Trump’s Temper Tantrum: South Korea’s Tariffs Jump Back to 25%.

• “The South Korean National Assembly is not fulfilling the agreement with the United States. We signed an excellent agreement last July, and when I visited South Korea in October, we confirmed the terms. So why hasn’t it been approved?”
• This statement was posted by Donald Trump (U.S. President) on Truth Social. (Posted just now at 6:57 AM Korean time.)
• “Tariffs on South Korean automobiles, pharmaceuticals, and other mutual goods will increase from 15% to 25%. Thank you for your attention.”
• Originally, the Korea-U.S. Investment Agreement was to be retroactively applied from the day the U.S. Investment Special Act (Special Bill for Korea-U.S. Strategic Investment Management) was proposed to the National Assembly. The Ministry of Trade, Industry and Energy proposed it on November 26 last year, and mutual tariffs have been retroactively applied from November 1. It was referred to the Planning and Finance Committee on December 13 last year, but many procedures remain, including the Judiciary Committee and plenary session votes.
• It’s safe to say this is just Trump throwing a baseless tantrum. There’s no reason for the South Korean National Assembly not to pass it, and Trump gains nothing by overturning it now. It’s just a few lines on Truth Social—it’s unlikely he’ll actually raise tariffs.
• Related Link.
• Related Link.
• Related Link.

Two More Nuclear Reactors to Be Built.

• The 11th Basic Plan for Electricity Supply and Demand, prepared by the National Assembly last February, stipulates the construction of two large-scale nuclear reactors and one small modular reactor (SMR).
• Kim Sung-hwan (Minister of Climate and Environment) stated, “South Korea is an energy-island nation with a short east-west scale, making it extremely difficult to operate power systems solely on renewable energy.”
• The goal is to obtain construction permits by 2030 and complete the project between 2037 and 2038. The SMR target is 2035.
• Related Link.

Does the Public Really Want It?

• The government cited a poll showing over 80% support for nuclear power, but critics argue the survey’s framing was flawed from the start.
• Questions omitted key issues like nuclear waste disposal.
• Kim Sung-hwan (Minister of Climate and Environment) acknowledged, “It’s true there have been concerns about the survey’s inadequacies.”
• Some also point out that supply is growing faster than actual demand. As of last year, power generation capacity stood at 158GW, while peak demand reached only 97GW.
• With plans already underway to expand renewable energy to 100GW by 2030, some argue that managing oversupply and output control—not new reactors—will be the real challenge.

“No Place to Build Reactors,” He Said.

• “It takes 15 years to build one, and aside from one site where construction was halted, there’s nowhere else to build.” These were the words of Lee Jae-myung (President) during his 100-day press conference.
• Has his thinking changed? At a recent State Council meeting, he remarked, “Public opinion overwhelmingly agrees that additional nuclear reactors are needed to resolve electricity issues, doesn’t it?”
• If they’re building anyway, it means a year has been wasted since last February.
• Yeongdeok County in Gyeongsangbuk-do is being floated as a likely candidate site.

Has the Anti-Nuclear Stake Been Pulled? Newspapers React Differently.

• Chosun Ilbo emphasized, “Additional reactors beyond the two are necessary.” The Korean Nuclear Society released an analysis stating, “To maintain a 35.2% nuclear power share, 20 new reactors and 12 SMRs must be built.”
• China plans to add 150 reactors by 2035, France aims for 14 by 2050, and the U.S. targets 10 by 2030.
• JoongAng Ilbo highlighted “the power of 90% pro-nuclear public opinion,” framing the expansion as a response to popular demand. Dong-A Ilbo assessed, “Even at the cost of criticism over policy reversal, the government has prioritized pragmatism by shifting energy policy.”
• Conservative-leaning outlets seem largely satisfied. Even Kyunghyang Shinmun and The Hankyoreh avoided strong criticism. Kyunghyang Shinmun dryly headlined, “Lee Jae-myung government to build new reactors,” as its lead story. The Hankyoreh opted for the ambiguous, “Lee Jae-myung government to build new reactors after all.”
• Related Link.
• Related Link.
• Related Link.
• Related Link.
• Related Link.

What Matters Now.

“Responsibility for the 100 Million Won Scandal,” Kim Kyung Resigns.

• Kim Kyung (Seoul City Council member), accused of delivering a 100 million won campaign donation to Kang Seon-woo (then Democratic Party lawmaker), has submitted his resignation.
• “It is the minimum duty to citizens to reveal the truth without concealment and accept legal punishment commensurate with the wrongdoing,” he stated.
• If the council speaker accepts the resignation, Kim will lose his seat, but the Seoul City Council has decided to first convene an ethics committee to discuss disciplinary action.
• The police-secured audio recordings contain the names of several current and former Democratic Party lawmakers.
• Critics argue this is a tactic to avoid arrest.
• The police are likely to request an arrest warrant for Kang Seon-woo.
• Related Link.

Admitted to Yonsei via Grandfather’s Medal?

• Lee Hye-hoon’s (former Minister of Planning and Budget nominee) eldest son entered Yonsei University while her husband Kim Young-se (Yonsei professor) served as vice president of academic affairs.
• They initially claimed he was admitted through a multiple-children quota, but no such quota existed in 2010.
• They later switched to a social contributor track—which also raises questions. They argued the son qualified as a “national honor inheritor” via a medal awarded to Lee’s father-in-law Kim Tae-ho (former Minister of Home Affairs), but university admission via a grandfather’s medal is hard to fathom.
• Related Link.

Deep Dive.

Lee Hee-ja Was the Shincheonji Link.

• Police have obtained recordings suggesting, “Lee Man-hee (Shincheonji General Director) wants to connect with the Yoon Suk-yeol line through Lee Hee-ja (Chairperson of the Korean Women’s Association),” or that “he was close to the Moon Jae-in administration.”
• While confirming that Ko A-moo (Shincheonji General Assembly Secretary, who led the so-called Pilates Operation) raised over 10 billion won from regional leaders between 2017–2020, authorities failed to trace the funds’ usage.
• Related Link.

“Is the Democratic Party Just a Personal Shrine for Chung Chung-rae?”.

• These were the words of Lee Eun-ju (Democratic Party Supreme Council Member).
• Kang Deuk-gu (Democratic Party Supreme Council Member) confessed, “I find it hard to understand why we should court the Cho Kuk Reform Party.”
• The Cho Kuk Reform Party is resisting absorption. Seo Wang-jin (Cho Kuk Reform Party Floor Leader) insisted, “Unification should not be a predictable power grab but a coalition of values offering new hope.”

KOSDAQ Hits “Heavenly SDAQ.”.

• It reached 1064.41—the highest level since the 2000 dot-com bubble.
• Biotech and secondary battery-related stocks surged sharply.

Kim Jong-hyuk Pressured to Leave Party, Is Han Dong-hoon Next?

• The People Power Party’s ethics committee has urged Kim Jong-hyuk (former People Power Party Supreme Council member) to leave the party. They cited his criticism of Jang Dong-hyuk (People Power Party leader) in a September 2023 interview with Monthly JoongAng: “We cannot avoid a drop in approval ratings because we’ve joined hands with extreme individuals spreading delusional viruses.”
• Kim is classified as pro-Japan. Originally, the party audit committee had recommended a two-year suspension of party membership, but the ethics committee escalated it to a request for resignation.
• Speculation dominates that this move is aimed at Han Dong-hoon (former People Power Party leader), who already faces expulsion. Han’s case is pending a Supreme Council decision.
• Related Link.
• Related Link.

National Pension Service to Increase Domestic Equity Weight.

• The target domestic equity ratio was raised from 14.4% to 14.9%. As of last year’s end, the ratio already stood at 14.9%. This means they will not reduce it further.
• Rebalancing has been temporarily suspended to minimize market impact. The maximum allowable holding is 19.4%.

Another Take.

Negotiating with Hundreds of Subcontractors? That’s What the Law Is For.

• Conservative media’s backlash intensifies ahead of the Yellow Envelope Law’s implementation.
• Is that really the case? Non-regular workers have union membership rates of only 2–3%, and the reality is they cannot negotiate even if they want to. The story goes that even if the Yellow Envelope Law is implemented, not much will change.
• Park Rae-gun (Director of the Human Rights Foundation People) pointed out, “The responsibility for fragmenting subcontractors within a single workplace—divided by process, subdivided by task—lies with conglomerates and large corporations.”
• Park Rae-gun emphasized, “The best enforcement decree should be one that promotes autonomous negotiations.”
• Related Link.

Adjusting Property Taxes After Local Elections.

• They’ve decided to implement the heavy capital gains tax without delay and are likely to revise the long-term holding special deduction for single-homeowners. Lee Jae-myung (President) noted, “Not all single-homeowners are the same.”
• Kim Yong-beom (Blue House Policy Director) mentioning progressive application of property taxes could be a signal. Proposals include raising comprehensive real estate tax rates and restoring the basic exemption from 900 million won to 600 million won.
• Seok Byung-hoon (Ewha Womans University Professor) warned, “Contrary to the government’s intent, this could distort the real estate market.” His argument: “Lowering transaction costs and promoting redevelopment and reconstruction are the keys to stabilizing housing prices.”
• Related Link.

86% of Serious Accident Punishment Act Convictions Receive Suspended Sentences.

• Criticism arises over “soft punishments.” Last year, industrial accident deaths increased from 596 in 2022 to 609.
• Workers injured in industrial accidents also rose from 102,305 in 2018 to 142,771 in 2024.
• The Korea Daily pointed out, “The Serious Accident Punishment Act has structural flaws.” Few cases are prosecuted, and penalties remain weak. By last July, only 121 out of 1,252 cases were actually prosecuted. Of the 53 cases with first-instance verdicts, 49 were guilty, and 42 of those received suspended sentences.
• Related Link.

The Fix.

26 Children Left in Baby Box Despite Protected Birth System.

• Children left without birth registration. The lowest number since 2011.
• The protected birth system and birth notification system were introduced to support mothers unable to raise their children, but criticism persists over its limitations.

All 338 Seoul Metro Stations Now Connected by Elevators.

• Gakchisan Station was the most challenging. Securing ground space for an elevator alone cost hundreds of billions of won, making land acquisition impossible.
• They ultimately used a U-shaped non-excavation special construction method to bypass privately owned land above ground. It’s said two small machines operated in three shifts, 24 hours a day.
• The Kyunghyang Shinmun praised it as “14 years of persistence achieved.” “No one had ever attempted the high-difficulty technique of horizontally tunneling from the underground first-floor concourse where passengers pass, bypassing privately owned land above ground, and excavating downward toward the platform,” it reported.
• Related Link.

Half-Price Insurance for Autonomous Driving.

• In the U.S., insurance products have emerged that slash premiums by half for vehicles using Tesla’s FSD (Full Self-Driving) software—deemed safer than human drivers.
• South Korea only permits Level 2 autonomy, requiring hands on the wheel and constant forward attention.
• According to the Korea Road Traffic Safety Authority, autonomous vehicle accidents totaled 47 last year.
• Critics highlight unclear liability boundaries between drivers and manufacturers.

President’s Remark Spurs Affordable Sanitary Products.

• Yuhan-Kimberly stated, “We deeply empathize with the government and public’s expectation that economically vulnerable groups should rightfully enjoy universal menstrual rights,” adding, “We will expand offline sales of mid-to-low-priced sanitary products and launch new affordable lines.”
• LG Unicharm and Klean Country also announced plans to release new half-price products.
• Related Link.

Three-Minute Reserve: The Revival of Pumped Storage.

• Water can be pumped when there’s excess power and generate electricity immediately when needed. Coal plants take four hours, but pumped storage takes just three minutes.
• The Fengning plant in Hebei, China, has a capacity of 3.6GW.
• The U.S. derives 20% of its renewable energy output from pumped storage plants.
• South Korea produces 4.7GW across seven sites—3% of total power. Long deemed unprofitable, development stalled after the 2002 Yecheon plant. Now, paired with renewable expansion, it’s resurfacing as a solution to solar intermittency and nuclear rigidity.
• Related Link.

ICYMI.

Extreme Cold Is a Consequence of Global Warming.

• The Kamchatka Peninsula saw 2 meters of snowfall in a single day.
• Finland recorded temperatures as low as -37°C.
• A powerful blizzard struck the United States.
• Analysis suggests this is due to weakened polar jet streams, releasing the cold air belt.

The Era of Gold at 1 Million Won per Don.

• It has surpassed $5,000 per ounce. Up 17% this year alone.
• In South Korea, 1 gram costs 238,000 won. Per don, that’s 892,500 won. Some retail markets have already crossed the 1 million won mark.
• While weakened dollar value is cited as boosting demand for safe assets, some argue this doesn’t fully explain the abnormal overheating.

Is a $45 Billion Canadian Submarine Deal Possible?

• It’s a massive project to build 12 diesel submarines. Over 20,000 jobs are expected to be created, including 300+ partner companies.
• Chung Eui-sun (Hyundai Motor Group Chairman), Kim Dong-gwan (Hanwha Group Vice Chairman), Kang Hoon-sik (Blue House Chief of Staff), and Kim Jeong-gwan (Minister of Trade, Industry and Energy) have been mobilized.
• The competition has narrowed to a two-way race with Germany’s ThyssenKrupp.
• Canada is demanding a car factory be built. Hyundai is reportedly skeptical about the feasibility, given its failed 1989 withdrawal from Canada.

Worth Reading.

Minister or Penthouse?

• It’s a strange question. Becoming minister doesn’t mean losing an apartment, and giving up the ministerial post doesn’t guarantee keeping one. Lee Hye-hoon (former Minister of Planning and Budget nominee) didn’t become minister and is likely to lose her apartment.
• Hwang Se-won (CEO of Ilin Research Institute) pointed out, “It’s ultimately just a matter of money already earned versus money to be earned,” and in a “circular structure where money creates occupational status, status creates social rank, and rank generates more money,” it’s a question of “which appears larger.” Naturally, the ministerial post would have seemed bigger.
• Related Link.

Trump’s Number Two Is Stephen Miller.

• Trump’s second-term appointees can be divided into two categories: arrogant narcissists and dangerous opportunists.
• Donald Trump (U.S. President) or Pete Hegseth (U.S. Under Secretary of Defense) are arrogant narcissists, while J.D. Vance (U.S. Vice President) evolved from a narcissist to an opportunist.
• To Kim Nak-ho (Drexel University professor), the truly dangerous figures are far-right extremists like Stephen Miller (White House Senior Policy Advisor). While Trump’s first term remained within the Republican Party’s boundaries, the second term is effectively controlled by the far-right.
• “Stephen Miller, who holds the key to America’s national identity, differs from Trump’s ‘soft’ racism—his approach of appeasing those who submit to him. Miller believes in purifying American culture ‘soiled’ by immigrants of other races. It’s closer to cultural purism. Unlike classical racism rooted in slavery, it’s most akin to the Nazism of World War II Germany.”
• Related Link.

Not Reform, but Normalization of the Prosecution.

• Kim Sun-soo (former Supreme Court Justice) criticized, “Acknowledging supplementary investigative authority for a few exceptional cases inverts the main and the subsidiary.” This directly refutes Lee Jae-myung (President)’s proposal to allow such authority in exceptional circumstances like impending statute of limitations.
• “The so-called exceptional situations requiring supplementary investigative authority by prosecution bureau prosecutors are merely technical coordination issues between the prosecution bureau and investigative agencies—they cannot justify a system granting supplementary investigative authority to prosecution bureau prosecutors.”
• Kim Sun-soo emphasized, “If direct investigative personnel remain in the prosecution bureau, they will aggressively exercise supplementary investigative authority to prove their relevance and relentlessly attempt to expand its scope and targets.”
• Related Link.