3617 and 4398.

• These are the inmate numbers for Yoon Seok-yeol and Kim Keon-hee. They are held at Seoul Detention Center and Seoul Southern Detention Center, respectively.
• Kim Keon-hee appears before the special prosecutor for the first time since her arrest. She has not requested a detention review. Perhaps she expects it would be denied anyway.
• The Presidential Security Service has ceased its protection.

Why Did Lee Bong-gwan Turn Himself In?

• Lee Bong-gwan (Chairman of Seohee Construction) confessed to giving gifts worth over 100 million won, including not just a necklace but also a brooch and earrings.
• It might be a calculated move to avoid bribery charges.
• According to SBS, Lee hired a high-profile progressive lawyer who may have advised him to surrender.
• After all, it’s hard to hide the necklace purchase, and if it’s recognized as influence peddling rather than bribery, the giver isn’t punished. If a public official receives it, it’s bribery; if a civilian does, it’s influence peddling. But it’s hard to see Kim Kun-hee as just a civilian.
• Chosun Ilbo assessed, “It seems he bet on the President’s wife and surrendered to protect his company and family.”
• Related Link.
• Related Link.

What Matters Now.

35 Million Won Watch, Paid Only 5 Million Won.

• Kim Keon-hee asked for a Vacheron Constantin watch, paying 5 million won, and bought a 50 million won watch at a VIP price of 35 million won, but reportedly did not pay the remaining 30 million won.
• This is according to a statement from a certain Seo, who supplied a robot dog to the presidential office for a trial.
• He received 5 million won in bundles of 50,000 won bills and was promised the rest later, which never came.
• There was also testimony that Kim Keon-hee proposed a PR role at the presidential office. Criticism arises: “Isn’t this a case of selling positions?”
• According to Kim Byung-joo (Democratic Party lawmaker), the robot dog was also introduced to the Defense Security Command. JTBC pointed out, “This could expand into a defense corruption scandal.”
• Related Link.
• Related Link.
• Related Link.

21 Grams Under Investigation.

• Right after Yoon Seok-yeol’s government took office, a company involved in relocating the presidential residence faced scrutiny. It was initially unqualified and had ties to Cobana Contents, once led by Kim Geon-hee, sparking favoritism allegations.
• A contract worth 1.224 billion won was awarded through a private contract, taking less than three hours from announcement to award. The contract size was unusually large for a private deal, and the company was unqualified. A general construction license was required, but 21 Grams only held an interior construction license.
• The Board of Audit and Inspection extended its audit seven times, concluding some legal violations, yet many questions remain. Three questions need answers.
• First, who chose 21 Grams?
• Second, was it unknown that 21 Grams was unqualified?
• Third, why was there no completion inspection?
• A senior prosecutor, known to be Yoon Seok-yeol’s mentor, reportedly said, “There’s no issue with Kim Geon-hee choosing wallpaper or faucets. But if she influenced the selection of contractors or private contracts for state-funded residence construction, it could be an abuse of power. She has no legal authority for that. Wasn’t Choi Soon-sil punished for meddling in state affairs without authority?”
• Yesterday, the special prosecutor also raided the Board of Audit and Inspection. Allegations of inadequate auditing are under investigation.
• Related Link.
• Related Link.

People Power Party Raid Fails.

• There are allegations that Jeon Seong-bae (Geonjin Monk) enlisted Unification Church members as party members to secure Kwon Seong-dong’s (People Power Party member) victory in the March 2023 People Power Party leadership election.
• Yesterday, the special prosecutor attempted to raid the People Power Party headquarters to secure the party membership list but failed.
• Gwak Gyu-taek (People Power Party spokesperson) protested, saying, “Demanding the entire membership list of 5 million members violates the principle of prohibition of excessive investigation and is a dangerous idea that infringes on personal information.”
• An investigation into charges of rebellion is also underway. There are suspicions that Choo Kyung-ho (then People Power Party floor leader) and others obstructed the lifting of martial law by changing the assembly location five times on the day of the martial law declaration.
• Related Link.

Choi Kyo-jin and Won Min-kyung.

• Lee Jae-myung (President) nominated Choi Kyo-jin (Superintendent of Sejong Office of Education) as the Minister of Education candidate, and Won Min-kyung (Non-standing Commissioner of the National Human Rights Commission) as the Minister of Gender Equality and Family candidate. Choi is from the Korean Teachers and Education Workers Union, and Won is from the Lawyers for a Democratic Society. Many call it a bold appointment.
• Lee Ok-won (former Vice Minister of Economy and Finance) was appointed as the Chairman of the Financial Services Commission. The Financial Services Commission recommended Lee Chan-jin (lawyer) as the Governor of the Financial Supervisory Service. The Chairman of the Financial Services Commission is appointed by the President, and the Governor of the Financial Supervisory Service is appointed by the President upon the recommendation of the Chairman.
• Joo Byung-gi (Professor at Seoul National University) was nominated as the Chairman of the Fair Trade Commission. He is a progressive scholar who has researched inequality. He has argued for regulatory measures to prevent platform companies from abusing their dominant positions.
• Appointments for the economic departments have been finalized.

Japan First.

• Before the Korea-U.S. summit on the 25th, there will be a Korea-Japan summit on the 23rd.
• Many see this as a positive signal for negotiations with the U.S. It could project an image of a network pursuing common interests. Concerns arise about bypassing historical issues.

Putin and Kim Jong-un’s Call.

• Vladimir Putin (Russian President) likely spoke with Kim Jong-un (North Korean Chairman) to discuss a Ukraine ceasefire plan before meeting Trump in Alaska tomorrow.
• It might also be a gesture of consideration towards Kim and a display of the close ties between North Korea and Russia.
• Ironically, Volodymyr Zelensky (Ukrainian President) is not included in the Trump-Putin meeting. Zelensky held a press conference stating, “We will not withdraw from Donbas.”

Deep Dive.

Three Seismic Shifts in the Turnberry Regime.

• Jamieson Greer (U.S. Trade Representative) labeled Trump’s trade policy as the ‘Trump Round.’ It signifies a new trade order replacing the WTO and the Uruguay Round.
• The agreement announced at Turnberry, Scotland, between the U.S. and the EU is seen as the start of the Turnberry regime. National interest prioritization and retaliatory bilateralism are the major trends.
• Ahn Se-young (Professor at Sogang University) proposed three strategies to respond to the Turnberry regime.
• First, the government and businesses must form a strategic partnership. They should jointly engage as negotiation partners with the U.S.
• Second, leverage strategic industries to lead negotiations under favorable conditions. Shipbuilding, semiconductors, and batteries could be negotiation cards.
• Third, approach Korea-China relations cautiously. Beyond the ‘alliance with the U.S., friendship with China’ stance, choices may be forced. The Turnberry regime is likely to continue even after Trump’s presidency.
• Related Link.
• Related Link.

Borrow to Sow for an Autumn Harvest.

• Lee Jae-myung said this. It means expanded fiscal policy is needed. There’s a high chance of additional government bonds being issued.
• He lamented, “It’s frustrating to think of leaving fields fallow in spring due to lack of seeds,” adding, “There are many tasks to do, but not enough money to spend.”
• Kang Yoo-jung (Presidential Office Spokesperson) explained, “The aim is to secure available resources through spending adjustments and invest efficiently in real growth and livelihood recovery.”
• The plan is to secure an additional 94 trillion won through revenue expansion and 116 trillion won through spending cuts.
• Reducing tax exemptions and deductions is also a task. This year alone, it’s 78 trillion won.
• Tightening belts isn’t easy. In fact, many expenditures automatically increase due to an aging population.
• There are projections that national debt will exceed 1,300 trillion won by the end of this year.
• The Kyunghyang Shinmun editorial stated, “Policy tasks without budget support are just pie in the sky,” emphasizing, “The government and ruling party, floundering even on minor taxes like capital gains tax on stocks, must first implement the basic tax principle that ‘where there is income, there is tax.'”
• Related Link.
• Related Link.

State Planning Report, No Organizational Restructuring.

• Instead of a transition team, a national operation strategy was designed over two months and the results were announced yesterday.
• The omission of the restructuring plan was due to many internal disagreements. Unlike the powerful transition team led by the President, there were differing views between the State Planning Committee and the Presidential Office.
• The establishment of a Climate and Energy Department was also omitted for now. The integration of the Ministry of Trade, Industry and Energy and the Ministry of Environment is crucial. The deadline to submit the 2035 national reduction target is looming, but delays are likely.
• Related Link.

First Task: Constitutional Amendment.

• Ending the 1987 system and initiating a citizen-participatory constitutional amendment is the first task. It includes enshrining the May 18 Democratic Uprising in the preamble, strengthening citizens’ basic rights, and expanding local autonomy and decentralization.
• Prosecutorial and political reform are also key tasks. The plan to abolish the Prosecutor’s Office and split it into the Major Crimes Investigation Agency and the Prosecution Agency was reaffirmed.
• Improving the governance structure of public broadcasting is another task. A Media Development Committee will be established to improve regulations.

AI Infrastructure Investment and the Korean Nvidia: A Two-Track Approach.

• The plan is to boost the growth rate to 3% through tech-driven growth like AI development.
• The direction of the 100 trillion won ‘National Growth Fund’ has also been revealed. The Industrial Bank will combine the 50 trillion won ‘Advanced Strategic Industry Fund’ with project financing to operate it at a scale exceeding 100 trillion won.
• The Future Growth Fund will be raised with funds from financial institutions and pension funds. It will operate as a parent fund investing in various sub-funds. Citizens can also participate.

Establishing a Public Medical Academy.

• Plans are underway to implement a regional doctor system with tuition support. Some medical school freshmen will be selected as regional doctor candidates, with the state covering tuition and other expenses. In return, they must serve in designated areas for a certain period after graduation.
• The proposal also includes easing the criteria for basic living security dependents. Previously, if a dependent had income above a certain level, they could not qualify for benefits.

Welfare Application Cruelty.

• “People die because they don’t apply.” This is what Lee Jae-myung said. It refers to preventing extreme situations like the Songpa three sisters case, where people don’t apply for basic living support. Im Ho-geun (Director of Policy Planning at the Ministry of Health and Welfare) explained, “In necessary cases, the responsible agency can protect by its own authority, but a consent process is required.” Lee Jae-myung instructed to review changing to an automatic payment system.
• Related Link.

Bank Account Names Change with Every Regime.

• A fiscal savings meeting was held yesterday. There are 31 public enterprises, 57 quasi-governmental agencies, and 243 other public institutions. Lee Jae-myung remarked, “There are too many to count,” and instructed a major consolidation.
• Jung Chang-soo (Director of the National Fiscal Research Institute) pointed out, “Private coal mines will close by 2030, yet 130 billion won is still being allocated,” highlighting that while coal production decreases, the budget does not.
• Woo Seok-jin (Professor at Myongji University) proposed consolidating into a basic income for children.
• Lee Jae-myung emphasized, “Let’s integrate the fragmented supplier-centered system into a demand-centered one.” It’s a call for a one-stop welfare system.
• Related Link.

National Appointment Ceremony on Liberation Day, People Power Party and Reform New Party to Skip.

• The Democratic Party won’t encourage attendance. Park Soo-hyun (Democratic Party Spokesperson) called it “a strategic card chosen by the People Power Party.” Meaning, they can’t help it if they don’t come.
• Jung Sye-kyun (former Speaker of the National Assembly) advised Jeong Cheong-rae (Democratic Party Leader) not to focus solely on party members in politics.
• The National Appointment Ceremony will be held at Gwanghwamun Square. 80 figures, symbolizing the 80th anniversary of Liberation, will present Lee Jae-myung with a presidential appointment certificate.
• The Korea Times editorial criticized, “The Democratic Party is confusing party members with the public,” pointing out, “Thinking only our side is the public and excluding those with different views is not democracy.”
• Related Link.
• Related Link.

Another Take.

Homeplus to Close 15 Stores.

• Filed for court receivership in March this year and is pushing for a sale.
• Out of 126 stores, 68 are leased. Decided to close those where rent negotiations failed.
• Stores in Siheung, Gayang, Ilsan, Gyesan, Ansan Gojan, Suwon Woncheon, Hwaseong Dongtan, Cheonan Sinbang, Munhwa, Jeonju Wansan, Dongchon, Jangnim, Busan Gamman, Ulsan Buk-gu, and Ulsan Nam-gu.
• Homeplus was acquired by MBK Partners in 2015 through a leveraged buyout (LBO), leading to asset sales and debt repayments that worsened its management. Interest expenses from 2016 to 2023 under MBK reached 2.9329 trillion won. It was said, “No matter how much we earn, we can’t even cover the interest.”
• Ahn Soo-yong (Homeplus Union Head) protested, saying, “It’s squeezing the company without any self-help efforts from the major shareholder.”
• Rumors circulated about a CJ Group acquisition, but prevailing views suggest it’s impractical due to insufficient funds and lack of synergy with existing core businesses.
• Related Link.
• Related Link.

Jeon Kwang-hoon: “Yoon’s Secretary Visited Multiple Times.”.

• Jeon Kwang-hoon (Pastor of Sarang Jeil Church), under suspicion for inciting riots, reportedly told a secretary from Yoon’s presidential office, “If you do this, impeachment is certain.” He claims a secretary from the Office of Social Affairs visited multiple times.
• While admitting to supporting right-wing YouTubers, he insists, “There’s nothing problematic.” He allegedly gave them 100,000 to 200,000 won each.
• He did not respond to questions about whether the presidential office requested support.
• Related Link.

1 Million Foreign Graduates Could Boost Economy by 145 Trillion Won.

• This is an analysis by the Korea Chamber of Commerce and Industry. If the number of foreign graduates increases by 1% relative to the economically active population, the per capita Gross Regional Domestic Product (GRDP) rises by 0.11%.
• The influx of 1 million people is analyzed to have an economic effect equivalent to 6% of GDP.
• Currently, out of 1.35 million registered foreigners, about 70,000 are employed in professional jobs.
• If the number of registered foreigners increases to 5 million, the economic effect would be 361 trillion won. Kim Deok-pa (Professor at Korea University) emphasized, “It’s not just about expanding the population, but about attracting high-level foreign talent with knowledge, skills, and expertise.”
• Related Link.

The Fix.

Abortion Unconstitutional Yet Inaccessible.

• The Constitutional Court ruled it unconstitutional in 2019 and ordered a legal revision by 2020, yet six years have passed with no change.
• Many women still search for doctors willing to perform abortions, opting for clandestine, costly, and unprotected procedures. The abortion pill Mifegyne remains illegal. Illegal transactions are rampant, and counterfeit pills abound.
• The legalization of abortion is included in Lee Jae-myung’s (President) government agenda.
• Lee Myung-hee (Kyunghyang Shinmun Editorial Writer) quoted Simone Veil (former French Minister of Health).
• “No woman undergoes an abortion with joy. This issue requires nothing more than listening to women. For women, abortion is a tragedy, and it always will be.”
• Related Link.

‘Do Not Resuscitate’ Consent is Illegal.

• Withdrawing life-sustaining treatment has strict conditions.
• Even futile treatments cannot be arbitrarily decided by doctors.
• The scope is limited. It applies only to patients in the dying process, those with cancer, AIDS, asthma, pneumoconiosis, chronic obstructive pulmonary disease, and chronic liver cirrhosis.
• If an advance directive is written or the intention to withdraw life-sustaining treatment can be inferred, and if the patient’s wishes are unknown, the entire family must agree. The ‘Do Not Resuscitate’ consent was used to evade responsibility when there was no life-sustaining treatment decision law, so it holds no validity.
• Shin Hyun-ho (Attorney at Haeul) pointed out, “Refusing resuscitation could be considered murder by omission.”
• “They paid taxes and health insurance their whole lives and have a constitutional right to treatment.” “The reason for the state’s existence is to treat and protect terminal patients in the dying process until the end,” is the message.
• Related Link.

Deciding When to Cease Life-Sustaining Treatment is Difficult.

• A patient signs to refuse life-sustaining treatment, yet the family insists, “Save them.”
• Even doctors struggle to determine if it’s the end-of-life stage. There are criteria for death, but “dead” and “about to die” are entirely different judgments.
• Large hospitals may convene ethics committees, but only 12% of nursing hospitals have such committees.
• In Korea, there are 350,000 deaths annually, with about 70,000 cases of life-sustaining treatment cessation.
• Delays in ceasing life-sustaining treatment increase medical costs.
• If stopped a month prior, the average medical expense is 4.6 million won, but if stopped 7-30 days before death, it averages 18 million won. Many receive expensive treatments like CT scans or high-nutrition IVs until the end.
• Yoon Young-ho (Seoul National University Professor) remarked, “Efforts are needed to stabilize the system, such as increasing fees for drafting life-sustaining treatment directives.”
• Related Link.

Revisiting High School Enrollment Rates.

• South Korea’s high school enrollment rate is 94%. The dropout rate is 2% for males and 1% for females.
• It seems South Korea has a higher education completion rate than other countries, but Han Sung-hee (Professor at Seoul National University) sees it as inflated.
• For one, Europe has graduation qualification exams. If grades aren’t sufficient, you can’t graduate.
• In Korea, most can graduate, but the basic academic proficiency rates are 9% in Korean, 17% in Math, and 9% in English. Almost on par with Europe.
• There’s a difference between not graduating and graduating but lacking proficiency. Han Sung-hee emphasized, “There are precious children in the educational blind spot who receive no attention,” adding, “Schools are more necessary for them.”
• Related Link.

ICYMI.

89 Years Later: From Kitei Son to Sohn Kee-chung.

• The nationality of the 1936 Berlin Olympic marathon gold medalist was recorded as Japanese, under the name Kitei Son, for 89 years.
• The Korean government repeatedly requested a correction, but the IOC (International Olympic Committee) refused, citing potential demands from other countries that experienced colonial rule.
• Only recently was Sohn Kee-chung’s (athlete) name added alongside. The introduction now includes that he signed with his Korean name and stated Korea when asked about his country of origin. Nam Sung-yong (athlete), who won bronze, also has his real name listed alongside Shoryu Nan.
• In 2002, Sohn Kee-chung left a will asking to be remembered. It seems that wish can finally be fulfilled.

420,000 Young Adults on Break.

• As of July, it’s the highest ever recorded.
• Employment in manufacturing, construction, and hospitality sectors has all decreased.

1.26 Million Rode Namsan Cable Car Last Year.

• With two 48-passenger cabins, last year’s revenue was 21.9 billion won, with a net profit of 7.1 billion won.
• Namsan Cable Car has been exclusively operated by Korea Cable Car Co., Ltd. since 1962. Originally, the license was to be renewed every three years, but the renewal in 1978 removed the validity period.
• Korea Cable Car Co., Ltd. occupies 6,593 square meters, paying about 100 million won annually for the use of state-owned land.
• The shares are divided between the families of Han Kwang-soo and Lee Gi-seon, with no known ties to Park Chung-hee (former President).
• Oh Se-hoon (Mayor of Seoul) stated, “The two families have monopolized and reaped profits for generations, with little contribution to Seoul or Namsan,” adding, “Addressing this imbalance is a matter of establishing social justice.”
• Related Link.

Coffee Contains Carcinogens.

• Drinking 87 cups of coffee gives you as much acrylamide as a pack of fries.
• There’s also benzopyrene. It’s the same benzopyrene from grilling meat, but much less. When green beans are roasted dark, benzopyrene content is 0.142–0.757μg/kg, compared to 0.52–19.9μg/kg when grilling meat over charcoal. Considering the amount in a cup of coffee, it’s negligible.
• No studies show coffee increases cancer risk. In fact, research suggests it may lower the risk of liver cancer, Parkinson’s, depression, and type 2 diabetes.
• “All substances are poisons; it’s the dose that makes the poison or the remedy.” So said Paracelsus (toxicologist).
• Jung Jae-hoon (food writer) advises, “Any health claim without a precise explanation of quantity is best ignored.”
• Related Link.
• Related Link.
• Related Link.

Cheongdam-dong Drinking Scandal: 80 Million Won Awarded to Han Dong-hoon.

• Han Dong-hoon (former People Power Party leader) won a lawsuit against Kim Eui-gyeom (former Democratic Party lawmaker) and Kang Jin-gu (former The Tamsa leader).
• There were allegations that Han Dong-hoon, during his time as Minister of Justice, had a late-night drinking session with Yoon Seok-yeol and Kim & Chang lawyers. The only basis for this claim was a tip-off from a cellist’s boyfriend who claimed to be present.
• This is the result of the first civil trial; a separate criminal trial is ongoing.

Only 1 of 40 Loudspeakers Removed.

• On the 4th, South Korea dismantled all 24 of its loudspeakers aimed at the North.
• North Korea removed 2 but immediately restored 1.

Worth Reading.

Issues After the Broadcasting Act Amendment.

• Shin Joon-bong (JoongAng Ilbo Editorial Writer) warns that many challenges remain even after the Broadcasting Act’s passage.
• For the KBS board, the structure changes from 7 and 4 members recommended by ruling and opposition parties to 4 and 2, with 2 recommended by the Viewers’ Committee, 2 by employees, 2 by academic societies, and 2 by lawyer groups, totaling 15.
• To immediately reconstitute the board under the new law, the Korea Communications Commission must act, but only Lee Jin-sook (Chairperson of the Commission) remains. If Lee is dismissed, a suspension of execution will be filed, and attempts to dismantle the commission could also lead to lawsuits.
• Related Link.

Trump’s Master Negotiation Tactics.

• Jang Deok-jin (Professor at Seoul National University) warned, “Korea has too much to lose.” It’s a disadvantageous negotiation from the start.
• First, he restricts the opponent’s options before negotiations begin. He makes an initial demand and then offers concessions.
• Second, he triggers the instinct to avoid risk. By presenting catastrophic scenarios, he extracts concessions.
• Third, he insists on bilateral negotiations. Breaking the Uruguay Round and emphasizing the Trump Round is a strategy to neutralize joint responses.
• Related Link.

Populism in Capital Markets.

• Even the Yoon administration catered to investors. It banned short selling and eased the major shareholder transfer tax criteria.
• The tax reform plan of the Lee Jae-myung administration got tangled starting with the abolition of the financial investment income tax.
• Kwon Ki-seok (Economics Editor at Kukmin Ilbo) emphasized, “We need to reestablish principles,” adding, “We should reaffirm the principle of imposing universal taxes on stock trading profits and push forward with the financial investment tax again.” The idea is that enhancing the consistency and predictability of taxes will help restore market trust and, in the long run, aid in stock price increases.
• Related Link.

Uncontested Elections: Why Bother Voting?

• In the 2022 local elections, 509 candidates were elected unopposed. 14% of city and provincial council members won without a vote. In Daegu, 66% of city council members were elected unopposed. Similarly, 61% of North Jeolla and 47% of South Jeolla provincial council members faced no competition. This means there was only one candidate running.
• Seo Bok-kyung (Director of The Possible Institute) asked, “Would you be interested in such elections and want to go to the polls?” Parties and candidates need to compete to create issues, and issues generate interest, leading people to vote.
• Isn’t it strange when one candidate runs in a district electing one person, and two candidates run in a district electing two?
• The same goes for parliamentary elections. There are few options beyond the Democratic Party and the People Power Party, and many areas still equate nomination with election.
• Seo Bok-kyung emphasized, “Democracy withering at its roots has no future.” She argued for the introduction of a runoff voting system to enable coalition politics.