South Korea

Yonhap | English | News | Jan. 9, 2026 | Geopolitical Conflict and Disputes

South Korea's Defense Minister Ahn Gyu-back confirmed that preparations for the annual combined military drills with the United States are proceeding as planned, describing the exercises as a "lifeline" for the armed forces. These drills, conducted twice yearly under the names Freedom Shield and Ulchi Freedom Shield, are emphasized as defensive by both countries but condemned by North Korea as invasion rehearsals. Although currently set to continue without significant changes, Ahn left open the potential for adjustments based on political developments, especially if dialogue between Washington and Pyongyang resumes.

Regarding military modernization, Ahn stated that South Korea aims to deploy a nuclear-powered submarine by the mid-2030s, contingent on smooth progress in securing nuclear fuel through talks with the United States expected to conclude within two years. He also highlighted progress in South Korea's efforts to regain wartime operational control from Washington. The transfer, anticipated within President Lee Jae Myung's term ending in 2030, is advancing through a three-stage readiness verification process, with the Full Operational Capability phase expected to be completed by year-end and the final decision depending on the leaders of both nations.

TTA, 한중일 AI 네트워크 표준화 논의

ZD Net Korea | Local Language | News | Jan. 9, 2026 | UndeterminedTech Development/Adoption

Korea is advancing full-scale standardization cooperation with China and Japan to promote intelligent base stations (AI-RAN) and establish leadership in 6G technology. The Korea Information and Communications Technology Association (TTA) hosted the "75th Korea-China-Japan IMT Standards Cooperation International Meeting" in Busan from January 7 to 8, focusing on securing next-generation network technologies and global standardization efforts under the Ministry of Science and ICT's "Hyper AI Network Strategy."

During the meeting, TTA shared domestic R&D plans including AI-RAN infrastructure demonstration and deployment, and proposed expanding cooperation into Global South markets in the Asia-Pacific region. The parties agreed to begin AI-RAN standardization discussions at the Asia-Pacific Wireless Group (AWG) meeting in Brunei in April and to develop a detailed cooperation roadmap among Korea, China, and Japan. They also coordinated on 6G technical performance requirements ahead of the upcoming ITU-R international meeting in Geneva, where these requirements are expected to be finalized.

TTA emphasized establishing effective performance criteria based on 3GPP target values, highlighting the importance of service-specific requirements and new functions like AI and sensing for 6G networks. TTA Chairman Son Seung-hyun described the meeting as the first industry-led discussion on a global blueprint for AI-RAN deployment, stressing the need to secure standard governance for developing ultra-intelligent, high-performance networks essential for the AI superhighway.

Korea Institute for International Economic Policy | English | AcademicThink | Jan. 9, 2026 | UndeterminedDemographics

The global economy is experiencing a demographic shift characterized by low birth rates and aging populations, with South Korea encountering this trend at an accelerated pace. This demographic shock diminishes the labor force, making productivity growth essential for sustaining economic growth. The challenge lies in transforming the economy to generate higher output with fewer workers through innovation and efficiency. The report examines Korea’s situation by drawing lessons from Japan’s experience and analyzing how aging affects investment and productivity, emphasizing the critical role of intangible assets like technology and organizational know-how.

Japan’s experience reveals a sustained decline in investment rates as its population aged, dropping from around 40% of GDP in the 1970s to 26% by 2024, alongside sluggish productivity growth averaging 0.4% annually since 2012. Despite this, Japan increased labor participation by involving more women and elderly workers, moderating labor shortages. For Korea, with an investment rate currently at about 31.5%, similar downward pressure on physical investment is expected. Korea’s productivity must therefore improve significantly to compensate for a shrinking workforce and maintain growth.

To sustain a 2% annual GDP growth rate over the next 30 years, Korea must raise productivity growth from its current rate of approximately 0.7% to between 2.0%-2.5% if investment remains stable, or over 3.0% if investment declines as in Japan's case. Failure to increase productivity could result in zero or negative growth by the mid-2030s. Aging labor markets increase wages and encourage firms to pursue capital deepening by substituting labor with machines, automation, and AI, which can boost productivity if investment in intangible assets is efficient. However, declining investment efficiency, caused by factors such as regulatory inflexibility or lack of skilled workers, could nullify these gains and trigger a severe economic downturn.

Korea’s open economy benefits from global low interest rates, enabling cheaper foreign capital to support investment and soften the negative impacts of aging. Simulations indicate that, with access to global financial markets, productivity declines could be limited to 4%, compared to a 13% drop in a closed economy scenario. Policymakers must focus on improving investment efficiency by reforming tax and accounting rules to better incentivize intangible assets, strengthening risk-sharing mechanisms between the public and private sectors, enhancing digital infrastructure for faster technology diffusion, and maintaining financial openness to capitalize on global economic conditions. Additionally, lifelong learning initiatives are vital to keep an aging workforce productive and capable of complementing technological advancements.