Like Park Chung-hee and Kim Dae-jung.

• “This is the first budget to usher in the AI era. Delaying by one day means falling behind by a generation.”
• Lee Jae-myung (President) said this in his parliamentary policy speech.
• Next year’s budget is set at 728 trillion won, an 8.1% increase from this year. It’s the largest in history.
• 10 trillion won will go to AI investments, 35 trillion won to R&D. The National Growth Fund will receive 150 trillion won over five years.
• “We must lay the AI highway, just as Park Chung-hee (former president) built the industrialization highway and Kim Dae-jung (former president) built the informatization highway,” was the clear message. It’s a phrase the conservative camp will love. Chosun Ilbo immediately picked it as the lead headline on page one.
• Related Link.

“No Time to Save a Bucket of Water.”.

• “Neglecting a dry pump only prolongs the suffering of drought. Now is the time to use fiscal policy as priming water to restore the economy’s virtuous cycle.”
• This phrase explains the Lee Jae-myung (President) administration’s philosophy of fiscal-led growth.

Applause Every 40 Seconds.

• Democratic Party lawmakers greeted it with standing ovations, while People Power Party members did not enter the plenary hall.
• An arrest warrant has been requested for Choo Kyung-ho (former People Power Party floor leader), leaving the party in crisis mode. Wearing black mourning attire, black masks, and holding signs reading “Democracy Mourned,” they staged protests. Slogans like “Resign” and “Criminal” erupted.
• The plenary hall atmosphere was warm. Applause broke out 33 times over 22 minutes.

What Matters Now.

Wartime Operational Control Transition: Phase Two to Complete by Next Year.

• Phase One is Initial Operational Capability (IOC),
• Phase Two is Full Operational Capability (FOC),
• Phase Three is Full Mission Capability (FMC).
• Phase One is complete, Phase Two is under verification, with plans to finish Phase Three within Lee Jae-myung’s (President) term.

Will Kim Yong-nam Pay Respects?

• Kim Yong-nam (former Standing Committee Chairman of North Korea’s Supreme People’s Assembly) was never demoted during the three-generation succession of Kim Il-sung, Kim Jong-il, and Kim Jong-un. He also visited South Korea with a North Korean delegation during the 2018 PyeongChang Olympics.
• The Ministry of Unification publicly released a condolence message to the media. With communication channels severed, there is no way to contact them.
• Special envoy missions to pay respects—considered by figures like Chung Dong-young (Unification Minister) and Park Ji-won (Democratic Party lawmaker)—are likely to go unanswered by North Korea.

61 Lawmakers Own Multiple Homes.

• Park Jeong (Democratic Party lawmaker) holds real estate assets worth 38.3 billion won. Second is Park Deok-hyeok (People Power Party lawmaker) at 31.5 billion won, followed by Kim Eun-hye (People Power Party lawmaker) at 20.2 billion won.
• 61 lawmakers own homes in Gangnam’s four districts.

“Too High Already,” Nasdaq Plunges 2%.

• The Wall Street Journal warned, “Caution is sweeping the market.”
• Prospects are emerging that the US Federal Reserve may not cut rates next month.
• Palantir’s price-to-earnings ratio (PER) has already surpassed 200x. Despite beating earnings estimates, its stock fell nearly 8%. Nvidia and Tesla also dropped 4% and 5%, respectively.
• David Solomon (Goldman Sachs CEO) poured cold water on the market by forecasting, “There’s a significant chance the stock market could fall 10–20% within the next 12–24 months.”
• Related Link.

Deep Dive.

“It Was Just a Joke Between Friends.”.

• President Yoon told the Defense Minister and four-star generals, “I’ll shoot Han Dong-hoon.”
• Lee Jun-woo (People Power Party spokesperson) said, “Friends often say things like that when they’re together. Even if they don’t mention guns, don’t they say things like, ‘I’ll kill you’?”
• Kwak Jong-geun (then Special Warfare Command commander) apparently did not take it as a joke.
• Koo Hye-young (Kyunghyang Shinmun columnist) assessed, “History’s court will remember Kwak Jong-geun’s conscience.”
• Rep. Lee Jong-kyu (Democratic Party leader) posted on Facebook: “Assassinating politicians is a joke, martial law is a bluff, and insurrection is a prank. Then why is Yoon Suk-yeol in prison?”
• Related Link.
• Related Link.

Industrial Disaster Punishment? Released on Probation.

• The court sentenced Park Young-min (former Youngpoong CEO) to 1 year and 6 months in prison, suspended for 3 years, under the Serious Accidents Punishment Act.
• In 2023, one worker died and three were seriously injured while replacing a motor at Youngpoong’s Seokpo Smelter. It was the first case applying the Serious Accidents Punishment Act.
• Bae Sang-yoon (former Seokpo Smelter manager), charged with the same offense, received the same sentence. The accident site lacked sealed facilities, and victims wore only dust masks during work.
• The court acknowledged, “The responsibility is not light,” but ruled, “Efforts had been made to prevent industrial accidents and improve working conditions prior to the accident.”
• Related Link.

Myung-Cheong Rift Patches Over, For Now.

• Jeong Cheong-rae posted on Facebook, “We laughed and only talked about good things.”
• The aftermath wasn’t entirely absent. Park Soo-hyun (Democratic Party spokesperson) told Kang Hoon-sik (Presidential Office Chief of Staff) during their meeting, “I learned something this time. I understand you handled the pre-announcement groundwork well ahead of the policy speech.” This refers to Kang’s remark, “Please don’t drag the president into political disputes.” Kang reportedly bowed 90 degrees while apologizing.
• The Myung-Cheong conflict has context. When Jeong Cheong-rae said, “We’ll finalize judicial reforms before Chuseok,” the Presidential Office pushed back, insisting, “Sufficient coordination is needed.” Before announcing the judicial reform task force, the Presidential Office demanded, “The phrase ‘government-led’ must be included,” to which Jeong countered, “The party can’t appear to be taking a backseat.” When the Democratic Party proposed the trial suspension bill, grumbles emerged that it “undermines APEC’s achievements.”

Myung-Cheong Supporters Remain Divided.

• Hardline supporters are fragmenting. The narrative is that the Lee Jae-myung fandom and the Jeong Cheong-rae fandom are distinct.
• The “Lee Jae-myung Does It” gallery on DC Inside flooded with criticism: “Anti-Lee Kim Eung-jun lit the smoke, and pro-Moon lawmakers poured gasoline.” The phrase “the party leader is a habitual offender” also surfaced.
• The Ddanzi Ilbo free board leans heavily pro-Jeong Cheong-rae. Posts like “I’m more worried the party leader will be tripped up than the president” are common.
• A Democratic Party lawmaker noted, “Among highly engaged supporters, concerns about Jeong Cheong-rae’s uncompromising stance are growing.”
• A ruling party insider assessed, “Lee Jae-myung achieved political success by absorbing both the Democratic Party’s traditional base—rooted in the Roh Moo-hyun and Moon Jae-in fandoms—and his self-made ‘Kae-ddal’ (crazy daughters) supporters.” Jeong Cheong-rae’s path differs: “The road to re-election as leader requires amplifying the hardline base.”
• Related Link.

Jeong Cheong-rae’s Deadline.

• Kim Joon-il (political commentator) recalls the 2004 “Tandol-i” National Assembly nightmare in Jeong Cheong-rae’s reckless drive. The Uri Party miraculously secured a majority but dissolved by 2007, losing power.
• Kim Joon-il pointed out, “The deadline for reform legislation pushed by Jeong Cheong-rae could easily become a poisoned chalice.” Failing to meet the deadline risks backlash from supporters, while forcing it could trap him in a unilateral governance frame, alienating moderates.
• “Legislation within the year is Jeong Cheong-rae’s timeline, not necessarily judicial reform’s,” he added.
• Related Link.

Another Take.

Median Income Benchmark Sees Largest-Ever Increase.

• 6.5% rise.
• The median income benchmark determines eligibility for welfare benefits. Monthly livelihood benefits for a four-person household will exceed 2 million won.
• Livelihood benefits cover those below 32% of the benchmark, medical benefits below 40%, and housing benefits below 48%.
• Related Link.

Outbound Investment Surges Sixfold Over Decade.

• Domestic investment and manufacturing jobs shrink accordingly.
• The ratio of net outbound investment to national income rose from 0.8% (2000–2008) to 4.1% (2015–2024). Net outbound investment is calculated by subtracting foreign investment in Korea from Korean investment abroad.

Desperate Housing Supply Push.

• “The only concern is real estate,” said Kim Yong-beom (Presidential Office Policy Director).
• Plans include proactively reviewing greenbelt releases and expanded redevelopment/reconstruction projects. Measures to supply housing 40–50% cheaper than market rates via price caps are also under consideration.
• Emphasizing that “Seoul’s role is critical,” he stressed that “70–80% of redevelopment/reconstruction falls under Seoul’s responsibility.”

If Trump’s Tariffs Are Illegal? $100 Billion Could Be Returned.

• The U.S. Supreme Court has begun deliberations.
• Tariffs fall under congressional authority, but the president may impose them during a national emergency. Is this a national emergency? Interpretations diverge at this point.
• If Trump loses, he may have to refund $100 billion. The New York Times warned, “This could lead to economic collapse akin to the Great Depression and diplomatic deadlock.”
• With six of nine justices leaning conservative, the ruling may favor Trump. He has threatened, “The nation could face ruin.”
• Related Link.

Is Price Stability Holding?

• October consumer prices rose 2.4%.
• Rice jumped 21%, apples 22%.

Will News Sentiment Index Break All-Time High?

• As of November 2, it recorded 127.2.
• This is the highest level since May 2021 (127.6).
• The Bank of Korea has been compiling the index since 2005, and it could potentially break the all-time record.
• The News Sentiment Index (NSI) quantifies economic sentiment reflected in media coverage of economic issues.
• A reading above 100 indicates optimism, while below 100 signals negativity.
• It precedes real economic indicators by 1–2 months.
• Related Link.

The Fix.

Can Satellites With Mirrors Reflect Sunlight? Elon Musk’s Proposal.

• It’s a proposal from Elon Musk (Tesla CEO). The technology is called Solar Radiation Management, or SRM.
• Artificially blocking sunlight could lead to unforeseen natural disasters. It could also exacerbate geopolitical conflicts over which regions to shade.
• Related Link.

Raising the Retirement Age Cannot Be Separated from Youth Employment.

• An inconvenient truth: for every additional elderly worker, 0.4–1.5 youth jobs disappear. This is the Bank of Korea’s analysis.
• The Kyunghyang Shinmun editorial argued, “This cannot be resolved as a binary choice of simply deciding whether to delay retirement.” It added, “A social deliberative process involving generations, labor and management, and supported by job, welfare, and labor reforms is needed to reach a rational conclusion acceptable to all stakeholders.”
• The Hankook Ilbo also emphasized, “Minimizing conflict and chaos—more than speed—is key to finding a sustainable solution.”
• Related Link.
• Related Link.

Baemin and Doctor Now.

• Doctor Now is a non-face-to-face medical consultation app. Like choosing a restaurant on Baemin, you can select a doctor and receive treatment.
• You can get prescriptions for colds, muscle pain, artificial tears, hair loss, acne, diet pills, etc., and pick up medications at nearby pharmacies. This has reached 760,000 cases per year.
• The National Assembly is discussing legislation to institutionalize non-face-to-face medical platforms, but concerns arise that it may accelerate the commercialization of healthcare. The Hankyoreh warned, “If insurance companies operate medical platforms, there is a risk that the healthcare system could be distorted toward excessive testing or prioritizing insurers’ profit maximization.”
• There is also a risk of being swayed by ratings, much like Baemin. Jang Bo-hyun (Policy Director, Korean Pharmaceutical Association) said, “Only high-rated doctors are prominently displayed,” adding, “The system pressures doctors to quickly provide as many prescriptions as patients demand.”
• Jeong Hyeong-jun (Policy Chair, Health and Medical Coalition) emphasized, “The Ministry of Health and Welfare must establish a public platform with detailed regulations to prevent drug abuse and ensure data protection.”
• Related Link.

Unpaid Subway Fares Cost 2.7941 Trillion Won Over Five Years.

• It’s not a loss but uncollected revenue. One more fare-free passenger doesn’t increase costs.
• As of 2023, 490.5 million of 2.41791 billion subway and light rail passengers in six cities rode without paying.
• Seniors over 65 accounted for 85%, disabled persons 14%, and national merit recipients 1%.
• As the elderly population grows, subway profitability worsens. This year, seniors are 10.51 million (20% of the population); by 2036, 30%; by 2050, over 40%.
• Kim Jin-hee (Yonsei University Professor) criticized, “The government cannot ignore these unpaid fares,” adding, “Mandatory provisions should require compensation for losses incurred while fulfilling public service obligations.”

Number of Bus Drivers Over 65 Doubles.

• There are 147,445 bus drivers.
• In 2020, 14,477 drivers (11% of all bus drivers) were over 65; this year, the figure rose to 21%.
• The traffic accident rate among transportation workers over 65 exceeds the average: 8,990 cases last year, accounting for 37% of all accidents involving transportation workers.
• Analysis suggests this trend stems from the practice of rehiring retired drivers as temporary contract workers. Temporary contract drivers earn 12,000 won per hour, compared to 18,000 won for regular drivers.
• Jeon Gwang-jae (Busan Branch Director, Democratic Bus Workers’ Union) stated, “Bus companies are rapidly increasing elderly drivers by expanding temporary contract hiring to cut labor costs.”
• Choi Yang-won (Youngsan University Professor) noted, “Older drivers have slower reaction times,” adding, “Physical exams and cognitive response training should be expanded, along with safety measures like blind-spot detection systems and pedal misoperation prevention devices.”
• Related Link.

ICYMI.

Calling Names Lowers Recidivism.

• Somang Prison’s recidivism rate within three years is 5.3%. The national average is 22.5%.
• Here, inmates are addressed by name—Mr. So-and-so—instead of by number.
• The per-person detention area is also wider at 3.98㎡, compared to 2.58㎡ in regular prisons. Character education and music therapy are rigorously implemented, with strict sanctions for basic rule violations.
• The facility’s capacity is 400 inmates, with a 4:1 competition ratio. It is a privately operated prison run by the Agapé Foundation of Myeongseong Church.
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KT’s 16 Million Subscribers Get Free SIM Replacement.

• This includes MVNO subscribers. The company will cover the cost as accountability for unauthorized small payments.
• Kim Young-seop (KT CEO) has announced he will not seek reappointment.

Dutch Bros Outpacing Starbucks.

• Starbucks has seen negative growth for seven consecutive quarters in the U.S. It remains the dominant leader, but Dutch Bros is closing the gap at breakneck speed.
• The Wall Street Journal analyzed, “The younger generation doesn’t drink coffee so much as photograph it.” 94% of Dutch Bros orders are iced beverages, and one-third are energy drinks.
• High sellers include iced coffee with protein powder, or the Annihilator energy drink with chocolate macadamia syrup and half-and-half milk. Half of total sales come from Gen Z.
• Related Link.

“My Skin Has Never Looked Better.”.

• “My skin has never looked better.” Caroline Leavitt (U.S. White House Press Secretary) told a Chosun Ilbo reporter. Born in 1997, she has over 2.5 million Instagram followers.
• After her visit to Korea, she purchased and posted proof of Chosun Beauty Ginseng Cleansing Oil, Propolis Serum, MediCube Zero Pore Pads, Torriden Hyaluronic Acid Serum, and MediHeal Mask Packs.
• “I love Korea and Koreans,” she said, adding, “I will definitely return one day.”
• Related Link.

12% of Train Tickets Cancelled on the Day.

• This explains why tickets are hard to book online but often available at the station.
• In September, 10.51 million KTX tickets were sold, of which 1.28 million were returned on the day of departure. 65% of cancellations occurred between three hours before departure and the scheduled time. SRT shows a similar pattern.
• Kang Gap-saeng (JoongAng Ilbo transportation reporter) analyzed, “Low cancellation fees are the root cause.” Even after penalties were raised—5% of fare for cancellations one day before departure, 10% up to three hours before departure, and 20% until departure time—many still book first and cancel last-minute.
• Related Link.

Worth Reading.

Showed It’s No Push-Over.

• Casually announced plans to build nuclear-powered submarines, then flipped the mood with a tense joke: “Is our communications security up to scratch?”
• This is the era of “dragon-flying, snake-slithering” diplomacy. Seo Ui-dong (Kyunghyang Shinmun columnist) assessed, “South Korea is stepping into a role as an ‘independent variable’ or ‘proactive actor’ amid increasingly turbulent Northeast Asian security dynamics.”
• Related Link.

Eulsa National Shame.

• Na Won-jun (Kyungpook National University professor) has been the most vocal critic of the tariff negotiations among progressive scholars. “The Democratic Party’s self-congratulation over accepting the ‘lesser evil’ instead of the worst is hypocritical,” he assessed, adding, “The Korean economy will have to repay dollar debts accumulated annually for over a decade like a slave.”
• Even with installment payments, the situation of handing $200 billion to the U.S. remains unchanged. There’s no reason for the U.S. government to offload profitable investments onto South Korea. While they cite ‘commercial rationality,’ it’s vague. How will they address industrial hollowing-out and fiscal deficits?
• This is no time to rejoice over receiving approval for the lesser evil from the overlord.
• Related Link.

AI Investment Chain: A Financial Theater?

• Morgan Stanley warned, “The AI bull market is nearing its seventh inning.” Or does it still have two innings left?
• Big Tech cash flows are slowing. Investments are rising, but revenue isn’t following. Some compare this to vendor financing during the dot-com bubble.
• NVIDIA invests $100 billion in OpenAI, which uses the funds to buy NVIDIA systems. NVIDIA then lends GPUs to OpenAI. Critics call it mere financial performance—hence the Financial Times’ critique: “It looks like financial theater.”
• AMD grants OpenAI a 10% new share subscription right, while OpenAI signs a $300 billion purchase agreement with Oracle—interlocking circular transactions. Microsoft invests in OpenAI, which then signs a cloud computing contract with Microsoft. NVIDIA owns CoreWeave shares while selling chips to it.
• OpenAI’s AI computing contracts with NVIDIA, AMD, Oracle, and others exceed $1 trillion. Yet its 2024 revenue is around $13 billion. Only 5% of its 800 million users are paying subscribers.
• The Wall Street Journal forecasts, “If OpenAI and competitors generate cash flows strong enough to justify massive capital spending, their efforts could yield extraordinary results.” Bloomberg warns, “Never before has so much capital flowed so quickly into unproven revenue-generating technology, despite its potential.”
• Ha Hyun-ok (JoongAng Ilbo columnist) cautioned, “Problems at one company could ripple through others, the AI industry, or even financial markets.”
• Related Link.