Second Special Prosecutors Bill to Be Processed Today.

• Proposed by the Democratic Party, the People Power Party and Reform Party have launched a filibuster. It will likely be forcibly terminated and passed after 24 hours.
• Rep. Cheon Ha-ram (Reform Party), leading the filibuster, argued, “What’s needed now isn’t a second special probe to posthumously dismember dead power, but a Unification Church special probe and nomination special probe to excise corruption in living power.”
• The second special probe addresses allegations that Yoon Suk-yeol (former president) sent drones to North Korea to provoke military aggression, plots to dissolve the National Assembly recorded in former Intelligence Command Chief Roh Sang-won’s notebook, and suspicions surrounding Kim Keon-hee (Yoon’s wife) and the Yangpyeong Expressway.
• In an editorial, JoongAng Ilbo criticized, “It’s enough to raise suspicions that ‘infinite special probes’ could be deployed until desired results emerge.” The Korea Herald also noted in an editorial, “The Democratic Party’s behavior is self-contradictory.”
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“Won Weakness Doesn’t Match Korea’s Fundamentals.”.

• Words from Janet Yellen (U.S. Treasury Secretary) to Choo Kyung-hwan (Minister of Economy and Finance). Speculation suggests prior coordination with the Korean government.
• Even the U.S. may have had pragmatic motives: defending its trade deficit and boosting American investment.
• The intervention did work temporarily—exchange rates, which had neared 1,480 won, dipped slightly to 1,468. Most analysts agree that while the government’s resolve to defend the won is strong, curbing dollar demand will remain difficult.
• Chosun Ilbo offered a different take: “Yellen’s effect lasted less than three hours.” Their critique suggests the rhetoric has bred immunity, instead fueling dollar hoarding, and the 1,500-won threshold remains perilously close.
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“BOK Printed Money and Raised the Exchange Rate? Journalists Should Check the Data.”.

• “It hurts and angers me. How can one write such a story without fact-checking?”
• Lee Chang-yong (Bank of Korea Governor) strongly criticized media reports. The Bank of Korea kept the base rate unchanged at 2.5%—the fifth consecutive freeze since May last year.
• Lee emphasized, “For three years, my top priority has been household debt, and we halted the rising trend of money supply (M2).” Indeed, the household debt-to-GDP ratio, which peaked at 99.1% in 2021, fell to 89.7% in the second quarter of last year.
• Analysts suggest the rate-cut cycle may have ended. The omission of the phrase “whether to cut further” in the BOK’s statement is a key signal.
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What Matters Now.

First Ruling in Yoon’s Arrest Obstruction Case Today.

• Yoon Suk-yeol’s first verdict among eight cases. The trial will be broadcast live starting at 2 PM.
• The charge involves obstructing the execution of an arrest warrant at the presidential residence in January last year. The special prosecutors requested a 10-year prison sentence during the final hearing on the 26th of last month.
• Presidential security officials testified, “We were instructed to stop them even if it meant shooting,” but Yoon countered, “These are all hearsay with no evidentiary value.” The special prosecutors insisted all claims were proven with objective evidence.

Han Dong-hoon to Be Given a Retrial Opportunity.

• Jang Dong-hyeok (People Power Party Leader) stepped back. Criticism was fierce that Han Dong-hoon (former People Power Party Leader) was not given a proper chance to explain himself.
• So, they decided to hold a retrial and provide sufficient opportunity for explanation—but Han Dong-hoon himself has stated he does not plan to apply for one. Many observers argue that even with a retrial, the outcome is unlikely to change under current circumstances.
• The widespread backlash across factions stems from the view that now is not the time to fight Han Dong-hoon. Oh Se-hoon (Seoul Mayor) noted, “Expelling Han Dong-hoon would lead to the party’s mutual destruction.” Kim Jae-seop (People Power Party lawmaker) said, “If this drives the party to ruin, leadership replacement must be considered.”
• Ahn Cheol-soo (People Power Party lawmaker) pointed out, “If Han Dong-hoon presents the IP address and proves his innocence, the current confusion could be resolved.”

Han Dong-hoon’s Dilemma.

• First, he could challenge the procedure by filing for a suspension of effect. This would escalate conflict and likely incur significant political costs.
• Second, a compromise where Han apologizes and Jang Dong-hyeok withdraws the disciplinary action is not impossible. However, observers note the ethics committee is highly unlikely to reverse its decision.
• Third, a scenario of leaving the party and forming a new one has been floated, but it carries high risks. The 2017 conservative splinter party, Bareun Party, started with 29 seats but dissolved within two years.

Jang Dong-hyeok’s Hunger Strike.

• Many criticize it as out of the blue.
• A hunger strike opposing the second special probe is widely seen as a crisis-busting event.
• If Han Dong-hoon does not request a retrial, the chances of compromise between the two diminish further.
• There is strong awareness of crisis: “We cannot proceed to elections like this.”
• Pressure to meet and reconcile is mounting, but the prevailing view is that Jang Dong-hyeok will not budge.
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“Aide Kang Sun-woo First Proposed Campaign Donation.”.

• Seoul City Council member Kim Kyung and independent lawmaker Kang Sun-woo give conflicting accounts.
• Kang Sun-woo’s aide claims, “I know nothing about campaign donations,” while Kang insists, “I instructed the aide to return the money after learning it had been received.”
• There is a possibility of summoning the three parties for a face-to-face interrogation.
• According to Chosun Ilbo, contrary to Kang Sun-woo’s claim that “it was returned immediately,” Kim Kyung testified that “the money was returned months after the nomination was confirmed.”
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Did the Police Show Deference?

• Dongjak Police Station is under suspicion of mishandling the investigation into Kim Byung-ki (former Democratic Party floor leader). The Hankyoreh pointed out, “Even to avoid criticism of protecting their own, they should have raided Dongjak Police Station first.”
• Dongjak Police Station is also accused of omitting some materials during the raid. Criticism has emerged that the investigation lacks basic rigor. Even within the police force, there are reportedly sighs that they “don’t know how to investigate high-profile politicians.”
• The Hankyoreh noted, “Most citizens agree with reforms dismantling the prosecution’s monopoly on investigations and prosecutions,” but added, “It’s also true that there are concerns the state’s crime-fighting capabilities might decline.” The argument is, “To dispel these fears, the police must not only be far more competent than they are now but also stop watching the government’s mood.”
• The Korea Daily also criticized in an editorial, “The current investigations are far too sluggish and weak for the police to establish themselves as the nation’s core investigative body.”
• Related Link.
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Deep Dive.

“Real Estate Supply Measures Exceeding Expectations to Be Unveiled.”.

• Kim Yong-beom (Blue House Policy Chief) spoke with Hankyoreh. Though the front-page headline read, “Considering Progressive Increases in Holding and Capital Gains Taxes for ‘Smart Single Properties,’” the actual stance was, “It’s still a matter that requires consideration.”
• Kim emphasized supply over taxation. “We’re pushing beyond market expectations,” he said, adding, “We’re thinking on a fairly large scale.” The implication: “Once supply stabilizes, we’ll address tax issues.” Discussions with Seoul City are underway about supplying 10,000 households in the Yongsan business district.
• The remark that “the June 27 measures were a brake and cannot be sustained indefinitely” is another key point.

Seoul Apartment Prices Rose 9% Last Year.

• Highest increase since 2006. Nationwide home prices hit a four-year high.
• According to KB Real Estate, the average apartment sale price in Gangnam’s 11 districts was 1.9 billion won, while Gangbuk’s 14 districts averaged 1.07 billion won—a significant gap.

National AI Representatives: Naver and NC Fall Short.

• Naver Cloud failed to meet originality criteria. Its use of weights and vision encoders from Alibaba’s Qwen 2.5 became a critical issue.
• LG AI Research, Upstage, and SK Telecom advanced to the second phase. LG AI Research ranked first.
• Naver stated, “Considering the government’s evaluation, we have decided not to reapply.”

Use First, Compensate Later? Concerns Over AI Action Plan.

• Backlash is intensifying against the “use first, compensate later” policy announced by the National Strategy Committee.
• Yoo Jae-yeon (National Strategy Committee Social Policy Division Head) explained, “It’s not about giving data away for free—it’s about creating a transaction market so compensation flows.”
• Shin Han-soo (Korean Newspaper Association Digital Council Chairman) argued, “The principle of copyright protection must come first.”
• Baek Eun-ok (National Strategy Committee Data Policy Division Head) said, “It’s like wanting to marry but still testing the waters,” adding, “There will be common ground.”

Another Take.

Why Separate Investigators and Judicial Officers?

• At the Democratic Party’s general meeting, heated debate erupted over the proposed Central Investigative Agency. Criticism poured in that it would only solidify the prosecution cartel.
• The issues are twofold.
• First, concerns exist that separating judicial investigators from specialized investigators would ultimately grant powerful authority to judicial investigators with prosecutorial backgrounds.
• Second, there are also worries that leaving supplementary investigation powers with the prosecution office could reignite the embers of the prosecution’s revival.
• Rep. Jeong Cheong-rae (Democratic Party Leader) emphasized, “Abolishing the prosecution office means the complete separation of investigation and prosecution that we have publicly declared and promised.”
• They decided to gather opinions at a public hearing on the 20th.

“700 Million Won for Election, 600 Million for Defeat? Not Just Old News.”.

• Kim Byung-ki and Kang Sun-woo may only be the tip of the iceberg. “An implicit practice has been exposed,” analyzed The Korea Times.
• Park Soon-ja (former People Power Party lawmaker) and Ha Young-je (former People Power Party lawmaker) were sentenced to 2 years and 6 months and 1 year and 6 months in prison, respectively, while Lee Jeong-geun (former Democratic Party lawmaker) received a 6-month prison sentence, suspended for 1 year.
• “Even if not exposed, lobbying in safe districts for nominations happens regardless of party,” the rumor goes. There are many cases of split donations mobilizing family and acquaintances, and methods vary—from covering district office maintenance costs to paying for opinion polls.
• Yoon Wang-hee (Seoul National University professor) noted, “The lower the political level, the more candidates function like subordinates to National Assembly members,” adding, “Nomination bribes are not just personal corruption but a tragedy of downward standardization in politics subordinated to central parties.”
• While the so-called 1-3-5 price list—100 million won for local councilors, 300 million for provincial councilors, 500 million for local government heads—was once openly circulated, criticism persists that nothing has changed.
• Park Myung-ho (Dongguk University professor) warned, “Costs spent to buy positions inevitably lead to ‘recovery’ through interest interventions, and local administration falls into corruption in the process,” emphasizing, “The ultimate victims of these ‘secret deals’ over money and positions are the people.”
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The Fix.

Taiwan as a Cautionary Tale.

• Many speculated Taiwan might overtake Korea, but the Bank of Korea’s view differs slightly. The warning is to guard against the side effects of extreme K-shaped growth.
• Taiwan’s GDP grew over 7% last year and is projected to grow over 3% this year. Its per capita GDP has now caught up with Korea’s.
• Taiwan’s information technology (IT) manufacturing sector accounts for 22.1% of its economy—three times Korea’s 7.3%. Exports surged 40%, but consumption barely grew.
• The labor income share is also very low. Average monthly wages in Taiwan are around 2.9 million won, just 70% of Korea’s 4.2 million won.
• Korea’s semiconductor exports account for nearly 30% of total exports, and semiconductor firms make up 38% of KOSPI market capitalization.
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Second-Act Sushi.

• An elderly employment project in Ulsan’s Nam-gu district.
• The average age of Sushi-Un (Silver) employees is 68. Twenty seniors work in shifts of 7–8 people. They work 60 hours a month and receive a 620,000 won salary, plus four major insurances and severance pay.
• The government provides 200,000 won per senior monthly, but the remaining labor costs, rent, and ingredient expenses must be covered by sales. It’s a sustainable job project designed to thrive in market competition—not public-sector employment.
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ICYMI.

Osong Township’s Population Doubles.

• “It’s like Osong has undergone a rebirth.” The population grew from 24,554 in December 2022 to 49,169 in December last year.
• The Osong Life Sciences Complex was established in 1997, and national agencies like the Ministry of Food and Drug Safety relocated there in 2010.
• KTX Osong Station, opened in 2010, saw ridership surge from 1.2 million in 2011 to 12.5 million last year.

Nvidia Chips to Face 25% Transit Tax in Chinese Exports.

• Donald Trump (U.S. President) has decided to allow exports of H200 chips.
• The tax itself is not the main variable. Until now, arguments have clashed: one side claims Nvidia chip exports threaten national security, while the other insists increasing dependence on Nvidia is necessary to block China’s pursuit.
• China is likely to either ban Nvidia chip exports or permit them only for limited purposes.

Koreans Consume the Most Sugar from Apples.

• They consume 3.93 grams of sugar daily from apples.
• Carbonated drinks ranked second at 3.55 grams, followed by milk at 3.4 grams.
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Woo Sang-ho’s Gangwon Bid, Hong Ik-pyo as Successor?

• Woo Sang-ho (Blue House Political Affairs Chief) is speculated to soon submit his resignation to run for Gangwon Governor. Hong Ik-pyo (former Democratic Party lawmaker) is being mentioned as his successor.
• Kim Byung-wook (Blue House Political Affairs Secretary) is eyeing a bid for Seongnam Mayor. Ko Young-jin (former Democratic Party lawmaker) is being mentioned as his successor.
• Both Hong Ik-pyo and Ko Young-jin are distant from the pro-Myung faction.
• Kim Nam-jun (Blue House Spokesperson) is strongly speculated to run in the Incheon Gyeyang by-election.
• Related Link.

Worth Reading.

Why the Call to “Go Where the Energy Is” Is Flawed.

• “The idea of creating a RE100 industrial complex and consuming all energy produced in Honam within Honam itself is fundamentally impossible due to the nature of renewable energy. It must be connected to the capital region, where power consumption is high, and circulated in real-time.”
• Kim Kyung-sik (ESG Network CEO) emphasized, “Building HVDC (high-voltage direct current transmission) is essential to increase renewable energy adoption.”
• The issue lies in grid stabilization and transmission networks. “Additional planned solar and offshore wind power projects can only proceed once HVDC is operational.”
• More critical than a company’s location are energy prices and regulations. Factories can achieve RE100 using renewable energy credits regardless of where they are located.
• Related Link.

Kim Sung-hwan Must Provide Answers.

• Kim Hyun-woo (Director of the Institute for Degrowth and Alternatives) identifies two issues with the Ministry of Climate, Energy, and Environment’s response.
• First, it assumes nuclear and renewable energy can coexist. Nuclear is stable but rigid, incapable of compensating for renewables’ intermittency.
• Second, the current Yongsan semiconductor cluster issue cannot be resolved by expanding nuclear power—it’s insufficient, would take over a decade, and transmission line construction remains challenging.
• Kim Hyun-woo stressed, “Minister Kim Sung-hwan (Minister of Climate, Energy, and Environment) must stop hiding behind public opinion and provide a responsible answer.”
• Related Link.

Is This the “Yoon Again Party”?

• Chosun Ilbo’s editorial bristles with palpable frustration. “Concerns that Jang Dong-hyuk (People Power Party leader) has been captured by YouTubers advocating ‘Yoon Again’ may be valid,” it analyzes.
• The party recruited Lee Ji-ae (former Samcheok MBC announcer), who claimed, “On December 3rd, we woke up,” as a media spokesperson.
• It also appointed Kim Min-su (People Power Party Supreme Council member), who defended the emergency martial law as the “Gwacheon Landing Operation,” as communication committee chair.
• Chosun Ilbo remarks, “No matter what name the party adopts, its essence remains the ‘Yoon Again Party’” and warns, “It would be a miscalculation to assume the public won’t recognize this core reality.”
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Let’s Wait for an Enlightening Ruling.

• “Korean democracy is on trial. Is this a country that holds those in power fully accountable when they trample on constitutional order?”
• Kim Jong-dae (former Justice Party lawmaker) stressed, “The ruling must be far more enlightening than merely correcting the distortion and degradation of claiming martial law was ‘enlightenment.’”
• Related Link.