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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.
The goal is to provide intelligence that allows decision makers to avoid being blindsided by what they may have missed, while informing them to make better decisions as well.
Erudite Risk also includes operations categories so you can monitor the environment for better decision making. Everything is tied together--what happens in risk affects operations and what happens in the market impacts risk profiles.
We categorize key intelligence into one of 30 different operations intelligence categories.
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Gov't investigation finds widespread labor abuses against foreign workers
Joongang Ilbo | English | News | Nov. 21, 2025 | UndeterminedEmployment
A government investigation in South Korea has revealed widespread labor abuses against foreign workers, with 93 percent of inspected workplaces violating labor laws. The Ministry of Employment and Labor conducted two rounds of inspections in April and September 2025 at 196 workplaces vulnerable to worker mistreatment, uncovering 846 breaches across 182 workplaces. Common violations included unpaid wages at 123 sites, excessive working hours at 65, failure to provide breaks or holidays at 22, and assault or discriminatory treatment at 10.
Unpaid wages amounted to 1.7 billion won ($1.16 million), with 103 of the 123 workplaces repaying 1.27 billion won. Serious cases led to criminal charges, such as an assault case in South Chungcheong and wage evasion in Gangwon. Additional violations included failure to enroll foreign workers in mandatory insurance and inadequate dormitory facilities. Three workplaces hiring foreign workers without permits faced restrictions on future employment authorizations.
The ministry issued 844 corrective orders and plans to conduct further inspections, particularly targeting repeat offenders. Findings will be shared with key stakeholders to promote voluntary improvements in labor conditions. Labor Minister Kim Young-hoon emphasized that there should be no distinction between Korean and foreign workers in labor rights protection and committed to establishing an integrated support system for foreign workers.
Gov't doubles budget for rural basic income pilot program following local backlash
Joongang Ilbo | English | News | Nov. 21, 2025 | Protest, Demonstration, Dissent
The South Korean government has doubled the budget for President Lee Jae Myung’s rural basic income pilot program due to backlash from local governments excluded from the initial trial. The Ministry of Agriculture, Food and Rural Affairs’ 2026 budget plan was approved with a 1.17 trillion won increase, raising funding for the basic income initiative from 170.3 billion won to 340.9 billion won. This allows for up to five additional trial regions and increases the central government's contribution rate from 40 to 50 percent.
The program provides 150,000 won per person monthly for two years to residents in population-declining rural areas, aiming to revitalize these communities. Of 69 eligible counties, 49 applied but only seven were selected initially, sparking protests and concerns about fairness and resident outflow. Some regions, such as Cheongyang County, experienced temporary population increases possibly linked to the cash benefits. Local governments have also requested higher state subsidy rates due to limited fiscal capacity.
Experts warn of significant fiscal risks if the program expands nationwide. Covering all 69 population-declining counties could cost 4.9 trillion won annually, with roughly 2 trillion won borne by the central government. Extending it to the entire rural population of 9.64 million could raise spending to about 6 trillion won per year. Critics highlight the risk of mandatory cash welfare spending limiting future local investments, with relatively low economic impact compared to infrastructure spending, and caution against the program becoming an unsustainable fiscal burden.
홍진배 IITP 원장, AX2.0 시대 국가전략 제시
Hong Jin-bae, IITP Director, Presents National Strategy for the AX2.0 Era
ZD Net Korea | Local Language | News | Nov. 21, 2025 | UndeterminedTech Development/Adoption
On November 19, Hong Jin-bae, Director of the Institute for Information and Communications Technology Planning and Evaluation (IITP), presented South Korea’s R&D and talent strategy for the AX 2.0 era at a seminar held at Korea National Open University. The event focused on the policy, ecosystem, and talent development directions needed for South Korea to establish itself as a sustainable AI future nation amid increasing global competition centered on national strategy and technology sovereignty.
Kim Jin-hong, chairman of the ICT Renaissance Committee, highlighted the structural limitations in the Korean AI ecosystem, describing it as trapped in a “scale-up trap” marked by insufficient private investment and talent outflow. He advocated for a government role shift from “market fixer” to “market creator” to better cultivate the domestic AI ecosystem.
Director Hong Jin-bae explained that AI is evolving from simple inference in the AX 1.0 era to autonomous action in the real world in the AX 2.0 era, with agentic and physical AI driving a new productivity revolution across sectors such as manufacturing and services. He noted the competitive shift towards efficiency and usability, emphasizing AI’s growing importance in national sovereignty amid US-China technological rivalry.
Hong outlined three strategic pillars for South Korea’s advancement as an AI leader: securing technological sovereignty in six core AI fields (AI models, semiconductors, quantum computing, cybersecurity, next-gen networks, and AI convergent services); leveraging manufacturing strengths by enhancing full-stack physical AI technologies for early market leadership; and cultivating high-level innovative talent through initiatives like AI Star Fellowship and specialized graduate programs. These efforts aim to build national innovation capabilities to lead the next productivity revolution.
The seminar included experts from AI, security, telecommunications, industry, and medical fields who discussed practical measures for developing a Korean-style AI innovation ecosystem. An IITP official noted that the seminar helped redefine the national AI strategy’s direction in response to the AX 2.0 era, focusing on technological sovereignty, R&D reorganization, and talent cultivation necessary for South Korea’s progress as an AI-leading country.
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