South Korea

성장엔진 시동거는 구윤철 경제팀…내년 2% 달성 가능할까

Newsis | Local Language | News | Nov. 25, 2025 | UndeterminedEconomic Growth

The South Korean government, led by Deputy Prime Minister Koo Yoon-chul, is developing a 2026 Economic Growth Strategy aimed at reversing the decline in potential growth rates and achieving “real growth.” This strategy will focus on strengthening the competitiveness of key industries, fully launching AI transformation initiatives, easing regulatory constraints to promote corporate growth, and implementing measures to stabilize the macroeconomy and support sustainable development. The strategy is expected to be announced between late December 2025 and early January 2026.

The government is particularly concerned about China’s rapid catch-up in key industries, including semiconductors, steel, and automobiles. To respond, they plan to enhance competitiveness in strategic sectors such as K-semiconductors, defense, cultural industries, and petrochemicals, while also cooperating with the U.S. on tariff agreements to integrate Korea more centrally into global value chains. The push for a super-innovative economy includes close monitoring of projects involving AI, SiC power semiconductors, graphene, and LNG cargo tanks, with Koo Yoon-chul committing to monthly site visits next year.

Addressing regulatory barriers to corporate growth is another priority. There are currently hundreds of regulations that vary by company size, creating disincentives for firms to grow. The government is instituting reforms to simplify this regulatory complexity and provide incentives for expansion, coordinating with the Ministry of SMEs and Startups and other ministries to streamline frameworks, especially those based on the Fair Trade Act.

To sustain economic recovery, public institution investments were increased to 69 trillion won in 2025, and the 2026 government budget was set at 728 trillion won, an 8.1% increase. These efforts aim to boost growth to the high 1% range or beyond. Improved external conditions, such as the Korea-U.S. tariff agreement and a semiconductor boom, as well as potential increases in Chinese tourism due to regional diplomatic tensions, support the possibility of exceeding 2% growth in 2026 according to experts. However, vigilance is advised as temporary consumption stimulus measures may wane by late next year.

Yonhap | English | News | Nov. 25, 2025 | North Korea

North Korea's Yongbyon Nuclear Scientific Research Center has been undergoing continuous modernization and expansion throughout 2025, according to commercial satellite imagery reviewed by the U.S. monitoring site 38 North. Yongbyon is crucial for North Korea's nuclear weapons program as the sole producer of plutonium and a significant site for uranium enrichment.

The uranium enrichment facility northeast of the radiochemical laboratory has been particularly active since early 2025. Recent developments include the completion of two support buildings' exteriors in the eastern part of the complex, the addition of concrete paving, and the installation of six heat exchangers along the southeast side of the main building. These heat exchangers are likely used to cool centrifuges and regulate temperature, indicating that interior work on the building is ongoing.

North Korean leader Kim Jong-un has emphasized the importance of overfulfilling production plans for weapons-grade nuclear materials and strengthening the country's nuclear defenses. The 5 MWe reactor at Yongbyon has been operating consistently since January 2025, while experimental light water reactor systems are undergoing preoperational testing. These activities align with North Korea's goal of greatly expanding its nuclear weapons arsenal.

[단독] “해외근무 다녀오니 대출 막혔네요”…보증금 0원으로 간주한다는데

Maekyung | Local Language | News | Nov. 25, 2025 | UndeterminedFinancial System Problems

Since the June 27 loan regulations were implemented five months ago, confusion persists regarding jeonse deposit refund loans, especially for overseas assignees and company-housed residents. Banks now treat deposits from overseas tenants as "0 won," making refund loans for owner-occupancy nearly impossible. Many borrowers who settled loans on their homes before going abroad are facing blocked loans despite actual financial need, due to difficulty verifying these deposits.

The "0 won" deposit rule also affects those living in parents' homes or company housing without deposits, and scenarios where the jeonse loan is under a spouse's name but the husband owns the house. Loan eligibility varies even within the same company housing, depending on the presence of any deposit. For refund loans exceeding 100 million won, additional conditions apply, such as the next tenant enrolling in a refund guarantee and the landlord maintaining owner-occupancy for two years. The loan amount available is limited to the tenant's deposit minus the landlord's current residence deposit.

While confusion grows in the market, financial authorities have not provided clear guidelines, leaving banks to apply discretion. Most banks reject refund loans when the landlord's deposit is "0 won," though some NH Nonghyup Bank branches allow loans if the homeowner submits proof of free residence. As a result, loan approval practices differ across banks and branches.

Regarding reconstruction and redevelopment relocation loans, the government capped loans at 600 million won in the Seoul metropolitan area as of June 27, but older projects approved before this date were initially exempt. However, the exemption is based on the date the sales contract was reported to local authorities, not the contract writing date. This discrepancy increases the risk of loan rejections and victimization. Resale of occupancy or pre-sale rights after the regulation date is also subject to the tightened loan limits, blocking new loans exceeding the cap, even for projects approved before the measures.

Several redevelopment areas in Seoul, such as Noryangjin New Town (excluding Districts 1 and 3), Yongsan-gu Hannam District 3, Seongdong-gu Geumho District 16, Dongdaemun Jegi District 6, and Seocho-gu Banpo Jugong Complex blocks, are directly impacted by these regulations. The redevelopment industry expects numerous affected cases within the city due to these rules.