3% Proportional Representation Rule Ruled Unconstitutional.

• Until the last general election, only parties that either won over 3% of the vote or secured at least five constituency seats could share proportional representation seats. Yesterday, however, the Constitutional Court ruled that excluding minor parties violates the Public Officials Election Act.
• If applied to the last election, the People’s Future Party (People Power Party satellite party) would decrease from 18 to 17 seats, while the Democratic United Party (Democratic Party satellite party) would drop from 14 to 13. The Justice Party would also fall from 12 to 11. Conversely, the Liberal Unification Party, Green Justice Party, and New Future would each gain one seat.
• Dissenting justices Jeong Hyung-sik (Constitutional Court Justice) and Jo Han-chang (Constitutional Court Justice) warned, “There are concerns that extremist groups with minority support could enter parliament.”

60,000 Households in Capital Region: A ‘Full-Force’ Supply Push.

• The government has rolled out a full-scale housing supply plan. 60,000 households—twice the size of Pangyo New Town.
• 13,501 households will be built in Yongsan-gu. 10,000 households are planned for the Yongsan International Business District. Construction begins in 2028. The US military base site (2,500 households), reservoir area (480 households), and Yongsan Post Office (47 households)—truly scraping every last resource.
• 6,800 households at the Taereung Fitness Center in Nowon-gu will start construction in 2030.
• 6,300 households will be supplied by lifting greenbelt restrictions near Pangyo Techno Valley in Seongnam.
• 9,800 households are planned for the Seoul Racecourse and Counterintelligence Command sites in Gwacheon.
• The plan targets young people and newlyweds.
• Most sites require no land compensation and are key ‘job-residence proximity’ areas—but occupancy will still take 5–6 years. Speed is critical.
• Related Link.
• Related Link.

Yongsan’s 10,000 Households: Recycled, Only 2,694 to Start Construction Next Year.

• Many view this as a positive signal to ease supply anxieties.
• The Seoul Metropolitan Government is dissatisfied. It maintains that redevelopment and reconstruction projects should be the core of supply. Kim Seong-bo (Seoul Vice Mayor) argued, “We’ve repeatedly requested the central government, but our demands were not reflected.”
• Critics also note that the supply cliff remains severe. This year’s scheduled capital region move-in volume barely reaches 90,000 households.
• In an editorial, Kukmin Ilbo emphasized, “Rather than rolling out ad-hoc supply measures, a mid-to-long-term supply roadmap—projecting at least 10 years ahead—is necessary.” Seoul Shinmun pointed out, “To instill confidence that there’s no need to panic, easing regulations on redevelopment and reconstruction projects is the most urgent priority.”
• Related Link.
• Related Link.

What Matters Now.

Han Dong-hoon Finally Expelled.

• Returned leader Jang Dong-hyeok (People Power Party leader) has finally ousted Han Dong-hoon (former People Power Party leader).
• It has been 15 days since the ethics committee decided to expel Han over allegations involving party member bulletin boards.
• At the Supreme Council meeting, Kim Min-su (People Power Party Supreme Council member) said, “I also have a large family—would you tolerate mobilizing them all to defame lawmakers?” Jo Gwang-han (People Power Party Supreme Council member) remarked, “Our party’s toxic debt is a major obstacle to tomorrow’s change and development.”
• Seven out of nine members voted in favor.
• Jang Dong-hyeok escalated internal power struggles by demanding a dual special prosecutor investigation and staging a hunger strike, only to return empty-handed. Observers widely agree that the likelihood of local election defeat has grown.
• Oh Se-hoon (Seoul mayor) criticized, “Jang Dong-hyeok has driven the party to self-destruction” and demanded, “Jang must step down.”
• The Korea JoongAng Daily described it as an “internal conservative war.”
• Related Link.

“I Will Return.”.

• Han Dong-hoon said, “Please wait.” He vowed, “You can expel me, but you cannot crush the aspiration for good politics.”
• He is likely to file for a provisional injunction.
• He could run in local elections or form a new party, but both options are fraught with variables and high risk. Many pro-Han lawmakers are proportional representatives—leaving the party means losing their seats.
• There is also talk of him running as an independent in a by-election in Daegu or Busan.

Why Did Jang Dong-hyeok Do It?

• An insider from the People Power Party leadership said, “We won’t let Han Dong-hoon’s expulsion dominate the Lunar New Year agenda.”
• There was also a judgment that opinions were already split evenly. There’s a sentiment that Han Dong-hoon doesn’t help with centrist outreach.
• Munhwa Ilbo called it “political self-harm” in an editorial.
• Chosun Ilbo pointed out, “The People Power Party will only solidify its image as a party still supporting martial law—Yoon Suk-yeol’s enabler.” The editorial’s title was, “After surrendering power via martial law self-destruction, will the party also self-destruct?” Chosun Ilbo’s deep frustration is palpable.
• Kyeongyang Shinmun criticized, “It has devolved into Jang Dong-hyeok’s far-right factional stronghold,” while Seoul Shinmun assessed, “The People Power Party, which had been creaking, has finally shattered like a broken bowl.”
• Hankook Ilbo noted, “With local elections approaching in June, the party is abandoning the battlefield where it should focus its strength, instead tearing each other apart.”
• Related Link.
• Related Link.
• Related Link.
• Related Link.
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“Mountains of Work, Can’t Sleep.”.

• “Administration requires speed—we can’t afford to wait,” adding, “The National Assembly is moving so slowly that it’s impossible to get anything done.”
• Lee Jae-myung (President) likely framed his criticism of the “slow National Assembly” with awareness of the U.S. government’s decision to raise tariffs, citing delays in passing the U.S. investment special law.
• He also urged career civil servants (‘neulgong’) to “directly engage with citizens whenever possible—if not, at least read community comments.”
• “Obsessing over something grand, flashy, or groundbreaking can make you overlook what’s actually achievable,” he noted. “Find as many immediate, actionable tasks as possible and execute them quickly.”
• Related Link.

91 Bills Passed in Bulk.

• Half of the delayed bills were processed at once, leaving sensitive contentious legislation pending.
• The Semiconductor Special Act, designating semiconductor clusters and providing subsidies, also passed. Originally proposed by the People Power Party in 2024, it had stalled due to Democratic Party opposition. The 52-hour workweek exception, which the Democratic Party opposed, was omitted.
• A bill transferring jurisdiction of national university hospitals from the Ministry of Education to the Ministry of Health and Welfare also passed.
• A provision introducing a quorum requirement for filibusters was removed due to opposition from the Cho Kuk Reform Party and others.
• The controversial “legal distortion” crime clause was also omitted for now.

Deep Dive.

Can the Giant Cart Be Avoided?

• Lee Jae-myung (President) said at a senior advisory meeting, “It may be part of a struggle strategy, but if it’s a world that will inevitably come, we must prepare and adapt in advance.”
• This was in response to Hyundai Motor’s labor union issuing a statement: “Not a single robot can be introduced without labor-management agreement.”
• “When steam engines were introduced in the past, there were movements to destroy the machines. We must acknowledge this as quickly as possible, and the government should provide opportunities for learning. If we say, ‘This is absolutely impossible,’ ‘It cannot exist,’ ‘Don’t even mention it,’ ‘If you speak, you’re a communist,’ we won’t be able to adapt.”
• He emphasized, “That’s why a basic society is necessary.”
• Related Link.

“A Society Dominated by AI Fantasy.”.

• The Korean Metal Workers’ Union issued a statement asking, “Is the state’s role to simply let the cart pass by?”
• It criticized, “We pointed out the union bypass and requested discussions under collective agreements,” yet “this was distorted into a 21st-century Luddite movement that never happened.”
• “A president who says we should unite to fight against invading aliens tells us to keep hands off the cart, regardless of whether it harms people. What fantasy lives in a president who sees aliens as dystopia and AI as utopia?”
• Related Link.

“No Trade Deal Until Korea Passes Investment Legislation.”.

• Words from Janet Yellen (U.S. Treasury Secretary).
• Donald Trump (U.S. President) has threatened to raise tariffs from 15% to 25%, but no follow-up measures like executive orders or Federal Register publication have been taken yet.
• Kim Jeong-gan (Minister of Trade, Industry and Energy) meets Howard Lutnick (U.S. Secretary of Commerce) today.

“Kang Sun-woo Wept and Pleaded at Nomination Committee Meeting.”.

• Kang Sun-woo (then Democratic Party lawmaker) reportedly broke down in tears at the nomination committee meeting the day after pleading with Kim Byung-ki (then Democratic Party floor leader), saying, “Save me.” She insisted Kim Kyung (Seoul Metropolitan Council member) should be nominated.
• She allegedly demanded, “As the Gangseo-gap district chair, can’t I even make a recommendation?”
• “Her tone was so aggressive that other committee members shook their heads and the mood shifted to ‘just do as you please,’” according to accounts. Her voice was reportedly loud enough to echo outside the meeting room.

Semiconductor Titans May Hit 300 Trillion Won in Operating Profit This Year.

• Samsung Electronics and SK Hynix recorded 20.1 trillion won and 19.2 trillion won in operating profit, respectively, in the fourth quarter of last year.
• On an annual basis, the figures stood at 43.6 trillion won and 47.2 trillion won.
• With memory demand surging, this year’s performance outlook is also strong. KB Securities forecasts operating profits of 162 trillion won and 132 trillion won, respectively.

Another Take.

Leaving Coupang for Quick Commerce?

• Baemin Mart’s grocery orders surged 15%. Delivery takes less than an hour from order to arrival.
• Kurly Now also jumped 143%.
• Convenience store deliveries rose too: GS25 Quick Commerce saw orders increase 43% and sales 61%.
• Analysis suggests, “Consumer standards for fast delivery are shifting from ‘next day’ to ‘real-time.’”
• Related Link.

Money Move: Investor Deposits Surpass 100 Trillion Won.

• Investor deposits stood at 88 trillion won at the end of last year, increasing by 12 trillion won. (These are standby funds either transferred to brokerage accounts to buy stocks or left idle after selling stocks.)
• Projections suggest the KOSPI index could reach 5800.
• Margin loan balances also rose from 27 trillion won to 29 trillion won. (This refers to money borrowed from brokerages to buy stocks that has yet to be repaid—commonly called “debt investing,” meaning investing with borrowed money.)
• Related Link.
• Related Link.

Retail Power: Kospi 5,221.25.

• Profit-taking selling briefly pushed the index down, but individual investors bought 1.6 trillion won worth of shares, lifting the index.
• Foreign investors unloaded their holdings.
• The Kospi market cap grew from 2,271 trillion won on June 4—when the Lee Jae-myung (President) administration began—to 4,316 trillion won on January 29. The KOSDAQ rose from 388 trillion won to 638 trillion won.

The Significance of $700 Billion in Exports.

• Last year, exports exceeded 1,000 trillion won in local currency terms.
• Only six countries have surpassed $700 billion in exports: the U.S. (2000), Germany (2003), China (2005), Japan (2007), the Netherlands (2018), and now South Korea.
• Critics note heavy reliance on semiconductors, yet SME exports still grew 7% to $118.6 billion.
• Cosmetics exports surged 22% to $8.3 billion, driven by K-Beauty.
• K-Food exports hit a record $13.6 billion.
• Related Link.
• Related Link.

The Fix.

Gyeonggi Firefighters Receive 16-Year-Old Overtime Pay.

• Firefighters claimed they were not paid for two hours of rest time.
• They lost a lawsuit due to expired statutes of limitations, but Gyeonggi Province decided to pay the full amount regardless.
• 8,245 firefighters will receive approximately 4 million won each.
• Kim Dong-yeon (Gyeonggi Governor) emphasized, “Firefighters’ overtime work is a result of their dedication to protecting residents’ lives and safety,” adding, “This is our commitment to providing rightful compensation.”
• Related Link.

National Growth Fund’s First Project: Offshore Wind.

• Of the 3.4 trillion won, the government will invest 750 billion won. The fund totals 150 trillion won in scale.
• The first project is a 390MW offshore wind power plant to be built on Uido Island, Sinan County, South Jeolla Province.
• It will operate under a “wind pension” model, sharing profits with local residents. Residents can invest and receive returns via vouchers or local currency.

Tears of School Meal Workers.

• One school meal worker is responsible for 150–200 meals.
• 178 meal workers have developed lung cancer due to cooking fumes and other causes.
• In 2024, there were 1,577 industrial accident claims.
• The revised School Meal Act passed, stipulating appropriate meal quotas per worker.
• It mandates that the national and local governments take responsibility for the health and safety of meal workers.

ICYMI.

Coupang Sanitary Pads for 99 Won.

• Was it possible all along but ignored? After Lee Jae-myung (President) criticized high sanitary product prices, Coupang lowered its PB (private brand) product price from 130 won (medium size) to 99 won per unit.
• Other brands range from 200–300 won.

Constitution Day Returns as a Public Holiday.

• It was a public holiday from 1949 until its exclusion in 2008. One of the five national holidays, yet not a day off.
• Reinstated as a public holiday after 18 years. The National Assembly Research Service’s proposal was accepted.
• Related Link.

One Car for Every 1.93 Citizens.

• Cumulative total: 26.52 million vehicles.
• Among 1.7 million new registrations, 220,000 were electric vehicles—13% of the total.

Amazon’s 30,000 Layoffs.

• Following 14,000 layoffs three months ago, an additional 16,000 will be cut.
• A massive restructuring reducing 9% of its 350,000 workforce.
• The plan is to cut costs and increase AI investments.

Daum to Become Upstage.

• Kakao already spun off Daum under the name AXZ last May. Upstage has now agreed to acquire AXZ. While specific terms remain undisclosed, industry estimates value AXZ at 200 billion won.
• The plan is to combine Daum’s 31 years of accumulated data with Upstage’s language model Solar to build an AI platform.

Worth Reading.

The End of the Establishment.

• The downfall of establishment elites who lacked the ability to govern but overflowed with the desire to seize power. The world may seem changed, but politics remains fragmented and chaotic.
• Shin In-gyu (Representative of “Upright Political Party”) emphasized, “A society that does not declare the end of an era cannot move forward.” The time for decisive action has come.
• “That decision could be called a trial, an event like an election, or a constitutional party-dissolution process. The method doesn’t matter. What matters is thoroughly condemning past wrongs and ensuring power without reflection is never reproduced.”
• Related Link.

An Era of 1,500 Trillion Won in National Pension Funds.

• National Pension reserves grew by over 250 trillion won in just one year. Not only is this the highest-ever return rate, but it also ranks overwhelmingly first compared to other countries’ pension funds. The fund depletion timeline has also been pushed back.
• A 1% increase in the return rate alone can delay the fund’s depletion by seven years.
• Kim Tae-il (Korea University professor) admitted, “Those who loudly demanded immediate additional measures have become awkward,” adding, “No matter how much they sneer, saying, ‘You can’t even predict next year’s situation—what kind of expert are you?’ there’s nothing we can do.”
• Kim’s proposal has two points.
• First, financial stability targets must be set. For example, Canada’s national pension aims to accumulate reserves equivalent to 5–6 years of payments 70 years in advance.
• Second, fund management must be made more transparent. Professionalism and independence must also be guaranteed.
• Related Link.
• Related Link.

Myeong Tae-gyun Gate: Two Common-Sense Questions.

• The court identified four main reasons for acquitting Myeong Tae-gyun in the Myeong Tae-gyun Gate.
• First, no contract was signed. Second, the opinion polls were routine and recurring. Third, there was a promotional purpose—showing off his close ties to Yoon Suk-yeol and his wife to secure paid polling requests. Fourth, it was deemed unlikely that Yoon Suk-yeol had promised official nominations.
• Jeong Hyeok Jung (Kyunghyang Shinmun columnist) countered with two questions.
• First, who writes contracts for such covert deals? The absence of a contract suggests secrecy, not legitimacy.
• Second, was the issue not that promises were made but never kept, leading to repeated demands?
• Related Link.

Judge Jang Dong-hyeok and Prosecutor Han Dong-hoon.

• Both have less than five years of political experience. Jang Dong-hyeok (People Power Party leader) became party leader as a first-term lawmaker, while Han Dong-hoon held the position without even serving as a National Assembly member.
• Lee Choong-jae (former Korea Ilbo editor-in-chief) pointed out, “Their trajectories are vastly different from politicians who have built careers from the ground up, breathing with the public and rising through fierce competition.”
• Within conservative circles, there are sighs: “Would the People Power Party have fallen this far even if they weren’t political novices?” It might be a clash between a judge who seeks judgment and a prosecutor who prioritizes winning—but it’s far from politics.
• A joke about “two strongmen” (자강두천) has emerged, meaning “a clash of prideful geniuses.” However, Lee Choong-jae assessed, “The public might think ‘idiots’ (천치) fits them better than ‘geniuses.’”
• Related Link.

“What You Fail to Do Can Always Be Tried Again.”.

• These are the words Lee Hae-chan (former Prime Minister) wrote in his memoir.
• “I started politics as an extension of the democratization movement. My goal was to build a democratic party. Though I still have concerns, I think we’ve made gradual progress. Now I grasp a bit of what DJ said: Life is beautiful, and history advances. In the movement, we failed but never despaired. In politics, you sometimes don’t achieve your goals. What you fail to do can always be tried again. It’s not a failure.”
• Jeong Hye-seung (co-CEO of Otium) emphasized, “Remembering those who devoted themselves to making South Korea a democratic advanced nation is a journey to confirm how we should live.”
• Related Link.