U.S. Ban on Chinese Software in Cars: How Korea Gets Caught in the Middle
On September 2024, the U. S. Department of Commerce proposed a ban, which will be effective from 2027, on key Chinese software in ‘connected vehicles’—a legal term used to describe vehicles that are equipped with extraneous technology such as the Internet and external devices—in the United States to address national security concerns. This regulation also includes a hardware ban taking effect in 2030. This initiative is intended to prevent Chinese intelligence agencies from monitoring and collecting information on American drivers from their connected personal devices. “When foreign adversaries build software to make a vehicle that means it can be used for surveillance, can be remotely controlled, which threatens the privacy and safety of Americans on the road,” Commerce Secretary Gina Raimondo said. Depending on the strictness of these regulations, Korean car manufacturers will have to work out a strategy accordingly, as they rely heavily on exports to the U. S. In fact, the U. S. is the largest automobile export destination for Korea, making up 42. 9% of their global automobile exports according to KIET (Korea Institute for Industrial Economics & Trade). Therefore, the Korean automotive industry has a vested interest in the U. S. ’s new prohibition plan. In fact, this measure could have severe consequences for the Korean automotive industry, posing a significant dilemma to Korean automakers. The first issue related to such a prohibition is that the definition of connected vehicles is excessively broad, which makes it difficult to discern the potential effects on manufacturers. Currently, the U. S. Department of Commerce Bureau of Industry and Security proposes to define the ‘connected vehicle’ as an on-road vehicle that “integrates onboard networked hardware with automotive software systems to communicate via dedicated short-range communication, cellular telecommunication connectivity, satellite communication, or other wireless spectrum connectivity with any other network or device. ” Thus, regulations could potentially include even smaller Chinese parts such as bolts. In this case, most of the recently released vehicles would become subject to U. S. export regulations. Hence, in late April, the Korean government expressed the Korean automotive industry’s concerns over the U. S. ’s envisioned rule on connected vehicles and called for a “precise definition” of the term ‘connected vehicles’. Moreover, such initiatives take a toll on price competitiveness for Korean automakers, as China has long been a cost efficient source for auto parts. Regardless of the exact scope of the regulations, as long as the ban is in effect, automakers will have to localize and diversify the supply chain for auto parts outside of China, resulting in an inevitable loss of price competitiveness as well as an uptick in related costs. The dilemma is clear: adhering to the ban could strain Korea's trade relations with China, yet ignoring it may result in losing critical benefits from the U. S. , whether it be security or economic benefits. There are observations that the U. S. ’s actions may block Chinese automotive competitors from entering the U. S. market, which could be beneficial in the long term; however, the issue seems to result in a net loss for Korea for now. The U. S. -China trade conflict is not a bipartite issue, but a multilateral issue affecting an array of interrelated countries especially in terms of economic interests and political relations. This case in particular highlights how interconnected global markets have become ever since free trade has gained presence worldwide. South Korea has not been immune from it: it is caught in the middle, forced to balance its economic interests and political alliances. For Korea, solutions may lie in continued behind-the-scenes negotiations to secure more precise regulations, and minimize disruption to the auto industry.
Public Holidays: More Than Just a Sweet Treat
Public holidays are welcomed by most people, as they provide them with a brief relief from their responsibilities, such as studies or work. They certainly seem harmless—even beneficial to many, as most workers still get paid as usual despite the day off. However, what most people tend to miss is that when there is a public holiday, necessary services still must continue to be operated, but under extremely tight conditions as the amount of clients surges despite the limited workforce and higher cost of operation. Korea currently has a total of 15 public holidays annually and is in the higher quartile among other OECD countries like Japan (16 days), US (11 days), UK (8 days). It must be noted that public holidays are usually divided into two types: the statutory public holidays, which have been gazetted by the government and are fixed, and temporary holidays, which are spontaneous holidays that are decided by the government on a case-by-case basis. Since most public holidays are fixed, they allow in-advanced planning with more flexibility; however, temporary holidays are often dedicated for sudden events, and their spontaneity has the potential to make situations worse. One may claim that since public holidays can help to stimulate the economy, they are greatly beneficial to the country. On one hand, this is true, as they provide opportunities for people to consume more in various ways, bringing enormous cash flow to various industries. People are encouraged to go on shopping sprees, have a luxurious date night, or even travel domestically, all of which can greatly contribute to the nation’s economy. According to research conducted by the Hyundai Research Institute in 2023 regarding temporary public holidays, a temporary public holiday can bring consumers’ expenses up to 2. 4 trillion KRW and the total production volume can hit 4. 8 trillion KRW. As such, the Korean government has announced temporary public holidays on multiple occasions, citing the need to revitalize the domestic economy as a major factor. However, public holidays are not always benign to everyone. For example, during a public holiday, businesses like retailers will be burdened immensely due to the surge of customers. Furthermore, despite a potential leap in revenue, the cost of human resources will also inevitably rise. This is because during a public holiday, many employees are absent, and employers are required to pay increased wages to retain the necessary workforce. A temporary holiday may make the situation even worse, as it could be more difficult to secure sufficient resources within the limited planning time. Labor-intensive manufacturing industries are not an exception. The Korea Enterprises Federation has raised the concern that during temporary holidays, businesses can experience a decline in productivity and an increase in the labor cost. Therefore, the manufacturing industry may experience great losses due to the lack of labor, and consequent shutting down of factory operations. It remains questionable whether the potential loss will outweigh the gain from the public holidays, as this is hardly to be quantified accurately due to the innumerable factors. Still, it must always be aware that the economic benefits of a public holiday are not simply complimentary. The Hyundai Research Institute mentioned that supportive measures should be taken to encourage domestic rather than international travel in order to maximize the effect of domestic demand stimulation when there is a long holiday. So, to fully enjoy the reward from public holidays and relieve stress from many economic sectors, related policies and actions should be pre-emptively prepared. Overall, currently available public holidays as well as the decision-making process for temporary holidays should continue to be revised so that the benefits can be fully maximized, and the potential losses—which can harm the economy and even the competency of the nation—can be minimized.
Striking the Balance: The Challenges of Student-Athletes in South Korea
Imagine making a life-changing career choice at the age of ten, unsure if the years of effort will pay off. On top of that, there is the pressure of knowing that once you choose this path, there is little room for switching directions later, unless you give up on your dream and start all over again. That is the reality of most student athletes in South Korea. The extensive hours practicing sports along with lower academic expectations, narrow their future options to either fulfilling the nigh-impossible dream of becoming an elite athlete, or pursuing a limited range of sports-related college majors. The system pushes children to make critical decisions at elementary school ages. Lim Se-Eun, a Korean national rhythmic gymnastics athlete, exemplifies the risks and sacrifices involved in pursuing an athletic career. She committed to becoming an athlete at the young age of 10, focusing all her efforts on making it to the national team. “I had to dedicate many hours to practice because a career as a rhythm gymnast is short,” she reflects. “I needed good results in competitions to reach the national level. That was my only chance to fulfill my dream of becoming a professional athlete. ”According to the 2022 sports white paper provided by the Ministry of Culture, Sports and Tourism, over 71,391 students from elementary to high school participate in sports programs. To maintain eligibility, the Korean government declared that student-athletes must adhere to the minimum academic requirements, with a GPA of 50% for elementary school students, 40% for middle schoolers, and 30% for high schoolers. The Ministry of Education also launched online compensatory programs (E-school) to help students who miss classes or fail to meet the academic requirements. However, balancing sports and school remains a significant challenge for many athletes. Lee Gi-soo, a university rugby athlete, explained that the Korean society generally does not expect student-athletes to excel in both, instead influencing to prioritize athletic excellence over academic achievement. “I was told to skip studying because of training or games. Our coach said that being an athlete was our main role,” Lee recalled, reflecting on his middle school years. Even when athletes attend class, they often fall behind due to frequent absences for competitions. The E-school program, designed to help, is frequently neglected under coaches’ pressure, with many students merely turning on online classes, leaving their phones in lockers, and heading to practice. Lee also highlighted the limitations of public education within Korea’s hyper-competitive system, noting that he had to rely on private tutoring to keep up with regular students. Se-Eun shared similar struggles. Her typical day started at 7:40 am, finishing class at 3:30 pm, and heading to practice for eight hours, six days a week. Competitions forced her to miss classes regularly, and the exhausting routine left little time to rest, causing her to miss out on core childhood experiences, such as hanging out with her friends, or going on school field trips. Beyond academic challenges, student-athletes also face limited opportunities for professional careers in less popular sports. While the government does provide support for development in sports, the more popular sports such as baseball, soccer, basketball, and volleyball receive significantly more attention and resources than less mainstream sports like rugby and rhythm gymnastics, which makes it even harder to pursue a professional career as an athlete. The underlying issue lies in the system and cultural attitudes. Instead of offering broad career support, the current approach limits young athletes’ futures. Coaches often impose long hours of practice, discourage attending class, and push students toward a goal without a backup plan–a risky path given the slim odds of becoming a professional athlete. When weighing the pros and cons of becoming an athlete in Korea, it is easy to wonder if the sacrifices are truly worth it. Why not focus on studies like everyone else, aiming for a more secure future? Yet, some students persist, chasing their dream of becoming a professional athlete. Which raises the question – what drives these student-athletes? What motivates them to choose such a demanding path? How do they feel about the crossroads they are presented with–to continue to pursue such a daunting goal, or to compromise for the security of their future?These questions will be further explored in the second part of this series of articles, which will dive into the aspirations, motivations, and personal choices that shape the lives of Korea’s student-athletes. This article is the first in a trilogy of short articles.
