South Korea

Joongang Ilbo | English | News | Jan. 13, 2026 | UndeterminedEconomic Growth

In 2025, South Korea’s per capita GDP declined by 0.3 percent to $36,107, marking its first drop in three years, driven by slow economic growth and a weaker won. Korea’s nominal GDP in dollars decreased 0.5 percent to $1.87 trillion, with real GDP growth estimated at 1 percent, the slowest pace since 2020. The depreciation of the won by 4.3 percent against the dollar further dampened Korea’s dollar-denominated GDP figures, despite a 28.9 percent increase in won-based GDP from 2021 to 2025.

Meanwhile, Taiwan experienced strong economic growth fueled by its semiconductor export sector. Taiwan’s projected per capita GDP for 2025 is $38,748, allowing it to overtake Korea’s per capita GDP ranking for the first time in 22 years. Taiwan’s exports surged 34.9 percent to a record $640.7 billion, significantly outpacing Korea’s 3.8 percent growth to $709.7 billion. Taiwan’s exports now represent 90.3 percent of Korea’s export value, up from 69.5 percent in 2024.

Taiwan’s GDP growth forecast remains robust at 7.4 percent for 2025, supported by its export-driven economy and the global AI boom. Projections for 2026 suggest Taiwan’s per capita GDP will reach $40,921, surpassing the $40,000 mark and further distancing it from Korea, whose per capita GDP is expected to reach $37,932. Observers note that the shift reflects currency effects and Taiwan’s semiconductor-led growth momentum, urging Korea to review its policy and investment strategies in response.

Joongang Ilbo | English | News | Jan. 13, 2026 | Cyber Attacks and Data Loss

Kyowon Group shut down parts of its internal network on January 10, 2026, after detecting what it believes to be a ransomware attack. The company identified abnormal activities in its systems around 8 a.m. that day and immediately isolated the network to block access. Several websites operated by Kyowon Group affiliates were unavailable as of January 12, 2026.

The company is investigating the incident to determine the cause, the extent of its impact, and whether any customer or personal data was compromised. It reported the breach to the Korea Internet & Security Agency and other relevant investigative authorities promptly. Kyowon Group is working with security professionals and related agencies to conduct a thorough investigation and is restoring its systems while conducting security checks.

Kyowon Group stated it will notify customers transparently and promptly if any personal information leakage is confirmed and emphasized that it is prioritizing customer protection during the recovery process. The group plans to gradually restore access to its websites and related services as it mobilizes resources to stabilize operations.

Kyowon Group operates education brands such as Kyowon Kumon and Red Pen, and lifestyle and travel businesses including the Wells home appliance brand, Kyowon Life, The Suites Hotel, and Kyowon Tour.

Joongang Ilbo | English | News | Jan. 13, 2026 | UndeterminedTech Development/Adoption

Koreans are increasingly using stablecoins, particularly the dollar-pegged USDT, for everyday payments through overseas fintech platforms such as Redotpay, despite Korea's historically conservative stance on digital assets. Stablecoin transactions on Korean crypto exchanges surged from 7.1 trillion won in June 2025 to 23.4 trillion won in October 2025, reflecting growing adoption amid the absence of a domestic regulatory framework.

The Korean government plans to introduce a new stablecoin law in early 2026 to address regulatory gaps. Currently, stablecoin payments in brick-and-mortar stores rely on overseas platforms and established card networks like Mastercard and Visa, which convert stablecoins to fiat currency. Experts predict this intermediary phase is temporary, anticipating future transactions to occur directly via stablecoins without intermediaries.

A local example includes Kona I's won-pegged stablecoin (KSC), which can integrate with Samsung Pay and prepaid cards for local transactions. While corporate benefits such as lower overseas transaction fees and faster settlement times are expected soon, broader consumer advantages may take longer to materialize. Stablecoins could significantly reduce remittance fees from around 6% to 1%, with potential for micro-payments as low as 10 won.

Regulatory disagreements have slowed progress in won-backed stablecoin issuance. The Bank of Korea (BOK) favors bank-led consortia controlling issuance, whereas the Financial Services Commission (FSC) seeks a more flexible approach allowing technology firms to participate to foster innovation. Korea is leaning toward an initial bank-led issuance model with gradual inclusion of fintech companies. There is also debate over establishing a new licensing body for stablecoin issuers.

This regulatory uncertainty has led major Korean companies to take cautious, strategic steps without concrete plans. Recent acquisitions of crypto exchanges by Naver and Mirae Asset Group signal interest but remain undefined in scope. Unlike in the U.S., where legislation such as the Genius Act promotes stablecoin growth, Korea lacks similarly clear legal structures, contributing to a slower market evolution.

Globally, stablecoins are projected to exceed $2 trillion by 2028, with Korea facing the risk of foreign-issued won-pegged stablecoins gaining traction due to delayed domestic regulation. The first won-pegged stablecoin, KRWQ, launched domestically but remains trade-restricted for Korean residents, already reaching significant volume shortly after release. Delayed regulatory action could increase challenges for Korean authorities to manage the stablecoin ecosystem effectively.