Connect with us

Asia

South Korean parliamentary elections will also determine Yoon’s programme

Published

on

South Korean voters go to the polls tomorrow to elect members of the country’s National Assembly. The outcome could have a lasting impact on the remaining three years of President Yoon Suk-yeol’s five-year term.

Yoon’s conservative People’s Power Party (PPP) is aiming to win a majority against the liberal bloc led by the Democratic Party (DP) in the elections, which will see all 300 seats in the National Assembly, the country’s parliament, contested.

The polls, which opened at 6am, will close at 6pm and voters will elect members of the National Assembly who will serve for four years. While 254 of the 300 seats will be decided by direct district elections, under the country’s partial proportional representation system, voters will also choose a political party and decide the distribution of the remaining 46 seats.

But given Yoon’s relatively weak support – currently hovering in the mid-30s – the PPP will face an uphill battle to wrest a parliamentary majority from the progressive bloc amid the country’s deepening political polarisation.

Instead, observers say the most likely scenario to emerge from the elections is something closer to the status quo, with both sides forced to continue to seek compromise or face the prospect of gridlock on key agenda items.

The PPP has been gaining momentum in the run-up to the elections, with a Gallup Korea poll released late last month showing 37 percent of respondents backing Yoon’s party, 29 percent the DP and 12 percent the third most popular party, the National Innovation Party, which has ties to the DP.

Analysts say the election will closely resemble the 2022 presidential race, in which Yoon narrowly defeated his arch-rival, current DP leader Lee Jae-myung, by just 0.73%, the smallest margin in South Korean presidential history.

Still, experts say voters unhappy with Yoon and the PPP’s performance could punish him and the party at the ballot box by giving the liberal bloc a 200-seat majority to override presidential vetoes and even push through measures to impeach the president.

Tokyo and Washington watching closely

Yoon’s performance in the election will be closely watched in Tokyo and Washington.

With strong encouragement from Washington, the South Korean leader has taken ambitious and politically delicate steps to rebuild Seoul’s once frayed bilateral relations with Japan, while strengthening trilateral ties with the United States, the two countries’ common ally in the face of North Korea’s growing nuclear and missile threat.

Yoon has also worked closely with the administration of US President Joe Biden, who has sought to revitalise Washington’s alliances in Asia in the face of China’s assertive foreign policy.

It is unclear exactly how the elections will affect Seoul’s foreign policy orientation, but no significant change is expected no matter who wins. Observers say that South Korea’s president wields too much power in agenda-setting and policy implementation, and that the National Assembly has little room to take on the president’s foreign policy agenda.

“I don’t think the election will have any impact on South Korea’s foreign policy,” said Ramon Pacheco Pardo, a professor at King’s College London and an expert on the two Koreas, noting that despite the DP’s current power in the National Assembly, “Yoon has been able to establish close ties with the US and much closer ties with Japan”.

“Whatever the outcome of the election, I hope Yoon will be able to continue his current foreign policy without facing major obstacles from the National Assembly,” Ramon told The Japan Times.

Still, Seoul’s alliance with Washington remains overwhelmingly popular in South Korea, while an opposition victory could raise doubts about the continuity of trilateral cooperation with Japan, which ruled the Korean peninsula as a colony from 1910 to 1945.

While public support for the move has increased under Yoon’s impetus, the issue remains controversial, and Seoul’s ties with Tokyo – and the many historical issues that have dogged relations since normalisation in 1965 – have traditionally been used as a powerful political weapon against conservatives.

Tokyo and Washington may therefore be concerned about the election results, which could have implications for the future of their staunch ally Yoon.

If he fails to secure a parliamentary majority, he may find it difficult to push through his agenda

Indeed, bogged down and forced to devote resources to defending its policies, the Yoon administration may find it difficult to advance the president’s agenda, especially as it grapples with scandals and gaffes that have stagnated approval ratings.

The president’s gaffe during a supermarket visit last month, when he described the price of green onions, a common ingredient in South Korean cuisine, as “reasonable”, sparked a huge wave of criticism amid voter concerns about inflation.

Corruption also remains a top issue for many voters.

The Dior bag scandal, in which ambassador and first lady Kim Keon-hee, who resigned last month amid controversy over her appointment amid a corruption probe, allegedly accepted a gift of a 3 million won ($2,250) luxury bag, has put Yoon and the PPP on the defensive.

Experts say the public’s perception of Yoon as indifferent to their concerns could have repercussions, especially if his party suffers an electoral setback.

Asia

Pentagon plans covert spy ring for economic war on China, report says

Published

on

The US Department of War (Pentagon) is reportedly planning to establish an extensive network of deep-cover agents to wage economic warfare against China and other adversaries of the US.

According to a report by The Washington Post citing six sources familiar with the initiative, the plan has not yet been put into effect. The newspaper reported that the initiative remains at the planning stage. The Pentagon, however, denies that any such initiative exists.

The report said the operatives would pose as entrepreneurs or private sector employees while concealing their ties to the US government. The network’s mission would be to gather economic intelligence and counter China.

The programme is led by Tom Rakusa, who spent 39 years at the CIA. Rakusa serves as a senior adviser to Deputy Secretary of Defence Steve Feinberg.

The proposed spy network is seen as part of a broader policy by the Donald Trump administration to sharpen economic competition with other countries.

The US is already resorting to tariffs, export controls, and investment in strategic sectors, alongside expanding its economic intelligence gathering.

According to The Washington Post, the new initiative demonstrates the Pentagon’s growing influence under the Trump administration. The department is currently seeking a record budget of $1.5 trillion.

Trade war flares up again with Trump’s return to the White House

The trade friction between the US and China flared up again following Donald Trump’s return to the White House. In April 2025, Washington raised tariffs on Chinese goods to as much as 145%, and Beijing retaliated with tariffs of up to 125%.

In May, US Secretary of State Marco Rubio described China as the primary geopolitical challenge facing Washington. Rubio said that to avoid war, the two sides needed to manage their conflict of interests.

In July, Chinese expert Zheng Yongnian did not simply warn that underestimating the US could prove to be a “fatal mistake”; he stated it explicitly.

According to Zheng’s assessment, the US maintains its primacy through the role of the dollar, its military superiority, and its technological advantages.

Even so, the two sides agreed in June to declare a truce and lower tariffs. In autumn 2026, the US and China extended their trade truce until 10 January 2027.

US Treasury Secretary Scott Bessent said the extension would give the parties more time to discuss economic issues.

Trade deals do not eliminate the strategic contradictions between the two countries. Financial Times columnist Rana Foroohar likened the race between the two nations for commercial, technological, and geopolitical influence to the 19th-century “Great Game” between the Russian and British empires.

Foroohar cited China’s standing in shipbuilding and commercial maritime transport, as well as its expanding footprint in overseas ports, among its key advantages.

Continue Reading

Asia

Japan plans curbs on short-term home sales to cool urban prices

Published

on

Japan’s ruling Liberal Democratic Party (LDP) plans to restrict short-term property trading to rein in surging home prices in major urban centres, particularly Tokyo.

Led by Prime Minister Sanae Takaichi, the party aims to make support for working households a core priority ahead of local elections scheduled for April next year.

The LDP’s research commission on housing and land policy met on Wednesday to discuss the issue.

According to a report by the Nikkei Asia newspaper, Commission Chair and LDP lawmaker Midori Matsushima said at the opening of the meeting: “Prices of newly built condominiums across Tokyo’s 23 wards have doubled over the past decade. We must work on measures ensuring that people who wish to live in these homes can actually afford to buy them.”

Homeownership in the capital has become virtually unattainable for broad segments of the population. According to data from the Real Estate Economic Institute, the average sale price of a newly built condominium in Tokyo’s 23 wards rose %18.5 in fiscal 2025 compared with the previous year, reaching 137.84 million yen (around $872,000).

Meanwhile, statistics from the Ministry of Labour show that the average annual income of a full-time worker in the capital remained at 6.78 million yen in fiscal 2025. This widening gap between incomes and residential property prices is directly shaping political priorities.

During its campaign for the House of Representatives election in February, the LDP pledged to curb speculative transactions across metropolitan Tokyo and other regions. Earlier this month, a party project team focused on policies concerning foreign nationals also submitted a recommendation urging the government to introduce immediate tax measures against rising home prices.

Under current legislation, profits realized from properties sold within five years of acquisition are classified as “short-term capital gains”. These returns face a tax rate approaching %40, including income tax and local inhabitant tax.

Although this rate is twice the approximately %20 levied as “long-term capital gains” tax on properties held for more than five years, several party members argue it remains insufficient to deter speculation. Calls to tighten the framework may be considered as part of the annual tax reform package to be drafted in December alongside the LDP’s coalition partner, the Japan Innovation Party.

The ruling bloc wants to present concrete housing pledges to voters heading to the polls in April across numerous urban centres, including 22 of Tokyo’s wards where local assembly terms expire.

“We need to support families with children, who are typically at the stage of purchasing a home,” a senior LDP official said.

Opposition parties are also preparing alternative proposals that target not only prospective homebuyers, but also residents forced into the rental market by high property prices and now affected by escalating rents.

Tax steps take precedence over limits on foreign buyers

Several countries seeking answers to housing affordability pressures have imposed direct restrictions on foreign purchasers. In South Korea, real estate policies played a major part in the declining public approval ratings of President Lee Jae Myung.

In August 2025, authorities in Seoul introduced an approval requirement for foreign nationals buying homes in the capital and adjacent areas, while also mandating that buyers reside in the properties for at least two years.

Canada and Australia have enacted temporary bans on foreign residential purchases, while Singapore levies a %60 additional stamp duty on foreign buyers.

The role of overseas investors in Japan’s property market also drew debate during the February election. However, restrictions aimed directly at foreign nationals are viewed as potentially conflicting with international trade and services agreements.

Consequently, rather than imposing restrictions based on the nationality of buyers, the government is discussing tax measures aimed at speculative real estate deals, such as rapid resales.

Fears that sharp market measures could shake regional banks

Concerns have also surfaced that aggressive steps to force down prices could harm the wider national economy.

A senior LDP tax official cautioned that a steep drop in land prices could weaken local financial institutions, warning: “We must consider the impact on regional banks.”

The real estate sector accounts for roughly %18 of total lending by Japanese banks. This proportion sits well above the %10 level recorded during Japan’s bubble economy of the mid-to-late 1980s.

At certain regional banks, property lending accounts for nearly half of total loan portfolios.

According to March 2025 data from the Financial Services Agency, approximately one-quarter of all loans extended by regional banks to the real estate sector are concentrated directly in Tokyo’s five central wards.

Buoyant asset valuations, supported in part by rising stock indices, have underpinned strong public approval for the Takaichi administration. Observers note that property interventions designed to cool the market could drag down equity prices and weaken the government’s standing.

A senior official on the LDP research commission stressed that decision-makers must act with caution regarding the scope and timing of any measures intended to bring price increases under control.

Continue Reading

Asia

South Korea plans $120B spend on eight US nuclear power plants

Published

on

South Korea will spend $120 billion to construct eight nuclear power plants in the US under an agreement that provides for $350 billion in investments in exchange for lower tariffs.

The South Korean government also announced that Seoul and Washington will begin examining a liquefied natural gas (LNG) project in Alaska comprising a large-scale pipeline to transport natural gas from the north of the state to the south, alongside the construction of an LNG terminal for exports overseas.

Seoul stated that a decision regarding the LNG project will be made following a commercial feasibility study. However, US President Donald Trump said that South Korea would invest $54 billion in the project, pointing to an apparent lack of full coordination between the two sides on the matter.

Trade and Industry Minister Kim Jung-kwan said in a statement: “This announcement opens a new horizon of cooperation where the two countries join forces to develop joint commercial ventures in strategic areas directly linked to economic security and future sectors such as artificial intelligence, nuclear energy, and LNG.”

“We will adhere to the principle of prioritising national interests and investing solely in commercially viable projects,” Kim said.

Speaking at the White House, Trump characterised South Korea’s plans as “one of the largest energy infrastructure investments in American history”.

The announcement followed a meeting between Trump and South Korean President Lee Jae Myung roughly one year ago at the APEC Economic Leaders’ Meeting held in South Korea, where they agreed on the creation of a $350 billion investment fund.

Under that agreement, $150 billion was allocated to the shipbuilding sector and $200 billion to other sectors. In return, the US announced it would reduce tariffs imposed on goods imported from South Korea from 25% to 15%.

Under the nuclear power project, South Korea’s state-controlled utility will build two plants in the US, while Pennsylvania-based Westinghouse Electric will construct six plants.

According to the South Korean government, this will mark the first instance in which a foreign country builds its own nuclear power plants in the US.

South Korean firms are also evaluating the possibility of acquiring a stake in Westinghouse as part of negotiations over sharing profits generated by the project.

South Korea additionally announced that it will build a $22.3 billion natural gas-fired power plant in Texas with a capacity of 6,472 megawatts.

The facility will be designed to supply electricity directly to nearby data centres. The project’s first phase is targeted to begin commercial operations in 2029, with full-capacity operations slated for 2032.

Seoul also disclosed that it had agreed to allow the US to receive 50% of the profits generated by the projects until South Korea recoups all of its investments.

After South Korea fully recovers its total investment amount, 90% of the profits will go to the US.

Continue Reading

MOST READ

Turkey