Global Scans · South Korea · Weekly Summary

WHAT'S NEXT?: South Korea may go nuclear if Trump cancels the missile deployment and leaves the country alone facing the North's threats. With the President facing an impeachment vote and mass demonstrations on the streets political and economic turmoil may follow. Chinese markets has already shaken South Korea, where central bankers downgraded their forecasts for economic growth.

• [New] Output is expected to fall in key economies, including the US (-4.5% in 2026), Mexico (-1.1% in 2026), South Korea (-6.3% in 2026) and Germany, while Europe as a whole remains in troubled waters with shrinking margins, higher credit risk and only a modest production rebound in 2026. CIN
• [New] South Korea plans to invest over 700 trillion Korean won by 2047 to build 10 advanced semiconductor factories. Observer News Enterprise
• [New] South Korea's modular 'LEGO drone' architecture threatens to commoditize advanced UAV capabilities, enabling rapid mass production and field reconfiguration that could fundamentally shift Indo-Pacific power projection economics. Drone Warfare
• [New] South Korea's POSCO will invest $582 million for a 20% stake in Hyundai Steel's electric-arc furnace facility in Louisiana. Aluminum Market Update
• [New] The US-led regional response will hinge on whether Japan and South Korea achieve security clearance harmonization and co-production agreements before 2027, creating a distributed manufacturing network resilient to single-point disruption. Drone Warfare
• [New] South Korea has set an ambitious goal to become the world's fourth-largest arms exporter by 2027 in order to strengthen its defence industry and reduce dependence on foreign suppliers. The Chicago Journal of Foreign Policy
• [New] Taiwan's elevated spending in 2025 reflects large-scale capacity additions for leading-edge AI and HPC logic chips (and probably memory), while South Korea's increases are expected to be driven by major investments in advanced memory technologies, including HBM. Tom's Hardware
• [New] From a geographic standpoint, China, Taiwan, and South Korea are expected to remain the largest markets for semiconductor equipment throughout the forecast period. Tom's Hardware
• [New] South Korea will likely continue to send conciliatory signals to Pyongyang as part of its two-track diplomacy to encourage dialog while simultaneously reinforcing US-South Korea military capabilities. American Enterprise Institute - AEI
• [New] If South Korea and other US-aligned nations become prominent users of the NSR, they will prioritize safety standards, environmental regulations, and reliability. Swiss Institute of Artificial Intelligence
• [New] The rapid weaponization of new vulnerabilities like React 2 Shell by nation-state actors underscores a threat landscape that is accelerating faster than defensive protocols can adapt. / South Korea Thought Canvas
• Further growth in South Korea's and Taiwan's offshore sectors is forecast, with their totals expected to have reached 9.8 GW and 13.1 GW by the end of the outlook period. Windpower Monthly
• South Korea committed to raising defence spending to 3.5% of GDP and purchasing $25 billion in U.S. military equipment by 2030. National Law Review
• The United States and South Korea released a memorandum of understanding stipulating that South Korea will invest a total of $150 billion into the United States' shipbuilding sector, and $200 billion for other strategic investments. Corn Refiners Association
• South Korea's K-Humanoid Alliance, a consortium of more than 40 companies and universities, and backed by $770 million in government funding, will unveil a dedicated Robot Pavilion in North Hall. Google Business
• South Korea will require public enterprises to use locally produced solar power products. PVKnowhow

Last updated: 31 December 2025