South Korea

Korea Herald | English | News | Jan. 2, 2026 | UndeterminedEconomic Growth

President Lee Jae Myung called for a major shift in South Korea's national growth strategy in his New Year's speech, emphasizing the need to rethink the "success formula" that has driven the country's rapid industrial development. He described the past economic achievements as a result of "compressed development," which concentrated wealth in specific regions, companies, and social classes, creating inequality that now hinders further progress.

Lee vowed to ensure that economic growth benefits are shared more broadly rather than monopolized by a select few. He highlighted the need to break the cycle of inequality and disparity, which he said amplifies competition and conflict, calling for a fundamental change in the growth paradigm to enable a "major takeoff" for South Korea.

Having taken office in June, Lee pledged to push policies aimed at rebalancing national growth, including greater support for small and medium-sized enterprises and venture startups, as opposed to reliance on large family-run conglomerates. Workplace safety improvements for workers were also emphasized as a key goal.

Additionally, Lee identified an inter-Korean thaw and improved peace on the Korean Peninsula as critical to achieving stable and sustainable economic growth. He expressed commitment to working with the international community, including the United States and China, to restore ties between Seoul and Pyongyang.

[의견서] 이재명 정부 금융감독체계 개편안에 대한 의견서 발표

People's Solidarity for Participatory Democracy | Local Language | AcademicThink | Jan. 2, 2026 | Regulation

The Lee Jae-myung administration proposed a financial supervision system reform plan involving the transfer of domestic financial functions from the Financial Services Commission (FSC) to a reorganized Ministry of Finance and Economy, the creation of a Financial Supervision Commission, and the establishment of a Financial Consumer Protection Committee under it. Additionally, the Financial Supervisory Service (FSS) and a newly separated Financial Consumer Protection Agency (FCPA) were to be designated as public institutions. However, these plans were ultimately withdrawn by the government and the Democratic Party of Korea, resulting in the nullification of promises to strengthen financial consumer protection.

People’s Solidarity for Participatory Democracy highlighted structural limitations in the current unified financial supervision system, where consumer protection lacks independence and focuses more on post-incident management than prevention. They cited major consumer harm incidents over the past decade, such as savings bank crises and financial product scandals, where ex ante controls failed and responses prioritized voluntary compensation after damages rather than proactive regulation. This has led to delayed relief and inconsistent compensation for victims.

The group analyzed criticisms from various stakeholders, focusing on four key reform issues: whether to separate the Financial Supervision Commission and Financial Consumer Protection Committee; the effectiveness of the FCPA within the current structure; the implications of designating the FSS and FCPA as public institutions; and concerns about expanding the Ministry of Finance and Economy’s authority. They concluded that separation of financial supervision and consumer protection agencies is essential to address inherent conflicts and strengthen consumer protection, and that reforms should not be used to increase the Ministry’s power.

To improve coordination between separated bodies, People’s Solidarity recommended expanding the “F4 meeting” framework to establish a standing collaboration mechanism among supervisory agencies. This would serve as a control tower to manage conflicts of interest and respond to broader economic and financial challenges. The organization plans to submit this opinion statement to financial authorities for consideration.

Hankyoreh - E | English | News | Jan. 2, 2026 | Corporate Corruption or Fraud

A National Assembly committee held a hearing to address a massive data leak involving the personal information of 33.7 million Coupang users and to assign responsibility. The hearing coincided with a surprise protest by Korean Confederation of Trade Unions activists condemning the data leak.

Harold Rogers, the newly appointed interim CEO of Coupang and chief administrative officer and general counsel of its parent company, attended the hearing, while high-ranking executives, including founder and board chairperson Kim Bom-suk and former Coupang Korea CEOs Park Dae-jun and Kang Han-seung, were absent. Kim Bom-suk notified lawmakers of his absence, citing numerous official business engagements as a global CEO operating in over 170 countries.