Lee Hye-hoon’s Confirmation Hearing Stalls.

• They decided to wait until they receive the documents. Lee Hye-hoon (nominee for Minister of Planning and Budget) has yet to submit materials related to allegations of unfair housing applications.
• Park Soo-young (People Power Party lawmaker) said, “We’ve received only 15% of the 2,187 requested documents.” Chosun Ilbo criticized, “The bad precedent of appointing prime ministers and ministers without proper document submission has become the ‘new normal’ for confirmation hearings in this administration.”
• Lee Hye-hoon didn’t even take her seat. When meeting reporters, she said, “We’ve submitted about 75% of the documents” and added, “We’ve submitted everything we could secure and are waiting for an opportunity to explain ourselves before the public.”
• The confirmation hearing deadline is the 21st. If the hearing report doesn’t arrive, the president can push through the appointment—but it would come with significant political burden.
• The Blue House has stated, “It’s too early to discuss appointment.”
• A Blue House official remarked, “If the raised allegations were destructive enough to disqualify the nominee, there’d be no reason to boycott the hearing. Doesn’t this imply they believe the nominee can explain away the issues or that the hearing won’t escalate the problem?”
• Related Link.
• Related Link.

What Matters Now.

Kim Byung-ki’s Spectacular Party Exit.

• He held out until the end but ultimately chose to leave the party.
• Kim Byung-ki (former Democratic Party floor leader) had demanded until the last moment, “Please expel me without a general meeting,” but according to party law, expelling a sitting lawmaker requires a general meeting with approval from a majority of lawmakers.
• He held a press conference insisting, “Expel me without a general meeting,” but faced criticism that it was “a trick to shift the burden to the Supreme Council.” Jo Seung-rae (Democratic Party Secretary-General) persuaded him to submit his resignation from the party.

Hunger Strike Without Clear Purpose.

• Jang Dong-hyeok (People Power Party leader) has been on a hunger strike for six days. He demands a dual special prosecutor investigation, but there is no response.
• Jang Dong-hyeok said, “I’ve put my life on the line.” The Korea Daily assessed, “He is strengthening his position as a central figure within the party,” but he lacks an exit strategy.
• The expulsion decision against Han Dong-hoon (former People Power Party leader) remains stalled. Han Dong-hoon is unlikely to request a retrial, and forcing expulsion is politically burdensome.
• A senior People Power Party lawmaker interviewed by Chosun Ilbo said, “It’s questionable whether any plan exists beyond the hunger strike.” Scenarios where Han Dong-hoon apologizes and Jang Dong-hyeok withdraws the expulsion have been discussed, but they lack credibility. Without the Democratic Party’s movement, there is no justification to end the strike.
• Another lawmaker said, “A hunger strike should convey desperation, but in this context, it only appears to be about Han Dong-hoon,” adding, “He has no choice but to continue until he collapses.”
• Related Link.
• Related Link.
• Related Link.

“One Person, One Vote” Rule Seen as Tailored for Jeong’s Re-election.

• The proposal passed the Democratic Party’s Supreme Council and Executive Committee despite controversy.
• It will proceed to a rights-holding member poll from the 22nd to 24th, followed by a Central Committee vote on the 2nd–3rd of next month for final approval.
• Jeong Cheong-rae (Democratic Party leader) said, “Viewing this through the lens of personal gain is a flawed perspective.”
• The measure was rejected during a Central Committee vote last December. Will it pass this time? Pro-Myung factions argue it should be postponed until after the national convention.
• One Democratic Party lawmaker remarked, “Shouldn’t the players be the ones adjusting the rules?”
• Park Soo-hyun (Democratic Party spokesperson) strongly criticized, “We’re nearing the point where even criticism of this as self-serving would be an understatement.”
• The party must overcome accusations of self-amendment.
• Another Democratic Party lawmaker stated, “The curtain has risen on the full-scale leadership struggle.”
• Related Link.
• Related Link.

Rushed Administrative Integration Lacks Detail.

• Following Daejeon-Chungnam and Gwangju-Jeollanam, Daegu-Gyeongbuk is now discussing integration.
• Concerns are growing that farmers will be sacrificed—benefits may vanish if regions are merged into cities.
• Rumors are swirling in Daejeon that the city hall might relocate to Naeppo.
• Critics argue that resident input has been insufficient.

Deep Dive.

“Are You Anti-Myung?”.

• Lee Jae-myung (President) tossed this joke at Jeong Cheong-rae (Democratic Party leader). It naturally drew laughter.
• Jeong Cheong-rae retorted, “We’re all pro-Myung and pro-Cheong.”
• The joke had an edge. Lee Jae-myung said, “Media uses the ‘Myung-Cheong rivalry’ framing—are they trying to pit us against each other or drive a wedge? Shouldn’t this be corrected?”
• While their opinions have subtly diverged on issues like prosecutorial reform and the trial suspension bill, no major conflict has escalated into a full-blown dispute. Instead, they’ve avoided clashes by downplaying internal strife, emphasizing that the president’s diplomatic achievements shouldn’t be overshadowed.
• Related Link.

2% to 5000.

• KOSPI hit 4904.66.
• Fundamentals (corporate earnings) matter. KOSPI’s 12-month forward PER is 10.4x—still not expensive. PBR stands at 1.6x, above the 20-year average of 1.2x. Compared to global markets, it remains cheap.
• Foreign investors still have room to maneuver. After net selling ₩14 trillion in November last year, they’ve since net bought ₩6 trillion. They’re selling semiconductors and autos, buying shipbuilding, utilities, steel, construction, and securities.
• According to brokerage consensus, Samsung Electronics and SK Hynix are expected to post ₩120 trillion and ₩93 trillion in operating profit this year, respectively. Joined by Hyundai Motor—rising on the Physical AI theme—the trio is driving KOSPI’s ascent.

Japan Dissolves Diet, Calls Snap Election.

• Dissolution on the 23rd, with a general election set for the 8th of next month—a rushed timeline.
• Takahashi Sanae (Japanese Prime Minister) said, “I will stake my position on this election” and “securing a majority is the goal.” The intention is to capitalize on high approval ratings to expand LDP seats and stabilize the ruling coalition’s foundation.

China’s Birth Rate Hits Lowest Since 1949.

• Last year, the number stood at 7.92 million. In 2023, it was 9.54 million.
• China’s birth rate peaked at 29 million in the 1960s and has been declining ever since.
• The death toll reached 11.31 million, and the population shrank to 1.40489 billion.

Another Take.

“No Nobel for Me? I’m Done with Peace.”.

• Everyone thought it might happen, but it still came as a shock. Donald Trump (U.S. President) sent this letter to Jonas Gahr Støre (Norwegian Prime Minister).
• “I halted more than eight wars, yet Norway decided not to award me the Nobel Peace Prize. I no longer feel obligated to think purely about peace. Now I can focus on what is good and appropriate for the United States. The world will not be safe unless we have complete and total control over Greenland.”
• Several facts are wrong in this short letter. First, Trump did not halt any wars. Second, the Nobel Prize has no connection to the Norwegian government. Third, claiming the U.S. must control Greenland for global safety is a fallacy.
• Related Link.

EU Counters with €93 Billion Tariff Salvo Against U.S.

• The transatlantic alliance, spanning over 80 years, faces its greatest crisis.
• EU leaders from 28 member states gathered in Brussels, Belgium, to review countermeasures against U.S. coercion—including the Trade Threats Response Mechanism (ACI). The ACI is dubbed the EU’s trade bunker buster, restricting public procurement, intellectual property, and direct investments against threatening nations. Though introduced in 2023, it has never been deployed.
• Scott Besen (U.S. Treasury Secretary) stated, “Arctic security is impossible unless Greenland joins the U.S.” He also taunted, “The U.S. demonstrates strength when Europe shows weakness.”

Building Memory Chips in the U.S. Would Double Costs.

• Trump is pressuring to move factories to the U.S., but the likelihood is slim.
• According to McKinsey, construction labor costs are already 4–5 times higher than in Asia, and operational labor costs are 2–4 times higher.
• There’s no room for additional investment. They can’t abandon the Yongin semiconductor cluster for the U.S., nor is it feasible to relocate all suppliers. Semiconductor facilities are capital-intensive, built with a 10+ year horizon.
• In reality, the U.S. is unlikely to take concrete action. The dominant view is that Trump’s push is a bluff to rally his base ahead of midterm elections.

Kim Kyung’s City Council + Family Business.

• Kim Kyung (Seoul City Council member and suspect in the nomination bribery case) has drawn scrutiny over her family’s business dealings.
• A 23 million won research contract proposed by Kim Kyung was awarded to her sister’s company via a non-competitive bid. Suspicion also surrounds her brother’s company, which signed a public housing supply agreement with the Seoul Housing & Urban Development Corporation (SH).
• A Seoul City Council official interviewed by Chosun Ilbo stated, “There is strong suspicion that she used her position to funnel city projects to her family’s businesses.”
• Seoul City has belatedly launched an audit.
• The Korea Daily editorialized, “The nomination bribery scandal is not just an individual’s deviation but a serious case suggesting systemic corruption—a food chain linking vested interests and malfeasance within power structures.”
• Related Link.
• Related Link.
• Related Link.

Summoning Kang Sun-woo for Investigation Today.

• It has been three weeks since allegations of nomination bribery emerged.
• Kim Kyung, accused of delivering 100 million won to Kang Sun-woo (independent lawmaker), has already been investigated three times.
• Kim Kyung claims that a staff member named Nam A-moo from Kang Sun-woo’s office initially demanded the 100 million won.
• Related Link.

Humans: 130 Million Won, Robots: 14 Million Won.

• Atlas is coming. The fear that robots will replace production lines is becoming reality.
• JoongAng Ilbo analyzed Hyundai Motor’s business report and found that a Korean factory worker produces 44 cars per year, while an American factory worker produces 84. The gap could widen as automation equipment and robots increase.
• Kim Gwi-yeon (Daishin Securities researcher) analyzed, “Even if humanoids replace just 10% of production workers, there would be an annual profit improvement effect of 1.7 trillion won.”
• Related Link.

The Fix.

110,000 Tons of Capital Region Waste Headed to Non-Capital Areas.

• Last year, 490,000 tons of household waste were sent to the capital region landfill. With the landfill’s closure, this waste has nowhere to go.
• Gyeonggi’s Hwaseong received 56,040 tons from Seoul and sent 36,000 tons of its own waste to Chungcheongbuk’s Cheongju, Daejeon, and Chungcheongnam’s Cheonan.
• Gyeonggi’s Gwangju received 15,740 tons from Seoul’s Songpa-gu and Gyeonggi’s Anyang, then sent 29,850 tons to Chungcheongnam’s Dangjin and Gyeonggi’s Osan.
• The Hankyoreh pointed out, “The principle that waste should be processed where it’s generated has collapsed, and regional imbalance in waste distribution is becoming entrenched.”
• Related Link.
• Related Link.

Power Received, Waste Sent.

• KEPCO’s plan to build substations and transmission lines by 2038 requires 73 trillion won—mostly to channel electricity from regions to the capital area.
• Ha Seung-soo (Farm Policy Institute director) emphasized, “The discriminatory structure treating non-capital regions as energy colonies and waste colonies must change.”
• “The thought arises: What’s the difference between Japan’s colonial rice shipments and the capital area draining non-capital regions’ electricity?”
• Related Link.

One Year Delay in Employment Cuts Lifetime Wages by 7%.

• The probability of becoming a regular worker drops to 56% if delayed by three years. Bank of Korea analysis.
• The proportion of youth taking over a year to secure their first job rose from 24% in 2004 to 31% last year.
• Housing costs are also burdensome: a 1 percentage point increase in housing expenses reduces education spending by 0.2 percentage points.
• Concerns grow that South Korea is mirroring Japan’s “employment ice age” generation—those graduating between the mid-1990s and mid-2000s.
• The share of non-regular workers aged 15–24 in Japan rose from 21% in 1990 to 48% by 2005.

Plea Bargaining Is Necessary.

• Instead of pressuring defendants in interrogation rooms, there should be a path to negotiate sentences with them and resolve cases without trial.
• In the U.S., 95% of cases are concluded through plea bargaining—only truly significant cases go to trial.
• Kim Myeon-gi (Police University professor) emphasized, “The true stage for prosecutors’ brilliant intellect and legal conscience should be the ‘trial phase’ and the ‘courtroom.’”
• Related Link.

Lotto Subscription System Needs Overhaul.

• As seen in the case of Lee Hye-hoon (Minister of Planning and Budget nominee), there have been many criticisms that the system favors those in their 40s and older.
• The number of detected fraudulent applications rose from 228 in 2020 to 517 in 2024.
• Kwon Dae-jung (Hansung University professor) proposed, “If subscription quotas are divided by generation and points are competed within each, it could mitigate the current system’s bias toward specific age groups.”
• “This approach could reduce intergenerational conflict while enhancing the system’s fairness,” he suggested.
• When fraud is discovered, not only is the win revoked, but offenders also face up to three years in prison or a fine of up to 30 million won.
• However, most cases resulted in fines of only 2–3 million won.
• Related Link.

Subscription Account Holders Drop by 2.4 Million.

• Due to complaints about low winning probabilities.
• It has decreased for three consecutive years since 2022.
• First-priority subscribers number 17.06 million, second-priority subscribers 8.84 million.
• Related Link.

Hyundai Steel Must Directly Employ 1,213 Subcontract Workers.

• The Ministry of Employment and Labor ordered Hyundai Steel’s Dangjin Steelworks to rectify its indirect employment practices.
• If unaddressed, a penalty of 10 million won per worker will be imposed. Hyundai Steel is likely to file an appeal.

ICYMI.

DRAM Prices Soar Sixfold in Four Months.

• Supply shortages have become critical. A DDR5 32GB memory module jumped from 140,000 won to 840,000 won.
• A PC that cost 950,000 won in September last year on Danawa now costs 1.66 million won. The dominant outlook is that PC component shortages will persist for some time.

Yangyang Airport Sees 135 Daily Passengers.

• Net losses reached 18.2 billion won by November last year. Cumulative deficits over 10 years amount to 150 billion won.
• Among 14 regional airports under Korea Airports Corporation, nine are operating at a loss. Based on figures up to November last year, Muan Airport, Yeosu Airport, and Ulsan Airport recorded net losses of 22.2 billion won, 15.2 billion won, and 15 billion won respectively.
• Gimhae Airport, Jeju Airport, and Gimpo Airport posted net profits of 94 billion won, 71.5 billion won, and 58.9 billion won respectively.
• Korea Airports Corporation’s cumulative deficit over five years totals 832.9 billion won.
• For reference, Incheon International Airport reported a net profit of 756.7 billion won last year.
• The Korea Daily pointed out, “It’s time to wake up from the delusion of airport omnipotence.”
• Related Link.

4.67 Million Passengers Choose Cheongju Airport Over Incheon.

• Last year, international passenger traffic reached 1.94 million.
• Its strategic location and swift immigration processing are major draws. Parking fees are also low.
• The airport’s success in developing niche routes to smaller cities—Hiroshima and Morioka in Japan, Ordos in China, and Ulaanbaatar in Mongolia—has significantly boosted traffic.

Worth Reading.

Lee Myung-bak’s ‘Co-Prosperity Development’ and Lee Jae-myung’s ‘Growth for All’.

• Park Jong-oh (Hankyoreh reporter) sees them as carbon copies. Lee Jae-myung (President) warned of K-shaped growth and introduced ‘Growth for All’—a “rehashed publicity stunt.”
• Exports were strong in 2010 too. Samsung Electronics recorded its highest-ever performance, and real growth hit 6.8%. We all know how that ended a few years later: the promised trickle-down effect never materialized.
• Park Jong-oh emphasized, “We must create channels so the warmth from the ondol floor can evenly heat the entire room.”
• Related Link.

Youth Have Lost the Time to ‘Experience.’.

• Whether coding, big data, or AI, you only gain skill by trying. You must confront, fail, and learn firsthand to have anything meaningful to say.
• Yet as companies increasingly favor experienced hires, young people are losing opportunities for real-world practice.
• Yang Seung-hoon (Kyungnam University professor) emphasized, “Competence isn’t cultivated merely by listening in classrooms—it requires field-based learning, actually using AI to ‘experience’ diverse problem situations.”
• Related Link.

Students’ Brains Are Rotting.

• “AI is a technology that assists already grown individuals, not one that cultivates those still growing.”
• Experienced workers will use AI to perform better, but interns and new hires face limitations. The same applies to students in their prime learning years.
• Kim Jae-in (Kyung Hee University professor) views this as a deprivation of growth opportunities for juniors.
• Students outsourcing writing to AI show declines in both memory and reasoning. No development occurs when cognitive tasks are delegated to AI.
• Kim Jae-in proposed, “We must first precisely distinguish areas where AI must be used, areas where it need not be used, and areas where it should not be used.”
• Related Link.