The Minute to Read (Weekend) series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: Mar. 17-21.
U.S. Energy Department designates South Korea ‘sensitive country’
The United States added South Korea to its “sensitive countries list” earlier this year—a designation used by the U.S. Department of Energy (DOE) for nations viewed as potential threats to national security or sources of geopolitical instability—it was confirmed on Mar. 15 local time. This marks the first time South Korea has been included on the list. Inclusion on the DOE’s sensitive countries list can restrict access to classified military intelligence and limit collaboration with the U.S. in advanced sectors such as nuclear energy and artificial intelligence. As of last year, the DOE had designated 25 countries as sensitive, including China, Russia, North Korea, Iran, Syria, Israel, and Taiwan. South Korea became the 26th addition earlier this year. In response, South Korea’s Ministry of Foreign Affairs stated late on Mar. 17 that the designation was not based on foreign policy concerns but rather on internal security issues involving DOE-affiliated national laboratories. “The U.S. has confirmed that South Korea’s inclusion on the list will not significantly affect bilateral cooperation in joint research or advanced technology,” the ministry said in a statement distributed to reporters. As of Mar. 21, South Korea and the United States have reportedly reached an understanding to remove South Korea from the U.S. Department of Energy (DOE)‘s “sensitive countries and other designated countries list” (SCL).
Constitutional Court to rule on Prime Minister Han’s impeachment on Mar. 24
South Korea’s Constitutional Court is set to rule on the impeachment of Prime Minister Han Duck-soo on Mar. 24, 87 days after the National Assembly approved the motion on Dec. 27. The court announced on Mar. 20 that the decision will be delivered at 10 a.m. in its main courtroom. According to court officials, the eight justices confirmed the date during deliberations earlier that day and issued the notice immediately afterward. A minimum of six votes is required to uphold the impeachment, which would result in Han’s dismissal from office. If the court rejects or dismisses the motion, Han will immediately resume his duties—including serving as acting president in the event of a presidential vacancy. With the court prioritizing Han’s case, attention is shifting to the timing of its ruling on President Yoon Suk-yeol’s impeachment, which could be handed down in the latter half of next week. If decisions are issued on Han on Mar. 24, followed by the appellate court’s ruling in Democratic Party leader Lee Jae-myung’s election law case on Mar. 26, and potentially the verdict on President Yoon’s impeachment around Mar. 27–28, the week could unfold as a judicially driven political upheaval. The outcomes of the three high-profile cases are expected to send shockwaves through the country’s political landscape.
MBK seeks to reassure investors amid Homeplus crisis
Private equity firm MBK Partners, the majority shareholder of Homeplus, announced on Mar. 16 that its chairman, Michael ByungJu Kim, will use personal funds to help expedite overdue payments to the discount retailer’s small suppliers, as the company undergoes court-led rehabilitation proceedings. “We take social responsibility for Homeplus’ restructuring,” MBK Partners said in a statement. “As part of this, Chairman Kim will provide financial support to expedite payments to small suppliers facing difficulties.” Kim did not disclose the specific amount of his personal contribution, noting that the final sum will be determined after assessing the total outstanding payments owed to small-scale suppliers. Homeplus separately stated that it will prioritize payments to smaller vendors, excluding large corporations and brand franchisees. The company added that all outstanding commercial claims—including those of partner firms and lease operators—will be settled, though some may take additional time. Despite the pledge, questions remain over the nature of MBK’s financial support. Industry insiders note that the concept of personal contributions in South Korea may differ from practices at global private equity firms. “Private equity firms like MBK often include provisions that allow general partners (GPs) to recover personal financial outlays from fund investors,” said a fund manager at another private equity firm. “While Michael ByungJu Kim has made a public commitment, it remains unclear whether he plans to seek reimbursement through investor capital.” As with CEOs who may have legal expenses covered by their companies when sued in connection with corporate matters, key figures at private equity firms are sometimes permitted to recover personal expenditures tied to fund management from the fund itself.
OECD cuts South Korea’s 2025 growth forecast to 1.5%
The Organisation for Economic Co-operation and Development (OECD) has lowered its 2025 growth forecast for South Korea to 1.5 percent, a 0.6 percentage point downgrade from its previous projection of 2.1 percent issued in December. The revised outlook aligns with the Bank of Korea’s latest estimate and falls below forecasts from the Korea Development Institute (1.6 percent) and the South Korean government (1.8 percent). The OECD also cut growth projections for other major economies, citing “global economic fragmentation” fueled by escalating trade tensions as a key driver behind the weaker global outlook. The organization noted that declining international trade is contributing to rising prices—particularly for imported goods—while governments around the world are ramping up defense and other strategic spending amid a surge in protectionism, exacerbating long-term fiscal pressures. The OECD further warned that countries with close trade ties to the United States are likely to face broad-based economic headwinds as a result of these shifting global dynamics.
LG unveils Korea’s first reasoning AI model, ‘Exaone Deep’
LG unveiled South Korea’s first reasoning artificial intelligence (AI) model on Mar. 18, marking a significant step in the country’s AI development. Unlike conventional AI systems that generate responses based on pre-trained data, reasoning AI models produce answers through step-by-step logical processes that mimic human thought. One prominent example of such technology is China’s DeepSeek, which has recently attracted global attention for offering a cost-effective, high-performance model. As global tech giants such as OpenAI and DeepSeek intensify efforts in reasoning AI, LG’s entry positions South Korea in the growing competition. However, the company stated that the model will not be released for public use and will instead be utilized internally to support product development. LG AI Research introduced the model under the name Exaone Deep, with its flagship variant, Exaone Deep-32B, equipped with 32 billion parameters. These parameters serve as the foundation for data connections in AI learning and reasoning. While a higher parameter count generally leads to improved performance, it also increases demand for AI computing resources. As a result, companies are increasingly focused on maximizing performance with more efficient architectures. DeepSeek’s R1 model contains 671 billion parameters—more than 20 times that of Exaone Deep-32B, which accounts for approximately 5 percent of DeepSeek R1’s scale.
KEPCO’s grid delays push power firms toward legal action
Major power generation companies affiliated with South Korean conglomerates, including Samsung and Posco subsidiaries, plan to file a complaint with the Fair Trade Commission against Korea Electric Power Corp. (KEPCO), citing delays in transmission and distribution network construction that have prevented them from generating and selling electricity. KEPCO, which led the nuclear phase-out policy under the previous Moon Jae-in administration, has accumulated over 200 trillion won ($150 billion) in debt and reported losses exceeding 40 trillion won ($30 billion) since 2021. As a result, the state-run utility company has been unable to expand its transmission infrastructure as planned. The issue has become increasingly problematic nationwide, with private power producers on the country’s east coast particularly affected. Despite investing billions of dollars in power plants, these companies have been unable to operate them at full capacity, with projected losses this year expected to reach hundreds of millions of dollars. “Building a power plant requires large-scale investment, often financed through project financing,” said an industry official. “Since revenue from plant operations is used to repay principal and interest, failing to operate the facility inevitably leads to defaults.”
Asiana Airlines launches discounted fares ahead of Korean Air merger
Asiana Airlines has introduced last-minute promotions for its North America and Europe routes, offering round-trip economy tickets starting at approximately $344. This move is seen as an effort to comply with fare regulations ahead of its merger with Korean Air. According to Asiana Airlines launched its “Last Minute” promotion on Mar. 12 for flights to and from North America, and on Mar. 17 for flights to and from Europe. Even when including fuel surcharges and taxes, the total fare remains under 1 million won ($688.10). For North America, round-trip fares start at about $444 for Los Angeles and San Francisco, around $375 for Seattle, approximately $513 for New York, and about $454 for Hawaii. Tickets are available until March 24 for departures through April 30. For Europe-bound flights, discounted tickets can be purchased until March 21 for departures within March. Total fares start at around $482 for London, $405 for Paris, $344 for Rome, and $439 for Frankfurt.
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