South Korea

Yonhap | English | News | Jan. 16, 2026 | Strikes and Work Stoppages

Seoul's intracity bus workers began their longest strike in two years on January 13, 2026, with only 8 percent (562 out of 7,018) of buses operational by January 14. The strike followed failed wage negotiations between the union and management, causing significant commuter disruption.

In response, the city government expanded emergency transport services, increasing additional subway runs during rush hour from 172 to 203 and extending peak service hours by two hours. Empty trains were dispatched to alleviate platform congestion, and safety personnel at 86 major stations were more than doubled.

The city also deployed 763 chartered buses across 134 routes by January 14, up from 677 the previous day, serving over 86,000 passengers. Village buses continued regular operations, and taxi companies were urged to increase fleet availability. Labor and management are scheduled to resume negotiations on January 14 afternoon.

Yonhap | English | News | Jan. 16, 2026 | Supply Chain Issues

Container shipping costs from South Korea to the U.S. east coast and the European Union increased in December compared to the previous month, according to the Korea Customs Service. The average cost for a 40-foot container rose by 2.2 percent to 5.39 million won (US$3,674) for shipments to the U.S. east coast and by 10.2 percent to 3.57 million won for shipments to the EU. These increases represent the second consecutive month of rising shipping costs to both regions.

In contrast, shipping costs to the U.S. west coast slightly decreased by 0.4 percent to 5.15 million won, while costs to China dropped significantly by 9.8 percent to 545,000 won. The reported figures cover freight rates, commissions, and other related charges as submitted by local exporters.

Joongang Ilbo | English | News | Jan. 16, 2026 | South China Sea

Amid rising tensions and confrontational incidents averaging 12.1 per month between Philippine and Chinese law enforcement vessels in the South China Sea from August 2024 to May 2025, the Philippines is accelerating its military modernization program by procuring advanced Korean weapons systems. The country is focusing on naval and aerial defense upgrades under the Horizon Military Modernisation Programme, with a $35 billion budget allocated to the current phase, Re-Horizon 3. This includes purchasing frigates, patrol vessels, and advanced fighter jets to strengthen deterrence against China.

Philippine naval forces have a longstanding relationship with Korean shipbuilder HD Hyundai Heavy Industries (HHI), which has delivered multiple frigates since 2016, including the Jose Rizal-class and Miguel Malvar-class vessels. Recently, HHI secured a new $571 million contract to supply two next-generation frigates, mirroring a previous $573 million deal. The Philippine Navy values HHI’s ships for their technological reliability and cost-effective maintenance within the country. The Navy is also looking to acquire at least two diesel-electric submarines with a budget of up to 110 billion Philippine pesos, considering offers from France’s Naval Group, Hanwha Ocean, and potentially HD HHI.

In the air domain, the Philippines relies heavily on Korean Aerospace Industries (KAI) for its light fighter jets. The FA-50PH, a Philippine variant of KAI’s FA-50 light fighter, has been integral to its airpower and counterterrorism operations. A recent $64 million contract was signed to upgrade these jets with enhanced range and active electronically scanned array radar. For future multirole fighter jet acquisitions, the Philippines is evaluating KAI’s KF-21 stealth-compatible jet and the Gripen E/F, with the KF-21 favored for its cost and performance potential. However, official proposals have yet to be requested, and financial arrangements remain a critical factor.

To facilitate large-scale Korean defense exports, Seoul is exploring strategic export finance options beyond the current limits of the Export-Import Bank of Korea, which caps support at 40 percent of the buyer’s equity capital. Proposed mechanisms, such as subscription-like payment programs, could help emerging nations like the Philippines manage financial burdens when acquiring advanced Korean defense systems.