South Korea

Yonhap | English | News | Jan. 9, 2026 | UndeterminedTrade Issues and Numbers

Trade Minister Yeo Han-koo pledged to maintain South Korea's annual exports above the US$700 billion mark for 2026, building on the record achievement of 2025. Last year, South Korea's exports reached an all-time high of $709.7 billion, driven by strong performances in semiconductors, automobiles, ships, and smaller sectors like agro-fisheries and cosmetics.

Yeo credited this success to renewed trust in the Korean market following President Lee Jae Myung’s administration and the bilateral trade agreement between Seoul and Washington. The government plans to diversify export items and markets to counteract protectionist policies from major economies, including the EU's heightened steel safeguards. Efforts will also focus on enhancing infrastructure and financial support for export firms.

'홈플러스 사태' 김병주…검찰, 구속영장 청구

Hankyung | Local Language | News | Jan. 9, 2026 | Political Scandal or Corruption

Prosecutors investigating the "Homeplus incident" filed an arrest warrant request for MBK Partners Chairman Kim Byung-joo on January 7, nearly eight months after receiving the case from financial authorities. The Seoul Central District Prosecutors' Office also requested arrest warrants for four other individuals, including Homeplus CEO Kim Kwang-il and other MBK executives, citing charges of fraud and violations of the Capital Markets Act. Prosecutors cited the risk of evidence destruction and potential flight due to frequent overseas travel by the suspects.

The charges stem from allegations that MBK and Homeplus issued large-scale bonds despite anticipating a credit rating downgrade, then abruptly filed for corporate rehabilitation, causing losses to bond investors. Homeplus issued 82 billion won in electronic short-term bonds on February 25, 2026, but its credit rating dropped three days later, followed by a rehabilitation filing on March 4. Subsequent downgrades led to severe financial distress, including the suspension of operations at 10 Homeplus stores nationwide.

Prosecutors uncovered evidence that MBK executives were informed of Homeplus's operating losses and impending credit rating downgrade well before the rehabilitation filing. The investigation was fast-tracked from the Financial Supervisory Service in April 2025, with multiple search-and-seizure operations conducted at Homeplus, MBK headquarters, and Chairman Kim's residence. Chairman Kim has been under a travel ban during the investigation.

Following summons investigations of key executives completed in December 2025, prosecutors moved to request arrest warrants. MBK Partners responded by denying all charges, asserting that the prosecution misunderstood the intent and actions of the major shareholder in trying to revive Homeplus during its financial difficulties, and pledged to present a full defense in court.

“마통 5조원 긁어 어디 썼길래”…정부, 아직 국방비도 지급 안했다

Maekyung | Local Language | News | Jan. 9, 2026 | Political Scandal or Corruption

In December 2025, the South Korean government borrowed 5 trillion won from the Bank of Korea due to a temporary cash shortage, following a similar borrowing of 14 trillion won in September 2025. These loans are part of a temporary loan system where the government borrows short-term funds to cover timing gaps between revenues and expenditures, akin to an overdraft account at a commercial bank.

In total, the government borrowed a cumulative 164.5 trillion won from the Bank of Korea in 2025, the second-largest amount on record after 2024’s 173 trillion won. This figure notably exceeds borrowings from 2021 through 2023 combined. The government paid interest on these loans totaling 158.09 billion won in 2025, also the second-highest record after 2024.

Despite these emergency funds, the government reportedly failed to make timely payments of approximately 1.3 trillion won in defense funds to military services and contractors by the end of last year. The Ministry of Economy and Finance committed to executing these delayed expenditures promptly within the first week of January 2026.

Criticism was leveled at the Lee Jae-myung administration for heavy reliance on Bank of Korea overdrafts while simultaneously failing to pay urgent defense budget items on time. Lawmaker Park Seong-hoon condemned this as a significant treasury management failure, particularly given the administration's earlier opposition to temporary borrowing practices when out of power.