South Korea

The economy is under acute pressure from US tariff threats targeting key exports, creating a stark external risk. This contrasts with a booming AI chip sector, as Samsung posts and forecasts record profits, and major deals like Palantir's with HD Hyundai signal strong corporate investment. The government downplays the immediate chip tariff impact while investors seek a US probe over Coupang's treatment.

• 6Samsung posts record profits as AI chip demand boosts earnings
• 3Coupang Says It's Uninvolved in US ISDS Claim
• 3Exclusive: Palantir inks HD Hyundai deal worth hundreds of millions, CEO bullish on Korea
• 3Lee, Meloni Agree to Boost Cooperation in AI Industry
• 3South Korea says US chip tariff to have limited immediate impact

Politics is dominated by the unprecedented judicial reckoning against the previous administration, with former President Yoon and the former first lady receiving prison sentences and prosecutors seeking the death penalty for an ex-president. Concurrently, President Lee actively pursues foreign diplomacy, securing agreements with Italy's Meloni on AI and strengthening ties with Japan and China, including a request for Chinese mediation with North Korea.

• 13Former South Korean President Yoon sentenced to 5 years in prison
• 9Japan and South Korea leaders meet, drum together to strengthen ties
• 5South Korean opposition leader meets Chinese officials in Shanghai visit
• 3Lee Vows to Pursue N. Korea Talks, Restore Inter-Korean Military Agreement
• 3North Korea slams Ukraine, UN Security Council meeting on Russia

Security is defined by routine North Korean missile and rocket tests, including a show of force ahead of political meetings, which South Korea aims to deter with its own enhanced capabilities like the Hyunmoo-5 missile. A new defense white paper asserts South Korea can take primary deterrence responsibility with limited US support, while a major arms export deal with Norway is secured. Incidents involving alleged civilian drone flights into the North add a layer of non-state provocation.

• 4N. Korea fires projectile toward East Sea: JCS
• 3South Korea's Lee suggests civilian flew drones into North, urges prevention
• 2Norway picks Hanwha to supply rocket artillery in $2 billion deal
• 2S. Korea fields Hyunmoo-5 missile as North Korea’s nuclear threat grows
• 2Seoul City Council Member Summoned Again in Bribery Investigation

Society is grappling with a series of disruptive environmental crises, including major wildfires in Busan and Gwangyang and a fire in a Seoul informal settlement. Against this backdrop, President Lee publicly warns of the societal polarization that could result from AI-driven economic change.

• 2Firefighters battle wildfire raging in Busan for 2nd day
• 2Live: Fire breaks out in Guryong Village in Seoul's Gangnam district, ROK
• 1S. Korea's 1st Case of Foot-and-Mouth Disease of 2026 Reported in Incheon
• 1Pres. Lee Stresses Need to Prepare for Polarization Resulting from AI-driven Society
• 1South Korea sees fastest rise in births in 18 years amid marriage surge