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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Erudite Risk takes an all risks approach to intelligence reporting. We categorize key intelligence into one of 40 different risk intelligence categories.

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Trade minister urges not escalating Coupang case into trade dispute between S. Korea, U.S.

Yonhap | English | News | Jan. 16, 2026 | Geopolitical Conflict and Disputes

South Korean Trade Minister Yeo Han-koo has engaged with U.S. lawmakers and officials in Washington to ease concerns over South Korea's investigation into a major data breach at American-listed Coupang Inc. Yeo emphasized that the investigation, which is based on related laws, should not be misinterpreted as a trade dispute between South Korea and the U.S. During his meetings, Yeo addressed concerns from U.S. policymakers who described Korean regulatory actions toward Coupang and other U.S. tech firms as potentially discriminatory.

Coupang, founded by Korean American Bom Kim, recently experienced a data leak affecting around 34 million customers, or nearly two-thirds of South Korea's population. Despite being U.S.-listed, the company generates 90 percent of its sales in Korea. Yeo also discussed broader trade issues, including non-tariff barriers and the implications of a pending U.S. Supreme Court ruling on the legality of reciprocal tariffs imposed during the Trump administration.

In talks with U.S. Trade Representative Jamieson Greer, Yeo stressed the importance of South Korea not facing discriminatory treatment in light of the Supreme Court's decision, highlighting South Korea's status as one of the few countries with a trade agreement with the U.S. Yeo concluded by reaffirming Seoul's commitment to maintaining open communication with the U.S. government, Congress, and industries to manage risks related to digital trade and tariff policies.

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.

한·미 '디지털 규제' 평행선...통상압박 연결 우려

South Korea-US digital regulation at odds... concerns over linkage to trade pressure

ET News | Local Language | News | Jan. 16, 2026 | Regulation

On January 13, 2026, Yeoh Han-gu, Director General for Trade Negotiations at South Korea's Ministry of Trade, Industry and Energy, met with U.S. Congress members and officials in Washington DC to address concerns about South Korea's digital and platform regulations. The U.S. Congress criticized these regulations as discriminatory against American companies and suggested they might violate the Korea-U.S. trade agreement, with some members labeling actions related to the Coupang data breach as a "witch hunt" and likening legislative efforts to "censorship laws."

During his Washington visit, Yeoh engaged with key U.S. lawmakers, officials from the U.S. Trade Representative, influential think tanks such as CSIS and ITIF, and industry groups including the U.S. Coalition of Service Industries and National Foreign Trade Council. He emphasized that South Korea's regulations aim to protect public interest by preventing platform market abuse, safeguarding personal data, and strengthening user rights, applying equally to domestic and foreign companies, and cited enforcement in the Coupang case as legitimate legal action.

Despite these engagements, U.S. political circles remain skeptical, perceiving the regulations as targeted restrictions disproportionately affecting U.S. tech firms, raising concerns about non-tariff barriers, and hinting at potential trade investigations under Section 301 of the Trade Act. The situation has sparked worries that digital regulation could evolve into a broader source of economic uncertainty and strain Korea-U.S. trade relations.

In South Korea, lawmakers have responded with calls for a parliamentary investigation into Coupang. Research institutes, such as the Korea Institute for Industrial Economics and Trade, identify economic risks from digital regulation and trade pressures as the primary external threat to the Korean economy in 2026. Experts recommend developing mid- to long-term strategies that reconcile South Korea’s digital policy goals with international trade norms, highlighting the need to clearly communicate that regulations are non-discriminatory and modeled on universal standards like those of the European Union.

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