“A Nobody.”.

• “I sincerely apologize for causing concern as a nobody like me. I will cooperate fully with the investigation.” This is what Kim Keon-hee (Yoon Seok-yeol’s wife) said when she arrived for the special prosecutor’s investigation. The Hankyoreh analyzed this statement as containing both a “defense strategy” and a “barb.” It suggests a strategy to appeal to conservative supporters by explaining that she, as merely the president’s wife, holds no authority.
• Related Link.

Not Just a ‘Nobody’.

• Kim Keon-hee, in a call with ‘Voice of Seoul’, said, “When I take power.”
• In the Dior bag video, she remarked, “Having been in this position,” and “I plan to actively engage in inter-Korean issues.”
• When she was on Mapo Bridge with the police, she commented, “Being on site, there are still many shortcomings,” and “We must always pay attention and respond proactively,” showing behavior beyond the usual scope of a First Lady.
• The Kyunghyang Shinmun editorial pointed out, “A ‘nobody’ shook the state affairs, and that’s precisely state manipulation.”
• The Chosun Ilbo editorial noted, “If Kim Keon-hee had sincerely apologized and corrected her behavior three years ago, the president today would be Yoon Seok-yeol.”
• Related Link.
• Related Link.

Kim Keon-hee Faces Arrest Warrant Today.

• Kim Keon-hee was questioned from 10:23 a.m. to 5:46 p.m. yesterday and reviewed the records until 8:40 p.m.
• The special prosecutor prepared over 100 questions, covering half in just three hours.
• The special prosecutor believes the charges are sufficiently confirmed and plans to request an arrest warrant without a second investigation.

Kim Keon-hee’s Clumsy Defense and Incriminating Evidence.

• Dong-A Ilbo reported Kim Keon-hee’s response as follows.
• Regarding the Deutsche Motors stock manipulation case, she claimed, “I only lent my account and was unaware of the stock manipulation.”
• In the nomination interference case, she countered, “Myung Tae-kyun unilaterally sent survey data, but I never interfered in nominations.” According to JoongAng Ilbo, Kim argued, “I had no power, but Myung Tae-kyun kept contacting me, so I cut him off through the presidential office.”
• She claimed, “The necklace worn at the NATO summit was a fake, and I never received valuables from Jeon Seong-bae (Geonjin Monk).”
• The special prosecutor secured a phone recording from a Mirae Asset Securities employee who managed Kim’s account. It contains solid evidence that “Kim Keon-hee entrusted her account to the stock manipulation group and agreed to give them 40% of the profits.” The special prosecutor views her as an accomplice, not just an accessory.
• Escaping the nomination interference is also difficult. There is a recording of Kim calling Myung Tae-kyun, saying, “The president-elect told me to support Kim Young-seon.”
• It has not yet been confirmed whether Necklace A, given by Yoon Young-ho (then Unification Church headquarters director) to Jeon Seong-bae, and Necklace B, found at Kim Keon-hee’s brother-in-law’s house, are the same.
• Related Link.
• Related Link.
• Related Link.

90,000 Won Eco Bag.

• There was controversy over Dior and Chanel bags, but yesterday an eco bag made an appearance. JoongAng Ilbo reported it as a 140,000 won item.
• Brought a lunchbox but didn’t eat it.
• Unlike Yoon Seok-yeol, did not exercise the right to remain silent.

Won Hee-ryong Is Going?

• The key issue is how Lee Jong-ho (former CEO of Black Pearl Investment) knew in advance about Sambu Construction’s involvement in Ukraine’s reconstruction project.
• It was revealed that Lee Ki-hoon (Vice Chairman of Sambu Construction) mentioned in a Telegram chat on May 2, 2023, that Won Hee-ryong (then Minister of Land, Infrastructure and Transport) would attend the Ukraine Reconstruction Forum. How did Lee Ki-hoon know about the schedule that wasn’t publicly disclosed?
• The special prosecutor suspects Kim Geon-hee might have leaked the information. The forum was held on May 22, and Sambu Construction’s stock price nearly doubled by two days after the forum.
• Lee Ki-hoon is currently on the wanted list, having gone into hiding without appearing for a warrant review.
• Related Link.

What Matters Now.

Yoon Seok-yeol’s Second Arrest Attempt Today.

• The special prosecutor has stated, “We will execute the arrest warrant using physical force.”
• On the 1st, the attempt failed as he lay down in his underwear after removing his prison uniform.
• Jeong Seong-ho (Minister of Justice) instructed the Seoul Detention Center to “actively cooperate with the special prosecutor’s execution of the arrest warrant.”

Expulsion of Lee Chun-seok.

• Jeong Cheong-rae (Democratic Party Leader) expelled Lee Chun-seok (former Chairman of the Legislative and Judiciary Committee). After being caught in a proxy stock transaction, he resigned from the committee and left the Democratic Party.
• The Korea Times assessed, “Jeong Cheong-rae acted swiftly.” It noted a sense of crisis that momentum could falter before reforms even began.
• A Democratic Party lawmaker said, “I was worried they might shield him like Kang Seon-woo (former Minister of Gender Equality and Family nominee), but thankfully not,” adding, “Expulsion seems the best they could do.”
• Lee Jae-myung (President) instructed during his vacation, “Get to the bottom of this and conduct a thorough investigation.”
• Kim Byung-ki (Democratic Party Floor Leader) stated, “We can do more than just expulsion,” emphasizing, “We take the expulsion issue seriously.”
• The Seoul Metropolitan Police Agency will handle Lee Chun-seok’s case. It’s a violation of the Capital Markets Act.
• Related Link.

Choo Mi-ae Succeeds Lee Chun-seok.

• Jung Cheong-rae stated, “Special situations require special measures,” and promised to “swiftly proceed with the election process.”
• Choo Mi-ae (Democratic Party member) is a six-term lawmaker and former Minister of Justice. Typically, standing committee chairs are third-term lawmakers.
• Many observe that this appointment reflects Jung Cheong-rae’s determination to complete the three major reforms before Chuseok.

Will POSCO E&C Lose Its License?

• Lee Jae-myung gave another order while on vacation. He instructed to “find all legally possible measures, including revoking the construction license and banning public bids” for POSCO E&C, where an industrial accident occurred.
• Four people have died this year, and a worker has been in a coma since the accident on the 4th.

Deep Dive.

15% Tariff Takes Effect Today.

• Reciprocal tariffs rise from 10% to 15%.
• Cars have been at 25% since April, but there’s a plan to reduce it to 15%. No signature yet.
• Pharmaceutical tariffs remain. Donald Trump (U.S. President) said, “We’ll start with a small tariff, but in a year to a year and a half, it’ll rise to 50%, eventually reaching 250%.” If you want to sell medicine in the U.S., move your production facilities there.
• Related Link.

US Economy Hit, Growth Rate to Drop by 0.5%.

• According to Yale University’s Budget Research Institute, the effective tariff rate in the US is 18.4%, the highest since 1930. Inflation, reduced consumption, and potential economic growth decline are on the horizon.
• Inflation is expected to rise by 1.8 percentage points, and this year’s and next year’s economic growth rates are projected to drop by 0.5 percentage points.
• Related Link.

Temporary Visa Waiver for Chinese Tour Groups.

• Until June next year.
• Since last November, China has allowed visa-free entry for Korean nationals.

10.01 Million Over-55s in Workforce.

• The economically active population includes both employed and unemployed individuals. There are 9.78 million employed people aged 55 to 79.
• 69% of the elderly wish to continue working. Their desired retirement age is 73.4 years.
• The minimum living cost is 1.36 million won, but the average pension received is 860,000 won.
• Lee Byung-hoon (Professor at Chung-Ang University) pointed out, “The late 50s middle-aged group still needs income, but with limited job options, they risk being absorbed into self-employment or falling into vulnerable labor sectors.”
• Related Link.

Trump and Xi to Meet at the Kyeong Ju.

• Kim Min-seok (Prime Minister) stated they are preparing “on the assumption of definite attendance.” Practical communications are nearly complete.
• China is the host next year, so Xi Jinping (President of China) will naturally attend, and Trump might also visit a shipbuilding site.

Another Take.

The Nightmare of the Subcontractor, JoongAng Ilbo’s Curse.

• Lee Sang-ryul (JoongAng Ilbo Editorial Writer) claims, “If the Yellow Envelope Act passes, companies will avoid subcontractors with militant unions or high strike risks,” suggesting “a blacklist of subcontractors could emerge.”
• He warns, “The nightmare of subcontractors going bankrupt and workers losing jobs could unfold.”
• Related Link.

Reaching KOSPI 5000: More Than Just a Slogan.

• Seok Byung-hoon (Professor at Ewha Womans University) argued, “It is desirable to abolish the securities transaction tax.” He suggested, “We should tax all capital gains, eliminate arbitrary standards like major shareholders, and overhaul the capital gains tax by applying different rates based on holding periods.”
• For short-term holdings of less than a year, capital gains could be taxed at a progressive rate combined with other personal income. For stocks held longer than a year, a lower flat rate could be considered for separate taxation.
• Min Se-jin (Professor at Dongguk University) pointed out, “Future external conditions are likely to act in the opposite direction of what has driven the domestic stock market up until now,” adding, “A bit of humility towards the market is lacking.” The implication is that while liquidity leaving the U.S. due to the trade war propped up emerging markets, including ours, this could reverse at any moment.
• Related Link.
• Related Link.

The Government Deceived Us.

• They decided to assign a dedicated staff for the quarantine of U.S. fruits and vegetables.
• The import quarantine process for agricultural products involves eight stages: 1) import request approval, 2) data submission review, 3) pest list creation, 4) risk assessment, 5) risk management review, 6) drafting import requirements, 7) administrative notice, and 8) import approval. Strawberries, plums, and pomegranates are at stage 1, apples at stage 2, pears at stage 3, and potatoes at stage 6.
• An official from the Ministry of Agriculture, Food and Rural Affairs stated, “Potato quarantine will soon be completed,” adding, “The process for apples is relatively less advanced as the U.S. has not strongly pushed for it.”
• The Ministry clarified in a statement, “We are not skipping or simplifying quarantine procedures; it’s about enhancing communication.”
• The Kyunghyang Shinmun pointed out, “If the time to import is ultimately shortened, it leads to further market opening.” Apple farmers are already protesting, saying, “The government deceived us.”
• Related Link.

Did Jeon Kwang-hoon Fund Shin’s Move?

• Police investigating Jeon Kwang-hoon (Pastor of Sarang Jeil Church) for involvement in a riot have raided YouTubers like Shin Hye-sik (CEO of Shin’s Move), Son Sang-dae (CEO of Son Sang-dae TV), and Bae In-gyu (CEO of Men’s Solidarity).
• Authorities found evidence that Jeon financially managed right-wing YouTubers through Shin Hye-sik. On January 18, at a Gwanghwamun rally, Shin declared, “Pastor Jeon Kwang-hoon is invoking the people’s right to resist today.”

The Fix.

Need for a 3% Penalty Law.

• Since 1994, the only construction license revoked was Dong-A Construction Industry, held accountable for the Seongsu Bridge collapse.
• Posco E&C will face penalties under the Serious Accidents Punishment Act, but critics point out the lengthy legal process and numerous loopholes. From 2022 to the end of last year, only 31 cases prosecuted under this act reached a first-instance verdict. Only four resulted in prison sentences.
• In the National Assembly, a special construction safety law imposing fines of less than 3% of sales is proposed. The Korea Times noted, “Considering the average operating profit margin of construction companies is around 3% of sales, this would be a fatal level of penalty.”
• Related Link.

One-Third the Height of Everest.

• The total amount of plastic waste accumulated on Earth has increased from 2 million tons in 1950 to 475 million tons in 2022. It is projected to reach 1.2 billion tons by 2060. If stacked vertically within the area of Yeouido Yunjungno embankment in Seoul (2.9㎢), it would reach about 2,900 meters, roughly one-third the height of Mount Everest (8,848m).
• According to a paper published in the international medical journal Lancet, plastic incurs health damage costs of $1.5 trillion annually. This analysis is by Philip Landrigan (Professor at Boston College, USA).
• In Korea, the government claims a plastic recycling rate of 73%. Environmental groups, however, estimate the actual rate to be around 27%.
• Related Link.
• Related Link.

Another Halt for Kori Unit 4.

• It began operations in 1985, marking 40 years.
• Following Kori Unit 2 in 2023 and Kori Unit 3 last year, it’s the third. If Yeonggwang Hanbit Unit 1 stops by the end of this year, 4 out of 26 units will be halted.
• Kori Unit 2 and Kori Unit 3 are awaiting reactivation approval. Extensions can be made in 10-year increments, but since the calculation starts from the halt, the actual extension is about 7 years considering the procedures.
• When a nuclear plant stops, LNG power must fill the gap. Chosun Ilbo analyzed, “Replacing the four halted nuclear units with LNG power incurs nearly 2.8 trillion won in costs.” The generation cost is 169.2 won for LNG and 57.8 won for nuclear. This calculation excludes costs for decommissioning and spent waste disposal.
• Related Link.
• Related Link.

Half of Medical Expenses Spent by Those Over 65.

• From 38 trillion won in 2020 to 52 trillion won last year. This includes health insurance benefits and personal contributions. It’s 44.8% of total medical expenses.
• In the first half of this year alone, it increased to 46%. As of the end of June this year, the elderly population covered by health insurance is 9.99 million.
• 19% of the total population is responsible for 46% of medical expenses.
• Per capita medical expenses for the elderly rose from 4.74 million won in 2020 to 5.37 million won last year.
• Related Link.

Pair Retired Craftsmen with Young Workers.

• Half of a shipyard welder’s job is grunt work. They have to carry tools weighing over 20kg. While a specialized day labor team could handle it, it’s tough to do past retirement age and doesn’t allow for skill transfer.
• Cheon Hyun-woo (Writer) suggested, “Let’s pair retired technicians with young, healthy but unskilled workers.” The craftsmen can pass on their skills, while the young workers handle the physical tasks.
• Of course, adding about 1 million won to the minimum wage might attract young workers. How about companies and local governments split the subsidy?
• Related Link.

ICYMI.

Fewer Teachers to Be Hired.

• Next year, 10,232 elementary and middle school teachers will be appointed, a decrease of 1,649 from this year’s 11,881.
• Busan and Ulsan will not hire a single kindergarten teacher.

1.17 Million Foreign Patients Last Year.

• Nearly double the 610,000 in 2023.
• Each foreign patient spent 1.53 million won. Totaling 1.4052 trillion won. Medical tourism spending reached 7.5039 trillion won.
• Value-added tax refunds hit 1.01 million cases, amounting to 95.5 billion won.
• 68% sought dermatology and plastic surgery. Analysis suggests demand for cosmetic medical services will persist for some time.
• Yoo Yoo-jong (Deputy Head of Policy and Society, Dong-A Ilbo) predicted, “Considering the level of domestic medical staff, we can expect more foreign patients for complex surgeries like severe and rare diseases.”
• Related Link.

450 Billion Won for Graphics Cards, 62.8 Billion Won for Data.

• The national budget for flagship AI projects.
• Naver Cloud is developing the Omni Foundation Model based on HyperCLOVA X.
• Upstage focuses on multilingual processing and multimodal response.
• LGAI Research Institute is developing Frontier AI that evolves and learns autonomously.
• NCAI creates industry-specific models.
• SK Telecom aims to implement full-stack AI.
• Jeon Jae-woo (Senior Reporter at Kukmin Ilbo) emphasized, “While technical prowess is important, the most crucial factor determining the accuracy, reliability, and applicability of AI models is quality data.” The point is, to claim to be an ‘AI powerhouse,’ we must first protect the quality content for AI to learn from.
• Related Link.

Coupang’s Q2 Revenue Hits 11.9 Trillion Won.

• Unstoppable momentum. Up 19% from Q2 last year.
• Projections suggest this year’s revenue will far surpass last year’s total of 4.12901 trillion won.
• Each active customer spent 431,430 won on Coupang.

“Pardon Cho Kuk,” Moon Jae-in’s Request.

• Moon Jae-in (former President) requested Lee Jae-myung to pardon Cho Kuk (former leader of the Cho Kuk Innovation Party). This was said to Woo Sang-ho (Senior Secretary for Political Affairs) who came to invite him to the ‘National Appointment Ceremony.’
• Cho Kuk is serving a two-year sentence confirmed last December, with release expected next December.
• Moon Jae-in was notably reluctant to pardon politicians, even refraining from pardoning Kim Kyung-soo (former Governor of Gyeongsangnam-do), considered his confidant. Yet, he treated Cho Kuk as his “most painful finger,” showing special concern.
• A ruling party official told JoongAng Ilbo, “I understand it is being positively considered.”
• Song Eon-seok (People Power Party Emergency Committee Chair), who caused controversy by sending a pardon request list to Kang Hoon-sik (Presidential Chief of Staff), stated, “I will withdraw the list.”
• Related Link.

Worth Reading.

Choi Dong-seok is Dangerous.

• Choi Dong-seok (Head of the Personnel Innovation Department) said at a public cabinet meeting, “I apologize for becoming famous these days.” His tone wasn’t particularly apologetic.
• Lee Jae-myung appointed Choi because he noticed his activities as a YouTuber. He said things like this.
• “The Democratic Party should become Lee Jae-myung’s, and our nation, our entire people, should become Lee Jae-myung’s nation.”
• “He thinks he can save our people.”
• “Five years is too short. Ten, twenty years would be fine. It would be good to change the constitution to extend it.”
• Sung Han-yong (Senior Reporter at Hankyoreh) warned, “Leaving such a person in the position of Head of the Personnel Innovation Department is an insult to the civil service,” adding, “There is a risk that the president’s approval rating could suddenly plummet one day.”
• Related Link.

When Does One Become Elderly?

• Jae-hoon Jeong (Professor at Seoul Women’s University) proposed three ideas.
• First, since a society is considered aged when 14% of its population is over 65, we could simply adjust the elderly age threshold to match this 14% demographic.
• Second, we could set it 15 years before the average life expectancy. If life expectancy is 90, the elderly threshold would be 75.
• Third, we could eliminate age criteria altogether.
• Related Link.

The Vulnerable Are Not Weak.

• They are people pushed into weak positions.
• Lee Jae-myung said, “How we treat those who are powerless and in distress shows the dignity of society.” In response, Miryu (Human Rights Movement Sarangbang Activist) emphasized, “How much noise those who are powerless and in distress can make shows the dignity of society.”
• “It seems the Democratic Party is content with a world where they speak on behalf of the vulnerable, rather than one where the vulnerable speak louder and more. (Omitted) The Anti-Discrimination Act is a law that continuously reminds us of the declaration that everyone is equal, urging us to examine and improve the world through the perspective and voices of the vulnerable. Will people understand if the enactment of the Anti-Discrimination Act is omitted from next week’s national agenda announcement?”
• Miryu stressed, “The time to discuss whether or not to create an Anti-Discrimination Act has passed,” adding, “It’s time to start a social discussion on what kind of Anti-Discrimination Act to create.”
• Related Link.