Gyeongju Could Yield Tariff Agreement.

• Kim Jeong-gwan (Minister of Trade, Industry and Energy) stated, “There were significant disagreements on the foreign exchange market portion, but substantial consensus has formed.”
• The cash investment ratio of $350 billion remains unresolved.

What Matters Now.

Accelerating Chae Sang-byeong Special Prosecution Seeks Arrest Warrants for Lee Jong-seop, Kim Gye-hwan, and Others.

• The special prosecution for Chae Sang-byeong, once criticized for lack of progress, is gaining momentum.
• It has requested arrest warrants for suspects allegedly involved in obstructing the investigation: Lee Jong-seop (former Defense Minister), Park Jin-hee (former Defense Ministry Military Aide), Kim Dong-hyuk (former head of the Defense Ministry’s Inspection Unit), Yoo Jae-eun (former Defense Ministry Legal Affairs Officer), and Kim Gye-hwan (former Marine Corps Commander).
• The prosecution concluded, “Senior officials—including the President, aides, and Defense Ministry personnel—systematically interfered with the Marine Corps investigation team leader’s legitimate efforts to determine the cause of death of the deceased Marine, exerting undue pressure.”
• The Korea JoongAng Daily predicted, “This could cut both ways.” If warrants are issued, the probe gains traction—but mass rejections would deal a heavy blow.
• Related Link.

Park Sung-woong: The Link Between Lee Jong-ho and Lim Seong-geun.

• Park Sung-woong (actor) stated, “Lim Seong-geun (former Marine Corps division commander) joined a drinking session I had with Lee Jong-ho (former Black Pearl Investment CEO).” This occurred in August or September 2022.
• The two had previously claimed, “We never even met,” but this now appears untrue.
• There is a possibility that Lim Seong-geun lobbied Kim Keon-hee (former first lady) for a pardon through Lee Jong-ho. Lee Jong-ho is a key accomplice in the Deutsche Motors stock manipulation case involving Kim Keon-hee.
• The critical task is uncovering how Yoon Suk-yeol (then-president) reacted furiously and reversed the investigation’s findings.
• Related Link.

Takahashi Sanae Set to Become Japan’s Next Prime Minister Today.

• The Liberal Democratic Party and Japan Restoration Party have ultimately formed a coalition government and agreed to push Takahashi Sanae (LDP President) as prime minister. With 196 and 35 seats respectively, they fall two short of a majority, but the collapse of opposition unity makes her election highly likely.
• She has visited Yasukuni Shrine annually but this year substituted the ritual with a monetary offering.
• Dubbed “Female Abe,” she emphasizes monetary easing and fiscal expansion. The term “Sanaenomics” is already circulating.
• The Nikkei index has shattered its all-time high.

58 Arrest Warrants Sought Among 68 Repatriated from Cambodia.

• Some suspects claim they were forced into crime through confinement, assault, and coercion—but intent remains key.
• If evidence shows they recruited other Koreans into criminal activity, avoiding punishment will be difficult.
• The gap between Cambodian departures and Korean arrivals grew from 2,662 in 2023 to 3,248 last year.
• Critics suggest the number of unreported victims may be even higher.

Kim Byung-joo: “No Rescue Political Stunt.”.

• “Whether victims or perpetrators, one thing is clear: they are citizens we must protect,” he said.
• Kim Byung-joo (Democratic Party lawmaker) faced backlash after it was revealed three Koreans he “rescued” from Cambodia were romance scam suspects.
• A local expatriate criticized, “Even after witnessing a structure where crime breeds crime, he frames it as a rescue and promotes himself as a hero.” They added, “I was horrified to see photos of the ‘rescued’ individuals covered in tattoos.”
• Related Link.

Deep Dive.

South Korea and Taiwan Cross GDP Per Capita Paths.

• IMF analysis. South Korea at $35,962, Taiwan at $37,827. South Korea fell from 34th to 37th place, while Taiwan rose from 38th to 35th.
• South Korea’s GDP growth rate this year: 0.9%. Taiwan’s: 3.7%.
• At this rate, South Korea will surpass $40,000 in 2028. Taiwan will exceed $50,000 in 2030. Projections show South Korea at $44,262 in 2030, widening the gap.
• Related Link.

Doubling the Number of Supreme Court Justices.

• The Democratic Party’s judicial reform bill includes this provision.
• The number of Supreme Court justices will increase from 14 to 26—4 each year over three years.
• The number of divisions will expand from 3 to 6, but instead of a full bench, they will form 2 combined panels.
• The Constitutional Court and Special Tribunal for Insurrection are excluded.
• Baek Hye-ryeon (Democratic Party lawmaker) stated, “This will enhance case specialization, diversity, and thorough deliberation while robustly guaranteeing the right to a fair trial.”

“A Constitutional Court for Judicial Review Is Also Needed.”.

• Though the Democratic Party’s judicial reform committee said public deliberation was necessary, the party leader’s resolve is strong.
• Jeong Cheong-rae (Democratic Party leader) remarked, “Taehansan may be high, but it is still a mountain under the sky,” adding, “No matter how lofty the courts may seem, they are institutions under the Constitution.”
• If judicial review is introduced, final rulings from the Supreme Court could be appealed to the Constitutional Court. The immediate possibility of Lee Jae-myung’s trial being subject to such a review exists.
• Song Eun-seok (People Power Party floor leader) criticized it as “the ultimate safety net to resolve Lee Jae-myung’s judicial risks as a defendant in five trials.”
• Related Link.

22 of 26 Supreme Court Justices to Be Appointed Under Lee Jae-myung’s Government.

• Critics warn of the judiciary becoming subservient to political power.
• The Chosun Ilbo headlined, “Resembling Venezuela,” while Cha Jin-a (Korea University professor) noted, “This will intensify the Supreme Court’s political bias.”
• Related Link.

Start by Increasing Lower-Court Judges.

• Civil first-instance cases exceeding five years have increased 4.4-fold, criminal first-instance cases 5.7-fold.
• Song Seok-jun (People Power Party lawmaker) pointed out during the Supreme Court’s National Assembly audit, “Discussions on judicial reform are moving backward while first-instance courts remain under-resourced.” “True judicial reform,” he argued, “must ensure the vulnerable receive fair and swift trials.”
• The Seoul Shinmun noted, “Even with expansion, it is logical to prioritize increasing judges in first- and second-instance courts where trial delays are most severe.”
• Related Link.

Up to Fivefold Damages for Illegal and False Information Distribution.

• The Democratic Party is drafting a law to eradicate fabricated information.
• First, it applies to those whose profession involves disseminating facts or opinions to the public.
• Second, if they knowingly distribute illegal or fabricated information.
• Third, if the distribution is intended to harm others.
• In addition to up to fivefold damages, the Korea Communications Commission may impose fines of up to 1 billion won for malicious or repeated dissemination.
• Media outlets and YouTubers facing lawsuits may request an interim ruling to confirm whether the case constitutes a strategic lawsuit against public participation.
• The Korean Media Labor Union protested, “The bill includes provisions that will weaken the media’s watchdog role.”
• Media groups requested exemptions for politicians, high-ranking officials, and conglomerates, but their demands were not reflected.
• No Jong-myeon (Democratic Party lawmaker) said, “Blanket exemptions for politicians and conglomerates could raise constitutional concerns.”
• Oh Byung-il (representative of the Progressive Network Center) pointed out, “While false information can be addressed through fact-checking, determining whether information is fabricated or assessing intent and purpose raises questions about who will make these judgments and by what standards.”
• In an editorial, JoongAng Ilbo criticized, “Weakening the media’s essential role of criticizing and checking power under the guise of reform shakes the very foundations of democracy.”
• Related Link.
• Related Link.
• Related Link.

1.7 Million Won Bar Tab for Judge Ji, No Disciplinary Action Possible.

• Yesterday, during the Seoul Central District Court’s audit, Choi Jin-soo (Supreme Court Ethics Inspector) stated, “If unrelated to official duties, amounts under 1 million won per person make disciplinary grounds difficult to establish.”
• Ji Gwi-yeon (Seoul Central District Court judge) presided over the Yoon Suk-yeol rebellion case. Facing pressure to resign after photos of hostess bar entertainment surfaced. The Supreme Court’s audit concluded, “He left after one or two drinks at a second gathering, with no female staff present,” but this relies solely on Ji’s account.
• When Kim Yong-min (Democratic Party lawmaker) asked, “How can 1.7 million won just be for drinks?” the response was, “We cannot confirm the cost per bottle.”
• Related Link.

Another Take.

“Oh Se-hoon Lit the Match on Housing Prices.”.

• Responsibility disputes erupted during the Seoul Metropolitan Government’s National Assembly audit.
• Oh Se-hoon (Seoul mayor) lifted land transaction permit zones in Gangnam’s three districts this February, only to reimpose them a month later—this time including Yongsan-gu.
• Jeong Joon-ho (Democratic Party lawmaker) criticized, “Rashly lifting land transaction permit zones during a price surge only stoked speculative demand.”
• Kim Jeong-jae (People Power Party lawmaker) retorted, “The October 15 measures are like telling a morbidly obese patient to starve themselves—it’s a ‘Seoul expulsion order’ blocking ordinary citizens from homeownership.”
• Oh Se-hoon argued, “The supply cliff stems from Park Won-soon’s (former Seoul mayor) delays in designating redevelopment and reconstruction zones.”
• Related Link.

10.15 Measures Were Kim Yong-beom’s Work.

• Kim Yong-beom (Presidential Office Policy Director) played a central role.
• Chosun Ilbo noted, “It differs from Lee Jae-myung (President)’s usual thinking.” Lee had critically assessed the Moon Jae-in administration’s demand-suppression measures.
• Chosun Ilbo assessed, “If housing prices aren’t stabilized before next year’s local elections, reshuffling Kim Yong-beom, Kim Yoon-deok (Minister of Land, Infrastructure and Transport), and others will be unavoidable.”
• The Korea Daily analyzed, “Increases in property and comprehensive real estate taxes are likely to be postponed until next year.” They could introduce public price realization—which doesn’t require National Assembly approval—first.

Conservatives Strike Back, Kicking Away the Housing Ladder.

• Jang Dong-hyeok (People Power Party leader) called it “real estate terrorism,” adding, “All that’s left is a tax bomb.” His remarks suggest he’s bracing for tax hikes that haven’t even been proposed yet. He also warned, “The Moon Jae-in administration’s downfall began with a tax bomb.”
• The Democratic Party’s announcement of a housing market stabilization task force and focus on expanding supply reflects awareness of public backlash.

U.S. Ambassador Still Missing, Acting Replacement Swapped.

• The U.S. ambassador to South Korea has been vacant for 10 months. Multiple candidates were vetted and interviewed, but reportedly none met expectations.
• With Trump’s attendance at the Gyeongju APEC summit approaching at month’s end, Kevin Kim (former State Department official) was appointed acting ambassador. The delay in appointing a permanent ambassador is unusual, but so is replacing the acting envoy. It could be interpreted as Trump paying unusually close attention to South Korea.
• Speculation has also emerged that Kevin Kim might be preparing for a meeting with Kim Jong-un (North Korean leader).
• In an interview with Chosun Ilbo, Kevin Kim stated, “The idea of ‘Korea passing’ in Trump’s North Korea policy is impossible.”
• Related Link.

Putin-Trump Tunnel and the Dream of a Connected World.

• Kirill Dmitriev (CEO of Russia’s National Wealth Fund) publicly proposed the idea to Elon Musk (Tesla CEO).
• “Imagine a Putin-Trump tunnel connecting the U.S., Russia, and Afro-Eurasia,” he said, adding, “A 70-mile undersea tunnel could bring integration.”
• Afro-Eurasia refers to the combined landmass of Asia, Africa, and Europe.
• It would be twice the length of the Eurotunnel (50 km) connecting the UK and France. Traditional methods would cost over $65 billion, but calculations suggest Elon Musk’s Boring Company could reduce it to $8 billion.
• Trump called it “an interesting idea.”
• If built, the tunnel would enable a 10,000 km journey from New York to Moscow to London. Completion is expected to take around 15 years.
• Related Link.

Why Elon Musk Is Unimpressed by the Putin-Trump Tunnel.

• The Boring Company has yet to prove its technical capabilities.
• It has raised over $795 million but has no track record beyond a 2.7km demonstration section at the Las Vegas CES venue—a tunnel that reduces a 25-minute walk to a 2-minute drive.
• Fortune assessed, “Elon’s idea was brilliant, just never executed.” Critics also note the tunnel’s narrow width—barely accommodating a single car—makes it impractical for high-speed rail integration.
• Related Link.

The Fix.

Hate Rallies Near Schools Force Route Changes.

• Anti-Chinese protests in Daerim-dong have disrupted students at nearby schools.
• The Seoul Metropolitan Office of Education will secure alternative routes to avoid encounters during commuting hours.
• Go Min-jeong (Democratic Party lawmaker) plans to propose an amendment to the Educational Environment Protection Act, restricting hate rallies within 50 meters of schools.

ICYMI.

Prince Group’s $140M Transactions with Korean Banks.

• The conglomerate is suspected of being linked to Cambodian criminal organizations.
• Five banks belatedly froze Prince Group’s assets.

Record Third-Quarter Exports Amid Trade Wars.

• $185 billion.
• Exports to the U.S. fell, but shipments to Europe, ASEAN, and India increased.

The Age of the Machine Customer.

• “Should we go for spicy Korean food today?” An AI recommended three restaurants. The key point is that the first customer is not a human but an AI.
• Gartner forecasts that the number of machine customers will reach 8 billion by 2030. This is an era where human customers cannot be reached without first persuading machine customers.
• We are moving from the era of search engine optimization (SEO) to that of AI optimization (GEO). Kim Kyung-dal (Korea University professor) advised, “Content needs to be refined—such as including specific experiences like ‘mild flavors even a five-year-old can enjoy’ rather than simplistic reviews stating ‘delicious.’”
• Three questions remain.
• First, who is responsible for AI errors?
• Second, how can algorithmic gatekeeping be prevented?
• Third, can AI biases be filtered out?
• Fourth, how can the AI divide be addressed?
• Kim Kyung-dal emphasized, “Genuine reputation is the most powerful strategy that no AI can ignore.” Ultimately, the most human approach will be the most AI-friendly strategy.
• Related Link.

Worth Reading.

Self-Praise’s Boomerang.

• Kim Eun-jung (Chosun Ilbo Washington correspondent) pointed out, “Even if an agreement is overwhelmingly favorable to us, it’s correct to frame it as ’51 to 49′ when a counterpart exists.” The message is clear: “We must lower the temperature, manage public expectations to prevent them from soaring too high, and strategize more carefully about communication.”
• Statements for domestic consumption—such as “the talks were so successful no agreement was needed” or “the U.S. changed its stance after we reached a deal”—have changed nothing.
• The advice: “’Nothing is agreed until everything is agreed’ is Diplomacy 101,” and “frustrating as it may seem, that’s the language of diplomacy.”
• Related Link.

No Shortcuts in Justice.

• Kyunghyang Shinmun warned in an editorial, “This could be seen as an attempt by the regime to control the judiciary.” The message was clear: “Speed is not the solution. We must approach judicial reform with a long-term vision, ensuring thorough deliberation and broad public discourse.”
• The Hankyoreh was less critical, stopping short at emphasizing, “If the reform bill has shortcomings, they should be addressed through public debate.”
• Chosun Ilbo asserted, “Everything is tied to the Lee Jae-myung trial.”
• JoongAng Ilbo added, “This could be perceived not as ‘judicial reform’ but as ‘judicial retaliation.’”
• Seoul Shinmun criticized, “Pushing this through will inevitably raise suspicions of political retaliation against the Supreme Court or a reckless bill aimed at eliminating Lee Jae-myung’s legal risks.”
• Jeong Cheong-rae claimed, “Opposing reform means considering political interests over impartial rulings.”
• The Hankook Ilbo editorial cautioned, “If the government continues to dismiss constructive criticism and proposals for better governance, it will not be free from accusations of ‘attempting to control the judiciary.’”
• Related Link.
• Related Link.
• Related Link.
• Related Link.
• Related Link.
• Related Link.

Rescuing Koreans, What Comes Next?

• Choi Sung-yong (social researcher) emphasized, “Everything is connected.” The issue is not just Cambodia—it’s global inequality, unregulated platform industries, youth unemployment, and economic crises worldwide, all intertwined.
• “It’s not simply about rescuing Koreans but how to build a regional order of human security in the long term. To track scam crimes and check the powers involved, the growth of local civil society and democracy is essential. Everything is connected. A strategy for shared Asian prosperity and peace is needed.”
• Related Link.

Who Sent Them to Cambodia?

• Kim Hee-won (Korea Ilbo News Standards Director) emphasized, “The president must send a message about moving toward a society that respects labor.” This is because “the hope of Kospi 5000 cannot be the solution.”
• “The fundamental solution is to create a world that respects labor and properly compensates it. It is to narrow the job gap and create a job market where people don’t have to cling only to regular positions at large corporations. Before the money moves from real estate to stocks, we must increase labor income distribution and reduce income inequality.”
• “Fair wages are not a cost but the foundation for productivity and stimulating consumption. A partnership between companies and unions will be the driving force for growth. Without recognizing the value of labor, solving youth issues or achieving economic growth is impossible. These are the lessons from the Cambodia incident.”
• Related Link.