The last thing South Korean monetary officials need to hear about is the US Department of the Treasury’s recent addition of South Korea to its currency monitoring lists. In light of these circumstances, the South Korean government and the country’s businesses will need to be agile in dealing with these external challenges that could emerge.

There are clear indications that Kim and his government are particularly unhappy with the attention and criticism his government’s human rights violations have received. Modest changes have been made by Pyongyang to minimize human rights criticisms. That will only continue if the United States, the United Nations, and other UN member countries continue to call attention to the human rights abuses.

The economic relationship between the United States and South Korea is stronger than ever, but President Donald Trump’s promises of higher US tariffs pose risks to the relationship. As protectionist US trade policies will likely distort current trade patterns, a well-positioned South Korea could stand to benefit.

The year 2024 ended with South Korean President Yoon Suk Yeol’s declaration of martial law, his impeachment by the National Assembly, and the ensuing political turmoil and uncertainty. While 2025 will be largely defined by South Korean efforts to regain normalcy and stability in its domestic and global affairs, as well as the inauguration of the Donald Trump administration, other key issues will define and impact the Korean Peninsula this year.

On December 3, 2024, South Koreans and people across the globe alike were stunned when President Yoon Suk Yeol declared martial law in a late-night, unannounced address. This marked the first use of martial law since South Korea’s transition to democracy in the late 1980s, reviving memories of the country’s authoritarian past and prompting widespread domestic backlash.

South Korea’s healthcare system, often lauded for its universal access and quality, is facing an emerging uneven provider-to-patient ratio crisis. This disparity disproportionately affects rural and underserved regions, where access to medical care is severely limited compared to urban centers. With an aging population and increasing rates of chronic illnesses, the strain on the healthcare system is increasingly growing.