{"id":2208200,"date":"2025-02-03T16:52:28","date_gmt":"2025-02-03T07:52:28","guid":{"rendered":"https:\/\/koreapro.org\/?p=2208200"},"modified":"2025-02-03T16:52:28","modified_gmt":"2025-02-03T07:52:28","slug":"south-korea-in-january-2025-a-month-in-review-and-whats-ahead","status":"publish","type":"post","link":"https:\/\/koreapro.org\/2025\/02\/south-korea-in-january-2025-a-month-in-review-and-whats-ahead\/","title":{"rendered":"South Korea in January 2025: A month in review and what\u2019s ahead"},"content":{"rendered":"

About Month In Review<\/strong><\/p>\n

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Every month, Korea Pro delivers an authoritative analytical review of developments in South Korea, offering <\/em>comprehensive coverage of political, economic and strategic shifts that shape the peninsula. Korea Pro’s Month in Review serves as an essential resource for policymakers, business leaders and analysts seeking to navigate South Korea\u2019s quickly-changing dynamics and stay ahead of the curve.\u00a0<\/em><\/p>\n

This detailed report examines key events from the previous month, providing actionable intelligence and expert analysis across six critical domains: politics and governance, economy and finance, trade and business, foreign relations, defense and security and society and culture.<\/em><\/p>\n

Our team of specialists combines deep local knowledge with strategic insight to deliver nuanced analysis of both immediate developments and long-term trends. Each section features thorough examination of primary indicators, risk assessments and forward-looking analysis, complemented by data and other primary source information. The report concludes with a succinct outlook for the month ahead, identifying crucial events and emerging trends that will influence South Korea\u2019s trajectory.<\/em><\/p>\n

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Table of Contents<\/div>\n
01<\/span>Executive Summary<\/span><\/a>02<\/span>Politics and Governance<\/span><\/a>03<\/span>Economy and Finance<\/span><\/a>04<\/span>Business and Trade<\/span><\/a>05<\/span>Foreign Relations<\/span><\/a>06<\/span>Defense and Security<\/span><\/a>07<\/span>Society and Culture<\/span><\/a>08<\/span>The Month Ahead<\/span><\/a><\/div>\n<\/div>\n
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 <\/p>\n

\"Executive<\/p>\n

Executive Summary<\/h4>\n

Jeongmin Kim<\/p>\n<\/div>\n

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Illustration of young protestors in Seoul | Image: Korea Pro<\/p><\/div>\n

In South Korean <\/span>domestic politics and government <\/b>in January, President Yoon Suk-yeol became the first incumbent president to be arrested and indicted, following his December martial law declaration. The Constitutional Court began impeachment proceedings, while right-wing protests turned violent in Seoul. Despite the turmoil, the conservative People Power Party (PPP) is gaining in the polls, flipping the Democratic Party\u2019s (DP) lead in some polls.<\/span><\/p>\n

South Korea\u2019s <\/span>economy and finance<\/b> showed mixed signals this month, with the Bank of Korea (BOK) maintaining its 3% benchmark rate amid global volatility and domestic political uncertainty. The central bank lowered GDP growth forecasts to 1.6 to 1.7% for 2025, down from 2% in 2024. While consumer confidence rebounded slightly to 91.2 after a major drop in December, it remained below the long-term average, reflecting persistent pessimism.\u00a0<\/span><\/p>\n

In <\/span>trade and business, <\/b>South Korean exports faced challenges in January, with overall exports declining year-on-year despite a surge in semiconductor exports. While South Korea secured an AI technology export exemption from the outgoing Biden administration, the new Trump administration\u2019s \u201cAmerica First\u201d policies poses risks. Notable developments included Samsung and LG considering relocating their manufacturing plants from Mexico to the U.S., and the resolution of a nuclear power plant dispute between <\/span>Korea Hydro and Nuclear Power (KHNP) and<\/span> Westinghouse Electric.<\/span><\/p>\n

In <\/span>foreign relations, <\/b>South Korea focused on managing its alliance with the U.S. and preparing for shifting policies under the Trump administration. Trump\u2019s defense secretary, Pete Hegseth, and Trump himself described North Korea as a \u201cnuclear power,\u201d which reignited nuclear armament debates in Seoul. Meanwhile, talks with Japan continued despite Yoon\u2019s impeachment and arrest. South Korea also opened an embassy in Cuba, marking a milestone after the two countries established diplomatic ties last year.<\/span><\/p>\n

In <\/span>defense and security<\/b>, South Korea\u2019s military underwent significant shakeup following December’s martial law incident, with four senior commanders dismissed. Concurrently, the country faced major cybersecurity challenges, including a court system data breach and North Korea\u2019s $600 million cryptocurrency theft. Meanwhile, the country advanced its defense capabilities with L-SAM-II missile development and potential K-9 Howitzer exports to Vietnam.<\/span><\/p>\n

In <\/span>society and culture, <\/b>families of the Jeju Air crash victims called for a transparent investigation into the tragedy. Meanwhile, South Korea announced healthcare reforms targeting non-reimbursed treatments to sustain the National Health Insurance Service, while labor unions protested increases in foreign worker visas for the shipbuilding industry. Also in January, Instagram introduced teen safety features in the country.\u00a0<\/span><\/p>\n

Edited by John Lee<\/span><\/i><\/p>\n

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Pro-Yoon protestors hold up \u201cStop the Steal\u201d signs, Jan. 19, 2025 | Image: Korea Pro<\/p><\/div>\n<\/div>\n

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\"Politics<\/p>\n

Politics and Governance<\/h4>\n

Jeongmin Kim<\/p>\n<\/div>\n

KEY DEVELOPMENTS<\/b><\/em><\/p>\n

Arrest of President Yoon Suk-yeol:<\/b> In January, President Yoon Suk-yeol became the first incumbent South Korean president to be <\/span>arrested<\/span><\/a> and indicted. Yoon\u2019s supporters and Presidential Security Service (PSS) agents initially attempted to block investigators from arresting him, but Yoon was eventually taken into custody on Jan. 15.<\/span><\/em><\/p>\n

Escalation of right-wing protests: <\/b>Between Jan. 18 and 19, protests by extreme right-wing groups erupted into <\/span>violence<\/span><\/a>. Yoon\u2019s supporters clashed with law enforcement in Seoul, resulting in multiple injuries, arrests and damages to court property after protesters stormed the Seoul Western District Court.\u00a0<\/span><\/em><\/p>\n

Impeachment proceedings kick off:<\/b> With eight of nine justices now in place, the Constitutional Court began impeachment trial proceedings on Jan. 14. Planned plea dates are Jan. 14, 16, 21, 23, Feb. 3, 6,11 and 13. The court will determine whether to reinstate or permanently remove Yoon from office. Yoon attended the trial in person for the first time on <\/span>Jan. 21<\/span><\/a>.<\/span><\/em><\/p><\/blockquote>\n

PUBLIC SENTIMENT<\/b><\/p>\n

In January, public sentiment trends saw <\/span>significant<\/span><\/a> shifts.<\/span><\/p>\n

Party approval rate: <\/b>Overall, the conservative base consolidated throughout the month. The PPP consistently gained support in all three of South Korea\u2019s major polls \u2014 <\/span>Gallup Korea<\/span><\/a>, <\/span>Realmeter<\/span><\/a> and the <\/span>National Barometer Survey<\/span><\/a> (NBS).<\/span><\/p>\n