“Can Wait.”.

• “It would be really good to meet Kim Jong-un,” Donald Trump (U.S. President) said immediately after arriving in Japan.
• According to Kyodo News, he added, “I can extend my stay.” Trump was scheduled to remain in Japan until Wednesday, then attend the APEC meeting in Korea for two days—but if Kim Jong-un (North Korean State Affairs Commissioner) requests a meeting, he is willing to wait.
• Related Link.

The Long History Between Kim Jong-un and Trump.

• In February 2019 in Hanoi, Trump walked out.
• Six years ago, Trump demanded a “big deal” on the condition of complete denuclearization (CVID), while Kim Jong-un proposed a “small deal” at the level of freezing nuclear activity. Kim desperately needed sanctions relief but had no intention of giving up nuclear weapons.
• Trump’s recognition of North Korea as a “sort of nuclear power” stems from his belief that the issue is solvable. He wants to be credited with creating peace through negotiation—and needs assurances that ICBMs (intercontinental ballistic missiles) won’t be launched.
• While Trump previously insisted, “No sanctions relief without denuclearization,” this time he has retreated to acknowledging nuclear capabilities while controlling only their use and proliferation. Expectations have significantly lowered.
• Russia has already recognized North Korea as a nuclear state, and China remains in an awkwardly consenting position. From Pyongyang’s perspective, there’s no rush—but also no reason to reject Trump’s outstretched hand.
• Concerns about South Korea being sidelined are emerging. As a pace-setter, President Lee Jae-myung’s role is critical at this juncture.
• Related Link.

What Matters Now.

KOSPI Breaks 4,000 Mark.

• It’s a historic milestone. The market cap stands at 3,325 trillion won. Less than two months after surpassing 3,000 on June 20.
• Some assess that the structural shift has begun—from chronic Korea Discount to Korea Premium. A 40-fold rise in 45 years.
• While the U.S. S&P 500 rose 16% this year, KOSPI surged 69%.
• Samsung Electronics and SK Hynix market caps hit 670 trillion won and 389 trillion won, respectively. Each achieved “100,000 Electronics” and “500,000 Nix.”
• However, semiconductor concentration remains high, and exchange rate volatility looms large.
• In an editorial, Dong-A Ilbo noted, “The rise leans more on liquidity and investor sentiment than structural growth.”
• Related Link.

The Game Has Changed.

• In 1989, when KOSPI first surpassed 1,000, it rode the “three lows” boom: low interest rates, weak dollar, and cheap oil.
• This year, the “three lows” have returned—plus a liquidity-driven rally. Corporate earnings are strong, and investor sentiment is buoyed by revised commercial laws.
• Stock prices remain relatively low compared to performance. In 2021, when KOSPI hit 3,000, its PER (price-to-earnings ratio) exceeded 30x—today it’s barely 20x.

Three Years Since Lee Jae-yong’s Ascension.

• Compared to November last year’s 49,900 won, the stock has more than doubled in a year. Yesterday marked the third anniversary of Lee Jae-yong (Samsung Electronics Chairman) taking office.
• Many small shareholders who held through the long stagnation have finally entered profit territory.
• Samsung Electronics has 5.05 million small shareholders—collectively holding 68% of its issued stock.

KOSPI 5,000: Four Tailwinds, One Headwind.

• Warnings of a November correction exist, but few forecasts oppose the overarching upward trend.
• First, the semiconductor supercycle has begun; second, the U.S. is likely to cut benchmark rates; third, trade conflicts have entered a de-escalation phase. Fourth, Korean corporate earnings are strong.
• Currency appreciation remains a risk factor. Most projections suggest it won’t rise sharply from current levels.
• Related Link.

Party-Government Separation Strategy Worked.

• Despite numerous adverse factors, the president’s approval rating has held steady. It even rose in a Gallup Korea survey after the October 15 measures.
• The Korea Daily assessed, “’Reforms by the Democratic Party, livelihoods by the government’—the dual-track strategy of Rep. Chung Chung-rae (Democratic Party Leader) has paid off.” The narrative is that the Democratic Party acted as a breakwater, preventing party-led political issues from morphing into anti-Lee Jae-myung sentiment.
• The KOSPI’s 4,000-point mark also underpins the approval rating. The early dismissal of Lee Sang-kyung (former Vice Minister of Land, Infrastructure, and Transport) has been viewed positively.
• *Note on formatting:** The final line break in the original content was preserved, though the incomplete HTML tag (“) appears to be an artifact from the source material. If this tag should be omitted entirely, the content would end cleanly after “positively.”
• Related Link.

South Korea Is Not Japan: EU Investment Model Proposal.

• “Delay is not failure,” President Lee Jae-myung said in an interview with Bloomberg.
• The European Union operates not through government-led investment but via private companies investing with EU financial support. The joint statement included the phrase, “We will invest an additional $600 billion in strategic U.S. sectors by 2028.”
• South Korea’s proposal insists that domestic corporate investments must also be included. Lee remarked, “Patience is necessary.”
• Oh Hyun-joo (Deputy Director of the National Security Office) stated, “I think it will be somewhat difficult to reach an immediate agreement,” suggesting negotiations could drag on.
• The Hankyoreh analyzed, “This is a holding strategy emphasizing that no reckless agreement leading to near-catastrophic outcomes will be accepted.”
• Related Link.

U.S. and China Agree to a Truce—for Now.

• China has agreed to delay rare earth export controls by one year, while the U.S. has decided not to impose 100% additional tariffs. Both sides appear to have avoided extreme conflict ahead of the Gyeongju APEC meeting.
• Donald Trump (U.S. President) said, “I think we’ll reach an agreement,” adding, “The feeling is good.”

Lee Won-bok and Lee Chan-jin’s Real Estate Controversy.

• Lee Won-bok (Financial Services Commission Chairman) purchased an apartment in Gaepo-dong for 850 million won with a jeonse deposit, while its current market value exceeds 4 billion won. Lee stated, “I have lived with one household, one home my entire life, and will continue to do so.”
• Lee Chan-jin (Financial Supervisory Service Governor) owns two apartments in Seocho-gu’s Umyeon-dong, each valued between 1.8–1.9 billion won. Amid controversy, he initially said he would transfer them to his children but later decided to sell them.
• Related Link.
• Related Link.

Deep Dive.

Did Choi Min-hee Not Know?

• The Improper Solicitation and Graft Act does not stipulate a permissible amount for receiving gifts; it is fundamentally a law that prohibits acceptance, but exempts penalties for amounts below a certain threshold.
• Regardless of job relevance, receiving over 1 million won per instance or 3 million won annually from the same person is subject to criminal punishment.
• If the gift is job-related, even amounts under 1 million won can result in fines or disciplinary action.
• Any direct interest in permits, inspections, audits, contracts, evaluations, etc., prohibits acceptance regardless of amount.
• Lee Ji-moon (Senior Advisor to the Whistleblower Practice Movement) emphasized, “Lawmakers cannot accept any form of congratulatory or condolence money, floral arrangements, or holiday gifts from supervised institutions,” adding, “That is the law and the minimum ethical standard.”
• The Korea Daily editorial stated, “Having lost public trust, resignation is only right,” and warned, “The public is watching this arrogance and hypocrisy.”
• Related Link.

Climbing the Social Ladder Grows Harder.

• Income mobility fell for the third consecutive year to 34.1%—the proportion of people moving up or down income brackets. In 2023, 17.3% rose in class while 16.8% fell—the lowest since records began in 2017.
• Aging demographics and low growth are cementing income stratification.
• The poverty escape rate for the bottom 20% income bracket also drew attention at 29.9%—the first time it has dropped below 30%.
• Choe Ba-ul (Head of the National Data Bureau’s Research Division) said, “Income mobility is most active among youth, so upward movement could increase if their population share grows or economic conditions improve, boosting employment.”
• Related Link.

Seoul Youth Employment Rate at 50%, Jeonbuk at 37%.

• The national average is 46%.
• The gap between the capital region and other areas widened from 5.1 percentage points in 2015 to 8.2 percentage points last year.
• 27% of high-wage top 20% jobs are concentrated in the capital region.
• Seoul has a high employment rate but also a high unemployment rate—8.1%, compared to the national average of 6.7%.
• Lee Sang-ho (Research Fellow at the Korea Employment Information Service) emphasized, “Policy focus must shift from companies to people.”
• “For regional jobs to be sustained, cities of a certain scale—where young people want to stay—must receive integrated support for jobs, infrastructure, housing, and universities,” he explained.
• Related Link.

Another Take.

Examining the 728 Trillion Won 2025 Budget.

• AI and renewable energy budgets increased, while nuclear power and private road project budgets decreased. Rental housing funding also rose.
• “The Ministry of Economy and Finance expanded capital expenditures under Moon Jae-in’s active fiscal policy and reduced them under Yoon Suk-yeol’s fiscal prudence mandate—limiting real expansion or contraction effects. A similar pattern repeats under Lee Jae-myung’s government,” analyzed Lee Sang-min (Research Fellow at the Korea Institute of Public Finance).
• Lee Jae-myung’s government significantly increased capital expenditures with investment-oriented characteristics compared to Yoon Suk-yeol’s administration.
• “Yoon’s 3.5% total spending growth doesn’t prove improved fiscal health, nor does Lee’s 8.1% growth necessarily indicate deterioration,” the commentary adds.

Is Jang Dong-hyeok Truly Wronged?

• Each of the six apartments has its own story.
• The Guro-dong, Seoul apartment was bought for 480 million won in 2019 and is now worth over 700 million won—relatively affordable for a Seoul property.
• The Boryeong, Chungnam apartment was purchased for use when visiting his constituency, and the office-tel near the National Assembly was for late-night work. The Anyang and Jinju apartments were inherited by his wife. His mother-in-law lives in the Jinju apartment, and the monthly rent from the Anyang apartment covers her living expenses. There is another apartment in Boryeong where his mother resides.
• Though he claimed the total value was “850 million won,” actual transaction prices suggest around 1.1 billion won.
• It’s hard to label this as speculative investment—no development prospects are involved.

Oh Dong-woon Obstructed the Investigation into the Chae Sang-byeong Case.

• Oh Dong-woon (Head of the Corruption Investigation Office) will appear before the special prosecution as a suspect.
• Jeong Min-young (Deputy Special Prosecutor for the Chae Sang-byeong Case) stated, “We have confirmed that there were acts of obstruction in the investigation of the Chae Sang-byeong case.”
• Oh Dong-woon is accused of intentionally delaying the investigation by failing to notify the Supreme Prosecutors’ Office after accepting a report on Song Chang-jin’s (former senior prosecutor at the Corruption Investigation Office) alleged perjury charges.
• Song Chang-jin previously represented Lee Jong-ho (former CEO of Black Pearl Investment) before joining the Corruption Investigation Office. During last year’s National Assembly audit, he claimed ignorance of Lee Jong-ho’s involvement in lobbying for the acquittal of Lim Seong-geun (former Marine Corps division commander), leading to his referral for perjury charges.

Reviving the Lee Jae-myung Trial Suspension Bill.

• Kim Yong-min (Democratic Party lawmaker) proposed it at a closed-door parliamentary meeting.
• This shift follows Chief Judge Kim Dae-woong’s (Seoul High Court) remark that “resuming the trial is not theoretically impossible.” It has not yet been formally adopted as party policy.
• Abolishing the National Court Administration is also under discussion. Democratic Party leader Jung Chung-rae criticized, “The courts are too closed,” adding, “Reforms like establishing a judicial administrative committee are necessary.”
• Park Gyun-taek (Democratic Party lawmaker) plans to propose a citizen-participatory warrant review system, allowing public involvement in court decisions on arrest warrants.

A Police Officer Who Offered IV Fluids Instead of Handcuffs to a Convenience Store Thief.

• A man in his 50s caught stealing 49,000 won worth of kimbap and cigarettes from a convenience store. He was a day laborer who said he hadn’t worked since July.
• The police arrested him but found him so emaciated he could barely stand. Instead of taking him to the station, they first took him to a hospital for IV fluids. They decided on a non-custodial investigation, bought him groceries like eggs and instant rice, and released him.
• The police checked his records and found he was designated as a welfare blind-spot case—overdue on health insurance and phone bills—but had been unreachable and unable to receive aid. He later applied for basic livelihood support and will receive 760,000 won over three months.
• The investigation into the crime will proceed separately.

The Fix.

Was POSCO Established Because Pohang Had Talented People?

• Ha Seung-soo (CEO of Nongbon) pointed out, “There is no reason to push for a semiconductor industrial complex in Yongin, which lacks electricity, when it requires power equivalent to 10 nuclear reactors.”
• From Ha’s perspective, resolving the concentration in the capital region requires two things.
• First, we must move south beyond the southern limit line.
• Second, township autonomy must be strengthened by granting authority and budgets.
• Related Link.

“You Can’t Treat Workers Like a Joke.”.

• These were the words of the complainant in the Coupang severance pay case.
• Coupang CFS signs daily contracts, yet many workers have been there for years. Are they truly day laborers? Is it right to withhold their 2 million won in severance pay?
• Im Ah-young (Khan Newspaper political desk deputy editor) noted, “The Coupang case is at the frontlines where capital seeks to nullify workers’ rights, public officials who tried to bury facts with brute force to aid them, and on the other side, public officials who worked by principle to guarantee those rights, are in conflict.” She added, “It has become a testbed to observe how a company that tried to devalue labor’s worth at all costs is being confronted.”
• Related Link.

Tearing Open Volume-Based Trash Bags Reveals the Future.

• Direct landfill disposal will be banned in the metropolitan area starting January next year. Incheon has declared the closure of the metropolitan landfill, and construction of a new incinerator has yet to begin. This means 2,937 tons of daily waste will have nowhere to go.
• Goseong County in Gangwon Province could become a new model. The county introduced a pre-treatment system, tearing open volume-based trash bags and sorting waste. Simply separating vinyl mixed in with trash reduces volume by over 30%.
• Hwang Seok-ho (Goseong County Environmental Facility Team Leader) said, “Before the project, we sent 8,500 tons annually to incinerators—now it’s down to 5,900 tons.”
• Sorted vinyl waste is converted into pyrolysis oil and solid fuel. Even simple mechanical sorters can easily separate it.
• Hong Su-yeol (Director of the Resource Circulation Society and Economy Institute) said, “Pre-treatment facilities can be an alternative when incinerator expansion isn’t possible.” He emphasized, “Until now, the system worked through downcycling—recycling high-quality materials first, then incinerating or landfilling the rest. Now, upcycling to produce high-quality recycled raw materials is essential.”
• The proposal calls for a “triple safety net” of deposit systems, separate disposal, and pre-treatment systems.

Time to Discuss Real Estate Blind Trusts.

• This system would force high-ranking officials to sell or place all real estate except one primary residence in a blind trust. While stock blind trusts were introduced in 2005, real estate has remained deferred.
• Jeong Shin-hoon (Democratic Party lawmaker) proposed it in 2020, but it failed to reach the plenary session and was scrapped.
• Seo Hwi-won (Political Legislation Team Leader at the Citizens’ Coalition for Economic Justice) emphasized, “Discussions should proceed under the principle that non-primary residences must be disposed of.”
• Related Link.

Chosun Ilbo’s Leaked Resignation Theory for Choi Min-hee.

• The People Power Party plans to report Choi Min-hee (Science, ICT, Future Planning, and Broadcasting Committee Chairperson, Democratic Party lawmaker) for violating the Anti-Graft Act.
• Chosun Ilbo’s headline mentions a resignation theory, but the body text omits it—reducing it to the People Power Party’s claim and a Democratic Party official “expressing concerns.”
• A Democratic Party leadership insider stated, “Unless it’s someone like Lee Chun-seok (former Judiciary Committee chairperson), committee chairpersons aren’t replaced.”
• Related Link.

ICYMI.

Building a 2km Tower.

• It is set to be built in Riyadh, Saudi Arabia. The structure will reportedly be more than twice the height of Dubai’s 828m Burj Khalifa.
• Construction is planned to begin in 2026, with completion targeted for 2030. The project cost alone is estimated at 7 trillion won.
• South Korea’s Lotte World Tower stands 555m tall. It required 108 piles driven into bedrock 30m below ground.
• Taiwan’s 508m Taipei 101 hangs a 660-ton pendulum from its summit.
• At 2km altitude, air density drops by 20% and winds grow fiercer. The 678th floor will be 15°C cooler than the ground level.
• Kwak Soo-geun (Chosun Ilbo editorial writer) noted, “The critical question is not how high it can be built, but how far it can be constructed without collapsing.”
• Related Link.
• Related Link.

Protocol Competitions Follow Trump Everywhere.

• In Malaysia, F-18 fighter jets escorted Trump’s private aircraft through the air. A dance troupe was ready to perform at the airport.
• The Wall Street Journal analyzed, “It is exerting pressure to prepare lavish events that will not fall behind other countries.”

Women Over 60 Lead KOSPI Returns.

• Men in their 20s ranked last.
• The term “Grandma Buffett” emerged—a blend of grandmother and Warren Buffett.
• This market rewards riding trends, focusing on blue chips, and holding steadfastly after investment.
• Male investors’ top net purchase this year was inverse funds.
• The KODEX 200 Futures Inverse ETF profits when stock prices fall.
• Turnover rates also differed sharply: 181% for men, 86% for women.
• In a prolonged bull market, frequent trading often means missing profit windows.
• Related Link.

10 Freshmen, More Zombie Universities.

• Jeju International University has an enrollment quota of 1,480 students but only 103 currently enrolled. This year’s freshmen: 10.
• With 8 departments and 30 professors, unpaid wages already exceed 20 billion won.
• Selling land and buildings might fetch around 6 billion won.
• Among 208 four-year universities, 23 failed to fill 80% of their enrollment quotas.
• Kyungnam University’s enrollment dropped from 10,427 in 2020 to 7,458 this year.
• If the Private University Structural Improvement Act pending in the National Assembly passes, after closure, school corporations could sell assets, pay severance to staff and students, and return 15% of remaining funds to founders.
• Kim Han-soo (Kyonggi University professor) stated, “Most struggling regional universities are in remote areas, making land sales difficult. Local governments rarely approve land-use changes due to favoritism disputes.” He added, “Systems must be established quickly to ensure smooth disposal of closed-campus assets.”
• Related Link.

KTX Honam Line Frequency Reflects Demand Gap.

• The Gyeongbu Line runs 115 times daily, the Honam Line 55. Korail claims this is not discrimination but reflects differing demand.
• Last year, the Gyeongbu Line averaged 119,000 daily KTX passengers; the Honam Line had 35,000.
• Occupancy rates were 111% and 91%, seat occupancy 66% and 60%.
• Population disparity is stark: Yeongnam region counts 12.49 million, Honam 4.94 million—a 2.6x difference.

Worth Reading.

The Pitfalls of “Oo-Joo-Joo” Politics.

• Among 22nd National Assembly members, 72% of the Democratic Party and 38% of the People Power Party operate YouTube channels. On Facebook, the figures are 83% and 63%, respectively.
• Han Gyu-seop (Seoul National University professor) warned, “When intoxicated by YouTube’s ‘oo-joo-joo’ (affectionate coaxing), lawmakers may make unrefined remarks and inadvertently provoke controversy.”
• Related Link.

What Needs Discussion Before Punishing False Information.

• If someone defames my reputation, I can sue them.
• But in South Korea, prosecutors bring critics of influential politicians—like Yoon Suk-yeol—to trial for allegedly damaging their reputation. When civil matters become criminal, prosecutors handle everything. No lawyer needed.
• The Yoon Suk-yeol administration’s prosecution of Newstapa journalists also cited damage to Yoon’s reputation.
• Lee Jong-kyu (Hankyoreh Journalism Accountability Director) emphasized, “The crime of defamation through false facts should be reclassified as a semi-private offense requiring the victim’s complaint to proceed,” adding, “Broad exemptions for public figures and matters of public interest are also necessary.”
• Lee Jong-kyu noted, “If the Democratic Party intends to introduce punitive damages, it must reform defamation laws to align with international human rights standards,” stressing, “Only then can the claim of ‘balancing free expression and redress’ be credible.”
• Related Link.

Money Moves: Where Do Jeonse Tenants Go?

• The government’s push to invest in stocks instead of real estate is clear. But where does that leave those currently paying off jeonse deposits while living in rented homes?
• Claims that the era of jeonse is over clash with demands to protect tenants.
• Yang Seung-hoon (Kyungnam University professor) pointed out, “Beyond excluding Seoul apartment purchases, there are no fundamental solutions except expanding protected and mainstream housing options, and offering alternatives outside Seoul.”
• Deborah Stone (policy scholar) emphasized, “Fairness is not just about rules—it’s the narrative that defines a community’s boundaries.” Is Korea’s apartment game truly fair?
• Related Link.

Unpopular but Necessary Policies.

• JoongAng Ilbo editorial board member Seo Kyung-ho’s positive assessment of the October 15 measures drew attention. Seo Kyung-ho (JoongAng Ilbo editorial board member) stated, “I do not agree with the People Power Party’s demand for a complete reevaluation of the October 15 measures,” dismissing calls for the resignation of the “real estate trio” as “excessive political pressure.”
• Kim Soo-hyun, who designed real estate policies under the Moon Jae-in administration and authored ‘Real Estate and Politics,’ wrote:
• First, real estate loans should have been more aggressively restricted.
• Second, supply-related anxieties were not calmed early enough.
• Third, policy credibility was lost and government leadership faltered due to conflicting implementation of strengthened holding taxes and rental business regulations.
• The Lee Jae-myung administration is, for now, moving in the opposite direction of the Moon administration.
• Seo Kyung-ho cautioned, however, that “if money flows freely, housing prices will destabilize,” advising, “expanding supply must yield tangible results.”
• Related Link.