Seoul court cancels 68.7 billion won of Netflix Korea tax assessment A South Korean court on Monday ordered tax authorities to cancel 68.7 billion won ($?) of a corporate tax assessment against Netflix’s South Korean unit. The Seoul Administrative Court’s Administrative Division 6, led by Presiding Judge Na Jin-i, ruled partly for Netflix Services Korea in its lawsuit seeking to overturn corporate tax and related assessments imposed by the head of the Jongno tax office and other officials. The court ordered the cancellation of 68.7 billion won of the roughly 76.2 billion won Netflix sought to void. The panel said it dismissed the portion of the case challenging local corporate income tax assessments issued by the heads of Jung-gu and Jongno-gu in Seoul, finding there was no separate legal interest to contest them apart from the cancellation of the withholding tax collection and corporate tax assessments made by the Jongno tax office. The dispute stems from a 2021 National Tax Service audit in which the agency concluded Netflix reduced its taxable profit in South Korea by shifting a significant share of revenue earned in the country to its U.S. headquarters. The tax agency said Netflix paid more than 80% of its sales to its headquarters under items such as “management advisory fees” and “content usage fees,” inflating costs. According to Netflix’s audit report, of last year’s South Korean sales of 823.3 billion won, about 81% — 664.4 billion won — flowed to the U.S. headquarters. As a result, operating profit booked in South Korea was low, and corporate tax paid totaled 3.6 billion won, or about 0.16% of sales. The National Tax Service imposed about 80 billion won in additional taxes, applying suspected tax-avoidance grounds. Netflix won a partial reduction through the Tax Tribunal but still challenged the outcome, filing an administrative lawsuit in November 2023. In earlier hearings, Netflix argued that because the service is operated by an overseas entity, its South Korean unit served only as a reseller. It said the overseas Netflix entity has the personnel and facilities and oversees content delivery, while Netflix Services Korea only managed the company’s Korean OCA, its own caching servers. On that basis, it argued money sent from Netflix Services Korea to the overseas entity was business income, not copyright royalties. Tax authorities countered that taxation was justified because Netflix Services Korea effectively used and exercised the copyrights. The National Tax Service said Netflix Services Korea paid copyright royalties to the overseas entity and therefore had a withholding obligation. 2026-04-28 12:24:19

China Media Defends Block on Meta’s Planned Acquisition of AI Startup Manus China’s state media on Tuesday defended the government’s decision to block U.S. tech giant Meta from acquiring Chinese-founded AI startup Manus, calling the move “reasonable, lawful and consistent with international practice.” China’s National Development and Reform Commission said the previous day it had decided, “in accordance with the law,” to ban foreign capital from acquiring the Manus project and had asked Meta to withdraw from the deal. Manus, founded in China, drew attention after unveiling a general-purpose AI agent in March last year and was at one point dubbed “a second DeepSeek.” Months later, it raised U.S.-linked funding and moved its headquarters to Singapore, prompting suspicions it was trying to sidestep U.S. and Chinese regulations. After Meta announced late last year it would buy Manus for about $2 billion, concerns grew in China about the loss of domestic talent and technology, and regulators moved to halt the transaction. In an editorial, the state-run Global Times said the central issue was that Manus, which grew using Chinese engineers and infrastructure, took U.S. investment and then cut ties with China. The paper said many in the industry viewed the shift as “Singapore washing” — relocating to Singapore to avoid scrutiny from both Washington and Beijing — and noted allegations the deal amounted to “acquihiring,” or buying a company mainly to secure its staff. The editorial said the government had not disclosed specific reasons for the block but argued China had sufficient jurisdiction and legal grounds. It said that even if Manus is incorporated in Singapore, its early research and development took place in China and key data are also based there, making the movement of people, technology and data directly tied to national interests. It added that whether China has jurisdiction depends on the company’s links to China in technology, talent and data and their relationship to national interests, citing measures on foreign investment security reviews, export-control technology lists and the foreign trade law as grounds for requiring a security review. The Global Times also said the action aligns with international practice, arguing that cross-border mergers involving sensitive technologies — including AI, data, algorithms, core software and key personnel — are not merely commercial transactions and that countries have broadly tightened investment security reviews. Markets are watching whether the decision can force the deal to be unwound. Under China’s foreign investment security review measures announced in late 2020, outcomes fall into three categories: “approval,” “conditional approval” and “investment ban.” If parties refuse to comply, authorities can order the disposal of equity or assets within a set period, place the party on a bad-credit record in a national credit information system and impose joint disciplinary measures as provided by regulations. Bloomberg said it was unclear whether the deal would collapse. Laila Kawaaja, head of research at Gavekal Dragonomics, said the decision carries “significant symbolic meaning” but that canceling the transaction would be difficult in practice because capital and technology transfers have already progressed substantially. Some observers said China could seek influence by restricting overseas activities by Manus executives or pressing for reduced roles or resignations on the Meta side. Kawaaja said the move also signals a clampdown on Chinese startups shifting headquarters to places such as Singapore to attract global investment. She called it a strong warning against a “de-China strategy” aimed at accessing overseas funding and markets, adding that China appears willing to allow global expansion while tightly controlling the outflow of talent and technology. * This article has been translated by AI. 2026-04-28 12:21:20

South Korea to Brief Exporters on New EU Packaging Rules Taking Effect in August The South Korean government is stepping up support for industry as the European Union prepares to enforce new packaging rules in August. The Ministry of Climate, Energy and Environment said Monday it will hold a joint government briefing Tuesday at the National Railroad Authority auditorium in Dong-gu, Daejeon, titled “Joint Government Briefing on Global Regulations in the Packaging Materials Sector.” The session is designed to help domestic companies respond to the EU’s Packaging and Packaging Waste Regulation, or PPWR, set to take effect in August, and the Food-Contact Plastic Packaging Safety Regulation, due to take effect in September. The PPWR applies to all packaging used in the EU and sets broad sustainability requirements, including limits on hazardous substances, compliance with recyclability grading standards, mandatory use of recycled content and bans on excessive packaging. Key provisions include restrictions on heavy metals and PFAS, a ban on placing products on the market with recyclability below 70%, and a requirement that plastic beverage bottles contain 30% recycled material. The food-contact plastic packaging rule strengthens safety standards for plastic containers that touch food, tightens requirements to prevent contamination from impurities in recycled plastics and expands obligations to provide information to consumers. The government said the rules could affect the production, distribution and consumption of virtually all physical goods, making early preparation necessary. It expects heavier compliance burdens for sectors with high exports to Europe, including food, cosmetics and household products. Officials said ministries have so far tracked the regulations through bilateral consultations with the EU and held separate briefings, but decided a more systematic, comprehensive response was needed. At the briefing, the ministry and the Korea Environment Corporation will explain the PPWR’s main requirements and practical compliance steps, including required documentation. The Ministry of Food and Drug Safety will present response strategies tailored to the food and cosmetics sectors, including the food-contact plastic packaging rule. The Ministry of Agriculture, Food and Rural Affairs and the Ministry of SMEs and Startups will outline sector-specific measures and ministry support programs for the agriculture and food industry and for small and medium-sized businesses, respectively. The government said it will continue operating an interagency working-level task force starting with this briefing. “Stronger EU-led standards on the sustainability and safety of packaging materials will have a significant impact across our industries,” said Kim Go-eung, director general for resource circulation at the ministry. “The government will continue working with industry to prepare thoroughly in advance and enhance the sustainability of our products and export competitiveness.”* This article has been translated by AI. 2026-04-28 12:11:19

More Than Half of South Korea’s Farm, Forestry and Fishing Population Is 65 or Older More than half of South Korea’s farm, forestry and fishing population is now 65 or older, as household sizes continue to shrink rapidly. According to the National Data Policy Agency’s preliminary results of the “2025 Census of Agriculture, Forestry and Fisheries” released on the 28th, the farm, forestry and fishing population totaled 2,576,000 people as of last December, living in 1,276,000 households. That compares with about 2.38 million people and 1.06 million households in the 2020 census — increases of about 196,000 people and 216,000 households. The agency said the rise reflects an expanded statistical scope as more people moved to rural areas and additional administrative records — including farmland ledgers, fisheries registration lists and forestry management databases — were added to the survey coverage. The share of residents ages 65 and older in farm, forestry and fishing households rose to 51.0% in 2025 from 41.9% in 2020, up 9.1 percentage points. That is more than 2.5 times the share in the overall population, which stood at 20.3%. By sector, the elderly share was 51.3% for farm households, 48.2% for fishing households and 47.9% for forestry households. In farm households, the share of working-age residents (15-64) was 45.8% and the share of children (0-14) was 2.9%, down 23.7 percentage points and 7.3 percentage points, respectively, from the overall population. The median age was 65.3, or 18.6 years higher than the national figure. Smaller households also became more common. One-person households accounted for 27.2% in 2025, up from 20.0% in 2020, an increase of 7.2 percentage points. The share of three-person households fell to 11.6% from 14.3%, and four-person households dropped to 7.4% from 11.9%. Two-person households made up 53.8% last year, the largest share, meaning one- and two-person households accounted for more than 80% of all farm, forestry and fishing households. By area, the share living in “dong” neighborhoods rose to 32.4% in 2025 from 27.5% in 2020, while the share in “eup” and “myeon” areas fell to 67.7% from 72.5%. The shift reflects a move toward dong areas, where medical care, transportation and education are generally more accessible than in eup and myeon communities. 2026-04-28 12:10:16

South Korea Mortgage Rates Rise for Sixth Month to 4.34%, Highest in 2 Years Mortgage rates in South Korea rose for a sixth straight month, reaching their highest level in 2 years and 4 months. According to the Bank of Korea’s “weighted-average interest rates of financial institutions” data released on the 28th, the average rate on new mortgage loans at deposit-taking banks in March was 4.34% a year, up 0.02 percentage points from the previous month. It was the highest since November 2023 (4.48%). Lee Hye-young, head of the BOK’s financial statistics team, said the increase reflected a sharp rise in long-term benchmark rates, including the five-year bank bond yield. Rates on general unsecured loans also rose, up 0.04 percentage points to 5.57%, turning higher for the first time in three months since January. The overall household loan rate climbed 0.06 percentage points to 4.51%. Across household and corporate lending, the overall bank loan rate fell 0.06 percentage points to 4.20%, as corporate loan rates declined on support such as preferential rates aimed at expanding corporate credit. Rates for large companies (4.11%) and small and midsize firms (4.17%) fell 0.02 and 0.11 percentage points, respectively. The share of fixed-rate mortgages dropped sharply over the month, falling 10.3 percentage points to 60.8% from 71.1%. The fixed-rate share of all household loans also slid to 35.5% from 43.1%, the lowest since September 2022 (33.6%). The average rate on new savings deposits fell 0.01 percentage points to 2.82% a year, reversing course after a month. Rates on time deposits and other pure savings deposits (2.79%), as well as market-linked products such as financial bonds and certificates of deposit (2.98%), also slipped 0.01 percentage points each. With loan rates falling more than deposit rates, the gap between new loan rates and savings deposit rates narrowed by 0.05 percentage points to 1.38 percentage points. However, the gap based on outstanding balances, rather than new lending, widened 0.01 percentage points to 2.27 percentage points.* This article has been translated by AI. 2026-04-28 12:09:12

General Insurance Association of Korea Launches Consumer Protection Council The General Insurance Association of Korea said on the 28th that it held a launch ceremony and first meeting for its “General Insurance Consumer Protection Council.” The council was formed — the first of its kind in the financial sector — as regulators step up consumer-protection efforts. The association said the group will work to strengthen consumer rights and advance a “consumer-centered transformation” of the nonlife insurance industry. It is expected to propose industrywide consumer-friendly improvement tasks and directions, with the goal of boosting trust in the sector. Lee Byeong-rae, chairman of the association, said it was meaningful to launch a self-regulatory body to lead fundamental change in response to growing demands for stronger financial consumer protection. He said the industry needs to move away from responding after issues arise and instead identify and resolve improvement tasks from the consumer’s perspective. He added that he hopes the council will help restore trust in the nonlife insurance sector and support sustainable growth by strengthening competitiveness. The association said the council will pursue practical change through a four-step process: agenda discovery, in-depth discussion, task implementation and follow-up management, rather than limiting its work to collecting opinions. It said it will actively reflect views raised by the council. For matters requiring legal revisions or policy support, it will consult closely with relevant agencies. For steps that can be implemented immediately at the industry level, it plans to urge swift action through meetings of chief consumer protection officers, or CCOs.* This article has been translated by AI. 2026-04-28 12:08:25

Climate Ministry to Train ESG Specialists, Issue Scope 3 Guides for Petrochemicals and Steel The government will move ahead this year with a program to train ESG professionals and will release guidance on calculating Scope 3 greenhouse gas emissions for the petrochemical and steel industries, aiming to strengthen companies’ ability to respond to environmental, social and governance rules. The Ministry of Climate, Energy and Environment said April 28 it will run an ESG management professional training program from May through November to help companies build capacity for sustainable management. The ministry said the program was designed to help companies develop practical response capabilities as sustainability disclosures expand internationally and product-based environmental regulations tighten. Companies face growing pressure as ESG disclosure requirements and environmental rules such as carbon border adjustment mechanisms strengthen rapidly in global markets. Securing hands-on staff who can collect and analyze relevant data and apply it to management strategy has emerged as a key challenge. The government plans to shift away from theory-heavy instruction and expand training built around practice and case studies. It also plans to broaden “on-site training” tailored to regional demand to improve access for companies outside the capital area. The curriculum will focus on strengthening capabilities for carbon neutrality, with expanded practical content on carbon-reduction technologies and renewable energy transitions to help companies respond to mandatory sustainability disclosures and global carbon regulation trends. Courses will be offered monthly, with notices to be posted in early and mid-month. Separately, the government will support companies in calculating Scope 3 emissions, an area it said is among the most difficult for businesses. Scope 3 covers not only a company’s direct emissions but also indirect emissions across its supply chain, making the boundary broad and data difficult to secure. The ministry has published Scope 3 calculation guides since 2023 reflecting the characteristics of major export industries. This year it will newly release tailored guides for petrochemicals and steel. The petrochemicals guide includes calculation methods reflecting a complex value chain from raw material procurement through product use and disposal. The steel guide includes methods based on key raw materials by process and standard processes, along with examples of using circular resources to improve applicability in the field. The guides were developed through a consultative body involving the ministry, the Korea Environmental Industry & Technology Institute, major companies by sector and industry associations, and present practical, sector-specific guidelines. The guides will be available starting April 29 on the ministry’s official website and the Environmental Responsible Investment Integrated Platform. An English translation of last year’s guide for the semiconductor and display industries will also be released. Jeong Seon-hwa, the ministry’s director general for green transition policy, said, “Amid international ESG regulations and the trend of carbon regulation, securing companies’ practical response capabilities is more important than anything.” She added, “We will systematically support responses to international sustainability disclosures and carbon regulations by linking professional workforce training with the provision of calculation standards.”* This article has been translated by AI. 2026-04-28 12:07:26

South Korea raises minimum antitrust fines for cartels to 10%, seeks full recovery for unfair support The Fair Trade Commission will sharply raise the minimum rates used to calculate administrative fines for violations of South Korea’s Fair Trade Act, including a steep increase for cartels and tougher penalties for unfair support and private-benefit schemes. The FTC said on the 29th it will enforce revised fine guidelines starting on the 30th. Violations that ended before the effective date will be handled under the previous guidelines. Under the act, the FTC calculates fines based on sales related to the violation, multiplied by a rate that varies by the seriousness of the conduct. The revision significantly raises the minimum rate applied across violation types. For cartels, the minimum rate will rise to 10% from 0.5%. For serious cartels, it will increase to 15% from 3%, and for very serious cartel conduct, to 18% from 10.5%. For unfair support and private-benefit schemes, where fines are based on the amount supported or provided multiplied by a rate, the minimum rate will rise to 100% from 20%. That allows the FTC to recover the full amount of support or provision as a fine regardless of the assessed seriousness. The maximum rate will also jump to 300% from 160%, enabling punitive-level fines. Surcharges for repeat offenders will be strengthened. Currently, a company with one violation in the past five years faces an increase starting at 10%, rising up to 80% depending on the number of violations. Under the revision, a single prior violation can trigger an increase of up to 50%, and the increase can reach up to 100% depending on the number of violations. For cartels, any prior record of an order to pay fines within the past 10 years can lead to an increase of up to 100%. The FTC will also remove or narrow discretionary reductions. Companies that cooperate during the investigation and deliberation stages can currently receive reductions of 10% at each stage, up to 20% total. Under the revision, a reduction of up to 10% will be available only when a company cooperates consistently from the investigation through the end of deliberations. The maximum reduction for voluntary corrective action will be cut to 10% from 30%, and a 10% reduction for minor negligence will be eliminated. The FTC said the revision is intended to end the practice of treating fines as a routine cost of doing business and to strengthen fair competition. It added that the new rules provide a basis for strong sanctions against cartels that harm people’s livelihoods and said it expects cartel conduct to be dramatically curbed.* This article has been translated by AI. 2026-04-28 12:06:32

Korea to Tighten Oversight of Green Claims in Online Platform Ads With Industry Training The Ministry of Climate, Energy and Environment and the Fair Trade Commission will provide training to strengthen oversight of environmental labels and advertising in the online retail market, aiming to improve the credibility of green claims. The ministry and the FTC said on April 28 they will hold an “environmental labeling and advertising” training session on April 29 at the Korea Environmental Industry & Technology Institute auditorium in Eunpyeong-gu, Seoul, for major mail-order brokerage operators and sellers on online distribution platforms. As green consumption spreads and interest in eco-friendly values grows, labels and ads highlighting the environmental benefits of products and services have increased rapidly. In online platform sales involving many sellers, the accuracy and consistency of environmental information has become a key factor affecting consumer trust and market integrity. Environmental labeling and advertising are overseen by the climate ministry under the Environmental Technology and Environmental Industry Support Act and by the FTC under the Act on Fair Labeling and Advertising. Industry has called for clearer, more unified guidance on how the rules are interpreted and how investigations are conducted. The training was designed to meet that demand by improving companies’ understanding of the system and strengthening practical compliance capabilities. The Korea Environmental Industry & Technology Institute and the Korea Online Shopping Association will run the program. The agenda includes trends and key issues in the mail-order brokerage system, an overview of environmental labeling and advertising rules, major review cases under the labeling and advertising law, and guidance on proper environmental claims. To allow participation by sellers nationwide, the session will be offered both in person and via live online streaming. The two agencies also plan to prepare and distribute a joint guideline on environmental labeling and advertising by the end of the year. The guide is intended to provide integrated direction on the standards used by both agencies, support companies’ understanding and compliance, reduce unfair green claims, and strengthen consumer protection and market trust. Jeong Seon-hwa, the climate ministry’s director general for green transition policy, said, “We hope this training helps companies accurately understand the environmental labeling and advertising system and use it properly,” adding that the agencies will continue working together to improve consistency and effectiveness in oversight. Information Reum, director general of the FTC’s Consumer Policy Bureau, said the session was arranged so companies do not face difficulties from legal and institutional uncertainty as they pursue “environmental management.” She said the government plans to strengthen monitoring while improving rules on environmental labels and advertising that are closely tied to people’s everyday consumption. * This article has been translated by AI. 2026-04-28 12:05:23

South Korea Renames ‘Job Basic Skills’ as ‘Job Common Skills,’ Cuts Framework to Seven Areas The Ministry of Employment and Labor and the Human Resources Development Service of Korea said on 28일 they will rename “job basic skills” as “job common skills” and overhaul the framework into seven areas. The ministry described job common skills as core competencies all workers need regardless of occupation, such as communication, numeracy and problem-solving. The broader system consists of three parts: job-specific skills under the National Competency Standards (NCS), job common skills and general foundational competencies. NCS and job common skills are used as key indicators for human resources development. Introduced in 2003, the framework has not been revised for more than 20 years, prompting calls to update it. The government said it will pursue a major restructuring after gathering feedback from workplaces. The ministry said the name change is intended to avoid the misunderstanding that the framework measures only basic academic ability and to clarify that it covers universal competencies required of all workers. The existing structure of 10 areas and 34 sub-skills will be reorganized into seven areas and 21 sub-skills. Items seen as less useful amid labor market changes will be eliminated, while new areas will be added, including artificial intelligence use, digital responsibility and industrial safety and health awareness. The seven areas are communication, numeracy, problem-solving, self-management, interpersonal skills, digital skills and work ethics. Sub-skills include: communication (written, oral and foreign-language communication); numeracy (calculation, use of statistics and use of charts); problem-solving (problem analysis, identifying alternatives and decision-making); self-management (career development, adaptive learning and time management); interpersonal skills (collaboration, leadership and conflict management); digital skills (digital use, AI use and digital responsibility); and work ethics (work ethic, workplace community awareness and industrial safety and health awareness). The ministry said it will also expand field-oriented learning content. It plans to produce and distribute instructor guides and learner workbooks within the year, reflecting demand for practical materials. It will also develop video lectures to allow learning regardless of time and place and release them through the Korea University of Technology and Education’s STEP portal. “In the AI era, companies want talent with job common skills that can flexibly adapt to rapidly changing technology and see essential problems through to the end,” said Pyeon Do-in, director general for job skills policy at the ministry. He said the government will quickly distribute the revised standards and related content and “fully support” job seekers so they can strengthen fundamentals and remain competitive in the workplace.* This article has been translated by AI. 2026-04-28 12:04:17