Jeong Cheong-rae’s Setback, Merger Between Democratic Party and Cho Kuk Innovation Party Collapses.

• Jeong Cheong-rae (Democratic Party leader) emerged from a general meeting of lawmakers and said, “We are halting merger discussions before the local elections.” Though he left room for possibility by saying, “I propose forming a preparatory committee,” it is safe to say the merger has effectively collapsed.
• It has been 19 days since he announced the push for a merger.
• He claimed, “It was out of loyalty to win the local elections and secure victory for the Lee Jae-myung government,” but the optics are poor.
• A Democratic Party lawmaker said, “Most agreed on the need for unity but argued that a merger in this manner was unacceptable.”
• The headline on Kyunghyang Shinmun’s front page hit the nail on the head: “Attempting to unite, only to split.”
• According to the Dong-A Ilbo, 16 out of 18 speakers opposed the merger.
• Another lawmaker remarked, “Internal communication and persuasion should have come first.”
• Related Link.
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What Matters Now.

The Blue House: “No Comment.”.

• The balance of power between the party and the Blue House has reportedly shifted toward the presidency.
• KyeongHyang Shinmun predicted, “The Blue House and pro-Myung factions will exert stronger influence not only on local election nominations but also on the next party leadership race.”
• Related Link.

“Isn’t Kim Eo-jun Not Our Party Leadership?”.

• Park Hong-keun (Democratic Party lawmaker) said this.
• Lee Dong-hyung (political commentator) pointed out, “In the past, if Kim Eo-jun and Yoo Si-min moved, supporters’ opinions would have swayed—but they aren’t swaying now,” adding, “New party members are those who joined because of Lee Jae-myung” and “people with no debt to Moon Jae-in or Cho Kuk.”
• A former Democratic Party lawmaker met by JoongAng Ilbo assessed, “Jeong Cheong-rae pushed ahead believing only in external support forces like Kim Eo-jun and Yoo Si-min, and ultimately messed things up.”
• Anti-Cho responsibility claims also emerge. The Korea Daily analyzed, “The anti-Cho trio—Lee Eun-joo, Hwang Myung-sun, and Kang Deuk-gu—must apologize for conflicts to be resolved.”
• Related Link.
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Medical School Quotas to Increase by 490, All for Regional Doctors.

• Yoon Suk-yeol (former president) proposed increasing the number by 2,000 at once, incurring massive social costs.
• The Ministry of Health and Welfare decided to start with 490 next year, increasing to 613 by 2029 and 813 by 2031.
• Over five years, 3,342 will be added—75% of the 4,724 doctors the government projected would be needed by 2037.
• Jeong Eun-kyeong (Minister of Health and Welfare) said, “Under normal circumstances, we could consider a larger increase, but given that the doubled 2024+2025 cohorts must receive proper education and graduate, 75% was deemed appropriate.”
• The additional quotas will all be allocated to regional doctor admissions.
• The Korean Medical Association is protesting, calling it a “decision devoid of rational reasoning, fixated solely on numbers.”
• Two issues remain: First, essential medical fees must be normalized, and second, measures are needed to prevent doctors from being penalized.
• Related Link.
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Deep Dive.

Heavy Transfer Tax Measures for Multiple Homeowners Introduced.

• The core policy remains unchanged: multiple homeowners will face heavier transfer taxes starting May 9.
• Contracts signed before May 9 will be granted a 4–6 month grace period depending on the region.
• In land transaction permit zones, buyers must prove actual residency—but if tenants are present, they can delay moving in until the lease ends. This allows transactions involving leased properties.
• Yang Ji-young (Shinhan Premier expert) assessed, “They seem to have agonized over balancing tenant protection and preventing speculative gap investments.”
• Nam Hyuk-woo (Woori Bank researcher) predicted, “Properties will continue to emerge not just from multiple homeowners but also elderly single-homeowners.”
• Park Won-gap (KB Kookmin Bank expert) advised, “The first half of the year could be an opportunity to purchase your own home.”
• Related Link.

Heavy Transfer Taxes, Next: Higher Property Holding Taxes.

• Joo Jeong-wan (JoongAng Ilbo columnist) assessed, “If the Moon Jae-in administration was mild, the Lee Jae-myung government is much spicier.”
• Failing to stabilize housing prices is still similar. The promise of “not controlling housing prices through taxes” has already been abandoned.
• Joo Jeong-wan forecasted that after heavy transfer taxes, property holding taxes would rise. Because if only transfer taxes increase without raising holding taxes, the already scarce housing inventory would vanish—something already experienced under the Moon Jae-in administration.
• A temporary surge in listings during the grace period is expected, but it will quickly disappear, he warned.
• Lee Jae-myung (President) posted on X, “If 42,500 purchase-to-rent units hit the market, it’s unlikely housing prices will remain unstable.”
• Related Link.

Why the Change of Heart?

• Lee Jae-myung (president) said, “It’s better to treat using taxes to control housing prices as a last resort” and “We’re trying to delay it as much as possible,” remarks made during a press conference on the 22nd of last month.
• Yet two days later, he announced the suspension of deferrals on heavy taxes for multiple homeowners and has since been flooding X with hardline statements almost daily.
• Ko Jeong-ae (JoongAng Sunday editor-in-chief) warned, “In the absence of explanation, speculation, conjecture, cynicism, and conspiracy theories seep in.”
• Related Link.
• Related Link.

National Tax Revenue Exceeds Forecast.

• In 2023 and 2024, collections fell short by 56.5 trillion won and 30.8 trillion won, respectively.
• Last year, the deficit was 8.5 trillion won against the original budget but turned into a 1.8 trillion won surplus against the supplementary budget.
• Technically, it’s accurate to describe three consecutive years of deficits.
• Though global surplus funds amount to about 3.2 trillion won, usable resources are barely 0.1 trillion won.
• This year, corporate tax revenue is expected to surge, potentially boosting overall tax revenue significantly.
• Projections suggest a supplementary budget of 10–20 trillion won could be feasible.
• Related Link.

Coupang’s Personal Data Accessed 148.05 Million Times.

• Joint investigation results are in. While the leaked data totaled 33.67 million cases, it was confirmed that delivery address pages containing addresses, phone numbers, and shared entrance passwords were repeatedly accessed multiple times.
• Coupang claimed only 3,370 records were separately stored by the hacker, but there is also a possibility they were transmitted to overseas cloud storage.

A First Acquittal Under the Serious Disaster Punishment Act.

• The court acquitted Jeong Do-won (SamPyung Group chairman).
• “It cannot be conclusively stated that he was in a position to concretely and substantively fulfill the obligations stipulated by the Serious Disaster Punishment Act.”
• The accident occurred when the ground collapsed during blasting operations, killing three workers.
• Prosecutors indicted Jeong, arguing he was the managerial authority exercising substantive and ultimate power—but the court disagreed.
• The SamPyung Industries corporation was also acquitted.
• Only four individuals—a safety manager and three supervisors—received suspended prison sentences of 1 to 1.5 years with two years’ probation.
• Related Link.

Another Take.

Jeon Han-gil’s Sudden Intervention: A Strategic Divorce?

• Jang Dong-hyeok (People Power Party leader) abruptly stated, “A party’s primary goal is to win elections” and added, “What the public expects from the People Power Party is a change from the past.”
• Shin Dong-wook (People Power Party supreme council member) said, “We must now demonstrate efforts to become a party appealing to moderates.”
• Kim Min-su (People Power Party supreme council member) also remarked, “Nothing can be achieved without winning elections.”
• These comments followed YouTuber Jeon Han-gil—leader of the “Yoon Again” faction—demanding, “Answer within three days.”
• Ahn Sang-hoon (People Power Party lawmaker, classified as pro-Yoon) criticized, “This is a political sham divorce.” Lee Jun-seok (Reform Party leader) also condemned, “Publicly severing ties while privately embracing.”
• Jeon Han-gil claimed, “Kim Min-su told me, ‘Brother, just wait a little longer.’”
• Jang Dong-hyeok appeared on Munhwa Ilbo’s YouTube channel and left an ambiguous remark: “The narrative of division is a frame, and no matter how we express it, we cannot escape the frame of division.” Chosun Ilbo assessed, “Nothing has changed.”
• Related Link.
• Related Link.

“They Fought as if Death Was Programmed.”.

• This refers to North Korean soldiers deployed as Russian mercenaries in the Ukraine war. Reports say North Korean troops led assault operations, and after they were killed, Russian forces would advance.
• North Korea reportedly sent 20,000 troops in three batches, with estimates of 1,500–2,000 dead and 4,000–5,000 wounded.
• According to JoongAng Ilbo, up to 10,000 North Korean troops are currently engaged in combat operations in Kursk.
• Related Link.
• Related Link.

Jeong Dong-young’s Apology.

• “Deep regret regarding the reckless drone incursion.”
• Jeong Dong-young (Unification Minister)’s apology is the first from the South Korean government.
• He reportedly did not communicate with the Blue House.
• This apology pertains not to the Yoon Suk-yeol administration’s drone incursions but to the incident under the Lee Jae-myung government where civilians flew drones toward North Korea.
• Related Link.

The Fix.

80,000 Won for 10 Years, Then 210,000 Won for 5 Years.

• This is the profit structure of the Gyeongnam Provincial Pension introduced by Gyeongsangnam-do.
• It filled its 10,000-person quota within three days and decided to recruit an additional 10,000 people.
• It is a system designed to fill the income gap until national pension payments begin after retirement.
• Residents of Gyeongnam Province aged 40–54 are eligible. The province adds 20,000 won to the 80,000 won contribution, making it 100,000 won.
• It can be received after five years from the first deposit and once the recipient is 55 or older.
• If 80,000 won is deposited into a term savings account, it becomes 9.6 million won; with the 20,000 won subsidy, it totals 13.02 million won.
• If received in five annual installments from age 60, it amounts to 217,000 won per month.
• Related Link.

Flexibility + Social Safety Net.

• Denmark’s Flexcurity model combines flexibility (Flexibility) and security (Security).
• It is Lee Jae-myung (president)’s proposal: “To believe there’s a way to survive even after being laid off or quitting during an economic downturn, we must ultimately expand the safety net. Workers should take the long view and compromise on flexibility, while businesses, having secured flexibility and thus generating income, must share some of it.”
• A pointed question arose: “If we pay foreign workers the minimum wage of 2.2 million won, what happens to domestic workers’ jobs?”
• “Once hired, companies must retain workers even during downturns, so they avoid regular positions altogether. They use non-regular workers, subcontract, and subcontractors create ‘volume teams’—a distorted structure of re-subcontracting.”
• The solution, they argue, is Flexibility + Security.
• Related Link.

Proposed Ban on Animal Ownership for Abusers.

• Legislation is being prepared to prohibit convicted animal abusers from owning, caring for, or managing animals for 1–5 years, but concerns arise over excessive restrictions on basic rights.
• The Ministry of Agriculture, Food and Rural Affairs is reviewing the introduction of a breeding ban system.
• Animals’ legal status is that of property. Injuring an animal is treated as property damage, and insurance payouts are calculated as material compensation. Critics argue it is legally inconsistent to restrict ownership for damaging one’s own property.
• The National Assembly Legislative Research Service emphasized, “A balanced approach must be sought between conflicting values.”
• Related Link.

China: The World’s First Electric State.

• Instead of a petrostate, an electrostate—The Economist’s five-year-old prophecy has materialized. Last year, electricity surpassed 30% of China’s final energy consumption.
• Clean energy technology accounts for over 10% of Chinese GDP, contributing 26% to growth rates.
• South Korea? Electricity constitutes about 22%. Green industries barely exceed 1% of GDP.
• While China becomes an electric state, the U.S. is regressing to a fossil state. South Korea? Expanding nuclear power share.
• Kim Byung-kwon (director of the Green Transition Institute) warned, “If South Korea isolates itself by pursuing a ‘nuclear power state’ path, future green industrial opportunities will vanish.”
• Related Link.
• Related Link.

ICYMI.

“Buy Gold in Turbulent Times.”.

• An old Chinese saying: “Buy antiques in peaceful times, buy gold in turbulent times.”
• Last year, Chinese people purchased 432 tons of gold.
• Humankind has mined 187,000 tons of gold to date. Only 57,000 tons remain underground.
• While its limited supply may drive up value, it also reflects surging global liquidity and the depreciation of money.
• Related Link.

Sold Stocks and Bonds to Buy Gangnam Apartments.

• This contradicts the Lee Jae-myung government’s money movement trends.
• Since last year’s June 27 measures, 15% of housing purchase funds in Gangnam’s three districts and Yongsan-gu came from stocks and bonds.
• Last year, 3.8916 trillion won of stock and bond sale proceeds were used for housing purchases in Seoul.
• Will this year—with the Kospi surpassing 5,000—be different?
• We’ll have to wait and see.

“Ads Are Coming to AI, Except for Claude.”.

• An excerpt from Anthropic’s Super Bowl ad.
• An episode where a trainer, asked, “Can I get six-pack abs quickly?” recommends, “Try the Key Height Insoles Step Boost Max.”
• It’s an ad mocking ChatGPT for inserting ads while launching an $8 budget plan.
• According to Sensor Tower, in-app purchase revenue from generative AI apps reached $5.04 billion last year.
• South Korea accounted for about $240 million.
• Related Link.

Worth Reading.

Diversity Is Competitiveness.

• Companies in the top 25% for gender and cultural diversity were 39% more likely to outperform industry averages than those in the bottom 25%—a McKinsey finding.
• A Boston Consulting Group study found that diverse leadership teams generated 19% more innovation-driven revenue than non-diverse ones.
• Research also showed that diverse teams make decisions twice as fast as homogeneous ones.
• Hong Sung-soo (Sookmyung Women’s University professor) pointed out, “South Korea has never even properly implemented diversity policies.” Female executives account for just 7.4% of the top 500 companies by revenue.
• Hong emphasized, “Diversity must be re-examined not just as an ethical imperative but as a matter of national sustainability and survival strategy.” “It’s both an ethical choice for the future of the nation and community and a pragmatic, strategic one.”
• Related Link.

Two Years and Out: Could Extending the Period Help?

• An old issue. Cut after two years or let them stay until three? If they’ll be cut anyway, isn’t this false hope?
• The 2007 Roh Moo-hyun administration allowed non-regular employment with the condition that workers become regular employees after two years.
• When the two-year mark passed in 2009, debates erupted over extending the limit—but it was decided against. The logic was that workers should naturally convert to regular status after two years, cementing the formula “fixed-term = two years.” And now, two decades have nearly passed.
• The Park Geun-hye administration attempted to extend it to four years but failed.
• As of late last year, South Korea had 8.57 million non-regular workers, of which 5.34 million were fixed-term. The conversion rate to regular status was 8.6% as of the end of 2024.
• Park Joong-hyun (The Dong-A Ilbo editorial writer) emphasized, “The experience of working steadily at one workplace for three to four years is the first rung on the career ladder that today’s young job seekers need.”
• Related Link.

No Need to Fight Among Ourselves.

• Trump broke the promise. Trump’s predatory hegemony makes no exceptions for allies.
• The immediate reason is anger over the U.S. Congress dragging its feet on legislation, but there are also mentions of non-tariff barriers being the issue.
• Different diagnoses lead to different responses.
• South Korea currently faces not only tariffs but also security cooperation, nuclear-powered submarines, and spent nuclear fuel reprocessing.
• Moon Byung-ki (Dong-A Ilbo political editor) warned, “Disagreements are natural, but letting them lead to division is dangerous.”
• “Predatory hegemony demands a harsher price from divided opponents,” he added.
• Related Link.

An Era of AI Civil Engineering.

• Kim Sang-gyun (Kyung Hee University professor) emphasized, “Humans are still necessary.” The point is not how much time we save, but what we newly design with the time saved.
• “The key to the AI era lies not in whether we can protect our jobs, but in how we redefine our roles,” he stressed.
• Lee Jae-myung (president)’s remark that “We cannot avoid the giant cart” is also telling. Hermann Hesse (writer) advised in *Beneath the Wheel*:
• “In any case, don’t get exhausted. Otherwise, you might end up crushed under the cartwheel.”
• Building an AI ecosystem must differ from civil engineering. Kim Sang-gyun stressed, “More investment is needed in areas like social education to cultivate AI literacy and public programs that help citizens adjust their pace.”
• Related Link.
• Related Link.

Was Solidarity Between South Korea and Japan Impossible?

• Mark Carney (former Canadian Prime Minister) emphasized at the Davos Forum, “Middle powers must act together.” His warning—“If you don’t take a seat at the table, you’ll end up on the menu”—applies to South Korea and Japan. They’ve been dragged into tariff negotiations and are now fuming over delays in payments.
• Carney warned, “Negotiating from a position of weakness means accepting whatever is offered and competing over who complies more obediently.”
• Gil Yun-hyung (Hankyoreh columnist) views South Korea and Japan as trapped in a prisoner’s dilemma. Cooperation is feared, and by confessing separately, they ultimately hand Trump an easy victory.
• “A brutal competition has unfolded between South Korea and Japan over who better submits to U.S. tyranny. Is quietly following the path they’ve laid out our only way to survive?”
• Related Link.