South Korea

Chosun Ilbo | English | News | Nov. 27, 2025 | Accidents

From January to September 2025, industrial accident fatalities in South Korea increased by 3.2% compared to the previous year, marking the first rise since statistics began in 2022. Despite the government's intensified crackdown and declaration of a 'war on industrial accidents,' fatalities rose from 443 in 2024 to 457 in 2025. The increase was especially pronounced in small-scale workplaces, while fatalities in larger businesses decreased.

The aging workforce and a high proportion of foreign workers among fatalities contributed to the rise. Last year, 42.4% of those killed in industrial accidents were aged 60 or older, and foreigners accounted for 13.1% of deaths despite making up only 3% of the workforce. Major accidents continued despite government efforts, including a boiler tower collapse at Ulsan Thermal Power Plant in November that resulted in seven deaths.

Small businesses faced the highest fatality increases, with a 10.4% rise in workplaces with fewer than 50 employees and a 24.5% increase in those with fewer than five workers. Experts attribute this to limited safety resources and complex subcontracting arrangements that expose workers to higher risks. Industry critics argue that the government's focus on punitive measures harms small businesses and fails to prioritize accident prevention.

The government has implemented strong sanctions, including fines of up to 5% of operating profits for corporations with multiple annual fatalities and license revocations for repeat offenders. However, a survey of 262 companies showed 73% believe punishment-focused policies are ineffective, citing the need for prevention and balanced worker responsibility. The government intends to maintain its sanction-based approach, with officials noting that improvements in accident statistics may take time to become evident.

Yonhap | English | News | Nov. 27, 2025 | Shifting Geopolitical Alliances

South Korea and China are preparing to hold a "strategic dialogue" between First Vice Foreign Minister Park Yoon-joo and China’s Executive Vice Foreign Minister Ma Zhaoxu in Beijing next month. This meeting follows the recent summit between South Korean President Lee Jae Myung and Chinese President Xi Jinping at the Asia-Pacific Economic Cooperation leaders' meeting in Gyeongju on November 1, 2025. The planned talks aim to address bilateral relations and shared regional concerns.

Tensions between China and Japan have escalated after Japanese Prime Minister Sanae Takaichi made remarks about Taiwan, suggesting Japan’s Self-Defense Forces could respond militarily if Taiwan were attacked, describing it as a "survival-threatening situation" for Japan. China has strongly condemned these remarks, calling them "erroneous" and urging retraction, while taking retaliatory actions such as advising its citizens against traveling to Japan and suspending seafood imports from Japan.

The talks between South Korea and China may also cover the sensitive Taiwan issue in light of the China-Japan tensions. Additionally, South Korea’s plan to develop nuclear-powered submarines, a move recently approved by U.S. President Donald Trump following his summit with President Lee, is expected to be discussed, given China’s concerns over Seoul acquiring such strategic capabilities.

원금보장 믿었다가 세금·건보료 폭탄 맞을라…출발부터 불안한 IMA

Maekyung | Local Language | News | Nov. 27, 2025 | UndeterminedTaxes

Mirae Asset Securities and Korea Investment & Securities have recently been authorized to offer comprehensive investment accounts (IMA), a system introduced in 2017 intended to channel long-term funds into venture capital through corporate loans, bonds, and pre-IPO investments. These companies plan to launch their first IMA products by early December 2025.

Concerns have arisen regarding the tax implications of IMAs, particularly because their dividends are paid out in lump sums at maturity rather than annually. This could lead to investors facing comprehensive taxation on financial income, especially as lump-sum payments may push earnings above the 20 million won threshold, triggering higher progressive tax rates and increased health insurance premiums. This tax burden may affect not only high-net-worth individuals but also ordinary investors near the taxation threshold.

The structure of IMAs, which are principal-protected closed-end products, complicates annual dividend payments. Investors may face situations where taxes are paid on interim dividends but principal is repaid at maturity even if losses occur later, potentially causing tax inefficiencies. Early IMA products may impose investment caps (e.g., 100 million won per person) and face limited fund inflows due to unclear tax rules, which could compromise the goal of fostering venture capital funding.

The possibility of open-end IMAs allowing early redemption and frequent trading is being considered for the future, but this introduces further complexity regarding tax timing and dividend payments. Industry stakeholders emphasize the importance of clarifying tax standards before expanding product types to avoid additional confusion and risk.