Domestic Politics
South Korea in October 2025: A month in review and what’s ahead
An analytical look at the main developments from October 1 to 28, 2025, and key outlook for November 2025
South Korea’s stock market soars, but institutional risk grows underneath
Equity boom driven by AI, semiconductors and shipbuilding masks fragile domestic demand and policy inertia
The illusion of strength: South Korea’s AI chip boom hides deeper reform risks
Export-driven growth sustains optimism and short-term confidence while slowing progress on fiscal and structural reform
Bank of Korea holds rate steady to curb housing risks, steady won
Third straight on-hold decision underscores Seoul’s focus on stability ahead of Trump visit and key US trade talks
Taiwan surges ahead as South Korea’s middle class loses purchasing power
As Taipei invests in innovation and fiscal prudence, Seoul risks stagnation amid chaebol dominance and debt
Bank of Korea chief rejects liquidity easing as Seoul housing pressures persist
Rhee Chang-yong aligns with Seoul’s Oct. 15 housing curbs, signaling policy restraint before this week’s rate decision
Symbolic governance erodes trust as South Korea’s fiscal populism expands
Rising employment and welfare spending fail to restore confidence among youth who view stimulus as political theater
South Korean CEOs seek Trump’s favor as labor risks rise at home
Yellow Envelope Act’s expansion of labor rights could expose corporations to industrial action over US investment plans
South Korea’s justice overhaul risks paralysis as politics outpace capacity
Rapid Democratic Party legislation is testing Seoul’s administrative capacity and raising concerns over governance
South Korea’s AI ambitions run up against infrastructure and governance failings
Science ministry audit reveals weak data systems and coordination problems that threaten Seoul’s AI leadership goals














