South Korea

日, '독도 굿즈'까지 제작…관광객 상대로 판매

Hankyung | Local Language | News | Jan. 21, 2026 | Geopolitical Conflict and Disputes

Japan is escalating its sovereignty claims over Dokdo by selling various Dokdo-themed merchandise on Oki Island, Shimane Prefecture, a location described as a strategic base for Japan’s efforts to assert control over the islets. Items like sake cups, T-shirts, and badges bearing Dokdo motifs are openly sold at tourist spots including a shop inside the Oki Island passenger terminal, without restrictions.

Oki Island has also hosted rallies promoting Japan’s claim to Dokdo and installed related billboards. Since 2016, the Gumi Takeshima History Museum on the island has displayed testimonies and materials aimed at validating Japan’s sovereignty over Dokdo to local residents. Additionally, Japan has used symbolic gestures such as involving Oki Island in the Tokyo Olympics torch relay route to further its claims.

The continuous promotion of Dokdo as Japanese territory through public displays and merchandise is viewed as a tactic to normalize this perception among tourists. South Korean experts emphasize the need for a more concrete and systematic response strategy to counter these sustained Japanese efforts to assert sovereignty over the disputed islets.

Yonhap | English | News | Jan. 21, 2026 | Supply Chain Issues

Nearly 40 percent of South Korean companies participating in the global Renewable Energy 100 percent (RE100) initiative are facing difficulties in sourcing renewable energy due to high costs and limited procurement options. Among 183 South Korean firms involved, 70 reported challenges in securing enough renewable energy to power all their operations with 100 percent renewable electricity in 2024, showing an 80 percent increase from 39 companies in 2022.

The main obstacles cited are the cost burdens and lack of available procurement mechanisms. Compared to other major economies, South Korea's figure is significantly higher, with the United States reporting 20 companies, China 29, and Japan 48 facing similar issues in 2024.

In response, the Federation of Korean Industries (FKI) has recommended 20 policy agenda items to the government, aiming to support companies in the RE100 initiative. These include financial incentives for firms that directly purchase renewable electricity from power producers. The FKI emphasized the need to improve systems and policy support to help Korean companies remain internationally competitive while securing renewable energy.

Yonhap | English | News | Jan. 21, 2026 | UndeterminedTaxes

The South Korean government will introduce a temporary tax incentive in 2026 for retail investors who sell overseas stocks and reinvest the proceeds in domestic assets. Investors who convert the proceeds into Korean won and invest domestically for at least one year will be eligible for an income deduction on capital gains from overseas stock sales, which are currently taxed at 20 percent. The tax exemption is capped at 50 million won (approximately US$33,900) per person, with the deductible amount varying by the timing of the sale: 100 percent for sales in the first quarter, 80 percent in the second quarter, and 50 percent in the second half of 2026.

Additionally, a special tax benefit will be offered to retail investors investing in currency-hedged products, allowing a deduction of 5 percent of the investment amount from overseas stock capital gains, up to a cap of 5 million won per person. These measures are part of a broader package aimed at curbing continued net capital outflows by domestic investors, which have contributed to the depreciation of the Korean won against the U.S. dollar.