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: Apr. 14-18.
South Korea audit reveals years of housing, employment data falsification under Moon
South Korea’s Board of Audit and Inspection (BAI) disclosed on Apr. 17 that the Moon Jae-in administration systematically manipulated key government statistics on housing prices, income, and employment for much of its five-year term. According to the BAI’s final report, released after a two-year and seven-month investigation launched in September 2022, the falsification was conducted under the direction or pressure of the former presidential office, Cheong Wa Dae. All former presidential policy chiefs—Jang Ha-sung, Kim Su-hyun, Kim Sang-jo, and Lee Ho-seung—were implicated in the findings. The 903-page audit report, which examined the compilation and use of major national statistics, revealed that Cheong Wa Dae and the Ministry of Land, Infrastructure, and Transport tampered with the “Weekly Housing Price Trend Survey” 102 times between January 2018 and October 2021. The Korea Real Estate Board (REB) was reportedly pressured to revise unreleased preliminary data to reflect lower growth rates—or even indicate price declines—if the original figures were deemed politically disadvantageous. In some instances, officials threatened to cut the agency’s budget or personnel if it failed to comply.
South Korean consortium wins $10 m contract to design U.S. research reactor
The Korea Atomic Energy Research Institute and Hyundai Engineering have signed a contract to design the largest university-operated research reactor in the United States—marking a major milestone as South Korea exports nuclear technology back to the country where its atomic journey began. Sixty-six years after receiving its first research reactor from the U.S. in 1959, South Korea is now leveraging its expertise to reenter the global research reactor market. On Apr. 17, the two organizations announced that their consortium—formed with U.S.-based engineering firm MPR Associates—had secured the initial design contract for the University of Missouri’s NextGen Missouri University Research Reactor (NextGen MURR) project. The South Korean consortium was selected as the final candidate in July 2024 after a competitive bidding process and has now formalized the agreement. “Seven companies, including U.S. and Argentine firms, were in contention, but ours was selected,” said Lim In-cheol, executive vice president of the Korea Atomic Energy Research Institute. “This demonstrates global recognition of our advanced capabilities and proven experience.”
BOK pauses rate cuts, maintains 2.75% amid mixed economic signals
South Korea’s central bank left its key interest rate unchanged at 2.75% on Apr. 17, pausing its rate-cut cycle amid increased volatility in the foreign exchange market and a rebound in housing prices that has complicated the policy outlook. At its April meeting, the Bank of Korea’s (BOK) Monetary Policy Board voted to keep the benchmark rate steady, following back-to-back rate cuts in late 2024 and a further reduction to 2.75% in February. The decision comes after a prolonged tightening cycle, during which the central bank raised rates from 0.5% to 3.5% between August 2021 and January 2023, before holding them steady for nearly 17 months. “The Board judged it appropriate to maintain the current rate level while closely monitoring changes in internal and external conditions,” the BOK said in a statement. It added that future policy moves would be aimed at bringing inflation back to target while preserving financial stability.
Seoul records 63 sinkholes over 3 years, raising concerns over ground safety
A review of data from the Seoul Metropolitan Government shows that 63 sinkholes have been reported across the capital over the past three years, from March 2022 through last month. Of those, 19 were located in Gangnam, Seocho, and Songpa—collectively known as Seoul’s “Gangnam 3 Districts”—accounting for nearly 30 percent of all cases citywide. Only two districts, Gwangjin and Geumcheon, reported no sinkholes during the same period. Experts say the findings highlight growing concerns over the city’s ground stability. “These sinkholes are emerging in spring, not even during the summer monsoon season, when heavy rains—one of the primary causes of ground subsidence—typically occur,” one expert said. “It’s a sign that no part of Seoul can be considered entirely safe beneath the surface.” Despite repeated efforts by both the central and municipal governments to introduce preventive measures, concerns remain that extreme summer rainfall could trigger a rise in sinkhole incidents in the months ahead.
South Korea, U.S. to hold talks on Alaska LNG as gateway to trade negotiations
Acting President and Prime Minister Han Duck-soo said on Apr. 14 that South Korea and the United States will hold a virtual meeting within the next two days to discuss the Alaska liquefied natural gas (LNG) project, a move expected to lay the groundwork for broader trade negotiations aimed at easing U.S.-imposed tariffs on South Korean goods. Speaking at a meeting of the Economic Security Strategy Task Force held at the prime minister’s official residence in Samcheong-dong, Seoul, Han said the two countries had agreed to deepen cooperation in three key areas: shipbuilding, LNG, and trade rebalancing. “We’ve created favorable momentum for continued dialogue,” he said. “With the upcoming discussions on the Alaska LNG project, the government will make every effort to ease the tariff burden.” Han also noted that a delegation led by the Minister of Trade, Industry and Energy would soon be dispatched to the United States to launch formal negotiations.
Former president Yoon rejects rebellion charges in opening court hearing
The first trial for former President Yoon Suk-yeol on charges of leading an insurrection was held on Apr. 14, during which Yoon categorically denied all allegations. Addressing the Dec. 3 martial law declaration, Yoon argued, “It was a nonviolent event that was lifted within hours following the National Assembly’s call for its termination. The prosecution’s attempt to characterize it as an act of rebellion is legally groundless.” The hearing lasted roughly six hours and included a 93-minute statement from Yoon himself. He rejected claims that the imposition of martial law had been premeditated, saying, “The idea that we had mapped this out since last spring is completely absurd—it sounds like something out of a comedy.” The second hearing is scheduled for Apr. 21 at 10 a.m.
South Korean opposition plans to dismantle military intel unit if elected
South Korea’s main opposition Democratic Party (DPK) is preparing to dismantle the military’s Defense Counterintelligence Command (DCC) and carry out sweeping reforms of other powerful state institutions if it returns to power, according to party officials and defense sources. The DCC, which has been accused of involvement in attempted detentions of political figures during a Dec. 3 martial law scare, would see its core responsibilities divided among three separate offices within the Ministry of National Defense, under a proposal reviewed by the DPK’s special defense committee. The plan is expected to be adopted as part of the party’s presidential campaign platform once a candidate is officially selected. “The DCC was at the center of the martial law crisis in this country. We cannot allow such a threat to persist,” said Kim Do-gyun, a former chief of the Capital Defense Command and current security adviser to leading DPK presidential hopeful Lee Jae-myung, in an interview with the Chosun Ilbo. “Extreme measures are necessary.” Under the proposed restructuring, military security functions currently held by the DCC would be transferred to the Defense Intelligence Agency, internal oversight duties would move to the ministry’s audit office, and counterintelligence operations would be handled by the ministry’s investigation bureau. Defense sources said the plan would effectively lead to the dismantling of the DCC.
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