South Korea

Hankyoreh - E | English | News | Jan. 7, 2026 | North Korea

North Korea launched multiple ballistic missiles from Pyongyang toward the East Sea on Sunday morning, with the missiles reportedly traveling about 900 kilometers. South Korea’s Joint Chiefs of Staff characterized the missiles as short-range and possibly part of the Hwasong-11Ma hypersonic missile class. This marks the third ballistic missile launch since South Korean President Lee Jae Myung’s inauguration in June 2025, following previous launches on October 2 and November 7. Additionally, a long-range strategic cruise missile was launched during military exercises on December 28.

The missile launches came on the same day as President Lee’s visit to China, signaling North Korean leader Kim Jong-un’s displeasure with the start of Xi Jinping’s summit diplomacy with South Korea, which North Korea views as hostile. North Korea’s state media prominently featured New Year's greetings exchanged between Kim and Russian President Vladimir Putin but only briefly mentioned greetings from China’s Xi Jinping.

North Korea’s missile activity also followed the unexpected arrest of Venezuelan President Nicolás Maduro and his wife by US special forces the previous day. Although North Korea had not officially responded to the raid as of Sunday afternoon, the missile launches appeared to serve as a show of strength, highlighting North Korea’s refusal to be intimidated as a nuclear-armed state. The South Korean National Security Office called on North Korea to stop provocative actions violating UN Security Council Resolution No. 1874, which prohibits such missile launches.

美 투자 한국기업, 법인세 15% 미달해도 과세 안해

Hankyung | Local Language | News | Jan. 7, 2026 | Regulation

A new international tax framework known as the "Side-by-Side Package" system has been established, allowing the global minimum tax and individual countries' minimum tax systems to coexist independently. This was finalized by over 145 OECD and G20 member countries and comes into effect this year. Under this system, if a country operates a qualified side-by-side regime similar to the global minimum tax, foreign subsidiaries of multinational companies in that country will not be subject to the global minimum tax because taxing rights primarily belong to the company's home country.

Since 2024, countries including South Korea, the European Union, and Japan have implemented global minimum tax systems adhering to international standards. The United States operates its own minimum tax system, which has been recognized internationally as a qualified side-by-side regime. Consequently, large U.S. tech companies like Google, Apple, and Netflix will not face the global minimum tax in other countries on income earned after January 1 of this year.

This agreement benefits Korean companies operating in the U.S., particularly domestic automakers and battery producers receiving U.S. Inflation Reduction Act (IRA) subsidies. The South Korean Ministry of Finance and Economy clarified that even if effective corporate tax rates fall below the 15% minimum due to overseas tax credits, these companies will not be liable for additional global minimum tax payments. Eligible tax incentives include South Korea’s integrated investment tax credit, R&D tax credit, and the U.S. IRA advanced manufacturing production tax credit, which the government has actively advocated for in international negotiations.

Yonhap | English | News | Jan. 7, 2026 | North Korea

President Lee Jae Myung of South Korea and Chinese President Xi Jinping emphasized the importance of resuming dialogue with North Korea during their summit in Beijing on January 5, 2026. They agreed to explore measures to promote peace on the Korean Peninsula, particularly as North Korea escalated tensions by launching ballistic missiles just hours before Lee’s arrival.

The two leaders reaffirmed that peace and stability on the Korean Peninsula serve the interests of both South Korea and China. Lee was assured of China’s willingness to play a constructive role toward this goal. They also agreed on holding annual meetings and expanding communication and exchanges between their defense authorities to build mutual trust and contribute to regional peace and stability.

Since taking office in June 2025, President Lee has made efforts to improve relations with North Korea, but Pyongyang has remained unresponsive to his peace initiatives. The summit also included a signing ceremony of memorandums of understanding between the two countries.