Kim Geon-hee’s Necklace: A Genuine One Might Exist.

• Kim Geon-hee claims it was a fake, and indeed, a counterfeit was found at her brother-in-law’s mother-in-law’s house. Yet, there might be a genuine one elsewhere.
• The Van Cleef & Arpels necklace worn at the NATO summit exceeds 60 million won.
• The special prosecutor checked the list of necklace buyers and found a close associate of Lee Bong-gwan (Chairman of Seohee Construction) included. The special prosecutor suspects it might relate to Park Sung-geun (former prosecutor), Lee Bong-gwan’s son-in-law, being appointed to a high position in the Yoon administration.
• Park Sung-geun resigned after being demoted in the 2020 prosecution reshuffle, worked as a lawyer at Barun Law LLC, and then moved to serve as chief secretary to Han Duck-soo (Prime Minister) in 2020.
• The date on the receipt is March 9, 2022, right after Yoon’s election victory.
• Since last Saturday, Seohee Construction has shuttered its headquarters’ main entrance, restricting outsider access.
• The prosecution has begun a raid on Seohee Construction.
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Will the Cabinet Pardon Cho Kuk Today?

• The decision on special pardons for Liberation Day will be made.
• Cho Kuk (former leader of the Cho Kuk Innovation Party), Jeong Kyung-shim (former Dongyang University professor), Choi Kang-wook (former Democratic Party lawmaker), Yoon Mee-hyang (former Democratic Party lawmaker), and Cho Hee-yeon (former Seoul Education Superintendent) are candidates for pardon or reinstatement.
• Jeong Chan-min (former Liberty Korea Party lawmaker) and Hong Moon-jong (former Saenuri Party lawmaker), requested by the People Power Party, are also included.
• The Ministry of Justice’s Pardon Review Committee has finalized the list, but the final decision rests with the President.
• The Kyunghyang Shinmun noted, “There are concerns that unnecessary political debates could weaken the momentum for national tasks.” A Democratic Party lawmaker commented, “It’s not that pardons shouldn’t be granted, but there’s no need to do it at this time.”

What Matters Now.

Lost Principles in Hesitation.

• “No taxation principle.” This is the headline on the front page of Kyunghyang Shinmun.
• The capital gains tax on stocks is back on the table, while real estate remains untouched. The principle of “tax where there is income” is said to have collapsed.
• The issue began when the Yoon administration abolished the financial investment income tax. The Democratic Party also bears significant responsibility. Abolishing income tax while strengthening capital gains tax is inconsistent and faces strong opposition.
• Jeong Cheong-rae (Democratic Party Leader) expressed strong concerns to the presidential office about tightening major shareholder standards, but no conclusion has been reached.
• Lee Sang-min (Senior Research Fellow at the Korea Institute of Public Finance) pointed out, “Abolishing the financial investment tax has led to three issues: major shareholder standards for capital gains tax, separate taxation of dividend income, and securities transaction tax. Deviating from principles will cause more problems.”
• Woo Seok-jin (Professor at Myongji University) stated, “Tax increases are an inevitable choice, but if the stock market also needs boosting, a long-term perspective should have been presented, such as introducing the financial investment tax when the KOSPI reaches 4000 or 5000.”
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Why Major Shareholder Transfer Tax Is Uncommon Elsewhere.

• Other countries do not distinguish major shareholders separately; they vary tax rates based on holding period and investment gains.
• Countries without stock transfer tax include Hong Kong, Singapore, and Switzerland.

Key Agenda of Korea-US Summit: Defense Spending Increase.

• Washington Post reported it.
• The original draft of the Korea-US tariff negotiations included a demand for South Korea to increase its defense spending from 2.6% to 3.8% of GDP. The cost of stationing 28,500 US troops in Korea should also be increased by over $1 billion.
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Capability Over Numbers for US Forces in Korea.

• These are the words of Xavier Brunson (Commander of US Forces Korea) when he met with reporters.
• He said, “If you draw a triangle connecting Tokyo, Seoul, and Manila, 52% of world trade passes through that area,” adding, “It’s very dangerous to think that events happen in isolation.” This is a reminder not to assume that events outside the Korean Peninsula are unrelated to Korea.
• Regarding the issue of wartime operational control, he warned, “Choosing shortcuts can be perilous.”

Yoon’s Trial in Absentia?

• Today is the trial day for the treason case. Before being detained, he attended the hearings, but since his detention, he has refused both the special investigation and court appearances.
• Ji Gui-yeon (Seoul Central District Court Judge) said, “I will check if he can be brought in.” If the judge is determined, a warrant could be issued to compel his attendance.
• Park Geun-hye (former President) also refused to appear, and her trial proceeded in absentia up to the Supreme Court’s final ruling.

Deep Dive.

More People Living Underground.

• Nearly 400,000 households now live in basements or semi-basements. In 2020, it was 330,000 households.
• In Seoul alone, the number increased from 200,000 to 250,000 households. The rise is notable in Gwanak-gu, Gangbuk-gu, and Geumcheon-gu.
• After the Sillim-dong incident in 2022, Seoul offered voluntary relocation support, but few households took it up.
• Hong Jung-hoon (Researcher at the Korea Urban Research Institute) pointed out, “The Yoon administration’s cuts to public rental housing budgets have made solving the problem more difficult.”
• Related Link.

Government to Pay First if Industrial Accident Insurance Delayed.

• If not recognized as an industrial accident, the funds will be reclaimed. The average processing time for industrial accidents was 228 days last year. It increased from 172 days in 2020.
• Lee Jae-myung (President) ordered all industrial accident fatalities to be reported directly to him.
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U.S. Agricultural Trade Deficit: 6.5 Trillion Won.

• Imports of U.S. agricultural products are at $5.6 billion, while exports are around $900 million. The trade deficit reaches $4.7 billion.
• Since the Korea-U.S. FTA, Korea has nearly fully opened its agricultural market.
• Out of 1,591 items, tariffs on all but 35 will be zero by 2031. Even with further opening, the U.S. gains little.
• Some suggest Trump’s demand for further agricultural market opening is a political message aimed at his supporters.
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December 3 Night: Ministry of Justice Meeting.

• When a director asked, “How about seeking advice on the unconstitutionality of martial law?” Park Sung-jae (then Minister of Justice) waved his hand silently. The Korea Times reconstructed the situation at that time.
• At 11:30 PM, Park Sung-jae instructed, “Consider dispatching prosecutors to the Joint Investigation Headquarters.” If true, this could be considered an act of treason.
• Ryu Hyuk (then Inspector General) said, “If this is a meeting about martial law, I’ll resign,” to which Park Sung-jae replied, “Do so.” Attendees testified that Park Sung-jae spoke less after that.

The People Power Party’s Jeon Han-gil Convention.

• They are belatedly initiating disciplinary procedures against Jeon Han-gil (former instructor).
• The first joint speech event was held in Daegu, where Kim Geun-sik (People Power Party Supreme Council Member) was interrupted by Jeon Han-gil inciting chants of “traitor.” It seems there’s a rift between pro-Jeon and anti-Jeon factions.
• Cho Kyung-tae (People Power Party lawmaker) remarked, “It reminds me of the political gangster Yongpal incident, minus the clubs.”
• Jang Dong-hyuk (People Power Party lawmaker) stated, “I find it hard to agree with the intent to demonize Jeon Han-gil alone.”
• The Chosun Ilbo editorial pointed out, “The fact that the main opposition party is swayed by a single YouTuber with no political experience highlights the current vulnerability of the People Power Party.”
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There Is a Hardline Conservative YouTube Cartel.

• Seong Chang-gyeong TV praised, “Jeon Han-gil is doing what 107 People Power Party lawmakers can’t.” Go Seong-guk TV defended, saying, “Kim Geun-sik attacked Jeon Han-gil first,” and asked, “Who would just stand by?”
• Lee Bong-gyu TV countered, “We can’t trust traitors, and we will deliver the message to leave directly.”
• A People Power Party official told JoongAng Ilbo, “Appearing on YouTube is more effective than speaking at official venues like the Supreme Council.”
• Related Link.

Tripped by the ‘Three Jeons’.

• It’s about Jeon Han-gil, Jeon Kwang-hoon (Pastor of Sarang Jeil Church), and Jeon Seong-bae (Geonjin Beopsa).
• Police are investigating Jeon Kwang-hoon for allegedly funding right-wing YouTubers.
• Jeon Seong-bae is suspected of acting as a link between the Unification Church and Kim Kun-hee. A special investigation is underway.
• A People Power Party lawmaker remarked, “As the party fails to meet public expectations, even long-standing responsible members are now showing signs of leaving.”
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Another Take.

Can They Tackle the Mofia?

• Jeong Sye-kyun (former Prime Minister) once asked, “Is this the Ministry of Finance’s country?”
• Kim Tae-nyeon (Democratic Party lawmaker) expressed frustration, saying, “The Ministry of Finance is just drawing red lines.”
• The Ministry of Economy and Finance, overseeing budget and policy, has often been criticized for acting like a king among government departments. Going back, it was the Ministry of Finance and Economy that blocked reform policies during the Roh Moo-hyun administration.
• In 1948, the Ministry of Finance and the Planning Board became the Ministry of Finance and the Economic Planning Board in 1961, merged into the Ministry of Finance and Economy in 1994, and split into the Ministry of Finance and Economy and the Planning and Budget Office in 1998. In 2008, they merged again into the Ministry of Economy and Finance, but the Lee Jae-myung administration is considering splitting them back into the Ministry of Finance and Economy and the Planning and Budget Office.
• ‘Mofia’ is a portmanteau of ‘Ministry of Finance’ and ‘mafia.’ They have been the ones pulling the strings of the Korean economy, pretending to bow with each regime change.
• The Lee Jae-myung administration is facing the daunting task of dismantling the Mofia and its breeding ground, the Financial Services Commission—something no previous administration has dared. There are already rumors of high-ranking officials from related departments frantically visiting lawmakers’ offices to protect their organizations.
• Will the Lee Jae-myung administration succeed in reforming the Mofia? More important than dismantling is the philosophy and direction. If the Mofia is dismantled, who will take their place?
• The National Planning Committee will announce the government reorganization plan, including the revival of the Planning and Budget Office and the dismantling of the Financial Services Commission, on the 13th.
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Is Trump Really Anti-China?

• There are a few signs.
• The U.S. allowed Nvidia’s H20 chip exports to China.
• The deadline for TikTok’s U.S. business sale was extended three times. Trump once said he has a “special affection” for TikTok.
• When Lai Ching-te (Taiwan’s President) planned to transit through the U.S. on a Latin America tour, he was told no. A 20% tariff was imposed on Taiwan.
• Tariff negotiations with China were extended by a whopping 90 days.
• There was debate over whether South Korea would intervene if a similar situation arose in Taiwan, but Trump seems reluctant to provoke Xi Jinping (China’s President).
• Kang Byung-han (Kyunghyang Shinmun Political Editor) noted, “One wonders if the ‘strongman’ Trump envisions a new world order where only the strong bond together.”
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Could the U.S. Interest Rate Drop to 1%?

• After the tariff war, a currency war might be next. Trump aims to weaken the dollar by lowering interest rates.
• It’s widely speculated that Trump will appoint Christopher Waller (Federal Reserve Board Member) as the Fed Chair. Some even say Trump is already the de facto Fed Chair.
• Trump’s plan is to cut the current 3.25~3.5% rate down to 1%. Han Sang-chun (Korea Economic Daily Editorial Writer) noted, “It’s similar to Abenomics, which aimed to recover Japan’s lost 20 years through ultra-low interest rates and a weak yen.”
• The economy is in a ‘Goldilocks’ phase—not too hot, not too cold. Adding a rate cut could extend the bubble for over two years.
• Janet Yellen (former U.S. Treasury Secretary) criticized, saying, “This sounds like something from a banana republic trying to print money to cover fiscal deficits.” It’s a warning of impending hyperinflation.
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Weak Dollar Fuels KOSPI.

• Weak dollars increase global liquidity. In the 1970s, a weak dollar funneled money into the Middle East, triggering the oil shock. Korea borrowed money then to boost heavy industries.
• From 1985 to 1992, during the second weak dollar phase, the KOSPI index soared by 220%. It was the biggest boom since Dangun, enjoying the “three lows” prosperity.
• Kim Hak-kyun (Shinyoung Securities Research Center Director) warned, “Countries indulging in dollar liquidity suffer fatal blows when the dollar’s movement changes.”
• Can KOSPI rebound in the third phase? Kim advises, “We must remember that the main reason is the mechanical shift in preferences due to exchange rate changes, rather than fundamental improvements.”
• Related Link.

110,000 Soldiers Reduced.

• From 560,000 six years ago to 450,000 now. Falls short of the minimum 500,000 troops required.
• Officer selection reached only 65% of the plan.
• The active duty determination rate was raised from 81% in 2020 to 87% by 2025, but the number of examinees dropped from 280,000 to 120,000.
• Divisions and higher units decreased from 59 in 2006 to 42.
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The Fix.

Presidential One-Man Show Won’t Cut It.

• Paris Baguette and POSCO E&C were labeled as villains, but Lee Sang-heon (Director of Employment Policy at the International Labour Organization) proposed three alternative approaches.
• First, focus on issues of small and medium enterprises and subcontractors rather than large corporations.
• Second, do not overlook delivery workers.
• Third, to solve the problems of outsourcing risks and migrant workers, an immigration office should be established.
• Lee Sang-heon pointed out, “The president’s ‘one-man show’ is impressive, but it’s not good if repeated.” He believes, “There are many issues that cannot be solved by individual skill alone, and this method cannot be sustainable.”
• Related Link.

Unmatched Continuous Night Labor.

• This is according to Han Seon-beom (Policy Director of the Courier Union).
• There are about 70,000 delivery drivers in Korea, but excluding the 2,000 regular employees at Coupang and CJ Logistics, all are special contract workers. They are not protected by the Labor Standards Act.
• The world talks about a 4.5-day workweek, yet delivery workers had to fight for a 60-hour week.
• At Coupang, if the on-time delivery rate falls below 95%, the delivery area is taken away. They call it ‘area retrieval’ and ‘cleansing,’ but it’s essentially termination.
• “As Coupang operates this way, other delivery companies are trying to follow suit. Rule-breaking like dawn deliveries, long hours, and cleansing wins, and the bad drives out the good.”
• Lee Sang-heon pointed out, “Consumers are ‘addicted’ to the speed and convenience,” and “as long as there are consumers addicted to rocket delivery, Coupang’s monopolistic power won’t disappear.” He noted, “Consumer convenience acts as a hostage, blocking citizens’ social actions.” Lee emphasized, “If it’s hard to change the Labor Standards Act, we need a broader safety net like a ‘Basic Life Safety Act.'”
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Three Million Reject Life-Prolonging Treatment.

• Life-prolonging treatment costs range from 20 to 30 million won. Kim Min-cheol (Chosun Ilbo Editorial Writer) pointed out, “Futile life-sustaining treatment inflicts unnecessary suffering on patients and their families.”
• Women account for 1.99 million, twice the number of men.
• There have been 440,000 cases where life-prolonging treatment was halted through advance directives and other means.
• Some suggest expanding the legal criteria for life-prolonging treatment from the current ‘dying process’ to ‘terminal stage.’ Assisted suicide might become a social issue in the near future.
• Related Link.

Paint the Roof White.

• The reflectivity of white heat-resistant paint is 95%. If there are tall buildings nearby, a color is added, but it still reflects about 85%.
• It can lower surface temperatures by over 20 degrees. The cost is between 35,000 to 60,000 won per square meter. The energy reduction effect is significant compared to the cost.
• Seoul City has decided to conduct a cool roof demonstration project on 77 buildings with a budget of 660 million won.

Dating Violence: New Response Manual Released.

• Even if the victim does not express a desire for punishment, intervention can now occur ex officio.
• Even if reasons like “it’s usually fine” or “we’re still dating” are given to refuse temporary measures, the police can issue a restraining order based on their own judgment.
• An official from the National Police Agency stated, “We considered the nature of relational crimes where the victim cannot testify properly unless separated from the perpetrator.”
• Related Link.

ICYMI.

Twelve and Already a “Great Leader”.

• The New York Times analyzed photos of Kim Jong-un (North Korean Chairman) and Kim Ju-ae (Kim Jong-un’s daughter). She has appeared 39 times, 24 of which were military events.
• Kim Jong-un smokes too much and may have health issues. There are speculations of cardiovascular disease. (His grandfather and father suffered from it.) He is 170 cm tall and weighs 140 kg.
• He might think it’s necessary to designate a successor early. Kim Jong-un was chosen after Kim Jong-il’s death. He only secured power after purging Kim Jong-nam (Kim Jong-un’s brother) and Jang Song-thaek (Kim Jong-un’s uncle).
• Kim Ju-ae, at twelve, is already being called a “great person of guidance.” She holds no official position yet.
• There are rumors Kim Jong-un has three children, but the other two have not been revealed. There might be an older sibling than Kim Ju-ae.
• Kim Ju-ae first appeared in public three years ago. Initially, she was just shown briefly, but now appears closer than her mother (Ri Sol-ju). It’s clearly intentional exposure.
• A scene of Kim Yo-jong (Vice Director of the Workers’ Party, Kim Jong-un’s sister) escorting Kim Ju-ae was also released.
• Stamps featuring Kim Jong-un and Kim Ju-ae together have been issued.
• Three years ago, she wore children’s clothes, but since last year, she has been in formal attire. There is a possibility that the fourth-generation successor of the Kim dynasty could be female. Analysts suggest preparations for the fourth generation are already underway.
• Related Link.

New York Times: 11.88 Million Paid Subscribers.

• Second quarter results. Subscriptions and ad revenue account for 70% and 19%, respectively.
• Print newspaper subscribers have dwindled to 580,000. Digital and print ads make up 70% and 30%.
• Non-news subscriptions like puzzles and cooking boast 3.59 million subscribers.
• The goal is to reach 15 million paid subscribers by 2027.
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Koreanism.

• These are the words of Maggie Kang, director of ‘K-Pop Demon Hunters.’ She explains, “Koreanism is a worldview that places Korean sentiment at the heart of creation and translates it into the language of global pop culture.”
• The popularity of K-beauty and K-food is remarkable. Bibigo dumplings hold a 41% market share in the U.S.

20,000 ‘Muze’ Tiger Items Sold.

• The term ‘Muze’ refers to museum goods. The tiger and magpie badges sold at the National Museum of Korea have sold out through the eighth pre-order.
• This is thanks to the Netflix drama ‘K-Pop Demon Hunters’ craze. It reached 26.3 million views in its sixth week.
• The online Muze shop had about 7,000 visitors a day, but weekly cumulative visitors hit 1.58 million. First-half sales reached 11.5 billion won.
• The National Museum of Korea saw 2.7 million visitors in the first half alone, a 64% increase from the same period last year.
• Foreign tourists’ hanbok experiences increased by 30%, and public bathhouse usage rose by 84%.
• Overseas direct purchases of Korean products also increased. Compared to the first half of last year, transaction numbers rose by 78%, and transaction amounts by 56%.
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Worth Reading.

Libraries and Democracy Go Hand in Hand.

• Bill Clinton (former U.S. President) said this.
• South Korea has 1,296 public libraries, with 535 concentrated in Seoul and Gyeonggi areas.
• Each library serves 39,519 people, with 2.43 books per person.
• “As political polarization deepens, government finances dwindle, and citizens remain unaware, libraries will be left with books of a certain blood type, and budgets will become easy targets for cuts.”
• Choi Tae-hyun (Professor at Seoul National University) emphasized, “Sovereignty lies within books,” adding, “Libraries precede democracy.”
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A New Growth Strategy Needed.

• The Moon administration tried to solve problems by increasing social spending, but it wasn’t sustainable. The Lee Jae-myung administration aims to enhance competitiveness and growth rates to mitigate socio-economic risks.
• Yoon Hong-sik (Professor at Inha University) pointed out, “The total value-added that can be secured through a manufacturing-centered growth strategy is inevitably limited.”
• Yoon believes that the Korean economy has failed to connect advanced manufacturing capabilities with high-quality services to increase value-added. The idea is to find a balanced growth strategy between high-quality manufacturing and services, exports and domestic demand.
• Related Link.

Why the Three Broadcasting Laws Still Disappoint.

• The Broadcasting Act amendment passed, but amendments to the Broadcasting Culture Promotion Act and the Educational Broadcasting Act remain.
• Lim Young-ho (Professor at Busan National University) remarked, “It’s uncertain whether this will significantly improve the political patronage and excessive politicization of broadcasting.” He believes, “As long as the partisan quota recommendation system exists, it’s hard to prevent the appointment of strong figures who are loyal and outspoken.”
• Kim Dong-won (Policy Cooperation Director of the National Union of Mediaworkers) once criticized, “The Moon Jae-in administration imposed regulations on the shrinking public sector and offered support and neglect to the growing media capital sector.” Lim Young-ho assessed, “As a result, traditional media have shrunk to mere appendages of large and global capital.”
• Lim Young-ho emphasized, “Efforts to exclude political colors from broadcasting policy and to protect public interest are important, but we must not make the mistake of missing the big trends and issues in the media industry.”
• Related Link.

Kim Keon-hee Was a Legal Broker.

• Lee Jae-sung (Hankyoreh Editorial Writer) asserts, “I am certain Kim Keon-hee was not a barmaid,” analyzing that “it is reasonable to see Kim Keon-hee and Cho Nam-wook (then Chairman of Sambo Construction) as having a mutually beneficial relationship, hosting and attending gatherings as needed.”
• Yang Jae-taek (former prosecutor) might not have been Kim Keon-hee’s sponsor; rather, Kim Keon-hee could have been Yang Jae-taek’s sponsor. Kim Keon-hee sent money to Yang Jae-taek’s wife and children while they were studying abroad. Kim Keon-hee and Choi Eun-soon (Kim Keon-hee’s mother) also traveled to Europe with Yang Jae-taek.
• At that time, Choi Eun-soon was in a legal battle with Jung Dae-taek (businessman). Lee Jae-sung points out, “It should be seen as lobbying a prosecutor and providing compensation,” emphasizing that “Kim Keon-hee was not a hostess but a lobbyist for family business and a legal broker.”
• The Julie controversy obscured the essence, but the core issue is legal corruption.
• Yoon Nam-geun (then judge), who sentenced Jung Dae-taek to prison, jointly purchased land with Kim Choong-sik, Choi Eun-soon’s lover. There is also evidence of money transfers to Kim Choong-sik. Jung Dae-taek sued Choi Eun-soon but was charged with false accusation and fined.
• Yoon Kang-yeol (Seoul High Court Judge), who acquitted Choi Eun-soon, was a judicial training classmate of Yoon Seok-yeol. He was also a Supreme Court justice candidate.
• The narrative goes, “The reason why punishing the Yoon Seok-yeol-Kim Keon-hee couple is difficult and slow is that they are the embodiment of corrupt legal power, armed with legal skills honed over decades.” Lee Jae-sung emphasizes, “True resolution of internal strife must begin with re-establishing fairness in the law.”
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