Return as Director, Get Tax Breaks.

• A strong currency stabilization measure has been announced.
• A Reshoring Investment Account (RIA) is being created for domestic market reinvestment. Sell overseas stocks, exchange them, deposit into RIA, and invest in domestic stocks for over a year
• Sell overseas stocks you hold
• Exchange them and deposit into RIA
• Invest in domestic stocks for over a year
• And the overseas stock transfer tax (22%) will be waived. The limit is 50 million won.
• Benefits vary by reinvestment timing: 100% waived in Q1 next year, 80% in Q2, 50% in the second half.
• Even currency hedging alone qualifies for reduced transfer taxes.
• The won closed at 1,449.8, down 33.8 points.

How Much Will Overseas Stock Transfer Taxes Decrease?

• If you bought $40 million worth of US stocks and made a $10 million profit, you currently pay 2.5 million won in taxes after deducting a 2.5 million won basic exemption.
• If you use that money to buy and hold Korean stocks within the first quarter of next year, the tax becomes zero won.
• Critics call this a “precision strike” on retail foreign investors.
• However, if you’re a big player already investing simultaneously in overseas and domestic stocks, simply moving accounts could reduce taxes by up to 50 million won.

Will It Work?

• Individual investors’ overseas stock holdings reached $161.1 billion as of the third quarter of this year. Even a 10% return would inject up to $20 billion.
• Lee So-young (Democratic Party lawmaker) pointed out, “If buying overseas stocks in other accounts remains possible, this will only cause tax losses without real benefits.”
• Lee Sang-min (Narasalim Research Institute researcher) criticized, “This undermines the principle of taxing where income exists.”
• Ahn Dong-hyun (Seoul National University professor) noted, “It shows how desperate the currency issue is, but the message becomes blurred when combining it with the goal of boosting domestic markets like Kospi 500.”
• Related Link.
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What Matters Now.

Law Passes to Impose Punitive Damages for Fabricated Information.

• Passed with 170 votes in favor, 3 against, and 4 abstentions.
• The bill mandates compensation of up to five times the damages if false or manipulated information is distributed with intent to harm or gain undue profit, infringing on personal rights, property rights, or public interest.
• “Others” here includes corporations.
• Claims to exclude politicians and high-ranking officials were rejected.
• Separately from damages, the Korea Communications Commission may impose fines of up to 1 billion won.
• The People Power Party boycotted, while Cheon Ha-ram (Reform Party lawmaker), Lee Ju-young (Reform Party lawmaker), and Jeong Hye-kyung (Progressive Party lawmaker) opposed. Park Joo-min (Democratic Party lawmaker), Son Sol (Progressive Party lawmaker), Yong Hye-in (Basic Income Party lawmaker), and Han Chang-min (Social Democratic Party lawmaker) abstained.
• Related Link.

Will Interim Rulings Have an Effect?

• Media facing damages lawsuits can request interim rulings to prevent suppression of legitimate criticism.
• While this adds a procedural step, it hardly constitutes a fundamental safeguard against strategic lawsuits.
• Some argue for safeguards like California’s: if lawsuits are filed maliciously to intimidate media, costs should fall on plaintiffs, or counter-suits should be allowed.
• In an editorial, Dong-A Ilbo argued, “Measures should be established to penalize plaintiffs who file suits knowing the report’s factual basis—either to block follow-up coverage or citations by other outlets—or to force them to pay up to five times the damages suffered by media and journalists if subsequent reporting proves the original claims true.”
• Related Link.

Repeal of Criminal Defamation for Truthful Statements, Sought by the President, Omitted.

• Conversion to a complaint-based offense was also dropped at the last moment.
• Even truthful statements can constitute defamation, and third parties—not just victims—can file complaints.
• Few countries worldwide criminally punish truthful defamation.
• The Democratic Party revised the bill multiple times until the final vote, reflecting intense internal debate.
• Woo Won-shik (National Assembly Speaker) unusually criticized it as a “very bad precedent” that “undermines trust in the legislative body.”

A Bill Proposed During the Moon Jae-in Administration.

• The Democratic Party proposed it in August 2021 but withdrew. At the time, it faced heavy criticism for shrinking press freedom.
• It was then a revision to the Press Arbitration Act; this time, it’s the Information and Communications Network Act—but the intent is the same.
• The scope has expanded to include online platforms and solo media creators.

The Core of the Issue.

• The problem lies in its potential for abuse to intimidate the press.
• If false information is maliciously spread to harm someone, it is already punishable today.
• Even if this law passes, it won’t enable punishment for media reports that cannot be punished now—and it’s not the case that current laws fail to punish reports that should be punished.
• Deliberate or malicious dissemination of falsehoods is obviously problematic, but this law solves almost none of it.

A Revised Press Arbitration Act Emerges.

• Proposed by Roh Jong-myeon (Democratic Party lawmaker), a former YTN reporter.
• It extends the correction request period from within six months to within two years after publication.
• Quoted reports are now included as arbitration subjects.
• It allows correction requests for editorials and commentaries—previously, only factual claims were contested, while opinions were exempt by convention.
• The bill mandates that corrections and rebuttals appear at the top of the original publication space.
• Shifting the burden of proof to media outlets has sparked significant controversy.

Progressive and Conservative Press Alike: “Exercise the Veto.”.

• Segye Ilbo called it a “disgrace to civilized nations” in an editorial. Chosun Ilbo criticized, “If this law had been in effect years ago, the Daejang-dong case might have been buried entirely.”
• Kyeonghyang Shinmun argued, “The president must exercise the veto power.” The Korea Times also emphasized, “The veto should be used to halt this.” Kookmin Ilbo published an editorial with the same stance.
• The Hankyoreh noted, “Concerns about shrinking press freedom are significant,” but did not mention the veto power.
• Related Link.
• Related Link.
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Deep Dive.

From the Presidential Office to the Blue House, Starting the 29th.

• At 0:00 on the 29th, the phoenix flag will be lowered at the Presidential Office and raised at the Blue House.
• The return to the Blue House marks 3 years and 7 months since the departure.
• Relocating to Yongsan cost 80 billion won; returning to the Blue House cost 50 billion won.
• When including costs like the Ministry of National Defense’s relocation, some analyses estimate the total exceeded 1 trillion won.

One Year After the Jeju Air Tragedy, Three Bereaved Families Have Left.

• Over 89% of bereaved families suffer from depression, and 54% from post-traumatic stress.
• 18% of forensic investigators deployed to the scene are experiencing PTSD.
• No responsible party has been punished yet. Jeju Air has received no administrative penalties.
• The accident investigation and police probe remain suspended.

“The Prosecutor We Wanted: One Assigned to Dongbu District Office.”.

• “We prepared for eight months.”
• The Hankyoreh revealed an internal Unification Church document titled “TM Special Report.” TM refers to True Mother, the term for Han Hak-ja (Unification Church Chairwoman), known as the “True Mother.”
• In August 2017, the Unification Church filed a complaint with Dongbu District Prosecutors’ Office against its third son, Mun Hyun-jin, on charges of embezzlement. This report likely pertains to efforts to influence the prosecution regarding the case.
• Around the same period, in a group chat involving Yoon Young-ho (then Unification Church head) and others, messages like “We need one and a half sheets of B,” and “Busy entertaining Dongbu District Prosecutors’ Office” were exchanged.

Jang Dong-hyeok’s Two-Birds-With-One-Stone.

• Despite low approval ratings and minimal presence, he is credited with solidifying his party standing.
• Jang Dong-hyeok (People Power Party Leader) breaking the 24-hour filibuster record while opposing the insurrection-dedicated court bill is assessed as a two-birds-with-one-stone move: overcoming a leadership crisis and rallying far-right supporters.
• Speculation arises that he will capitalize on this momentum to push through disciplinary action against Han Dong-hoon (former People Power Party Leader).

Government to Compensate Humidifier Disinfectant Victims.

• Government has acknowledged shared responsibility—15 years after the humidifier tragedy gained public attention.
• Products were sold from 1994. Causality was confirmed in 2011, and the Ministry of Environment began relief procedures in 2014.
• The government will compensate for medical expenses, income loss, psychological harm, and other damages.
• 914 victims are high school students or younger. 1,085 victims are in their 20s–30s.
• The government will assist with education, employment, and social integration for all affected.

Consumer Sentiment Index Falters.

• December’s consumer sentiment index hit 109.9.
• It rose sharply in November, then faltered after one month. A reading above 100 means people expect improvement; below 100 means they expect hardship.
• Prices are unsettling, and the exchange rate remains unstable. Expectations for rising home prices have increased.

U.S. Growth Surges, Widening the Gap.

• Third-quarter growth hit 4.3%. Personal consumption rose 3.5%.
• The U.S. is likely to outpace South Korea for the third consecutive year. Rate-cut prospects remain slim.
• U.S. growth is projected to hit 2.0% this year. For South Korea, the question is whether it will reach 1.0%.
• According to IMF’s 2025 forecast, South Korea is expected to grow 1.8%, while the U.S. grows 2.1%.

Another Take.

Special Court Assignment Won’t Free Yoon Suk-yeol.

• Most constitutional concerns were resolved during the legislative process. To avoid assignment disputes, multiple dedicated courts were created, with random case distribution.
• Yoon Suk-yeol (President) could request a constitutional review of the law, but courts are highly unlikely to accept it. He could file a constitutional complaint, but this would not halt proceedings.
• Expiration of detention deadlines is not a game-changer. A verdict on obstruction-of-arrest charges is due January 16. A prison sentence is likely, and prosecutors are preparing additional detention warrants.

Can Kim Byung-ki Hold On?

• He is not the only one. It was revealed that he used hotel vouchers from Korean Air, and there are also suspicions of exerting personnel pressure on Coupang.
• Two nights at the Seogwipo Kal Hotel Suite cost 1,648,000 won. The scale of the alleged favors could warrant not only a violation of the Anti-Corruption Act but also bribery charges.

Korea Zinc’s Rights Issue Ban Request Rejected.

• Choi Yoon-beom (Korea Zinc Chairman) and Youngpoong, which is contesting management control, filed an injunction to block the rights issue—but it was dismissed.
• Korea Zinc is investing $7.4 billion with the U.S. government to build a refinery in Tennessee, with the U.S. government set to acquire 10.6% of Korea Zinc’s shares as a long-term condition.
• This process would dilute Youngpoong+MBK’s stake, while Choi Yoon-beom secures the U.S. government (Department of Defense) stake as a friendly shareholder.

Shinhan Card Employee Leaked Personal Data.

• Twelve employees were involved.
• 190,000 personal records—including business registration numbers, company names, merchant addresses, phone numbers, names, and birthdates—were leaked.
• The breach was discovered during an investigation into a report filed with the Personal Information Protection Commission. Until then, Shinhan Card claims it was unaware. The Financial Supervisory Service has launched an on-site audit.
• Woori Card previously faced a 13.451 billion won penalty for a 200,000-record leak, also caused by internal misconduct.

“He Was Drunk at His Mother’s Funeral.”.

• Nam Joo-sung, son of Nam Kyung-pil (former Gyeonggi Province Governor), met with JoongAng Ilbo.
• Nam Kyung-pil said, “Drugs are not just a crime but a disease and an infectious condition,” adding, “We must make it known that drugs are pathetic.” Nam Kyung-pil created a nonprofit called NGU (Never Give Up), meaning “Don’t give up,” and became an anti-drug activist.
• Nam Joo-sung’s interview is a JoongAng Ilbo premium article. The print version contains little beyond the headline: “Unable to forget the first rush from a moment of youthful curiosity, I became endlessly addicted to that temptation.”
• The article ends there, quoting a friend’s invitation during his U.S. study abroad: “Want to try a hit?”
• Related Link.

The Fix.

Risk of Cancer Near Nuclear Plants Proven.

• Women over 65 living within 2km of nuclear plants had more than double the risk. Findings from Harvard T.H. Chan School of Public Health.
• Women over 65 faced a 6.78-fold higher risk of thyroid cancer.
• Data on cancer patients from 2000–2018 was analyzed by postal code.
• Related Link.

Theaters Go Subscription.

• The government is pushing a subscription-style movie ticket system. Will it work?
• A 24,000 won ticket allows viewing at 6,000 won per film. The government subsidizes 9,000 won, so users pay 15,000 won.
• Pay 15,000 won upfront and watch three films at 6,000 won each—it’s profitable. The duration remains undecided.
• Related Link.

ICYMI.

Trump’s Golden Key.

• Given to Kang Kyung-wha (Ambassador to the U.S.) during their meeting.
• A limited-edition gift of five made at the White House. Sent to Benjamin Netanyahu (Israeli Prime Minister), Taro Aso (Former Japanese Prime Minister), Elon Musk (Tesla CEO), Cristiano Ronaldo (soccer player), and the last one to Lee Jae-myung (President).
• Trump reportedly told Netanyahu, “Even after I leave office, showing this key at the White House gate will get you inside.”
• Related Link.

“Dad, Who Even Makes the Top 100 These Days?”.

• Words spoken by the middle school daughter of Lee Yong-kyun (Khan Newspaper Content Lab Editor). These days, it’s not an era where people follow the music others listen to.
• “Diversity is secured when one can reflect more deeply on oneself rather than follow others. Democracy develops on the foundation of diversity. The hope lies in the post-Top 100 generation.”
• Related Link.

Vocational High School Enrollment Rate at 127%.

• Specialized and Meister high schools saw enrollment rates of 160% and 125%, respectively.
• Vocational high school graduates with three years of corporate work experience can enter university through a special employment-based admissions track. Last year, 1,615 students advanced to higher education via this pathway.
• It’s a chance to catch two rabbits: early employment and university enrollment.

Worth Reading.

Consumer Revenge Takes a Decade, but It’s Never Too Late.

• Confucius said revenge takes a decade, and a decade of boycotts by angry consumers can change a company.
• The most powerful tool consumers have is the boycott. Shopping is as important as voting—this saying exists for a reason.
• Namyang Dairy’s management fell after a decade of boycotts triggered by its treatment of franchisees. Sales, once 1.365 trillion won, shrank to 952.8 billion won, and the company posted losses for five consecutive years starting in 2020.
• Uniqlo once sparked outrage with an ad mocking “comfort women.” An executive’s remark that “boycotts won’t last long” only fueled anger. Sales halved in 2020 amid the No Japan movement, and it recorded operating losses—but rebounded the next year, recovering to near-pre-boycott performance this year.
• SPC has faced multiple boycotts, yet parent company Paris Croissant’s sales keep rising. Operating profit dropped by 8.3 billion won the year after a boycott but has since grown again.
• Few know Paris Baguette is a Paris Croissant brand, and Paris Croissant is a private company 100% owned by the Huh family.
• Paris Baguette’s franchise model means boycotts hit franchisees hardest. Since 2022, closures have outnumbered new openings.
• Related Link.

Boycotts Alone Won’t Cut It.

• First, Coupang is already an irreplaceable platform in South Korea. Second, the Korean public is not particularly sensitive to personal data leaks.
• Lee Sang-heon (ILO Director of Employment Policy) emphasized, “Responding to Coupang’s monopolistic position is necessary.” “Without addressing this monopoly, temporary fixes for surface-level symptoms may be possible, but the root cause cannot be treated,” he explained.
• Whether one works for Coupang or uses its dawn delivery service is not the core issue. Lee Sang-heon pointed out, “If Coupang temporarily steps back to observe, and if no effective legal sanctions succeed over time, it will gradually return to the status quo—this is the power of monopoly.”
• If Samsung was the benchmark since the 1980s, Coupang is now the benchmark for Korean society. Coupang must change. The argument is that beyond boycotts, pressure should be applied for the government to devise solutions.
• Related Link.

Can the National Pension Fund Be Mobilized?

• Lee Chang-yong (Bank of Korea Governor) stated, “The National Pension Service’s timing and decision-making process for currency hedging are too transparent, causing market distortions.”
• JoongAng Ilbo emphasized, “When the National Pension Service engages in currency hedging, it has the effect of releasing dollars into the market,” adding, “The hedging method must become smarter.”
• The Korea Daily pointed out, “One must refrain from recklessly mobilizing the National Pension Service, which is retirement funds.”
• Related Link.
• Related Link.

Has Progressivism Declined? Radical Right Could Be Growing.

• According to a Gallup Korea poll, the proportion of self-identified progressives rose to 37% during the Moon Jae-in administration but has since fallen to 22%.
• The progressive ratio peaked at 32% immediately after the emergency martial law declaration, then dropped to 28% under the Lee Jae-myung administration and has stagnated around 26%.
• The conservative ratio fell to 21% during the Moon Jae-in administration, surged to 34% under Yoon Suk-yeol, and has shrunk to 27% under Lee Jae-myung.
• Jo Gui-dong (Min Consulting Strategy Director) analyzed this in two ways: First, college-educated middle-class voters—the Democratic Party’s core base—are shifting toward centrism. Second, many of the party’s policies are hardly distinguishable as progressive.
• “Political dissatisfaction seeks alternative outlets,” Jo warned, “In Korea, radical right-wing movements are more likely than fringe leftism to become the vent for public anger.”
• Related Link.

Let’s Test Yoon Suk-yeol.

• What would Yoon Suk-yeol do with this law? The idea is to run it through a stress test.
• When the Moon Jae-in administration reduced prosecutorial investigative powers, Yoon overturned it via an enforcement decree.
• When the Moon administration delayed revising the Broadcasting Act, Yoon appointed figures like Park Min (former KBS president) and Park Jang-beom (KBS president).
• What about yesterday’s passed law penalizing false and manipulated information? Had Yoon been given this law, the Biden-“kill him” controversy or the Newstapa interview manipulation scandal might have unfolded entirely differently.
• Since the administration has changed, this may not be the time for such discussions. Jeong Jae-hyeok (Kyeonghyang Shinmun columnist) emphasized, “We must escape short-sighted thinking that only considers ‘justice in my hand,’” adding, “That is the ethical responsibility of the ruling party entrusted with institutionalizing post-coup recovery.”
• Related Link.