South Korea

Yonhap | English | News | Dec. 3, 2025 | UndeterminedTech Development/Adoption

South Korea has initiated a 435.9 billion-won (US$296 million) project to develop short-range air-to-air guided missiles for its domestically produced KF-21 fighter jets. The Defense Acquisition Program Administration (DAPA) aims to complete the development of these missiles by 2032 to diversify the weapons systems available for its fighter jets and boost arms exports.

Key local defense companies such as LIG Nex1 Co. and Hanwha Aerospace Co. will participate in the development, which will be led by the Agency for Defense Development. This missile development is expected to significantly advance South Korea's airborne weapons capabilities and support the growth of its aviation defense industry.

주파수 재할당이 쏘아올린 ‘5G SA’ 의무화...대가산정 쟁점화

ZD Net Korea | Local Language | News | Dec. 3, 2025 | Regulation

The government has mandated the transition to 5G Stand Alone (SA) services as a condition for reallocating mobile communication frequencies currently used for LTE and 3G, whose usage periods expire next year. This move requires telecom operators to shift from 5G Non-Stand Alone (NSA) to 5G SA, with KT being the only domestic carrier partially providing 5G SA services. The transition is seen as essential to fully realize 5G’s low latency and high reliability advantages necessary for emerging technologies such as remote medical care, connected cars, AI, and preparation for 6G.

The government plans to incentivize the 5G SA transition by offering a 15% reduction in reallocation fees based on investment conditions, including the construction of at least 20,000 indoor 5G base stations across operators. The minimum aggregated fee for frequency reallocation is estimated at 2.9 trillion won, subject to adjustments based on investment levels and the duration of frequency use. However, carriers remain concerned over the significant investments required for upgrading 5G core networks amidst profitability pressures and past discounted telecom fees.

Disputes have emerged over the method of calculating reallocation fees, which the government bases on past auction prices from several years ago. Telecom operators argue that fees should reflect current and projected revenue potentials rather than historical auction bids, citing inconsistencies and a mismatch with market realities. Academics support this view, highlighting the need for valuation models that incorporate technological evolution and demand forecasts rather than relying on outdated market prices. The government, however, insists on maintaining the current fee calculation approach and presents refusal to accept frequency reallocations as an alternative.

A notable contention between SK Telecom and LG Uplus centers on the uneven pricing of 2.6 GHz band frequencies, where SK Telecom pays significantly higher reallocation fees despite the same frequency band being allocated at a discounted rate to LG Uplus. SK Telecom calls for a consistent application of a 27.5% discount given previously, while LG Uplus cites different initial conditions and frequency utility to justify the disparity. The government has downplayed the dispute as part of broader policy discussions, with the final reallocation plan expected shortly amid ongoing feedback from carriers, including requests for broader investment flexibility beyond indoor base stations and additional incentives for early 5G SA adopters.

한국은행·국민연금, 650억弗 외환스왑 연장

Maekyung | Local Language | News | Dec. 3, 2025 | UndeterminedFinancial System Problems

The Bank of Korea and the National Pension Service have agreed to extend their $65 billion foreign exchange swap to support the won amid its recent decline. Originally starting at $10 billion in September 2022 and increased to $65 billion by December last year, this arrangement allows the National Pension Service to exchange won for dollars from the Bank of Korea’s reserves without direct foreign exchange market intervention. While the pension fund has not actively utilized the swap, the extension itself is expected to help stabilize the currency. Increased use of this facility could prevent further depreciation of the won.

In addition to the swap extension, the Ministry of Economy and Finance issued a warning to export companies that policy fund support may be suspended if they do not sell dollars into the market. Dollar deposits held by companies across five major banks surged from $44.3 billion in October to $53.7 billion in November, contributing to the won’s weakness despite a current account surplus of $82.7 billion through September. The government is also set to regularly inspect export companies’ currency exchange and overseas investment activities, potentially linking these to corporate support policies.

The Financial Supervisory Service has opened an investigation into securities firms used by Seohak-gaemi investors. The focus is on whether these firms have adequately informed and protected investors regarding overseas investments. The inquiry will also examine if securities and asset management companies prioritized selling “currency-open” products, which expose investors directly to exchange rate fluctuations, over “currency-hedged” products, potentially exacerbating exchange rate risks and investor anxiety.