South Korea is facing a complex web of economic negotiations and public anxiety as talks with the United States over a massive investment package coincide with a surge of concern about information security at home. On September 30, 2025, National Security Adviser Wi Sung-lac spoke candidly about the prospects for a currency swap arrangement with the U.S.—a move seen as a safeguard for Seoul’s $350 billion investment pledge. At the same time, a recent survey revealed overwhelming public unease over a series of large-scale data breaches affecting both the private and public sectors in South Korea.
Wi, a seasoned diplomat with years of experience negotiating with Washington, didn’t mince words when asked about the likelihood of a currency swap deal. According to Yonhap News Agency, he stated, “Our government has suggested a currency swap line, but it will not be easy given precedent in how the U.S. has handled such arrangements.” He emphasized that while a swap is among the "necessary conditions" for the investment package, “other sufficient conditions must also be met for a deal to be finalized.”
The investment package under discussion is tied to a reduction in U.S. tariffs on Korean goods, from 25 percent down to 15 percent. Negotiators from both countries are working against the clock to make headway before the Asia-Pacific Economic Cooperation (APEC) summit, scheduled for October 31 to November 1, 2025. “I am not sure when the time will be but the APEC summit could serve as an opportunity,” Wi remarked, hinting at the potential for a breakthrough but not promising one.
Despite his caution, Wi struck a note of guarded optimism. “From my own experience of having led tough negotiations, I am not that pessimistic,” he said. The talks are not limited to trade and currency issues. According to Yonhap, Seoul and Washington have reached “equilibrium” on a security package that includes South Korea’s increased defense spending and proposed revisions to a nuclear pact, which would allow Seoul to secure spent fuel reprocessing capability. Under the current agreement, South Korea can only enrich uranium below 20 percent with U.S. consent and is barred from reprocessing spent nuclear fuel. Seoul is now seeking to ease these restrictions, a move that could have significant implications for its energy policy and strategic autonomy.
Meanwhile, President Lee Jae Myung’s North Korea dialogue initiative—referred to as the END initiative for “exchange,” “normalization,” and “denuclearization”—remains a cornerstone of inter-Korean policy. Wi explained that these three elements are not sequential but are instead “designed to provide momentum for one another.” However, he acknowledged that the envisioned “normalization” of inter-Korean relations would be a long and arduous process, particularly given the current security environment on the peninsula. The two Koreas, after all, remain technically at war; the 1950-53 Korean War ended with an armistice, not a peace treaty. “The end point will be normalization within the special relationship,” Wi said, noting that this approach is rooted in past agreements and has been upheld by previous governments.
While the government grapples with high-stakes negotiations abroad, trust in domestic institutions is being tested by a wave of information leaks. A Realmeter survey conducted on September 24, 2025, and reported by The Korea Herald, found that a staggering 94.8 percent of 500 surveyed adults considered information leaks a serious issue. Even more striking, 92.2 percent said they felt “uncomfortable and worried, regardless of the damage inflicted (personally).” Only a scant 5.7 percent expressed indifference if their own data had not been compromised.
The public’s anxiety is not unfounded. South Korea has recently been rocked by massive hacking attacks targeting major mobile carriers KT and SK Telecom, as well as credit card giant Lotte Card. The breach at SK Telecom alone resulted in the theft of data related to nearly 27 million customers—an astonishing figure by any measure. In response, the affected companies have rolled out compensatory benefits for victims. However, the Realmeter survey revealed that 83.1 percent of respondents believe the government should step in and implement a system of punitive damages for data theft. When asked about the preferred method of compensation, 49.3 percent favored direct financial compensation, while 21.3 percent opted for discounts in service fees.
Trust in corporate protective measures is also alarmingly low. About 67.1 percent of those surveyed said they do not trust companies’ ability to protect personal information. Furthermore, 88.7 percent indicated that a company’s capacity to safeguard customer data is now the most important factor for them—outweighing even the benefits or costs of the services provided.
The string of attacks hasn’t been limited to private companies. According to government reports cited by The Korea Herald, the Ministry of Health and Welfare and its affiliated agencies were hacked a staggering 56,208 times in 2025 alone. The previous year saw 3.91 million pieces of personal information stolen from government-affiliated bodies. These numbers underscore the scale and persistence of the threat, fueling public demand for stronger regulatory and punitive measures.
What’s driving this surge in cyberattacks? Experts point to a combination of increasingly sophisticated hacking techniques and the growing value of personal data, both for criminal enterprises and state actors. The attacks have exposed vulnerabilities in both corporate and public sector defenses, prompting calls for a comprehensive overhaul of cybersecurity practices and regulations. The government, for its part, faces mounting pressure to not only improve its own systems but also to hold companies accountable for lapses that put millions at risk.
The convergence of these issues—high-stakes economic negotiations with the U.S. and a crisis of confidence in data security—reflects the challenges facing South Korea as it seeks to balance global ambitions with domestic stability. As negotiators work to bridge differences with Washington ahead of the APEC summit, the government must also address the urgent need for stronger protections against data breaches and more robust compensation for victims.
For ordinary Koreans, the stakes are personal and immediate. The threat of having one’s data stolen is no longer an abstract concern; it’s a daily reality, as evidenced by the near-universal anxiety captured in recent surveys. Whether the government can deliver on both fronts—securing a favorable economic deal abroad and restoring trust at home—remains to be seen. But one thing is clear: the margin for error is shrinking, and the public’s patience is wearing thin.
As South Korea stands at this crossroads, the coming weeks could prove pivotal—not just for its economic future, but for the sense of security and confidence its citizens have in their nation’s institutions.
