South Korea

Intelligence for Better Decision Making

Seoul Bus Strike Resolved After Wage Deal Restores Citywide Service
Jan. 16, 2026 | Transportation & Logistics

Seoul’s extensive bus network ground to a halt in a citywide strike triggered by stalled wage negotiations.

**The strike began at 4 a.m. on Tuesday, January 13, after talks between the Seoul City Bus Labor Union and the Seoul Bus Transport Association broke down.**
At its height, approximately 93 percent of the city’s 7,018-strong fleet lay idle, with only 562 buses operating and commuters left scrambling in a metropolis that relies heavily on public transport.

**Negotiations resumed the next day at the Seoul Regional Labor Relations Commission in Yeongdeungpo-gu, where public-interest mediators stepped in following the previous day’s impasse.**
After more than nine hours of intense discussion, negotiators reached an agreement around 11:50 p.m. on Wednesday, January 14, ending the two-day walkout and allowing services to resume at 4 a.m. on Thursday, January 15.

**Under the deal, drivers will receive a 2.9 percent base wage increase for 2026—well above the city management’s initial 0.5 percent offer but just shy of the union’s 3 percent demand.**
The agreement also phases in an extension of the retirement age, raising it from 63 to 64 in July 2026 and then to 65 in July 2027. The parties agreed to postpone discussions about incorporating regular bonuses into ordinary wages, leaving that issue on the table for future talks in light of a December 2024 Supreme Court ruling.

**During the stoppage, Seoul city authorities rolled out emergency transport measures to ease the strain on commuters.**
They extended subway operating hours, increased peak-hour train frequency, deployed empty trains to reduce platform crowding, and doubled safety personnel at major stations. The city also chartered and operated 677 shuttle buses on Tuesday and 763 on Wednesday, carrying more than 86,000 passengers along halted bus routes. These interventions cost roughly 10 billion won (about $6.8 million) per day. Once buses returned to service on Thursday morning, officials lifted all emergency provisions and reverted to normal schedules.

**The strike brought deeper structural challenges in the semi-public bus operation system into sharp relief.**
The city covers annual budget deficits estimated at around 600 billion won and could face further strain if future wage demands materialize. Critics warn that unresolved questions over ordinary wage definitions and the funding model for semi-public operations may trigger fresh disputes, especially given the municipal budget injections during the COVID-19 pandemic and their lasting impact on city finances.

**Union chairman Park Jeom-gon apologized to citizens for the disruption and expressed hope for smoother negotiations ahead, while Seoul Bus Transport Association chair Kim Jeong-hwan welcomed the resolution despite regret over the strike’s duration.**
Mayor Oh Se-hoon praised both sides for their conduct and reaffirmed the city’s commitment to strengthening labor-management trust and ensuring reliable public transportation.
North Korea Demands Apology Amid Escalating Drone Incursion Dispute
Jan. 15, 2026 | Geopolitics & Defense

Tensions between North and South Korea have escalated following allegations of unauthorized drone flights and a subsequent demand for an apology from Pyongyang.

**Kim Yo-jong, deputy head of the North Korean Workers’ Party and sister of leader Kim Jong-un, rejected South Korea’s overtures for renewed communication after accusing Seoul of sending unmanned aerial vehicles (UAVs) into North Korean airspace.**
She dismissed any hopes for improved inter-Korean relations as a “pipe dream and delusion,” described the South Korean government’s response as “pitiful,” and warned that further provocations would trigger consequences far more severe than mere verbal threats or proportional retaliation.

**North Korea claims that on January 4, a surveillance-equipped drone violated its airspace over Ganghwa-gun, Incheon, representing a serious breach of sovereignty.**
Pyongyang first announced the incident on January 10 through the Korean Central News Agency, demanding a formal acknowledgment and apology from Seoul. Kim Yo-jong reiterated that any repeat incursions would exact an “unbearable price,” insisting her warning was not idle rhetoric.

**South Korea’s Ministry of National Defense denies owning or deploying the drone and has launched a joint military-police investigation to trace its origin, even considering that civilian operators, rather than the military, could be responsible.**
Unification Minister Chung Dong-young said Seoul remains open to dialogue once inquiries conclude and North Korea responds. He criticized Pyongyang’s choice to air its accusations via state media instead of through established inter-Korean channels, calling that approach “unnatural and abnormal.” Chung added that South Korea might issue an official apology for drone deployments in 2024 under the previous administration—an option now under legal review—and noted that the investigation’s findings will guide any further actions, echoing past expressions of regret after the 2020 killing of a South Korean government employee in the Yellow Sea.

Monitored Intelligence for South Korea - Jan. 16, 2026


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Kim Yo-jong’s rare back-to-back statements signal Pyongyang’s external unease: experts

Korea Herald | English | News | Jan. 16, 2026 | North Korea

North Korea’s release of two rapid statements by Kim Yo-jong, Kim Jong-un’s sister, signals heightened sensitivity to diplomatic pressures and security threats ahead of major political events. The statements dismissed prospects for improving inter-Korean relations, reinforcing the regime’s hardline "two hostile states" doctrine that views North and South Korea as separate adversaries. Kim Yo-jong demanded a detailed explanation from Seoul on alleged drone incursions while simultaneously rejecting South Korea’s attempts at dialogue regarding the incident.

Experts interpret these consecutive statements as a strategic political move to justify intensified hostility toward South Korea and bolster internal cohesion through anti-South sentiment, especially in advance of the 9th Party Congress. The timing, following a South Korea-Japan summit, was seen as a message opposing denuclearization and peace efforts promoted by Seoul and Tokyo. Analysts also noted Pyongyang’s dissatisfaction with South Korea’s outreach diplomacy to China and Japan, viewing it as an attempt to undermine President Lee Jae Myung’s initiatives.

Concurrently, North Korea has restructured Kim Jong-un’s security detail, replacing commanders of key units responsible for his protection, marking a rare maneuver linked to evolving external threats such as drone and electronic warfare risks. These changes are connected to past incidents including the attempted bombing attack on Japan’s Prime Minister and troop deployments to Russia. The presence of Kim Jong-un’s daughter in state media has likely influenced the introduction of new security protocols, emphasizing family security rather than successor protection.

Together, Kim Yo-jong’s statements and the overhaul of the security apparatus reflect an increasingly vigilant Pyongyang, wary of external diplomatic and security challenges while preparing to reinforce its hardline stance domestically and internationally.

S. Korea considers restoring pact reducing military tension with N. Korea

Yonhap | English | News | Jan. 16, 2026 | North Korea

South Korea is considering restoring a suspended military pact with North Korea aimed at reducing tensions along their border. The original agreement, signed in 2018 between then-President Moon Jae-in and North Korean leader Kim Jong-un, was fully suspended in 2024 due to worsening relations. According to National Security Adviser Wi Sung-lac, internal discussions are ongoing, but no final decision has been made.

The discussions were highlighted during a press briefing following President Lee Jae Myung's summit with Japanese Prime Minister Sanae Takaichi in Osaka on January 14, 2026. Wi confirmed that the government views restoring the pact as a basic direction in policy but emphasized that consultations remain in progress.

In relation to North Korea’s accusations that South Korea sent drones into its territory twice—once in September 2025 and again in early January 2026—the South Korean government is conducting an internal investigation. If civilians are found responsible for the drone incursions, it would likely constitute a violation of South Korean law and breach the armistice agreement, which would lead to appropriate measures and punishment.

Samsung faces first-ever majority labor union as burning resentment over bonuses drives membership

Joongang Ilbo | English | News | Jan. 16, 2026 | Strikes and Work Stoppages

Samsung Electronics is on track to face its first-ever majority labor union, driven by widespread dissatisfaction among employees over performance-based bonuses. Despite record operating profits of 20 trillion won ($13.5 billion) in the fourth quarter of 2025, many semiconductor division engineers feel their bonus payouts, capped between 43 to 48 percent of annual salary, fall short of expectations. This frustration has sparked a ninefold increase in union membership since September 2025, with the Samsung Group United Union (SGUU) now representing 42.6 percent of Samsung’s workforce, nearing majority status.

Union membership growth has been most pronounced in the semiconductor division, where over 55 percent of employees have joined the SGUU, while the Device eXperience (DX) division lags with a 23.8 percent membership rate. Workers cite issues with compensation transparency and the perceived inadequacy of performance pay formulas. The SGUU demands more transparency on how bonuses are calculated and seeks to remove payout caps, arguing that the company’s current Economic Value Added (EVA) method for calculating excess profit incentives limits bonus potential by factoring in taxes and capital costs.

Samsung Electronics is currently engaged in its fifth round of wage negotiations with a joint union bargaining group. The unions have threatened to hold a strike vote if talks fail and are considering forming a task force to examine compensation and working conditions at competitors like SK hynix. If SGUU achieves majority status, it would gain exclusive bargaining rights for collective labor issues, though analysts expect no immediate drastic changes as negotiations continue.

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