South Korea

Yonhap | English | News | Dec. 12, 2025 | Corporate Corruption or Fraud

The South Korean Ministry of Trade, Industry and Resources announced the official end of mediation between Oxy Reckitt Benckiser and victims of the toxic humidifier disinfectant scandal, as no settlement was reached in an ongoing appeal case. Mediation efforts were led by the National Contact Point (NCP) for Responsible Business Conduct, a government body implementing OECD guidelines for multinational enterprises. The NCP has made three attempts to facilitate a settlement after individual consumers requested additional relief measures for victims whose injuries were not covered under the existing damage classification system.

The humidifier disinfectant scandal is considered one of South Korea's worst consumer product disasters, with Oxy, a Korean subsidiary of the British company Reckitt Benckiser, held responsible for selling products linked to deaths and illnesses starting in 2011. By 2023, 5,691 people were eligible for government-backed compensation, including 1,262 fatalities. Oxy maintains it cannot provide further compensation, having completed settlements and paid into a government-managed relief fund.

The NCP criticized Oxy for insufficient efforts to verify product safety and for making false safety claims. It urged the company to improve its internal policies, strengthen communication with victims outside the existing injury classification, and participate in the environment ministry-led relief efforts. The NCP also recommended that Oxy’s headquarters in Britain engage in these processes and submit a progress report within one year.

Yonhap | English | News | Dec. 12, 2025 | UndeterminedInflation

The Bank of Korea (BOK) monetary policy board is closely monitoring the inflationary risks posed by the weakening Korean won. Board member Kim Jong-hwa highlighted concerns over how the won-dollar exchange rate could influence inflation, emphasizing that price stability remains the central goal of monetary policy. Consumer prices rose 2.4 percent year-on-year in November, maintaining a mid-2 percent range for the second month, while the won has stayed below the key level of 1,450 won per U.S. dollar due to increased U.S. stock investments by local individuals, the National Pension Service (NPS), and offshore investors’ profit-taking.

Kim noted that core inflation is stable, domestic demand has yet to fully recover, and global oil prices are relatively steady. Around 70 percent of the recent pressure on the exchange rate is attributed to supply-demand factors driven by expanded overseas investment from the NPS and individual investors. The board is considering various short-term measures to address these dynamics. On the global monetary outlook, Kim mentioned that uncertainty is high, with global interest rates potentially remaining elevated but any future cuts likely varying by economy depending on specific financial and economic conditions.

In their November meeting, the BOK kept its benchmark interest rate at 2.5 percent for the fourth consecutive time, stressing the importance of maintaining financial stability amid the weaker currency and an unsettled housing market. While three board members supported the possibility of further rate cuts within the next three months, this was fewer than the previous meeting, and Governor Rhee Chang-yong stated that the current rate is close to neutral.

Joongang Ilbo | English | News | Dec. 12, 2025 | Supply Chain Issues

Senior diplomats from Korea and the United States held the 10th Senior Economic Dialogue (SED) in Washington on December 11, 2025, focusing on strengthening cooperation in economic security and securing trusted supply chains. The talks followed the recent bilateral trade and investment agreement finalized in October during the summit between Korean President Lee Jae Myung and U.S. President Donald Trump.

Both sides emphasized enhancing joint economic security measures and aligning economic and national security policies to maintain collective competitiveness. Discussions covered addressing unfair and nonmarket practices, as well as further collaboration on critical minerals, with U.S. Under Secretary of State Jacob Helberg recognizing Korea's leadership in resilient supply chains in regional and multilateral contexts.

The meeting reaffirmed commitments from the two recent summits, highlighting a modernization of the U.S.-ROK alliance. Under the trade deal, Korea pledged $350 billion in U.S. investments, including $150 billion in shipbuilding, in exchange for Washington reducing reciprocal tariffs on Korean goods from 25 percent to 15 percent. The SED underscored the deal’s success in advancing reciprocal trade, energy security, shipbuilding, and emerging technologies. They also discussed Korean investments in American manufacturing and efforts to ease Korean business travel through the Korea-U.S. Business Travel and Visas Working Group.