South Korea

Joongang Ilbo | English | News | Dec. 2, 2025 | North Korea

North Korean leader Kim Jong-un pledged new missions and strategic military assets for the Korean People's Army Air Force during an event commemorating its 80th anniversary on November 28, 2025. He emphasized the air force’s role in the country’s nuclear deterrence and modernization efforts, though he did not specify the exact new assets being deployed. Military sources suggest these assets likely include long-range air-to-ground missiles mounted on Su-25 aircraft.

Photos released show a missile resembling Germany’s Taurus KEPD 350 or Russia’s Kh‑59MK2 cruise missiles, capable of striking targets from beyond an adversary’s air defense range. Analysts believe North Korea aims to extend the operational reach of its aircraft through these long-range precision strike capabilities, potentially bypassing South Korean and U.S. air defense systems. Additionally, a new domestically produced air-to-air missile, similar to the German IRIS-T or China’s PL-12, was displayed on a MiG-29 fighter jet.

The event also unveiled two strategic reconnaissance drones, the Saetbyeol-4 and Saetbyeol-9, North Korea’s versions of the U.S. Global Hawk and Reaper drones respectively. Kim Jong-un highlighted the importance of countering reconnaissance and military provocations, referencing the unmanned aircraft operations over Pyongyang in late 2024. North Korea has not showcased any anti-drone weapons, but the leader stressed the need to repel espionage and incursions into its airspace with strong offensive and defensive measures.

Kim’s daughter Ju-ae attended the event, marking her first public appearance in about three months. The South Korean special counsel indicted former President Yoon Suk Yeol and others for espionage related to the drone incident near Pyongyang. North Korea’s foreign ministry released a strong statement condemning South Korean provocations following those incidents.

與, 모든 기업 법인세율 1%P 인상 강행

Hankyung | Local Language | News | Dec. 2, 2025 | Regulation

The South Korean government will proceed with amending the Corporate Tax Act to uniformly increase the corporate tax rate by 1 percentage point across all company sizes, effective from December 1, 2025. This increase applies to all four income brackets, moving rates from 9%, 19%, 21%, and 24% to 10%, 20%, 22%, and 25%, respectively. The ruling Democratic Party of Korea successfully pushed this, despite opposition from the People Power Party, which sought to exclude small and medium-sized enterprises (SMEs) from the hike. The opposition’s attempts to maintain lower rates for SMEs were rejected, leading to criticism of the ruling party as imposing a "tax dictatorship." The estimated additional revenue from this tax adjustment is approximately 18 trillion won over five years.

Alongside the corporate tax amendment, the Education Tax Act will also be revised to double the tax rate on profits exceeding 1 trillion won for financial companies, from 0.5% to 1%. This change is expected to generate about 1.2 trillion won more annually from around 60 financial institutions. The government and ruling party justify this as necessary tax normalization to align with financial companies' increased profitability and allocate funds toward talent development. The opposition regards this as a punitive "windfall tax" that disrupts corporate planning.

In addition, the National Assembly’s Strategy and Finance Committee approved other budget-related bills, including amendments to the Restriction of Special Taxation Act. These include a new dividend tax structure with rates ranging from 14% to 30% based on dividend income levels. Regarding mutual finance institutions, lawmakers agreed to relax the non-taxable income threshold for quasi-members from the government's proposed 50 million won to 70 million won, reflecting sensitivity to local constituency concerns. This marks some compromise between parties on tax policy outside the corporate and education tax amendments.

Chosun Ilbo | English | News | Dec. 2, 2025 | Geopolitical Conflict and Disputes

Tensions between China and Japan have intensified after Japanese Prime Minister Sanae Takaichi suggested possible Japanese military intervention in a Taiwan contingency. In response, Chinese Ambassador to Japan Wu Zanghao demanded that Japan retract these comments in a People’s Daily op-ed, accusing Takaichi of misjudging the situation and violating the One-China Principle and post-World War II international order. Wu emphasized Taiwan as an inseparable part of China’s territory and condemned any external interference, warning that Japan’s stance could provoke severe consequences.

The controversy escalated with Takaichi’s statement to the Japanese House of Representatives that a Taiwan crisis could justify Japan’s exercise of collective self-defense, implying readiness for military action. China increased diplomatic pressure, including provocative remarks by Chinese Consul General Xue Jian and economic measures such as travel and study advisories against Japan. Data shows a 16% reduction in Chinese airline flights to Japan in December, reflecting strained bilateral ties.

Military activity around Taiwan remains high, with Taiwan’s Defense Ministry reporting significant Chinese military aircraft incursions and naval operations near Taiwan over recent days. Satellite analysis indicates coordinated Chinese fighter jets and warships encircling Taiwan from multiple directions, signaling ongoing Chinese military posturing in the region.