South Korea

Intelligence for Better Decision Making

Seoul Bus Strike Resolved After Wage Deal Restores Citywide Service
Jan. 16, 2026 | Transportation & Logistics

Seoul’s extensive bus network ground to a halt in a citywide strike triggered by stalled wage negotiations.

**The strike began at 4 a.m. on Tuesday, January 13, after talks between the Seoul City Bus Labor Union and the Seoul Bus Transport Association broke down.**
At its height, approximately 93 percent of the city’s 7,018-strong fleet lay idle, with only 562 buses operating and commuters left scrambling in a metropolis that relies heavily on public transport.

**Negotiations resumed the next day at the Seoul Regional Labor Relations Commission in Yeongdeungpo-gu, where public-interest mediators stepped in following the previous day’s impasse.**
After more than nine hours of intense discussion, negotiators reached an agreement around 11:50 p.m. on Wednesday, January 14, ending the two-day walkout and allowing services to resume at 4 a.m. on Thursday, January 15.

**Under the deal, drivers will receive a 2.9 percent base wage increase for 2026—well above the city management’s initial 0.5 percent offer but just shy of the union’s 3 percent demand.**
The agreement also phases in an extension of the retirement age, raising it from 63 to 64 in July 2026 and then to 65 in July 2027. The parties agreed to postpone discussions about incorporating regular bonuses into ordinary wages, leaving that issue on the table for future talks in light of a December 2024 Supreme Court ruling.

**During the stoppage, Seoul city authorities rolled out emergency transport measures to ease the strain on commuters.**
They extended subway operating hours, increased peak-hour train frequency, deployed empty trains to reduce platform crowding, and doubled safety personnel at major stations. The city also chartered and operated 677 shuttle buses on Tuesday and 763 on Wednesday, carrying more than 86,000 passengers along halted bus routes. These interventions cost roughly 10 billion won (about $6.8 million) per day. Once buses returned to service on Thursday morning, officials lifted all emergency provisions and reverted to normal schedules.

**The strike brought deeper structural challenges in the semi-public bus operation system into sharp relief.**
The city covers annual budget deficits estimated at around 600 billion won and could face further strain if future wage demands materialize. Critics warn that unresolved questions over ordinary wage definitions and the funding model for semi-public operations may trigger fresh disputes, especially given the municipal budget injections during the COVID-19 pandemic and their lasting impact on city finances.

**Union chairman Park Jeom-gon apologized to citizens for the disruption and expressed hope for smoother negotiations ahead, while Seoul Bus Transport Association chair Kim Jeong-hwan welcomed the resolution despite regret over the strike’s duration.**
Mayor Oh Se-hoon praised both sides for their conduct and reaffirmed the city’s commitment to strengthening labor-management trust and ensuring reliable public transportation.
North Korea Demands Apology Amid Escalating Drone Incursion Dispute
Jan. 15, 2026 | Geopolitics & Defense

Tensions between North and South Korea have escalated following allegations of unauthorized drone flights and a subsequent demand for an apology from Pyongyang.

**Kim Yo-jong, deputy head of the North Korean Workers’ Party and sister of leader Kim Jong-un, rejected South Korea’s overtures for renewed communication after accusing Seoul of sending unmanned aerial vehicles (UAVs) into North Korean airspace.**
She dismissed any hopes for improved inter-Korean relations as a “pipe dream and delusion,” described the South Korean government’s response as “pitiful,” and warned that further provocations would trigger consequences far more severe than mere verbal threats or proportional retaliation.

**North Korea claims that on January 4, a surveillance-equipped drone violated its airspace over Ganghwa-gun, Incheon, representing a serious breach of sovereignty.**
Pyongyang first announced the incident on January 10 through the Korean Central News Agency, demanding a formal acknowledgment and apology from Seoul. Kim Yo-jong reiterated that any repeat incursions would exact an “unbearable price,” insisting her warning was not idle rhetoric.

**South Korea’s Ministry of National Defense denies owning or deploying the drone and has launched a joint military-police investigation to trace its origin, even considering that civilian operators, rather than the military, could be responsible.**
Unification Minister Chung Dong-young said Seoul remains open to dialogue once inquiries conclude and North Korea responds. He criticized Pyongyang’s choice to air its accusations via state media instead of through established inter-Korean channels, calling that approach “unnatural and abnormal.” Chung added that South Korea might issue an official apology for drone deployments in 2024 under the previous administration—an option now under legal review—and noted that the investigation’s findings will guide any further actions, echoing past expressions of regret after the 2020 killing of a South Korean government employee in the Yellow Sea.

Monitored Intelligence for South Korea - Jan. 16, 2026


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Philippines taps Korean weapons to bolster deterrence as South China Sea clashes surge

Joongang Ilbo | English | News | Jan. 16, 2026 | South China Sea

Amid rising tensions and confrontational incidents averaging 12.1 per month between Philippine and Chinese law enforcement vessels in the South China Sea from August 2024 to May 2025, the Philippines is accelerating its military modernization program by procuring advanced Korean weapons systems. The country is focusing on naval and aerial defense upgrades under the Horizon Military Modernisation Programme, with a $35 billion budget allocated to the current phase, Re-Horizon 3. This includes purchasing frigates, patrol vessels, and advanced fighter jets to strengthen deterrence against China.

Philippine naval forces have a longstanding relationship with Korean shipbuilder HD Hyundai Heavy Industries (HHI), which has delivered multiple frigates since 2016, including the Jose Rizal-class and Miguel Malvar-class vessels. Recently, HHI secured a new $571 million contract to supply two next-generation frigates, mirroring a previous $573 million deal. The Philippine Navy values HHI’s ships for their technological reliability and cost-effective maintenance within the country. The Navy is also looking to acquire at least two diesel-electric submarines with a budget of up to 110 billion Philippine pesos, considering offers from France’s Naval Group, Hanwha Ocean, and potentially HD HHI.

In the air domain, the Philippines relies heavily on Korean Aerospace Industries (KAI) for its light fighter jets. The FA-50PH, a Philippine variant of KAI’s FA-50 light fighter, has been integral to its airpower and counterterrorism operations. A recent $64 million contract was signed to upgrade these jets with enhanced range and active electronically scanned array radar. For future multirole fighter jet acquisitions, the Philippines is evaluating KAI’s KF-21 stealth-compatible jet and the Gripen E/F, with the KF-21 favored for its cost and performance potential. However, official proposals have yet to be requested, and financial arrangements remain a critical factor.

To facilitate large-scale Korean defense exports, Seoul is exploring strategic export finance options beyond the current limits of the Export-Import Bank of Korea, which caps support at 40 percent of the buyer’s equity capital. Proposed mechanisms, such as subscription-like payment programs, could help emerging nations like the Philippines manage financial burdens when acquiring advanced Korean defense systems.

Media watchdog asks X to set up minor protection measures for AI chatbot Grok

Yonhap | English | News | Jan. 16, 2026 | Privacy

South Korea's media watchdog, the Korea Media and Communications Commission (KMCC), has requested the U.S.-based social media platform X to implement measures protecting minors from sexual content generated by the AI model Grok. The request comes amid rising concerns about the creation and distribution of deepfake sexual content through AI platforms.

The KMCC emphasized that under South Korean law, social network operators like X must appoint an official responsible for minor protection and submit annual reports on these efforts. The commission highlighted that producing, sharing, or storing sexual deepfake content without consent is punishable by criminal law.

KMCC Chairperson Kim Jong-cheol stated that the commission aims to support the safe development of new technologies while planning to introduce regulations and policy reforms to prevent the spread of illegal information, including sexual abuse content. These measures include requiring AI service providers to actively protect minors from harmful content.

Korea, China and Japan must find ‘common ground’ and communicate, says Lee

Hankyoreh - E | English | News | Jan. 16, 2026 | Geopolitical Conflict and Disputes

President Lee Jae Myung and Japanese Prime Minister Sanae Takaichi held a summit in Nara, Japan, emphasizing the importance of Korea-Japan cooperation and trilateral collaboration with the US to address rapidly changing international conditions. Both leaders agreed on the need for coordinated responses to the Korean Peninsula situation and discussed a broad range of regional and global issues. Lee highlighted the necessity for South Korea, China, and Japan to find common ground, communicate, and cooperate to maintain regional peace and stability.

The summit took place amid escalating tensions between China and Japan, following Japan’s consideration of military intervention in a Taiwan contingency and China’s subsequent military and economic pressure on Japan, including restrictions on rare earth exports. Lee stressed South Korea’s neutral stance, affirming the equal importance of relations with both China and Japan and expressing a desire to play a stabilizing role without taking sides.

The two leaders also reaffirmed their commitment to the complete denuclearization of the Korean Peninsula and the establishment of lasting peace, agreeing to continue close coordination on North Korea policy. Takaichi acknowledged Lee’s support regarding the resolution of the abductions issue involving Japanese citizens taken by North Korea. Discussions on supply chain cooperation were held, particularly concerning China’s rare earth export restrictions to Japan, though Lee avoided directly addressing this sensitive topic.

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