Grain Management Act Amendment Passed.

• The bill was scrapped when Yoon Seok-yeol (then President) exercised his veto during the Yoon administration.
• The Grain Management Act amendment stipulates that the government pays the difference when rice prices fall below the standard price. It was blocked by a veto in the Yoon administration but has been reintroduced. The revised bill now mandates purchases within the scope defined by presidential decree.
• The Local Currency Act also passed.

Broadcasting Laws Face Filibuster.

• KBS board members to increase from 11 to 15, and Foundation for Broadcast Culture board members from 9 to 13. National Assembly’s recommendation reduced to 40%, with viewer committees and media-related academic societies gaining recommendation rights.
• Immediately after the proposal, Shin Dong-wook (People Power Party member) and others began a filibuster (unlimited debate), but after 24 hours, it can be forcibly ended and put to a vote with the approval of three-fifths of the assembly members.
• A People Power Party member said, “There’s nothing we can do,” adding, “It’s a situation bound to break, utterly powerless.”
• Chosun Ilbo criticized it as “legislative overdrive without brakes.”
• The Kyunghyang Shinmun editorial stated, “As long as political circles manipulate board recommendations like ‘patrons,’ the controversy over public broadcasting control cannot be eradicated,” emphasizing, “It’s time to properly return public broadcasting to citizens and the media.”
• The Hankook Ilbo editorial pointed out, “If a precedent is set for forcibly passing laws directly linked to press freedom, the bad habit of viewing public broadcasting as spoils of election victory and disputes over broadcasting control cannot be avoided.” It suggested that “to remain stable and sustainable, regardless of the regime and majority party, it should be handled by consensus,” but Jeong Cheong-rae (Democratic Party leader) insists he won’t even shake hands with the People Power Party, making it an unrealistic proposal.
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The Salami Strategy for the Yellow Envelope Act.

• Propose-filibuster-vote after 24 hours: the so-called salami strategy, passing one by one.
• The decision to handle the three broadcasting laws first reflects the will of Jeong Cheong-rae (Democratic Party Leader).
• The July session will conclude after addressing the three broadcasting laws, with the remaining bills to be handled in the August session starting on the 21st.

What Matters Now.

Kim Keon-hee to Appear for Special Prosecutor Tomorrow.

• There are three main charges. Evidence and testimonies are secured.
• First, receiving expensive gifts from the Unification Church.
• Second, receiving polling results for free from Myung Tae-kyun and requesting a nomination for Kim Young-sun (former People Power Party lawmaker).
• Third, involvement in the Deutsche Motors stock manipulation case.
• A former prosecutor commented, “When the scope of investigation is vast, it’s crucial to focus on solid matters, but the Kim Keon-hee special prosecutor seems to be investigating for the sake of it.”
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Big Support for Kwon Seong-dong.

• In January 2022, ahead of the presidential election, this sentence was noted in the diary of Yoon Young-ho (Unification Church Headquarters Director).
• It suggests lobbying for Kwon Seong-dong (People Power Party lawmaker), known as a key ally of Yoon. The special prosecutor has secured a message saying, “Use it for candidate Yoon Seok-yeol.”
• Yoon Young-ho is accused of giving a necklace worth 60 million won and a Chanel bag worth 20 million won to Geonjin Beopsa.
• Kwon Seong-dong told a JTBC reporter, “I have never had any financial dealings, requests, or inappropriate ties with the Unification Church.”
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National AI ‘Death Match’.

• Five teams, including Naver, Upstage, SK Telecom, NCAI, and LG Management Development Institute, are competing.
• 15 teams participated, narrowed down to 10, and finally 5 teams were selected.
• A support of 200 billion won is provided, with one team eliminated every six months. By 2027, only two teams will remain.

Another Accident at POSCO E&C.

• A worker of Myanmar nationality suffered an electric shock and is unconscious.
• There have been four fatal accidents this year.
• Lee Jae-myung (Democratic Party Leader) strongly criticized it as “murder by willful negligence,” and after safety inspections began, an accident occurred on the very day work resumed.

Ban on Public Remarks about Tax Reform.

• Jeong Cheong-rae (Democratic Party Leader) instructed Han Jeong-ae (Democratic Party Policy Chair) to prepare and report on Plan A and Plan B. He asked lawmakers to refrain from public remarks. The atmosphere is one of discomfort.
• The National Assembly petition has surpassed 130,000 signatures.
• CLSA released a report titled “Yikes, tax hikes,” pointing out that the tax reform plan could pressure the Korean stock market.
• JP Morgan analyzed that the Korean stock market needs more fuel to rise further. This implies a change in tax reform direction or an increase in corporate earnings is necessary.
• The presidential office is in a wait-and-see mode. Kang Yoo-jung (Presidential Office Spokesperson) only stated, “We are ready to listen attentively.”
• Lee Jae-jung (Democratic Party Lawmaker) remarked, “Policy cannot be based on necessity alone,” adding that “humility is the general mood of the party.”
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Min Hyung-bae, Choi Min-hee, Baek Hye-ryun.

• These are the special committee chairs appointed by Jeong Cheong-rae. All are considered hardliners.
• Min Hyung-bae (Democratic Party lawmaker) leads the prosecution reform committee, Choi Min-hee (Democratic Party lawmaker) heads the media reform committee, and Baek Hye-ryun (Democratic Party lawmaker) is in charge of the judicial reform committee.
• Jeong Cheong-rae declared, “We will drive the three major reforms like a storm and finish them in a flash.”
• Hwang Myung-sun (Democratic Party Supreme Council member), elected as a top committee member alongside Jeong Cheong-rae at the party convention, argued that “Yoon Seok-youl’s arrest process should be broadcast live online.”
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Deep Dive.

Stricter Major Shareholder Rules Won’t Drop Year-End Stock Prices.

• Concerns arose that lowering the major shareholder threshold for capital gains tax from 5 billion won to 1 billion won would lead to more people selling and rebuying stocks at year-end to avoid the criteria.
• The Hankyoreh analyzed KOSPI returns from 2015 to 2024, finding December returns at 1.15%, the third highest after November and April. In 2018, when the tax base expanded, it was -2.66%.
• The Hankyoreh pointed out, “Attempts to abolish the securities transaction tax and broaden the tax base to include overall financial income, including stock capital gains, failed, leading to misconceptions that only some major shareholders face capital gains tax, causing stock prices to fall.”
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Broadcasts to North Korea Halted, Loudspeakers Removed.

• Lee Jae-myung’s resolve to cease hostile acts and build trust. No prior consultation with North Korea. Lim Eul-chul (Professor at Kyungnam University) predicted, “It will take a long time to restore the severed ties between the two Koreas.”

Retired Shipbuilding Masters Join ‘Masuga’ Project.

• 42,766 employees work in five shipbuilding companies, with about 1,000 retiring each year.
• A Hanwha Ocean representative stated, “American employees are highly satisfied with the transfer of skills from Korean experts.”
• HD Hyundai has produced 29 master technicians, with 2,249 skilled technicians currently employed.
• While much of shipbuilding technology is automated, key processes like welding, painting, and piping still rely on human hands.

Another Take.

Top 40% Earners Claim 73% of Tax Deductions.

• They account for 59% of income deductions and 73% of tax reductions. High-income earners enjoy up to four times more reduction benefits than low-income earners.
• The total income deduction amounts to 36.2 trillion won, with tax reductions at 3.7 trillion won.
• Concerns arise that income inequality will worsen as the government plans to increase the income deduction limit per child by 250,000 to 500,000 won this year.
• Yong Hye-in (Basic Income Party lawmaker) argued, “We should abolish the credit card income deduction and use it to expand child allowances.”
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The Fix.

Move the Meteorological Administration to the Ministry of Interior and Safety.

• Currently, it is under the Ministry of Environment.
• Kim Hae-dong (Professor at Kyungpook National University) suggested, “The Meteorological Administration should not just predict the weather but be developed into a department that meticulously responds to climate disasters.”
• The U.S. National Oceanic and Atmospheric Administration (NOAA) is under the Department of Commerce, and Japan’s Meteorological Agency is under the Ministry of Land, Infrastructure, Transport and Tourism.

Organ Donors Decrease by 11%.

• Last year, there were 3,931 organ donors. The number of transplant candidates increased by 6% to 54,789. The average waiting period is 2,193 days.
• Posthumous donations fell from 38 to 10, and brain death criteria donations decreased from 483 to 397.
• The brain death donation rate is 7.8 per million. In the U.S., it’s 49.7, and in Spain, 48.0.
• The living donation rate was high at 38.7. In the U.S., it’s 20.6, and in the UK, 14.4.
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Lowering the Thermometer, Not the Temperature.

• When criticized for high temperatures at Coupang’s logistics centers, they reportedly turned the fans towards the thermometers.
• “They were trying to lower the thermometer’s reading with the fan breeze,” said Jeong Seong-yong (Head of the Public Transport Union’s National Logistics Center Branch).
• Workplaces with a perceived temperature above 33 degrees are supposed to guarantee a 20-minute break every two hours, but this is not properly observed. Some logistics centers even shuffle break times. Workers on air-conditioned floors are sent to non-air-conditioned floors to work during break times.
• It’s noted that less than 10% of the areas have air conditioning.
• Coupang claims, “We provide cooling towels, cooling vests, ice water, and additional break times regularly,” adding, “We invest hundreds of billions of won annually in expanding cooling and ventilation facilities and cool zones.”
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ICYMI.

Eyewear Stores See Biggest Sales Jump from Coupons.

• According to Korea Credit Data analysis. From July 21 to 27, when coupon distribution began, card sales increased by 12% compared to the previous week.
• Eyewear stores saw a 57% increase, fashion and clothing sales rose by 28%, and noodle specialty restaurants by 24%, among others.

Tesla Autopilot Compensation Ruling.

• Autonomous driving is not yet perfect.
• A U.S. federal court in Miami has held Tesla 33% responsible for a fatal Autopilot accident, ordering $243 million in compensation. More lawsuits are expected to follow.
• GM halted its robot taxi business after investing 14 trillion won over 10 years, seeing it as difficult to avoid liability.
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Arts Center’s Cumulative Deficit: 70.3 Billion Won.

• In 30 years, only 2008, 2010, and 2023 saw profits. Those were years with corporate sponsorship or government support.
• Some call it the “Hall of Deficits.” It’s hard to escape the red with just ticket sales. The more classical and opera performances are planned, the more the deficit grows.
• The Arts Center pays nearly 5 billion won annually in comprehensive real estate and property taxes.
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Worth Reading.

Favoritism Wrecks Organizations.

• Hwang Se-won (Director of One-Man Research Institute) outlined three ways organizational bullying operates.
• First, personal errands become organizational tasks. “Why do you handle such things yourself when you’re busy?”
• Second, there’s a middle manager who enforces the bullying. “Manager Kim, come here and do this for me.”
• Third, the bullying trickles down.
• Hwang warned, “Thanks to the working president, the public is feeling relieved, but hearing slogans like ‘Remember,’ ‘True Command,’ or ‘One Team’ from one side makes us uneasy.”
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Is Anyone Left for the Mars Project?

• Not long ago, shipbuilding was a headache. Employment, once at 200,000, dropped to 80,000 and has barely recovered to 110,000. Still, there’s a labor shortage, with 30% filled by migrant workers.
• Yang Seung-hoon (Professor at Kyungnam University) predicts, “The day when American and domestic engineers’ salaries are directly compared is not far off,” adding, “With the current lack of new hires in primary production compared to retirees, supporting U.S. projects, let alone domestic construction, will be impossible.”
• The story goes, “As much as expanding business scope, strengthening the core of skilled workforce training has become crucial.”
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Building Ships and Shipyards Together.

• There’s a famous story about Chung Ju-yung (former Chairman of Hyundai Group) showing a 500 won bill with a turtle ship on it to secure investment.
• When asked who would buy the ships, he promised to build them by a set date, offering to return the deposit with interest if he failed, and allowing buyers to reject the ship and get their money back if there were issues.
• In December 1970, they secured their first ship order. By April 1971, they began preparing the site, held a groundbreaking ceremony in March 1972, and started construction in March 1973, building blocks on bare ground due to the lack of a dock. The ship was delivered in November 1974.
• Choi Jin-sook (Editorial Writer at Financial News) pointed out, “If we lose focus, we might end up as subcontractors for the U.S.”
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Yoon Suk-yeol’s Tragic Love Story of Self-Destruction.

• Last October, Yoon Suk-yeol said, “It’s my karma,” and “I’ll take the hits,” as he defended Kim Kun-hee. Around that time, he sent drones to Pyongyang and sparked a rebellion 40 days later. Lee Ki-soo (Kyunghyang Shinmun Editor) remarked, “Kim Kun-hee, who lived above the law, sitting in a special prosecutor’s office marks the end of an era.”
• Lee emphasized, “We must toll the bell for lies and dark money, reform the prosecution and Board of Audit and Inspection that propped up Yoon Suk-yeol, and amend the narrow, outdated constitution.”
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Kim Keon-hee’s Belated Special Investigation Appearance.

• Yoon Seok-yeol dismissed Song Kyung-ho (then Seoul Central District Prosecutor) who insisted on a face-to-face investigation of Kim Keon-hee. His successor, Lee Chang-soo (former Seoul Central District Prosecutor), visited Kim Keon-hee and cleared her of charges.
• Jung Won-soo (Deputy Editor of Dong-A Ilbo) pointed out, “It was the prosecution that nurtured and abetted the ‘Kim Keon-hee family’s’ sense of privilege.”
• “There wasn’t a single prosecutor willing to investigate according to principles, nor did anyone step forward to thoroughly probe the well-known suspicions surrounding them. Removing obstacles to ensure timely and proper oversight and investigation of those in power, and if necessary, making investigative bodies check and compete with each other, should be the core of future investigative body reforms.”
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The Hankyoreh Backs Calls for Cho Kuk’s Pardon.

• Park Chan-soo (Hankyoreh Senior Reporter) draws attention with his column.
• “The core issue isn’t whether to include Cho Kuk (former leader of the Cho Kuk Innovation Party) in the pardon list. It’s whether those who fought for impeachment can accept it if Cho is excluded.”
• Park Chan-soo states, “We cannot deny Cho Kuk’s role in preventing the December 3 coup and in bringing about the impeachment of a reckless president,” suggesting, “The new government’s first pardon should symbolize overcoming the coup, advancing democracy, and should be a broad amnesty that includes figures worthy of such tolerance.”
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