In this week’s episode of The Korea Pro Podcast, John and Joon Ha begin by discussing South Korea’s deepening domestic downturn, beginning with South Korea’s job-to-applicant ratio collapsing to the lowest level since the 1998 Asian Financial Crisis. They assess how the labor freeze intersects with the chaebol capital strike, as nearly 60% of major firms halt 2026 investment plans amid tax, labor and decarbonization pressures.

They then discuss Mexico’s 35% tariff wall targeting Asian supply chains — a move that directly threatens the logistics model used by Korean automotive and electronics firms for decades. They then discuss the Federal Reserve’s quarter-point rate cut, evaluating what impact it may have on South Korea.

Turning to defense and security, the hosts review Peru’s agreement to purchase 54 K2 tanks and 141 K808 armored vehicles, a deal marking South Korea’s largest ground-systems export to Latin America. They also discuss the fallout from the Unification Church scandal, culminating in the resignation of the oceans minister.

The episode closes with a look ahead to next week’s developments: Laotian President Thongloun Sisoulith’s visit to Seoul for a summit focused on economic and security cooperation, and National Security Adviser Wi Sung-lac’s trip to Washington for high-stakes consultations on nuclear-powered submarines, enrichment capabilities and South Korea’s defense spending commitments under the new U.S.-ROK strategic framework.

About the podcast: The Korea Pro Podcast is a weekly conversation hosted by Korea Risk Group Executive Director Jeongmin Kim, Editor John Lee and correspondent Joon Ha Park, delivering deep, clear analysis of South Korean politics, diplomacy, security, society and technology for professionals who need more than headlines. Uploaded every Friday.

This episode was recorded on Thursday, Dec. 11, 2025.

Audio edited by Gaby Magnuson