South Korea

Yonhap | English | News | Dec. 12, 2025 | Supply Chain Issues

Senior diplomats from South Korea and the United States held the 10th Senior Economic Dialogue in Washington on December 10, focusing on enhancing economic security and securing "trusted" supply chains. The talks followed a bilateral trade and investment agreement finalized during President Lee Jae Myung and U.S. President Donald Trump's summit in late October. Both parties emphasized the need for joint economic security measures and discussed strengthening economic and national security alignment to maintain collective competitiveness and secure supply chains.

The two countries explored cooperation to address unfair trade practices and non-market policies, with particular attention on collaboration regarding critical minerals. U.S. official Jacob Helberg praised South Korea's leadership on resilient supply chains in regional and multilateral forums. The dialogue reaffirmed commitments made during summits in August and October, which have contributed to modernizing the U.S.-ROK Alliance.

Under the trade and investment deal, South Korea pledged to invest $350 billion in the U.S., including $150 billion in shipbuilding and another $200 billion in other sectors. In exchange, Washington agreed to reduce reciprocal tariffs on Korean goods from 25 percent to 15 percent. The State Department described the agreement as central to progress in reciprocal trade, energy security, shipbuilding, and emerging technologies. Discussions also covered South Korean investments in American manufacturing and efforts to facilitate Korean business travel to the U.S.

Yonhap | English | News | Dec. 12, 2025 | UndeterminedEconomic Growth

S&P Global Ratings projected that South Korea's economy will grow by 2.3 percent in 2026, indicating that the most challenging period for the country is likely over. The credit agency noted that overall credit conditions will remain difficult but expects modest improvement compared to 2025, based on more favorable global economic conditions and eased tariff pressures following a trade deal between South Korea and the United States in October 2025.

The agency highlighted that performance across key industries will vary, with the semiconductor sector expected to show strong results, while chemical companies may struggle due to oversupply and slower-than-anticipated restructuring efforts. S&P also indicated that changes in U.S. policies could impact South Korean firms, and ongoing U.S.-China trade tensions might create new business opportunities for South Korean companies.

코레일 노사, 성과급 정상화 등 잠정 합의…열차 정상 운행

Hankyung | Local Language | News | Dec. 12, 2025 | Strikes and Work Stoppages

Korail and the nationwide railway workers' union have reached a tentative agreement on wage negotiations, including the normalization of performance bonuses, leading to the provisional suspension of the railway workers' general strike. As a result, train operations returned to normal on December 11, avoiding the anticipated commuting disruptions. Initial negotiations began late on the 10th but broke down after 30 minutes; however, resumed talks overnight resulted in the union's decision to suspend the strike to minimize public inconvenience while continuing discussions on detailed wage issues.

The union’s key demands included normalizing performance bonuses, integrating high-speed rail operations, and enhancing safety measures. A major contention point centered on the criteria for performance bonuses, which currently reflect only 80% of base pay. The union criticized the Ministry of Economy and Finance for its unresponsiveness and highlighted repeated wage arrears totaling hundreds of billions of won for Korail employees. Although the strike has been suspended, the union’s right to industrial action remains, with a general strike still possible if the Ministry does not address the bonus normalization at the Public Institution Management Committee meeting scheduled for December 24.

Korail announced it had prepared extensive countermeasures for the potential strike, including a 24-hour emergency response headquarters, but normal train service was maintained due to the union’s last-minute suspension of industrial action. The ongoing negotiations reflect heightened tensions over wage and compensation management within public institutions.