An Indispensable Neighbor.

• Xi Jinping’s (President of the People’s Republic of China) words linger with an odd resonance. Though formulaic, they sounded like an accusation: the U.S. is trying to drive us apart.
• Last Saturday, President Lee Jae-myung and Xi resolved multiple issues in a single summit.
• They extended the 400 billion yuan currency swap agreement, which expired last month after being signed in 2020, and agreed to advance Phase II negotiations of the Korea-China FTA. They also pledged cooperation in eradicating online gambling and telecom fraud.
• The North Korean nuclear issue was not mentioned, nor was a joint statement issued.
• Nuclear-powered submarines were also conspicuously absent from public discussion.

“Is the Communication Security Up to Par?”.

• Xi Jinping arrived with a Xiaomi smartphone as a gift. When Lee Jae-myung casually remarked, “Is the communication security up to par?” Xi awkwardly laughed and said, “Check if there’s a backdoor.” He turned the diss into self-deprecating humor.
• Though not one to smile easily, the risky joke landed perfectly. It was a moment to dispel concerns that Korea and China had grown distant as Seoul drew closer to the U.S.
• He spent 207 minutes with Donald Trump (U.S. President), but 607 minutes with Xi.
• The choice of Xiaomi—not Huawei, which faced backdoor controversies—was significant. Though Chinese companies excel in displays, the phone used a Samsung AMOLED panel. Some speculate it was a deliberate choice of an older model with Samsung components.
• It might also have been a confident gesture: the Leica-camera-equipped flagship model rivals Samsung smartphones.
• Korea prepared a go-game board and lacquerware tray. Compared to the medals and gold crowns given to Donald Trump (U.S. President), it was a modest gift.
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260,000 GPUs: Jensen Huang’s Gift.

• Jensen Huang (CEO of NVIDIA), who had foreshadowed “surprisingly good news,” proposed prioritizing South Korea for 260,000 NVIDIA GPUs (graphics processing units).
• It’s not free—it’s a paid sale—but the government is still moved. Given the global supply shortage, even the chance to purchase first is a massive opportunity.
• The South Korean government, Samsung Electronics, SK, and Hyundai Motor will each buy 50,000 units, with Naver Cloud purchasing the remaining 60,000. The total cost is approximately 14 trillion won.
• Prospects suggest this will accelerate the Lee Jae-myung administration’s goal of becoming a top-three AI power. Originally, the target was to secure 50,000 GPUs. Now, 260,000 are coming.

Just How Significant Are 260,000 GPUs?

• As of June this year, Meta holds 350,000 units.
• Elon Musk (Tesla CEO)’s xAI has 100,000 units, while Tesla and Google hold 35,000 and 26,000 units respectively.
• Until now, South Korean companies had secured only a few thousand units.

Short-Term Gain, Long-Term Risk.

• Cautionary voices warn of technological dependency—a reminder to watch for NVIDIA’s hidden claws.
• Lee Seung-hyun (Director of the Digital Platform Government Committee) cautioned, “If we rely on the NVIDIA ecosystem, we may struggle to design our own neural networks in the long run.”
• Lee Won-tae (Kookmin University Professor) noted, “The government must ensure resources are distributed not just to startups and SMEs, but also to public-interest research and development.”
• Related Link.

Super Week, Gyeongju APEC Wrap-Up.

• Korea-U.S. tariff negotiations concluded, and U.S.-China tensions were patched up.
• Free trade was a taboo term.
• The Gyeongju Declaration stated, “The global trade system faces significant challenges” while confirming “a shared recognition that robust trade and investment are essential for growth and prosperity in the Asia-Pacific region.”
• North Korea-U.S. talks failed to materialize. Trump’s visit to China in April next year could be the next opportunity. If U.S. midterm elections in November pass without progress, dialogue may stall.
• The Hankyoreh analyzed, “Pragmatic diplomacy—the real challenge has begun.” Uncertainties were removed, and realistic compromises were achieved. “In the face of a ‘new normal’ global order, the real challenge lies ahead in upholding national interests through pragmatic diplomacy to avoid the worst-case scenarios.”
• The JoongAng Ilbo assessed, “The blueprint for ‘security with the U.S., economy with the U.S. and China’ has emerged.” This signifies aligning security with the U.S. while pursuing economic ties with both the U.S. and China.
• Today, An Kyeong-bok (Minister of National Defense) and Pete Hegseth (U.S. Under Secretary of Defense) will discuss alliance modernization and the transfer of wartime operational control, among other issues.
• Related Link.
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What Matters Now.

Society Has Cha Eun-woo, the Chef Has Edward Lee.

• Compared to the Jamboree nightmare two years ago, the APEC summit demonstrated the power of a functioning system.
• The storytelling of Gyeongju as a host city was also well-crafted. Lee Jae-myung emphasized, “The Hwarang spirit does not force uniformity or enforced unity,” adding, “It seeks harmony and coexistence by pursuing the chords created through diverse voices blending together.”
• Introducing the myth of Manpasikjeok—a flute from a millennium ago that quelled division and turmoil—he stated, “I am confident that beautiful harmonies will bring new peace, stability, and prosperity to the Asia-Pacific region.”

These Days, the People Power Party.

• “That seat should have been ours”—such is the prevailing mood.
• While the nation overflows with “nationalist euphoria,” the People Power Party remains weighed down.
• Coincidentally, Choo Kyung-ho (former People Power Party floor leader) is under investigation and may face arrest.
• Jang Dong-hyeok (People Power Party leader) did not attend the APEC leaders’ welcome banquet.
• Song Eun-seok (People Power Party floor leader) grumbled, “It ended as a noisy, empty diplomatic cart.”
• Kim Jong-hyuk (former People Power Party supreme council member) posted on Facebook: “If Yoon Suk-yeol had been less swayed by Kim Keon-hee and shown slightly more self-control, Yoon and the People Power Party could have been the protagonists of this APEC. It is truly lamentable.”
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Who Decides Investments? U.S. Calls Shots, Korea Pays the Bill?

• Many assess this as a decent outcome, but the requirement to invest $200 billion remains unchanged.
• The agreement caps annual contributions at $20 billion, establishes a consultative committee, and includes provisions to decide based on “commercial rationality.”
• Lee Jae-min (Seoul National University Professor) emphasized, “The key is not consultation but Korean government participation in the decision-making process.”
• Under the U.S.-Japan agreement, the investment committee is chaired by the U.S. Secretary of Commerce and composed of U.S. government officials. The consultative committee is chaired by South Korea’s Minister of Trade, Industry, and Energy.
• Decisions may ultimately rest with the investment committee, with the consultative body limited to advisory input. The U.S. Department of Commerce’s investment promotion director will oversee operations, and investments will be executed through a special-purpose entity.
• Lee Jae-min stressed, “At least one Korean representative must sit on the investment committee.” Only then can meaningful consultation occur, decisions be made, and accountability determined.
• Final documentation is underway. Kim Yong-beom (Presidential Office Policy Director) stated, “The MOU has 30 clauses, while the fact sheet is about three A4 pages.”
• Related Link.

Next Year’s Growth Rate Rises, But.

• South Korea will invest in the U.S. at three times the scale of its domestic manufacturing equipment investment.
• Last year’s domestic manufacturing equipment investment increased by 10.4 trillion won compared to the previous year, while the U.S.-pledged investment amounts to $20 billion (28 trillion won) annually.
• Morgan Stanley raised its GDP growth forecast for South Korea to 1.7% from 1.5%.
• Hyundai Motor’s tariff burden will decrease from 473 billion won to 284 billion won, and Kia’s from 349 billion won to 210 billion won.
• The tariff shock is also significant. The Gyeongnam Research Institute estimated that a 15% tariff would reduce the region’s exports to the U.S. by 499 billion won annually.
• Huh Jung (Sogang University Professor) pointed out, “Investments in China were often in low-value-added industries and complemented domestic investment, but U.S. investments focus on advanced industries—this could mean diverting funds that would have been invested domestically to the U.S.”
• It’s a warning to prepare for the risk of industrial hollowing-out.
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Deep Dive.

Lee Jae-myung’s Approval Rises, Democratic Party’s Falls.

• Lee Jae-myung’s approval rating at 57% and the Democratic Party’s at 41%—the gap is significant.
• Presidential approval among those in their 40s and 50s stands at 72% and 74%, respectively. The impact of the October 15 measures was minimal.
• Approval ratings are likely to rise further this week following the APEC summit.

Takahashi Sanae’s 2030 Approval Soars.

• According to a Yomiuri Shimbun poll, support among the 2030 generation was 15% under former Prime Minister Ishiba Shigeru but has risen to 80%.
• Support among the 4050 generation also jumped from 29% to 75%. While a honeymoon effect may be at play, the surge in youth support is striking. Overall approval stands at 71%.
• Initial approval ratings for Ishiba Shigeru and Kishida Fumio (former Japanese prime ministers) were 51% and 56%, respectively.
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Far-Right? Far-Left? Politics and Statecraft Must Differ.

• A Japanese reporter asked after the Korea-Japan summit, “There are evaluations that Takahashi is far-right—what did you think upon meeting her?”
• Lee Jae-myung responded, “Japan probably thought, ‘Lee Jae-myung is far-left—should we worry?’” He emphasized, “A politician’s views and actions as an individual must differ when they bear full responsibility for statecraft.”
• “Where there are problems, we resolve them; where there are tasks, there are areas for cooperation,” he said. “I believe Korea-Japan relations can advance to a better stage than now.”
• Related Link.

Kim Jong-un Was Busy Too.

• Kim Jong-un (North Korean State Affairs Commissioner) visited the Storm Corps, which was dispatched to Russia last year, and had his photo taken—an event showcasing the blood alliance between North Korea and Russia.
• Choe Son-hui (North Korean Foreign Minister) timed her trip to Russia and Belarus to coincide with Trump’s visit to South Korea, a move clearly intended for maximum impact.
• Pak Myong-ho (Vice Foreign Minister of North Korea) issued a statement: “Even if you drone on about denuclearization a thousand or ten thousand times, we will show you it’s a pipe dream that can never be realized.”

Another Take.

Four-Year Daejang-dong Trial Concludes: All Found Guilty.

• Kim Man-bae (major shareholder of Hwacheon Daewoo) received eight years in prison and a 42.8 billion won confiscation order,
• Nam Wook (owner of Cheonhwa 4) and Jeong Young-hak (owner of Cheonhwa 5) were each sentenced to four and five years in prison,
• Yoo Dong-gyu (former Seongnam Urban Development Corporation head) received eight years in prison and a 400 million won fine,
• Jeong Min-yong (former Seongnam Urban Development Corporation team leader) was sentenced to six years in prison, a 3.8 billion won fine, and a 3.7 billion won confiscation order.
• All five were immediately detained.
• The core charge was that profits rightfully belonging to the Seongnam Urban Development Corporation were funneled to private developers like Kim Man-bae.
• The court ruled that Kim Man-bae and others received preferential treatment in exchange for helping Lee Jae-myung (then Seongnam mayor) secure re-election and providing bribes to Jeong Jin-sang (then Seongnam policy secretary) and Kim Yong (then standing committee member of the Seongnam City Council).

“Leadership Made Key Decisions,” No Mention of Lee Jae-myung.

• The Daejang-dong project saw Seongnam Urban Development Corporation, which held a 50% stake, receive 180.3 billion won, while private developers with a 7% stake took 788.6 billion won.
• The court ruled, “There was an aspect of voluntarily forgoing additional profit opportunities for private gain,” adding, “This act severely damaged fairness, integrity, and public trust, warranting significant social condemnation.”
• While claims were made that Yoo Dong-gyu (then Seongnam Urban Development Corporation head) acted alone, the court judged, “This was a series of corruption crimes collusively carried out through long-standing, bribery-fueled collusion.”
• The court also noted, “Yoo Dong-gyu was not in a position to unilaterally decide major matters and primarily served as an intermediary manager while the Seongnam leadership made key decisions.” Though it did not specify the leadership’s scope, the central issue remains: to what extent was Lee Jae-myung (then Seongnam mayor) involved?

The Open-Ended Conclusion of the Daejang-dong Trial.

• Lee Jae-myung has long claimed the project was a “model case” that blocked private developer privileges and recovered 5.503 trillion won, but the court disagreed. It acknowledged the existence of preferential treatment—though no direct link to Lee has been established.
• The Democratic Party argued, “The court did not recognize Lee Jae-myung’s collusion,” while the People Power Party insisted, “As the final decision-maker, Lee’s guilt is the inevitable next step.”

“Lee Jae-myung Didn’t Know.”.

• Controversy persists, but the verdict contains a decisive passage.
• “At the time, the Seongnam mayor appeared to have made the land acquisition decision relatively freely, unaware of the extent of collusion between Yoo Dong-gyu, Jeong Min-yong, and private developers.”
• Even if Yoo Dong-gyu or Jeong Min-yong are guilty, if Lee Jae-myung was unaware, it is unlikely to constitute breach of trust—a point the prosecution also failed to prove.
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Democratic Party Pushes for Government Stability Act.

• Legislation to suspend criminal trials during a president’s term is being revived. Park Soo-hyun (Democratic Party lawmaker) said, “We will call it the Government Stability Act or Government Protection Act.”
• The party is also renewing efforts to abolish the crime of breach of trust under criminal law. Lee Geon-tae (Democratic Party lawmaker) stated, “There have been arguments within the legal community that the crime of breach of trust should be abolished.”

Has South Korea Abandoned Balanced Diplomacy with the U.S. and China?

• The New York Times warns.
• Lee Sung-hyun (research fellow at the George Bush China-U.S. Relations Foundation) analyzed, “South Korea has relied on the U.S. and China for security and economy, but that balance has ended,” adding, “It signifies South Korea’s shift from a balancer to a partner fully integrated into the U.S. system.”

The Cart Placed Before the Horse.

• It means the nuclear-powered submarine (cart) has been placed before the national defense strategy (horse).
• The Korean Peninsula’s waters are shallow and have limited operational range. Kim Jong-dae (former Justice Party lawmaker) criticized, “The real threat to South Korea is not the deep sea but coastal areas,” adding, “The nuclear-powered submarine is a national vanity drunk on the delusions of a great power.”
• The Hankyoreh also introduced the opinion that “considering cost-performance, building multiple diesel submarines is more effective than a single nuclear-powered one.” Four nuclear-powered submarines would require a budget exceeding 16 trillion won.
• Related Link.

The Meaning of Building Submarines in the U.S.A.

• “Please make the decision to allow us to secure fuel for nuclear-powered submarines,” was Lee Jae-myung’s proposal.
• Trump posted on Truth Social the morning after the Korea-U.S. summit, “I have given them approval to build nuclear-powered submarines,” and shortly after, added, “South Korea will build them at the Philadelphia shipyard.”
• “Right here in the good ol’ U.S.A. Shipbuilding in our Country will soon be making a BIG COMEBACK.”
• There are three problems.
• First, Hanwha Philly Shipyard, acquired by Hanwha Ocean, has such outdated facilities that a dry dock must be built before any submarine construction can begin.
• Second, South Korea already possesses the technology. Transferring U.S. technology would require a special act from Congress.
• Third, Hanwha Ocean is already building submarines at its Geoje Shipyard. Insisting on building a new dry dock in the U.S. while a perfectly functional shipyard exists here is an extremely burdensome condition.
• An Kyu-baek (Minister of National Defense) has stated, “Four submarines are needed.” In an editorial, Chosun Ilbo proposed, “The lead submarine could be built in South Korea while the Philadelphia shipyard is reconstructed, and the second to fourth submarines could then be built in the U.S. to assist the American shipbuilding industry.” “Concrete agreements must be made to avoid the devil in the details,” it concluded.
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“Those Words Cannot Be Forgotten.”.

• Kwak Jong-geun (former Special Warfare Command commander) said, “It’s a trauma—whenever I watch TV or even in my sleep, I think of it.”
• “When the quorum discussion came up, we watched the YTN footage together. I cannot forget those words (the order to ‘drag him out’). (Yoon Suk-yeol) said, ‘Break the door down quickly.’”

Two Minutes After the Proclamation: “Can Seoul Detention Center Handle the Inmates?”.

• At 11:25 PM on December 3, Shin Yong-hae (then head of the Ministry of Justice’s Correctional Bureau) called Seoul Detention Center and asked this question.
• The special prosecution suspects that Park Sung-jae (then Minister of Justice), who met Yoon Suk-yeol before the emergency martial law was declared, may have instructed Shin.
• Park claims he had no prior knowledge of the proclamation, but CCTV footage from the presidential office shows him pulling out documents believed to be the proclamation.

The Fix.

Rising Stocks Delay National Pension Exhaustion.

• The fund grew from 1,213 trillion won at the end of last year to over 1,400 trillion won by the end of last month.
• Last year’s return rate was 15.3%, and this year it has already surpassed 20%.
• This year’s contributions from subscribers total 62 trillion won. While the year-end returns remain to be seen, the fund is on track to generate over three times the premium income in investment gains.
• Kim Yong-ha (Professor at Soonchunhyang University) said, “The higher the assumed return rate reflected in fiscal projections, the later the projected depletion date,” adding, “The current assumed rate of 4.5% annually should be adjusted upward to reflect reality, and the pension’s fiscal structure re-examined.”
• The National Pension Service’s 20-year average return rate is 6.3%. Under the 4.5% scenario, the fund would be depleted by 2057—but maintaining a 6.5% rate could delay that by 33 years, until 2090. The fiscal deficit onset would also be postponed from 2041 to 2070, a 29-year extension.
• Related Link.

Three Things Couples Need to Consider Before Having Children.

• In South Korea, childbirth is an enormous risk and burden for both women and men. The decisive factor in shifting from a child-free (Double Income No Kids) lifestyle to parenthood is men’s active participation in caregiving.
• Shin Kyung-ah (Professor at Hallym University) proposed three solutions.
• First, infertility leave is essential. IVF treatments require immense time, cost, and physical strain—yet current infertility leave lasts only two days.
• Second, the disadvantages faced by men on parental leave must be addressed.
• Third, small and medium-sized enterprises must change. Government-level support is needed to create a caregiving-friendly environment.
• Related Link.

Employment Rates Before and After Childbirth Rise 19 Percentage Points in a Decade.

• Employment rates based on childbirth dates rose from 32.0% in 2011 to 51.3% in 2021.
• 2023 saw a rate of 56.8%.
• In 2011, employment rates continued to fall more than a year after childbirth, but in 2021, they rebounded around the 180-day mark. This is attributed to increased parental leave usage among both genders and the expansion of childcare facilities like daycare centers.

Can’t We Build a Marathon Guide?

• There are 151 marathon events held in Seoul. If you encounter a marathon procession while driving, you might end up stopped for an hour.
• Can’t an IT powerhouse solve this? It’s not just a matter for the police. Lee Young-tae (Korea Ilbo columnist) suggested, “Even if navigation companies simply show real-time, user-friendly updates of traffic control zones, such inconveniences could be significantly reduced.”
• Related Link.

Why Youth Unemployment Is Skyrocketing.

• Youth unemployment, which had steadily declined since the COVID-19 pandemic, has surged this year.
• The unemployment rate for those aged 15–29, which was 5.9% last year, rose to an average of 6.2% through the third quarter of this year.
• Hiring in key industries—such as manufacturing, accommodation/food services, and construction—has decreased due to economic stagnation, with a growing preference for experienced workers.
• The perceived unemployment rate stands at 15.5%, three times higher. This includes those working fewer than 36 hours who want to work more, or those who have temporarily paused job searches despite being willing to work.
• Related Link.

Hanyang University’s Stork Bank: Lending Living Costs, Interest Optional.

• It is Korea’s first campus-based self-help financial cooperative. Started with capital of 10 million won, it now has 470 members and cumulative loans of 150 million won.
• It offers the Short-Leg Fund (300,000 won limit) and Fast Fund (150,000 won limit).
• Hong Min-jae (Stork Bank Chairman) said, “The high cost of living students face hasn’t changed.” Interest is paid voluntarily. One student borrowed 300,000 won and repaid 600,000 won, including 300,000 won in interest.
• Related Link.

6 National Universities Reject 45 School Violence Perpetrators.

• Kyungpook National University led with 22 rejections, followed by Seoul National University with 2.
• Starting from the 2026 admissions cycle, all universities must mandatorily incorporate school violence-related penalties into their application processes.

ICYMI.

“Young and Arrogant.”.

• Jensen Huang’s remark at the GTC Festival—“You were young when I used Samsung’s graphics memory”—prompted this response from Lee Jae-yong.
• Lee Jae-yong’s words onstage also sparked discussion: “Why are there so many iPhones here?”

This Year’s Word Is 67.

• Dictionary.com’s Word of the Year.
• In Korean terms, it’s like “헐” (hul) or “어쩔” (eojjeol)—used as an exclamation without specific meaning. If asked, “How was school today?” the response is simply “67.”
• It’s pronounced “six-seven,” not “sixty-seven.”
• Salvatore Attardo (Texas A&M professor) analyzed, “It’s a cultural tool to create belonging among those who get the joke and to distinguish themselves from clueless adults.” The trend will fade once adults start using it, he added.
• Related Link.

“Who Is Kim Keon-hee?”.

• “Even if she resigned and left, who is Kim Keon-hee? You should at least add ‘Mrs.’”
• These were the words of Yoon Suk-yeol (former president) during a court appearance.
• Three days after the emergency martial law, on December 6, Kim Sung-hoon (former deputy chief of the Presidential Security Service) testified that Yoon said, “What about the people under investigation? Shouldn’t we take action on their burner phones?”
• Yoon claimed, “The intent was not to delete but to prevent disclosure to the media, etc.”

The National Museum of Korea’s 5 Million Visitor Era.

• The museum ranks fifth globally, following the Metropolitan Museum of Art, the British Museum, the Louvre, and the Vatican Museums. Yet, it could drop to sixth place as early as next year.
• The Grand Egyptian Museum (GEM), the world’s largest, opened on the 1st. Spanning 70 soccer fields—500,000 square meters—it took 20 years and $1.2 billion to build.
• It’s said that seeing everything would take 70 days. Annual visitors are expected to reach 8 million.
• Japan funded part of the Solar Boat exhibition hall, hence the trilingual Arabic, English, and Japanese signage.
• Egypt is demanding the return of three artifacts: the Rosetta Stone from the British Museum, the Dendera Zodiac from the Louvre, and the Nefertiti Bust from Berlin’s museums. These were previously withheld under the pretext that Egypt lacked the capacity to preserve them.
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Berlin Philharmonic’s 2.4 Million Subscribers.

• The era of subscribing to orchestras has arrived. The Berlin Philharmonic Orchestra aims to become the Netflix of classical music. Their Digital Concert Hall costs €16.90 monthly or €169 annually.
• They stream over 50 live performances each year. The archive contains 850+ concert videos and 3,000+ recorded pieces.
• Related Link.

Monthly Rent Transactions Surge 39%.

• The share of monthly rent in total housing transactions rose from 57% in September last year to 65% this September.
• The shift from jeonse to monthly rent is a long-term trend, but the pace is accelerating.
• While housing costs account for 8.5% of total spending for homeowners and jeonse tenants, the figure jumps to 21.5% for monthly renters—highlighting their disproportionate burden.
• The bottom 20% income bracket spends 19.7% of total expenditure on housing, compared to 8.5% for the top 20%. Lower-income groups bear heavier costs.
• In an editorial, Chosun Ilbo proposed, “The government should consider a housing voucher system to subsidize part of low-income tenants’ rent.”
• Related Link.

Narrower Than Yoon’s Cell.

• Yoon Suk-yeol is detained in a 1.8-pyeong solitary cell, while submarine crew quarters range from 1.1 pyeong (Chang Bogo-class) to 1.2 pyeong (Son Won-il-class).
• Crews call themselves “people trapped in a narrow tube.” Once deployed, they can spend up to three weeks in windowless spaces.
• Three crew members share two beds in rotation.
• A single toilet serves 15–25 people.
• Indoor air contains 8.3 times the atmospheric level of carbon dioxide and 2.9 times nitrogen monoxide. Aerobic exercise is prohibited.
• Crew attrition is a major issue: even after investing tens of millions of won per person for training, many leave.
• Related Link.

Bysundong Becomes Pyocho-dong, Local Kids Pushed Out.

• Pyeongseon High School in Seogwipo, Jeju, saw students flood in nationwide after introducing the IB (International Baccalaureate) program. Word spread that its discussion- and inquiry-based classes gave an edge in the student record holistic review admissions process. It’s now dubbed Pyocho-dong—Jeju’s answer to Daechi-dong.
• Competition ratios rose to 1.39:1, with the cutoff climbing to 49%. This means middle schoolers must rank within the top 49% of their cohort to enroll. Many local students were forced to attend high schools in other areas.
• It’s said that fewer than half the students in a class are from Pyeongseon.
• While some parents praise “classes that empower students and make them happy,” others criticize the IB program for “fueling private education.” Some even call it “just another cram school where outsiders study for a few years before leaving for college.”
• Related Link.

Worth Reading.

The U.S. Situation Has Worsened.

• Did Trump gain anything from the summit with Xi Jinping?
• Choi Hee-jin (Kyunghyang Shinmun International Affairs Editor) assessed, “It’s like drawing a sword only to be struck back with an iron hammer, failing to even slice the meat.”
• While the U.S. and China have reverted to their original positions—China lifting rare earth restrictions and the U.S. restoring tariffs—something has changed: everyone now knows rare earths are America’s Achilles’ heel.
• China can buy soybeans from other countries, but the U.S. economy grinds to a halt without Chinese rare earths.
• Trump is in the palm of Xi’s hand. Even if the U.S. rushes to secure a rare earth supply chain, it will take at least seven years. From America’s perspective, there’s no urgency when cheap Chinese rare earths are available. What if, in a year, China tightens the rare earth spigot again?
• Trump might not have considered that far ahead, but for now, he has no cards to play.
• The New York Times warned, “The U.S. would need to pour effort on the scale of the Manhattan Project to achieve rare earth self-sufficiency.” The implication: America is likely to be dragged along for the ride.
• Related Link.
• Related Link.

What Did Trump Bring to the Table?

• It was a baseball bat signed by Dylan Crews (Washington Nationals player).
• The gesture implied American missionaries introduced baseball to Korea, but it fell flat. While they might have chosen a player from a Washington-based team, Crews is a second-year rookie—not a starting-caliber athlete.
• The imbalance of power should not be overlooked, regardless of the gift’s perceived value.
• Moon Byung-ki (Dong-A Ilbo Political Affairs Editor) assessed, “Reciprocity was never a concept Trump understood,” adding that it “evoked tributary diplomacy—a display of hierarchical power.”
• “The key to navigating an international order resembling a jungle is the strength and negotiating power to strike at the opponent’s weak points,” he argued. “In an era where great powers brazenly impose their dominance, self-reliance is essential for survival.”
• Related Link.
• Related Link.

The Implications of Possessing a Nuclear-Powered Submarine.

• One little-known fact: defense spending increased far more under Democratic administrations.
• It was the Moon Jae-in government that lifted missile range restrictions, and the Lee Jae-myung administration pushed further by approving a nuclear-powered submarine. Amendments to the nuclear agreement—including uranium enrichment and spent nuclear fuel processing—are also being aggressively pursued.
• Gil Yun-hyung (Hankyoreh Columnist) assessed, “We may now be taking the first step toward permanent division between the North and South and South Korea’s own nuclear armament.”
• Related Link.

260,000 GPUs Pose Five Critical Challenges.

• AI is a single, vast market. Here is Son Jae-kwon (CEO of The Miilk)’s analysis:
• First, the monopolistic structure of conglomerates is now unavoidable.
• Second, the power issue must be resolved. Renewable energy transitions are slow, and the grid remains insufficient.
• Third, there is a shortage of talent.
• Fourth, data acquisition is pivotal. South Korea still imposes heavy regulations.
• Fifth, competing with global Big Tech is already too late.
• Son Jae-kwon warned, “If these five challenges are not addressed, the 260,000 GPUs will not be a gift but another ‘proof of missed opportunity.’”
• Related Link.

Tinkering with the Separation of Banking and Commerce Card.

• Amid astronomical-scale semiconductor investments, calls to ease the separation of banking and commerce regulations are emerging.
• Kim Woo-chan (Korea University Professor) opposes it for four reasons:
• First, there is a conflict of interest issue. Second, there is the circular investment problem of SK Hynix’s private equity fund investing in SK Hynix itself. Third, there is the pyramid investment structure issue—great-grandchild companies emerging alongside grandchild companies. Fourth, to recover investments anyway, the investment entity must be acquired.
• OpenAI’s Stargate uses a co-investment model. Microsoft’s ‘AI Infrastructure Partnership’ is an investment consortium. Alternatives exist.
• Kim Woo-chan pointed out, “The most desirable solution is for the two companies to secure necessary funds through their own resources and borrowing.”
• Related Link.

This Is When the Danger Is Greatest.

• Kim Tae-il (former Jang’an University President) warns: Economic indicators are not bad, and state affairs appear stable, but “the true crisis of politics often arrives when the crisis seems to have vanished.”
• “When governance runs smoothly, public expectations rise even higher, and even the smallest stumbling block can lead to profound disillusionment.”
• “Societal overhaul, inequality reduction, climate crisis, demographic collapse, digital transformation, regional decline—these challenges are piled high before us. Such epochal tasks cannot be managed through power’s arrogance alone; they can only be pursued through humble reflection and the trust of the people.”
• Related Link.

Far-Right Populism Slips In Through the Backdoor of a “Strong State.”.

• Kim Min-seok (Prime Minister) once sparked controversy by stating, “What we lack most is imperial thinking” and asserting, “It’s time to adopt an aggressive perspective.” Though framed as a call to transcend victimhood and seek broader order, the remarks were precariously balanced.
• Kim Geon-woo (Policy Planning Team Coordinator at People’s Solidarity for Participatory Democracy) warned, “We are vulnerable to nationalist discourse, and victim narratives can easily morph into dominant narratives.”
• Kim Geon-woo pointed out, “The logic of a ‘strong state’ borders on a fascist worldview that eliminates, exploits, or excludes internal enemies.”
• In an unfortunate era where “we” and “state” are conflated and “national interest” overshadows all values, the warning that “no empire can coexist with democracy” resonates with unsettling relevance.
• Related Link.