Not MAGA, but MASGA.

• The Korean government plans to propose MASGA (Make American Shipbuilding Great Again), a nod to Trump’s MAGA. The ‘S’ stands for Shipbuilding. It’s a promise to “make American shipbuilding great.”
• The proposal includes local investment in shipbuilding and financial support worth billions of dollars.
• Related Link.

Only Korea Remains.

• The U.S. has reached a tariff agreement with the European Union. The EU also agreed to 15%. They plan to invest an additional $600 billion.
• Donald Trump (U.S. President) stated, “Other countries will be 15-20%.”
• Kim Jung-gwan (Minister of Trade, Industry and Energy) and Yeo Han-gu (Chief Negotiator) are in the UK continuing negotiations. They are discussing defense budget increases and purchasing American weapons.
• Koo Yun-cheol (Minister of Economy and Finance) will meet with Scott Besant (U.S. Treasury Secretary) on the 31st.
• Related Link.

What Matters Now.

What if the Deal Fails? Cars Must Sell for 6.88 Million Won More.

• Cars are hit hard. Japan and the EU settled at 15%, but Korea is still at 25%.
• As of last December, the average price of a new car in the U.S. was 68.8 million won ($49,740). With a 15% tariff, an additional 10.32 million won is added, totaling 79.12 million won. If the tariff is 25%, it rises to 86 million won.
• The Avante is $22,125. The Toyota Corolla is $22,325, and the Volkswagen Jetta is $22,995. If the 25% tariff is fully applied, prices could flip.
• Related Link.

Trump’s Negotiation Formula.

• There are a few hints in the negotiations with Japan and the EU.
• First, they agreed to increase investments in the U.S. Japan pledged $550 billion, and the EU $600 billion.
• Second, they promised to purchase tangible goods. Japan will buy 100 Boeing aircraft, and the EU will purchase $750 billion worth of LNG and nuclear fuel.
• Third, they agreed to increase American products. They will keep the total rice import volume the same but increase the U.S. share. The EU also cleverly packaged money they were going to spend anyway.
• All strategies to save Trump’s face. They didn’t specify it as direct investment, and many details remain contentious.
• Related Link.

Changing Rice Import Quotas Needs Five Nations’ Approval.

• South Korea has a bit of a complex situation. Every year, it imports 408,700 tons of rice, with quotas set for China, Vietnam, the U.S., Australia, and Thailand.
• To increase imports from the U.S., other countries must either increase their quotas proportionally or give their consent.

“No Reason to Sit with South Korea”.

• Kim Yo-jong (Vice Director of the Workers’ Party of Korea) stated, “The inter-Korean relationship has completely moved beyond the time frame of kinship,” adding, “We are not interested in what policies are established or what proposals come out of Seoul.”
• The use of “inter-Korean” also draws attention. It refers to the concepts of two nations, Joseon and Korea.
• Yang Moo-jin (Professor at the University of North Korean Studies) noted, “There is a potential for a low-level shift in perception from ‘indifference and disregard’ to ‘interest and recognition.'” Compared to the Yoon administration’s use of extreme expressions like ‘puppet’ or ‘destruction,’ this is a moderation in tone.
• Jeong Dong-young (Minister of Unification) said, “I will suggest to the President to adjust the South Korea-U.S. joint exercises scheduled for August this year.”
• Related Link.

Yellow Envelope Act Passes Committee.

• It is likely to be addressed in the plenary session next week.
• The key is to limit damage claims against striking workers. It expands the definition of ’employer’ and allows subcontracted workers to negotiate directly with primary contractors.
• “It is said that Lee Jae-myung’s determination played a strong role.” It remains the original bill that Yoon Seok-yeol vetoed twice.

Deep Dive.

849 Guests Invited by Kim Keon-hee to Yoon’s Inauguration.

• 765 were invited by Yoon Seok-yeol (former President).
• Yoon So-and-so (Unification Church Director), accused of giving necklaces and bags to Kim Keon-hee (Yoon Seok-yeol’s wife), is also on the guest list.

Arrest Warrant for Lee Sang-min.

• The special investigation into insurrection accuses Lee Sang-min (former Minister of the Interior and Safety) of active participation in the rebellion.
• According to Hankyoreh, ordering the cut-off of electricity and water constitutes abuse of authority.

Yoon Sang-hyun Turns Away.

• “I asked you to help Kim Young-sun, but there’s a lot of talk in the party. I’ll talk to Sang-hyun more.” This was what Yoon Seok-yeol said when Myung Tae-kyun requested a nomination for Kim Young-sun (former People Power Party lawmaker).
• Yoon Sang-hyun (then People Power Party Nomination Management Committee Chair) claimed he had no phone contact. In a recent prosecution investigation, he testified that Jang Je-won (then Chief of Staff to the President-elect) requested the nomination on behalf of the President-elect, and Yoon Seok-yeol called asking, “Did you get a call from Jang Je-won?” to which he replied, “I’ll discuss it well.”

Lee Jun-seok Under Investigation, Suspect Status.

• When Kim Young-sun received a strategic nomination, Lee Jun-seok (Reform Party member) was the leader of the People Power Party.
• Oh Jung-hee (Special Prosecutor) stated, “Lee Jun-seok is a suspect.” It is believed that Lee participated in Yoon Seok-yeol’s undue influence.
• There are suspicions that at the so-called Chilbulsa meeting, Myung Tae-kyun, Lee Jun-seok, Kim Young-sun, and Chun Ha-ram (Reform Party member) discussed exposing the Yoon couple’s involvement in nominations.
• Related Link.

Another Take.

The Prosecutor General Remains.

• The title of Prosecutor General remains even if the prosecution is dismantled. It’s a constitutional position that can’t be abolished.
• The four prosecution reform bills propose abolishing the Prosecution Service and creating the Public Prosecution Office, the Serious Crime Investigation Office, and the National Investigation Committee. The Public Prosecution Office will handle prosecutions without investigative powers. Investigative functions will transfer to the Serious Crime Investigation Office.
• The Public Prosecution Office falls under the Ministry of Justice, while the Serious Crime Investigation Office is under the Ministry of the Interior and Safety. The National Investigation Committee is under the Prime Minister.
• Hwang Moon-kyu (Professor at Jungbu University) argues, “We must boldly break away from our entrenched perceptions and practices of a prosecutor-dominated criminal justice system and create mechanisms suitable for an era of diversified investigative powers.”
• Kim Jong-min (Lawyer at MK Partners) called it a “pathetically poor bill.” He particularly sees the National Investigation Committee as problematic. He criticizes it as an “unprecedented supra-constitutional control body” that “ignores the fundamental principle of modern criminal justice that all investigations should be under judicial control.”
• Kim Jong-min emphasizes that a system like Germany’s, where “the prosecution is a head without limbs, and the police are limbs without a head,” is appropriate. He suggests that “abolishing direct investigations by the prosecution and allowing police, the Serious Crime Investigation Office, and the Corruption Investigation Office to conduct direct investigations under the prosecutor’s command is the best approach.”
• Related Link.

Lee Jae-myung’s Cabinet: Many Lawmakers, Few Scholars.

• 32% are current lawmakers, while only 7% are professors or scholars.
• Shin Hyun-ki (Professor at Catholic University) remarked, “It aligns with the demand for clear accountability in state affairs.”
• The presence of five business figures is concerning. Park Sang-hoon (Political Scientist) noted, “Democracy involves caution in distributing public assets by private economic powers,” adding, “There needs to be an appropriate distance between business and political power.”
• Related Link.

Senior Crime on the Rise.

• Over four years, violent crime decreased by 16%, but crimes by seniors in their 60s and 70s increased by 12%.
• The number of elderly inmates nearly doubled from 1,797 in 2017 to 3,483 last year.
• Lee Yoon-ho (Professor at Korea Cyber University) analyzed, “The social deprivation and alienation faced by those in their 60s and 70s, who retire earlier than their life expectancy, are becoming a trigger for violence.” Park Seung-hee (Professor at Sungkyunkwan University) pointed out, “When financial difficulties pile up on top of a collapsed social network, isolation and anger can easily manifest as violence.”
• Related Link.

Less Sleep, More YouTube.

• Koreans sleep for 8 hours and 4 minutes. That’s 8 minutes less than five years ago.
• Time spent on media like books, TV, videos, and the internet is 2 hours and 43 minutes, up by 17 minutes.
• Leisure time was 5 hours and 8 minutes.
• Related Link.

Windfall Tax on Easy Interest Profits?

• There is a bill proposed by Lee Jae-myung during his time as a lawmaker. It imposes a ‘co-prosperity financial contribution’ on financial companies that earn net interest income exceeding 120% of their average net interest income over the past five years, capped at 40% of the excess profit.
• The four major financial groups’ interest income surpassed 21 trillion won in the first half of the year. Despite a cut in the base rate, real estate mortgage rates remained unchanged, widening the interest rate gap to 1.21-1.45 percentage points. A financial industry insider said, “The base rate was cut four times since the second half of last year, but it wasn’t reflected in loan rates.” A commercial bank official remarked, “We have no choice but to actively comply with the financial authorities’ tightening of household loans.” It seems the government has been guaranteeing the financial companies’ interest play.
• The Dong-A Ilbo criticized, “Financial holding companies use half of the net profits earned through such ‘easy money’ for dividends and share buybacks.” The Segye Ilbo warned, “Banks should not ignore the social backlash against their interest play.”
• After Lee Jae-myung told a senior aides meeting, “Don’t cling to interest play,” Kwon Dae-young (Vice Chairman of the Financial Services Commission) gathered Cho Yong-byeong (Chairman of the Korea Federation of Banks), Seo Yoo-seok (Chairman of the Korea Financial Investment Association), Kim Cheol-joo (Chairman of the Korea Life Insurance Association), Lee Byeong-rae (Chairman of the General Insurance Association of Korea), and Oh Hwa-kyung (Chairman of the Korea Federation of Savings Banks). No special discussions emerged, but some action is needed.
• The Chosun Ilbo pointed out, “If household loans are halved according to government policy, 5 trillion won in annual profits would be forfeited.”
• Cho Myung-hyun (Professor at Korea University) noted, “If the government’s demand for social responsibility from financial companies is deemed excessive, they might resist by citing the revised Commercial Act to prioritize shareholder interests.”
• Yang Im-seok (Professor at Yonsei University) commented, “While the president’s criticism of interest play has valid points, unless the financial industry’s structure changes to prevent large profits from stable investments like real estate, the conflict between shareholder interests and social contribution will persist.”
• Related Link.
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• Related Link.

ICYMI.

A Place That Could Be Called Hell.

• These are the words of Shin Pyung (Lawyer) after meeting Yoon Seok-yeol.
• “He sits crouched in front of a flimsy cardboard stand, barely managing to eat, and places a Bible on it to read. Beyond that, no intellectual activity is possible. He can’t even do minimal exercise, leading to digestive issues, and at night, he says he can’t move an inch when lying down.”
• Related Link.

Samsung Electronics’ $23 Trillion Deal with Tesla.

• They’ve decided to build a foundry plant in Texas, USA. It will produce AI6 chips for autonomous vehicles and robots.
• Elon Musk (Tesla CEO) stated, “The $16.5 billion is the minimum amount.”

San Francisco’s Chilly Summer.

• In Oakland, California, only one day in July surpassed 23.9 degrees. Early summer feels colder than late winter.
• San Francisco’s average July temperature is 15.2 degrees, while San Jose’s is 19.7 degrees.
• “The coldest winter I ever spent was a summer in San Francisco.” A quote by Mark Twain (author).

The Secret Behind Sheinbaum’s 76% Approval.

• Claudia Sheinbaum (President of Mexico) marks 300 days in office. Her approval rating once soared to 85%.
• She holds daily live press conferences under the name ‘People’s Morning’ (Mañanera del Pueblo).
• She has taken a strong stance against crime cartels.
• She raised the minimum wage by 12%. There are plans to increase it to 2.5 times the basic basket cost by 2030. In Mexico, 30% of workers earn the minimum wage. 40% earn below the minimum wage.

Lee Jae-myung’s Inauguration on Liberation Day’s 80th Anniversary.

• Started work without an inauguration ceremony. Decided to hold the inauguration event as a ‘People’s Appointment Ceremony’ alongside the Liberation Day event.
• A reading ceremony where the people declare ‘I appoint Lee Jae-myung as my president’ will be conducted.

Worth Reading.

The Only Certainty is Uncertainty.

• Lee Tae-kyu (Content Director at Hankook Ilbo) warned, “If you prioritize justification over practicality, practicality becomes mere decoration.”
• If you can’t compromise on rice and beef, you might have to give up apples. Lee emphasized, “A painful but cold judgment is necessary.”
• As of 2023, apple production in North Gyeongsang Province is valued at 824.7 billion won. Sim Sang-hyu (Chairman of Cheongsong County Council) stated, “If American apples are imported, they’ll start pushing out domestic ones from large supermarkets and school meal markets, wholesale prices will collapse, and eventually, many farms will shut down.”
• Related Link.
• Related Link.

Economic Ruin for Yoon Seok-yeol.

• Citizens who filed a damages lawsuit against Yoon Seok-yeol will receive 100,000 won each. The court stated, “It is clear that the plaintiffs suffered mental anguish and damage, expressed as fear, anxiety, discomfort, and shame at the time,” and judged that “100,000 won is sufficiently justifiable.”
• Kim Tae-kyu (Hankyoreh Social Affairs Editor) expressed hope that “this ruling will be finalized,” pointing out that “economic ruin could be another opportunity for atonement for someone who still doesn’t recognize his wrongdoing.”
• If 10,000 citizens file additional lawsuits, it amounts to 1 billion won. Yoon Seok-yeol’s declared assets are 663.69 million won. Kim Geon-hee’s assets are 7.99115 billion won.

What’s Happening in Gaza.

• 122 people have starved to death. Among them, 83 are children.
• Out of 2.3 million facing catastrophic hunger, 1.1 million are affected. It takes two months from the onset of starvation to death. The recent rise in fatalities suggests the beginning of a massive tragedy.
• So far, 60,000 Palestinians have died and 140,000 have been injured.
• Kang Byung-chul (Dream Freedom Representative) emphasized, “We must remember and tell the story.” He believes, “As long as the story is told, hope does not vanish.”
• Related Link.

This Is Hell Itself.

• “Hell is not where people suffer. It is where no one cares to see their suffering.” So said Mansur Al-Hallaj (Islamic thinker).
• 85% of Gaza’s 2.3 million people have lost their homes. 90% of schools are destroyed, and textbooks are torn up for firewood.
• Lee Young-kyung (Deputy Editor of International Affairs, Kyunghyang Shinmun) noted, “If Gaza is hell, it’s not because of the suffering, but because the world turns a blind eye to it.”
• Related Link.