedure on 10 July 2026. Hyundai E&C continues engineering work on Kozloduy units 7 and 8.
What a Korean company can do now
Government · leader
President Iliana Iotova (acting since Jan 2026, won 1 Nov 2026 run-off); Prime Minister Rumen Radev (since 8 May 2026)
Key national agenda
- Deficit cuts: 5.7% (2026) to 3.8% (2027) to 3.0% (2028), national basis
- Response to EU excessive deficit procedure (corrective measures due 15 Oct 2026)
- Drafting the 2027 budget and raising social security thresholds
- Fixed-price construction of Kozloduy units 7 and 8
- Probe into road agency contracts and review of road repair deals
- Anti-corruption reform
Government programmes
Kozloduy NPP units 7 and 8Not fixed (fixed-price talks ongoing)
Westinghouse AP1000; engineering contract with Hyundai E&C and Westinghouse signed Nov 2024, extension agreed Apr 2026; unit 7 targeted for 2035, unit 8 for 2037
2026 state budgetDeficit 5.7% of GDP
National-basis deficit 5.7% of GDP (4.1% on EU basis); passed in July, with tolls and vignettes up 30%
2026 capital spendingEUR 9.36bn (planned)
EUR 4.028bn domestic and EUR 5.331bn EU-financed, including the recovery plan (single source)
2027 state budget billDeficit target 3.8% of GDP (medium-term forecast)
Finance ministry has drafted the 2027 budget; opposition calls it a 'budget of inertia'. Detailed figures unconfirmed
Cancellation of EUR 1bn road repair dealOver EUR 1bn
Regional development minister moved to cancel the deal and halt payments under an outdated method amid a road agency favoritism probe (single source)
Business opportunities
Equipment and subcontracting for Kozloduy nuclear units
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Open this week
Road project supervision and PMC consulting
The road agency probe creates demand for transparent procurement and supervision (estimate).
Ministry of Regional Development, Road Infrastructure Agency
Equipment supply for EU-funded projects
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Korean wins
- Hyundai E&C — Engineering contract for Kozloduy units 7 and 8 (with Westinghouse; extension agreed Apr 2026) 2024 · Not disclosed
Korean support schemes
- KOTRA overseas market news and trade office support · KOTRA — Market intelligence, buyer sourcing and branch-office services via local trade offices.
- buyKOREA specialized trading company pavilion (2026) · KOTRA — Applications 3-13 Nov 2026; links firms with verified overseas buyers. Whether this country is among the 10 target markets is unconfirmed.
Official notices
Ministry of Finance of Bulgaria
- 2026-07-10 EU Council opened excessive deficit procedure
- 2026-06-27 Finance Minister Galab Donev explained the 5.7% 2026 deficit
- 2026-06-24 Medium-term forecast 2026-2028 published (5.7% to 3.8% to 3.0%)
Disaster · conflict · epidemic
Stable 2026-11-07
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Earth & space
Credit rating · FX
S&P BBB+ (positive) / Moody's Baa1 (stable) / Fitch BBB+ (positive) (single source) · K-SURE Unconfirmed · EUR +0.5%
Sanctions
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As an EU member state, it is not subject to any country-wide UN, US, EU, UK or Korean sanctions programme.
