South Korea

길 잃은 홈플러스…"정부 나서달라" 호소

ZD Net Korea | Local Language | News | Nov. 28, 2025 | Regulation

Homeplus's initial attempt to find a new owner failed as no bids were submitted by the deadline, despite letters of intent from Harex Infotech and Snowmad. Both companies did not submit final bids, largely due to inadequate financial capacity. The Seoul Bankruptcy Court plans to consult with stakeholders and discuss next steps, including preparing a rehabilitation plan or pursuing a second M&A re-bidding.

Harex Infotech and Snowmad's financial instability was a major barrier. Homeplus has a liquidation value of 3.7 trillion won and liabilities of 2.9 trillion won, requiring substantial cash even if loans are secured. Harex reported significant losses and capital erosion, while Snowmad had limited liquid assets and considerable net losses, making them unable to meet the cash requirements for acquisition.

Political circles and the Homeplus union have urged government intervention, highlighting the broad economic impact on employees, suppliers, and tenant stores. NongHyup, a proposed acquirer, has declined due to its own financial weaknesses. Lawmakers and union representatives stressed that Homeplus's situation affects around 100,000 workers, 1,800 supplier companies, and 8,000 tenant stores, calling for active government and party involvement, including mobilization of public restructuring institutions and emergency funding support.

Tenant store owners expressed distress over the ongoing uncertainty, store closures, and revenue losses, urging the government to provide emergency operating funds and facilitate a stable and reasonable M&A process rather than a rushed, unstable deal. The situation remains critical with a looming deadline for rehabilitation planning by the end of next month.

Joongang Ilbo | English | News | Nov. 28, 2025 | Regulation

South Korea plans to establish large-scale autonomous driving test-bed cities to advance its autonomous vehicle technology from Level 3 (conditional automation) to Level 4 (high automation). The Ministry of Land, Infrastructure and Transport announced a government initiative to create a citywide autonomous driving test zone by 2026, deploying around 100 autonomous vehicles in the area. Currently, autonomous vehicles operate only in limited pilot zones across 47 areas rather than full urban environments.

The government aims to overhaul existing regulations including allowing the use of raw video footage for R&D, which is expected to improve recognition accuracy by up to 25 percent. Presently, laws require video footage to be pseudonymized, hindering data utility. Additionally, a new legal role called the autonomous vehicle safety manager will be introduced to clearly define criminal and administrative liabilities for Level 4 driverless vehicles, covering incidents such as signal breaches and hit-and-runs.

South Korea faces strong competition from the United States and China, where more extensive real-world testing and capital investments have accelerated industry advancement. In the global autonomous driving sector, 14 of the top 20 companies are based in the US, four in China, and only one each in Britain and Korea. To address potential conflicts with existing taxi operators, a tripartite consultation body will be formed involving the government, autonomous driving firms, and taxi representatives. The government aims to commercialize Level 4 autonomous vehicles by 2027.

Korea Herald | English | News | Nov. 28, 2025 | Regulation

South Korea’s ruling Democratic Party has introduced a special bill to implement a $350 billion US investment pledge, aiming to secure a retroactive tariff cut on Korean automobiles and parts from 25 percent to 15 percent starting November 1. The bill, titled “Special Act on Managing Korea-US Strategic Investments,” was submitted to the National Assembly less than two weeks after a joint fact sheet and a memorandum of understanding were signed between South Korea and the US. The legislation establishes frameworks and procedures for strategic investments, including the creation of a Korea-US strategic investment fund and a temporary corporation to manage it.

The bill requires that investments stay within an annual remittance cap of $20 billion out of the $200 billion pledged for US strategic sectors, ensures projects recommended by the US are “commercially reasonable,” and encourages priority for Korean vendors and personnel where possible. The legislation covers both the $200 billion in US strategic sector investments and a $150 billion commitment to the US shipbuilding industry. South Korean economic officials have emphasized the strategic importance of the investment for the country’s future growth and global economic positioning, while the Ministry of Economy and Finance noted the bill eases uncertainty for Korean exporters.

Opposition lawmakers from the People Power Party have criticized the bill for its structural flaws, warning it could place a financial burden on taxpayers due to a provision requiring the government to cover any investment losses. They also challenged the vague standard of “commercially reasonable,” defined by the US Investment Committee’s good faith, and expressed concern over weakened requirements for Korean project management. The opposition is calling for full National Assembly ratification of the US investment plan, citing constitutional provisions requiring legislative consent for treaties imposing significant financial obligations. The ruling party, however, is pushing forward without a set timetable for deliberation, hoping for bipartisan cooperation to pass a more comprehensive bill.

Experts remain divided on whether the US investment arrangement requires legislative ratification. Some argue that ratification could limit South Korea’s negotiating flexibility and that the National Assembly’s role should focus on oversight rather than a binding approval process. The Lee administration has warned that ratifying the memorandum could tie South Korea to unfavorable clauses, such as the revenue-sharing formula with the US, potentially undermining the country’s interests.