A 25% Tariff Could Cost Korea 9 Trillion Won Annually.

• The Korea Institute for International Economic Policy’s analysis. If mutual tariffs rise to 25%, GDP would shrink by 0.3–0.4%, causing losses of 7–9 trillion won—potentially less damaging than the $350 billion investment the U.S. demands.
• Last year, Korea’s real GDP was 2,292 trillion won.
• Yeo Han-koo (Chief Trade Negotiator) continues negotiations in the U.S. with Jamie S. Gourley (U.S. Trade Representative).
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Breaking the Table Might Be Necessary.

• Cheong Young-woo (former Blue House National Security Advisor) proposed three strategies.
• First, the key is not the investment scale but the investing entity. It should be Korean companies, not the Korean government. Japan’s model has the government as the lead, while the EU’s model has companies. Korea should follow the EU model.
• Second, demand an expansion of professional visa quotas.
• Third, if interests are unbalanced, there’s no option but to walk away.
• Cheong Young-woo noted, “If negotiations collapse, the U.S. must abandon its dream of rebuilding its shipbuilding industry,” adding, “There are almost no precedents of core national interests being resolved amicably without friction.”
• Related Link.

Japan’s U.S. Auto Tariff Drops to 15% Today.

• Korea’s remains at 25%.
• Hyundai and Kia saw operating profits fall by 1.6142 trillion won in Q2 due to U.S. tariffs.

Kia More Expensive Than Toyota.

• Kia Sportage Hybrid retails at $30,290 in the U.S.
• Toyota RAV4 retails at $30,285.
• But with 25% and 15% tariffs applied, prices reverse to $37,863 and $37,778 respectively.
• Hyundai and Kia’s stock prices fell 3.8% and 4.0% yesterday—partly due to this disparity.

70,000 Samsung and 33,000 SK Hynix Dragged the Market Up.

• The KOSPI index is rewriting records daily. It closed at 3,407.31 yesterday.
• A 10-day consecutive rise.
• Samsung Electronics and SK Hynix surged 9.8% and 23.0%, respectively.
• Some brokerages have set a target price of up to 110,000 won for Samsung Electronics.
• The decision to maintain the current threshold for stock transfer tax major shareholders helped drive investment sentiment.

What Matters Now.

Is the Chief Justice Above the President?

• This morning’s top newspapers focused on Cho Hee-dae (Chief Justice).
• Jeong Cheong-rae (Democratic Party Leader) said it. Alongside Choo Mi-ae (Democratic Party Lawmaker, Judiciary Committee Chair), they are strongly demanding Cho Hee-dae’s resignation.
• Kang Yu-jeong (Presidential Office Spokesperson) stated, “We fundamentally agree on reviewing the plausibility and reasoning.”
• While Chief Justices have resigned mid-term before, none have stepped down under external pressure on the judiciary.
• The courts are seething. A senior judge interviewed by Kyunghyang Shinmun said, “I’ve never seen such overt attempts to shake the judiciary.”
• In an editorial, Kyunghyang Shinmun noted, “While calling to restore constitutional order, we must not make the mistake of undermining its very foundation.”
• A Democratic Party lawmaker interviewed by The Hankyoreh said, “We must prepare for a situation where the Lee Jae-myung (President) trial—previously dormant—is repeatedly mentioned and Cho Hee-dae’s political influence grows.”
• In its editorial, Chosun Ilbo remarked, “It’s astonishing how those who claim to resist dictatorship exhibit dictatorial thinking.”
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“Sedition Zombies Have Dug In.”.

• Park Sung-jun (Democratic Party Lawmaker) said this. Judicial reform was also a key issue during the National Assembly’s questioning of the government. “Sedition zombies have infiltrated the prosecution, police, military, and judiciary,” he claimed, “and must be weeded out.”
• Shin Jeong-hoon (Democratic Party Lawmaker) argued, “When sedition didn’t work, the Supreme Court itself attempted to ‘kill’ Lee Jae-myung.”
• Park Joo-min (Democratic Party Lawmaker) appeared on *Kim Eo-ju’s News Factory* and stated, “We’re proposing a special one-time distribution process,” adding, “It’s incomprehensible that the National Assembly’s involvement in this process is framed as an infringement on judicial authority.”
• Related Link.

Judge Ji’s Replacement Adds Uncertainty.

• The Democratic Party is likely to take decisive action only after observing whether Judge Ji Gwi-yeon (Seoul Central District Court) is replaced. He is the judge overseeing the Yoon Suk-yeol sedition case.
• A Democratic Party lawmaker interviewed by The Korea Herald said, “Replacing Judge Ji would be the minimum gesture of goodwill,” adding, “If he isn’t replaced, we’ll have no choice but to push for a dedicated sedition trial bench.”
• Related Link.

Deliberation Over Speed.

• Kyunghyang Shinmun’s newsletter “Dot Line” noted, “Excessive haste and one-way traffic could fuel suspicions that this reform is merely a tool to pressure the judiciary.”
• Moon Hyung-bae (former Acting Chief Justice of the Constitutional Court) remarked, “Even if the direction is correct, both general principles and specific details must be thoroughly discussed. True reform is one that remains sustainable even after a change in administration.”
• Related Link.

2016 Fast-Track ‘Crowbar’ Case: Verdict After Six Years.

• Na Kyung-won (People Power Party lawmaker, then Liberty Korea Party lawmaker) was referred to trial for allegedly occupying the National Assembly and obstructing proceedings during the revision of the Public Official Election Act.
• Democratic Party lawmakers and officials attempted to break down the meeting room door, and Na Kyung-won picked up a ‘crowbar (pry bar)’—a moment that became symbolic of the National Assembly’s regression.
• Prosecutors requested a two-year prison sentence during the final hearing. Na Kyung-won claimed, “It was an exercise of the right to resist.” “It was a routine political act to prevent the Democratic Party’s unilateral handling of proceedings,” she argued.
• Prosecutors also requested prison sentences of one year and six months for Hwang Kyo-ahn (then Liberty Korea Party leader) and ten months for Song Eun-seok (People Power Party floor leader, then Liberty Korea Party lawmaker), respectively.
• The verdict will be announced on November 20th.
• Related Link.

Deep Dive.

Yoon Skips Court Again.

• Yoon has not appeared in court even once since his detention on July 10. Seoul Detention Center also claims forced attendance is difficult.
• Judge Ji Gwi-yeon (Seoul Central District Court) is handling three cases: Yoon Suk-yeol’s, former Police Chief Jung Ji-ho’s, and former Defense Minister Kim Yong-hyun’s.
• The special prosecution requested consolidating the cases and holding trials four times a week.
• Judge Ji stated, “We plan to conclude the hearings by December,” aiming to merge and finalize the proceedings as a single case.
• Related Link.

Over Three Fatal Industrial Accidents: 5% Profit Penalty.

• Corporations with three or more annual fatal accidents will face severe financial penalties. Construction firms with repeated major disasters will be requested for license revocation.
• Foreign workers’ deaths will result in a three-year ban on hiring foreign labor.
• Kim Young-hoon (Minister of Labor) stated, “We will make this year the start of shedding the long-standing stigma of being a ‘kingdom of industrial accidents.’”

Attempted Cover-Up in Coast Guard Officer’s Death Case.

• Suspicions have emerged that the Coast Guard attempted to conceal the truth regarding the death of Lee Jae-seok (Sergeant), who died while rescuing an elderly man stranded in tidal flats. The two-person team principle was not followed, and despite requests for additional personnel, the response was too slow.
• After Lee Jae-myung instructed, “An external agency should investigate,” Kim Yong-jin (Commissioner General of the Coast Guard) expressed his intention to resign, stating, “I feel a heavy sense of responsibility.”
• Related Link.

Another Take.

Far-Right International Solidarity.

• Britain saw the largest-ever anti-immigration rally.
• Since the killing of Charlie Kirk (American political activist), international far-right solidarity has strengthened. Politico assessed it as “the global convergence of Trump-style populism.” Memorial rallies for Kirk were also held in London, Berlin, Madrid, and Rome.
• According to Politico, Kirk has become a modern-day Joan of Arc for conservatives.
• The far-right could become a global epidemic—a “nightmare struggling to awaken,” as James Joyce (novelist) once said.
• Kim Gwang-ho (The Kyunghyang Shinmun columnist) noted, “It feels like revisiting the ominous shadow of Mussolini’s ‘Fascist International’ spiraling into a military alliance.”
• Related Link.
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Senior Money: 4,307 Trillion Won.

• Households headed by those in their 60s or older have an average asset value of 520 million won.
• Analysis shows financial assets account for less than 1% of household assets for those aged 65 or older—most are tied up in real estate.
• Hidden assets of 1.24 million dementia patients, dubbed “dementia money,” amount to 154 trillion won. Projections suggest this could reach 488 trillion won by 2050.

The Fix.

It’s Not That They Don’t Apply—They Can’t.

• “They don’t give it to you just because you didn’t apply, and that’s why people die without support,” said Lee Jae-myung.
• No Dae-myung (Research Fellow at the Korea Institute for Health and Social Affairs) pointed out, “The principle of welfare application is a relic of an era when the government struggled to accurately track citizens’ income and family relationships in real time.”
• “Why does the government investigate income and assets to collect taxes and social insurance premiums without requiring personal information consent, yet demand extensive documentation and consent for welfare benefits? Why are welfare systems for the poor so complicated and stringent?”
• No Dae-myung argues that updating the median income standard is more urgent than automatic payments.
• The median income standard determines eligibility for vulnerable groups: livelihood benefits target those below 32%, medical benefits below 40%, and housing benefits below 48%.
• 20% of livelihood benefit-eligible households—310,000 people—fall into a coverage gap. Many crisis households are excluded not because they don’t apply, but because they don’t qualify. The priority, he says, is identifying and addressing these gaps before expanding automatic payments.
• Related Link.

Japan: 30% Aged 65+.

• 36.19 million of Japan’s 123.2 million people are aged 65 or older.
• A society is classified as super-aged when over 20% of the population is 65+. Japan became the world’s first super-aged society in 2005. Projections suggest the figure will approach 38% by 2050.
• South Korea’s aging is faster: it surpassed 20% last year. By 2045, it will catch up with Japan, and by 2050, four out of ten citizens will be 65 or older.

Capital Gains Tax Relief? Expand Wealth Taxation Instead.

• Lee Jae-myung’s government ultimately decided to maintain the 5 billion won threshold for major shareholders’ capital gains tax. It cannot escape criticism for abandoning its principles under pressure from the stock market.
• The Hankyoreh lamented in an editorial, “It is deeply regrettable that no one in the government or ruling party has shown commitment to taxing capital gains.”
• The Hankyoreh added, “While salaried workers silently pay income taxes, it is unwise for the government to reverse policies simply because vocal stock investors protest.”
• The Korea Daily criticized, “This early wavering already undermines the fiscal expansion strategy based on strengthening tax revenue.” Park Ki-baek (Professor at the University of Seoul) forecasted, “It seems tax increases on stock-related income will now be difficult.”
• Related Link.
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ICYMI.

First Cabinet Completed After 104 Days.

• Average age: 60.8 years. Female representation: 20%.
• Among the 20 members, seven are Seoul National University graduates.

What Happens at the ‘Wegovy Holy Site’?

• It’s called a “holy site” because they prescribe it without questions or hesitation.
• Wegovy, an obesity treatment, is supposed to be prescribed to patients with a BMI of 30 or higher, or 27+ with comorbidities like diabetes or hypertension. The dosage starts at 0.25mg and increases every four weeks—a method proven effective with minimal side effects.
• At the “holy site” visited by a Kyunghyang Shinmun reporter, these guidelines were ignored.
• A 2.4mg injection costs 439,000 won. While selling medication directly is illegal, hospitals can administer injections. This clinic sold the drug without administering it. A nurse said, “Just watch YouTube to see how to inject it.”

Convenience Store Gimbap Sales Surge 23-Fold Post-K-Pop Concert.

• CU saw a 185% increase in overseas payment transactions from July to August. Gimbap sales jumped 231%.
• Nongshim, maker of K-Pop concert snacks like Shrimp Crackers, sold out 1,000 pre-order sets in 1 minute and 40 seconds. Nongshim Holdings’ stock price also surged 30% in a single day.

Pope Criticizes the ‘Hextrillionaire’ Elite.

• “I heard yesterday that Elon Musk (Tesla CEO) is about to become the world’s first ‘hextrillionaire.’ Sixty years ago, CEOs earned 4–6 times more than the working class. Now, that ratio has reached 600 times.”
• These were the words of Leo XIV (Pope) in an interview with Crux.
• When asked, “How can polarization be resolved?” he emphasized the “restoration of communal values.” Leo XIV countered, “If we lose our sense of the value of human life, family, and society, what else could possibly matter?”
• Recent controversy erupted after Tesla’s board proposed a $1 trillion compensation package for Musk, contingent on boosting the company’s market cap from $1 trillion to $8.5 trillion. The proposal still awaits shareholder approval.
• Related Link.

“A Position Opened Up,” Kim Keon-hee’s Call.

• These were the words of an associate close to the Yoon Suk-yeol couple, shared with Park Chan-soo (senior reporter at Hankyoreh).
• Kim Keon-hee reportedly called last year and said, “There’s a position open—how much is the corporate card limit? You know many journalists, so use that money to buy them meals…”
• Though he claims to have politely declined in surprise, the anecdote offers a glimpse into the extent of the “selling of official posts for profit” during Yoon Suk-yeol’s three-year tenure.
• Related Link.

Worth Reading.

No Time for Talk of Separation of Powers.

• Some argue the Rebellion Special Tribunal violates the separation of powers, but Hong Ki-bin (Director of the Global Political Economy Institute) calls this idle chatter.
• Legislative Branch: One-third of National Assembly members under martial law obstructed the vote to lift martial law outside the Assembly. Many of these same lawmakers later swarmed Yoon Suk-yeol’s private residence in Hannam-dong to block his arrest.
• Executive Branch: Han Duck-soo (then-Prime Minister) and Choi Sang-mok (then-Deputy Prime Minister) repeatedly delayed appointing Constitutional Court justices under the pretext of needing bipartisan agreement. Both exercised veto power against the special prosecutor bill passed by the Assembly.
• Judicial Branch: Ji Gwi-yeon (Seoul Central District Court judge) released the rebellion’s ringleader, while Shim Woo-jeong (then-Prosecutor General) abandoned the appeal. Cho Hee-dae (Chief Justice of the Supreme Court) overturned Lee Jae-myung’s case one month before the presidential election.
• Hong Ki-bin noted, “Yoon Suk-yeol’s coup attempt lasted mere hours, but for six months afterward, it was precisely those who used the separation of powers as a shield that systematically paralyzed South Korea’s constitutional order.”
• “Just months ago, soldiers with guns and armored vehicles stormed the National Assembly; piles of body bags lay ready to hold the dead; the Presidential Security Service and police nearly exchanged fire; and pro-Yoon rioters broke into courts, smashed buildings, and attempted to murder judges. We still live in the South Korea of 2025. As a citizen, I believe Lee Jae-myung is right: regarding the settlement of rebellion, within the bounds of ‘proportionality,’ the ‘elected power’ must take precedence—a principle consistent with the constitutional spirit.”
• Related Link.

The Honeymoon Is Over.

• Lee Ki-soo (editorial director of Kyunghyang Shinmun) assessed, “In Lee Jae-myung’s 100-day press conference, I saw optimistic patience and passion about political efficacy and history.”
• “One wonders if this is the composure of someone who has narrowly survived three near-deaths—physical (terror), judicial (targeted investigation), and political (arrest motion).”
• “I’m often surprised by his political approach of waiting for the right moment amid multiple voices, and his instinctive ‘black-cat-white-cat’ pragmatism.”
• Lee Jae-myung once said, “I want to compete in doing well.”
• Lee Ki-soo advised that now the honeymoon is over, Lee must shift from lightning-fast moves to slow, steady progress: “He must go like an ox with the eyes of a tiger—steadfast, substantive, and patient.”
• Related Link.

‘Gong-byeok-no’ Is the Keyword.

• There are two questions that define America’s identity.
• First, Who is us? Who are we?
• Under the Biden administration, a company paying taxes in the U.S. was considered an American company. The Trump administration saw Anglo-Saxon+Christian identity as the core of being American.
• From this perspective, a Georgia factory run by Korean workers is not an American company.
• That is why the U.S. fears foreign companies (恐·gong), builds walls (壁·byeok), and rages (怒·no).
• Kim Seung-ryeon (editorial director of Dong-A Ilbo) advised that the hearts of Rust Belt white workers must be won.
• Emphasize that companies paying taxes to the U.S. government are American companies.
• “Only by embracing ‘gong-byeok-no’ will a path emerge,” he said.
• Related Link.

‘The Future That Arrived Early’ Poses Challenges.

• Some countries allow autonomous vehicles, yet South Korea still criminalizes car-sharing services. Even Tada collapsed, let alone Uber.
• Kim Kyung-dal (Professor at Korea University) noted, “Attempts to block technological progress ultimately fail, but unprepared adoption incurs massive social costs.”
• Kim Kyung-dal made three proposals:
• First, like New York City’s debt relief for taxi drivers, South Korea should establish industry-transition or retraining programs.
• Second, a consultative body involving stakeholders must be formed to discuss phased implementation.
• Third, the government must act as a mediator. Principles must be set to prevent a handful of corporations from monopolizing the benefits of technological innovation—only then can societal consensus be achieved.
• Related Link.