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Monday, October 27, 2025 — Today’s Major South Korea News Briefing



1. Global Headlines

(1) Politics & Economy: Global Economic Uncertainty and Government Responses

As of October 27, 2025, the global economy continues to struggle under persistent high interest rates and geopolitical risks. The U.S. Federal Reserve remains cautious about cutting rates due to stronger-than-expected inflation pressures, influencing global capital flows.

The European Central Bank faces similar challenges as rising energy costs and labor rigidity hinder monetary normalization. In Asia, China’s economic slowdown remains a central issue, as its real estate instability and weak domestic demand prompt the government to adopt aggressive fiscal and monetary stimulus. These measures are expected to reshape global supply chains and trade dynamics.

Major economies are increasingly turning toward protectionist trade measures to safeguard domestic industries while forming strategic alliances in key technologies such as semiconductors, artificial intelligence, and batteries. This race for technological dominance could significantly alter global power structures.

Meanwhile, oil price volatility continues to influence global markets. Oil-producing nations are searching for new growth engines amid long-term energy transition pressures, while Western nations are divided over how to balance green energy goals with economic stability.

(2) Science & Technology: Quantum Computing Breakthroughs and the Rise of AI Ethics

The year 2025 marks a turning point for quantum computing, as leading tech companies like Google, IBM, and Microsoft unveil systems with dramatically reduced error rates—signaling a move toward real-world applications in finance, medicine, and materials science.

The emerging field of Quantum AI is gaining traction, combining quantum processing with artificial intelligence to solve highly complex optimization and data-analysis problems. Governments are expanding funding and training programs to build national competitiveness in this sector.

At the same time, rapid AI development has intensified debates over ethics and regulation. The European Union recently passed its landmark AI Act, introducing strict oversight for high-risk AI systems, while the U.S. and several Asian countries are crafting frameworks to ensure responsible AI development.

The spread of deepfake technology and AI-generated content has raised new concerns about misinformation and intellectual property. Meanwhile, the private space industry, led by SpaceX and other players, continues to expand—announcing new Mars colonization plans, lunar base construction, and asteroid mining projects that signal the dawn of a new “space economy.”

(3) Society & Culture: Global Cooperation on Climate Change and the Digital Cultural Boom

The world faces intensifying natural disasters, underscoring the urgency of global climate action. The UN and international coalitions are revising carbon reduction targets and discussing concrete measures to accelerate the transition toward renewable energy.

Developed nations are under pressure to support emerging economies with both financing and technology transfer, while young activists worldwide are keeping the environmental agenda in the public spotlight. Corporations continue to expand ESG (Environmental, Social, Governance) commitments, integrating sustainability into their business models.

In culture and entertainment, immersive experiences using VR and AR have become mainstream. Metaverse platforms now host concerts, exhibitions, and educational programs, allowing people to engage with culture beyond physical limitations.

Global streaming services such as Netflix and Disney+ are heavily investing in regional content, driving cultural diversity. Asian media, particularly Korean dramas and films, are gaining unprecedented popularity in Western markets, redefining global cultural influence. Health and wellness trends also continue to rise, with a focus on personalized healthcare, meditation, and mental well-being.


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2. Domestic Headlines (South Korea)

(1) Politics & Economy: Balancing Inflation Control with Economic Growth

As of October 27, 2025, South Korea faces twin challenges: controlling inflation and revitalizing the slowing economy. The government is prioritizing price stabilization through food and energy subsidies while expanding financial aid for small businesses and vulnerable groups.

The Bank of Korea continues its cautious monetary stance, keeping inflation expectations under close watch. Meanwhile, the government is also working to secure long-term growth engines by investing in high-tech industries such as semiconductors, AI, and biotechnology.

Efforts to accelerate green energy transition remain central to the nation’s carbon neutrality goals, while the real estate market remains volatile despite policy interventions. Experts argue that sustained growth requires structural reform rather than short-term government spending.

(2) Science & Technology: K-Defense on the Rise and the Digital Transformation Era

Korea’s defense industry is entering a new golden age. The successful development of the KF-21 fighter jet and expanded arms exports to countries like Poland and Australia highlight South Korea’s emergence as a global defense powerhouse.

The government continues to strengthen the defense ecosystem through R&D investments and industry collaboration. In space technology, the Korean launch vehicle “Nuriho” achieved another successful launch, confirming Korea’s growing independent space capabilities and ushering in the “New Space” era.

Across industries, AI-driven digital transformation is accelerating—from manufacturing and finance to healthcare and education. Korean tech companies are developing large-scale Korean language AI models, positioning themselves for global competition. Blockchain applications are also expanding beyond finance into logistics, supply chain, and content industries, improving transparency and trust.

(3) Society & Culture: The Dual Challenge of Low Birthrates and an Aging Population

South Korea’s low fertility rate and aging demographics have become a national priority. The government has announced generous birth incentives and expanded childcare support, while debating retirement age extensions and senior employment programs to cope with demographic shifts.

Concerns over regional population decline have led to policies aimed at regional revitalization and migration incentives.

Meanwhile, K-content continues its global dominance. Korean music, dramas, and films are thriving on global platforms such as Netflix and Disney+, while webtoons and web novels are growing rapidly under the “One Source Multi Use” (OSMU) strategy.

The government is boosting funding for cultural exports and cracking down on digital piracy, recognizing K-content as a major national growth driver. Following the end of pandemic restrictions, live performances and cultural events have rebounded, with “New-tro” (new-retro) trends and eco-conscious lifestyles spreading among younger generations.


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(4) Real Estate: Housing Prices Continue to Soar Despite Policy Promises

Despite repeated government pledges to stabilize the housing market, real estate prices are rising sharply nationwide. Seoul, Incheon, and Busan are experiencing double-digit price growth, with luxury apartments in Gangnam and Songpa leading the surge.

Experts point to overregulation, slow development approvals, and reduced construction investment as major causes. Loan restrictions and property tax hikes have limited ordinary citizens’ purchasing power while benefiting institutional investors and high-income groups.

Conservative economists argue that these outcomes reflect the failure of excessive government intervention. True market stability, they insist, requires deregulation, expanded housing supply, and free-market mechanisms rather than new layers of control.


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3. Commentary: Economic Freedom as the Path Forward

South Korea’s current economic challenges—from inflation to housing—stem largely from policy overreach and populism. Fiscal discipline, deregulation, and trust in the private sector remain the pillars of sustainable prosperity.

As conservatives emphasize, economic freedom, not excessive government control, is the foundation upon which a strong and resilient Korea must be built.

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