South Korea

Yonhap | English | News | Nov. 7, 2025 | Regulation

South Korea’s Fair Trade Commission (FTC) Chair Joo Biung-ghi has called for enhanced communication with foreign companies operating in South Korea to prevent "unnecessary misunderstandings." Speaking at a meeting with leaders from the American and European Chambers of Commerce and other foreign business groups, Joo stressed that consistent dialogue is crucial to improving the effectiveness and credibility of competition and consumer policies. He highlighted the importance of ongoing discussions due to differing legal systems and business environments among countries.

The meeting covered the FTC’s position on platform regulations and other unresolved matters, though specific details were not disclosed. One key issue is legislation aimed at curbing monopolistic practices of major global online platform operators. Joo noted challenges in immediately advancing such regulations, partly due to tariff-related negotiations with the United States. During these talks earlier in 2025, Washington expressed concerns over South Korea’s regulatory measures affecting online platforms.

President Lee Jae Myung has committed to preventing abuses of market dominance by global online platform companies through new regulations, including limits on commission fees and bans on unfair practices. Joo’s remarks indicate a balancing act between regulation development and maintaining international trade relations, particularly with the U.S.

Korea Herald | English | News | Nov. 7, 2025 | Geopolitical Conflict and Disputes

A joint fact sheet summarizing trade and security agreements between South Korea and the United States is expected to cite approximately $25 billion in U.S. arms sales to South Korea. The reported deal includes purchases of helicopters, fighter jets, airborne early warning and control aircraft, ballistic missile interceptors, and other defense equipment by 2030. However, the presidential office confirmed that terms have not yet been finalized, with final decisions dependent on government spending capacity and the security environment.

As part of a broader $350 billion investment package in U.S. projects, $200 billion will be allocated to commercially viable projects determined by an investment committee led by U.S. Secretary of Commerce Howard Lutnick. South Korea’s investment commitment will include an annual $20 billion ceiling to maintain foreign exchange market stability. The remaining $150 billion will support shipbuilding projects led by South Korean companies and include cash, loans, and guarantees.

In return, U.S. tariffs on South Korean-made cars will be reduced from 25 percent to 15 percent, aligning with the reciprocal tariff on other South Korean goods. Pharmaceuticals, lumber products, semiconductors, aircraft parts, and generic drugs will receive most-favored nation treatment or reduced tariffs.

Political disagreement exists regarding whether the agreement requires parliamentary ratification. The ruling party, led by Rep. Kim Byung-kee, is seeking a special bill to provide legal grounds for the $350 billion investment, asserting joint fact sheets and memorandums are not legally binding. In contrast, the main opposition People Power Party argues that given the significant financial impact, the agreement should be treated as a treaty requiring formal parliamentary ratification under the Constitution.

Joongang Ilbo | English | News | Nov. 7, 2025 | North Korea

Seoul and Washington are engaged in ongoing negotiations over the wording of a joint fact sheet summarizing the Oct. 29 Korea-U.S. summit in Gyeongju, with a particular focus on clauses related to nuclear-powered submarines. The release of the document, initially planned for Nov. 4, has been delayed due to internal U.S. government disagreements on nuclear nonproliferation and the transfer of sensitive technology. Both Korean Defense Minister Ahn Gyu-back and Finance Minister Koo Yun-cheol confirmed that coordination within the U.S. government is causing the holdup, especially concerning the security section of the fact sheet.

Tensions have emerged among U.S. departments including the State Department, Commerce Department, and Department of Energy regarding Korea's potential acquisition of nuclear-powered submarines. Defense Secretary Pete Hegseth affirmed that President Trump is leading efforts to facilitate the deal and that his department is working closely with other U.S. agencies to fulfill the commitment. The main sticking point involves whether a separate agreement beyond the existing bilateral nuclear accord is required, as well as potential additional security commitments Seoul might need to undertake.

The delay also led to an unusual situation where U.S. Defense Secretary Hegseth left Seoul without issuing a joint statement following the Security Consultative Meeting (SCM). Meanwhile, the nuclear-powered aircraft carrier USS George Washington arrived at the Busan naval base as planned for routine operations, but the timing was considered awkward given the unresolved fact sheet. South Korea’s government emphasizes that the term "nuclear-powered submarine" is used to highlight the peaceful intent behind the project, which covers all aspects of nuclear technology including fuel and small modular reactors.