{"id":2199847,"date":"2023-01-06T08:52:10","date_gmt":"2023-01-06T08:52:10","guid":{"rendered":"https:\/\/www.nknews.org\/koreapro\/?p=2199847"},"modified":"2023-04-05T16:10:25","modified_gmt":"2023-04-05T07:10:25","slug":"rok-2023-what-to-expect-for-south-koreas-economy-and-society-in-the-year-ahead","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2023\/01\/rok-2023-what-to-expect-for-south-koreas-economy-and-society-in-the-year-ahead\/","title":{"rendered":"ROK 2023: What to expect for South Korea\u2019s economy and society in the year ahead"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">Now that it\u2019s a new year, all eyes are turned to see what 2023 will bring for South Korea. While South Korea grapples with supply chain issues and global inflation, it is surrounded by potential economic pitfalls and political challenges on the domestic front.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, the Yoon administration and the ruling People Power Party remain in partisan gridlock against a deeply entrenched opposition Democratic Party.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For the second of our two-part prediction series, we offer predictions for South Korea\u2019s domestic policy, with insights from:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Karl Friedhoff: <\/b><span style=\"font-weight: 400;\">Karl Friedhoff is the Marshall M. Bouton Fellow for Asia Studies at the Chicago Council on Global Affairs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Peter Ward:<\/b><span style=\"font-weight: 400;\"> Peter Ward is a senior researcher at Kookmin University, a writer and researcher focusing on the North Korean economy and holds a Ph.D. from the University of Vienna.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Jeongmin Kim:<\/b><span style=\"font-weight: 400;\"> Jeongmin Kim is the Lead Correspondent at <\/span><i><span style=\"font-weight: 400;\">NK News <\/span><\/i><span style=\"font-weight: 400;\">and the editorial director of\u00a0<em>KOREA PRO,\u00a0<\/em><\/span><span style=\"font-weight: 400;\">based in Seoul. Kim covers inter-Korean, foreign and defense affairs and has covered the 2022 ROK Presidential election on the ground.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Yeji Chung:<\/b><span style=\"font-weight: 400;\"> Yeji Chung is an editorial intern at <\/span><i><span style=\"font-weight: 400;\">NK News<\/span><\/i><span style=\"font-weight: 400;\"> and studies political science at George Washington University.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>John Lee:<\/b><span style=\"font-weight: 400;\"> John Lee is the editor of <\/span><i><span style=\"font-weight: 400;\">KOREA PRO<\/span><\/i><span style=\"font-weight: 400;\">, based in Seoul. His focus is on South Korean foreign policy and ROK-U.S. relations.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Sea Young (Sarah) Kim:<\/b><span style=\"font-weight: 400;\"> Sea Young (Sarah) Kim is a visiting scholar for the United States-South Korea Cooperation in Southeast Asia Program at the East-West Center in Washington, supported by the Korea Foundation.<\/span><\/li>\n<\/ul>\n<hr \/>\n<p><b>POLITICS: YOON TO POSITION ADMINISTRATION FOR 2024 ELECTIONS<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">By <\/span><\/i><a href=\"https:\/\/www.nknews.org\/content_author\/karl-friedhoff\/\"><i><span style=\"font-weight: 400;\">Karl Friedhoff<\/span><\/i><\/a><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-2199849 alignleft\" src=\"https:\/\/www.nknews.org\/koreapro\/wp-content\/uploads\/sites\/6\/2023\/01\/Karl.jpeg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Karl.jpeg 150w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Karl-40x40.jpeg 40w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In 2022, President Yoon Seok-yeol faced a steep learning curve in his first year in office. He often <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/07\/south-korean-voters-appear-tired-of-yoon-suk-yeol-less-than-3-months-into-term\/\"><span style=\"font-weight: 400;\">fell short<\/span><\/a><span style=\"font-weight: 400;\">, with <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/08\/south-korean-president-hemorrhages-support-as-unforced-errors-pile-up\/\"><span style=\"font-weight: 400;\">missteps<\/span><\/a><span style=\"font-weight: 400;\"> littering his first months in office. But as the year closed, his administration began to gather momentum. According to Gallup Korea, he closed the year with a <\/span><a href=\"https:\/\/www.koreatimes.co.kr\/www\/nation\/2022\/12\/113_341850.html\"><span style=\"font-weight: 400;\">36%<\/span><\/a><span style=\"font-weight: 400;\"> approval rate \u2014 the highest mark since mid-July.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He achieved this by adopting a <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/12\/yoon-sees-approval-rate-bump-after-adopting-harder-edged-image\/\"><span style=\"font-weight: 400;\">harder-edged image<\/span><\/a><span style=\"font-weight: 400;\"> when dealing with the media and the opposition party. That has seemingly proven a successful formula and is likely to continue.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The international media will continue to focus on North Korea and security challenges as the most significant issues facing the Yoon administration. Still, those will have little effect on the domestic perception of his presidency.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Instead, much of 2023 will be focused on positioning his administration and party for the April 2024 National Assembly elections \u2014 especially in the latter half of the year. As Yoon consolidates his support, his approval rates seem likely to recover, settling in the high-30s to low-40s.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For Yoon, the 2024 general election will define his presidency. If the opposition party retains its majority, Yoon will complete his 5-year term without hope of achieving anything of legislative significance. That will be a first for a sitting Korean president and will hasten his transformation <\/span><span style=\"font-weight: 400;\">into lame duck president with nearly two years remaining in his term.<\/span><\/p>\n<hr \/>\n<p><b>ECONOMY: HOUSING MARKET, INFLATION AND FISCAL POLICY<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">By <\/span><\/i><a href=\"https:\/\/www.nknews.org\/content_author\/peter-ward\/\"><i><span style=\"font-weight: 400;\">Peter Ward<\/span><\/i><\/a><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-2199850 alignleft\" src=\"https:\/\/www.nknews.org\/koreapro\/wp-content\/uploads\/sites\/6\/2023\/01\/Peter.jpeg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Peter.jpeg 150w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Peter-40x40.jpeg 40w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">The <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/12\/what-rising-interest-rates-mean-for-the-south-korean-real-estate-market\/\"><span style=\"font-weight: 400;\">housing market<\/span><\/a><span style=\"font-weight: 400;\"> is perhaps the most worrisome issue facing South Korea in 2023. There has already been a significant contraction due to interest rate rises and the government\u2019s talk of <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20230103009300320\"><span style=\"font-weight: 400;\">relaxing regulations<\/span><\/a><span style=\"font-weight: 400;\"> on speculation may do less than hoped for in preventing a hard landing.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A hard landing would be awful for many households that would become poorer and see their consumer spending freefall. A hard landing would also constrain the Bank of Korea\u2019s (BOK) capacity to raise interest rates further and thus probably have a negative impact on the <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/12\/why-south-koreas-won-currency-had-such-a-volatile-year\/\"><span style=\"font-weight: 400;\">value of the Korean won<\/span><\/a><span style=\"font-weight: 400;\"> as well.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Inflation has proved thus far less worryingly high than in many parts of the OECD. Planned <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20221230003100320\"><span style=\"font-weight: 400;\">energy<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20221229001900315\"><span style=\"font-weight: 400;\">public transport<\/span><\/a><span style=\"font-weight: 400;\"> price rises in the coming year will hit consumers, but the main drivers of inflation thus far have been <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/06\/why-inflation-is-finally-spiking-in-south-korea-months-after-the-us\/\"><span style=\"font-weight: 400;\">food, fuel and housing costs<\/span><\/a><span style=\"font-weight: 400;\">. Base effects may kick in before too long with food and fuel and house costs are liable to fall further with a falling market.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, imported inflation is still likely to hit consumers and force the BOK to keep rates higher than the housing market would warrant.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The risk of a hard landing in the housing market is what it will do to consumption and output rather than its effects on the financial system. That said, Bank of International Settlement (BIS) early warning indicators <\/span><a href=\"https:\/\/twitter.com\/EmilKalinowsji\/status\/1608060891202813952?s=20&amp;t=i3CQw_px3oSkiZBV5iJstg\"><span style=\"font-weight: 400;\">indicate<\/span><\/a><span style=\"font-weight: 400;\"> that Korea faces a significant threat of a banking crisis of some description, given debt levels and rising debt servicing costs.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Fiscal policy may help to alleviate this risk somewhat and the fact that the country\u2019s banks have <\/span><a href=\"https:\/\/www.cnbc.com\/2022\/07\/17\/south-korea-not-worried-about-capital-outflows-for-now-finance-minister.html\"><span style=\"font-weight: 400;\">high capital buffers<\/span><\/a><span style=\"font-weight: 400;\"> means that if a crisis is to come, it may take quite some time. The BOK is sanguine in the coming year and default rates are still low. So a financial crisis, if one is to happen, doesn\u2019t appear to be likely soon.<\/span><\/p>\n<hr \/>\n<p><b>ROK MILITARY: SEOUL TO BRACE FOR POTENTIAL ARMED CONFLICT WITH NORTH KOREA\u00a0<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">By <\/span><\/i><a href=\"https:\/\/www.nknews.org\/content_author\/jeongmin-kim\/\"><i><span style=\"font-weight: 400;\">Jeongmin Kim<\/span><\/i><\/a><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-2199851 alignleft\" src=\"https:\/\/www.nknews.org\/koreapro\/wp-content\/uploads\/sites\/6\/2023\/01\/Jeongmin.jpeg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Jeongmin.jpeg 150w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Jeongmin-40x40.jpeg 40w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">In 2023, South Korea will focus its military operations on countering North Korea and there is a high chance of armed, albeit limited conflict between the two Koreas. Knowing this, South Korea will focus on acquiring offensive and defensive weapons that match developing DPRK capabilities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Last year ended with a DPRK <\/span><a href=\"https:\/\/www.nknews.org\/2023\/01\/seoul-concedes-north-korean-drone-breached-no-fly-zone-near-presidential-office\/\"><span style=\"font-weight: 400;\">drone incursion<\/span><\/a><span style=\"font-weight: 400;\"> in Seoul airspace and the first day of 2023 kicked off with North Korean leader Kim Jong Un directly <\/span><a href=\"https:\/\/www.nknews.org\/2023\/01\/kim-jong-un-vows-to-exponentially-increase-nuke-production-to-counter-us-rok\/\"><span style=\"font-weight: 400;\">stipulating<\/span><\/a><span style=\"font-weight: 400;\"> South Korea as a target for the country\u2019s newly mass-produced nuclear-capable delivery system. Yoon severely <\/span><a href=\"https:\/\/www.nknews.org\/2022\/12\/yoon-reprimanded-defense-minister-for-failure-to-intercept-north-korean-drones\/\"><span style=\"font-weight: 400;\">reprimanded<\/span><\/a><span style=\"font-weight: 400;\"> the defense minister for failing to shoot down the drones and not training enough, suggesting the contours of ROK defense priorities in the new year.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The DPRK\u2019s updated doctrine, which states the country will <\/span><a href=\"https:\/\/www.nknews.org\/2022\/09\/kim-jong-un-says-he-will-never-give-up-nuclear-weapons-rejects-future-talks\/\"><span style=\"font-weight: 400;\">preemptively use nuclear strikes<\/span><\/a><span style=\"font-weight: 400;\"> against non-nuclear threats, has prompted <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20221013006600315\"><span style=\"font-weight: 400;\">renewed debates<\/span><\/a><span style=\"font-weight: 400;\"> about the redeployment or development of tactical nuclear weapons in Seoul. That debate will likely continue in the new year, evidenced by Yoon\u2019s desire to have more of a say in U.S. <\/span><a href=\"https:\/\/www.nknews.org\/2023\/01\/us-rok-affirm-joint-planning-on-dprk-nukes-but-no-joint-nuclear-exercises\/\"><span style=\"font-weight: 400;\">nuclear forces\u2019 operations<\/span><\/a><span style=\"font-weight: 400;\">\u00a0beyond traditional extended deterrence practices.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Both Koreas breached the armistice in 2022, and unless either side finds a way to de-escalate, there\u2019s a high chance this will happen again in one form or another.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If North Korea breaches the terms of the 2018 Comprehensive Military Agreement (CMA) again, such as firing artillery rounds into ROK waters, launching missiles that land off South Korean coasts, or sending aircraft across the Military Demarcation Line (MDL), Seoul will suspend the military deal and likely return its troops and conduct military field exercises near the border regions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">President Yoon Suk-yeol does not shy away from ordering officials to go <\/span><a href=\"https:\/\/www.koreatimes.co.kr\/www\/nation\/2022\/12\/356_342523.html\"><span style=\"font-weight: 400;\">beyond \u201cproportional\u201d responses<\/span><\/a><span style=\"font-weight: 400;\"> to North Korean \u201cprovocations.\u201d This will influence the military\u2019s decision-making procedures at moments of potential clashes.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, South Korea\u2019s arms development will receive renewed interest and investment despite the <\/span><a href=\"https:\/\/www.koreaherald.com\/view.php?ud=20220830000650\"><span style=\"font-weight: 400;\">modest defense budget<\/span><\/a><span style=\"font-weight: 400;\"> raise in 2023. With the opposition holding a majority of seats in parliament, however, the administration could face challenges passing additional budget requests for certain weapons systems in late 2023.<\/span><\/p>\n<hr \/>\n<p><b>ARMS SALES: WAR IS BUSINESS AND BUSINESS IS GOOD<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">By <\/span><\/i><a href=\"https:\/\/www.nknews.org\/content_author\/yeji-chung\/\"><i><span style=\"font-weight: 400;\">Yeji Chung<\/span><\/i><\/a><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-2199852 alignleft\" src=\"https:\/\/www.nknews.org\/koreapro\/wp-content\/uploads\/sites\/6\/2023\/01\/Yeji.jpeg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Yeji.jpeg 150w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Yeji-40x40.jpeg 40w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s arms industry had its best year in 2022 as it marked a record-high arms export worth about $17 billion (22.4 trillion KRW) \u2014 a remarkable jump from the <\/span><a href=\"https:\/\/www.wowtv.co.kr\/NewsCenter\/News\/Read?articleId=A202212290090\"><span style=\"font-weight: 400;\">$3 billion or so<\/span><\/a><span style=\"font-weight: 400;\"> annual revenue in past decades.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Several factors, such as the Yoon Suk-yeol administration\u2019s aggressive export strategy and a <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/09\/south-koreas-defense-industry-looks-to-europe-with-major-polish-arms-deal\/\"><span style=\"font-weight: 400;\">multi-billion deal with Poland<\/span><\/a><span style=\"font-weight: 400;\">, were collectively well-timed boons that kicked off a new era in overseas ROK arms sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This trend will likely continue in 2023. ROK defense industry firm Hyundai Rotem is closing in on <\/span><a href=\"http:\/\/www.businesskorea.co.kr\/news\/articleView.html?idxno=101301\"><span style=\"font-weight: 400;\">a deal with Norway\u2019s Kongsberg<\/span><\/a><span style=\"font-weight: 400;\"> to sell K2 battle tanks at an estimated <\/span><a href=\"https:\/\/www.donga.com\/news\/article\/all\/20221213\/116970971\/1\"><span style=\"font-weight: 400;\">$2.3 billion<\/span><\/a><span style=\"font-weight: 400;\"> (3 trillion KRW). Meanwhile, Korea Aerospace Industries (KAI) is also in talks with <\/span><a href=\"https:\/\/www.thedefensepost.com\/2022\/07\/21\/malaysia-south-korea-figher-jet\/\"><span style=\"font-weight: 400;\">Malaysia<\/span><\/a><span style=\"font-weight: 400;\"> to export its FA-50 fighter jets.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The ROK arms industry has a brighter outlook than ever, with European countries neighboring Ukraine, such as <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20220921008800325\"><span style=\"font-weight: 400;\">Slovakia<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.overtdefense.com\/2022\/12\/22\/romanian-delegation-to-korea-eyes-new-arms-purchases\/\"><span style=\"font-weight: 400;\">Romania<\/span><\/a><span style=\"font-weight: 400;\">, eyeing South Korean weapons in the face of Russia\u2019s ongoing war against Ukraine.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">But 2023 will not be without challenges. The South Korean military showed that it suffers from <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/12\/big-year-for-south-korean-arms-sales-masks-vulnerabilities-in-national-defense\/\"><span style=\"font-weight: 400;\">vulnerabilities<\/span><\/a><span style=\"font-weight: 400;\"> ranging from a jet crash due to <\/span><a href=\"https:\/\/www.koreatimes.co.kr\/www\/nation\/2023\/01\/113_342679.html\"><span style=\"font-weight: 400;\">poor maintenance<\/span><\/a><span style=\"font-weight: 400;\"> to the <\/span><a href=\"https:\/\/en.yna.co.kr\/view\/AEN20221216001200325?section=news\"><span style=\"font-weight: 400;\">misfiring<\/span><\/a><span style=\"font-weight: 400;\"> of a homegrown Hyunmoo-2C missile. Unless South Korea quickly addresses these issues, it will be difficult for Seoul to sustain foreign interest and sales.\u00a0<\/span><\/p>\n<hr \/>\n<p><b>BUSINESS AND REGULATION: SMALL GOVERNMENT, NOT SO MUCH<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">By <\/span><\/i><a href=\"https:\/\/www.nknews.org\/koreapro\/content_author\/john-lee\/\"><i><span style=\"font-weight: 400;\">John Lee<\/span><\/i><\/a><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-2199853 alignleft\" src=\"https:\/\/www.nknews.org\/koreapro\/wp-content\/uploads\/sites\/6\/2023\/01\/John.jpeg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/John.jpeg 150w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/John-40x40.jpeg 40w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">After winning the presidential election last year, observers expected then-President-elect Yoon Suk-yeol to pursue <\/span><a href=\"https:\/\/www.koreatimes.co.kr\/www\/biz\/2022\/04\/602_325251.html\"><span style=\"font-weight: 400;\">pro-small government policies<\/span><\/a><span style=\"font-weight: 400;\"> to help the economy recover from the COVID-19 pandemic. But external factors beyond his control, mainly Russia\u2019s ongoing invasion of Ukraine and its spillover effects on the world economy, have forced Yoon to backpedal on much of his small government rhetoric.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Since assuming office, Yoon has been a chief proponent of state-led economic growth in two main industries \u2013 weapons and nuclear energy. Yoon <\/span><a href=\"https:\/\/www.koreaherald.com\/view.php?ud=20221124000580\"><span style=\"font-weight: 400;\">referred<\/span><\/a><span style=\"font-weight: 400;\"> to the defense industry as \u201ca new future growth engine\u201d and vowed to help South Korea become the world\u2019s fourth-largest weapons manufacturer.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">He also vowed to accelerate nuclear energy and technology exports as <\/span><a href=\"https:\/\/www.kedglobal.com\/energy\/newsView\/ked202205030018\"><span style=\"font-weight: 400;\">part of a goal<\/span><\/a><span style=\"font-weight: 400;\"> to dispatch 10 nuclear power plants by 2030. He will continue to pursue these aims in 2023.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In the coming year, Yoon will likely embrace his \u201cBig Government\u201d persona even more than he has in the first eight months of his presidency. As legislative elections will not take place until 2024, the National Assembly will remain firmly under the Democratic Party\u2019s (DP) control at least until then.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Regardless of what happens with the <\/span><a href=\"https:\/\/koreajoongangdaily.joins.com\/2022\/12\/29\/national\/politics\/korea-democratic-party-lee-jaemyung\/20221229122139374.html\"><span style=\"font-weight: 400;\">investigations into Lee Jae-myung<\/span><\/a><span style=\"font-weight: 400;\"> \u2013 the scandal-plagued DP leader \u2013 the DP will continue to block much of Yoon\u2019s legislative agenda. Just as Yoon had to rely on an <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/11\/yoon-suk-yeol-faces-off-against-unions-as-strike-threatens-south-korean-economy\/\"><span style=\"font-weight: 400;\">executive order<\/span><\/a><span style=\"font-weight: 400;\"> to get unionized truckers to return to work, his reliance on executive orders will, therefore, likely increase this year.<\/span><\/p>\n<hr \/>\n<p><b>SOCIAL ISSUES: GENDER DIVIDE AND LABOR RIGHTS<\/b><\/p>\n<p><i><span style=\"font-weight: 400;\">By <\/span><\/i><a href=\"https:\/\/www.nknews.org\/content_author\/sea-young-sarah-kim\/\"><i><span style=\"font-weight: 400;\">Sea Young (Sarah) Kim<\/span><\/i><\/a><\/p>\n<p><img decoding=\"async\" class=\"size-full wp-image-2199854 alignleft\" src=\"https:\/\/www.nknews.org\/koreapro\/wp-content\/uploads\/sites\/6\/2023\/01\/Sea-Young.jpeg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Sea-Young.jpeg 150w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2023\/01\/Sea-Young-40x40.jpeg 40w\" sizes=\"(max-width: 150px) 100vw, 150px\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Gender equality in South Korea faces an uncertain future in 2023. A key issue will be the <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/10\/yoon-moves-to-scrap-gender-ministry-in-appeal-to-anti-feminist-supporters\/\"><span style=\"font-weight: 400;\">anticipated abolishment<\/span><\/a><span style=\"font-weight: 400;\"> of the Ministry of Gender Equality and Family (MOGEF) \u2013 which was first proposed as a controversial election pledge by Yoon Suk-yeol in early 2022 and formalized into a governmental plan as of October.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the plan currently waiting for approval by the National Assembly, there is growing concern that gender issues are being neglected by both the soon-to-be disintegrated MOGEF and successive governmental bodies. Even with parliamentary endorsement, it will take time for other ministries to assume, stabilize and prioritize MOGEF\u2019s responsibilities.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Another concern is labor, where there are strands of <\/span><a href=\"https:\/\/www.nknews.org\/koreapro\/2022\/11\/yoon-suk-yeol-faces-off-against-unions-as-strike-threatens-south-korean-economy\/\"><span style=\"font-weight: 400;\">unresolved conflicts<\/span><\/a><span style=\"font-weight: 400;\">. South Korea underwent a series of labor union strikes in 2022, including those led by the Cargo Truckers Solidarity Union (CTSU) and the Korean Confederation of Trade Unions (KCTU). However, negotiations remain deadlocked as the nation\u2019s drive for economic stability and supply chain resilience does not leave much time for substantive discussions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Meanwhile, the Yoon administration has been enforcing heavier state-led regulations upon these unions, which have been interpreted as a positive driver to Yoon Suk-yeol\u2019s approval rating.\u00a0<\/span><\/p>\n<p><i><span style=\"font-weight: 400;\">Edited by John Lee<\/span><\/i><\/p>\n<div class=\"content-tags\"><a href=\"https:\/\/koreapro.org\/tag\/business-economy\/\"><span class=\"tag\">Business &amp; Economy<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/defense-security\/\"><span class=\"tag\">Defense &amp; Security<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/domestic-politics\/\"><span class=\"tag\">Domestic Politics<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/inter-korean-foreign-relations\/\"><span class=\"tag\">Inter-Korean &amp; Foreign Relations<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>Now that it\u2019s a new year, all eyes are turned to see what 2023 will bring for South Korea. While South Korea grapples with supply chain issues and global inflation, it is surrounded by potential economic pitfalls and political challenges on the domestic front.\u00a0 Meanwhile, the Yoon administration and the ruling People Power Party remain [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2199848,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,26,27,28],"class_list":["post-2199847","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-defense-security","tag-domestic-politics","tag-inter-korean-foreign-relations"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>ROK 2023: What to expect for South Korea\u2019s economy and society in the year ahead - KOREA PRO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/koreapro.org\/2023\/01\/rok-2023-what-to-expect-for-south-koreas-economy-and-society-in-the-year-ahead\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ROK 2023: What to expect for South Korea\u2019s economy and society in the year ahead - KOREA PRO\" \/>\n<meta property=\"og:description\" content=\"Now that it\u2019s a new year, all eyes are turned to see what 2023 will bring for South Korea. 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