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. 30-Apr. 4.
Yoon removed from office after court upholds impeachment
South Korea’s Constitutional Court on Apr. 4 upheld the impeachment of President Yoon Suk-yeol, officially removing him from office. The unanimous ruling by all eight sitting justices was delivered at 11:22 a.m. Under the Constitution, a presidential election must be held within 60 days if the sitting president is removed through impeachment. As a result, voters will head to the polls no later than Jun. 3 to elect a new president. Yoon is the second South Korean leader to be ousted by impeachment while in office, following Park Geun-hye’s removal in 2017. The ruling has upended the political landscape, thrusting the country into early election mode. Within the main opposition Democratic Party (DP), internal dynamics have taken center stage, with party leader Lee Jae-myung maintaining a wide lead in approval ratings. Political observers are closely watching how figures critical of Lee may position themselves ahead of the vote. The ruling People Power Party (PPP) is expected to see a competitive race among several potential contenders amid speculation over who might emerge to block a shift in political power. Analysts note that with about 20 percent of voters unaffiliated, the outcome remains difficult to predict. In political circles, Jun. 3 is widely expected to be set as the election date.
South Korea hit with 25% U.S. tariff in Trump’s reciprocal trade order
U.S. President Donald Trump on Apr. 2 signed an executive order imposing reciprocal tariffs, raising duties on imports from South Korea to 25 percent. The rate marks the highest imposed on any of the 20 countries with which the United States maintains a free trade agreement (FTA). Trump had previously indicated that reciprocal tariff levels would be determined based on the presence of tariff and non-tariff barriers in partner countries. However, the formula disclosed by the Office of the United States Trade Representative (USTR) on the same day revealed a different approach: the U.S. trade deficit with each country in the previous year, divided by the total value of imports from that country. Confusion briefly arose when Trump publicly cited a 25 percent rate, while the appendix to the executive order listed a 26 percent figure. The discrepancy was later resolved, and the final tariff rate was confirmed at 25 percent. The tariff increase is expected to have far-reaching effects on key South Korean industries, particularly in the automotive and semiconductor sectors.
South Korean SMEs hit hard by U.S. tariff measures
South Korea’s small and mid-sized enterprises (SMEs) are struggling under the weight of U.S. tariff policies introduced during the Trump administration, with many unable to adapt as larger corporations can. Export-reliant firms like an industrial pump manufacturer in Gyeonggi-do have seen overseas orders vanish, while others face stalled deals and mounting uncertainty. Even domestically focused SMEs are feeling the pressure amid fears of intensified competition from Chinese e-commerce giants AliExpress, Temu, and Shein, following a U.S. move to eliminate tariff exemptions on low-value imports. Industry officials warn these companies may now target South Korea to offload surplus inventory through deep discounting, potentially overwhelming local businesses. In response, the Ministry of SMEs and Startups and the Gyeonggi provincial government are rolling out support measures to help affected firms.
South Korea seizes record one-ton cocaine shipment from foreign vessel
South Korean authorities have seized nearly one metric ton of suspected cocaine from a foreign cargo vessel that docked in Gangneung, in what officials on Apr. 2 described as the country’s largest-ever drug bust. The Korea Customs Service and Korea Coast Guard launched the joint operation after receiving intelligence from the U.S. Federal Bureau of Investigation (FBI) and Homeland Security Investigations (HSI) regarding a suspected smuggling attempt. The ship, which departed Mexico in January, made port calls in Ecuador, Panama, and China before arriving at Okgae Port in Gangneung. It was carrying 20 foreign crew members.
Hanwha’s Kim Seung-youn hands over 11.32% stake to sons
Hanwha Group Chairman Kim Seung-youn is transferring nearly half of his 22.65% stake in Hanwha Corp. to his three sons as part of a stake gift totaling 11.32%. Under the plan, his eldest son and Hanwha Group Vice Chairman Kim Dong-kwan will receive a 4.86% stake, while his younger sons—Hanwha Life President Kim Dong-won and Hanwha Galleria Vice President Kim Dong-seon—will each be given 3.23%. The group emphasized that the move is unrelated to Hanwha Aerospace’s 3.6 trillion won rights offering, which has drawn speculation over its potential connection to succession planning. Following the transfer, Kim Dong-kwan becomes the largest individual shareholder of Hanwha Corp., the group’s de facto holding company. A Hanwha official stated, “This finalizes the succession to the third generation of the founding family.” Prior to the transfer, Hanwha Corp.’s major shareholders included Chairman Kim with 22.65%, his three sons with a combined 32.35%, and Hanwha Energy—wholly owned by the three sons—which held 22.16%.
South Korea’s acting president vetoes Commercial Act amendment
South Korea’s acting President and Prime Minister, Han Duck-soo, on Apr. 1, vetoed a proposed amendment to the Commercial Act that would expand corporate directors' fiduciary duties to encompass both the company and its shareholders. Presiding over a Cabinet meeting in Seoul, Han announced that the government had rejected the bill and returned it to the National Assembly for reconsideration. “The government supports the bill’s objective of strengthening protections for minority shareholders and enhancing corporate governance,” Han said. “However, in its current form, the legislation risks undermining corporate competitiveness and introduces legal uncertainty for directors. We must seek alternatives that reduce potential adverse effects.” Han criticized the bill’s language as overly ambiguous. “While the amendment intends to ensure directors act in the interest of all shareholders, it lacks clarity on what types of decisions would meet that standard in practice.” He warned that such ambiguity could expose directors to both civil and criminal liability for management decisions, discouraging bold leadership and potentially hampering economic growth. Emphasizing that the administration does not oppose the bill’s core intent, Han said the government is instead proposing revisions to the Capital Markets Act to better safeguard minority shareholders during corporate transactions, such as mergers and spinoffs. He called on lawmakers to review both the vetoed amendment and the alternative proposal to reach a more practical solution.
Kim Soo-hyun admits past relationship with late Kim Sae-ron, denies underage allegations
Actor Kim Soo-hyun held a press conference on Mar. 31 to address rumors surrounding his past relationship with the late actress Kim Sae-ron. While acknowledging that the two had been romantically involved, Kim strongly denied allegations that the relationship began when Kim was underage. “It’s true that I dated Kim Sae-ron,” he said. “But the claim that we were in a relationship when she was a minor is categorically false.” Kim has filed a criminal complaint against the operators of the YouTube channel HoverLab for allegedly violating the Act on Punishment of Crime of Stalking. He has also filed a civil suit seeking approximately 12 billion won (about $8.2 million) in damages from the channel’s operators as well as from Kim Sae-ron’s surviving family members. Despite the legal action, public criticism remains strong. On the Apr. 1 broadcast of TV Chosun’s Case File 24, an attorney representing Kim Sae-ron’s family claimed that as many as eight of Kim’s acquaintances were aware of the relationship during the period when the actress was still a minor. According to the attorney, those individuals—reportedly frustrated by Kim’s public denial—are in the process of drafting a statement and are considering releasing it to the public.
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