LDP Secures Constitutional Amendment Seats in Japan.

• Japan’s Liberal Democratic Party (LDP) secured more than two-thirds of the seats in the House of Representatives election. With 316 seats for the LDP and 36 for Japan Innovation Party, they now hold 353 out of 465 seats—a significant increase from 232.
• This is the first time since 1945 that a single party has secured more than two-thirds of the seats.
• Takaichi Sanae’s (Prime Minister of Japan) gamble paid off. She dissolved the cabinet while barely holding a majority and secured the constitutional amendment seats that even former Prime Minister Abe Shinzo failed to achieve. Observers predict an acceleration toward transforming Japan into a “nation capable of war.”
• Takaichi’s election campaign video surpassed 138 million views. In a Nikkei Shimbun poll, 92% of voters aged 18–29 supported her.
• The term “Sanakattsu boom” also emerged—a blend of Sanae and oshikatsu (fan club).
• With 261 seats, they can control all standing committees. Speculation about long-term rule is already surfacing.
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What Matters Now.

12-Point Gap in Party Support Ratings.

• “More ruling party candidates should be elected” received 44% support. The gap was just 3% as of October last year, but it has widened steadily. These are results from a Gallup Korea poll.
• Party support ratings stand at 41% and 25%, a 16-point gap.
• Among respondents who identify as centrist, 38% supported the Democratic Party, while 17% backed the People Power Party.
• (First week of February, telephone interview survey, ±3.1% margin of error at 95% confidence level.)
• Cho Jin-man (Professor at Duksung Women’s University) pointed out, “Centrist voters have completely shifted allegiance.” Gallup Korea analyzed, “Voter attitudes should be understood not by party support but through an election-oriented framework.”
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Suggesting Jeon Jun-cheol? Pro- and Anti-Moon Factions Boiling Over.

• The Democratic Party recommended Jeon Jun-cheol (Gwangjang Law Firm) as the second special prosecutor candidate. He was the lawyer for Kim Sung-tae (former Ssangbangwool chairman), who testified unfavorably against Lee Jae-myung (President) in the North Korea remittance case.
• Lee Jae-myung appointed Kwon Chang-young (Jipyeong Law Firm), recommended by the Cho Kuk Reform Party, as the special prosecutor.
• Lee Jae-myung reportedly became angry, saying, “The recommendation itself is inappropriate.” He even remarked, “It doesn’t appear to be made with pure intentions.”
• Jeong Cheong-rae (Democratic Party leader) immediately stated, “I apologize for causing trouble for the president due to a failure in personnel verification.” Jeong claims he had no prior knowledge and only grasped the situation—and panicked—after Lee appointed the Cho Kuk Reform Party’s candidate.
• Jeon Jun-cheol was recommended by Lee Seong-yoon (Democratic Party lawmaker), a pro-Cheong faction member.
• Park Hong-geun (Democratic Party lawmaker) pointed out, “He’s a legal professional from the prosecution who collaborated in attempts to destroy Lee Jae-myung.”
• Kim Yong-min (Democratic Party lawmaker) said, “Usually, the Judiciary Committee is consulted when recommending a special prosecutor, but there was no communication at all.”
• Lee Geon-tae (Democratic Party lawmaker), a pro-Myung faction member, criticized it as “betrayal and treason.” Hwang Myeong-seon (Democratic Party Supreme Council member) noted, “This isn’t just a simple mistake—it’s a warning that the party’s decision-making system has collapsed.”
• The situation won’t calm down easily. One pro-Myung faction lawmaker remarked, “The party’s ‘member sovereignty’ is just a slogan. The Jeon Jun-cheol controversy has confirmed that the reality is reviving pro-Moon factions and strengthening the party leader’s position.”
• In an editorial, JoongAng Ilbo pointed out, “While loudly proclaiming political neutrality as the highest virtue of a special prosecutor, the covert practice of considering all sorts of preferences from the candidate recommendation stage has been exposed.”
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Cho Kuk: “No Merger If No Decision by the 13th.”.

• “In the election held immediately after the rebellion, Lee Jae-myung (49.42%) + Kwon Young-guk (0.98%)’s combined vote share (50.4%) narrowly edged out Kim Moon-soo (41.15%) + Lee Jun-seok (8.34%)’s combined share (49.49%) by 0.91 percentage points.”
• Cho Kuk (Reform Party leader) warned, “It’s a grave miscalculation to believe victory is assured just because of current approval ratings.”
• The likelihood of a merger has diminished.
• A Democratic Party lawmaker said, “The situation is now untenable without resolution” and added, “This wasteful conflict is only creating negative effects at a time when we should be focusing on the election.” Jeong Cheong-rae’s leadership is faltering.
• Kang Deuk-gu (Democratic Party Supreme Council member) stated, “I feel profound humiliation and disgrace.”
• Claims also surface that “Cho Kuk is using the Democratic Party as a host to pursue the next presidency.”
• A Reform Party official said, “There is a sense of crisis that we could devolve into the Democratic Party’s second-in-command.”
• The most likely exit strategy is to pursue a merger only after the election concludes.
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Speed Up Legislation, Blue House Pressures.

• Kim Min-seok (Prime Minister) and Kang Hoon-sik (Blue House Chief of Staff) expressed frustration with the Democratic Party. It may reflect the intentions of Lee Jae-myung (President).
• Kim Min-seok said, “Legislation requires a speed war,” while Kang Hoon-sik stated, “Even if the government and Blue House prepare excellent policies, they cannot be implemented without a legal foundation.”
• The most urgent matter is the U.S. investment special law. The plan is to pass it by early March.

People Power Party Still Mired in Internal Conflict, Begins Discipline Against Bae Hyun-jin.

• The party leadership faction and pro-Han faction are clashing.
• The People Power Party’s ethics committee has initiated disciplinary proceedings against Bae Hyun-jin (People Power Party lawmaker),
• and the Seoul Metropolitan Party Ethics Committee—chaired by Bae Hyun-jin—has begun disciplinary procedures against Ko Sung-kuk (CEO of Ko Sung-kuk TV).
• Ko Sung-kuk argued, “Oh Se-hoon (Seoul mayor) must be shockingly cut off.”

Deep Dive.

A Near-Miss: 620,000 Won Becomes 620 Billion Won.

• Bithumb, a cryptocurrency exchange, faced a major incident.
• While distributing event prize money, they mistakenly sent 620,000 won as 620,000 bitcoins. Though blamed on an employee’s error, Bithumb only holds around 40,000 bitcoins.
• How can one send funds they don’t possess? Critics call it an incident shaking trust in the crypto market.
• Bithumb froze and recovered the linked accounts, but some funds have already vanished. 125 bitcoins remain unaccounted for.
• Lee Jung-soo (Seoul National University professor) noted, “Traditional capital markets have securities firms, exchanges, and depositories that check each other, but the virtual asset market concentrates intermediation, custody, and settlement functions in exchanges, making external oversight ineffective.”
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Kwak Sang-do’s 5 Billion Club Acquitted.

• “Legalized bribery” is how it’s being assessed.
• Kwak Sang-do’s (former People Power Party lawmaker) son, who received 5 billion won from Kim Man-bae (major shareholder of Hwacheon Daeyu) under the guise of severance pay, was acquitted.
• While speculation dominated that the money was intended for Kwak Sang-do himself, he had already been acquitted in 2023, and this time the prosecution’s case was dismissed.
• The court ruled that the severance pay given to Kwak Sang-do’s son could not be considered a bribe related to his duties, and there was no evidence of collusion.
• The so-called “5 Billion Club” was exposed through a recording of Jeong Young-hak (shareholder of Cheonhadongin).
• The recording includes the line, “We need to give 5 billion won to six people,” naming Kwak Sang-do, Kwon Soon-il (former Supreme Court Justice), Park Young-soo (former Park Geun-hye special prosecutor), Kim Soo-nam (former Prosecutor General), Choi Jae-kyung (former Blue House Senior Secretary for Civil Affairs), and Hong Seok-geun (Chairman of Money Today).

“The Tariff Negotiations Have Collapsed.”.

• These were the words of Seo Seok-wuk (Director of the National Security Office at the Blue House). While the delay in the U.S. investment special law is the cause, there are also risks that security negotiations—such as nuclear-powered submarines or expanded nuclear fuel reprocessing—could be delayed or canceled.
• “Tariff negotiations in the economic sector and security negotiations are the two main pillars supporting the South Korea-U.S. agreement,” he said. “One has already collapsed, causing trouble, and there are signs it could spread to the other.”
• Seo Seung-wook (Central Daily Content Director) blamed the incompetence of the embassy in the U.S. “Even if we didn’t know, the excuse that it wasn’t a diplomatic failure because communication wasn’t sufficient within the U.S. government sounds like an admission of ‘we were wrong,’” he pointed out.
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Another Take.

From Lump-Sum Severance to Mandatory Pension.

• Severance pay was money to be received someday, but smaller companies often failed to set it aside in advance.
• It was a fixed amount paid in a lump sum upon retirement.
• Mandating retirement pensions means entrusting severance funds to external financial institutions. Not only is it more stable, but returns can also be enhanced to strengthen retirement preparedness.
• Kim Young-hoon (Minister of Labor) said, “We have reached an agreement on an issue unresolved for 21 years since the introduction of retirement pensions.”
• The Ministry of Labor will provide financial support to small-scale workplaces.
• Kim Yong-ha (Professor at Soonchunhyang University) noted, “While proposing a broad direction is meaningful, the system’s implementation should not be rushed.”
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The Limits of Principal-Guaranteed Pensions: Defined Contribution Pension Returns at 2.9% Annually.

• Until now, defined contribution pensions have been dominated by principal-guaranteed products. With the introduction of fund-type pensions, even workers at small and medium-sized enterprises will be able to entrust fund management to professionals.
• There are two types: financial institution-led and consortium-led funds. Financial institutions can pool workplaces to create a fund, or workplaces can pool together and entrust the fund to a financial institution.
• Of the 8.1 trillion won in unpaid wages from 2020–2024, 3.2 trillion won was unpaid retirement benefits.
• Over the past five years, defined contribution pension returns averaged around 2.9% annually. During the same period, the National Pension Service returned 8.1%.
• Projections suggest the defined contribution pension fund could surpass the National Pension Service by around 2050.
• A financial industry insider remarked, “Using a travel analogy, we’ve decided where to go but haven’t yet determined the vehicle.”
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North Korea Sanctions Lifted—Why?

• The UN Security Council has decided to exempt humanitarian aid projects to North Korea from sanctions.
• Expectations are growing that U.S.-North Korea dialogue may resume. There is even a possibility that Donald Trump (President of the United States) could meet Kim Jong-un (North Korean State Affairs Commissioner) during his visit to China in April.
• Chosun Ilbo remains skeptical: “North Korea has rejected most international organization aid. It has not even allowed the re-entry of international organization staff who left during the COVID-19 pandemic. There are interpretations that North Korea is uncomfortable with the monitoring procedures required by international organizations to verify that aid is used properly.”
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2,400 Wealthy Departed? 139 on Average Annually.

• Im Kwang-hyun (Commissioner of the National Tax Service) refuted a Korea Chamber of Commerce and Industry report claiming wealthy individuals were fleeing overseas to avoid inheritance tax, calling it factually incorrect.
• Overseas emigrants averaged 2,904 annually over three years, with only 139 holding assets over 1 billion won. Just 27 moved to inheritance-tax-exempt countries. The chamber’s claims were wrong in both numbers and basis.
• Lee Jae-myung (President) posted on X, “I cannot believe such a stunt was pulled publicly,” adding, “We will hold those responsible accountable and create safeguards against recurrence. Deliberate fake news is the enemy of democracy.”
• Choi Tae-won (SK Chairman and chamber president) stated, “We should have scrutinized the data more closely,” apologizing: “We deeply regret causing unnecessary confusion by citing unverified information.”
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Democratic Party Proposes Easing Dawn Deliveries Despite Earlier Calls for Regulation.

• The situation has shifted dramatically in a matter of days.
• “Regulating large supermarkets only allowed foreign company Coupang to dominate the market,” is the critical assessment.
• Kim Dong-ah (Democratic Party lawmaker) argued, “Competition must be introduced to reach a social agreement with Coupang.”
• Doesn’t this conflict with dawn delivery regulations? The Democratic Party claims that regulation only strengthened monopolies.
• Has their stance changed? They argue there’s no other way to break Coupang’s monopoly.
• Will mandatory closures remain? “They are effective in protecting traditional markets and local businesses,” they say. For now, mandatory closures will stay.
• The Hankyoreh warned, “The fence protecting small business owners and self-employed workers’ livelihoods could collapse.”
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The Fix.

What About the U.S.? Prosecutors and Investigators as One Team.

• Julius Nam (former U.S. federal prosecutor) worked as a federal prosecutor for 10 years.
• In the U.S., prosecutors do not collect evidence without investigators. However, they actively intervene in what evidence investigators collect and how. Prosecutors also devise investigative strategies and construct legal frameworks.
• Julius Nam remarked, “It doesn’t feel strange to separate investigative functions from prosecutors,” but added, “If investigative agencies don’t cooperate with prosecutors, it’s no different from transferring the power previously held by prosecutors to the SIU or police.”
• He emphasized, “If prosecutors won’t be given supplementary investigation authority, there must be an environment where they can cooperate in real-time with SIU or police investigators from the initial investigation to the trial’s conclusion.”
• “The key,” he said, “is not the separation of investigation and prosecution itself, but how to create a relationship of checks and balances while maintaining cooperation.”
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ICYMI.

Digital Gold? Bitcoin Plummets Without End.

• Bitcoin, which once hit $120,000, has fallen to $70,000.
• Assessments suggest the Trump effect has worn off. In won terms, it has collapsed below 100 million.
• Analysis suggests a “crypto winter” has begun—this winter could be very long or never end.
• The Financial Times pointed out, “The fairy tales that propped up cryptocurrencies were just that—fairy tales,” adding, “We are now confirming that the supply of ‘greater fools’ Bitcoin relied on has dried up.”
• Jemima Kelly (Financial Times columnist) evaluated, “Bitcoin is still about $69,000 overpriced.”
• There was a time when it was hailed as digital gold, but while gold prices rose nearly 70%, Bitcoin fell 30%.
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Han Dong-hoon’s Concert: “We Won’t Be Broken.”.

• 15,000 people gathered at Jamsil Gymnasium for a talk concert. Even pro-Yoon lawmakers attended.
• He apologized for the party member board controversy. He claimed he was unaware that his family was flooding the board and would have stopped them had he known.
• “Throughout my political career, those attacking me have kept changing. It was the Democratic Party, then Yoon Suk-yeol’s camp, and now extremist opportunists.” This was a jab at Ko Sung-kuk.
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Are Big Box Stores Doomed? Walmart Did It Differently.

• Market cap surpassed $1 trillion. Among non-Big Tech companies, only Berkshire Hathaway and Walmart have joined the trillion-dollar club.
• The secret? Early investment in e-commerce and using local stores as logistics warehouses for online sales.
• Sam Walton once said, “Every dollar we waste comes from our customers’ pockets. We must sell cheaply at all costs (Always low price).”
• South Korea is also considering easing regulations on big box stores. Was it because of the regulations?
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Worth Reading.

Why Kim Beom-seok (Chairman of Coupang Inc.) Is Running Amok.

• Cheon Gwang-am (editorial writer for Dong-A Ilbo) identified three reasons.
• First, thanks to the tilted playing field created by Korean politics. While regulating late-night and holiday operations for large supermarkets, the government exempted Coupang. The story goes that the Korean government is no longer a fearsome entity for the “dinosaur” Coupang, which has grown as large as it could.
• Second, due to Korea’s “masochistic regulations” that are harsh on domestic companies but lenient toward foreign ones. There was significant controversy over Kim Beom-seok’s (Chairman of Coupang Inc.) non-designation as a controlling shareholder being a form of reverse discrimination.
• Third, it may be because of the money spread across the U.S. Since 2021, lobbying funds poured into U.S. political circles have exceeded 15 billion won.
• Cheon Gwang-am argued, “At minimum, we must create an environment where our companies can compete on equal footing with the ‘American company’ Coupang.”
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The Essence of the Merger Controversy: A Power Struggle.

• Kang Byung-han (Kyunghyang Shinmun political editor) pointed out that honesty is needed. Power struggles are not inherently bad—all politics is a power struggle.
• Jeong Cheong-rae (Democratic Party leader) called it a “lonely decision,” but the problem is that it was made unilaterally. Why was it made alone? Because the post-local election party convention holds the key to the 2028 general election.
• For a power struggle to have meaning, it must connect to public value. Kang Byung-han assessed, “They’ve opened Pandora’s box of multifaceted power struggles far too early.” He warned, “If the Blue House intervenes, it won’t resolve conflict but ignite new sparks.”
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Same Difference: Jang Dong-hyeok and Han Dong-hoon.

• Jang Dong-hyeok (People Power Party leader) expelled Han Dong-hoon (former People Power Party leader) and now wears a self-satisfied expression, claiming his gambit worked.
• Kim Hoe-kyung (Korea Ilbo political editor) criticized, “He reveals nothing but the frivolity of a fallen conservatism, not even bearing the weight of the ‘first opposition leader’ crown.”
• Han Dong-hoon is equally lacking in centrist appeal. Even if Jang’s system collapses after local elections, Han is unlikely to get a chance. He must transcend the ‘traitor’ frame, yet remains trapped in his own victim narrative. Yoon Suk-yeol at least had the excuse of being persecuted by the regime, but Han is now fighting his former soulmate.
• Kim Hoe-kyung assessed, “Relying on such clearly limited fandom and victim narratives is amateurish.”
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Lee Jae-myung’s Three Factors.

• These were the words of Kang Hoon-sik (Blue House Chief of Staff), echoing Lee Hang-kyu (former Prime Minister), in evaluating Lee Jae-myung.
• Truth. He expanded the “Just Give It” project—unconditional distribution of daily necessities—nationwide. He reportedly grew angry at local governments’ income-based colored consumption vouchers. The story is that he genuinely cares about the socially vulnerable.
• Diligence. He frequently reads overdue reports and materials, then instructs staff or ministers via Telegram in the early morning.
• Urgency. He has an obsessive passion to build a successful government. Kang Hoon-sik said, “There’s no such thing as giving up if it doesn’t work.”
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