“I’ll Embrace All Criticism and Govern.”.

• These were the words of Cho Kuk, released at midnight as part of the Liberation Day special pardon.
• “I believe that my pardon, reinstatement, and release today will be remembered as a symbolic moment marking the end of prosecutorial dictatorship that has abused its power,” he said.
• It was one day short of serving one-third of his two-year sentence.

80th Liberation Anniversary.

• After World War II, South Korea is the only country to achieve both democratization and industrialization simultaneously.
• Last year, the per capita national income was $36,624, surpassing Japan. The nominal GDP was $1.87 trillion, ranking 12th in the world.
• The Kyunghyang Shinmun editorial praised, “In a global trend where democracy is threatened by the rise of the far-right, the ‘resilience’ of Korean citizens in restoring democracy is worthy of being remembered as a human asset.”
• The Korea Times featured ‘K-Culture’ as its front-page headline. It evaluated, “The earnest wish that Kim Gu (Baekbeom) wrote in 1947 in ‘Baekbeom Ilji’—’The only thing I desperately want is the power of high culture’—has become a reality.” It further assessed that “as a non-violent and collective memory production method, culture and arts have survived post-liberation, shaping the identity of the Republic of Korea, and now, under the name ‘K,’ have become a global language.”
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Condolences for Japan’s Demise.

• Ahn Jung-geun’s (Patriot) calligraphy returns after 115 years. Revealed by the Yun Bong-gil Memorial Center.
• “Jangtanilseong Seonjilbon” means “With a deep sigh, I offer condolences for Japan’s demise in advance.”
• Ahn wrote it in Lüshun Prison, passed it to a Japanese guard, and it was kept by a Japanese official, then handed down to descendants. Recently, Gyeonggi Province negotiated its return.
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What Matters Now.

“Can I Live with My Husband?”.

• These were the words reportedly spoken by Kim Keon-hee after the special investigation.
• The likelihood of the two seeing each other again is slim. If Yoon Seok-yeol is found guilty of leading an insurrection, he faces at least life imprisonment. Kim Keon-hee also faces the possibility of a lengthy prison term.
• Yesterday, Kim Keon-hee exercised her right to remain silent during the special investigation. The questioning concluded in two hours.
• Kim Keon-hee’s lawyer told a Kyunghyang Shinmun reporter, “She likely feels utterly powerless as information from unrelated cases pours in without any chance to defend herself.”
• Related Link.

Did Sambo Check? Lee Jong-ho’s Wife’s Quick Trade.

• It has been confirmed that the wife of Lee Jong-ho (former CEO of Black Pearl Investment) traded shares of Well Biotech, a company related to Sambo Construction, making a profit of 20 million won. She invested 100 million won and made a single trade, achieving a 20% return.
• Well Biotech is a company where Lee Il-joon (Chairman of Sambo Construction) is the largest shareholder. It participated in the Ukraine reconstruction project.
• Lee Jong-ho once left a message in a KakaoTalk chat room saying “check Sambo” three days before the Yoon administration announced its Ukraine reconstruction plan.
• Prior to this, it was confirmed that Lee Ki-hoon (Vice Chairman of Sambo Construction) mentioned in a Telegram chat room that Won Hee-ryong (then Minister of Land, Infrastructure and Transport) would attend a Ukraine reconstruction forum. This was 12 days before the “check Sambo” message.
• Related Link.

Yoon’s Favoritism Scandal, Seoul Detention Center Chief Replaced.

• It’s a disciplinary action. Criticism arose over granting Yoon special privileges like separate exercise and bath times, and providing a distinct space for lawyer meetings.
• The Ministry of Justice transferred Kim Hyun-woo (Seoul Detention Center Chief) to Anyang Prison Chief. Kim Do-hyung (Suwon Detention Center Chief) is the successor.
• Related Link.

2 Billion Won Given to People Power Party Before Election.

• This is what Yoon Young-ho (Unification Church Director) said after being arrested.
• He testified, “The People Power Party district leaders reported that they handed over the cash to the provincial party chairpersons.”
• Separately, there are specific allegations that Kwon Seong-dong (People Power Party lawmaker) received shopping bags twice from Han Hak-ja (Unification Church President).
• The special prosecutor searched the Unification Church’s Cheon Jeong Gung and found bundles of cash with bank straps in Han Hak-ja’s (Unification Church President) safe. Estimates suggest it could range from billions to hundreds of billions of won. According to Hankyoreh, there is speculation that these might be Bank of Korea sealed notes. This implies the possibility that newly issued banknotes sealed by government offices have leaked out.
• Related Link.
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Deep Dive.

Reveal the Process, Not Just the Results.

• ‘Fiscal Savings Meeting’ insights.
• The Ministry of Economy and Finance claims to have saved 27 trillion won, but Jeong Chang-soo (Director of the National Budget Research Institute) points out, “There are only big numbers, no detailed list.”
• Lee Jae-myung immediately asked, “What do you think about the issue of data disclosure?”
• Lee Jae-myung: “Is there a problem with disclosing it?”
• Yoo Byung-seo (Director of Budget Office, Ministry of Economy and Finance): “No. There’s no reason not to disclose it, and no reason to be misunderstood.”
• Lee Jae-myung: “Then let’s disclose it.”
• Jeong Chang-soo emphasized, “The key should be changing the direction of projects and the spending structure.”
• Shin Seung-geun (Director of the Tax and Fiscal Reform Center, People’s Solidarity for Participatory Democracy) also stressed, “Fiscal resources are always lacking anyway,” adding, “We need to persuade the public with concrete numbers.”
• “Even if only 1% of the public understands, things change. If 500,000 people understand, it becomes a revolution.”
• Related Link.

Disclose Local Government Bank Interest Rates.

• It’s not that regions lack money. According to the National Fiscal Research Institute, local governments hold cash amounting to 170 trillion won. They have it in funds and general budgets. One local government in Gyeonggi-do has a surplus of 130 billion won but issues local bonds worth 40 billion won, paying 1.2 billion won in interest annually.
• Jung Chang-soo pointed out, “Interest earnings range from a high of 4.7% to a low of 0.5%.” He added, “If this information is transparently disclosed, local residents will protest, and improvements are likely.”
• Lee Jae-myung proposed, “Let’s investigate and disclose all local governments.”
• Yoo Byung-seo said, “The contents of the treasury contracts aren’t secret, and it seems right to make them public.”

Moon Hyung-pyo and Hong Wan-sun’s Pardon.

• Included in the Liberation Day special pardon were Moon Hyung-pyo (former Minister of Health and Welfare) and Hong Wan-sun (former Chief Investment Officer of the National Pension Service).
• In September 2015, they pressured the National Pension Service to vote in favor of the merger between Cheil Industries and Samsung C&T. The National Pension Service suffered a loss of 350 billion won, while Lee Jae-yong (Chairman of Samsung Electronics) and his family pocketed an 800 billion won windfall. Samsung C&T shareholders shed tears of blood.
• Lee Sang-min (Research Fellow at the Korea Institute of Public Finance) remarked, “If the problem is that Lee Jae-yong inherited Lee Kun-hee’s (former Chairman of Samsung Electronics) money without taxes, then it’s ‘hereditary capitalism’,” adding, “But Lee Jae-yong didn’t inherit Lee Kun-hee’s money; he expanded his wealth by embezzling public funds,” pointing out, “This is not ‘hereditary capitalism’ but ‘predatory anti-capitalism.’”
• Related Link.

Another Take.

Jeon Han-gil Escapes Disciplinary Action.

• The People Power Party is embroiled in a ‘pro-Jeon’ vs. ‘anti-Jeon’ debate. Despite calls for severe sanctions like expulsion against Jeon Han-gil (former lecturer) for disrupting the party convention, only a warning was issued.
• Candidates for the party’s leadership are appearing on Jeon Han-gil’s YouTube channel for interviews.
• The Kyunghyang Shinmun editorial questioned, “Have they decided to become a far-right party?” and remarked, “This is political self-harm at its worst.”
• Related Link.

Pushing for Punitive Damages Against Media Again.

• Jeong Cheong-rae (Democratic Party Leader) is determined. The Moon Jae-in administration attempted this, but it was shelved amid debates over press freedom infringement.
• Jeong stated, “The scope of the punitive damages we are pursuing is very narrow,” adding, “It won’t even affect 0.0001% of healthy media.”
• Related Link.

Half of Petrochemical Industry to Shut Down in Three Years.

• One of the five key national industries, yet struggling with China’s oversupply and global demand slump. In the first half of this year, only Kumho Petrochemical turned a profit among the big four, while LG Chem (petrochemical division), Hanwha Solutions (petrochemical division), and Lotte Chemical posted a combined loss of 660 billion won. The four major petrochemical companies owe over 20 trillion won due within a year. Shutdowns have already begun. LG Chem halted its Yeosu styrene monomer plant last year, and Lotte Chemical has stopped 3 out of 5 lines at its Yeosu plant. Yeochun NCC is facing a bankruptcy crisis. Kim Jung-kwan (Minister of Trade, Industry and Energy) stated, “We should take the shipbuilding industry’s restructuring as a mirror.” This implies voluntary restructuring is necessary. No free rides. Yoo Seung-hoon (Professor at Seoul National University of Science and Technology) emphasized, “Financial support should be provided on the condition of significantly reducing production, and it should be used for investment in high-value-added production plants, not for debt repayment.”
• Related Link.
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Removing Loudspeakers? A Fool’s Dream.

• Kim Yo-jong (Vice Director of the Workers’ Party of Korea) said this.
• After North Korea dismantled one of its 40 loudspeakers, Lee Jae-myung expressed hope for “dialogue and communication,” to which she retorted it was “nothing but a foolish dream.” She emphasized, “There is no intention to improve relations with South Korea,” and stated, “This conclusive stance and view will be entrenched in our constitution.”
• Why is Kim Yo-jong acting this way?
• The Hankyoreh highlighted that the fact it hasn’t been reflected in the constitution yet could be seen as “leaving room for easing hostility.”
• The Kyunghyang Shinmun interpreted it as “a power struggle to be recognized as a nuclear state.” It suggests that South Korea is seen as an obstacle in North Korea-U.S. negotiations.
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Why Rents Rise Despite Stabilized Home Prices.

• Seoul’s rental prices have risen for 26 consecutive weeks. Transaction volumes have decreased.
• As it becomes harder to return deposits, more landlords are moving in themselves, reducing rental listings. With increased rental demand, a dual pressure situation has emerged. This is a result of tightened loan regulations and a decline in gap investments.
• A real estate expert interviewed by Segye Ilbo analyzed, “The combination of demand shifts due to loan regulations and reduced listings from loan limit cuts is intensifying the typical dual-structure rental crisis.”
• Related Link.

End LH’s Dark History.

• In real estate policy, Korea is both powerful and inept.
• The government was strong when it seized land, displaced residents, laid infrastructure, and built cities.
• But when it sold that land to developers, causing housing prices to soar and forcing citizens into debt or endless renting, it was utterly inept.
• LH (Korea Land and Housing Corporation) is public in name only, operating financially on market logic. To supply rental housing, LH needed money, which it earned through land development (land sales). Trying to boost housing prices on one hand and create housing welfare on the other is a doomed effort.
• Choi Kyung-ho (author of ‘Perhaps Social Housing’) suggested “long-term low-interest supplier financing and housing subsidies” as solutions.
• It’s time for LH to stop land sales anyway. (There’s no more land to sell.) A change in approach is needed. By increasing the housing subsidy budget by just 2 trillion won, LH can sustainably increase rental housing. (They also need to stop converting rental housing into sales.) With just 0.3% of the Korean government budget, Austrian-style public rentals are possible. This isn’t a Nordic story. It’s achievable with the will. LH must be made to work.
• Related Link.

Feasibility Study Threshold Raised to 100 Billion Won.

• After 26 years, it’s doubling from 50 billion won. This means more projects will bypass feasibility studies.
• There were criticisms that feasibility studies hinder necessary projects, but concerns remain about failing to filter out economically unviable ones.
• In the past five years, among SOC (Social Overhead Capital) projects between 50 billion and 100 billion won, four were completed and two failed the feasibility study.
• A national university professor told the JoongAng Ilbo, “This will increase pork-barrel projects aimed at winning local votes and could lead to fiscal deterioration.”
• Related Link.

The Fix.

Electricity Rates Bound to Rise.

• Lee Jae-myung’s words at the Chief Aides’ Meeting. He said, “Climate issues have become a national task,” and added, “If it’s a path we must take, let’s respond actively.”
• “This isn’t simply about raising or lowering electricity rates. As reduction targets increase, pressure is inevitable, but we must carefully consider the pressure on vulnerable groups. We need to quickly increase the share of renewable energy to minimize this pressure.”
• According to the Paris Agreement, national reduction targets (NDC) must be updated every five years. The Moon Jae-in administration set a goal to reduce by 40% compared to 2018 by 2030. Plan 1.5 proposed raising the reduction target to 65% by 2035 compared to 2018.
• Related Link.

Despite Presidential Rebuke, 7 Die in Workplace Accidents Over 5 Days.

• There was a fall at a construction site, and someone was crushed by a tree. A worker died under a steel plate, and there was an electrocution incident.
• According to the Ministry of Employment and Labor, workplace accident deaths were 874 in 2022, 812 in 2023, and 827 in 2024, averaging 2.3 per day. Businesses with fewer than 5 employees account for 37%, and those with 5 to 49 employees make up 44%.
• Park Young-min (labor attorney) pointed out, “The police apply charges of occupational negligence, but the Labor Office often concludes no violation of the Serious Accident Punishment Act.”
• Kim In-ah (Hanyang University professor) emphasized, “There is no solution other than creating and establishing governance based on worker participation.”
• Related Link.
• Related Link.

Gwangju Hakdong Disaster: Main Contractor Held Accountable.

• In June 2021, a building under demolition at a redevelopment site collapsed, killing 9 and injuring 8.
• The court found the subcontractor largely responsible but also ruled that the main contractor, HDC Hyundai Development, had a duty to ensure safety measures.
• While accountability was assigned, the subcontractor faced prison, whereas the main contractor received a suspended sentence and a fine.
• The subcontractor’s CEO was sentenced to 2 years and 6 months, the site manager to 2 years, and the main contractor’s site manager to 2 years with a 3-year suspension.
• HDC Hyundai Development was fined 20 million won.
• Related Link.

ICYMI.

Speeding Ticket for the Wealthy.

• Switzerland bases fines on income and assets.
• A wealthy individual with assets worth hundreds of billions of won was fined 10,000 Swiss francs for speeding. If caught again within three years, an additional 80,000 Swiss francs will be imposed. In Korean won, that’s about 150 million. The highest ever was 400 million won.
• Related Link.

Lee Bong-gwan’s Business Philosophy: Quick Cut Losses.

• As soon as the special prosecutor conducted a raid, he confessed and spilled everything.
• Lee Bong-gwan (Chairman of Seohui Construction) once said in a past YTN interview, “If it’s not bearable, it’s important to just let it go.” In an interview with Maeil Business Newspaper, he stated, “It’s crucial not to incur losses before profits.”
• Lee Bong-gwan was in a situation where he could be charged with bribery and evidence tampering or fabrication. The assessment is, “It wasn’t bearable, so he let it go.”
• Related Link.

AI to Boost Global Growth by 4-18% Over a Decade.

• PWC predicts this. The optimistic scenario is 15%, the pessimistic one is 1%. Quite a gap. Goldman Sachs forecasts 7%. The IMF expects disparities by country. The U.S. at 5.6%, Korea, Japan, and other advanced nations at 4.7%, emerging markets at 3.1%, low-income countries at 2.8%.

Buy Another House in Gangneung, Gyeongju, Iksan.

• The second home policy will be expanded.
• It’s a system granting special exemptions for single-household homeowners in depopulated areas.
• Even if someone owns a house in Seoul, they can buy another in Tongyeong, Gyeongnam, and still receive benefits like capital gains tax reductions for single-home owners.

Worth Reading.

“Please Skip the Homosexuality Content.”.

• Kim Ji-hye (Professor at Gangneung-Wonju National University) received this request before an upcoming human rights lecture. She said skipping was impossible, and the lecture was ultimately canceled.
• This was common during the Yoon administration. Kim Ji-hye interpreted it as “fear growing on ignorance, making it easier to manipulate those terrified.” Yet, nothing has changed even after the regime shift. Kim Min-seok (Prime Minister) did not apologize for his anti-LGBT remarks. Ahn Chang-ho (Chairman of the National Human Rights Commission) still holds his position.
• Kim Ji-hye emphasized, “To uphold the pluralistic democracy that the Constitution aims for, we must stand tall, meet the gaze, and confront the anti-LGBT hatred sown by far-right forces.”
• Related Link.

100 Million Won Salary vs. 5 Billion Won in Stocks.

• If your salary is 100 million won, you pay about 10 million won in taxes, even after deductions. What about stock earnings? If the major shareholder threshold for capital gains tax is 5 billion won, stocks under 5 billion won are tax-free. Park Byung-ryul (Kyunghyang Shinmun Economic Editor) questioned, “Shouldn’t we exempt earned income under 100 million won?” adding, “To ensure tax fairness, isn’t that necessary?”
• “There’s an argument that stock tax breaks are to grow the capital market, and real estate tax breaks are for basic rights. If we follow this logic, labor income should be reduced first. Boosting work motivation should increase production. In a market with shrinking production, the capital market can’t grow, and basic needs like housing are hard to secure.”
• Related Link.

Lee Jae-myung’s Tax Cuts for the Wealthy.

• Ryu I-geun (Director of the Hankyoreh Economic and Social Research Institute) believes that the Lee Jae-myung administration’s tax policy still maintains a stance of tax cuts for the wealthy.
• They left the patchwork comprehensive real estate tax as is, forfeiting additional revenue worth trillions of won.
• The tax burden rate dropped from 22% in 2022 to 17% last year. The OECD average is 25%. Although it will recover under the Lee administration, it is still far from returning to pre-Yoon levels.
• Ryu I-geun warned, “If we don’t share the burden now, a bigger bill may come later.”
• Related Link.

There’s an Underground Market for Pardons.

• “Nothing is free. It’s unreasonable to think someone will take care of me while I do nothing.”
• This is what a businessman pardoned during the Lee Myung-bak administration reportedly said. “It’s human nature to do whatever it takes to get out of prison,” he added. This is why pardon brokers thrive.
• “There is an underground market for pardons,” said Park Beom-gye (former Minister of Justice and Democratic Party lawmaker). He mentioned “various temptations, including large offers.”
• Kang Cheol-won (Korea Daily Social Affairs Editor) pointed out, “The underground market forms because the criteria for pardon candidates are unclear.” The president reportedly feels most like a president when making pardon decisions. Ultimately, it’s up to the president’s will, and the sense of efficacy is significant.
• The president might not know, but there could be numerous vested interests tangled behind the presidential pardon power.
• Related Link.

Not Electing a Paragon of Virtue.

• They must understand public duty. Kim Kwang-ho (Kyunghyang Shinmun Editorial Writer) suggests three criteria for evaluating moral standards in confirmation hearings.
• First, any moral suspicion contrary to the essence of public office should not be tolerated, no matter how minor. Issues like false residency registration or farmland law violations might be overlooked after examining the details.
• Second, competence must be properly assessed. Achievements or simple career history should not be disguised as expertise or used to shield moral suspicions. Kang Sun-woo (former Minister of Gender Equality and Family nominee) is a prime example.
• Third, areas where morality and policy philosophy overlap must be disclosed to the public. It’s only natural to verify words, writings, and actions.
• Kim Kwang-ho emphasized, “There is no reason for the political sphere not to agree on principles of this level.”
• Related Link.