No Rush to Pass the Judicial Distortion Crime Law.

• Rep. Jung Chung-rae (Democratic Party leader) is pushing for speed, saying, “If we miss this window, we may never know when judicial reform can be promised.”
• The judicial distortion crime law would punish judges or prosecutors who intentionally misapply statutes.
• The Participatory Democracy Institute argued, “Since the purpose of introducing the judicial distortion crime is to realize judicial justice, the bill must ensure clarity and specificity,” adding, “It needs more deliberation.”
• In an editorial, Kyunghyang Shinmun pointed out, “If legislation aimed at resolving judicial distrust threatens judicial independence, it is no different from cutting off one’s nose to spite one’s face.” The piece added, “Legislation with legitimacy can be pursued at any time and achieved with public consent.”
• The Democratic Party’s goal is to pass the three judicial reform bills—including the judicial distortion crime, trial petition, and Supreme Court justice expansion—within this month.
• Related Link.
• Related Link.

Legal Distortion? Concerns About Abuse as Judicial Control.

• Cho Jae-yeon (Sungkyunkwan University professor) pointed out, “Investigating the grounds of investigations or trials under the pretext of determining legal distortion undermines their independence.”
• Progressive-leaning newspapers like The Hankyoreh and Kyunghyang Shinmun also adopted critical tones.
• Counterarguments exist. No Soo-hwan (Sungkyunkwan University professor) noted, “The idea is to punish extreme cases, not judges who make honest mistakes while working diligently.”
• Cho Young-seon (Donghwa Law Firm attorney) argued, “Even without punishment, the law could encourage self-reflection.”
• Related Link.

What Matters Now.

Global 15% Tariff: South Korea Relatively Advantaged.

• This is according to Koo Yoon-cheol (Minister of Economy and Finance).
• The global 15% tariff is the baseline for all countries.
• South Korea’s base tariff is 0% under the Korea-US FTA, so 15% + 0% = 15%.
• Countries with a base tariff of 2.5% would face 17.5%.

Delaying $20 Billion Investment Risks Retaliation.

• The U.S. Supreme Court ruled reciprocal tariffs unlawful, but this does not mean South Korea can indefinitely postpone investments in the U.S.
• Donald Trump (U.S. President) plans to temporarily apply Section 122 of the trade law—which caps tariffs at 15%—while mobilizing stronger tools like Section 301, which has no tariff limits.
• If South Korea delays the promised investment, it could become a target under Section 301.

Elliott’s $116M ISDS Claim Overturned in Appeal.

• This lawsuit was filed by Elliott Management (private equity fund) against the South Korean government, claiming losses from the merger of Cheil Industries and Samsung C&T.
• It initially demanded 890M USD, but the Permanent Court of Arbitration (PCA) recognized 430M USD, with interest bringing the total to around 1.16B USD.
• The South Korean government filed a lawsuit to cancel the ruling, lost in the first trial, but won in the second. The government argued that the National Pension Service is not a state agency and that it did not interfere in the pension fund’s decision-making.
• This differs from the Lone Star case. In the Lone Star case, the compensation ruling was completely canceled, whereas in the Elliott case, the cancellation lawsuit was won, meaning the validity of the ruling must be re-examined. For now, the 1.16B USD has been invalidated.
• Justice Minister Jeong Seong-ho (Minister of Justice) stated, “We will do our best in the upcoming remand arbitration proceedings.”
• Related Link.

Lee Jae-myung and Lula.

• It was a meeting of presidents from laborer backgrounds.
• The relationship with Brazil was elevated from a comprehensive partnership to a strategic partnership.
• Luiz Inácio Lula da Silva (Brazilian President) said, “Investment from Korean companies in critical mineral projects is needed.”
• Kim Yong-beom (Blue House Policy Chief) left this assessment on Facebook: “The closeness between the two exceeded expectations. Their empathy did not stem solely from policy similarities. It was a bond forged by shared time—memories of poverty, inequality, oppression, and the struggle to avoid being swept aside.”
• Related Link.

People Power Party’s Gagged Supreme Council Meeting.

• Many expected the impeachment of Yoon to dominate, but the party spent nearly two hours discussing other pressing issues like renaming the party, effectively sidelining the topic.
• Bae Hyun-jin (People Power Party lawmaker) vented, “The political situation is critical, yet they’re talking about irrelevant matters.” Han Ji-ah (People Power Party lawmaker) added, “The agenda order itself was deliberately designed.” Both are pro-Han lawmakers.

People Power Party Support Drops to 32.6%.

• Lowest since Jang Dong-hyeok’s (People Power Party leader) inauguration.
• The Realmeter poll—widely regarded as favorable to conservative parties due to its ARS methodology—shows the gap widening.
• The Democratic Party recorded 48.6%.

Deep Dive.

“Let’s Discuss Daejeon-Chungnam Merger,” Ball Passed to Jang Dong-hyeok.

• It is a proposal by Lee Jae-myung (Democratic Party leader). Both Lee Jae-myung and Jang Dong-hyeok (People Power Party leader) are from South Chungcheong Province.
• Kim Tae-heum (Governor of South Chungcheong) and Lee Jang-woo (Mayor of Daejeon) oppose the merger.
• The Daejeon-Chungnam merger was first proposed by the People Power Party, but the party insists it will not be swayed by the Democratic Party’s timing.
• If unresolved by the end of this month, the election of a unified mayor in the June local elections will be off the table.

Trump Is Riskier, Europe Shakes Hands with China.

• Friedrich Merz (German Chancellor) is visiting China. It’s a de-risking strategy to reduce dependence on the U.S. and mitigate risks from China.
• Last year, Germany’s imports and exports with China were €170.6 billion and €81.2 billion, respectively. Imports were twice as large as exports. Imports increased by 9%, while exports decreased by 10%.
• Europe is not alone. Mark Carney (Canadian Prime Minister) also recently returned from a trip to China.
• The New York Times analyzed it as “a symbolic victory for China.” Xi Jinping (Chinese President) can now tell his people, “We are on the right path. All these countries are paying tribute to us.”
• Related Link.

Tax Burden Rate Rises for First Time in Three Years.

• Last year’s national tax revenue reached 374 trillion won, up 38 trillion won from the previous year.
• Current-price GDP stood at 2,654 trillion won.
• Local taxes are still being compiled, but assuming 115 trillion won, the tax burden rate would be 18.4%—rebounding from 17.6% in Yoon’s third year. The highest record remains 22.1% during Moon’s fifth year.
• The tax burden rate is projected to rise to 19.1% by 2029. The OECD average is 24%.
• Lee Jae-myung (President) stated, “The overall tax burden rate should be increased.”

Students Today Read Books Like Shorts.

• Chungnam Provincial Office of Education conducted a literacy test, finding that only 2.8% of third graders completed readings in full.
• In a survey of middle schoolers, students overly immersed in short-form content scored 28 points in vocabulary—compared to 32 points for those not immersed. 92% of middle schoolers couldn’t read a single passage within a minute.
• Eye-tracking tests revealed that students who failed to finish readings had erratic gaze patterns, with frequent backtracking or regression. Normal reading shows steady gaze pauses like thick grapes, but struggling readers’ eyes never settled.
• Chosun Ilbo criticized, “The number of students suffering from acquired dyslexia is rapidly increasing, yet no countermeasures exist.” Lee Soon-young (Korea University professor) emphasized, “Urgent implementation of tiered education to bridge literacy gaps is essential.”
• Related Link.

Another Take.

‘New Lee Jae-myung’ is reshaping the landscape.

• ‘New Lee Jae-myung’ refers to those who did not support Lee Jae-myung in last year’s election but now back him.
• The original ‘Old Lee Jae-myung’ group barely falls short of 50%, while the ‘New Lee Jae-myung’ group accounts for around 14%. These supporters are propping up Lee’s 63% approval rating.
• According to a Hankyoreh survey, 87% of ‘New Lee Jae-myung’ supporters identify as centrist or conservative. This suggests Lee’s centrist pragmatism has successfully expanded the Democratic Party’s reach.
• Lee Ki-soo (Kyunghyang Shinmun editor) noted, “Only politicians and big voices divide supporters into ‘Old’ and ‘New’—labeling ‘New Lee Jae-myung’ as centrist-conservative outsiders is misguided.”
• The advice: “Great causes, hope, and politics go farther together. To do that, respect differences, avoid crossing lines, and engage in debate.”
• Related Link.
• Related Link.

Conflict Between Cho Kuk and the ‘New Lee Jae-myung’ Faction.

• There were interpretations that the breakdown of merger talks between the Democratic Party and Cho Kuk’s New Party stemmed from backlash by the ‘New Lee Jae-myung’ faction.
• Yoo Si-min (author) and Cho Kuk (leader of the New Party) are both being pushed into the ‘anti-Lee’ camp.
• Cho Kuk posted on Facebook, “Beware of those who sell out the president.”
• “There are people who brandish the ‘New’ label, marginalize core supporters who have upheld the camp as ‘Old,’ and wage battles to establish themselves as the mainstream. These individuals shrink and weaken the support base of the Lee Jae-myung government.”
• Related Link.

“Not the Party, Just Lee Jae-myung.”.

• ‘New Lee Jae-myung’ also clashes with pro-Choo and pro-Moon factions. Kyunghyang Shinmun covered this as a lead story on its front page.
• A senior Democratic Party lawmaker said, “‘New Lee Jae-myung’ are people who support whatever the president does, regardless of the party’s line or policies. The separation of support for the president and the party is manifesting as opposition to Chung Jin-suk.”
• Another Democratic Party lawmaker stated, “People who want to distance themselves from the ideologically rigid yet incompetent activist circles are gathering around Lee Jae-myung’s pragmatic line.”
• Critics argue that some are exploiting these conflicts to deepen divisions.
• Kim Nam-hee (Democratic Party lawmaker), who opposed the merger with Cho Kuk’s New Party, said, “It’s not about who is right or wrong—we must acknowledge that there are differences in experience and perception.”
• Lee Jae-mook (professor at Hankuk University of Foreign Studies) analyzed, “Under the guise of pragmatism, some defectors from conservatism and long-standing moderates are aligning with Lee. Citizens sensitive to stock markets and economic growth differ from traditional Democratic Party supporters.”
• While this debate risks escalating into a new ideological rift, it’s impossible to ignore the visible conflicts and sweep them under the rug.
• Related Link.

“Expelled from ‘Lee Jae-myung’s Village.’”.

• In an Lee Jae-myung fan cafe, 81% of 1,231 voters approved the expulsion of Chung Jin-suk and Lee Sung-yoon (Democratic Party Supreme Council members). Only a fraction of the total 210,000 members participated in the vote.
• The Ddanzi Ilbo forum, perceived as pro-Chung, derides the ‘New Lee Jae-myung’ as ‘New Watermelons’ (new + traitors).
• The DC Inside ‘Lee Jae-myung Does It’ gallery, pro-Lee in orientation, condemns pro-Chung supporters as ‘Ddancheonji’ (Ddanzi Ilbo + Shincheonji).

Launch of the “Prosecutorial Justice Restoration Group.”.

• It is a shortened form of the “Assembly of Lawmakers for the Cancellation of Lee Jae-myung’s Indictment,” which Yoo Si-min (author) once called “a mad act.” 105 Democratic Party lawmakers signed on, and about 60 attended yesterday’s launch ceremony.
• Park Beom-gye (Democratic Party lawmaker) described it as “work to restore constitutional order.”
• Park Sung-jun (Democratic Party lawmaker), who will serve as representative, emphasized, “This is not about rescuing a specific individual. It is about correcting the prosecution’s fabricated and abused indictment power to restore judicial justice.”
• Related Link.

Corporate Giants vs. SMEs: 6.13M vs. 3.07M.

• Large corporations earn 6.13 million won, SMEs earn 3.07 million won. These are wage labor income results from the National Data Service. The gap has widened.
• Woo Suk-jin (Myongji University professor) analyzed, “The link where strong exports also boosted domestic demand has weakened.”
• The gender gap has also widened. Men earn 4.42 million won, women earn 2.89 million won.
• Related Link.

The Fix.

“Tightening Benefits for a Single ‘Smart’ Home.”.

• Earning 1 billion won by saving monthly wages for 10 years incurs a 11.2% tax.
• Living in a 500 million won apartment for 10 years that appreciates to 1.5 billion won incurs only about 0.5% capital gains tax upon sale.
• Lee Sun-hwa (Senior Research Fellow at the National Assembly Futures Institute) pointed out, “This benefit causes a ‘freezing effect’ in major preferred areas.” The idea is that selling becomes burdensome, so people stay put.
• Analysis suggests that strengthening residency conditions in real estate tax reform may not always be good policy. The Moon Jae-in administration eased the 1-household-1-home capital gains tax exemption threshold from 900 million won to 1.2 billion won.
• Kim Hyung-dong (Pai Chai University professor) criticized, “Exempting capital gains tax simply because a home is not high-value is excessive.”
• Kim Won-jang (Samporo TV reporter) argued, “Tax reductions for single-home ownership deepen price gaps between central and peripheral housing,” adding, “The system should be improved to tax by brackets.”

Top 20% Homeowners Own 78% of All Housing Assets.

• An Oxfam Korea report.
• As of 2023, the income of the top 10% is 4.1 times that of the bottom 40%—in 2009, it was 2.4 times.
• Non-regular workers earned 62% of regular workers’ annual salaries in 2003, but only 54% in 2024.
• Relative wages of SME workers compared to large corporations fell from 70% in 2005 to 59% in 2023.
• Annual income for the bottom 50% of earners is 8.58 million won; the top 0.1% earn 1.42 billion won.
• South Korea is a low-tax, low-welfare state—low taxes, minimal benefits. The national burden rate is 72% of the OECD average.
• Public transfer income for the bottom 20% households dropped from 45% in 2009 to 39% in 2023.

ICYMI.

Shrinking the National Standard.

• Manhattan spans 59㎢, Gangnam-gu 40㎢.
• Manhattan has 930,000 housing units, Gangnam-gu 190,000.
• Manhattan is 1.5x larger in area but has nearly 5x more housing units—due to smaller-sized homes.
• For decades, 34 pyeong (108.9㎡) was Korea’s “national standard” (Guk-pyeong). The government designated homes under 85㎡ as “national housing” and offered tax benefits.
• Now, smaller units are more popular. Last year, in metropolitan area apartment subscriptions, 218,047 applicants sought units under 60㎡—surpassing 217,322 applicants for mid-sized units.
• A sign that compact apartments are becoming the new national standard.
• Na Ji-hong (Chosun Ilbo editorial writer) analyzed, “A result of rising single-person households colliding with ‘skyrocketing home prices.’”
• Related Link.

Hyundai’s R+H Project: 10 Trillion Won Investment in Saemangeum.

• Combining the first letters of Robotics and Hydrogen. Hyundai chose Saemangeum for its power supply potential.
• Saemangeum spans 409㎢—140 times the size of Seoul’s Yeouido.
• The plan is to create a green hydrogen system using solar and wind energy.

59 Pediatric Clinics Opened, 89 Closed.

• There was a reason for the pediatric clinic rush. More are closing than opening.
• Choi Yong-jae (President of the Korean Pediatric Hospital Association) said, “If local pediatric clinics disappear, childcare infrastructure collapses,” adding, “Parents will have to move to other cities to raise their children.” The message: “It must be recognized as social infrastructure the state is responsible for.”

Exclusive to Baemin: Lower Fees for Loyalty.

• Baemin has signed an exclusive agreement with Chogajip Yangnyeom Chicken. The standard commission is 7.8%, but it’s reduced to 3.5% if the franchisee doesn’t use Coupang Eats.
• This choice pressures franchise owners. Without participating in promotions, they lose access to discount coupons from headquarters, incurring significant losses.
• A Chogajip franchisee interviewed by The Hankyoreh said, “If we save 2 million won monthly via Baemin promotions, we lose 5 million won from abandoning Coupang Eats sales.” Coupang Eats accounts for 15% of this franchise’s revenue.
• Lee Yeon-joo (Participatory Society Secretary) noted, “If Baemin expands contracts that favor franchises exclusive to its platform, discriminatory practices will become systemic.”
• Out of 1,200 Chogajip franchises, 100 are enrolled in Baemin Only. The Participatory Society and the People’s Law Firm will report the Chogajip headquarters to the Fair Trade Commission.
• Related Link.

Kim Nam-guk’s Return as Democratic Party Spokesperson.

• Kim Nam-guk (former Democratic Party lawmaker), who resigned as a Blue House secretary over the local “nuna” scandal, has returned as the party’s spokesperson. Controversy arose when photos surfaced of him exchanging messages with Moon Jin-seok (Democratic Party lawmaker) regarding personnel requests.
• Classified as one of the seven members of the pro-Moon faction. He did not run in the last general election due to failing to declare cryptocurrency assets.
• Speculation suggests he may run in upcoming local or by-elections.

Worth Reading.

The Era of Cognitive Disease.

• We may be the first generation to experience cognitive decline.
• We watch Netflix dramas on fast-forward, then squander the saved time on shorts.
• It’s a buffet mentality: since we pay a flat rate, the more we consume, the better.
• This is an age where time efficiency (si-seong-bi) reigns supreme—hence the welcome given to spoilers.
• We no longer experience content; we process it.
• Kim Jae-in (Kyung Hee University professor) notes, “It’s not a matter of taste—our cognitive structures have changed.”
• Information consumption has increased, but meaningful connections have not.
• Nor does it lead to production or creation. Such consumption is akin to collecting certification photos.
• “In an era where everyone suffers from the cognitive disease of ‘faster,’ ‘slower’ is the true skill that defies the times.
• But perhaps it will remain a privilege reserved for a select few elites.”
• Related Link.

Revisiting Ji Gwi-yeon’s Specious Reasoning.

• Ji Gwi-yeon (then a judge at Seoul Central District Court) ruled, “The president’s declaration of martial law itself cannot constitute rebellion, and it is difficult to consider it subject to judicial review.” Does this make sense?
• It was neither a national emergency nor a state of hostilities with an enemy. Social order was not so severely disrupted as to hinder administrative or judicial functions.
• Evidence also contradicts claims that martial law was unprepared or lacked a plan to neutralize the National Assembly.
• At 65, he is described as elderly—yet 20% of the population is over 65. After decades in public office, this performance should warrant aggravated punishment, not leniency.
• Kwon Tae-ho (editorial director of The Hankyoreh) noted, “Most glaringly, the verdict omitted the ‘people’—the victims of rebellion.” It was a bizarre trial that seemed to sympathize with the perpetrator.
• Related Link.

Why ‘Yoon Again’ Is Doomed to Fail.

• Because conservatives must court moderates to win. If Jang Dong-hyeok (People Power Party leader) aligns with ‘Yoon Again,’ it’s tantamount to expelling moderates.
• It might be a temporary “see you later” strategy. Those close to Jang Dong-hyeok expect voters to return once Lee Jae-myung’s approval ratings inevitably drop.
• Yeom Yu-seop (Hankook Ilbo reporter) analyzed, “The threshold is too high.” The implication: no matter how much the Democratic Party stumbles, moderate voters won’t return to Yoon Suk-yeol. “Even if Lee Jae-myung fails miserably at governance, would he really incite a rebellion like Yoon Suk-yeol?”
• Related Link.