Lee Hye-hoon nominated as first Minister of Planning and Budget.

• Lee Jae-myung (President) has nominated Lee Hye-hoon (former Saenuri Party lawmaker) as the first candidate for Minister of Planning and Budget.
• Lee Hye-hoon is a conservative figure who opposed the impeachment of Yoon Suk-yeol. She also served as policy chief for Kim Moon-soo’s (People Power Party candidate) campaign in this year’s presidential election.
• The Ministry of Planning and Budget was newly created by separating the budget and tax functions from the Ministry of Economy and Finance. The minister oversees budget formulation and fiscal planning.
• Lee Kyu-yeon (Chief of Presidential Communications) stated, “The power of unity will grow stronger, and the power of pragmatism will also grow stronger.”
• The People Power Party expelled Lee Hye-hoon. A commentary called it “the worst possible act of betrayal.”

Shouldn’t an Apology Come First?

• Lee Hye-hoon (Minister of Planning and Budget nominee) said, “I regret that briefly joining the anti-impeachment rally was a mistake.”
• Yoon Joon-byeong (Democratic Party lawmaker) criticized, “Entrusting the national treasury to Lee Hye-hoon—who shouted that Lee Jae-myung was a ‘rebellion leader’ and supported Yoon Suk-yeol’s rebellion—is not reconciliation but an abandonment of governance principles.”
• Lee Hye-hoon actually attended the anti-impeachment rally and shouted, “The impeachment motion was illegal” and “Forces shaking the nation, like the Democratic Party, are rebellion forces.”
• Backlash from the People Power Party is also fierce. Bae Hyun-jin (People Power Party lawmaker) unleashed heated criticism: “It is no different from collaborating with Japanese imperialism by selling one’s conscience and soul for career advancement.”
• Related Link.

What Matters Now.

From Today, the Blue House Era.

• At midnight, the phoenix flag will be lowered at Yongsan and raised at the Blue House.
• The president will also begin official duties at the Blue House.

Kim Sung-sik as Vice Chairman of the National Economic Advisory Council.

• Kim Sung-sik (former Bareunmirae Party lawmaker), a moderate conservative, has also been tapped in what is seen as a balanced personnel appointment.
• The political affairs special advisor is Cho Jung-sik (Democratic Party lawmaker), and the policy special advisor is Lee Han-joo (chairman of the Economic and Humanities Research Council).
• Kim Sung-sik was born in Busan, and Lee Kyung-soo (chairman of Inae Able Fusion), named vice chairman of the National Science and Technology Advisory Council, was born in Daegu. Some view this as a move anticipating local elections. Lee Hye-hoon was born in Seoul.

Ten Years Since the Japan Military ‘Comfort Women’ Agreement.

• Japan’s atonement has vanished, and victims have been left exposed to attacks. South Korea has fallen into a frame of being a country that breaks promises.
• The 2013 agreement between Park Geun-hye (then-president) and Shinzo Abe (then-Japanese prime minister) ignored the victims’ will and lacked Japan’s formal apology or legal compensation.
• Lee Jae-myung (president) has also stated, “It is not desirable for a nation to overturn its promises.”
• Among registered ‘comfort women,’ survivors have dwindled from 46 to 6 in the past decade.

Kim Beom-seok’s Too-Late Apology, But No Hearing Ahead.

• Kim Beom-seok (Chairman of Coupang Inc.) claimed, “I judged that producing tangible results rather than mere words of apology aligns with the public interest,” adding, “After continuous efforts over the past month, we have fully recovered 100% of the leaked customer data through cooperation with the government.”
• Observers overwhelmingly view Kim Beom-seok’s apology as a calculated response aimed more at the U.S. market than the Korean one—a narrative-building effort to establish legally favorable precedents.
• He also dismissed the controversy by stating, “A lot of misinformation has been circulating.”

Coupang’s English Apology Letter Was Different.

• “Unnecessary anxiety is being created” was rendered in the English version as “false insecurity.”
• “Despite facing unfair criticism” was sharpened to “falsely accused” in the English version.
• In the U.S., shareholders have filed a class-action lawsuit over disclosure violations and mismanagement.
• Observers speculate this reflects U.S. evidence law principles, where immediate denial of claims is required to avoid them being treated as factual.

Export-Domestic Gap Widens to 20-Year High.

• This year’s third-quarter export shipment index reached 116.2.
• The domestic shipment index stood at 92.0—lower than even pandemic levels.
• It has remained below the baseline of 100 for 12 consecutive quarters.
• A National Data Agency official noted, “The prolonged construction slump and the shift of production bases overseas are significant factors.”

Unending Suspicions Around Kim Byung-ki.

• Kim Byung-ki (Democratic Party floor leader) allegedly requested a job for his son at Bithumb, then instructed an attack on Dunamu, a competitor.
• A claim emerged that Kim told aides, “We must attack Dunamu,” adding, “Dunamu’s monopoly is a complete problem.” Kim insists, “This has nothing to do with my son’s employment.”
• Critics also allege that a customized recruitment notice was posted for Kim’s son. A Bithumb official stated, “We hire year-round.” Kim’s office argued his remarks were “only about industry issues.”
• A Democratic Party lawmaker interviewed by Kyunghyang Shinmun said, “It would be more appropriate for him to resign by his own decision, resolving the issue himself, than to be pushed out by the party.”
• Related Link.

Why Kim Byung-ki’s Wife Used the Dongjak District Council Corporate Card.

• “I barely used it in August. My wife used it all.”
• Newstapa reported a conversation between Cho Jin-hee (former vice speaker of the Dongjak District Council) and a Kim Byung-ki aide.
• Kim Byung-ki’s wife, identified as Lee, spent between 2.7 million and 3.7 million won over July and August 2022 using Cho’s corporate card. Circumstances emerged that Kim’s office moved to suppress the allegations as suspicions about his wife arose during his consideration as a Democratic Party secretary-general candidate.
• Cho handed the operational expense card to Kim’s wife the day after being elected vice speaker. When asked for reasons by Newstapa, Cho only said, “It’s not true. Please don’t bring up old wounds.”
• Kim’s wife was called “Madam Secretary” among aides. A staff member from Kim’s office interviewed by The Hankyoreh said, “I honestly had some ‘reality checks’ thinking, ‘Did I come here to work for Madam?’”
• In the ‘920 Communication Room’ Telegram chat obtained by The Hankyoreh, Kim’s wife gives instructions, and a Dongjak District Council member in the same chat replies, “I’ll confirm, Madam.”
• Related Link.
• Related Link.

Why the Democratic Party Remains Silent on the Kim Byung-ki Controversy.

• First, there are concerns it would burden the president and the Democratic Party’s approval ratings.
• Second, when Kang Sun-woo (then Minister of Gender Equality and Family) was a nominee, criticism focused on some lawmakers who mentioned her resignation. A floor leader is far more burdensome.
• Third, the Korea Daily analyzed that there is also a psychological desire to check Jeong Cheong-rae (Democratic Party leader). If Kim Byung-ki resigns, leadership could rapidly shift toward Jeong Cheong-rae.
• It could also stem from a sense of solidarity among colleagues—a reminder that few lawmakers are free from accusations of staff abuse.
• The JoongAng Ilbo analyzed, “For the Blue House, which views Jeong Cheong-rae with discomfort, it would be unwelcome for Kim Byung-ki, with whom they share high synchronicity, to step down.”
• Related Link.
• Related Link.

Unification Church ‘True Mother’ Document: “Japan Prefers Yoon Suk-yeol Over Lee Jae-myung.”.

• Kyeongyang Shinmun obtained a document titled “TM Special Report.” TM stands for “True Mother,” a reference to Han Hak-ja (Unification Church Leader).
• The November 2021 report from a Japanese Unification Church insider to Han Hak-ja states, “We deeply feel that Yoon Suk-yeol becoming president is Heaven’s will.”
• This is not merely a political opinion but adds weight to suspicions that the Unification Church systematically intervened in the presidential election.
• Related Link.

Donga Ilbo’s Person of the Year: Lee Jae-myung.

• Notable achievements included overcoming martial law, rapid normalization of state affairs, resolution of tariff negotiations, and hosting the APEC summit.
• Donga Ilbo does not select a Person of the Year annually.
• The 2000 joint selection of Kim Dae-jung (then President) and Kim Jong-il (then North Korean Defense Commission Chairman) was an exceptional event.
• Related Link.
• Related Link.

Deep Dive.

West Sea Civil Servant Shooting Case: All Acquitted.

• It was a complex case. In September 2020, a Ministry of Oceans and Fisheries official went missing near Socheongpo Island. The next day, he was shot and killed by North Korean forces, and his body was cremated.
• At the time, the Coast Guard announced, “He attempted self-directed defection due to gambling debts and personal despair, then was killed.” After the Yoon Suk-yeol administration took office, the Defense Ministry stated, “No evidence of defection intent was found,” and handed the case to the Board of Audit and Inspection, which concluded that the Moon Jae-in administration had systematically concealed the incident.
• After a three-year trial, the verdict was: “There is insufficient evidence to conclude the crime was intentional.”
• This does not mean the government’s judgment and announcement at the time were correct. It means the state’s moral responsibility and criminal liability must be distinguished.

Democratic Party’s Core Supporters Back Jeong Cheong-rae.

• “This is not a ‘Myeong-Cheong war’ but a clash between pro-Cheong and anti-Cheong factions. Jeong Cheong-rae is the most pro-Myung, so how can a Myeong-Cheong war make sense?” said a Democratic Party insider.
• Jeong Cheong-rae (Democratic Party leader) also remarked, “This is the intention of certain forces trying to sow division.”
• A key point is that Chosun Ilbo is amplifying the pro-Cheong vs. anti-Cheong framing. Choi Jae-hyuk (Chosun Ilbo political editor) analyzed, “The Democratic Party’s core supporters, dubbed ‘gae-ddal’ (crazy daughters), demand and fervently support Jeong Cheong-rae’s ‘hardline approach.’”
• “There are complaints that ‘the hands and feet don’t match’ regarding the unconstitutional controversies over the rushed abolition of the prosecution, the establishment of a rebellion-dedicated court, and the punishment of false information—yet the presidential office isn’t necessarily against the laws themselves.”
• Related Link.

Disappearance of the Jung Chang-cheol Drunk Driving Article.

• E. J. Jung (Hyundai Motor Chairman)’s son once caused a drunk driving accident and received a summary fine of ₩9 million.
• The 2021 article resurfaced as a controversy four years later. After Hyundai’s request, SBS and YTN deleted the article, while Yonhap News anonymized the name.
• Shim In-sung (Yonhap News Director of Editing) admitted instructing the revision: “It was an indisputably wrong judgment,” and offered “sincere apologies.”
• The SBS branch of the Korean Media Workers’ Union protested, “The editorial principle of ‘independence from all undue external pressures, including power and capital, was shamefully trampled.”
• SBS and YTN have since restored the article.
• Related Link.
• Related Link.
• Related Link.
• Related Link.

One Year After Jeju Air Tragedy: 1.2 Trillion Won Spent on Gyms and Roads.

• No compensation has been paid to victims’ families. The exact cause of the crash remains undisclosed.
• 35 billion won went to the Seungdalsan Sports Center, 13 billion to the Namak Oryong District access road, 41.2 billion to the Muancheon maintenance project, and 5.8 billion to a senior-friendly gymnasium.
• Though one might ask what gyms have to do with the crash, the funds were allocated under the guise of “revitalizing the local economy.” Residents even expressed guilt, saying, “It feels wrong to benefit unconnected to the tragedy.”
• A Ministry of Land, Infrastructure and Transport (MOLIT) official stated, “Considering fairness with other accidents, we couldn’t allocate more funds,” adding, “Separate compensation discussions are ongoing between Jeju Air and victims.”
• Critics highlight inherent limitations in MOLIT’s self-investigation, as the ministry oversaw the localizer mound—a cited crash factor.
• A year post-disaster, only 4 of 7 airports have completed azimuth correction work.
• Related Link.
• Related Link.

Another Take.

Dollar-Saving Campaign.

• Unlike the 1998 gold-collection drive.
• Pressure is mounting on retail foreign investors to sell stocks, with tax incentives dangled as bait. The Bank of Korea and the National Pension Service have extended currency hedging, while the pension fund is considering issuing foreign-currency bonds.
• Ha Hyun-ok (JoongAng Ilbo columnist) warned, “Policies driven by willpower alone boomerang.”
• If the $2–5 billion dumped into the forex market on the 24th stemmed from the National Pension Service’s hedging, it might amount to squandering citizens’ retirement funds into thin air.
• Will RIA (domestic repatriation accounts) work? “Critics sneer that investing in U.S. markets incurs taxes, while domestic investments lose principal—still, incentives remain weak,” one assessment reads.
• Yoo Kyung-jun (former Statistics Korea chief) noted, “Urgent fires must be put out, but clinging to stopgap forex measures based on flawed diagnoses is risky.” The weak won reflects Korea’s eroding fundamentals. While temporary rate suppression is possible, the government has never won a currency war.
• Related Link.
• Related Link.

The 51% Magic to Secure 100% Control: Why Opposing Eased Financial-Industrial Separation?

• Samsung Electronics and SK Hynix are known to hold approximately 100 trillion won and 20 trillion won in cash, respectively, but recent investment discussions are in the hundreds of trillions.
• SK Hynix plans to pour 600 trillion won into the Yongin cluster.
• While some analyses suggest SK Hynix will surpass Samsung Electronics in operating profit (100 trillion won) and has no long-term cash flow issues, risks remain. The semiconductor industry has long cycles. Forecasts already clash over whether this is a bubble, yet investments must be made with a five-year horizon.
• If the government eases regulations on holding companies and financial-industrial separation, SK Hynix plans to secure 50% ownership of an SPC (special purpose company) as a subsidiary. Samsung Electronics appears indifferent to the financial-industrial separation issue, but SK Hynix is desperate.
• Chey Tae-won (SK Chairman) owns not a single share in SK Hynix but will secure absolute control over it and its subsidiaries. This is the magic of 51% ownership. SK Hynix claims, “This is not a privilege but a correction of reverse discrimination.”
• Cheon Joon-beom (Vice Chairman of the Corporate Governance Forum) views financial-industrial separation as a conflict of interest issue.
• Separating control from business and exercising control proportional to ownership is the principle of holding companies. However, by the great-grandchild company level, leverage becomes excessive. Hence, great-grandchild companies are regulated to hold 100% ownership, but the proposed deregulation seeks to dismantle this principle.
• Cheon emphasized, “Who will check and supervise the controlling shareholder’s power? Who will be held accountable for losses or failures?”
• “‘How to control managers’ was a century-old dilemma, leading to the creation of ‘board-centric systems’ with expert oversight. We have not reached that stage yet.”
• “Our problem is that even when companies earn well, the remaining 70% see no distribution. This is the Korea discount. Those trading on KOSPI are the 70%, while the 30% controlling shareholders trade among themselves. Prices in the 30% market are higher. In other words, KOSPI remains undervalued and has room to rise.”
• Related Link.

Lee Jae-yong, Chung Eui-sun, and Chey Tae-won.

• Kim Woo-chan (Korea University professor) argues, “South Korea’s elite groups are captive to the chaebol-owning families.” Economic bureaucrats and legal professionals eye post-retirement rewards. University professors also have incentives like outside directorships and university donations. Media cannot ignore advertisers’ sensitivities.
• First, Lee Jae-yong (Samsung Electronics chairman) has Samsung Life’s stake in Samsung Electronics as his Achilles’ heel. Sub-regulations are neutralizing the Insurance Business Act’s 3% limit on affiliate investments.
• Second, Chung Eui-sun (Hyundai Motor chairman) has Hyundai Mobis’ circular equity structure as his Achilles’ heel. Voting rights should have been restricted since 2021, but the issue has been postponed.
• Third, Chey Tae-won (SK chairman) controls SK Hynix thanks to relaxed Fair Trade Act requirements for holding companies.
• Kim Woo-chan emphasized, “Dismantling concentrated economic power is not an outdated relic but an urgent task for economic development and democracy.”

The Fix.

South Korea’s Sea Level Rises 11.5cm Over 36 Years.

• It has risen by an average of 3.2mm annually.
• The East and West Seas are climbing more steeply, while the South Sea shows a relatively gentler pace.

Resident Registration Numbers Should Be Banned from Collection.

• The number was created for state management, not for corporate use. The conventional practice of collecting resident registration numbers must be broken.
• Jeon Jin-han (Director of the Right to Know Institute) emphasized, “Strict penalties are necessary, but reforming the very structure that allows easy access to personal information is crucial.”
• All citizens’ resident registration numbers have already been repeatedly leaked multiple times. Options such as replacing the latter half of the number with random digits or encrypting it could be considered.

ICYMI.

Autonomous Vehicle Insurance Claims 88% Lower.

• Analysis by reinsurer Swiss Re. Casualty claims were 92% fewer.
• Based on Waymo’s 40.7 million km driving data. Property damage and bodily injury claims were 9 and 2 cases respectively, while human-driven vehicles averaged 78 and 26 cases over the same distance.
• Related Link.

Autonomous Taxis’ Fatal Flaw.

• If a passenger leaves without closing the rear door, the vehicle cannot operate. So they dispatch a door-closing gig worker, paid $22–24 per call.
• Waymo plans to raise $10 billion to expand its service nationwide.

It’s Time to Talk About Neuro-rights.

• Chile enshrined neuro-rights in its constitution. Colorado, USA, proposed legislation to protect brain data.
• Research has shown that passwords can be stolen by analyzing brain waves. In the era of brain-computer interface (BCI) revolution, concerns about brain hacking are growing.
• “The real horror of *The Matrix* wasn’t machine domination. It was the anxiety of not knowing whether the reality I see and feel is truly ‘mine.’”
• Kim Seok-jae (author of *The Manipulated Human*) emphasized, “We need institutional safeguards to protect the certainty that our thoughts are entirely our own.”
• Related Link.

Payment Arrives 59.1 Days After Delivery.

• Daiso has the worst delayed payments, nearly hitting the legal limit of 60 days.
• Kurly took 54.6 days, Coupang 52.3 days.
• The industry average is 27.8 days. The Fair Trade Commission is considering revising the Fair Trade Act to shorten the 60-day rule for direct purchases to 30 days.

Where People Stay Longest: Nowon-gu.

• Seoul city survey results. Average residency increased from 6.2 years in 2021 to 7.3 years last year.
• Relatively affordable areas—Nowon-gu, Guro-gu, and Dobong-gu—had the longest stays: 9.3, 8.7, and 8.3 years respectively. Lower home prices correlated with longer residency and higher homeownership rates: 59%, 52%, and 51%.
• Gangnam-gu, Seocho-gu, and Songpa-gu had shorter stays: 7.1, 6.4, and 7.0 years. Homeownership rates there—37%, 40%, and 35%—fell below Seoul’s average of 44%.
• Related Link.

No 10-Million Movie in 14 Years.

• As of the 27th, this year’s cinema attendance stands at 104.25 million. A drop of nearly 20 million from last year’s annual total of 123.14 million.
• ‘Zootopia 2’ drew 7.32 million, ‘Demon Slayer: Kimetsu no Yaiba – To Unleash’ 5.69 million, and ‘Zombie Daughter’ 5.64 million.
• Domestic films hold a 41.4% market share.

Worth Reading.

AI’s Electrification Begins.

• Once you start using electricity, you can’t return to life without it. The same applies to water and gas. This is why AI is expected to transform human life. This phenomenon is called AI’s ‘electrification.’
• Jensen Huang (NVIDIA CEO) predicted, “AI will grow global GDP fivefold.”
• Son Jae-kwon (The Miilk CEO) emphasized, “The revolution has begun, and we must now ask sharp questions.” He warns that in 2025, long-ignored social costs will arrive as bills.
• “Can individuals maintain autonomy without being consumed by algorithmic recommendations? Can nations secure semiconductor and data sovereignty amid U.S.-China tech hegemony? And is society prepared to bear the inequality and alienation that come as the price of productivity gains?”
• Related Link.

South Korea’s Three Zeitgeists for 2026.

• Proposed by Kim Ho-ki (Yonsei University professor).
• First, an innovative leading nation. Without new growth, there can be no new distribution. A productive combination of new economic growth and a new social contract is needed.
• Second, the democratization of democracy. Constitutional revision and the establishment of pluralistic public forums are urgently required.
• Third, a foreign policy centered on national interest. In an era of every-nation-for-itself, South Korea must lead global agendas of peace and shared prosperity.
• Related Link.

Unsolvable Problems on Live TV.

• “Live-streamed official briefings and cabinet meetings that are ‘more entertaining than Netflix.’”
• Lee Jae-myung (President) remarked, “We’ve tried pressuring, intimidating, investigating, and scolding over industrial accident deaths, yet while large workplaces see fewer incidents, small ones are increasing. I don’t understand why.”
• He also noted, “I’m getting criticized a lot lately for Seoul and metropolitan housing prices, but there’s no solution.”
• Jeon Sang-in (Seoul National University professor) stated, “When policies hit dead ends, politicians often blame ‘structural issues’—but a president’s role is to confront those head-on.”
• “Every decision fundamentally boils down to a binary choice. If evidence is 90-10, a clerk decides; 80-20, a section chief; 70-30, a bureau chief. Only 50-50 issues reach the top.” That’s how tough it gets.
• Related Link.

Space Shapes Consciousness.

• Yoon Suk-yeol (then-president) uttered these words while pushing for the relocation of the presidential office.
• Cheon Gwang-am (Dong-A Ilbo editorial director) calls the 3 years and 7 months of the Yongsan presidential office a “Yongsan exile.”
• “The chaos and cascading side effects caused by its recklessness and impatience are more than enough to be likened to an exile,” he argues.
• “Most importantly, clarifying the ‘historical facts’ is essential. From the shamanic controversy to the true motives behind the Yongsan relocation, the site selection process, the circumstances of contractor selection and alleged favors, and the cover-up audit scandal—too many issues remain unresolved. Investigating these suspicions thoroughly and documenting them in the ‘historical draft’ is the first step to ensuring such a dark chapter as the ‘Yongsan exile’ is never repeated.”
• Today marks the announcement of the special prosecutor’s investigation results on Kim Keon-hee.
• Related Link.