Becoming a Nation Capable of War.

• Takaiichi Sanae’s (Prime Minister of Japan) Liberal Democratic Party secured an unprecedented landslide victory in the House of Representatives election, securing two-thirds of the seats outright. Combined with Komeito’s seats, they hold 75% of the chamber.
• The likelihood of pushing through constitutional revision is high. Observers also suggest defense spending will increase and the Non-Nuclear Principles (not possessing, producing, or allowing the introduction of nuclear weapons) may be undermined.
• Of course, achieving constitutional revision requires two-thirds support in the House of Councillors and a majority in a national referendum—hurdles that make success far from guaranteed. In an NHK poll from May last year, only 34% agreed that constitutional revision was necessary.

What Matters Now.

Kim Keon-hee’s Maid Acquitted.

• Kim Ye-seong, accused of embezzling 2.4 billion won, was acquitted and released. He served as Kim Keon-hee’s maid.
• IMS Mobility, a company founded by Kim Ye-seong, was in a state of capital depletion but received 18.4 billion won in investments from Kakao Mobility and HS Hyosung. The court ruled there was insufficient proof of crime and acquitted him. It also dismissed the connection to Kim Keon-hee, rejecting this part of the prosecution.
• In an editorial, *The Hankyoreh* criticized, “The special prosecution’s investigation was flawed, but the court’s effort to uncover the truth was equally lacking.”
• This is the third dismissal of charges in the Kim Keon-hee special prosecution. The Yangpyeong highway case and the Unification Church collusion case were also dismissed on grounds of unrelated investigations.
• Related Link.
• Related Link.

Kim Sang-min, Who Allegedly Bribed Kim Keon-hee, Also Acquitted.

• He was acquitted despite handing over a 140 million won painting while requesting a nomination. He was released after standing trial in detention.
• Kim Sang-min (former chief prosecutor at Seoul Central District Prosecutors’ Office) purchased a painting by Lee U-fan (artist) in 2023 and delivered it to Kim Jin-woo (Kim Keon-hee’s older brother). The painting was found at Kim Jin-woo’s mother-in-law’s home. The special prosecution team viewed the painting as a reward for influence-peddling and indicted Kim Sang-min.
• Although Kim Sang-min failed to secure a nomination, he was appointed as a legal advisor to the National Intelligence Service.
• The court acquitted him of nomination solicitation but convicted him of illegal political funding, sentencing him to six months in prison, suspended for one year.
• Related Link.

Jeong Cheong-rae: “Ultimate Responsibility Lies with Me.”.

• “There seem to have been gaps in recommending the special prosecutor candidates,” he said.
• Jeong Cheong-rae (Democratic Party leader) stepped down after the Blue House expressed strong dissatisfaction. Recommending Jeon Jun-cheol (Gwangjang lawyer), who attacked Lee Jae-myung (President), as a special prosecutor candidate touched Lee Jae-myung’s nerve.
• Kang Hoon-sik (Blue House Chief of Staff) said, “It’s regrettable that it appears as mutual conflict,” a veiled warning not to create discord.
• This is not the first time the Blue House has been dissatisfied. Lee Jae-myung had said the prosecution’s supplementary investigative authority should be exceptionally recognized, but it was abolished without prior coordination. Discussions about merging with the Cho Kuk Reform Party were also unilaterally proposed by Jeong Cheong-rae.
• Jeong Cheong-rae proposed a party member poll on whether to merge, but it fell through when pro-Lee Jae-myung supreme council members opposed it. Han Joon-ho (Democratic Party lawmaker) argued, “We should clarify our stance to halt the merger as quickly as possible.”

Pressure Mounts for Lee Sung-yoon to Resign.

• Jeon Jun-cheol was recommended by Lee Sung-yoon (Democratic Party lawmaker), known as a pro-Cheong Wa Dae faction figure.
• He said, “I failed to scrutinize more carefully,” but conspiracy theories have emerged. Lee Geon-tae (Democratic Party lawmaker) insists, “Lee Sung-yoon must step down from the Supreme Council.”
• Kim Eo-jun (CEO of Ddanzi Ilbo) invited Lee Sung-yoon and remarked, “It seems like a nomination that could have been made with prior knowledge.”
• Related Link.

Sale or Gift?

• With the D-Day for the heavy transfer tax on multiple homeowners approaching on May 9, owners are grappling with practical dilemmas.
• The JoongAng Ilbo advised that selling before May 9 is more advantageous if planning to dispose of property within one to two years.
• For a two-homeowner selling a house bought for 1 billion won 10 years ago at 2 billion won: the transfer tax is 328.91 million won before May 9. After May 9, it jumps to 540.76 million won—adding 20 percentage points to the base rate and forfeiting long-term holding benefits. With three homes, the tax balloons to 750 million won.
• What about gifting? The gift tax alone would be 601.4 million won, plus 248 million won in acquisition tax.
• Selling appears more favorable, but if planning to gift the proceeds as cash to children after selling, a gift tax of 474 million won still applies.
• Woo Byung-tak (Shinhan Premier Advisory Committee member) said, “Many multiple homeowners will likely offload properties, increasing listings,” but cautioned, “Once urgent sales are absorbed, prices could rebound.”
• Related Link.

Deep Dive.

Did Big Supermarkets Fail Because They Lacked Dawn Delivery?

• The issue lies in non-food sales, such as processed goods. Food items account for 70% of big supermarkets’ sales composition.
• Coupang has steadily encroached on big supermarkets’ territory through non-food sales like electronics, clothing, and household goods.
• Among the 273 trillion won in online shopping transactions, food and agricultural/fishery products account for less than 20%.

Pre-Trade Scandal: Korea Economic Daily President Resigns.

• Reporters at the economic daily are accused of using undisclosed information to trade stocks, pocketing 11.2 billion won in profits. Police raided the Korea Economic Daily.
• Lee Jae-myung (President) posted on X, “Stock manipulation leads to ruin.” Afterward, the Korea Economic Daily issued an apology and launched an investigation. Kim Jeong-ho (Korea Economic Daily President) decided to step down, taking responsibility.
• Related Link.

Fair Trade Commission Fines Scale with Revenue.

• From 2011–2017, conglomerates’ fines averaged 0.17% of sales. Mid-sized firms: 0.47%, small-to-medium enterprises: 1.45%, micro-enterprises: 3.3%. Small business owners: 22.3%.
• Apple faced an 1.84 billion euro fine in the European Union.
• President Lee Jae-myung demanded reforms, quipping, “What’s the point of 20% if they game the system to pay only 2%?”

Another Take.

Is Special Treatment for Landlords Necessary?

• “Shouldn’t the tax system for registered rental housing be the same as for general rental housing to ensure fairness?”
• Lee Jae-myung (President) is strongly criticizing landlords.
• Seoul’s registered rental housing units number around 300,000. They are exempt from acquisition tax, property tax, and comprehensive real estate tax, and are excluded from heavy transfer tax. Even after the mandatory rental period ends, the benefit of exclusion from heavy transfer tax continues.
• The Korea Daily pointed out that the effect on stabilizing housing prices remains uncertain even if landlords sell their properties. Most private rental housing consists of multi-family homes and officetels, and the structure makes it difficult to increase transactions even when properties are listed.
• Kwon Dae-jung (Hansung University professor) noted, “We shouldn’t frame multi-home landlords as inherently bad, as if we’re blocking them at the source.”
• In an editorial, the JoongAng Ilbo emphasized, “The supplier role that landlords have played must also be considered.” “The time has come to prove the government’s will through details,” it added.
• Related Link.
• Related Link.

“Will You Go with ‘Yoon Again’ or Not? Three Days to Decide.”.

• This was the ultimatum delivered by YouTuber Jeon Han-gil to Jang Dong-hyeok (People Power Party leader).
• “If you don’t answer, you’ll be betraying Yoon Suk-yeol (former president), and you’ll have to take responsibility for what happens next,” he said. “Think carefully about who made you party leader.”
• In an editorial, *Chosun Ilbo* warned, “If the People Power Party again insists on ‘Yoon Again’ or election fraud conspiracy theories as official party positions, it would be tantamount to abandoning the pursuit of power.”
• Related Link.

“What’s the Difference from ‘I Originally Intended to Fight for Independence’?”.

• Lee Jun-seok (Reform Party leader) said this about Han Dong-hoon (former People Power Party leader).
• “Fine, I know you fought against Yoon Suk-yeol. But weren’t you aiming for the position of regent right after the martial law crisis, having been the crown prince and successor? It’s no different from someone who was doing well until August 15, 1945, and then suddenly saying, ‘I originally intended to fight for independence.’ Our philosophies don’t align.”
• The 990,000 won election campaign lacked notable heavyweight figures. “Recruitment isn’t possible because the conservative talent pool has dried up,” he admitted. “Politics has become a place where people come to start a second career. I don’t think we’ll see significant figures being recruited anymore.”
• Related Link.

“Yes, Real Estate Was a Failure.”.

• These were the words of Moon Jae-in (former president) in an interview with the YouTube channel ‘Pyeong-san Book Room.’
• When Tak Hyun-min (former Blue House secretary) said, “You called real estate my most painful finger,” he replied, “I must first admit it was a failure.”
• Related Link.

The Fix.

Passing the Buck on Troubled Students Won’t Work.

• Hong Seon-yeong (teacher at Anseo Middle School) cannot forget that day. A student kicked open the door to another classroom and ran away during class. Another student masturbated during class, while another self-harmed. There were students unable to return home due to domestic violence. It was a situation no single teacher could handle.
• Teachers facing such challenges gathered to discuss solutions, forming the group “Maum Chingu” (Mind Friends).
• A survey by the Korean Teachers’ Union found that 97% of teachers had experience guiding students in crisis, and 94% had encountered disruptions severe enough to halt class.
• “We don’t know how to guide students in crisis. Ultimately, these students are treated like a hot potato in schools. They’re passed around—first kept by the principal or vice principal, then sent to the educational welfare office, then to the counseling room,” said Choi Kyung-hee (Mind Friends representative).
• Mind Friends shares expertise in positive behavioral support.
• First, analyze the student’s patterns. If the goal is attention, give them attention. If the behavior stems from aversion, provide an alternative action. For example, if a student stops problematic behavior after being told “stop” three times, reward them by letting them eat something delicious with a friend.
• Choi Myeong-hee emphasized, “Teachers can’t choose their students like lecturers. The responsibility to guide students in crisis ultimately falls to us.”
• Related Link.

One in Ten Restaurants Closed Last Year.

• Analysis by Hankyung.com. Based on local administrative licensing data, the restaurant industry’s closure rate reached 11.5% last year.
• The number of newly licensed businesses was 97,296, while 114,159 closed.
• The number of self-employed workers fell to 5.62 million.
• As of the third quarter of last year, outstanding loans for self-employed workers totaled 1,072 trillion won. Those aged 60+ accounted for 36%.
• Related Link.

Will Dawn Delivery Be Limited to 46 Hours a Week?

• It’s the draft agreement the Democratic Party is preparing. JoongAng Ilbo reported it exclusively.
• It includes implementing a five-day workweek starting next January and capping hours at 46 per week. Final government agreement hasn’t been reached yet.
• Delivery drivers argue, “It’s just a slight extension of the limit—survival threats remain,” adding, “Earnings will drop and working conditions will worsen.” One driver said, “If working hours shrink, I’ll have to take a side job or look for other work.”
• Related Link.

ICYMI.

Securing the 1 Trillion Won ESS Market.

• An ongoing 1 trillion won bid is constructing an energy storage system (ESS) with a capacity of 540MW.
• Samsung SDI swept 76% in the first round of bidding, while LG Energy Solution secured the remaining 24%. SK On failed to win any contracts.
• As competition with Chinese firms intensifies, K-battery sales continue to struggle.

One in Six Koreans Exceeds Sugar Intake Limits.

• As of 2023, 16.9% of the population exceeds sugar intake recommendations—a rise from 15.2% in 2020.
• Average daily sugar consumption per person is 59.8 grams.
• The WHO (World Health Organization) recommends less than 50 grams, or 10% of total daily calories.

Worth Reading.

SaaSpocalypse: The SaaS Apocalypse.

• It’s a term meaning the apocalypse (end) of SaaS. SaaS stands for Software as a Service.
• AI agents are developing to the point where they could render enterprise software obsolete—a fear that caused software stocks to plummet. Major software companies lost $1 trillion in market capitalization.
• Morgan Stanley analyzed, “Investors are now betting on the possibility that AI will not just enhance software but replace it entirely.” Just as SaaS transformed the software market, AI is now disrupting the SaaS market.
• Pang Dong-hyun (Digital Times Digital New Industry Team Leader) forecasted, “After a process of separating the wheat from the chaff, the SaaS market will reorganize, and when AI-native SaaS takes off, the software industry is expected to gain new growth momentum.”
• Counterarguments exist. Gartner predicts software sales will grow 15% from last year, reaching $1.4 trillion.
• Yoo Jae-hong (Software Policy Research Institute Senior Researcher) forecasted, “The software industry will advance by maintaining core functions while enhancing them with AI and creating additional services.”
• Related Link.
• Related Link.

Lee Kun-hee’s Three Questions.

• Though his merits and faults are separate, there’s no denying Lee Kun-hee (former Samsung Electronics chairman) was the mastermind behind the semiconductor myth.
• When he declared emergency management in 2011, he reportedly asked his presidents three questions:
• First, can you become number one in that business?
• Second, when can you become number one?
• Third, what do you need from me?
• Kim Hyun-seok (New York correspondent for Korea Economic Daily) emphasized, “Korea must continue to find new ‘foods’ like memory semiconductors.”
• Korea was the global leader in the display market for 17 years but was overtaken by China in 2021. What about semiconductors? CXMT (Changxin Memory Technologies) and YMTC (Yangtze Memory Technologies) are catching up at a frightening pace.
• Related Link.

An Unlevel Playing Field in the Electric Vehicle Market.

• Over 70,000 Chinese-made electric vehicles were registered in South Korea last year, accounting for 34% of the market share.
• The Tesla Model Y made in Shanghai costs just over 50 million won, while the BYD Dolphin costs less than 25 million won—5–10 million won cheaper than domestic models.
• The issue lies in subsidies: BYD receives subsidies from the Chinese government and further lowers prices through Korean subsidies. Lee Jae-myung (President) criticized, “All subsidies go to Chinese products, fattening Chinese companies while domestic electric bus manufacturers die.”
• In an editorial, the Korea Daily emphasized, “There should be no situation where one has to compete on a tilted playing field.”
• Related Link.