South Korea

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

Ukraine’s intelligence service reports that North Korea plans to send 12,000 workers to the Alabuga Special Economic Zone (SEZ) in Russia to manufacture drones. This aligns with an earlier NHK report suggesting a similar, though larger, potential deployment. The Alabuga SEZ is a key site for producing Shahed and Albatross drones, heavily used by Russia in its war against Ukraine.

North Korea has already sent various types of workers—soldiers, construction crews, researchers—to Russia since the conflict began, highlighting expanding economic and military cooperation. The labor shortage at Alabuga is significant, and the SEZ has engaged in aggressive recruitment efforts, including programs targeting young women from low-income countries, often under deceptive and exploitative conditions.

New worker accommodations at Alabuga SEZ have expanded substantially, with infrastructure likely able to house up to 13,840 workers, fitting closely with the projected North Korean workforce numbers. The conditions resemble those reportedly experienced by North Korean workers abroad in China, suggesting long-term, controlled housing setups. The North Korean workers will probably endure extensive work hours and low wages similar to those experienced by other foreign laborers in the SEZ.

Technical and research personnel may also be among those deployed by North Korea, which could allow them to transfer knowledge about drone manufacturing and improvements made on the Shahed 136 drones. The recruiter company has ties to Iranian defense firms, connecting this labor deployment to North Korea’s broader arms production ambitions.

Since November 2024, North Korean leader Kim Jong Un has emphasized increased production of suicide drones, corresponding with the type produced at Alabuga. Thus, North Korea’s involvement in Russian drone manufacturing likely serves to enhance its domestic capabilities. This development reflects deeper North Korean entanglement in the Ukraine conflict and poses significant implications for the proliferation of drone technology and future military balances, particularly on the Korean Peninsula.

“가전제품 사면 보조금 줄게”…돈 쏟아부은 중국, 제조업 일단 반등

Maekyung | Local Language | News | Jan. 2, 2026 | UndeterminedEconomic Growth

China's manufacturing sector entered expansion territory in December 2025, with the official Purchasing Managers’ Index (PMI) rising to 50.1, surpassing market expectations and ending eight months of contraction. Both manufacturing and non-manufacturing sectors showed growth, with the composite PMI reaching 50.7, the first simultaneous expansion in manufacturing and services in 2025. Private-sector data also confirmed this positive momentum, indicating broad improvement across manufacturing, including small and medium-sized enterprises.

Despite these encouraging signs, some analysts caution that the rebound may be influenced by temporary factors such as year-end fiscal spending and policy effects, making it premature to declare a structural economic recovery. Indicators like investment, consumption, and industrial production remain weak. Price trends are mixed: the Consumer Price Index rose by 0.7% year-on-year driven by increasing food prices, marking a shift from previous deflation, while the Producer Price Index continued to decline, indicating persistent deflationary pressures on producers.

The Chinese government plans to sustain its growth-supporting policies in 2026, including subsidies for home appliance, electronics, and electric vehicle purchases. Initial funding of 62.5 billion yuan in special treasury bonds has been announced to support these efforts, following a record 300 billion yuan in subsidies in 2025. Additional fiscal measures include value-added tax exemptions on certain property sales and electricity price reductions in major industrial provinces like Jiangsu and Guangdong to reduce costs for businesses. Further subsidy allocations will depend on evolving economic conditions throughout the year.

美정부 "韓 허위조작정보법, 심각한 우려...표현 자유 훼손"

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

The U.S. government has expressed serious concerns about South Korea's recent amendment to the Information and Communications Network Act, which targets false and manipulated information. The U.S. State Department warned that the law could negatively impact U.S.-based online platforms and undermine freedom of expression, urging South Korea not to impose unnecessary barriers in the digital services sector.

The department highlighted the potential extraterritorial effects of the law, cautioning that it might lead platforms to engage in prior censorship to avoid penalties. This, they argued, could encourage a global trend of regulatory censorship that threatens freedom of expression both within South Korea and internationally. The U.S. called on South Korea to carefully review the law to prevent such negative outcomes.

Additionally, U.S. State Department Deputy Secretary Sarah Rogers voiced concerns that, despite the law’s stated focus on combating defamatory deepfakes, its broad scope could jeopardize technological cooperation between the two countries. This public critical stance by the U.S. government suggests continued controversy surrounding laws addressing false and manipulated information.