South Korea

Joongang Ilbo | English | News | Dec. 12, 2025 | North Korea

North Korea's ruling Workers’ Party held an expanded plenary meeting of its 8th Central Committee on December 9, 2025, with leader Kim Jong-un in attendance. The session marked the beginning of a politically significant period leading up to the party's forthcoming ninth congress, expected in January or February 2026. The plenary approved discussing five agenda items, including reviewing the implementation of party and state policies for 2025 and preparations for the congress.

Traditionally held at the year's end, the earlier timing of this plenary suggests a shift in focus toward the upcoming party congress, where Kim is expected to present a new five-year plan and strengthen his authority, possibly by adopting "Kimjongunism" as a guiding ideology and restoring the state presidency. Experts believe the congress will emphasize defining Kim’s political era and solidify the ideological foundation of his long-term rule.

The Rodong Sinmun also revealed the return of Ri Il-hwan, the party’s propaganda secretary, to the leadership podium after nearly a year of absence, indicating his reinstatement. Ri was seated among top officials, including Kim Jong-un and other key leaders. The meeting sets the stage for a critical period in North Korea’s internal political landscape as it gears up for the ninth party congress.

Joongang Ilbo | English | News | Dec. 12, 2025 | Supply Chain Issues

Senior diplomats from Korea and the United States held the 10th Senior Economic Dialogue (SED) in Washington on December 11, 2025, focusing on strengthening cooperation in economic security and securing trusted supply chains. The talks followed the recent bilateral trade and investment agreement finalized in October during the summit between Korean President Lee Jae Myung and U.S. President Donald Trump.

Both sides emphasized enhancing joint economic security measures and aligning economic and national security policies to maintain collective competitiveness. Discussions covered addressing unfair and nonmarket practices, as well as further collaboration on critical minerals, with U.S. Under Secretary of State Jacob Helberg recognizing Korea's leadership in resilient supply chains in regional and multilateral contexts.

The meeting reaffirmed commitments from the two recent summits, highlighting a modernization of the U.S.-ROK alliance. Under the trade deal, Korea pledged $350 billion in U.S. investments, including $150 billion in shipbuilding, in exchange for Washington reducing reciprocal tariffs on Korean goods from 25 percent to 15 percent. The SED underscored the deal’s success in advancing reciprocal trade, energy security, shipbuilding, and emerging technologies. They also discussed Korean investments in American manufacturing and efforts to ease Korean business travel through the Korea-U.S. Business Travel and Visas Working Group.

Joongang Ilbo | English | News | Dec. 12, 2025 | UndeterminedFinancial System Problems

In November 2025, overall household loan growth in South Korea slowed to an increase of 4.1 trillion won compared to 4.9 trillion won in October, driven by tighter banking regulations and a government-imposed annual cap. However, nonbank institutions such as insurance companies, mutual finance firms, and credit card companies saw a significant surge in lending, rising by 64 percent from 1.4 trillion won to 2.3 trillion won. Mutual finance firms contributed 1.4 trillion won to this growth, with insurers adding 500 billion won.

The slowdown was especially pronounced in bank-issued mortgage loans, which fell from 2 trillion won in October to 700 billion won in November, the lowest since March 2022. In contrast, mortgage loans from nonbank institutions increased sharply from 1.2 trillion won to 1.9 trillion won, fueled by strong demand in Seoul and surrounding real estate markets. While regulatory measures have slowed housing price increases overall, some key areas continue to experience steady or rising prices.

Other loan categories, including unsecured loans, also grew, reaching 1.2 trillion won in November, supported by increased investment activity in domestic and overseas stock markets, although volatility concerns remain. Financial authorities postponed the third phase of the stress debt service ratio (DSR) regulation for home loans in nonmetropolitan areas by six months, allowing existing, less stringent rules to apply through June 2026 due to sluggish housing markets outside the capital region. The stress DSR applies a hypothetical higher interest rate to ensure borrowers’ ability to repay under adverse conditions, helping to maintain financial stability.