5% Cash Share, 10-Year Installment Payment Terms.

• The South Korean government’s final proposed condition.
• The red line is capping annual cash investment at $15 billion (21 trillion won).
• Still substantial, but far less burdensome than a $350 billion upfront payment.
• Chosun Ilbo reported more specifically that “discussions are underway on an 8-year installment plan of $25 billion annually.”
• The proposal splits the $350 billion into $150 billion in credit guarantees and $200 billion in equity.
• Stories also surface that Lee Jae-myung (President) grew furious after hearing Kim Yong-beom’s (Policy Director of the Presidential Office) previous report.
• Speculation persists that the U.S. is still making onerous demands.
• After meeting Howard Lutnick (U.S. Secretary of Commerce), Kim Yong-beom stated, “Some progress has been made.”
• Related Link.
• Related Link.

“$350 Billion Demand, Unrealistic.”.

• The Wall Street Journal’s assessment. “Even if spread over three years, it’s 6.5% of South Korea’s GDP—is that feasible?”
• “There’s no precedent for a sitting president unilaterally investing hundreds of billions of dollars,” it also criticized.
• Related Link.

What Matters Now.

Bought With a Leasehold, Despite Claims of No “Gap Investment.”.

• Lee Sang-kyung (Vice Minister of Land, Infrastructure and Transport) may have lied.
• Though he denied it was a “gap investment,” he held 2.8 billion won in cash as of July last year.
• Lee purchased a 3.35 billion won apartment with a 1.48 billion won leasehold. The ministry explained, “The original apartment wasn’t selling well, so a leasehold contract was signed,” but the property in question was in an active market.
• Lee claimed, “It’s different from ‘gap investment,’ where excessive loans are used to buy property.” He insisted he bought the Baekhyeon-dong apartment without loans.
• After announcing the October 15 policy, Lee appeared on a YouTube channel, sparking controversy by saying, “You can buy a house once prices stabilize.”
• Kwon Dae-jung (Hansung University professor) criticized, “The ministry itself engaged in leasehold transactions while telling others not to—resentment is inevitable,” adding, “Policy credibility has hit rock bottom.”
• Related Link.
• Related Link.

A Masterclass in Buying and Selling.

• Experts commenting on Lee Sang-kyung’s trading pattern. “He used every possible method available in the market,” they observed.
• The Korea Economic Daily criticized, “He bought property using every trick in the book while making it impossible for ordinary citizens to do anything.”
• Lee purchased a 84㎡ Pangyo Valley Hoban Summit apartment in Godeung-dong in August 2017 for 650 million won, sold it in June 2025 for 1.15 billion won, and moved in as a tenant with a deposit estimated at 680 million won.
• The “owner-tenant” scheme—where multi-homeowners sell to gap investors to resolve their own lease issues—was blocked by the October 15 measures.
• Lee’s wife bought a 117㎡ Pangyo Prugio Grandble apartment in Baekhyeon-dong in July 2024 for 3.35 billion won with a 1.48 billion won deposit. The property has since risen to 4.2 billion won.
• During the second purchase, she reduced taxes by using the temporary two-homeowner method. Though she gained nearly 600 million won in profit, she likely paid no transfer or acquisition taxes—a tactic now impossible under the October 15 measures.
• A “smart single-property” strategy combining owner-tenant and gap investment. Legally sound, but hard to defend against accusations of hypocrisy.
• Related Link.
• Related Link.

Illegal Subcontracting Blamed for Government Data Fire.

• Recovery rate at the National Information Resources Service remains at 64%.
• Police suggest assigning battery relocation work to an inexperienced subcontractor may have caused the incident. The primary contractor was prohibited from subcontracting electrical work.
• According to police, the actual subcontractor’s representative was absent, and another company’s employee may have impersonated a new hire to lead the project.
• Battery relocation requires discharge below 30%, but levels remained above 80%.

Takahashi Sanae’s First-Day Defense Spending Hike.

• “It’s a matter of urgency,” they insisted, rushing the announcement. “While Japan’s security rests on U.S.-Japan cooperation, I want to emphasize strengthening Japan’s own defense capabilities,” she stated—a line Donald Trump (U.S. President) would likely applaud.
• She stressed, “We will not abandon the vision of a stronger Japan.” Though Japan had maintained since 1976 the principle of capping defense spending at 1% of GNP (Gross National Product), Takahashi Sanae (Japanese Prime Minister) declared it would rise to over 2%.

Takahashi-nomics in Motion.

• Having positioned herself as Shinzo Abe’s (former Japanese Prime Minister) successor, she pushes for expansionary fiscal policy.
• “While the government bears ultimate responsibility for macroeconomic policy,” she instructed, “carry out strategic fiscal spending with a sense of responsible, proactive administration.”
• The weak yen and high inflation are critical factors.

Kim Kun-hee’s Shoes as Evidence.

• “Lost,” they claimed—then changed their story. The Graf necklace, Chanel shoes, and bags were submitted to the special prosecutor. The shoes showed signs of wear.
• Jeon Seong-bae (Geonjin Beop-sa)’s lawyer argued, “He was merely a messenger; no prior solicitation or brokerage occurred, so the crime of receiving bribes through mediation does not apply.” The special prosecutor views Jeon Seong-bae as Kim Kun-hee’s accomplice.
• Related Link.

Kim Kun-hee’s Royal Pretend Play: Even Sat on Gyeongbokgung’s Throne.

• Geunjeongjeon Hall in Gyeongbokgung Palace is off-limits to the public, and no former president has ever sat on the throne. This was stated by Jeong Yong-seok (President of the National Museum Cultural Foundation) during a National Assembly audit.
• A specific testimony also emerged that Lee Bae-yong (Chair of the National Education Committee) encouraged her to sit. Lee Bae-yong is under suspicion of receiving the education committee chair position in exchange for giving Kim Kun-hee a 10-don gold turtle. She is the one wearing pink in the photo.
• Related Link.
• Related Link.

Deep Dive.

Unbearably Lightweight Conspiracy Politics.

• Kim Min-soo (Supreme Council Member of the People Power Party) claimed, “Chinese capital is behind the Kospi rally.” “Stock prices should be falling but are rising,” he argued, “because Chinese capital is illegally entering and acquiring Korean companies.”
• Jeon Han-gil (CEO of Jeon Han-gil TV) also introduced the claim that “Lee Jae-myung (President) has hidden trillions in slush funds in Singapore.”
• Seo Young-kyo (Democratic Party lawmaker) asserted, “Cho Hee-dae (Chief Justice of the Supreme Court) met with Yoon Suk-yeol (then-president) and said, ‘If the Lee Jae-myung case comes up, we’ll wrap it up decisively before the election,’” but failed to provide evidence for the so-called “Lee Jae-myung elimination operation.”
• He also claimed, “After Yoon Suk-yeol’s impeachment, Jeong Sang-myung (former prosecutor general), Han Duck-soo (then-prime minister), Kim Chung-sik (business partner of Yoon’s mother-in-law), and Cho Hee-dae met.”
• Choi Hyoung-shin (Independent lawmaker) claimed, “Kim Chung-sik was the one who recommended Cho Hee-dae to Yoon Suk-yeol.” He also asserted, “Na Kyung-won’s (People Power Party lawmaker) older sister introduced Kim Chung-sik to a new mistress,” though Na Kyung-won has no sister.
• The Kyunghyang Shinmun described it as “politics of the mouth’s darkness.”
• Park Sang-byung (political commentator) analyzed, “Conspiracy theories mixing a little fact with enormous lies are popular with hardcore supporters who enjoy punishing disliked figures.” Cho Jin-man (Duksung Women’s University professor) emphasized, “Both ruling and opposition parties should feel shared responsibility and work to restore politics.”
• Related Link.
• Related Link.
• Related Link.
• Related Link.
• Related Link.
• Related Link.
• Related Link.

Park Sung-jae’s Lie.

• Park Sung-jae (then Minister of Justice) returned to the Ministry of Justice immediately after the declaration of martial law and issued three directives.
• First, he ordered the dispatch of prosecutors to the martial law command.
• Second, he instructed the Immigration Headquarters to prepare an outbound travel ban team.
• Third, he directed the Correctional Headquarters to secure detention space.
• Protests and objections erupted during the Ministry of Justice meeting.
• Seung Jae-hyun (Director of Human Rights at the Ministry of Justice) stated, “Proclamation No. 1 violates the Constitution,” adding, “Many reporters will ask about it tomorrow,” and “Legal review is absolutely necessary.”
• Jeong Hong-sik (Director of International Legal Affairs at the Ministry of Justice) also proposed, “Let’s examine the illegality of the martial law.”
• Ryu Hyuk (then Ministry of Justice inspector general) stormed out of the room.
• Park Sung-jae now claims, “I was unaware of the martial law’s unconstitutionality and illegality.” The court dismissed the arrest warrant, stating, “There is room for debate.”

Banks Lent 38 Trillion Won to Loan Sharking, Profited 2 Trillion Won.

• Banks provided seed money to the loan shark industry. Critics call it “interest rate arbitrage.”
• This is the total amount lent by first- and second-tier financial institutions to loan companies from 2020 to August this year.
• While not illegal, such loans were traditionally avoided. There was at least a guideline that lending to loan sharks was inappropriate if it didn’t expand loans to ordinary citizens.
• Seo Ji-yong (Professor at Sangmyung University) proposed, “The government should use policy finance to provide partial guarantees for low-credit borrowers.”
• “Instead of relying on loan sharks, we should pave the way for middle-interest loans from second-tier financial institutions,” he argued.
• Related Link.

Another Take.

Strategic Blockade Lawsuits Against Media Reports: Can They Be Stopped?

• The Democratic Party’s push for punitive damages has sparked fierce debate.
• The controversy centers on an amendment to the Information and Communications Network Act, which would allow claims for up to five times compensation if media reports are deemed incorrect.
• While the Democratic Party proposed a safeguard—letting media request interim rulings if lawsuits aim to suppress critical reporting—many argue the measure lacks practicality.
• The Kyunghyang Shinmun noted, “This could shift the burden of proof, forcing media to demonstrate they acted without malice against arbitrary allegations.”
• Related Link.

“Are Judges All Gods?”.

• These are the words of Rep. Jung Chung-rae (Democratic Party leader).
• “There are those who blindly oppose judicial reviews,” he said, adding, “We will not miss the golden opportunity and will definitely complete the reform within the year.”
• The Hankyoreh analyzed, “Though politically burdensome, since the presidential office sympathizes and the support base approves, the party leader is taking the lead to break through.”
• Calls are also emerging to introduce a crime of judicial distortion—punishing judges or prosecutors who fabricate evidence or distort facts.
• One Democratic Party lawmaker said, “Legislation will not be easy.”
• Related Link.

“Proud of Biased Reporting?”.

• These are the words of Choi Min-hee (Democratic Party lawmaker, Science and Technology Committee chairperson).
• “Is MBC’s pro-People Power Party coverage ‘press freedom’? How many times has the People Power Party openly condemned MBC’s reporting? Did they cower and stay silent then? If they can’t even criticize the People Power Party’s loudmouth antics and finger-pointing, how dare they invoke ‘press freedom’?”
• The Korean Journalists Association issued a statement, calling it “an attitude devoid of even minimal respect for the press.”
• Related Link.

“Does Giving Prosecutors What They Want End It?”.

• “It seems they aim to pressure us until they get what they want, even if it shuts down the company. Daily life has collapsed.”
• These were the words of Lee Jun-ho (then head of Kakao Entertainment’s Investment Strategy Division).
• As prosecutors investigated Kim Beom-su (Kakao Future Initiative Center head) for alleged stock price manipulation, suspicions arose that they hinted at a potential deal. The court, acquitting Kim, noted, “Intensively investigating unrelated cases to pressure suspects or associates can distort the truth”—a critique rooted in such practices.
• “Separate investigations” refer to prosecutorial tactics where authorities pursue charges unrelated to the main case to pressure targets, often to extract results in the primary probe.
• Lee Jun-ho initially denied the charges but changed his testimony after a prosecutorial raid. The court deemed him sufficiently motivated to falsify statements and excluded his testimony as evidence.
• Jeong Seong-ho (Minister of Justice) posted on Facebook, “We will thoroughly establish institutional safeguards to prevent the infringement of citizens’ basic rights through prosecutors’ abusive separate investigations.”
• Related Link.

The Fix.

Same-Sex Spouses Now Recognized in Census.

• Households can now list same-sex partners as “spouse” or “unmarried cohabitant.” In the 2020 survey, selecting a same-sex partner as spouse was blocked entirely.
• Though not reflected in official statistics nor legally binding, this marks the first time LGBTQ+ identities are recorded in national data.

Selling 15,000 Won Worth Means 4,500 Won in Fees.

• Baedal Minjok raised fees by 2.9% over three years—combining delivery and commission charges.
• In a People’s Solidarity for Participatory Democracy survey, a Gyeonggi Province snack shop paid 7.8% commission, 2.4% payment processing fees, 16.2% delivery fees, totaling 26.4%. This rose 4.3 percentage points from 22.1% in 2023—around 160,000 won monthly.
• Under the new “co-prosperity” pricing, delivery fees weigh heavier for orders under 20,000 won. Selling the minimum 15,000 won order means fees exceed 4,500 won.
• People’s Solidarity noted, “When including ads and promotions, owners’ actual fee burden is far greater.”
• Related Link.

One in Three Non-Regular Workers Is Over 60.

• The number of non-regular workers reached a record high of 8.57 million. Of these, 3.04 million are aged 60 or older—36% of the total.
• Regular workers earn 3.9 million won monthly, while non-regular workers earn 2.09 million won.
• Women account for 57% of non-regular workers.

Shingles Patients Surge to 3.56 Million Over Six Years.

• Last year alone: 760,000 patients, 95.1 billion won in treatment costs.
• Calls grow for state-funded shingles vaccines. According to the Korean Academy of Family Medicine, adding the vaccine to the national immunization program would yield 1.5 times the medical cost benefits.
• The Korea Disease Control and Prevention Agency estimates costs for those aged 65+ at 557.6–1,965.6 billion won.
• Related Link.

ICYMI.

Amazon’s Plan to Cut 600,000 Jobs.

• It has begun restructuring its workforce, aiming to reduce half of its 1.2 million employees by 2030.
• The plan includes automating 75% of logistics and warehouse operations.
• By 2027, 160,000 workers will be replaced by robots in the first phase.
• A leaked document revealed a linguistic strategy to use softened terms like “advanced technology” and “cobot (collaborative robot)” instead of “AI” or “automation.”
• Related Link.

Lee Jae-myung Gang Ties Claim: Jang Young-ha Gets One Year in Prison, Two Years’ Probation.

• He also published a book titled “Goodbye, Criminal” criticizing Lee Jae-myung.
• Jang Young-ha (attorney)’s appeal trial for violating the Public Official Election Act was overturned from a first-instance acquittal to a guilty verdict.
• The court ruled, “The defendant publicized false facts while tolerating the possibility that they might be untrue,” adding, “The impact of this crime on the presidential election cannot be ignored.”
• Jang claimed that Lee Jae-myung received 2 billion won from an international mafia group in exchange for business favors during his tenure as Seongnam mayor—but provided no evidence. The photo of a cash bundle was fabricated.

Why Has Gold Prices Plummeted 13%?

• Per don (3.75g), prices have fallen from 850,000 won to 740,000 won.
• On international markets, they rose to $4,381 per ounce before dropping to $4,109.
• The collapse of gold—once the ultimate safe-haven asset—is the inverse of what drove its rise.
• First, fiscal deficits in France and the US; second, the US federal shutdown; third, US-China trade tensions fueled the rally.
• Now, first, the shutdown is likely ending; second, trade tensions are easing; third, the dollar has regained strength.
• Prices surge with uncertainty—and fall when it resolves.

Government to Discard 18 Million Masks from Strategic Reserve.

• Expiration dates are approaching. Of the 37.28 million masks in reserve, 50% have less than six months until expiration. The remaining half has at most 18 months left.
• 127 million masks were purchased in 2022 alone, but usage declined as the COVID-19 pandemic ended.
• Even free donations are not feasible.

Worth Reading.

Why Are China and Russia Stockpiling Gold?

• They hold 2,302 and 2,333 tons respectively. The recent surge in gold prices reflects a preference for safe assets, but also stems from the aggressive gold accumulation by Beijing and Moscow.
• Jeong Ui-gil (Senior Reporter, Hankyoreh) analyzed, “China and Russia are attempting to establish an international payment system to replace the dollar, challenging its hegemony.” While Trump’s push for stablecoins is an effort to retain dollar dominance, markets interpret it as a sign of the dollar’s weakening credibility.
• Gold prices rose for a decade after the collapse of the Bretton Woods system in the 1970s. The recent fluctuations—both surges and crashes—are seen as inextricably linked to the fate of the dollar’s global supremacy.
• Related Link.

Tear Down Gangnam’s 8th School District and Build Apartments Instead.

• “Housing prices would fall and educational polarization would ease—two birds with one stone,” argues Oh Chang-min (The Kyunghyang Shinmun columnist).
• Kyunggi High School in Samseong-dong sits on a 30,000-pyeong site. The idea is that demolishing a few schools like Seoul High or Kyunggi Girls’ High could free up space for tens of thousands of apartments.
• Why not go further and build apartments in Yangjae-dong’s Citizens’ Forest or Bangi-dong’s Olympic Park?
• Gangnam housing prices have surged 16-fold over 30 years. “Without drastic measures, the Gangnam myth won’t shatter,” goes the reasoning.
• Related Link.

Knowing and Using China.

• It’s about understanding and leveraging China. Lee Ho-seung (former Chief Policy Officer of the Presidential Office) suggested, “It’s crucial not to provoke each other’s public sentiment,” and emphasized the need to “agree on separating politics from economics.”
• Once a cornerstone of South Korea’s supply chain, China has now reached a stage where it can complete supply chains without South Korea.
• “Even in a fragmented world, someone must play the hub role. The essence of international relations is making the other party dependent on you.” It’s time for a new strategy of “using” China.
• Related Link.

It Can’t Be Helped.

• Shin Seung-geun (Hankyoreh News Director) advised, “The government and ruling party should take more criticism.”
• The Roh Moo-hyun and Moon Jae-in administrations failed to prove their competence through results. Shin added, “This time, I desperately hope they can write a success story.”
• Related Link.

Feedback.

Why Direct Hiring of Cleaning Workers Is Difficult.

• Let’s explain why local governments struggle to directly employ cleaning workers (environmental sanitation workers).
• First, local governments dislike direct hiring. If they hire workers directly, they must provide pensions and benefits until retirement age, like civil servants. This creates long-term debt and rising costs. Additionally, governments must purchase cleaning vehicles and equipment with their own funds—a significant financial burden.
• Second, local governments must compensate outsourcing contractors. The costs are substantial. Contractors invest their own capital in vehicles, equipment, parking lots, worker rest areas, and offices. These expenses are high. Moreover, since vehicles and equipment become useless without government contracts (they’re nearly impossible to repurpose), contractors risk everything on these agreements. Legally, they cannot easily surrender licenses or close down, forcing governments to buy out contractors at market rates and fully transition to direct employment—a process requiring enormous funds.
• Third, local politicians often have ties to cleaning contractors. In one municipality I know, when the mayor changed from the People Power Party to the Democratic Party, the city indiscriminately issued cleaning contracts. Recipients were campaign supporters, leading to legal disputes with existing contractors. Since mayors and county heads can grant permits arbitrarily to acquaintances, relatives, or allies, direct employment becomes even harder.
• So, how can direct employment be achieved?
• First, mayors and county heads must lose their unchecked power to issue cleaning contracts. Laws should set clear eligibility criteria, and permits must follow them strictly. Currently, local leaders hold excessive authority, making it hard to resist the temptation to profit from political power.
• Second, laws must cap the maximum contract duration for cleaning contractors—for example, 15 or 20 years, with no renewals. Without this, contractors monopolize local cleaning services indefinitely, using profits to lobby politicians and maintain influence. If governments cannot afford immediate buyouts, setting expiration dates forces contractors to eventually exit. After their licenses expire, local governments can directly hire workers. Contractors, anticipating closure, will gradually reduce investments, enabling a smoother transition over time.
• However, direct employment isn’t necessarily better for workers. Wages might even decrease. Under direct employment, pay scales align with civil servant standards, which could lower current earnings. Cleaning workers now earn roughly 60–80 million won annually, varying by region. If converted to civil servant status, their pay would adjust to match other public-sector roles—potentially reducing their salaries.