Will Lee Sang-kyung’s Exit Be the End of It?

• Lee Sang-kyung (Vice Minister of Land, Infrastructure and Transport), who once said, “Save money and buy a home when prices drop,” resigned amid controversy over speculative gap investments.
• In a Gallup Korea poll last Friday, both Lee Jae-myung (President) and the Democratic Party’s approval ratings rose simultaneously. The survey was conducted before Lee Sang-kyung’s resignation—suggesting his issue did not significantly sway public opinion.
• 44% responded that real estate policies were inappropriate, while 37% deemed them appropriate.
• Related Link.

Jang Dong-hyeok’s Six Apartment Controversy.

• The Democratic Party’s counterattack has begun. Jang Dong-hyeok (People Power Party leader) faced backlash over owning four apartments—six when including his spouse.
• He owns a 35-pyeong apartment (480 million KRW) in Seoul’s Guro District, two apartments (28.7 million KRW and 98 million KRW) in his constituency of Boryeong, South Chungcheong, and an officetel (175 million KRW) near the National Assembly.
• Jang claimed, “Combined, they’re worth around 850 million KRW,” adding, “I’m willing to exchange my homes and land for Kim Byung-ki’s (Democratic Party floor leader) ‘rose apartment’ if needed.”
• Park Soo-hyun (Democratic Party spokesperson) retorted, “Are these actual transaction prices or official assessed values? If he cited the latter, he’ll face a severe moral crisis.”
• Related Link.
• Related Link.

PPP Apartment Survey Reveals Stark Disparities.

• The PPP’s real estate holdings in Gangnam’s three districts were overwhelmingly higher than the Democratic Party’s.
• The PPP owned 56 units, compared to the Democratic Party’s 32.
• Reported values also skewed sharply: 81.4 billion KRW for the PPP versus 33.5 billion KRW for the Democratic Party.
• Of course, the higher number of PPP lawmakers in Gangnam’s three districts must be factored in.

What Matters Now.

Neither Trump Nor Kim Warm to Engagement.

• Donald Trump (U.S. President) said, “If Kim Jong-un (North Korean State Affairs Commission Chairman) contacts me, I will meet.” It may be a remark conscious of criticism for appearing impatient.
• North Korea is silent—not so much hesitating over whether to meet as outright ignoring or dismissing the overture.
• Kim Jong-un once said last month, “If the U.S. abandons its obsession with denuclearization and truly seeks peaceful coexistence, there is no reason not to face the U.S.” This implies recognition of North Korea as a nuclear state is a precondition for talks.
• Trump remarked, “I consider them a sort of nuclear power,” adding, “If they say they should be recognized as a nuclear power, I’d say they have a lot of nuclear weapons.”
• Coincidentally, Choe Son-hui (North Korean Foreign Minister) is reportedly visiting Russia and Belarus at this juncture.
• Related Link.
• Related Link.

Has North Korea’s Denuclearization Become a Lost Cause?

• Chosun Ilbo analyzed, “If Trump recognizes North Korea as a nuclear state, denuclearization will be a lost cause.”
• A worst-case scenario would be eliminating only North Korea’s long-range missiles while leaving short-range ones intact.
• The international community already assesses that North Korea possesses around 50 nuclear warheads.
• Related Link.

APEC’s $5.4 Billion Economic Impact.

• It’s a super week. The APEC summit will convene in Gyeongju for three days starting May 29.
• 16 heads of state and 1,700 global business leaders will attend.
• The 7.4 trillion KRW ($5.4 billion) economic impact is Deloitte’s analysis. It also projects 22,000 new jobs.
• With lodging scarce, a cruise ship will be anchored in Pohang’s Yeongil Bay to operate as a floating hotel.

Five Key APEC Watchpoints.

• Korea-U.S. investment negotiations are the top agenda item. Even if a deal is reached, failure to reduce the amount could trigger massive backlash. The total sum matters, but the critical factor is the direct investment ratio. Long-term concerns about industrial hollowing-out are also significant.
• If U.S.-China negotiations fail to conclude, the global economy will face shockwaves.
• Japan is likely to align more closely with the U.S. Korea’s stance remains ambiguously positioned.
• A North Korea-U.S. summit remains unlikely but still a live card. If Trump leaves APEC without tangible achievements, he may offer Kim Jong-un a stronger proposal. He might attempt to frame a small deal as a major breakthrough. Sidelining South Korea is another variable. The Korea Ilbo noted, “If a North Korea-U.S. summit doesn’t lead to inter-Korean dialogue, it might be better not to hold it at all.”
• Restoring Korea-China relations is another key point. Maintaining a balanced diplomatic approach amid U.S.-China tensions is crucial.

“Very Close to a Deal” Says U.S., “Cannot Confirm” Says Korea.

• There is a significant temperature gap.
• The U.S. insists on $25 billion annually over eight years in direct investment.
• Korea maintains that over $15 billion per year is unfeasible, viewing direct investment scale at around 5%.
• Woo Sung-rak (National Security Director) stated, “We cannot even confirm whether a deal will be reached at this summit.”
• Kim Yang-hee (Professor at Daegu University) criticized, “This is not investment but tribute,” and “not alliance modernization but alliance hollowing.” She advised, “If all else fails, the only option is not a bad deal but no deal.”
• Related Link.
• Related Link.

U.S. and China Likely to Retreat One Step Each.

• China is highly likely to postpone its rare earth export licensing system for one year. If Beijing steps back, Washington has no reason not to withdraw its additional 100% tariffs.
• Treasury Secretary Scott Bessent stated, “A framework for the summit has been established.”

Labor Day Restored from May 1, 2025.

• The official name of the holiday will change from “Workers’ Day” to “Labor Day.”
• It marks a restoration after 62 years.
• The bill passed the National Assembly with 209 votes in favor, 29 against, and 16 abstentions.

Labor Director Enters National Pension Service Board.

• The National Pension Service Management Corporation board has expanded from nine to ten members.
• The number of labor-recommended directors will increase from two to three.

Special Prosecutor’s Investigator Had Drinks with Key Figure in Stock Manipulation Case.

• Han Moon-hyuk (Seoul District Prosecutors’ Office Senior Prosecutor) faced belated controversy over meeting Lee Jong-ho (former CEO of Black Pearl Investment) in July 2017. Someone sent a photo of the two together to the special prosecutor’s office.
• Han was investigating the Deutsche Motors stock manipulation case at the time, and Lee was a central figure. Han claimed, “Lee was not a suspect then, and I was unaware of his connection to Deutsche Motors.”
• Many argue that even if he was unaware, Han’s participation in the special investigation itself is problematic.
• The special prosecutor’s office excluded Han from duties and initiated an internal audit. Park No-soo (former Seoul Central District Court Senior Judge) and Kim Kyung-ho (former Changwon District Court Senior Judge) were appointed as replacement special prosecutors.

Deep Dive.

Missing Gwansanbong Belt Goes to Permanent Special Prosecutor.

• Internal prosecutors’ inspection concluded, “There was no order to conceal or intent to do so.”
• Jeong Seong-ho (Minister of Justice) posted on Facebook, “We have reached the judgment that the prosecution’s self-assessment alone cannot restore public trust.”
• This is the first time a permanent special prosecutor has been launched by the justice minister’s decision since the system’s introduction in 2014. It is also the first special prosecutor targeting the prosecution itself.
• The Coupang non-prosecution external pressure allegation will also go to the permanent special prosecutor.

Taiwan’s Retrocession Day, Celebrated by Beijing.

• October 25, 1945, marks the day Taiwan separated from Japanese rule.
• Taiwan itself observes it quietly, but Beijing has decided to commemorate it as an official anniversary starting this year.
• By emphasizing Taiwan’s “independence” from Japan, Beijing reinforces its “One China” narrative.
• Some analysts view this as a new front in the historical war of narratives.

Rates Frozen, But Lee Chang-yong Sends a Signal.

• There are two reasons for freezing rates: first, prices are stable, and second, real estate remains overheated.
• Yet the tone has subtly shifted. “We are in a long-term rate-cut phase,” and “household debt risks have diminished.” Though all assets are rising enough to spark talk of an “everything rally,” he drew a line: “It’s not yet time to worry about bubbles.”
• This leaves room for future rate cuts. Hence assessments that this was a dovish freeze, not a hawkish one.
• Lee Chang-yong (Bank of Korea Governor) believes rates should not trigger real estate overheating—but also doubts rates can control property prices. The message: no deliberate fueling, but no rate-based suppression either.
• A striking emphasis: “Painful as it may be, the jeonse system must end.” “If transitioning to monthly rents causes pain, policy balance is needed—like tax benefits for landlords.”
• More important than growth rates is the gap between growth and potential growth—the output gap. For years, actual growth lagged far behind potential. Rates will stay low until recovery is assured.
• Related Link.

“9 Million Won Deposited,” What Did Choi Min-hee’s Message Mean?

• Caught on camera during the plenary session.
• According to the Seoul Newspaper, the names of four corporate executives and three terrestrial broadcasters appeared. Where was the deposit sent from, and where to?
• Choi Min-hee (Democratic Party lawmaker) explained, “I confirmed today’s congratulatory money list” and said, “I decided to immediately return congratulatory funds received from standing committee-related institutions or companies and those exceeding customary amounts, and passed on the list and amounts.”
• How was the account number verified? Why did she ask aides to relay the total sum? Questions remain unanswered.
• Related Link.

Another Take.

Chey Tae-won’s Four Post-APEC Challenges.

• Chey Tae-won (SK Group Chairman) assessed, “The US-China conflict is a hegemony war where they’ll keep fighting until one side wins.” The US cannot relinquish its top global power status, while China believes time is on its side. The keyword is AI—a world where investments are discussed in the trillions of dollars.
• Chey emphasized, “The issue is growth.” Without revising economic models in ways never experienced before, new growth engines cannot be found. The solution? Below are key excerpts from his standout interview on SamPro TV.
• First, the soft money industry must grow. This is an era where margins matter more than revenue scale. Manufacturing profit margins hover around 3%, but soft products can reach 50%.
• Second, growth investment is essential. Stepwise regulations stifle growth. Dividing resources equally (N-division) won’t work. Growing companies must be supported.
• Third, a mega sandbox is needed. Testbeds spanning entire cities—not just corporate units—are necessary. Daegu could become an AI R&D hub. Autonomous vehicles require city-scale testing.
• Fourth, around 5 million high-skilled overseas talents should be brought in. Only then can the domestic market expand. “We need to attract ‘high-level brains’ who contribute to domestic demand through higher incomes, not just manual labor.”
• Proposals include designating ‘megacities’ where English is an official language, attracting corporate R&D labs, and slashing regulations. Instead of permanent residency, a ‘temporary green card’ could be issued for employment duration in the region.
• Why do Korean talents peak during student years but stagnate as professionals? Chey analyzed, “Seniority-based compensation systems make it hard to reward top performers exceptionally.” He stressed, “Labor market flexibility must increase. Outstanding talents should be converted to ‘contract-based roles’ with higher compensation and autonomy.”
• Chey said, “The urgency of limited time drove me to speak out actively.”
• Related Link.

2027: Beijing’s Taiwan Invasion Theory.

• In 2021, Philip Davidson (US Indo-Pacific Commander) projected, “A Chinese invasion of Taiwan within six years is highly likely.” There were also reports by William Burns (CIA Director) that “Xi Jinping (Chinese President) ordered preparations for a Taiwan invasion to be completed by 2027.”
• Park In-kuk (former UN Ambassador) stressed that the US must answer two questions:
• First, if crises occur in Taiwan and the Korean Peninsula, the scope of USFK flexibility must remain extremely limited.
• Second, concrete plans for exercising nuclear deterrence against North Korea must be established.
• Related Link.

Income Inequality Narrows, Wealth Inequality Widens.

• The National Assembly Research Service’s multidimensional inequality study results.
• The multidimensional inequality index rose from 0.176 in 2011 to 0.190 in 2023.
• In 2011, income (38.9%) was the primary driver of multidimensional inequality, but by 2023, wealth (35.8%) had become more significant.
• Lee Kwan-hoo (Director of the Research Service) stated, “Since the financial crisis, multidimensional inequalities in wealth, education, health, and other areas have deepened,” adding, “Beyond income redistribution, the government must address inequality as a core policy goal across real estate, taxation, finance, welfare, and all other policy domains.”
• Related Link.
• Related Link.

Rainy-Day Delivery Fees: Algorithms That Raise Risks.

• July–August and December–January are peak delivery seasons. Riders can earn over 30% more during these periods.
• Kim Seung-seop (Seoul National University Professor) analyzed, “Weather-based surge incentives were the biggest factor threatening workers’ health.”
• While platforms send messages advising against riding, workers often interpret them as alerts to earn more. Many responded that they wait out the weather and return to work only after confirming higher fees.

Why Property Taxes Fail to Cool Korea’s Housing Market.

• Policy credibility is weak. Exceptions abound.
• The Korea Research Institute for Human Settlements analyzed, “The comprehensive real estate tax has been operated to reduce burdens through per-person tax aggregation, relief for single-household owners, and application of fair market value ratios—deviating from its original purpose.”
• OECD data shows that when property taxes as a share of GDP rise by 1 percentage point, real housing price growth falls by 1.151 percentage points. When property taxes as a share of total taxes increase by 1 percentage point, prices drop by 0.414 percentage points. Yet in Korea, the impact has been negligible.
• The Korea Institute for International Economic Policy emphasized, “A policy mix of gradually increasing property taxes while lowering transaction taxes is necessary.”
• Related Link.

How Taxes Are Spent Matters More Than Whether They Curb Housing Prices.

• South Korea’s property tax-to-GDP ratio is higher than the OECD average. Lee Jin-soo (Research Fellow at the Land and Liberty Institute) noted, “This reflects a structural issue where real estate prices are excessively high relative to GDP, while overall tax burdens remain low.”
• Effective tax rates must be examined. South Korea’s effective property tax rate is 0.15%, less than half the OECD average of 0.33%.
• Jeong Joon-ho (Professor at Kangwon National University) stated, “It is undesirable for property taxation to be perceived solely as a tool to control housing prices,” adding, “It is crucial to clarify how collected taxes will be used and ensure taxation aligns with its stated purpose.” Jeong emphasized, “The widening asset gap and regional imbalances in South Korea must be considered.”
• In an editorial, Kyunghyang Shinmun warned, “Neglecting asset inequality hinders social cohesion and harms the economy.”
• Related Link.

October Deposits Plunge by 20 Trillion Won.

• Funds likely shifted to stocks and real estate.
• An average of 877.9 billion won flowed out daily from the five major banks. As of October 26, demand deposits at these banks totaled 650 trillion won.
• Investor deposit balances in securities accounts neared 81 trillion won as of October 20. Overdraft balances also expanded to 39 trillion won as of October 23.
• After the October 15 measures, sales in Mapo and Bundang dropped 19%. Park Won-gap (KB Kookmin Bank Senior Analyst) stated, “For the next 3–6 months, neither sale prices nor jeonse prices will rise easily,” adding, “When the housing market eventually recovers, jeonse market volatility could intensify.”
• Related Link.

The Fix.

Where Are Korea’s 3 Million Sexual Minorities?

• An Ipsos survey put the figure at 6%. With a population of 50 million, that’s around 3 million people. Sexual minorities are everywhere.
• Korea’s 2023 Population and Housing Census now allows respondents to identify same-sex household members as spouses or cohabiting partners.
• Park Han-hee (Attorney at “Hope Lawyers”) assessed, “This census demonstrated that accurately recognizing sexual minority citizens living together, looking at their lives as they are rather than through stigma and stereotypes, and collecting statistics to understand their realities—these are the starting points for equality.”
• Related Link.

50,000 Life-Sustaining Treatment Withdrawals Follow Patient Directives.

• Since 2018, 450,000 cases of withheld or withdrawn life-sustaining treatment have been recorded—50,000 of these followed written patient directives.
• Two physicians must first determine that a patient has entered the terminal phase, defined as irreversible decline with no recovery despite treatment, leading rapidly to death.
• Second, the patient’s own or their family’s wishes must be confirmed. Patient directives are written by individuals; family consent requires either two or more relatives testifying to the patient’s prior wishes or unanimous family agreement.
• As of September this year, 3.07 million people had registered advance directives for life-sustaining treatment.
• Related Link.

No Festival Has Ever Failed.

• At least on paper. Every festival concludes with press releases declaring resounding success.
• According to the Korea Institute of Local Finance, South Korea’s regional festivals grew from 884 in 2019 to 1,170 last year. During the same period, local resident participation rates dropped 9.6 percentage points, while external visitors fell 1.6 percentage points.
• Park Eun-kyung (Reporter at Hankook Ilbo) observed, “It’s time to ask—and answer—what truly constitutes a festival that closes successfully.”
• Related Link.

ICYMI.

150,000 Crowd a City of 130,000: Gimcheon’s Kimbap Festival.

• Gimcheon—short for “Kimbap Heaven”—has hosted a kimbap festival since last year. Last year, 100,000 attended; this year, 150,000.
• Last year, prepared kimbap sold out in three hours, drawing criticism as the “kimbap-less kimbap festival.” Only eight vendors participated then; this year, over 30.
• This year, the 100,000-line queue vanished by 5 p.m. on opening day.
• Critics note three things absent from the festival:
• First, no protocol for local politicians; second, no opening ceremony; third, no price-gouging. Han River Ramen cost 3,500 won, and many praised the organizers for “putting their heart into kimbap.”
• Related Link.

Emotional Lineage of Audition Variety Shows.

• ‘Superstar K’ was the emotionalization of skill. It began with vocal ability, but as seasons progressed, participants’ ‘life narratives’ grew in importance.
• ‘Phantom Singer,’ blending classical and crossover, was the aristocratization of emotion. It elicited refined aesthetic emotion—elegant resonance—over mass tears.
• ‘Sing Again’ was the emotionalization of memory. It drew out the narratives of obscure singers.
• ‘Our Ballad’ attempts a technical quantification of emotion. Park Mi-suk (cultural studies researcher) assessed, “Emotion has become a commodity, tears content, and sincerity a format.” “‘Superstar K’ sold skill, ‘Sing Again’ memory, ‘Phantom Singer’ refinement, and ‘Our Ballad’ measures emotion.”
• “In the ‘Superstar K’ era, songs were sold. Now, what’s sold is emotional impact. Tears are the fuel of storytelling, and programs circulate those tears like currency. (Omitted) What’s needed now isn’t more tears, but the recovery of an ethics of emotion—one that doesn’t consume feeling.”
• Related Link.

30 Million Chinese Workers Who Learned Apple’s Know-How.

• Apple saw Foxconn’s counterfeit iPods and decided their capabilities were sufficient for outsourced production. Today, 90% of Apple products are made in China.
• Foxconn workers have since moved to Huawei, Xiaomi, Alibaba, and others, becoming the driving force behind China’s high-tech rise.
• When Trump restricted Nvidia’s semiconductor exports, China declared it would stop using them. Speculation circulates that Huawei will soon release chips to replace Nvidia. Once Nvidia held 95% market share in China; now it’s 0%.
• Han Woo-deok (Senior Reporter at JoongAng Ilbo) analyzed, “Xi Jinping somehow seems more relaxed.” The phase is one of defiance: laying down rare earth cards and daring, “Try if you dare.”
• Related Link.

30,000 Yogiyo Reviews Vanished.

• 79% of the 40,000 temporarily restricted reviews were permanently deleted.
• The three delivery apps permanently remove reviews if no objection is raised within 30 days after temporarily hiding them at a business’s request and notifying users. Since most users miss the notifications, even legitimate complaints often get swept into malicious review purges. Baedal Minjok and Coupang Eats did not submit data.
• Related Link.

A Louvre Jewel Thief Caught.

• He stole eight pieces of jewelry in seven minutes and fled. The haul was worth 88 million euros.
• Six days after the theft.

Worth Reading.

The Takaichi Era: Three Diplomatic Strategies.

• Japan has transitioned from a Liberal Democratic Party (LDP)-Komeito coalition to an LDP-Japan Innovation Party era. The likelihood of unchecked rightward drift is high.
• The following are proposals by Kim Young-keun (professor at Korea University).
• First, diplomatic scenarios must be multi-layered (redundant). The worst-case scenario is Prime Minister Sanae Takaichi visiting Yasukuni Shrine and forcing historical revisionist statements. Concrete action plans must be drafted assuming the worst.
• Second, diplomatic channels must be diversified. This means preparing for the possibility that official dialogue channels could be blocked.
• Third, the principles of preventive diplomacy to counter Japan’s backsliding must be institutionalized. Clear guidelines and manuals must be established—defining where red lines lie, what level of response is warranted if they’re crossed—and shared across all diplomatic channels.
• Kim emphasized, “It’s time to apply the lessons of K-quarantine to preventing ‘diplomatic disasters.’”
• Related Link.

Securing a Political Majority Coalition Is Imperative.

• In the last presidential election, Lee Jae-myung’s approval rating was 49.4%. Kim Moon-soo (People Power Party candidate) and Lee Joon-seok (Reform Party candidate) received 41.2% and 8.3%, respectively—combining to 49.5%. It was an election fought under the zeitgeist of overcoming internal strife, yet it was not won decisively. The narrative is that “Kim Moon-soo and Lee Joon-seok together surpassed Lee Jae-myung.”
• Kang Byung-han (Kyunghyang Shinmun political editor) noted, “The Lee Jae-myung administration bears the task of maintaining and expanding its political majority coalition, yet the ruling party’s recent behavior feels like a reversal.” His analysis: “It appears to be increasing ‘frontlines’ and ‘enemies’ without justification.”
• “Building a majority coalition is not a principle reserved for elections. To lead public opinion, one must demonstrate corresponding competence. (Omitted) Is the ruling faction truly on the path to overcoming internal strife?”
• Related Link.

Why Is Kim Hyun-ji the Only Exception?

• Choi Hyun-jun (Hankyoreh Political Team Leader) advised, “If the president wants to keep Kim Hyun-ji (Deputy Chief of Staff to the President) around long-term, he should push her to attend the audit.” This is because “though she may face tough situations due to opposition parties’ indiscriminate questioning, it may be less problematic than the issues arising from her absence.”
• No allegations have surfaced against Kim Hyun-ji. However, critics argue, “Her avoidance of the audit—even through a position change—fuels excessive speculation about her influence.” It amplifies the question: “If there’s no issue, why go to such lengths?”
• Choi Hyun-jun pointed out, “This contradicts the Lee Jae-myung administration’s principle of openness and transparency.” The underlying question: “Why grant Kim Hyun-ji an exception?”
• Related Link.

The Uncomfortable Truth About Unregistered Migrants’ Medical Costs.

• An undocumented worker gave birth in South Korea. Naturally, the child cannot register for residency or attend school. But what if they fall ill and go to the hospital?
• A child with Korean nationality incurs a 24,000 won fee billed to the National Health Insurance Service. What about a child without health insurance? Unable to claim insurance, international rates apply—3–5 times higher than the insured rate. The guardian must pay.
• Foreigners must reside in Korea for at least six months to qualify for health insurance. Undocumented migrants are ineligible. If a premature infant requires an incubator, monthly treatment costs exceed 20 million won. Without payment, discharge is denied. Some hospitals refuse to treat unregistered migrants altogether.
• Lee Jin-hye (attorney at the Migrant Center Friends) emphasized, “Society must ensure that anyone can receive treatment when ill and prevent medical bankruptcy through collective solidarity.”
• Related Link.

Presidential Message Management Is Essential.

• They might have wanted to entrust the investigation to Baek Hae-ryong (Seoul Eastern District Prosecutors’ Office investigation team leader). But they had to hold back. It immediately sparked controversy over prosecutorial interference, and no outcome could have avoided the backlash.
• Choi Jin (President of the Presidential Leadership Research Institute) pointed out, “If the presidential office’s message management system operates properly, the president finds it difficult to express personal thoughts or make impulsive remarks.” If the president has something to say, they must instruct the Chief of Staff or senior secretaries, who then relay orders to secretaries and administrative officers. Drafts are prepared, reviewed by message secretaries, and finalized before release.
• This means Lee Kyu-yeon (Presidential Office Senior Communications Secretary), Kwon Hyuk-ki (Presidential Office Protocol Secretary), Kim Nam-jun (Presidential Office Spokesperson), and Kang Yu-jeong (Presidential Office Spokesperson) must fulfill their roles.
• They should learn from Kim Dae-jung (former president). Though Kim was eloquent and strong-willed, he rigorously managed official messaging after becoming president. He minimized impromptu remarks.
• The message is clear: “Be a communicator, not just an eloquent speaker.”
• Related Link.