Peacemaker and Pacemaker.

• Lee Jae-myung (President) met Donald Trump (U.S. President). Concerns were high, but he held his ground.
• He set the tone by saying, “Thanks to President Trump, the Korean Peninsula was stable, but the situation has worsened since his departure.”
• There was laughter when he said, “If Trump becomes a peacemaker, I’ll help as a pacemaker.” Meaning, if Trump makes peace, Lee will help maintain the pace.
• Trump remarked, “If we work together, progress can be made.”
• While more practical discussions likely took place in the private meeting, it can be assessed as a smooth meeting overall.
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No Ambush Attack.

• Overall, it ended smoothly without any surprises. The atmosphere was congenial.
• The BBC assessed, “South Korea must be breathing a huge sigh of relief right now.”
• After the pacemaker comment, the press conference was flooded with irrelevant questions unrelated to Korea, allowing sensitive issues to be sidestepped.
• Foreign media didn’t highlight anything special except the possibility of meeting Kim Jong-un.
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Trump Lured with a Low Profile.

• Lee Jae-myung’s strategy worked. Respectful, yet not subservient. This contrasts with Shigeru Ishiba (Japanese Prime Minister), who sparked controversy with his sycophantic diplomacy in the same venue last February.
• Trump always wants to lead the situation. To him, a public meeting is like a live show for the American people. Lee reportedly studied Trump’s style by reading his book on negotiation techniques.
• Lee began by praising the Oval Office’s interior renovation, calling it “dignified,” and lauded Trump as the “only person who can solve the North Korean issue.” The atmosphere lightened when Lee made a pun about Trump being a “peacemaker” and a “pacemaker,” making Trump laugh.
• When Trump boasted about contributing to the success of the Pyeongchang Olympics while discussing Kim Jong-un, Lee chimed in, “The situation on the Korean Peninsula worsened while you stepped back a bit from U.S. politics.”
• Lee disarmed Trump further by saying, “Even when Kim Yo-jong (North Korean Workers’ Party Vice Director) criticized me recently, I didn’t doubt the special relationship between Trump and Kim Jong-un.” Trump responded, “Looking at various South Korean leaders I’ve worked with, their approach to North Korea wasn’t right,” adding, “President Lee Jae-myung’s approach is much better.”
• Imagining Yoon Seok-yeol in this scenario, one can appreciate how fortunate it is that it ended this way.
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What Matters Now.

Close Call: “What’s Happening in Korea?”.

• Just before the meeting, Trump’s post on Truth Social was alarming.
• “It looks like a purge or revolution is happening in Korea. We cannot accept that, and we cannot do business there. I am meeting the new president today.”
• Meeting with reporters, he said, “I heard the new Korean government has launched a vicious raid on churches in recent days and even entered military bases to gather information,” adding, “I will check on that.”
• It likely refers to the special prosecutor’s investigation. It’s true that Sarang Jeil Church and Osan Air Base were raided. Axios analyzed it might refer to the Unification Church raid.
• Lee Jae-myung said, “Korea has just overcome chaos from a praetorian coup,” and “the special prosecutor is conducting a factual investigation.”
• Trump said, “I am sure it’s a misunderstanding.” There were concerns about interference regarding Yoon Seok-yeol’s (former President) arrest, but during the meeting, he seemed largely unconcerned. It was likely a bluffing card to pressure the counterpart.
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“We Want Ownership of USFK Land.”.

• “We spent a tremendous amount of money building that base. Korea says they gave us the land, but there’s a big difference between giving and leasing. I want to see if we can secure ownership of that land.”
• Trump’s sudden remark might be a card to increase defense cost-sharing.
• When asked by a reporter if he was considering reducing USFK numbers, he said, “What I want to say now is, we have been long-time friends and still are.” He also noted, “I don’t want to talk about reducing troops,” which is an important point.
• The issue, as expected, was defense cost-sharing. He claimed, “Korea agreed to increase its share, but Biden (former US President) gave up billions of dollars.”

There Was a Time When America Built a Ship a Day.

• It was during World War II.
• “Trump said, ‘That era is over,’ adding, ‘We need to buy ships from Korea, and Korea will also build ships in America.'” The MASGA (Make American Shipbuilding Great Again) project proposed by the Korean government is considered to have been effective.

Open to Attending Gyeongju APEC.

• “If South Korea wants, I will visit,” he said. “I hope to meet Kim Jong-un (Chairman of North Korea’s National Defense Commission) again,” he added, “I think we should meet again.”

Isn’t Korean Hard to Learn?

• While Lee Jae-myung was signing the guestbook, Trump asked, “Which language is better in terms of accuracy, English or Korean?” Lee replied, “Korean might be a bit better for writing, and English a bit better for speaking.”
• Trump: “Did you bring that pen yourself? I like its thickness. It’s nice. Are you going to take it?”
• Lee: “It’s made in Korea. It would be useful for your very difficult signature, Mr. President.”
• Trump: “I won’t use it, but I’ll cherish it as an honorable gift. Before you leave, I’ll give you a gift too.”
• Lee: “There is a gift I want. I saw the gift Ishiba received, it was a photo album.”

Deep Dive.

Stronger Commercial Act Amendment Passed.

• The amendment mandates cumulative voting for listed companies with assets over 2 trillion won. If electing three directors, shareholders receive three votes per share to allocate to a single candidate.
• The cycle of bill proposal, 24-hour filibuster, and vote passage repeated over four days.
• Following the Broadcast Act, EBS Act, and Yellow Envelope Act, the second Commercial Act amendment passed. The People Power Party abstained from voting.
• Song Eon-seok (People Power Party Emergency Committee Chair) called it an “economic rebellion law causing massive aftershocks to economic order,” while Kim Byung-gi (Democratic Party Floor Leader) stated, “The Korean capital market is ready to take a leap forward.”

The Third Amendment to the Commercial Act is Coming.

• The first expanded directors’ fiduciary duties to the company and shareholders.
• The second focused on cumulative voting.
• The third mandates the cancellation of treasury shares.
• Chosun Ilbo criticized, saying, “The last line of defense for management rights is being dismantled.”

Kim Kun-hee’s Arrest and Indictment Scheduled for the 29th.

• She has been questioned four times and will be questioned once more tomorrow. She is not answering most of the questions.
• The detention period expires on the 31st.

Another Take.

Search of Park Sung-jae and Shim Woo-jung.

• The special prosecutor views Park Sung-jae’s (former Minister of Justice) improper orders to the Ministry of Justice as tantamount to engaging in critical insurrection duties.
• It was confirmed that he ordered prosecutors to be dispatched to the martial law command immediately after the martial law declaration on December 3. He instructed the head of the Immigration Bureau to have an exit ban team on standby and the head of the Correctional Bureau to secure detention space.
• Failing to investigate despite knowing martial law was illegal could be seen as dereliction of duty.
• The phone call between Park Sung-jae and Shim Woo-jung (then Prosecutor General) right after the martial law declaration is also suspicious.
• The special prosecutor suspects Shim Woo-jung of dropping the appeal immediately after the court decided to cancel Yoon Seok-yeol’s detention last March.
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Too Much, Too Soon.

• This is what Lee Jae-myung said about the criticism that historical issues were omitted from the Korea-Japan summit.
• He held a press briefing on the plane from Tokyo to Washington. Lee stated, “It would be best if everything could be resolved to our satisfaction all at once, but such things don’t happen in the real world,” emphasizing, “We must do what we can, even if criticized.”
• The press briefing was congenial. Applause broke out.
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Isn’t Reinstatement an Invitation to Politics?

• Cho Kuk (former leader of the Cho Kuk Innovation Party) received both a pardon and reinstatement. A pardon nullifies or exempts a sentence, while reinstatement restores lost or suspended qualifications. With a pardon, you’re released; with reinstatement, you can run for office.
• “Why bother letting him off, if this is the case, why not just pardon him, why reinstate him too? Isn’t reinstatement an invitation to engage in politics?” This is from Yoon Jae-gwan (spokesperson for the Cho Kuk Innovation Party).
• Dissatisfaction is brewing among Democratic Party lawmakers. Jeon Hyun-hee (Democratic Party Supreme Council member) remarked, “A more cautious approach would be wise,” while Kang Deuk-gu (Democratic Party lawmaker) expressed concern, wondering if he might appear like a triumphant general to the public.
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The Fix.

5,000 Security Guard Workplace Accidents.

• Last year saw 4,984 cases, and by June this year, there were 2,549. This is according to the Dong-A Ilbo.
• For buildings with over 300 units, contracts are made with service companies, but due to the need to appease the residents’ committee and management office, guards are often dismissed when conflicts arise with residents.
• For buildings with fewer than 300 units, there are no such contracts. If the business has fewer than five employees, it is not subject to the Labor Standards Act.
• Jung In-gap (Security Guard) said, “With the minimum wage increase, the 50,000 won monthly meal allowance disappeared,” adding, “Even though we work 24-hour shifts, salaries are often calculated based on an 8-hour workday, which is a common contractual abuse.”
• It is estimated that there are about 1.5 million security guards working in apartments with fewer than 300 units.
• Koo Young-sun (Chairman of the Korea Security Guard Association) stated, “Due to the nature of security guards, who are often elderly or from vulnerable groups, many endure unfair treatment or are unaware they can apply for workplace accident claims.” This suggests the actual number of incidents could be much higher.
• Kim Wi-sang (People Power Party lawmaker) said, “There is a need to establish tailored workplace accident prevention measures for security guards.”
• Related Link.

National Fish Flounder and Rockfish Also Decline.

• Last month’s shipments of flounder and rockfish were 3,057 tons and 1,017 tons, respectively, down 21% and 4% from the same month last year. Rising water temperatures have increased mortality.
• There is a system that provides up to 50 million won in subsidies for releasing farmed fish. The idea is that if they’re going to die anyway, it’s better to release them and raise new fry.
• The National Assembly Budget Office pointed out, “Regulations are needed for impact assessments, surveys, and vulnerability evaluations due to climate change.”
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99 Firefighters’ Suicides in 7 Years.

• From 2019 to August this year, 99 firefighters have taken their own lives. This year alone, 7 have died by suicide.
• Tracking the 900 who voluntarily resigned is hardly easy.
• Only 23 cases have been recognized as deaths in the line of duty. Lee Chang-seok (Firefighters’ Union Chairman) pointed out, “Even if there are records of PTSD from horrific scenes, there’s a tendency to focus more on personal issues just before death.”
• Related Link.

Income Cliff at Ages 60-64.

• Retirement happens at 60, but the national pension starts at 63. Since 2023, it was delayed to 63.
• In the pension gap period, 1.77 million people receive at least one pension, while 2.37 million receive none.

ICYMI.

Fake Starbucks at Wonsan Beach.

• It’s called ‘Mirai Reserve,’ but it unmistakably mimics Starbucks Reserve. Three cups of coffee cost $25, not cheap by any means. Payment is made by preloading U.S. dollars and using a QR code.
• Photos and videos of Kalma Beach, shared by tourists who visited North Korea, make the term ‘North Korea’s Waikiki’ seem fittingly pleasant.
• A one-week package tour costs $1,400, excluding airfare.
• A Russian tourist said, “I didn’t feel like I was being watched, but resort staff, from security personnel to waitresses and doctors, were always nearby wherever I went.” “It felt like being a hero in a movie because everyone was watching me and whatever I asked for was immediately fulfilled,” he added.
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Seaweed Production to Drop 62% by 2100.

• Research from Pukyong National University. Seaweed farming requires water temperatures below 22°C. Thrives between 5-15°C. Harvested from autumn to the following spring.
• If heatwaves persist into autumn, farming starts late and yields decrease. From 1968 to 2023, Korea’s sea surface temperature rose by 1.4°C. Faster than the global average increase of 0.7°C.
• In 2023, seaweed production was 136.19 million sheets, over 10% less than in 2022. In 2024, it increased by another 10%, but this was due to artificial efforts like expanding farms and improving farming techniques. The decline in production is seen as a trend.
• Korea accounts for 70% of the world’s seaweed production.
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Why Professors Hesitate to Get Promoted.

• After five years as an associate professor, one is eligible for promotion to full professor. At Seoul National University, 200 to 250 are eligible annually, but only 60 to 90 actually get promoted.
• The salary difference between full and associate professors isn’t significant, and becoming a full professor often means more administrative duties.
• Full professors receive tenure, but associate professors at Seoul National University also stay until retirement.
• Chosun Ilbo calls this the ‘unbossing’ phenomenon. There’s a reluctance to become the boss.

Public Service Exam Applicants Drop by 60%.

• In 2021, there were 310,000 applicants, but this year it’s less than 130,000.
• During the same period, the number of economically inactive youth decreased from 3.04 million to 2.52 million.
• The Kyunghyang Shinmun analyzed it as “due to low salaries and malicious complaints.”
• 230,000 young people are preparing for jobs in private companies.
• Related Link.

How Bill Gates Uses AI.

• He asks ChatGPT questions about the latest in physics and sends the answers to his physicist friends for verification. “It’s quite accurate and getting more so,” he says.
• Bill Gates (Microsoft Founder) told the JoongAng Ilbo in an interview, “I like AI that provides people without access to necessary knowledge with the information they need for their lives,” adding, “We are developing a tool that allows access to the world’s best agricultural knowledge in local languages on low-spec smartphones.”
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400,000 Wegovy Prescriptions in 8 Months.

• Though it’s an obesity treatment, it’s increasingly prescribed for dieting purposes.
• The principle is to prescribe it to patients with a BMI over 30, or those with a BMI between 27 and 30 who have comorbidities like hypertension.
• Oh Sang-woo (Professor at Dongguk University Hospital) warned, “Wegovy is among the safest obesity treatments available, but using it recklessly without adhering to the prescribed dosage is dangerous.”
• Related Link.

America’s K-Food Franchises.

• K-Pot, a Korean BBQ restaurant, has expanded to 100 locations. It’s a buffet offering unlimited BBQ and shabu-shabu.
• Gen Korean BBQ House also boasts over 50 locations.
• Bibibop is a fusion bibimbap franchise, while Cupbop is, quite literally, a cup rice store. They have over 80 and 60 locations, respectively.
• Two Hands Corn Dog offers Korean-style hot dogs, and SomiSomi sells taiyaki topped with ice cream.
• Bonchon Chicken has more than 150 outlets.
• Related Link.

Worth Reading.

This Isn’t the U.S. and China We Knew.

• The U.S. wants to export semiconductors to China, but China refuses. They suspect a backdoor might be installed. The Huawei backdoor controversy from years ago has reversed roles.
• The U.S. demanding a 15% commission on AI semiconductor sales to China is a sign of its changing order.
• China isn’t the same either. It’s undergoing intense restructuring in solar, battery, and steel sectors. The U.S. veering towards state capitalism and China trying to surpass its limits both feel unfamiliar.
• Park Soo-ryeon (JoongAng Ilbo Industry Editor) emphasized, “We need to find ways to leverage China, which has risen from the world’s factory to its brain. It’s for our survival, caught between the U.S. and China.”
• Related Link.

Restoring Trust Begins with Transparency.

• Public disclosure of officials’ assets was the brainchild of Kim Young-sam (former President).
• Kim Dae-jung (former President) introduced e-government, and Roh Moo-hyun (former President) expanded information disclosure.
• Some institutions still resist transparency, including the Presidential Secretariat, the prosecution, the Ministry of Justice, and the Board of Audit and Inspection.
• Ha Seung-soo (Nongbon Representative) pointed out, “Such secrecy breeds figures like the ‘former Prosecutor General who incited rebellion.’” Yoon Seok-youl used special activity funds like a personal treasury, privatizing the prosecution and seizing supreme power.
• Ha Seung-soo believes the Presidential Secretariat must lead the reform of power institutions.
• Ha Seung-soo emphasized, “Start with the Presidential Secretariat’s transparency, and use it as a foundation to drive openness in power institutions, thereby gaining momentum for government innovation.”
• Related Link.

Fired for Incompetence?

• Lee Ji-moon (Senior Advisor, Whistleblower Practice Movement) emphasized, “The key is not whether the whistleblower is ‘perfect,’ but whether the report serves the public interest and is truthful.”
• This comment refers to Yu Si-min (Writer) saying Kang Sun-woo’s (Former Minister of Gender Equality and Family nominee) aide was “fired for incompetence.”
• The whistleblower’s personal flaws or abilities are not the essence. This is when you say, “Look at the moon, not the finger pointing at it.”
• “Whistleblowing is the lowest yet strongest courage sustaining democracy. When it is seen as a force protecting the community, not betrayal, our democracy will become even more robust.”
• Related Link.

Anti-Discrimination Law as Lee Jae-myung’s Legacy.

• Among OECD countries, only Korea and Japan lack an anti-discrimination law. Even Japan has laws addressing sexual orientation and identity diversity.
• A Human Rights Commission survey showed 67% support for enacting an anti-discrimination law.
• Kim Bo-rami (lawyer at Dike) emphasized, “The Lee Jae-myung administration should set the enactment of an anti-discrimination law as a national task, moving beyond the excuse of social consensus and presenting concrete action plans.” The point is, “There is no reason to demand social consensus for realizing human rights and constitutional values.”
• The anti-discrimination law was a pledge by Roh Moo-hyun (former president) in 2002. It’s time to end 18 years of drift.
• Related Link.

Is Long-term Investment Attractive?

• Real estate’s invincibility myth is strong, but stocks still lack confidence for long-term investment.
• Yang Seung-hoon (Professor at Kyungnam University) suggested, “Just as middle-class parents gift stocks to their children, the government could consider giving all youths or soldiers small stock dividends.”
• We must see the essence. The exodus from the national stock market isn’t due to taxes but the backward corporate governance of Korean companies. The failure to be included in advanced country indices is also seen as a structural discount factor.
• Yang Seung-hoon emphasized, “The premise of a virtuous cycle is that citizens should invest long-term instead of trading stocks for short-term gains, and companies should use their increased value for bold investments and job creation to enhance competitiveness.”
• Related Link.

Resolve with Financial Investment Income Tax.

• Round and round, it comes back to the financial investment income tax. Abolishing it leaves no choice but to increase the stock transfer tax.
• Kim Hyun-dong (Professor at Paichai University) pointed out, “If the financial investment income tax had been implemented as planned, the stock transfer tax controversy would never have arisen.” He suggests, “Incorporating dividend income into the financial investment tax system and aligning it with stock capital gains and tax burdens is the right direction.”
• “How can the principle that all citizens must pay taxes coexist with the claim that those who earn billions from stock sales should be exempt?”
• The warning that “KOSPI 5000 is a result of economic growth and enhanced corporate value, and if we set that number itself as a national goal, bubbles and tricks are inevitable” is also significant.
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