Cho Kuk’s Pardon, Effective Midnight on the 15th.

• Cho Kuk (former leader of the National 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) will be pardoned or reinstated. This was the result of yesterday’s cabinet meeting.
• Kang Yoo-jung (Presidential Office spokesperson) stated, “We prioritized those harmed by the prosecution’s politically motivated investigations.”
• 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.
• Park Soo-hyun (Democratic Party spokesperson) said, “We aim to restore the lives and honor of those suffering from the ruthless prosecutorial dictatorship’s oppressive investigations.”
• Park Sung-hoon (People Power Party spokesperson) warned, “The river of Cho Kuk and the swamp of Yoon Mee-hyang will ensnare the Lee Jae-myung administration.”
• 184 union members from the Construction Union, Cargo Solidarity, and farmers were also pardoned or reinstated.
• Special administrative relief for driver’s license penalties affects 820,000 people. 3.24 million small business defaulters will receive credit pardons.
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Different Angles.

• The Kyunghyang Shinmun called it a “political pardon,” while the Hankyoreh noted that “controversy remains.”
• The Kukmin Ilbo assessed, “Unity was emphasized, but only controversy grew.” The headline on the front page of the Seoul Shinmun reads, “Cho Kuk Returns.”
• “Many Politicians Included,” the Dong-A Ilbo’s headline is bland. The JoongAng Ilbo states, “Cho Kuk and Yoon Mi-hyang Ultimately Included.”
• The Chosun Ilbo evaluated it as a “pardon repaying election debts.”
• The Segye Ilbo’s headline is “Factional Solidarity Instead of Unity, a Faded Special Pardon.” The Hankook Ilbo assessed it as a “pardon that fueled conflict.”

Unrelated Additions to Prosecutorial Manipulation.

• Eun Soo-mi (former Seongnam Mayor) was sentenced to two years for violating the Political Funds Act but was included in the pardon list.
• Lee Yong-gu (former Vice Minister of Justice) assaulted a taxi driver while drunk, making it hard to argue prosecutorial overreach.
• Choi Ji-sung (former Samsung Electronics Future Strategy Office Head), Jang Choong-ki (former Samsung Electronics Future Strategy Office Deputy Head), and Choi Shin-won (former SK Networks Chairman) are also included.

Will Cho Kuk Run for Seoul Mayor?

• Sentenced to two years, released after 242 days. Just shy of a third.
• Speculation about returning as party leader or running in next year’s local elections.
• Possibility of filling vacancies left by Lee Jae-myung (President) and Kang Hoon-sik (Presidential Chief of Staff), or running in by-elections for Incheon Gyeyang or Chungnam Asan.

Is the Honeymoon Over for the Lee Jae-myung Administration?

• The Korea Times editorial warns, “A special pardon skewed by partisan logic not only undermines the legitimacy of the pardon power but also poses a political burden, such as alienating the centrist bloc.”
• The Hankyoreh describes it as “an unprecedentedly early timing.” A Democratic Party lawmaker remarked, “Given the president’s consideration, it will be difficult for centrifugal forces like the National Innovation Party and civil society to operate, and challenging to confront the ruling party,” adding, “The pardon of Cho Kuk holds significant political exchange value.”
• The Hankyoreh’s editorial takes a different stance. “It has the significance of correcting the misuse of prosecutorial power,” and evaluates it as “a driving force for prosecutorial reform.”
• The Chosun Ilbo editorial assesses, “This pardon was highly inappropriate and excessive.”
• Attention is drawn to the exclusion of Lee Jae-myung’s close aides like Kim Yong (former Deputy Director of the Democratic Research Institute), but they cannot be pardoned as their sentences have not been finalized.
• In a Realmeter poll, approval ratings fell below 60% for the first time. The survey conducted from the 4th to the 8th did not reflect evaluations of the pardon.
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What Matters Now.

Not Infirm, Yet Forcible Attendance is Difficult.

• “The trial proceeds in absentia. The defendant must bear the disadvantages.” These are the words of Ji Gui-yeon (Seoul Central District Court Judge), presiding over the insurrection trial of Yoon Seok-yeol (former President). Yoon has not attended any of the four hearings since his re-arrest.
• The special prosecutor requested an arrest warrant, but it was not accepted, citing excuses from Seoul Detention Center.
• Ji Gui-yeon stated, “It’s hard to see him as infirm,” yet added, “There are concerns about injury and accidents, and considering human rights issues and social repercussions, it’s a difficult situation.”
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Presidential Office’s Robot Dog Deal: A Watch for Kim Keon-hee.

• Testimony has been secured that a Vacheron Constantin watch was given to Kim Keon-hee (Yoon’s wife). It’s worth 54 million won.
• The head of the company that supplied the robot dog to the presidential office confessed, “I bought it for 35 million won with a First Lady discount.” This was around September 2022, when the company signed a trial operation contract with the Presidential Security Service. According to Hankyoreh, even then, there were rumors that “Kim Keon-hee was behind it.”
• Kim Keon-hee’s charges now include mediation bribery under the Act on the Aggravated Punishment of Specific Crimes.
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Kim Keon-hee Faces Possible Arrest Today.

• At 10 a.m. today, a warrant review will be held.
• There are three main charges. The Deutsche Motors stock manipulation case confirmed illicit gains exceeding 800 million won. Receiving free survey results from Myung Tae-kyun is considered illegal donation. Charges of accepting bribes like necklaces and Chanel bags are also being added.
• The special prosecutor sees a risk of evidence destruction and flight.

Appointments and Nominations: Yoon and Kim Geon-hee Split 50:50.

• Myung Tae-kyun reportedly told a Hankyoreh reporter that he heard it directly from Kim Geon-hee.
• Myung Tae-kyun: “Shouldn’t the candidate be at the center of the election?”
• Kim Geon-hee: “It’s okay, sir. My brother and I agreed to do it this way from the start.”
• Apparently, right after the election, Kim Geon-hee sent a blacklist of lawmakers. Jo Hae-jin, Ha Tae-kyung, Seo Byung-soo, and Kim Yong-pan were on it.
• It’s said that if one meets Yoon and Kim Geon-hee, they’d want to ask, “Why did you imprison me after I served you so diligently, to the point my knees were worn and broken?”

Deep Dive.

Stock Transfer Tax Threshold for Major Shareholders Stays at 5 Billion Won.

• “To change the big picture, you need to make big moves, but right now the messages are conflicting.” This is from Han Jeong-ae (Democratic Party Policy Committee Chair).
• The Dong-A Ilbo reported, “Han Jeong-ae proposed it to the presidential office, and they accepted,” while the Hankook Ilbo stated, “No conclusion has been reached yet.”
• A Ministry of Economy and Finance official said at the party-government consultation, “Let’s discuss this a bit more.”
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Why Jeon Han-gil Can’t Be Disciplined.

• “The Democratic Party quickly cut ties with Lee Chun-seok, but we’re just wasting time.” So said a People Power Party official. There’s strong internal sentiment to discipline Jeon Han-gil (former lecturer) for calling Kim Geun-sik (People Power Party Supreme Council candidate) a ‘traitor,’ but it seems they’re wary of backlash from some hardline party members.

NVIDIA to Pay 15% of China Sales to U.S. Government.

• It’s an extortion unheard of. NVIDIA and AMD have agreed to pay an export toll to resume exporting lower-spec semiconductors to China. Estimates suggest it could reach at least $2 billion.
• Since the semiconductors for H20 are made by Korea’s Samsung Electronics and SK Telecom, there’s hope for increased exports. There might be pressure to lower prices.
• There’s even a joke that “now Lockheed Martin just needs to sell fighter jets to China and pay a 15% fee.”

Another Take.

Yoo Si-min: “Kang Sun-woo Fired for Incompetence.”.

• Yoo Si-min (former Chairman of the Roh Moo-hyun Foundation) defended Kang Sun-woo (former Minister of Gender Equality and Family nominee) with these words. He said, “She caused trouble and didn’t do her job well, so she was fired.”
• Hwang Gyo-ik (food columnist), who appeared with him, remarked, “There are many good stories about her, but those never make the news.”

Yeocheon NCC’s Crisis Signal.

• Korea’s third-largest ethylene producer. Once nearly hit an operating profit of 1 trillion won, but has struggled since 2020 due to increased ethylene supply from China. Last year’s net loss reached 236 billion won.
• For now, it has averted a default crisis. Major shareholder DL (formerly Daelim) decided to buy DL Chemical shares worth 177.8 billion won to provide liquidity. If 310 billion won is not raised by the 21st, it will default.
• An industry insider said, “Europe and Japan have already decided to reduce ethylene production,” adding, “Companies must agree to temporarily cut production and wait until 2028 when China’s ethylene expansion slows.”
• The petrochemical industry employs 400,000 people.
• The national tax collected by the Yeosu, Ulsan, and Seosan tax offices last year was 13.4 trillion won. This is nearly a 33% drop compared to the boom year of 2021.
• Yoo Seung-hoon (Professor at Seoul Tech) emphasized, “The time for companies to solve this has passed, and it must be pursued as strongly as bank restructuring during the IMF crisis.” He warns, “If left as is, the regional economy will collapse.”
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186 Journalists Dead in Gaza.

• “I am a journalist with no political affiliation. My sole duty is to report the truth from the field, without bias.”
• These were the last words of Anas Al-Sharif (Al Jazeera journalist). He died in an Israeli airstrike while inside a press tent in Gaza.
• Israel claims Anas Al-Sharif was affiliated with Hamas, but provides no evidence.
• Benjamin Netanyahu (Israeli Prime Minister) held a press conference, asserting, “The war ends only when Gaza is occupied.”
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The Fix.

Fatal Fall at DL Construction.

• Kang Yoon-ho (DL Construction CEO), along with executives, team leaders, and site managers, submitted their resignations en masse.
• Lee Jae-myung instructed, “Report all industrial accident fatalities directly and as quickly as possible.”

Old, Urgent, Outdated: Three Issues in Construction Sites.

• First, the workload is high, but the workers are too old. The average age of construction workers is 51.8 years. Those over 50 make up 68%.
• Second, the “ppalli ppalli” (hurry up) culture is also a problem. There’s strong pressure to shorten construction periods. Daily working hours have increased by 11 minutes over two years, now at 8 hours and 37 minutes. Lee Eun-hyung (Research Fellow at the Korea Construction Policy Institute) stated, “We must be willing to bear the social cost of securing construction periods.”
• Third, chronic issues like illegal subcontracting and illegal foreign workers abound. Illegal subcontracting accounts for 38%, and among 420,000 foreign workers, 57% are considered illegal labor. Responsibility is unclear, and safety investments are neglected.
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No Delivery Day, or No Income Day?

• It’s not a day off. Income decreases, and the workload just piles up for the next day, making it harder.
• Directly hired couriers and contract couriers have different perspectives.
• Some argue the fundamental issue is the six-day workweek structure. The Federation of Korean Trade Unions demands a five-day workweek without income reduction.

Part-time to Permanent in Two Years?

• The National Planning Committee proposed it. From the second half of the year, public sectors must enforce contracts for over 15 hours a week. It’s to prevent the abuse of ultra-short-term contracts. A plan to legally mandate the conversion of ultra-short-term workers to permanent contracts after two years of service has been set. The Korea Economic Daily warns, “This might make ultra-short-term workers’ jobs even more unstable.” Concerns arise that contracts might end before reaching two years. There’s analysis that public jobs for seniors, which heavily rely on ultra-short-term work, will be significantly impacted.
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Why People Lie Down at Oriental Medicine Clinics.

• Insurance payouts for traffic accidents show claims for oriental medicine treatments at 1.14 million won per person, while Western medicine treatments are at 710,000 won.
• For minor injuries, oriental medicine claims are 1.07 million won, compared to 320,000 won for Western treatments—a threefold difference.
• In the first half of this year alone, insurance payouts for minor injury claims reached 413.1 billion won for oriental medicine and 101.4 billion won for Western medicine.
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ICYMI.

The Era of Zero Clicks: The Fate of Naver Knowledge-iN.

• Developer community Stack Overflow used to see 200,000 posts monthly, now down to 10,000. Many posts were about code errors, but now AI solves them instantly.
• Questions on Naver Knowledge-iN were 24.59 million in 2022, dropping to 15.48 million last year. This year, it’s 4.55 million by April.
• Wikipedia visitors fell from 165 million in March 2022 to 128 million in March this year. Traffic dropped from 5.8 billion to 4.3 billion.
• The New York Times and Washington Post saw visitor numbers drop by 32% and 43%, respectively.
• Community site Reddit increased by 42%.
• Even Google is losing traffic. It fell from 146.6 billion to 142.3 billion monthly.
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Korean Air Economy Seats to Shrink.

• With the introduction of premium seats, the economy seats will switch from a 3-3-3 to a 3-4-3 system.
• The B777-300ER model is targeted. The width will decrease from 45.9cm to 43.4cm.
• Premium seats are 1.5 times wider and 10% more expensive.
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South Korea-Vietnam Trade to Reach $150 Billion by 2030.

• To Lam (Vietnam’s Secretary-General) is on a state visit.
• The South Korea-Vietnam Free Trade Agreement marks its 10th anniversary. Last year’s trade volume was $86.7 billion, and they plan to expand it to $150 billion by 2030.
• Vietnam is South Korea’s third-largest trading partner. It ranks second in rare earth reserves. There’s hope it can help derisk dependence on China.
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Worth Reading.

Stalking Murders Are Disasters Too.

• “I hope the President’s empathy for workers’ pain also reaches the suffering of women, who are another group of vulnerable minorities.”
• Kim Min-ah (Kyunghyang Shinmun Columnist) emphasized, “It’s time to put gender equality policies back on track.”
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A Bigger War Than Tariffs Looms.

• America has set the stage for improving its trade balance without touching the dollar’s value. The secret weapon of a currency war remains unused.
• Barry Eichengreen (UC Berkeley Professor) warned, “Combining tariff and currency policies amplifies the destructive power of protectionism.”
• Ji-Hong Na (Chosun Ilbo Editorial Writer) stressed, “Rather than feeling relieved that the tariff war is over, we should prepare for the possibility of escalation into a currency war.”
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The Paths of Roh Moo-hyun and Moon Jae-in.

• Roh Moo-hyun (former President) had low approval ratings during his term, but now he’s the most liked former president.
• Moon Jae-in (former President) is the opposite. In a Korea Times survey, Roh scored 40%, while Moon only reached 6%.
• What about Lee Jae-myung? Lee Sung-taek (Korea Times Editorial Writer) says, “He is closer to Roh Moo-hyun’s path, not just looking at his support base,” but also notes, “There are confusing moments,” regarding recent tariff negotiations. The criticism that promising a $350 billion investment to block agricultural market opening ignored consumer burden is a claim that’s hard to agree with.
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Trump’s Tariff Round: America May Suffer Most.

• As the tariff war concludes, the U.S. effective tariff rate has risen to 18%. It’s the highest since the Great Depression. Four-fifths of the tariff burden falls on American consumers and businesses.
• Jacob Lew (former U.S. Treasury Secretary) warned, “In the next 20 to 30 years, the world will try to detach from the U.S. economic and financial system.”
• Where will the world, accustomed to Trump, head next? Jeong Yeong-oh (Korea Times Editorial Writer) noted, “The success of American companies depends on how they procure parts and raw materials at low tariffs,” adding, “Ultimately, companies that lobby the government well, rather than those focused on R&D, will be the winners.” It’s a warning that American corporate innovation may vanish.
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Yoon Swallows What Park Regurgitated.

• It’s a biblical saying. “As a dog returns to its vomit, so fools repeat their folly.”
• Kwon Tae-ho (Hankyoreh Editorial Director) analyzed Yoon Seok-yeol’s downfall in three factors.
• First, he gathered the same people. Park Geun-hye gathered her loyalists, and Yoon gathered his prosecutor clique. Inbreeding rarely succeeds.
• Second, Park shot lasers, Yoon shouted. He reportedly spewed unheard-of curses like “I’ll gouge out your eyes.” Model students of the People Power Party were flustered before Yoon.
• Third, they were accomplices. At some point, there was no turning back.
• During Kim Young-sam’s (former president) time, aides threw themselves to stop him. Kim Dae-jung (former president) didn’t keep close aides. Roh Moo-hyun (former president) debated freely with his secretaries. Even under Lee Myung-bak (former president), heated debates were common, earning the nickname “Bongsoongah School.”
• Yoon? After meetings, he’d often overturn decisions the next day with “I’ve thought about it (Kim Keon-hee said so).” The only person who could control Yoon was Kim Keon-hee, but she wasn’t an expert either.
• Kwon Tae-ho pointed out, “Surrounded by yes-men, expertise can’t grow.” This is why he says, “Yoon swallowed what Park regurgitated.”
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