Kang Sun-woo’s Exit? Expulsion.

• Kang Sun-woo (Democratic Party lawmaker), under suspicion of nomination bribery, has left the party. The Democratic Party held an emergency meeting and expelled Kang.
• Technically, one cannot be expelled after leaving the party. However, if the Ethics Tribunal deems the case warrants expulsion-level discipline, even a future reinstatement request will carry the same effect as expulsion—a de facto expulsion process.
• The party’s swift response signals how serious the situation is. Lee Chae-myung (Democratic Party leader) has ordered an ethics investigation by Kim Byung-ki.
• Related Link.

Kang Sun-woo’s 100 Million Won: Inconsistent Accounts.

• Kang Sun-woo claimed, “I instructed my aide to return the money and confirmed it was returned.” He admitted to initially receiving the funds. According to the recording, Kim Byung-ki (former Democratic Party floor leader) also said, “The money must be returned.”
• Kang’s aide claimed, “I know nothing about it.”
• Kim Kyung (Seoul city council member) asserted, “I have never provided money or gifts to anyone in exchange for a nomination.”

What Matters Now.

Kang Sun-woo’s Mystery.

• Why did he not immediately return the 100 million won but instead seek out Kim Byung-ki? Chosun Ilbo analyzed, “There is a possibility Kang Sun-woo was being blackmailed by Kim Kyung.”
• The circumstances of Kim Kyung’s sole nomination also remain unclear. At the time, multi-homeowners were subject to cutoff criteria, yet Kim Kyung owned five houses in Seocho-gu and Jongno-gu, along with five commercial properties in Gangnam-gu and Seocho-gu. The real estate value alone amounted to 5.3 billion won.
• Related Link.

Petition Claims Money Given to and Returned from Kim Byung-ki.

• Former Dongjak-gu council members submitted a petition to the Democratic Party. It stated that ahead of the 2020 general election, they handed 10 million won and 20 million won to Kim Byung-ki (former Democratic Party floor leader) and received the money back 3–5 months later.
• The petition was sent to Lee Jae-myung (then party leader) in December 2023. According to Lee Su-jin (former Democratic Party lawmaker), Kim Byung-ki suppressed it. Precedents indicate that merely accepting funds constitutes a violation of the Political Funds Act, regardless of subsequent returns.
• Kim Byung-ki’s wife repeatedly appears in the narrative, with specific details. When 10 million won was given to her, she reportedly declined, saying, “Too much for a Lunar New Year gift, insufficient for a nomination donation.” Days later, she asked, “Give me the money the madam mentioned,” and it was handed over again. Another former council member claimed to have given 20 million won to Kim Byung-ki’s wife and later received it back in a shrimp cracker bag.
• Lee Su-jin told a Hankyoreh reporter, “I submitted the petition to the party leader’s office with the intent of saying such a person is unfit to be chairman, but it was given to Kim Byung-ki, and the two petitioners were never summoned.”
• Related Link.
• Related Link.

Two Offers to Yoo Seung-min for Prime Minister.

• First was in February last year, during Yoon Suk-yeol’s impeachment trial. A Democratic Party lawmaker visited Yoo Seung-min (former Bareun Party lawmaker) and proposed he become prime minister if they came to power—an offer he declined.
• Second was in May last year, just before the presidential election. Kim Min-seok (then Democratic Party lawmaker) called multiple times, and Lee Jae-myung (then Democratic Party candidate) also left messages, but received no response.
• The Moon Jae-in administration also reportedly considered recruiting Yoo Seung-min. According to Kim Kyung-soo (former Democratic Party lawmaker), the proposal was never actually made.
• Related Link.

Deep Dive.

Where Does Cho Kuk Stand?

• Cho Kuk (leader of the Cho Kuk Innovation Party) remains undecided. In a hypothetical mayoral matchup in Busan, he trails Park Hyung-joon (Busan mayor) at 32% to 30%. In this scenario, 27% of Democratic Party supporters responded, “No candidate to support.”
• Jeon Jae-soo (former minister of oceans and fisheries) remains a dominant figure in Busan. A JoongAng Ilbo poll showed Jeon Jae-soo vs. Park Hyung-joon at 39% to 30%, outside the margin of error. However, the allegation of receiving funds from the Unification Church remains a significant variable until resolved.
• Speculation about running for Seoul mayor or Gwangju mayor has also emerged.
• In Seoul, Jeong Won-o (Seongdong-gu mayor) is a strong contender. Polls vary, but he remains in a tight race within the margin of error against Oh Se-hoon (Seoul mayor). Park Joo-min (Democratic Party lawmaker) often trails Jeong Won-o in surveys.
• Related Link.

New Year Addresses from China and Japan.

• Xi Jinping (Chinese President) emphasized “One China” and declared, “National reunification cannot be obstructed.”
• Takaichi Sanae (Japanese Prime Minister) stressed “a strong Japan.” She left a New Year message stating, “We will not fear change and carry out necessary reforms.”
• The diplomatic stance of Lee Jae-myung (President) during his visit to China has also grown complex. The U.S. and Japan view Lee as pro-China. There are observations that Lee’s pragmatic diplomacy is being tested.

U.S. Flags Concerns Over Network Act.

• It criminalizes false and manipulated information. It passed the National Assembly last month and was approved by Lee Jae-myung (President).
• The U.S. State Department stated, “This law negatively impacts U.S.-based online platform businesses and undermines freedom of expression,” adding they hold “significant concerns.”
• Sara Rogers (U.S. Undersecretary of State) criticized on X, “South Korea’s network law appears superficially focused on addressing deepfakes but in reality has far broader implications and threatens technological cooperation.”
• The U.S. government views digital regulations as non-tariff barriers. Attempts to persuade the U.S. during the bill’s drafting failed to bridge differences.
• While the U.S. government appears concerned about South Korea’s freedom of expression, it’s likely that lobbying by Big Tech firms like Google or Meta played a role behind the scenes.
• Related Link.
• Related Link.

Strengthening Platform Accountability: Preemptive Deletion Allowed.

• Digital Justice Network has long opposed the Information and Communications Network Act, arguing it stifles freedom of expression. Their concern is that platform operators could arbitrarily block or delete posts.
• The bill, pushed through despite domestic concerns, may also escalate into a trade dispute.

Oh Se-hoon: “Cannot Endorse Martial Law.”.

• His approval ratings may have fallen enough to provoke a sense of crisis. Oh Se-hoon (Seoul mayor) told Jang Dong-hyeok (People Power Party leader) during their meeting, “I’ve held back as long as I could,” adding, “I hope no one justifies or endorses martial law.”
• Hardliners in the People Power Party pushed back. Jang Ye-chan (deputy director of Yeouido Research Institute) criticized, “After serving as Seoul mayor for so long, one might first need humble self-reflection on why approval ratings have hit rock bottom.”
• Na Kyung-won (People Power Party lawmaker) added, “No one can be protected by language of self-denial, self-blame, or division.”
• There is also a possibility that Oh Se-hoon and Han Dong-hoon (former People Power Party leader) could join forces.
• Related Link.

All Roads Lead to Police, Sword Handle Passes to Police.

• Police now handle cases passed by the three special prosecutors. It is time to demonstrate political independence and investigative capability. This comes as the prosecution service is set to be abolished in October this year.
• Critics argue police are more vulnerable to political interference.
• A police official interviewed by Kyunghyang Shinmun said, “Prosecutors can leave their posts and become lawyers, but police often struggle to even reach retirement age, making them inherently weaker against power.”
• Related Link.

Last Year’s Exports Hit $709.7 Billion.

• A record high. Growth rate: 3.8%.
• Semiconductors accounted for $173.3 billion, a 24% share.
• Automobile exports also performed well. While shipments to the U.S. fell by nearly 14%, exports to the EU and others increased. Total: $72 billion.
• Related Link.

Another Take.

Why Do People Power Party Supporters Oppose the Unification Church Special Prosecutor?

• Among People Power Party supporters, 50% opposed and 43% supported the Unification Church special prosecutor, which the party itself had initially proposed. Democratic Party supporters showed 84% support and 13% opposition. This is from a joint survey by The Hankyoreh and STI.
• It implies that even supporters believe the damage to the People Power Party will be greater.
• While 62% of Democratic Party supporters said the economy had improved, 84% of People Power Party supporters said it had worsened.
• Related Link.

Job Applications Require 12.7 Specs.

• This is based on an analysis by Education Spring of 159 recruitment notices from Korea’s top 1,000 companies. Excluding 17 “no-spec” positions, 142 were analyzed, revealing that 120 required at least 10 qualifications.
• Many companies use a “department store”-style application format demanding overseas experience, certifications, volunteer work, and official language scores.
• When the Korea Daily surveyed 61 young people, they averaged 2.6 certifications each.
• According to the Catch platform, monthly job-prep costs average around 280,000 won.
• Related Link.

Seoul Apartment Prices Rose 8.7% Last Year.

• “Smart single-property” dominance intensified. Higher than during the Moon Jae-in administration.
• Songpa District rose 20.9%, Seocho and Gangnam by 14.1% and 13.6%. The so-called “Mayusung” areas also surged: Mapo 14.3%, Yongsan 13.2%, Seongdong 19.1%.
• Gangbuk, Dobong, and Jungnang Districts saw gains under 1%.

EV Chasm: Battery Outlook Remains Grim This Year.

• The U.S. government’s shock scrapping of electric vehicle subsidies hit hard. LG Energy Solution lost its Ford contract.
• SK On delayed battery plant expansion, while SKC abandoned plans to enter the cathode material market.
• Chinese CATL and BYD’s market share rose from 25% in 2020 to 54% as of last October. South Korea’s Big 3 battery makers’ share fell from 39% to 17%.

U.S. Mandarins Entering Duty-Free.

• U.S. mandarin imports are expected to double this year. The tariff, which started at 144% in 2012, has decreased by 9.6% annually and will drop to 0% this year.
• Imports grew from 0.1 tons in 2017 to 7,619 tons by August last year.
• Related Link.

The Fix.

Paper Carton Separation Begins This Year.

• Must be discarded separately from paper.
• Paper cartons are neither paper nor trash. Made from premium pulp but lined with polyethylene film, only 19% are recycled.

Regularization Bonus: 600,000 KRW Monthly for Permanent Hires.

• The Ministry of Employment and Labor allocated 6.9 billion KRW for this program. Companies receive 600,000 KRW monthly for up to a year if converting non-regular workers to permanent roles increases wages by at least 200,000 KRW—otherwise, 400,000 KRW is paid.
• Businesses with fewer than 30 employees can claim support for up to 30% of their employment insurance enrollees.

Aging Is Inevitable, but Frailty Can Be Reversed.

• Aging is like a battery’s maximum charge capacity decreasing. A body that charged to 100% in one’s 20s might only reach 90% in one’s 40s and 80% in one’s 60s. With proper care, it keeps running.
• Aging comes to everyone, but frailty does not. Frailty is a system breakdown. It drains quickly, overloads easily, or fails to recharge. It can shut down without warning.
• Jang Il-young (Sungkyunkwan University professor) advised, “Just as a battery can be repaired, frailty can be reversed.” The point is that aging cannot be undone, but frailty is treatable.
• When Professor Jang’s team conducted a 24-week complex intervention program in Pyeongchang County, Gangwon Province, the intervention group gained 6.5 months of independent survival time compared to the non-intervention group. Medical costs decreased by 11 million KRW. The program cost? Around 1.2 million KRW.
• The key was improving sarcopenia.
• “A satellite in a lower orbit must not slow down but accelerate to gain centrifugal force and regain altitude. To reverse frailty, one needs not conserve energy but consume more protein and exercise muscles more intensely than usual.”
• Related Link.
• Related Link.

Less Snowfall.

• Average snowfall in the 1980s was 38.3cm, but dropped to 21.9cm in the 2020s.
• Gangwon Province saw an increase from 37.1cm in the 1980s to 108.3cm in the 2010s, but fell to 50.9cm—half that level—in the 2020s.
• Busan-Ulsan-Gyeongnam region decreased from 6.9cm to 0.1cm.

Local Governments Spend 3.0172 Trillion KRW on Birth Incentives.

• It has tripled in two years. Cash support accounts for 80%.
• Concerns arise that this is becoming a zero-sum competition to steal populations rather than raise birthrates.
• In an editorial, Dong-A Ilbo emphasized, “To sustain the hard-won rebound in birthrates, investments must focus on region-specific job creation and improving living conditions for childcare, education, and settlement.”
• Related Link.

ICYMI.

Emails to Provincial Council Members Yielded a 12% Response Rate.

• 12% responded. Overseas studies report around 50%.
• A joint study by Park Sun-kyung (Korea University professor) and others. After sending emails detailing economic hardships during the COVID-19 pandemic and requesting information on government support programs, 94 out of 807 council members replied.
• Related Link.

Three Investment Lessons from Last Year.

• Advice from Choi Jeong-hyeok (Hanyang Cyber University professor).
• First, don’t panic-sell during sharp declines. Look at the S&P 500: after a 19% drop, it rebounded 38% a week later.
• Second, don’t use PER (price-to-earnings ratio) to time peaks or troughs. There’s no such thing as a “fair” PER. There’s only market expectations and actual earnings.
• Third, avoid currency hedging. The key is to ignore short-term market noise and focus on reducing structural risks.
• Related Link.

60,000 Times.

• Warren Buffett (Chairman of Berkshire Hathaway)’s cumulative return over the past 60 years.
• With $151 billion according to the Bloomberg Billionaires Index, he ranks as the world’s 10th wealthiest person.
• In last year’s Thanksgiving letter announcing his retirement, he left this advice: “Don’t torment yourself with past mistakes. Learn a little from the experience and move forward. Even now, at this very moment, you can improve.”
• Related Link.

Swore In with the Quran.

• Eric Adams (New York City mayor) was inaugurated. The first Muslim mayor. The first to swear in with the Quran instead of the Bible.
• At 34, the youngest mayor in city history.
• Universal childcare and free buses are projected to cost $6 billion and $800 million annually, respectively.

Imported Mackerel: 10,000 Won for Two Fish.

• Two fish make a handful. Prices surged 29% in a year.
• Most are Norwegian imports. Domestic mackerel stocks have collapsed.

162 School Violence Perpetrators Rejected.

• 90% of school violence perpetrators who applied to flagship national universities were rejected. The effect of deducting up to 200 points.
• Even a 5-point reduction can drop academic records by 1–2 grades.
• Seoul National University had no applicants with a history of school violence. Kangwon National University had the most rejections, with 37.

Melania Trump’s Amazon Guarantee: $40 Million.

• Amazon Prime’s documentary is titled ‘Melania.’
• 5.73 billion won is excessive for an appearance fee. While some praise the “Titanic-esque mise-en-scène,” others call it de facto bribery.
• Related Link.

Worth Reading.

What to Expect from ‘Yoon Again’?

• Chosun Ilbo is cajoling and urging Jang Dong-hyuk (People Power Party leader) to cut ties with Yoon Suk-yeol.
• The People Power Party’s approval rating fell to 19% even in the Daegu-Gyeongbuk region by late December (NBS survey). Kim Young-soo (TV Chosun advisor) warned, “A disaster caused by incompetent leadership.”
• The conservative camp views Lee Hye-hoon (nominee for Minister of Planning and Budget)’s defection as a crisis signal. Kim Young-soo analyzed, “While the People Power Party remains trapped in ‘Yoon Again,’ the ambitious advance to claim the vacant moderate conservative and centrist ground.”
• “The fear dominates Chosun Ilbo’s pages: if the Democratic Party wins even local elections, the People Power Party might split.”
• Related Link.

Gloomy Statistics? This Year Could Be Even Worse.

• Kim Yong-beom (Blue House Policy Secretary) called the Household Finance and Welfare Survey results—showing widening asset inequality—“a very sad, shocking, and gloomy set of statistics.” Since the data is from March last year, the Lee Jae-myung administration bears no responsibility.
• Ryu Yi-geun (Hankyoreh columnist) predicted, “This year’s statistics are likely to be even more depressing.” The KOSPI has surged nearly 70% since the survey’s reference date. Real estate prices are also breaking historic highs.
• Money begets money. The more assets one has, the faster they grow.
• Ryu criticized, “It’s concerning that South Korea’s stock market—where taxes are virtually nonexistent—is now proposing to cut dividend taxes and even reduce capital gains taxes on overseas stocks.”
• Related Link.

The People Power Party’s Futureless Reality.

• Shin In-gyu (CEO of “Rebuild the Party”) analyzes.
• Approval ratings are at rock bottom, yet Jang Dong-hyuk (People Power Party leader) is euphoric alone. He’s filibustering for 24 hours, trapped in narcissism.
• Oh Se-hoon (Seoul mayor) is tripped up by Myeong Tae-gyun,
• Hong Joon-pyo (former Daegu mayor) is out of the house, causing a ruckus.
• Han Dong-hoon (former People Power Party leader) is enjoying YouTube lives and talk concerts. He may crave party leadership more than elections.
• Lee Jun-seok (Reform Party leader) talks about governing the world without governing himself.
• Shin In-gyu assessed, “No group makes the word ‘collapse’ feel so real,” adding, “Not even sympathy or sorrow arises.”
• Related Link.