South Korea

Korea Herald | English | News | Dec. 12, 2025 | North Korea

North Korea convened the 13th Enlarged Plenary Meeting of the Eighth Central Committee of the ruling Workers’ Party of Korea on December 9, presided over by leader Kim Jong-un. The session brought together senior party officials, government ministries, provincial leaders, and military commanders to review state policy implementation and prepare for the Ninth Party Congress expected in early 2025. The upcoming congress, held every five years, is anticipated to set the roadmap for economic management, military development, and foreign policy toward Seoul and Washington. The plenary session, originally expected mid-December, was moved up to accelerate these preparations.

Following the start of the plenum, North Korea fired around 10 artillery rockets into the Yellow Sea, likely from a 240 mm multiple rocket launcher system, as part of its annual winter training drills. The rockets have the capability to reach Seoul and surrounding areas. This launch occurred shortly after South Korea reported incursions by Chinese and Russian military aircraft into its air defense identification zone, suggesting a possible signal of solidarity with Beijing and Moscow amid growing trilateral military cooperation.

The plenum resulted in the approval of discussions on five agenda items, including finalizing preparations for the upcoming congress and reviewing the five-year economic plan adopted in 2021. Analysts expect limited public disclosures from this meeting, reserving major policy announcements for the formal party congress. Key points under observation include the potential institutionalization of "Kim Jong-un’s revolutionary thought" as an official guiding ideology, the possible revival of the abolished state presidency system to strengthen Kim's authority, and the formal adoption of the "two-state theory" in the party charter, signaling a shift to treating South Korea as a hostile foreign state rather than a divided nation.

Additional interests include signs of internal reforms, such as anti-corruption measures, tighter party discipline, or reorganization of economic and administrative bodies, as Kim prepares his governance priorities for the next five years. The regime appears to be maintaining a calm, domestically focused stance ahead of the congress, emphasizing internal party management over external messaging.

Joongang Ilbo | English | News | Dec. 12, 2025 | UndeterminedFinancial System Problems

In November 2025, overall household loan growth in South Korea slowed to an increase of 4.1 trillion won compared to 4.9 trillion won in October, driven by tighter banking regulations and a government-imposed annual cap. However, nonbank institutions such as insurance companies, mutual finance firms, and credit card companies saw a significant surge in lending, rising by 64 percent from 1.4 trillion won to 2.3 trillion won. Mutual finance firms contributed 1.4 trillion won to this growth, with insurers adding 500 billion won.

The slowdown was especially pronounced in bank-issued mortgage loans, which fell from 2 trillion won in October to 700 billion won in November, the lowest since March 2022. In contrast, mortgage loans from nonbank institutions increased sharply from 1.2 trillion won to 1.9 trillion won, fueled by strong demand in Seoul and surrounding real estate markets. While regulatory measures have slowed housing price increases overall, some key areas continue to experience steady or rising prices.

Other loan categories, including unsecured loans, also grew, reaching 1.2 trillion won in November, supported by increased investment activity in domestic and overseas stock markets, although volatility concerns remain. Financial authorities postponed the third phase of the stress debt service ratio (DSR) regulation for home loans in nonmetropolitan areas by six months, allowing existing, less stringent rules to apply through June 2026 due to sluggish housing markets outside the capital region. The stress DSR applies a hypothetical higher interest rate to ensure borrowers’ ability to repay under adverse conditions, helping to maintain financial stability.

Yonhap | English | News | Dec. 12, 2025 | North Korea

Senator Andy Kim, a Korean American lawmaker from New Jersey, expressed serious concerns over the recent U.S. National Security Strategy (NSS) for its "deprioritization" of the Korean Peninsula. He criticized the strategy for omitting a U.S. commitment to North Korea's denuclearization and for failing to recognize Russia as a threat, warning that such omissions could lead the U.S. and its allies "down a very dangerous path." Kim argued the strategy effectively reduces America's global role to that of a regional power, which he believes is the wrong direction for U.S. national security.

The NSS, released by the Trump administration, prioritizes reasserting American influence in the Western Hemisphere, deterring conflict over Taiwan, and promoting burden-sharing with allies. Regarding concerns about a possible U.S. troop reduction in South Korea, Kim highlighted the fiscal year 2026 National Defense Authorization Act (NDAA), which includes measures to prevent unilateral withdrawal of U.S. Forces Korea (USFK) personnel. The House has passed the NDAA, and the Senate is expected to approve it, after which it will require the President's signature to become law.

Kim emphasized that decisions about troop levels should involve consultation with South Korea, underscoring the importance of partnership and strategic alliance. He pledged strong opposition to any efforts by the current administration to reduce U.S. forces in South Korea without allied and congressional agreement. Recently, U.S.-South Korea joint documents omitted language committing to maintaining the current 28,500 USFK troop level, raising concerns over potential future reductions.

The press conference marked one year since Kim became the first Korean American senator, a milestone that raised hopes for his influential role in supporting the Korean American community, strengthening the Seoul-Washington alliance, and addressing North Korea's nuclear threat. Kim's extensive foreign policy background includes service at the National Security Council, Pentagon, State Department, USAID, and advisory roles to top generals in Afghanistan.