Kim Jong-un’s Risky Adventure.

• Kim Jong-un (Chairman of North Korea) visited China with his daughter Kim Ju-ae. Photos released by Rodong Sinmun show Choe Son-hui (North Korean Foreign Minister) and Kim Song-nam (Director of the International Department of the Workers’ Party of Korea) accompanying him.
• It’s the first meeting of North Korean, Chinese, and Russian leaders in 66 years.
• Speculation suggests he will receive treatment on par with Vladimir Putin (President of Russia).
• Cai Qi (Secretary of the Chinese Communist Party) greeted him at Beijing Station. He is ranked fifth and is considered a close aide to Xi Jinping (President of China).
• This is a very important event for Kim Jong-un. It could secure his status as a nuclear power and enhance his negotiating power with the U.S. The strategy might lean towards security with Russia and economy with China.
• The Seoul Shinmun editorial analyzed, “There is growing concern that North Korea, which has militarily aligned with Russia amid the Russia-Ukraine war, will strengthen economic cooperation with China, which it longed for, accelerating its nuclear and missile development.”
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Xi Jinping’s Seatmates.

• In 1959, Kim Il-sung (then North Korean Premier) stood three seats away from Mao Zedong (then Chinese Premier). He was after Ho Chi Minh (then Vietnamese Premier) and Zhou Enlai (then Chinese Premier). At that time, North Korea-China relations were distant.
• According to the Kremlin, Putin is likely to sit on Xi Jinping’s right, with Kim Jong-un on his left.
• In 2015, during the Victory Day parade, Park Geun-hye (then President) sat on Xi Jinping’s right.
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First Lady Kim Ju-ae.

• There are interpretations suggesting an intention to formalize Kim Ju-ae as a successor on the international stage.
• She is presumed to be twelve years old. The New York Times once published an analysis stating, “The fourth-generation successor of the Kim dynasty might be female.”
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What Matters Now.

Possible Meeting with Trump and Ishiba at UN Assembly.

• Lee Jae-myung is set to deliver a keynote speech at the UN General Assembly.
• South Korea holds the presidency of the Security Council for September. Lee will give his keynote on the 23rd and lead an open discussion on the 24th.
• Donald Trump (President of the United States) will also attend.
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Insurrection Trial to be Broadcast on TV.

• The special prosecutor law amendment passed.
• Kim Yong-min (Democratic Party lawmaker) stated, “An insurrection must never happen again in South Korea,” adding, “The insurrection trial should be recorded and made public like historical records, so future generations can see it and prevent another insurrection.”
• The special prosecutor’s term can be extended by up to 90 days.
• People Power Party lawmakers did not participate in the vote.
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“Freshmen Should Sit Quietly If They Know Nothing.”.

• At the Judiciary Committee meeting, Na Kyung-won (People Power Party lawmaker) told Park Eun-jung (Cho Kuk Innovation Party lawmaker) this. Park Eun-jung demanded an apology, saying she felt insulted, but it was brushed off.
• A fierce debate erupted between the ruling and opposition parties over the prosecution reform bill. As Choo Mi-ae (Democratic Party lawmaker, Judiciary Committee Chair) clashed with Na Kyung-won, the term ‘Choo-Na War’ emerged. Democratic Party lawmakers criticized Na Kyung-won as a ‘traitor’s henchman,’ while People Power Party lawmakers decried it as parliamentary dictatorship.
• The motion to appoint Na Kyung-won as the Judiciary Committee secretary was postponed.
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Deep Dive.

“Tell Me How Much You Need.”.

• “The Financial Services Commission is really working hard.” This was said by Lee Jae-myung (President) during a cabinet meeting.
• Kwon Dae-young (Vice Chairman of the Financial Services Commission) mentioned the creation of a parent fund by the Ministry of SMEs and Startups, stating, “Investment in venture capital is necessary,” and added, “With financial support, we can do 10 to 20 times better.”
• When Lee Jae-myung asked, “How much should we increase it?” Kwon Dae-young replied, “The more, the better,” prompting Lee to say, “Name the amount.” Kwon Dae-young suggested 500 billion won.
• It was Kwon Dae-young who proposed the real estate loan regulation idea last June. Lee Jae-myung once praised him, saying, “This is the man.”
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Choo Kyung-ho Raided for Martial Law Obstruction.

• On the night of December 3, Choo Kyung-ho (then floor leader of the People Power Party) was at the National Assembly, sending messages for lawmakers to gather at party headquarters. Constantly changing the venue for the general assembly might have been intended to obstruct the vote.
• The special prosecutor raided Choo Kyung-ho. Charges include involvement in important insurrection-related duties.
• The investigation could widen. The People Power Party is protesting, calling it a “reckless dance to annihilate the opposition.”
• The Korea Times editorial stated, “Intentional obstruction of voting is a constitutional violation, and the truth must be clearly determined,” emphasizing that “uncovering the facts is paramount.”
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Trump Likely Knew.

• There’s a good chance the Chinese government informed the U.S. about Kim Jong-un’s visit in advance. It’s said Trump was aware around the time of the U.S.-South Korea summit.
• With North Korea and China getting closer, Trump had reasons to embrace South Korea. He was indeed attentive. A U.S. official even remarked, “Among the ten or so summits during Trump’s second term, this one had the best atmosphere.”
• Ji-hye Yoo (Chief of Foreign Affairs and Security, JoongAng Ilbo) predicted, “Regardless of their true intentions, North Korea and China, needing each other, will agree on economic cooperation at an appropriate level and produce a favorable outcome.”
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Another Take.

No Presidential-Led Prosecutorial Reform Forum.

• “It was a possibility, not a commitment,” clarified Kang Yoo-jung (Presidential Office Spokesperson).
• There was speculation that Jeong Seong-ho (Minister of Justice) advocating for the Central Investigation Agency to remain under the Ministry of Justice reflected Lee Jae-myung’s intentions, but Kim Yong-min (Democratic Party Member) said, “I think that’s unlikely.” It seems no decision has been made yet.

Ministry of Justice to House Investigation Office? A Boost for Prosecutors.

• Kim Yong-min drew a line, stating, “Placing the Investigation Office under the Ministry of Justice is essentially a ‘prosecutor empowerment law.'”
• The core of the system design is to prevent ‘lenient investigations’ through competition among investigative agencies and control ‘excessive investigations’ by having the prosecution office’s prosecutors in charge.
• Kim Yong-min stated, “What the prosecution desires most is to retain supplementary investigation rights even if investigation and prosecution are separated, and to place the Investigation Office under the Ministry of Justice,” adding, “In that case, the prosecution loses nothing in practice.”
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“The Question Might Sting.”.

• This is what Go Seong-guk (Go Seong-guk TV operator) reportedly said to Yang Hyang-ja (People Power Party Supreme Council Member).
• Yang Hyang-ja joined the Supreme Council carrying the handicap of being a non-mainstream pro-Park faction member.
• There was talk that if Yang Hyang-ja was elected, Han Dong-hoon (former People Power Party leader) would return. Criticism was particularly strong on Go Seong-guk TV, prompting her to call and request an appearance.
• Go Seong-guk asked if she was prepared to be stoned and criticized, to which she replied she would endure it and appeared on the show.
• The broadcast was on the 19th, and voting began on the 20th. After the broadcast, calls to drop Yang Hyang-ja reportedly disappeared. This shows the significant influence YouTube has on politics.
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The Fix.

Paid Sick Leave: Can Health Insurance Cope?

• A pilot project is underway, aiming to introduce sick leave benefits by 2027. Sick leave benefits compensate income when unable to work due to injury or illness.
• If unable to work for more than seven days, 60% of income is guaranteed for up to 150 days. The limit is between 48,150 and 66,000 won.
• The JoongAng Ilbo analyzed Japan’s case. Introduced in 1927, it’s nearing a century.
• Japan has a three-day unpaid waiting period and provides up to 1 year and 6 months of coverage. The daily cap is 31,000 yen.
• Sick leave benefits are funded by health insurance. Korea’s insurance premium is 7.1%, while Japan’s is higher at 9.3-10.4%. Shin Sung-sik (JoongAng Ilbo reporter) pointed out, “The biggest concern with introducing sick leave benefits is the budget.” Health insurance is already in deficit, and additional funding could easily exceed 1 trillion won.
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‘Golden Mackerel’ in Abundance.

• By July, mackerel catch reached 76,523 tons. Up 54% from last year, yet medium to large mackerel make up less than 4%. Normally, it’s around 16%.
• As sea temperatures rise, mackerel are shifting habitats. Prices have surged over 40%, earning the nickname ‘golden mackerel.’ Climateflation is in full swing.
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90% of ‘Popular Specialties’ Residents Have Returned.

• Dermatology, ophthalmology, and plastic surgery remain popular. Easy to open a private practice and profitable too.
• The gap in essential medical services is still severe. At one emergency medical center in Gyeonggi, none of the eight emergency medicine residents returned. Seoul National University Hospital’s emergency medicine department also saw a return rate of just 35%.
• In non-metropolitan areas, the return rate for pediatrics is 8%, and for cardiovascular and thoracic surgery, it’s 5%. Lee Hyung-doo (Professor at Yangsan Pusan National University Hospital) remarked, “Even those who complete their training may not stay and could move to Seoul.”
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ICYMI.

Second Consumption Coupon Cut-off: Property Tax Base of 1.2 Billion Won.

• They have begun selecting the bottom 90% income earners.
• Applications are open from the 22nd of this month to the 31st of next month, with 100,000 won distributed per applicant.

‘Myunvidia’ Rivals Nvidia.

• The Wall Street Journal introduced Samyang Foods as ‘Korea’s Myunvidia’ in an article titled “‘K-Pop Demon Hunters’ Help Fire up Noodles Maker’s Shares.” The term combines ramen and Nvidia.
• ‘Fire up’ likely nods to Samyang’s Buldak Bokkeum Myeon. Officially ‘Hot Chicken Flavor Ramen,’ it’s also known as ‘Buldak Ramen’ or ‘Fire Chicken Noodles.’
• The Wall Street Journal noted that Samyang’s ‘Buldak’ brand sparked spicy food challenges and the ‘food hacking’ trend.
• In the past five years, Nvidia rose 1279%, while Samyang Foods surged 1336%.
• Compared to industry leader Nongshim, Samyang’s sales are half, but its operating profit is more than double. Its market cap is 4.5 times that of Nongshim.
• Samyang Foods derives 77% of its revenue from overseas. Nongshim and Ottogi have 26% and 10%, respectively.
• Last year, 1.48 billion Buldak Bokkeum Myeon were sold. That’s 4 million a day, or 50 every second. 1.3 billion were sold abroad.
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10.56 Million Tourists by July.

• Compared to last year, that’s a 16% increase. For July alone, it’s a 23% rise. After the ‘K-pop Demon Hunters’ craze, August likely saw even more growth.
• Seoul ranked first for four consecutive years as ‘Most Loved City by Gen MZ’ by Traveletrends. It also topped TripAdvisor’s ‘Best City for Solo Travel’.
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Jeonse Guarantee Capped at 70% of Home Value.

• If the jeonse guarantee insurance condition is lowered from 90% to 70% of the home price, 4 out of 5 villas will be ineligible. This is according to real estate platform ZipToss’s analysis.
• An analysis of 24,191 jeonse contracts for multiplex and multi-family homes at the end of last year shows that 18,889 would be excluded if the guarantee conditions are tightened.
• There are concerns about an impending jeonse crisis.
• If the market value reflection rate of an apartment with an official price of 500 million won is set at 69%, the market value is approximately 720 million won. If this apartment’s jeonse deposit is 500 million won and there is a loan of 200 million won, it exceeds the jeonse guarantee limit, making it ineligible for the guarantee.

Rebuilding Eunma Apartment: From 14 to 49 Floors.

• Completed in 1979, this is a prime candidate for redevelopment in Gangnam. The 4,424 units will expand to 5,893, including 1,090 public housing units.
• In 2015, a 50-floor plan was proposed but was scrapped due to a 35-floor height limit. In 2023, Oh Se-hoon (Seoul Mayor) lifted the height restriction, opening a new chapter in the Gangnam invincibility myth.
• Predictions suggest that an 84㎡ apartment, currently priced at 2.7 billion won, could soar to 5 billion won post-redevelopment.
• 703 units will be available for general sale. The sale price is 80 million won per 3.3㎡, making an 84㎡ unit about 2.7 billion won. Winning a unit could mean a profit of over 2 billion won.
• Construction could start as early as 2031.

Carrying a Toilet Around.

• North Korea treats Kim Jong-un’s biometric data as classified. They collect cigarette butts, wipe fingerprints, and even prevent waste from leaking. At hotels, they erase traces like hair and saliva. The prevailing view is that this is to avoid exposing health information.
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Kim Jong-un’s Car Number: 7271953.

• July 27, 1953, marks the signing of the Korean War Armistice Agreement. It’s called Victory Day, symbolizing triumph over the U.S.
• There was a time when Kim Il-sung’s birthday was used as a license plate number, but Kim Jong-un changed it. Some interpret this as a sign of defiance against the U.S.

The Government Gets It Free, For Just a Year.

• Microsoft will supply its AI assistant Copilot to the U.S. government for free for 12 months. They’ve signed an agreement with the General Services Administration.
• Google offers Gemini at $0.47 per year. Practically free.
• OpenAI’s ChatGPT and Anthropic’s Claude are also available for $1 per year. It’s an attempt to capture the government market.
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Charging Women for Towels Is Discriminatory.

• There’s a bathhouse charging female customers 500 won per towel.
• The Human Rights Commission noted, “Applying unfavorable conditions to an entire gender without statistical or empirical evidence raises concerns of gender-based stereotyping,” adding, “Issues like towel loss or extra usage can be addressed by strengthening the return system or charging individually for additional use.”
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35% of Shoe Repair Shops Closed in 9 Years.

• Near Seoul City Hall, a shoe repair shop earns about 450,000 won a month. In the 1980s, it reportedly exceeded 3 million won monthly.
• In Seoul alone, there were 1,117 shops in 2016, but as of this year, it’s down to 725.
• Fewer people wear shoes. Many pair sneakers or trainers with suits, and the fast fashion culture of easy use and discard has spread.
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Six Months into Trump’s Second Term, 1.2 Million Migrant Workers Vanish.

• Pew Research Center’s analysis. Whether it’s voluntary return, evasion of deportation, or forced repatriation, one thing is clear: the numbers are dwindling. Immigrants make up 20% of the U.S. labor market. 43% of caregivers are immigrants. The U.S. has relied on immigrants for at least 50% of new jobs. Observations suggest labor shortages in farms and construction firms are becoming serious.
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Worth Reading.

This Is Not Investment.

• “It’s blatant imperial economic exploitation. The term ‘tribute’ is fitting.”
• While many say the U.S. tariff negotiations were relatively successful, Na Won-jun (Professor at Kyungpook National University) disagrees.
• Na criticizes, “The Lee Jae-myung administration has ensnared itself in the trap of an economic alliance, becoming a pawn in the U.S.’s strategic game, accepting America’s feudal exploitation.”
• Factories will leave, domestic production will decrease, but are there measures to protect workers? The government has allocated only 2.1 trillion won for trade issue responses.
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Lee Chang-yong’s Justified Meddling.

• In response to complaints about why the Bank of Korea is concerned with housing prices, Kang Jin-kyu (Korea Economic Daily journalist) countered, “It’s hard to call it meddling.”
• Housing prices are key variables for price stability and financial stability.
• The perceived housing cost in the Seoul metropolitan area, as calculated by the Bank of Korea, has risen by about 70-80% compared to 2013. If housing costs are reflected in inflation, the rate could be much more severe than what Statistics Korea reports.
• Household debt is at a dangerous level, and expectations for rising house prices are high. Kang Jin-kyu pointed out, “It’s time to hasten additional measures.”
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Seed Theory and Tilling Theory.

• “To harvest in the fall, shouldn’t we at least borrow to sow seeds?” This is Lee Jae-myung’s seed theory. It argues for expansionary fiscal policy to keep the fields from lying fallow. Seo Kyung-ho (JoongAng Ilbo Editorial Writer) pointed out three issues. First, foreigners hold a quarter of Korea’s national debt. While it’s good they buy, it leaves us vulnerable to external shocks like a strong dollar. Second, there’s no plan for the trend of declining tax revenue. The forecast that national tax revenue will rise from 390 trillion won next year to 457 trillion won by 2029 seems overly optimistic and needs reconsideration. Third, we’re avoiding difficult paths. Tax exemptions and reductions have increased, and credit card income deductions remain untouched. Despite claims of spending restructuring, it increased by 3 trillion won. Seo Kyung-ho noted, “To sow seeds, you must till the field first.” Though it’s a repeated refrain that the Commercial Act amendment and Yellow Envelope Act hinder businesses, the point that expansionary fiscal policy alone is insufficient deserves attention.
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Special Court for Rebellion: Too Much of a Good Thing.

• Criticism from conservative media was abundant, but even Kyunghyang Shinmun joined in.
• In an editorial, Kyunghyang Shinmun noted, “It’s true that a significant portion of the public doubts whether the judiciary fully grasps the gravity of the situation,” yet pointed out, “The special court for rebellion cannot avoid immediate constitutional disputes.”
• The argument is that “even if the special court delivers verdicts that align with public expectations and adhere to law and principles, some in society may challenge the court’s composition for its unconstitutionality and partisanship, leading to increased dissent.” The keyword is procedural legitimacy.
• Even Chosun Ilbo, in its editorial, criticizes, “It can only be seen as an attempt to pressure the judiciary to deliver verdicts that suit their preferences.”
• Kyunghyang Shinmun emphasized, “Judging this exceptional situation within the framework of ordinary order itself symbolically demonstrates that the December 12th and 3rd rebellion is a grave anti-state, anti-social crime against the current order.”
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So, What About Ji Gui-yeon?

• Lee Chung-jae (former editor-in-chief of Hankook Ilbo) pointed out, “The Court Administration Office argues that establishing a special tribunal infringes on judicial authority, but before that, self-regulation measures like handling Ji Gui-yeon (Seoul Central District Court judge) should come first.”
• Ji Gui-yeon, under suspicion of receiving hospitality at a room salon, is currently handling the Yoon Seok-yeol insurrection case while being reported to the Corruption Investigation Office. The Supreme Court blames the Corruption Investigation Office, which in turn is waiting for the Supreme Court’s audit results. Meanwhile, Ji Gui-yeon paused the trial to go on vacation.
• Lee Chung-jae remarked, “It’s not unreasonable to see why there’s a call for a special tribunal.”
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