South Korea

Yonhap | English | News | Jan. 9, 2026 | Regulation

The Ministry of Trade, Industry and Resources in South Korea held a meeting with the steel industry on January 8 to discuss response measures to the European Union's Carbon Border Adjustment Mechanism (CBAM), which began on January 1. The CBAM imposes taxes on carbon-intensive goods imported into the EU, including steel, aluminum, cement, and fertilizers, with plans to expand these levies to items like auto parts, refrigerators, and washing machines starting in 2028.

South Korea's major steelmakers have developed preliminary strategies to ensure compliance with the CBAM, including obtaining carbon emission verification from domestic institutions recognized by the EU. However, they requested ongoing government support to mitigate uncertainties as the EU's carbon tax policy is expected to evolve.

The Ministry highlighted its intent to continue consultations with the EU throughout the year to address potential revisions to the CBAM and protect the interests of Korean industries. Lee Jae-keun, the ministry's director general for new trade strategy and policy, emphasized the importance of using this dialogue to respond effectively to the changing regulatory landscape.

'홈플러스 사태' 김병주…검찰, 구속영장 청구

Hankyung | Local Language | News | Jan. 9, 2026 | Political Scandal or Corruption

Prosecutors investigating the "Homeplus incident" filed an arrest warrant request for MBK Partners Chairman Kim Byung-joo on January 7, nearly eight months after receiving the case from financial authorities. The Seoul Central District Prosecutors' Office also requested arrest warrants for four other individuals, including Homeplus CEO Kim Kwang-il and other MBK executives, citing charges of fraud and violations of the Capital Markets Act. Prosecutors cited the risk of evidence destruction and potential flight due to frequent overseas travel by the suspects.

The charges stem from allegations that MBK and Homeplus issued large-scale bonds despite anticipating a credit rating downgrade, then abruptly filed for corporate rehabilitation, causing losses to bond investors. Homeplus issued 82 billion won in electronic short-term bonds on February 25, 2026, but its credit rating dropped three days later, followed by a rehabilitation filing on March 4. Subsequent downgrades led to severe financial distress, including the suspension of operations at 10 Homeplus stores nationwide.

Prosecutors uncovered evidence that MBK executives were informed of Homeplus's operating losses and impending credit rating downgrade well before the rehabilitation filing. The investigation was fast-tracked from the Financial Supervisory Service in April 2025, with multiple search-and-seizure operations conducted at Homeplus, MBK headquarters, and Chairman Kim's residence. Chairman Kim has been under a travel ban during the investigation.

Following summons investigations of key executives completed in December 2025, prosecutors moved to request arrest warrants. MBK Partners responded by denying all charges, asserting that the prosecution misunderstood the intent and actions of the major shareholder in trying to revive Homeplus during its financial difficulties, and pledged to present a full defense in court.

[단독] 靑, 10대 그룹 사장단 만난다…청년 고용 당부할 듯

Hankyung | Local Language | News | Jan. 9, 2026 | UndeterminedEmployment

On January 9, 2026, the Blue House will hold a meeting with the presidents of the top 10 South Korean conglomerates to review this year’s investment and employment plans, with a focus on encouraging expansion. Attending CEOs will represent major groups including Samsung, SK, Hyundai Motor, Lotte, POSCO, Hanwha, HD Hyundai, GS, and Hanjin. Blue House officials such as Policy Office Director Kim Yong-beom and Senior Secretary for Economic Growth Ha Jun-gyeong will participate.

The meeting’s main agenda is to promote youth employment amid rising concerns, as the number of "inactive" youth in their 20s and 30s reached record levels by November 2025. The Blue House is expected to urge companies to expand youth hiring and discuss necessary policy supports, including proposed incentives like tax benefits for businesses increasing youth employment. This follows a previous plan that resulted in 40,000 youth hires last year.

In addition to employment, the Blue House will address regional investment as part of the national strategy to promote balanced regional development under President Lee Jae-myung’s "5 hubs and 3 special zones" framework. Tax incentives for regional investment will be reviewed to generate jobs in key regions. This initiative aligns with the government’s ongoing efforts to integrate Gwangju-Jeonnam and Daejeon-Chungnam for economic cohesion, reinforcing the President’s stated goal to accelerate balanced regional growth.