South Korea

Joongang Ilbo | English | News | Oct. 10, 2025 | Strikes and Work Stoppages

During the 2025 Chuseok holiday, many small business owners in South Korea reported being forced to keep their stores open despite significant drops in sales. Convenience store owners and other franchisees faced pressure from headquarters or subcontractors to remain operational, even when it was financially disadvantageous. One convenience store owner noted sales fell to 50-60% of normal levels, yet was told not to close since other stores were open.

The franchise system has been identified as a key factor behind stores staying open during holidays, as store sales directly impact the profits of the headquarters. For some, the pressure extended to not being allowed any days off during the holiday period. Franchise owners often pay 18-20% of revenues in commissions, making holiday openings unprofitable. Many owners rely on family to manage stores rather than hiring employees, complicating the ability to take breaks.

Government data from 2023 shows a majority of franchise stores operate without regular days off, with 99.2% of convenience stores and over 80% of cafes and bakeries lacking weekly holidays. Although a 2019 standard franchise agreement permits owners to request Chuseok off with advance notice, approval remains at headquarters' discretion, discouraging many from applying.

Industry groups warn that proposed labor reforms, such as a four-and-a-half-day workweek, could increase burdens on small businesses by raising overtime costs. Experts call for reforms in the franchise model to grant owners more autonomy to take time off. The Korea Fair Trade Commission is urged to revise standard agreements to better guarantee regular holidays and prevent further closures driven by the current imbalance between franchise headquarters and store owners.

Joongang Ilbo | English | News | Oct. 10, 2025 | North Korea

North Korea is preparing a major military parade on October 10, 2025, to commemorate the 80th anniversary of the ruling Workers’ Party, signaling a shift in its foreign policy. China is sending Premier Li Qiang, its second-ranking leader, to attend—marking a significant diplomatic upgrade from previous years. Russia is also represented at a high level, with Dmitry Medvedev, deputy chair of its Security Council, expected to lead Moscow’s delegation. This elevated presence from Beijing and Moscow highlights the strengthening ties among these countries and North Korea's strategic positioning.

The event is set to showcase a gathering of top officials from North Korea, China, Russia, and other socialist states like Vietnam and Laos, reinforcing Pyongyang’s role in the so-called anti-U.S. alliance. Analysts interpret the parade as an attempt by North Korea to assert a more active diplomatic role and signal resistance to diplomatic pressures from Seoul and Washington amid the upcoming Asia-Pacific Economic Cooperation (APEC) summit in South Korea. North Korea aims to promote a multipolar global order aligned with China and Russia to counterbalance U.S. influence.

Speculation surrounds the potential appearance of Kim Jong-un’s daughter, Ju-ae, who may be introduced at the event to strengthen her status as a possible successor. Her recent secretive visit to China was viewed as part of this exposure, though her young age and diplomatic sensitivities had previously limited her public appearances.

The parade is also anticipated as a platform for unveiling new strategic weapons, possibly including developments referred to by Kim as a “secret weapon.” Recent demonstrations have included hypersonic glide vehicles and advanced missile systems like the Hwasong-11MA. North Korea continues to emphasize its defense advancements amid ongoing tensions with the U.S. and South Korea, highlighting the parade's dual role as both a show of strength and a political statement.

Joongang Ilbo | English | News | Oct. 10, 2025 | Regulation

The European Union announced plans to double steel tariffs from 25 percent to 50 percent and reduce the tariff-free import quota by 47 percent, from 30.53 million tons to 18.3 million tons. This new tariff rate quota system is set to replace the current safeguard mechanism and is expected to take effect at the end of June 2026, pending approval by EU member states. Steel imports exceeding the quota will face the higher 50 percent duty.

The Korean government expressed concern about the significant impact this measure could have on its steel exports to the EU, which totaled $4.48 billion last year. Korea’s steel industry is already facing challenges following similar tariffs imposed by the United States, where exports dropped by double-digit percentages for several months in 2025. The EU has indicated that it will consider free trade agreements when allocating quotas, and Korea plans to leverage its FTA with the EU through bilateral talks.

Trade Minister Yeo Han-koo is scheduled to meet with EU Trade Commissioner Maroš Šefčovič to discuss Korea's concerns. Additionally, Vice Trade Minister Moon Shin-hak will visit steel export sites to gather input from industry stakeholders. The Korean Ministry of Trade, Industry, and Energy is organizing a public-private meeting to formulate response strategies, including potential upgrades to the domestic steel sector, in light of the EU’s proposed tariff changes.