{"id":2208005,"date":"2025-01-17T13:28:05","date_gmt":"2025-01-17T04:28:05","guid":{"rendered":"https:\/\/koreapro.org\/?p=2208005"},"modified":"2025-01-20T19:06:07","modified_gmt":"2025-01-20T10:06:07","slug":"south-korea-unveils-sweeping-2025-reforms-to-modernize-its-economy-and-society","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/01\/south-korea-unveils-sweeping-2025-reforms-to-modernize-its-economy-and-society\/","title":{"rendered":"South Korea unveils sweeping 2025 reforms to modernize its economy and society"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The South Korean government will undertake an ambitious suite of reforms across economic, social and security sectors in 2025. These measures aim to address pressing demographic challenges, modernize infrastructure and strengthen resource resilience amid global uncertainties.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From digital transformation initiatives to expanded parental benefits and significant tax system overhauls, the reforms reflect a strategic shift to bolster South Korea\u2019s competitiveness and social equity.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, the success of these policies depends on careful implementation and the ability to balance modernization with the unique challenges facing smaller enterprises and underserved communities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This <\/span><i><span style=\"font-weight: 400;\">Korea Pro<\/span><\/i><span style=\"font-weight: 400;\"> analysis examines the key areas of reform \u2014 digitalization, financial systems, labor and welfare, education and resource security \u2014 highlighting their potential impacts and challenges.<\/span><\/p>\n<div id=\"attachment_2208007\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2208007\" class=\"size-full wp-image-2208007\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/1-9.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/1-9.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/1-9-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/1-9-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2208007\" class=\"wp-caption-text\"><em>An illustration depicting South Korean won being exchanged into Bitcoin | Image: Korea Pro<\/em><\/p><\/div>\n<p><b>DIGITAL AND FINANCIAL: WAGE CHANGES AND DIGITALIZATION<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Minimum wage increase:<\/b><span style=\"font-weight: 400;\"> The hourly minimum wage rises from $6.80 (9,860 won) to $6.92 (10,030 won), with the monthly wage increasing to $1,446.42 (2,096,270 won) for 209 working hours (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Deposit protection reform:<\/b><span style=\"font-weight: 400;\"> The maximum deposit protection amount doubles to $69,000 (100 million won), marking the first adjustment since 2001. This move strengthens consumer confidence in the banking system but may require banks to adjust their financial models to accommodate higher potential payouts (implementation within a year after promulgation in January).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Youth support:<\/b><span style=\"font-weight: 400;\"> Contributions to the Youth Jump Account increase from $16.56 (24,000 won) to $22.77 (33,000 won) monthly, offering greater financial support to young participants (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Lending reform:<\/b><span style=\"font-weight: 400;\"> Prepayment penalties for new mortgages are reduced by 50%, easing the financial burden for borrowers (applicable to new loans after Jan. 13).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Telecommunication changes:<\/b><span style=\"font-weight: 400;\"> Major carriers will phase out over 130 existing LTE plans (36 from SKT, 46 from KT and 52 from LG U+) to transition to unified LTE\/5G tariff systems (effective Jan. 2 for KT, Feb. 1 for SKT and Feb. 10 for LG U+).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Digital accessibility:<\/b><span style=\"font-weight: 400;\"> Mobile national ID cards will be introduced for citizens aged 17 and older in the first quarter of 2025, offering enhanced convenience and security. Simultaneously, kiosks in public spaces must incorporate accessibility features like voice guidance or assistance options to ensure inclusivity for individuals with disabilities (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Consumer protection:<\/b><span style=\"font-weight: 400;\"> Subscription-based services must now provide a mandatory 30-day advance notice for price increases and immediate notifications for free-to-paid conversions. The repeal of the Mobile Device Distribution Act (effective Feb. 14) could foster greater competition in device pricing.<\/span><\/li>\n<\/ul>\n<p><b>CHALLENGES AND IMPLICATIONS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">These reforms aim to modernize South Korea\u2019s financial and digital infrastructure. However, businesses, particularly small- and medium-sized businesses (SMEs), face compliance hurdles, including costs associated with accessibility upgrades and subscription management.\u00a0<\/span><\/p>\n<div id=\"attachment_2208008\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2208008\" class=\"size-full wp-image-2208008\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/2-8.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/2-8.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/2-8-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/2-8-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2208008\" class=\"wp-caption-text\"><em>An illustration of corporations calculating their taxes | Image: Korea Pro<\/em><\/p><\/div>\n<p><b>TAX SYSTEM: CORPORATE AND INDIVIDUAL REFORMS<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Corporate tax structure:<\/b><span style=\"font-weight: 400;\"> A unified 19% tax rate for income up to $138 million (200 billion won) replaces the previous two-tier system, streamlining the tax process. This applies to corporations, including those primarily engaged in real estate leasing (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>R&amp;D incentives:<\/b><span style=\"font-weight: 400;\"> Transitioning SMEs benefit from enhanced R&amp;D incentives for three years, with rates set at 25% for new growth technology, 35% for national strategic technology and 20% for general R&amp;D (up from 15%). This support applies when companies exceed SME status due to factors like increased revenue (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Investment credits:<\/b><span style=\"font-weight: 400;\"> Facility investment credits rise to 9% for new growth technology (from 6%), 20% for national strategic technology (from 15%) and 7.5% for general investments (from 5%). A universal 10% additional credit is available but excludes leased assets (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Family support:<\/b><span style=\"font-weight: 400;\"> Tax benefits are expanded to address demographic challenges. These include a marriage tax credit of $345 (500,000 won) per person through 2026, accumulative child credits ranging from $172.50 (250,000 won) for the first child to $276 (400,000 won) for the third child, and earned income tax exemptions for childbirth-related wages paid up to twice within two years of a child\u2019s birth.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Virtual asset regulation:<\/b><span style=\"font-weight: 400;\"> Taxation on virtual assets is postponed to 2027, giving the industry more time to adapt. However, stricter penalties, including fines up to $13,800 (20 million won) for non-reporting, highlight the government\u2019s commitment to enforcement. Calculation methods now allow up to 50% of transfer value when the original cost is unclear.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Foreign accounts and investment:<\/b><span style=\"font-weight: 400;\"> Reporting exemption thresholds for overseas accounts are adjusted from 183 to 182 days for overseas residents. Non-resident and foreign corporations gain streamlined processes for direct tax adjustment claims and simplified tax exemption procedures for government bond investments.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Compliance measures:<\/b><span style=\"font-weight: 400;\"> Penalties for name-borrowing violations double, with general violations increasing from 1% to 2% and simplified violations from 0.5% to 1%. Organizations issuing over $207,000 (300 million won) annually in electronic donation receipts must now comply with mandatory reporting requirements.<\/span><\/li>\n<\/ul>\n<p><b>CHALLENGES AND IMPLICATIONS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">For South Korean companies, the reforms expand R&amp;D support and investment incentives, particularly aiding SMEs transitioning to larger corporate status. However, the unified 19% tax rate increases the burden on smaller businesses previously benefiting from lower rates, posing potential financial challenges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For international businesses, simplified processes for foreign investments in government bonds and direct tax adjustments are a welcome change, potentially attracting more foreign investors. However, stricter compliance requirements and enhanced penalties signal a shift toward stricter regulatory oversight.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The postponement of virtual asset taxation provides the cryptocurrency sector with valuable preparation time, but the focus on rigorous enforcement reflects the government\u2019s intent to ensure transparency and compliance in the tax system.<\/span><\/p>\n<div id=\"attachment_2208009\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2208009\" class=\"size-full wp-image-2208009\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/3-3.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/3-3.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/3-3-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/3-3-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2208009\" class=\"wp-caption-text\"><em>An illustration of a family at home | Image: Korea Pro<\/em><\/p><\/div>\n<p><b>LABOR AND EMPLOYMENT: EXPANDED PROTECTIONS AND PARENTAL BENEFITS<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Parental leave expansion:<\/b><span style=\"font-weight: 400;\"> Monthly parental leave payments increase from a maximum of $1,035 (1.5 million won) to $1,725 (2.5 million won), with the &#8220;6+6 Parental Leave System,\u201d now increasing payment caps if both parents take parental leave within the first 18 months after their child is born. Single parents and parents of children with severe disabilities gain additional flexibility. The 25% post-return payment is eliminated, and parents can now split leave into four periods.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Work hour flexibility: <\/b><span style=\"font-weight: 400;\">Paid spousal birth leave is extended from 10 to 20 days. Eligibility for reduced working hours now applies to parents with children up to 6th grade (age 12), up from the previous 2nd grade (age 8). Retroactive benefits are also provided for leave periods before Sept. 30, 2019 (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Wage default prevention:<\/b><span style=\"font-weight: 400;\"> Stricter measures are introduced to address wage defaults. New penalties include travel bans, mandatory credit information reporting for habitual defaulters, restrictions on government subsidies and mandatory reporting to credit agencies (effective Oct. 23).<\/span><\/li>\n<\/ul>\n<p><b>CHALLENGES AND IMPLICATIONS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">The increase in parental leave payments and the extension of leave periods reflect an effort to address demographic challenges and support families, particularly those with young children or children with disabilities. These measures aim to improve work-life balance and ensure greater equity for parents.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The stricter wage default prevention measures emphasize enforcement of employer obligations. Travel bans and subsidy restrictions create significant deterrents for habitual defaulters, potentially improving wage compliance. However, these measures may impose additional pressures on businesses already facing financial difficulties, particularly smaller enterprises.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While these reforms offer improved protections for workers, their implementation presents challenges. Extended leave periods and increased benefit costs could impact business operations, particularly in labor-intensive sectors with limited capacity to absorb these changes.<\/span><\/p>\n<div id=\"attachment_2208010\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2208010\" class=\"size-full wp-image-2208010\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/4-1.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/4-1.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/4-1-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/4-1-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2208010\" class=\"wp-caption-text\"><em>An illustration of a couple meeting with a doctor | Image: Korea Pro<\/em><\/p><\/div>\n<p><b>WELFARE AND HEALTHCARE: DIGITAL TRANSFORMATION AND EXPANDED ACCESS<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Digital medical products law:<\/b><span style=\"font-weight: 400;\"> South Korea introduces its first unified framework for regulating AI and robotics-based medical devices. This law includes software-specific safety verification processes, streamlined approval pathways for non-critical updates and an online review system for software products (effective Jan. 24).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Expanded fertility testing:<\/b><span style=\"font-weight: 400;\"> Coverage for fertility testing now includes all adults aged 20 to 49, regardless of marital status. Eligible tests include ovarian function and ultrasound evaluations for women ($89.70 or 130,000 won) and semen analysis for men ($34.50 or 50,000 won). A lifetime maximum of three tests is distributed across different age brackets (20s, early 30s and 35 to 49) (effective Jan. 1).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>National health screenings:<\/b><span style=\"font-weight: 400;\"> Hepatitis C antibody testing is added to national health screenings for individuals aged 56. Positive cases receive registration and cost support under the national cancer management program (effective Jan. 1).<\/span><\/li>\n<\/ul>\n<p><b>CHALLENGES AND IMPLICATIONS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s healthcare reforms in 2025 emphasize technological leadership and preventive care but face significant implementation challenges.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The Digital Medical Products Law introduces robust regulatory frameworks for AI and robotics in medicine. However, ensuring the safety of AI systems and addressing data privacy risks require rigorous oversight. Streamlined processes must not come at the expense of patient safety or undermine public trust in healthcare technology.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The expansion of fertility testing reflects a notable shift from family-centric to individualized healthcare. While this policy broadens access and supports reproductive health, its capped coverage and limited lifetime tests may not fully meet the needs of individuals with complex fertility issues. Broader coverage or higher caps may be necessary to achieve long-term health outcomes.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Adding Hepatitis C testing to health screenings enhances preventive care for a specific demographic. However, the focus on this age group raises questions about whether similar attention will be extended to other high-risk groups. Additionally, the financial and administrative burden of expanded screenings could strain existing healthcare resources, particularly in underfunded regions.<\/span><\/p>\n<div id=\"attachment_2208011\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2208011\" class=\"size-full wp-image-2208011\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/5-1.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/5-1.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/5-1-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/5-1-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2208011\" class=\"wp-caption-text\"><em>An illustration of students in a classroom | Image: Korea Pro<\/em><\/p><\/div>\n<p><b>EDUCATION: CREDIT SYSTEM AND REGIONAL REFORM<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>High school credit system:<\/b><span style=\"font-weight: 400;\"> Full implementation begins for first-year high school students, allowing them to select subjects based on aptitude and career goals. Graduation will now be determined by credit completion rather than traditional grade advancement.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Neulbom program:<\/b><span style=\"font-weight: 400;\"> The program expands to include second-grade elementary students, providing comprehensive after-school education linked to community resources.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Regional innovation university support:<\/b><span style=\"font-weight: 400;\"> Over $1.38 billion (2 trillion won) in university funding authority is transferred to local governments, facilitating cooperative relationships between universities and local authorities to address regional needs.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Childcare service support:<\/b><span style=\"font-weight: 400;\"> Coverage expands from 110,000 to 120,000 households, with income thresholds raised to 200% of median income. A new infant care allowance of $1 (1,500 won) per hour is introduced.<\/span><\/li>\n<\/ul>\n<p><b>CHALLENGES AND IMPLICATIONS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s education reforms for the upcoming year represent a significant policy shift, notably with the nationwide adoption of the high school credit system. This system allows students to select courses aligned with their aptitudes and career goals, moving away from traditional grade-based progression.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, challenges such as ensuring consistent teacher training, equitable resource distribution and effective student guidance across diverse school environments remain.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The transfer of university funding authority to local governments through the Regional Innovation System and Education initiative seeks to address regional disparities and foster collaboration between universities and local authorities.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, this decentralization raises concerns about local governments\u2019 capacity and expertise to manage substantial funding effectively, particularly in areas lacking robust administrative frameworks.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The expansion of childcare support to cover more households and introduction of a new infant care allowance aim to alleviate childcare burdens. However, the adequacy of the allowance, especially in urban areas with higher living costs, is questionable.<\/span><\/p>\n<div id=\"attachment_2208012\" style=\"width: 1880px\" class=\"wp-caption alignnone\"><img decoding=\"async\" aria-describedby=\"caption-attachment-2208012\" class=\"size-full wp-image-2208012\" src=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/6-1.png\" alt=\"\" width=\"1870\" height=\"1000\" srcset=\"https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/6-1.png 1870w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/6-1-935x500.png 935w, https:\/\/assets.korearisk.com\/uploads\/sites\/6\/2025\/01\/6-1-1255x670.png 1255w\" sizes=\"(max-width: 1870px) 100vw, 1870px\" \/><p id=\"caption-attachment-2208012\" class=\"wp-caption-text\"><em>An illustration of stockpiled oil barrels | Image: Korea Pro<\/em><\/p><\/div>\n<p><b>RESOURCE AND ENERGY SECURITY: A NEW NATIONAL FRAMEWORK<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Resource security council:<\/b><span style=\"font-weight: 400;\"> Headed by the Ministry of Trade, Industry and Energy, the council oversees a four-level alert system (Attention-Caution-Alert-Severe) and coordinates inter-ministry responses to resource crises.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Mandatory stockpiling:<\/b><span style=\"font-weight: 400;\"> Public corporations, including Korea Gas Corporation (KOGAS), Korea National Oil Corporation (KNOC) and Korea Energy Agency (KEA), are now required to stockpile critical resources. Regular supply chain vulnerability assessments and diagnostics will identify potential risks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Crisis response system:<\/b><span style=\"font-weight: 400;\"> A comprehensive resource security basic plan will be formulated every five years, integrating early warning systems and inter-ministry cooperation to enhance crisis response.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><b>Resource recycling clusters:<\/b><span style=\"font-weight: 400;\"> Industrial clusters focused on resource recycling aim to reduce dependency on imports and enhance domestic resilience. These clusters will support sustainable development and align with broader environmental goals.<\/span><\/li>\n<\/ul>\n<p><b>CHALLENGES AND IMPLICATIONS<\/b><\/p>\n<p><span style=\"font-weight: 400;\">South Korea\u2019s resource security framework improves preparedness by institutionalizing early warning systems and designating strategic resource security agencies. However, potential government interventions, such as price controls during crises, could disrupt market efficiency and affect private sector operations.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Ensuring compliance with mandatory stockpiling requirements may strain public corporations, particularly in the energy sector, as they balance these mandates with financial and operational constraints.<\/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\/culture-society\/\"><span class=\"tag\">Culture &amp; Society<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/domestic-politics\/\"><span class=\"tag\">Domestic Politics<\/span><\/a><a href=\"https:\/\/koreapro.org\/tag\/technology-cyber\/\"><span class=\"tag\">Technology &amp; Cyber<\/span><\/a><\/div>","protected":false},"excerpt":{"rendered":"<p>The South Korean government will undertake an ambitious suite of reforms across economic, social and security sectors in 2025. These measures aim to address pressing demographic challenges, modernize infrastructure and strengthen resource resilience amid global uncertainties. From digital transformation initiatives to expanded parental benefits and significant tax system overhauls, the reforms reflect a strategic shift [&hellip;]<\/p>\n","protected":false},"author":10407,"featured_media":2208006,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[21],"tags":[24,25,27,29],"class_list":["post-2208005","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","tag-business-economy","tag-culture-society","tag-domestic-politics","tag-technology-cyber"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>South Korea unveils sweeping 2025 reforms to modernize its economy and society - 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\/2025\/01\/south-korea-unveils-sweeping-2025-reforms-to-modernize-its-economy-and-society\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"South Korea unveils sweeping 2025 reforms to modernize its economy and society - Korea Pro\" \/>\n<meta property=\"og:description\" content=\"The South Korean government will undertake an ambitious suite of reforms across economic, social and security sectors in 2025. These measures aim to address pressing demographic challenges, modernize infrastructure and strengthen resource resilience amid global uncertainties. 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