Lone Star Loses Retrial Bid: Korea Owed Nothing.

• South Korea won a retrial to cancel the 2022 ISDS loss against Lone Star.
• The ICSID annulment committee voided Seoul’s obligation to pay the principal $216.5 million plus interest. Lone Star also bears the 7.3 billion won litigation cost.
• A total victory for the Korean government—saving approximately 400 billion won including accrued interest.
• Jung Hong-sik (Director General for International Legal Affairs, Ministry of Justice) explained, “The committee acknowledged procedural violations, including the deprivation of Korea’s right to present arguments and cross-examine witnesses during arbitration.”
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Han Dong-hoon Was Right.

• Han Dong-hoon (then Minister of Justice) led the annulment lawsuit.
• Predictions overwhelmingly deemed victory unlikely, and though criticism abounded that it was merely buying time with taxpayer money, he persisted—and ultimately overturned the ruling.
• It was indeed a decision carrying significant burden.
• Kim Min-seok (Prime Minister) stated, “The result of active litigation response by government agencies, centered on the Ministry of Justice,” but did not mention Han Dong-hoon.
• According to the International Centre for Settlement of Investment Disputes, from 1972 to 503 rulings, only 25 annulment requests were accepted—and only 8 saw entire tribunal rulings overturned.
• This underscores just how daunting the lawsuit was.
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Rereading the Illegal Sale of Korea Exchange Bank.

• Three points must not be overlooked.
• First, Korea Exchange Bank was a government-owned bank.
• Second, Lone Star was a private equity fund unqualified to become a major shareholder.
• Third, the Korean government approved this.
• It was a button misaligned from the start. When Lone Star announced its intent to sell and leave, the government delayed approval to buy time—only to face litigation. The lead prosecutors in the investigation were Han Dong-hoon and Lee Bok-hyun (former head of the Financial Supervisory Service).
• No one was punished in the Lone Star case. Despite widespread criticism of an illegal sale, the government never admitted fault—making it a legally sanctioned heist.
• Related Link.

Still Profited Over 5 Trillion Won Before Leaving.

• Lone Star acquired 51% of Korea Exchange Bank in October 2003 for 1.4 trillion won and sold it in February 2012 for 4.4 trillion won before exiting.
• Factoring in call options, dividends, and block sales during the period, the total investment was 2.1 trillion won, with recoveries amounting to 7.3 trillion won.
• While this suggests a profit of over 5 trillion won, Lone Star claimed losses due to delayed sales.
• They filed a $4.68 billion lawsuit, and after a decade-long arbitration, the South Korean government was ordered in August 2022 to pay $210 million in damages.
• Yet, the annulment lawsuit reversed this outcome after three years.

Winning Doesn’t Mean Winning: The 22-Year Lesson of Lone Star.

• Is this a victory for the Korean government? Not really.
• There were claims that if Korea Exchange Bank hadn’t been sold to Lone Star, another financial crisis would have occurred—but even if true, it doesn’t justify the illegal sale.
• At the time, the Financial Supervisory Service argued, “It wasn’t a distressed financial institution, but it fell under ‘etc.’ in the category of distressed financial institution resolutions,” yet Lone Star, as an industrial capitalist, could never legally become a major shareholder in a Korean bank under any circumstances.
• It’s more accurate to say the Korean government knowingly turned a blind eye, rather than Lone Star deceiving it. Officials like Byun Yang-ho (then Director General for Financial Policy, Ministry of Finance and Economy) framed the sale as a patriotic decision, and courts later acquitted them, making it nearly impossible to punish Lone Star.
• Who gave the greenlight to accept Lone Star’s sweet dollars and overlook minor illegality, all in the name of neoliberal reforms and global standards? That truth must still be uncovered.
• This was the trap of an IMF model state—bureaucrats who believed selling the nation was salvation, foreign investors with Korean roots legally siphoning blind money, and incompetent politicians who deferred to economic logic when judgment was needed, lacking principles or philosophy.
• It’s fortunate the government won’t pay damages to Lone Star, but the core issue remains: Korea’s own admission of a successful “eat-and-run” scheme must not be overlooked.

What Matters Now.

30 Trillion Won ‘Stargate UAE’ Participation.

• Lee Jae-myung (President) met with Mohammed bin Zayed Al Nahyan (UAE President).
• They agreed to expand the strategic oil reserve project—securing priority purchase rights during supply crises—from 4 million to 10 million barrels.
• Stargate UAE is an OpenAI-led data center: a maximum 5GW, over 150 trillion won project.
• They also agreed to increase joint nuclear power market entry and technology cooperation.
• Kang Hoon-sik (Presidential Chief of Staff) stated, “AI cooperation worth $20 billion, defense exports worth $15 billion, and other outcomes exceeding $100 billion are expected.”

Yoon’s Delusion: “Hold On Until Lunar New Year—My Approval Is Rising.”.

• These were remarks made in January of this year, when Yoon Suk-yeol (then-president) barricaded himself in the presidential residence and allegedly used the Presidential Security Service to obstruct the execution of an arrest warrant.
• Kim Jeong-hwan (then-head of the Security Service’s Intelligence Bureau), testifying as a witness in Yoon’s trial, described the situation: Yoon allegedly said,
• “The arrest warrants from the Corruption Investigation Office and police are illegal, so even if the Security Service blocks their execution, you won’t face criminal punishment. You’re doing the right thing. My approval ratings are slowly rising—if we hold out until Lunar New Year, everything will be resolved.”
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Choi Sang-mok’s Selective Memory.

• Choi Sang-mok (former Minister of Economy and Finance) appeared as a witness in Han Duck-soo’s (former Prime Minister) trial and delivered a scathing testimony.
• When the judge asked, “Did Han Duck-soo ever express opposition to Yoon Suk-yeol?” he replied, “I have no memory of such an incident during my tenure.”
• While Choi claimed he told other ministers, “Shouldn’t we try to dissuade the president?” this has not been cross-verified. He also allegedly protested to Kim Yong-hyun (then-Minister of National Defense), saying, “Does this make sense?” but there is no way to confirm his alibi.
• Choi’s account of a document he supposedly received from Yoon Suk-yeol also changed. He stated, “I received a folded note, put it in my pocket without reading the contents,” but CCTV footage showed it was not folded. He later offered an absurd explanation: “I wasn’t wearing glasses, so I only saw the paper, not the text.”
• Oh Chang-min (The Kyunghyang Shinmun columnist) pointed out, “He vividly remembers details unfavorable to others but cannot recall anything that might implicate himself—‘selective memory.’”
• Related Link.

“We’re Not ‘True Yoon’—This Is Unfair.”.

• Shin Dae-kyung (former Jeonju District Prosecutors’ Office chief), one of 18 prosecutors opposing the appeal abandonment, said this.
• “Labeling procedural questions as insubordination is unacceptable,” he argued, “We sought transparency and fairness in internal procedures—what political motive could there be?”
• Kim Hyun-jung (Democratic Party lawmaker) insisted, “They violated the National Public Officials Act—disciplinary action, not resignation, is warranted,” adding, “They shouldn’t just shed their uniforms, open law firms, and enjoy preferential treatment.”
• The People Power Party filed an abuse-of-power complaint against Jung Sung-ho (Minister of Justice).
• Related Link.

Deep Dive.

South Korea’s Nuclear-Powered Submarine: “A Nuclear Domino Trigger.”.

• “This is a stepping stone toward South Korea’s independent nuclear armament.” North Korea issued this comment, but two things are odd.
• First, nuclear-powered submarines are unrelated to nuclear armament.
• Second, North Korea—already a nuclear state—is hypocritical to invoke a “nuclear domino.”

From Everything Rally to Everything Crash.

• Stocks, crypto, and even gold all plummeted in tandem.
• Global investment sentiment shrank due to fears that U.S. rate cuts would be delayed. Concerns about an AI bubble persist, with some analysts suggesting NVIDIA’s earnings report could act as a trigger.
• The Kospi fell below 4,000 again, dropping to 3,954, while Bitcoin briefly broke $90,000 before recovering. Gold prices also dropped to 190,000 won per gram.
• There’s even talk that the only things rising these days are oil prices and the exchange rate.
• The CNN Fear & Greed Index hit 13 points—extreme fear territory.
• Related Link.
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Yoon: “Even If Shot, I’d Sweep Them All Out” (2022).

• Spoken at a November 2022 People Power Party leadership dinner. Just six months into his term, he may have already considered emergency martial law to resolve political crises.
• In 2024, he invoked “emergency powers” more frequently. In March, he said, “Shouldn’t the military step in?” In July, he called Han Dong-hoon a “red communist” and insisted, “The military must participate.” In October, he declared, “If Han Dong-hoon is brought to me, I’ll shoot him dead.”
• When Shin Won-sik (then-Defense Minister) protested to Kim Yong-hyun (then-Chief of Security), Yoon reportedly dismissed it: “Why take such remarks so seriously on psychological security grounds?” Days later, Yoon replaced the defense minister with Kim Yong-hyun.

Another Take.

Could the October 16 Measures Have Made a Difference?

• The October 15 measures reportedly designated regulated zones based on June–August statistics. Had September data been included, Eunpyeong-gu, Dobong-gu, and Jungnang-gu might have been excluded.
• Coincidentally, September’s statistics were released on October 15—one day after the policy decision—making it unavoidable.
• Park Joong-hyun (The Dong-A Ilbo columnist) assessed, “This appears to be a backlash from overzealous efforts to prevent the ‘balloon effect,’ where rising prices spill over to adjacent areas.”
• Related Link.

Evaluation Must Evolve in the AI Era.

• This is the proposal of Maeng Seong-hyun (Vice President of Taejae University).
• First, the ability to design prompts and structure problems is critical. One must frame ambiguous, multi-layered real-world issues into a form AI can analyze, incorporating diverse perspectives and assumptions into prompt design.
• Second, the capacity to critically review AI-generated outputs is essential. This includes identifying errors and biases, verifying evidence, and making necessary revisions and improvements.
• Third, the ability to integrate human values is required. This involves embedding and executing elements AI cannot replicate—such as empathy, collaboration, leadership, and accountability—into task outcomes.
• To teach these skills, “meta-teachers” who train educators are needed. They must develop AI-era-appropriate teaching methods and evaluation models, while providing ongoing mentorship.
• Related Link.

“Is This Where the Policy Chief Loses His Temper?”.

• At the National Assembly Steering Committee meeting, Kim Eun-hye (People Power Party lawmaker) suddenly asked Kim Yong-bum (Presidential Office Policy Director), “Who saved up the deposit for your daughter’s lease?” and pressed, “Did you buy a house through gap investment?”
• Even after Kim Yong-bum insisted, “It wasn’t gap investment—I paid the full interim payment,” Kim Eun-hye continued to press: “If you truly saw citizens as family, could you have reduced policy loans so drastically? Are you telling young people to just rent or live on monthly payments?”
• Kim Yong-bum retorted, “The government hasn’t reduced loans for youth—what are you talking about?” before erupting, “What nonsense is this about gap investment for a daughter who’s been living under the shadow of a civil servant father her whole life and still struggles with deposits?” Despite attempts by Woo Sang-ho (Senior Secretary for Political Affairs) and others to calm him, he couldn’t hide his agitation, snapping, “Just let me speak.”
• Only after Kim Byung-ki (Democratic Party floor leader, Steering Committee chairman) intervened repeatedly—“Policy Director! Policy Director! Policy Director! What do you think you’re doing?”—did Kim Yong-bum finally calm down.
• Related Link.

“Making a Mountain Out of a Molehill,” People Power Party Faces Disability Discrimination Backlash.

• Park Min-young (People Power Party spokesperson) sparked controversy by disparaging Kim Ye-ji (People Power Party lawmaker), saying, “The problem is that too many people with disabilities are being allocated,” and adding, “Apart from her visual impairment, she’s part of the entrenched elite.”
• Despite public calls for her resignation, the party issued only a mild warning.
• Pro-Yoon lawmakers are seething over Jang Dong-hyeok (People Power Party leader)’s rejection of her resignation with, “Let’s tough it out.” Kim Ye-ji is categorized as pro-Yoon.
• Song Eun-seok (People Power Party floor leader) asked reporters, “Why are you so fixated on internal matters and insist on sensationalizing them?”

Only 14 Regular Employees Among 750 at London Bagel Museum.

• 97% were non-regular workers.
• 63 industrial accidents occurred between 2022 and September this year.
• Evidence of 3-month “chopped-up” contracts also emerged. Turnover was high: 607 employees joined and 554 left last year.

The Fix.

World’s 7th Largest Coal Power Producer South Korea Joins Global Coal Phase-Out Pact.

• At COP30 (UN Climate Change Conference) in Belém, Brazil, the country declared, “No more coal-fired power plants without greenhouse gas reduction equipment.” Kim Sung-hwan (Minister of Climate and Energy Environment) stated, “We will phase out 40 coal plants by 2040.”
• Over 60 countries have joined, making South Korea the second in Asia after Singapore.
• Coal power still accounts for 28% of South Korea’s energy mix, with a capacity of 40GW—ranking 7th globally.
• Moon Joo-hyun (Dankook University professor) said, “Replacing 40 coal plants within 15 years won’t be easy.” Yoo Seung-hoon (Seoul National University of Science and Technology professor) argued, “Coal and nuclear remain stable for 24-hour power supply.”
• For reference, China’s coal power capacity exceeds 1,200GW.
• Climate Solutions emphasized in a statement, “Concrete plans must be presented and implementation started swiftly to ensure this declaration leads to tangible coal phase-out.”
• Chosun Ilbo criticized in an editorial, “Obsession with being an environmental model student must end,” adding, “It cannot become a playground for climate Taliban.”
• Related Link.
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How to Turn Regions Youth Flee Into Places Middle-Aged Return?

• Solutions must reduce housing costs without sacrificing access to major cities.
• According to the National Assembly Futures Institute, while young people flee population-declining areas classified by the Ministry of the Interior and Safety, the 50–64 age group is increasingly moving in. Incheon’s Ganghwa County saw a 3,157 increase in middle-aged residents over five years. Gyeongnam’s Yeongcheon and Miryang cities added 2,911 and 2,511 respectively.
• Min Bo-kyung (research fellow at the National Assembly Futures Institute) identifies quality of life and economic efficiency as key. The idea is to channel youth toward Seoul and the capital region while creating environments where middle-aged populations can relocate to nearby areas. Essential: medical and transportation accessibility.
• Related Link.
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Wasn’t Local Energy Production for Local Consumption a Yoon Suk-yeol Government Pledge?

• It means electricity generated locally should be consumed locally.
• Jeong Dae-ha (senior reporter at The Hankyoreh) proposed, “If the Yongin semiconductor cluster needs 10GW of electricity but must draw 7GW from other regions, the approach needs rethinking.” The idea is factories should relocate to where electricity is available.
• No one wants to live under a 345kV transmission tower. Jeong emphasized, “Energy democracy is more urgent than energy highways.”
• Related Link.

ICYMI.

490,000 Japanese Flight Tickets Canceled Under Chinese Travel Advisory.

• Within three days of Beijing’s advisory against Japan travel, 32% of all bookings were canceled.
• Three state-owned Chinese airlines (Air China, China Southern, and China Eastern) will offer free refunds for Japan-bound tickets booked through December.
• From January to September, 7.49 million Chinese tourists visited Japan, spending ¥1.6443 trillion. The tourism sector is bracing for significant fallout—some analysts predict a 0.3% GDP contraction.
• Japanese films are also banned, with releases indefinitely postponed.
• Observers note tensions could escalate to 2012 Senkaku/Diaoyu Islands crisis levels.
• Related Link.

Gangnam District Chief Owns 42 Homes.

• Analysis of asset disclosures from 2,581 senior officials (grade 4 or higher) revealed 49% were multiple homeowners. (Leaders Index analysis)
• 30% of Seoul’s properties were held by this group, with 42% concentrated in Gangnam’s three districts.
• Cho Sung-myung (Gangnam District Chief, Seoul) owned 42, Yang Jun-mo (Busan City Council member) 32, and Kang Hee-kyung (Vice President of Jeju National University) 31.
• Related Link.

Lettuce Prices Triple.

• Subway has halted sales of lettuce salads entirely.
• The wholesale price of 1kg of lettuce surged to 5,266 won, up 327% from 1,246 won in May. Poor harvests followed extreme heat and heavy rains.

Banpo Express Terminal to Be Redeveloped as 60-Story Mixed-Use Complex.

• Seoul City has selected Shinsegae Centum City as the preliminary negotiation partner.
• The Seoul Express Bus Terminal, where 4,000 buses pass daily, was completed in 1976. Its official land value alone exceeds 1 trillion won.
• The city plans to underground the terminal to alleviate traffic congestion and increase housing supply by developing it as a mixed-use complex.
• Related Link.

The Five Factions of MAGAism.

• First, the Republican Party’s working-class base. Largest in size and most loyal to Trump.
• Second, America First ideologues centered on white nationalism. Core of MAGA and highly influential.
• Third, economic populists. Anti-globalization, prioritizing domestic jobs, and advocating government intervention.
• Fourth, Christian evangelicals. Representative figures include the recently assassinated Charlie Kirk.
• Fifth, Big Tech right-wingers like Elon Musk (Tesla CEO). New mainstream of MAGA.
• Recent divisions within MAGA stem from the Epstein files. There were allegations that Democratic establishment figures like Bill Clinton (former U.S. President) and his wife were involved in child sex trafficking—though no evidence exists—and Trump was implicated instead. Clashes also erupted over visa expansion with figures like Elon Musk.
• The rift between Marjorie Taylor Greene (U.S. House Representative), a leading MAGA congresswoman, and Trump is also concerning.
• The House plans to vote on releasing the Epstein files, and Trump’s sudden push for a yes vote reflects fears of mass defections within the Republican Party. Observers speculate this could escalate into full-scale civil war within MAGA ahead of midterm elections.
• Related Link.

Worth Reading.

KOSPI 5,000 Requires National Pension Stewardship Code.

• Kwak Jung-soo (Senior Reporter, Hankyoreh) proposed this. Steward refers to a custodian. Stewardship means that pension funds like the National Pension Service must actively exercise voting rights to protect subscribers’ interests.
• Japan’s stock market quadrupled compared to 2008 due to aggressive corporate governance reforms and capital market modernization. Kwak Jung-soo assessed, “The National Pension Service introduced the Stewardship Code early in the Moon Jae-in administration, but in practice, it has done nothing and remained passive.”
• Kwak Jung-soo emphasized, “The most urgent task to achieve KOSPI 5,000 is appointing individuals with the will and capability to improve corporate governance as leaders of the National Pension Service and the Korea Exchange.”
• Related Link.

How to View Chinese Solar and Electric Vehicles.

• Isn’t this just letting China do all the good things? Kim Byung-kwon (Director, Green Transition Institute) warned, “The longer we delay expanding renewable energy and transitioning to electric vehicles under the pretext of a flood of Chinese products, the wider the gap will grow between Korea and China in green technology and competitiveness—and eventually, Korea’s green industry will collapse.”
• The longer we delay, the higher our dependence on China will become.
• Zoom out. Nuclear power is a $40 billion market (and could grow larger under Trump’s expansion), but solar is a $250 billion market, with wind and batteries exceeding $170 billion and $120 billion, respectively. Where lies the greater opportunity?
• Kim Byung-kwon emphasized, “Before becoming an AI powerhouse, we must first become a green powerhouse.”
• Related Link.

Whose Side Are You On?

• Ko Jeong-ae (Editor-in-Chief, JoongAng Sunday) warned, “Whether it’s about respecting the Constitution or purging past wrongs, if you start asking public officials ‘whose side are you on,’ the system breaks down.” This is what allegedly happened with the National Intelligence Service, Ministry of Foreign Affairs, courts, prosecutors, and police.
• “Ambition-driven individuals will face consequences of their choices, while the unambitious will dutifully collect their paychecks. As for ordinary citizens? Can the best—or even second-best—policies emerge through deliberation in such a system?”
• Related Link.

Are the Wealthy Overrepresented in Policy Discussions?

• Plans are under review to raise the inheritance tax spouse deduction and lump-sum deduction from 500 million won to 1 billion and 800 million won, respectively. The government stepped in after hearing stories of families forced to sell their only home to pay taxes.
• If a spouse and two children inherit an 1.8 billion won apartment, they currently pay 99 million won in taxes—but under the proposed system, they would pay nothing.
• The lump-sum deduction alone would reduce tax revenue by over 3 trillion won over five years. Including the spouse deduction, the loss would grow further.
• In an editorial, Hankyoreh questioned, “How many households owning apartments this expensive have no other income that they must sell their home to pay inheritance tax? Even if such cases exist, should lawmakers prioritize protecting such asset holders?”
• Related Link.
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Don’t Be Deluded.

• Don’t mock non-regular workers, subcontractors, job seekers, daily laborers, platform workers, and special-employment workers just because your salary arrives steadily in your account. This is a warning from Jung Bo-ra (author).
• “You are the last generation of regular workers in your family. You won’t retire with a pension. Your children, grandchildren, and their descendants won’t even find non-regular jobs—they’ll drift between daily labor, platforms, and special employment. It’s your fault. You blocked their future and destroyed it. To feed your children and grandchildren, you’ll have to cling to those regular jobs with steady paychecks, become slaves to capital, and work forever.”
• Jung Bo-ra emphasized, “Solidarity is the only way to survive and the only path to the future.” These obvious truths—“abolishing non-regular employment and legally guaranteeing workers’ dignity so all laborers can live decently”—sound startlingly new these days.
• Related Link.