South Korea

전기차 국고 보조금 최대치 580만→680만원…내연차 교체 조건

ZD Net Korea | Local Language | News | Jan. 2, 2026 | Regulation

Starting in 2026, the maximum national subsidy for electric passenger cars in South Korea will increase from 5.8 million won to 6.8 million won, contingent on replacing an internal combustion engine vehicle and receiving an additional conversion support payment of up to 1 million won. The Ministry of Climate, Energy and Environment has introduced this subsidy reform plan to sustain the growth trend in electric vehicle adoption after a stagnation period in 2023-2024, supported by a total budget of 1.5953 trillion won allocated to various electric vehicle categories and conversion incentives.

The new conversion support payment applies to internal combustion vehicles used for more than three years, excluding hybrid vehicles and certain transfers between family members. Alongside passenger cars, subsidies will now also support small electric passenger vans and medium- to large-class electric commercial vehicles, with increased maximum subsidies ranging from 15 million won to 60 million won depending on vehicle type and use, including a special payment for school transport vans.

Performance and price standards for subsidy eligibility will become stricter from 2026, including raised charging speed and battery energy density requirements. The full subsidy price threshold for small-class electric commercial vehicles is set at 85 million won, while that for electric passenger cars is lowered from 53 million won to 50 million won. Additional support will be provided for advanced charging technologies such as vehicle-to-load (V2L), payment-and-charge (PnC), and vehicle-to-grid (V2G) functions.

To ensure sustainability and prevent abuse of subsidies, the government will evaluate not only electric vehicle deployment but also the roles and contributions of manufacturers and importers starting July 2026. A new safety requirement mandates electric vehicle fire safety insurance to cover third-party damages during parking and charging. Additional subsidy support of 2 million won will be granted for vehicles equipped with wheelchair boarding equipment to aid transportation-disadvantaged individuals.

The Ministry plans to collect public and industry feedback on the subsidy reform and release detailed evaluation criteria by March, with implementation from July. These measures aim to accelerate the transition from internal combustion engines to electric vehicles and support the growth of a sustainable domestic electric vehicle ecosystem.

38 North | English | AcademicThink | Jan. 2, 2026 | North Korea

The increasing visibility of Kim Jong Un’s daughter, Kim Ju Ae, amid uncertainties about his health, has sparked speculation about North Korea’s future leadership. While her public role is unprecedented and may hint at succession plans, historical patterns suggest caution, as previous transitions involved complex elite management, propaganda, and military demonstrations to establish legitimacy. A female successor would face notable challenges in DPRK’s patriarchal society, whereas a male heir might receive broader acceptance but still requires political and military credentials. The timing and nature of the succession process could vary, resembling either a lengthy apprenticeship like Kim Jong Il’s or a rapid ascendancy as with Kim Jong Un.

Past successions in North Korea showed distinct approaches shaped by differing domestic and international contexts. Kim Jong Il’s rise (1970s-1994) occurred during a relatively stable era that allowed gradual consolidation of power through ideological campaigns linking his legitimacy to his father Kim Il Sung. In contrast, Kim Jong Un’s succession (2008-2011) happened amid international isolation and economic challenges, with his father accelerating the transfer of power due to deteriorating health, elevating a new generation of loyal elites while sidelining old guard figures like Jang Song-thaek.

Military leadership credentials have been critical in legitimizing North Korean rulers. Kim Jong Il bypassed direct military experience by leveraging propaganda tied to his father’s legacy and instituted “military-first” policies to reinforce his regime. Kim Jong Un lacked traditional military credentials and instead “invented” military authority early on through appointments and demonstrations of force, such as the 2010 Yeonpyeong artillery strike and subsequent missile tests, to consolidate control and signal regime strength.

Current internal dynamics reveal a potential rivalry between Kim Ju Ae and Kim Jong Un’s sister, Kim Yo Jong, who holds significant party influence and is considered a viable immediate successor if Kim Jong Un dies suddenly. However, ideological norms favoring male heirs and generational transfer theories elevate Kim Ju Ae’s candidacy over Kim Yo Jong’s long-term prospects. The existence of a possible son adds complexity, as patriarchal norms could make a male successor more acceptable. Kim Jong Un himself faces the delicate task of empowering a successor without undermining his own authority, a balancing act influenced by lessons from past transitions and the risk of accelerated power shifts.

Signs of an emerging succession process may include intensified propaganda showcasing the successor’s military and political roles, reorganization of elites loyal to the heir, and policy initiatives aimed at consolidating power and addressing socio-economic and security challenges. The successor will likely continue “military-first” policies, using military demonstrations both as legitimacy tools and means to suppress dissent within the armed forces. Resistance from within the military could lead to further purges to solidify control.

Several scenarios could unfold: in the short term, a politically established figure like Kim Yo Jong might take over in the event of Kim Jong Un’s sudden incapacitation, while younger heirs remain unprepared. If a male heir emerges, patriarchal societal norms suggest the female successor’s prospects diminish. Even though the number of women in leadership roles has increased, significant political power remains unlikely for female delegates under existing structures, with conservative party factions poised to influence succession outcomes.

Understanding the historical patterns and tactical dynamics of past North Korean successions is crucial for anticipating future developments. While no succession process is predetermined, recognizing indicators such as elite reshuffling, propaganda shifts, and military activity can help policymakers prepare for potential transitions. A nuanced grasp of these factors will support more proactive and informed international responses, mitigating risks and seizing opportunities during North Korea’s eventual leadership change.

Joongang Ilbo | English | News | Jan. 2, 2026 | Regulation

Starting May 1, 2026, a larger number of Korean listed companies will be required to submit regulatory filings in English. The threshold for mandatory English disclosures will expand from firms on the Kospi with assets of 10 trillion won or more to those with assets of at least 2 trillion won. This aims to enhance transparency and accessibility for foreign investors, improving the competitiveness of the local capital market.

In March 2026, the "Yellow Envelope" law, a revision to the Labor Union Act, will take effect. This law is designed to protect the bargaining rights of indirectly employed subcontractor workers and bans companies from suing unionized workers for damages or seeking provisional seizures—practices previously used to suppress strikes. The legislation is expected to increase compliance burdens, particularly for large conglomerates and foreign firms relying heavily on subcontracting.

The minimum wage in Korea will rise by 2.9 percent to 10,320 won per hour in 2026, raising the minimum monthly labor cost to 2.15 million won. Additionally, the government plans to expand tax incentives for reshoring Korean companies and extend eligibility to firms that downsize overseas operations within four years after establishing or expanding domestic facilities.

Foreign companies operating liaison offices in Korea will face stricter regulatory compliance, including fines of up to 10 million won for failing to submit required status reports or providing false information under newly introduced rules.