Wednesday, August 20, 2025

Political Divide in South Korea Raises Risks for Business and Investment

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South Korea’s political divide has intensified as lawmakers prepare to vote on several contentious bills. The National Assembly faces mounting pressure after recent controversies, including a high-profile pardon and ongoing investigations. Consequently, tensions between ruling and opposition blocs have grown sharper.

The opposition People Power Party has criticized the presidential pardon of liberal politicians. Party leaders also refused to attend President Lee Jae-Myung’s inauguration, deepening the South Korean political divide. In addition, the party strongly opposes upcoming bills that could reshape corporate and media governance.

The ruling Democratic Party and allied groups plan to advance five controversial bills. These include measures to limit administration influence over KBS, MBC, and EBS. Furthermore, the “Yellow Envelope” bill would prevent companies from seeking damages from union strikes. Another Commercial Act revision would strengthen minority shareholders’ rights in corporate board elections.

So far, only the KBS-related bill has passed. However, lawmakers expect a plenary vote on the remaining bills soon. The opposition has hinted at a filibuster, yet their limited numbers reduce bargaining power. Combined, the liberal parties hold enough seats to override stalling tactics within 24 hours.

The South Korea political divide extends beyond the legislative chamber. At a civic inauguration ceremony, conservative leaders, including former presidents, declined to attend. The absence reinforced growing hostility between political factions. Opposition members also staged protests during Liberation Day events, denouncing the recent pardons.

The pardons included Cho Kuk, a former politician convicted of falsifying academic records, and Youn Mee-hyang, found guilty of misusing donations. Their release fueled criticism that the government favored liberal figures. Opposition lawmakers quickly framed the decision as unfair and damaging to democracy.

Meanwhile, the People Power Party faces its own controversies. Investigators attempted a raid at party headquarters, seeking membership records tied to election interference claims. Allegations suggest religious sects may have influenced party elections. The attempted search failed after a lengthy standoff with party members, yet officials vow renewed efforts.

The probe into possible ties between religious groups and political campaigns has added further strain. Some candidates within the People Power Party argue the investigation undermines democracy. At the same time, ruling party officials defend the inquiry as necessary for transparency.

Ultimately, the South Korean political divide continues to widen. With contentious bills, controversial pardons, and heated investigations, polarization has reached new levels. Lawmakers face critical decisions that will shape both governance and public trust.

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