Recent advances in large audio language models (LALMs) have enabled multilingual speech understanding. However, benchmarks for evaluating LALMs remain scarce for non-English languages, with Korean being one such underexplored case. In this paper, we introduce **KoALa-Bench**, a comprehensive benchmark for evaluating Korean speech understanding and speech faithfulness of LALMs. In particular, KoALa-Bench comprises six tasks. Four tasks evaluate fundamental speech understanding capabilities, including automatic speech recognition, speech translation, speech question answering, and speech instruction following, while the remaining two tasks evaluate speech faithfulness, motivated by our observation that several LALMs often fail to fully leverage the speech modality. Furthermore, to reflect Korea-specific knowledge, our benchmark incorporates listening questions from the Korean college scholastic ability test as well as content covering Korean cultural domains. We conduct extensive experiments across six models, including both white-box and black-box ones. Our benchmark, evaluation code, and leaderboard are publicly available at [https://ksbench.github.io/Koala-Bench/](https://ksbench.github.io/Koala-Bench/).

Diffusion language models (DLMs) alleviate the inherent latency bottleneck of autoregressive (AR) large language models (LLMs), but their degraded generation quality limits practical applicability. Although knowledge distillation (KD) can be a promising direction for improving performance, we empirically find that naively applying conventional KD yields only marginal gains, or even degrades generation quality. Based on these observations, we propose a novel self-distillation framework for DLMs, namely SelFusion. To enable effective KD without an external teacher model, SelFusion performs two forward passes with different masking levels, defining the hard mode with a larger masking probability and the easy mode with a smaller masking probability. However, the easy mode is not always more accurate than the hard mode and can be overconfident on incorrect tokens. Thus, we introduce bidirectional KD between the two modes, which can dynamically determine the distillation direction based on token-level correctness. Experimental results on instruction-following tasks show that the proposed self-distillation substantially outperforms other KD methods with external LLM and DLM teachers. In many configurations, the student trained with SelFusion even surpasses the performance of the LLM teacher, providing a practical path toward improving DLM generation quality. Source code can be found at https://github.com/scai-research/SelFusion_official