South Korea

Yonhap | English | News | Dec. 12, 2025 | UndeterminedBizdev-Partnering

South Korea's Navy recently hosted a Canadian submariner aboard its 3,000-ton submarine, ROKS Ahn Mu, during a six-day anti-submarine warfare exercise near Guam. This was part of the Silent Shark drills, a joint exercise with the United States, and marked the first time a foreign submariner boarded South Korea's homegrown 3,000-ton submarine. Previously, foreign submariners had only trained alongside South Korean forces on smaller submarines.

This event aligns with South Korea's efforts to secure a significant defense export contract under the Canadian Patrol Submarine Project. Canada plans to acquire up to 12 submarines to modernize its fleet, aiming to receive the first new vessel by 2035. Hanwha Ocean Co., a South Korean defense firm, is among the two preferred bidders for the contract, competing against Germany's ThyssenKrupp Marine Systems.

The visit symbolizes growing naval cooperation between South Korea and Canada amid this export bid. Additional related activities include commitments to arms cooperation with Poland and planned meetings between South Korean and Canadian naval chiefs to discuss maritime security and defense collaboration.

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.

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.