200,000 Electrons and 1 Million Nicks.

• U.S. markets crashed, but Korea surged unchecked.
• Samsung Electronics and SK Hynix hit 200,000 won and 1,000,500 won respectively. The KOSPI index reached 5,969.6—all-time highs across the board.
• Just 30 points left to 6,000.
• Individuals and foreigners net-sold 2.3 trillion won and 0.2 trillion won respectively, while institutions net-bought 2.4 trillion won.
• Lee Jae-myung (President) pledged a KOSPI 5,000, but jokes now circulate: won’t hitting 6,000 violate the promise?
• The global AI revolution and semiconductor demand helped, but dominant assessments credit the two Commercial Act revisions and the “money move” strategy. Above all, the restoration of orderly democracy after martial law and impeachment restored faith in the Korean economy.

Is It Too Late to Jump In? Advice for FOMO Investors.

• Kim Jong-min (Samsung Securities researcher) assessed it as “a market dominated by the logic of money.” “Volatility will surge if liquidity weakens or earnings fail to support stock prices, but there’s no reason to leave the party just because of invisible risks,” he explained.
• FOMO stands for Fear of Missing Out—a fear of missing opportunities in a rapidly rising market.
• A slowdown in semiconductor earnings growth or reduced global Big Tech CAPEX (capital expenditure) would signal an exit, but analysts broadly agree the uptrend still has room.
• SK Securities raised target prices for Samsung Electronics and SK Hynix to 300,000 won and 1.6 million won, respectively.
• Kim Seong-no (IBK Securities researcher) forecasts that combined operating profits of Samsung Electronics and SK Hynix will jump from 87 trillion won last year to 255 trillion won this year.
• The nature of capital inflows has also shifted: retirement pensions are flowing into the stock market and expected to grow further. The ETF market has gained momentum too.
• Above all, earnings prospects are strong. According to FnGuide, operating profits of KOSPI-listed companies are projected to rise from 179 trillion won last year to 549 trillion won this year—the average consensus of major brokerages.
• While some criticize the heavy semiconductor weight, Taiwan’s TSMC (1.9 trillion dollars) accounts for nearly 60% of its market (total 3.3 trillion dollars). What about Korea? Samsung Electronics (0.9 trillion dollars) and SK Hynix (0.4 trillion dollars) now make up 46% of the KOSPI’s 2.8 trillion dollar market cap.
• The KOSPI’s PER (price-to-earnings ratio) has risen to 21.1x. Short-term corrections are possible, so index products are preferable to individual stocks—and dollar-cost averaging beats lump-sum investing.
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Trump’s 10% Global Tariff Takes Effect.

• “Any country attempting to play games with the Supreme Court ruling will face much higher tariffs and even more severe measures,” he warned.
• In a Truth Social post, Trump claimed, “There is no need to return to Congress to approve tariffs.” This signals his intent to continue imposing tariffs without accepting the Supreme Court’s ruling.

What Matters Now.

Do Not Defy the Government.

• Lee Jae-myung (President) posted on X: “While there’s advice not to bet against the market, there’s also wisdom not to defy the government,” he warned, sharing a Bank of Korea announcement that the housing price outlook index fell by its largest margin in 43 months.
• The index dropped from 124 in January to 108 in February. A reading above 100 means more consumers expect home prices to rise a year later.
• At a Blue House State Council meeting, he declared, “Real estate is the root of all national problems,” adding, “We must make it clear that holding property for speculation or investment is a futile endeavor.”
• Though the decline is a positive signal, a reading above 100 still indicates many citizens expect prices to rise.
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A Buyer’s Market Emerges.

• The narrative is that asking prices no longer drive up home values.
• A Han Kyoreh-interviewed Gangnam realtor said, “Sellers are terrified,” adding, “Many 84-square-meter units are now listed around 2.8 billion won, up from 2.5 billion.”
• In Gangnam-gu, apartments that once asked 12.8 billion won have seen offers drop to 11 billion won.
• Woo Byung-tak (Shinhan Premier Senior Advisor) noted, “While inventory is rising and prices are falling, whether this signals a sustained downward trend remains uncertain.”
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Arrest Motion for Kang Seon-woo Passes.

• 164 votes in favor, 87 against.
• With 162 Democratic Party lawmakers, this implies a significant number of party members voted in favor.
• Kang Seon-woo (Independent lawmaker) claimed, “If I had sought money in exchange for nomination, there would be no reason to order immediate return, report to the nomination committee’s secretary, or go through the trouble of returning the money.”
• The argument that “it doesn’t make sense for me to have first requested the return of money that was given five times” is illogical. Kang received 100 million won from Kim Kyung (Seoul City Council member) just before the nomination and was indeed nominated. The 322 million won he claims to have returned in five installments was received in January and May of the year after his election.
• It was also confirmed that Kang suggested giving Kim Kyung a single nomination. There is also a recording of Kim Byung-ki (then Democratic Party nomination committee secretary) instructing him to return the money.

Deep Dive.

Judicial Reform Laws Face Backlash as Chief Justice Convenes Emergency Meeting.

• Cho Hee-dae (Chief Justice) is spearheading the effort. He protested, “This involves significant content that could constitute a constitutional amendment.”
• The Democratic Party plans to process the bills sequentially in the plenary session starting on the 25th.
• Kwak Sang-eon (Democratic Party lawmaker) even stated, “If this continues, I cannot vote in favor,” voicing opposition.
• The Hankyoreh editorial noted, “While bills with public consensus should be passed, those with significant side-effect risks require further deliberation.”
• The “legal distortion” clause may still see last-minute revisions. Hong Ik-pyo (Blue House Political Affairs Chief) remarked, “They seem to still be adjusting the wording.”
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No Prosecutors in the SIU.

• It has been decided to unify investigators under one system.
• As the Democratic Party raised objections that the SIU could become a second prosecutors’ office, amendments are being made to the SIU Act. The scope of investigations has been reduced from nine major crimes to six.
• Election crimes will be handled by the police, not the SIU.
• The head of the prosecution service will be called the Prosecutor General. While the Democratic Party insisted the Prosecutor General should head the prosecution service, the government’s position prevailed.

Only Gwangju-Jeonnam Integration Remains.

• Daejeon-Chungnam has been postponed for now. The People Power Party opposes it, and both the Chungnam Provincial Assembly and Daejeon City Council are resisting. The Daegu-Gyeongbuk integration is also likely to collapse.
• The Gwangju-Jeonnam Integration Special Act passed the Legislation and Judiciary Committee. With no significant partisan disagreement, it is highly likely to pass the plenary session. Following the June local elections, the Jeonnam-Gwangju Special Self-Governing Province will launch on July 1.

Who Opposed the Daegu-Gyeongbuk Integration?

• Lee Jae-myung (President) has stated he will not push forward if the opposition party disagrees.
• The People Power Party is descending into internal conflict. They need to proceed with integration, but being dragged by the government looks bad—and outright opposition is awkward.
• When Joo Ho-young (People Power Party lawmaker) demanded, “The leadership should clarify who opposed it,” Song Un-seok (People Power Party floor leader) responded, “I feel my honor has been tarnished,” and submitted a resignation.

Full Survey of Non-Farmland to Be Conducted.

• “Even those wishing to return to farming or rural life find it difficult due to high land prices,” while noting, “If land prices were not expected to rise, owners would naturally sell—yet even farmland has become a speculative asset.”
• Article 121 of the Constitution stipulates the principle of “farmer ownership” (경자유전): land should be owned by those who farm it. Lee Jae-myung (President) has instructed, “If necessary, a full survey and mandatory sales orders must be implemented.”
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Kim Nam-joon to Run in Gyeyang.

• He is a close aide to Lee Jae-myung (President).
• Amid Song Young-gil (former Democratic Party leader)’s declaration to run in Gyeyang, Kim Nam-joon (former Blue House spokesperson) has also signaled he will not back down.
• Kim Nam-joon stepped down as Blue House spokesperson before Song Young-gil’s acquittal.
• Gyeyang was originally Song Young-gil’s constituency, but it became vacant when he ran for Seoul mayor and Lee Jae-myung won the seat. With Lee Jae-myung now president, the vacant seat has sparked a primary battle between Song Young-gil and Kim Nam-joon.

Another Take.

Jinjeon Monk Sentenced to Six Years.

• Jeon Seong-bae (Jinjeon Monk) was found guilty of receiving money and goods from the Unification Church. It was confirmed that he delivered bags, necklaces, and other items to Kim Keon-hee (wife of former President Yoon Suk-yeol) on three occasions.
• Kim Keon-hee was convicted only for one of the two bags, while Jeon Seong-bae was convicted for both.
• Kim Keon-hee received a sentence of 1 year and 8 months for solicitation bribery, yet the errand runner’s punishment is far heavier.
• Jin-kwan Lee (Seoul Central District Court judge), who sentenced Jeon Seong-bae to six years, is the same judge who gave Han Deok-soo (former Prime Minister) 23 years.
• Jeon Seong-bae requested an advisory position at the Unification Group in exchange for delivering gifts to Kim Keon-hee. Judge Lee ruled, “If the solicitation occurs beforehand, the brokerage is valid even if it happens later.”
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Smartphone Ban in Classrooms, But What About Breaks?

• Legislation banning smartphone use during class takes effect next month. Break times and lunchtimes will be subject to teachers’ discretion.
• A survey by the Korean Federation of Teachers’ Associations found that schools uniformly confiscating phones accounted for 14% of elementary schools, 61% of middle schools, and 40% of high schools.
• Han Hee-chang (spokesperson for the Practical Education Teachers’ Association) said, “In a 40-minute class, 10 minutes are often wasted just asking students to put away their phones.”
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An Era of One Million Credit Defaulters.

• “Silent Despair,” reads the Chosun Ilbo’s front-page lead.
• The number of individuals overdue on financial debts for over 90 days has surged to the highest level since 2017.
• Half of credit defaulters are 40–50-year-old breadwinners: 220,000 in their 40s, 230,000 in their 50s.
• Park Jeong-su (Sogang University professor) noted, “Structurally, the number of people falling into credit default due to unmanageable repayment capacity is likely to grow.”
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“In 2028, We’re All Doomed,” the Report Warns.

• Citrine Research’s report has sent shockwaves through Wall Street.
• It’s not a new narrative: warnings that AI will lead to white-collar unemployment and financial crises.
• The economic value we enjoy is built on human intelligence. But what if AI surpassing human intelligence becomes as common as electricity?
• In an era where AI adopts stablecoins as payment methods and captures 0.01% fees by finding optimal routes, will investment strategies still matter?
• “A warning that the ground is shaking beneath our feet.”
• Coincidentally, yesterday IBM’s stock plummeted 13%. Its legacy mainframes—built before 1990 and written in COBOL—were protected by the language’s obsolescence. But now, with Claude code solving those problems, fears emerge that IBM’s business model could collapse entirely.
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One Year of Trump, Accelerating the Decline of an Aging America.

• Employment is at its lowest level in 20 years. Companies are hesitant to hire and cutting labor costs.
• Immigration has slowed, keeping unemployment lower than expected.
• Prices are relatively stable, but energy costs have soared.
• The U.S. trade deficit remains large. The tariff war failed to resolve it.
• Over 4 million people lost health insurance after coverage was reduced.
• Trump’s approval ratings have fallen to historic lows.
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The Fix.

Is the Power Shortage Real?

• Lee Sang-min (research fellow at the Korea Economic Research Institute) pointed out, “The problem is that there’s excess electricity for 364 days of the year.”
• There are peak days in summer and winter when electricity use spikes, and the reality is that trillions of won are spent building nuclear power plants to meet those peaks. On normal days, 30GW remains unused. Does this make sense?
• In spring and autumn, when electricity is abundant, solar power plants often need to be shut down. This year, forecasts suggest 1,000GWh will require output control.
• Electricity rates remain rigid. Since rates are the same nationwide, there’s no incentive to seek cheaper power. There’s also temporal distortion: electricity isn’t sold cheaper when it’s abundant. Is this the best approach?
• Lee noted, “Without dynamic pricing, virtual power plants (VPPs) can’t function properly.” The idea is to encourage use when prices are low and reduce consumption when they’re high. “For a resource-poor nation, efficiency is the only option left. We have the technology and the laws. What we lack is resolve and courage.”
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140 Wildfires Already This Year.

• As of February 22, the 2016–2025 average was 98 cases.
• This year, there has been less rain. The historical average is 35mm, but this year it’s under 7mm.
• Yoo Sang-uk (Hanyang University professor) noted, “It’s hard to dismiss this as a natural phenomenon.”
• Kim Hae-dong (Keimyung University professor) warned, “Temperatures will become hotter and drier, winds stronger, and wildfire risks will grow.”
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ICYMI.

U.S. House Subpoenas Coupang CEO for Investigation.

• Herald Rogers (Coupang Korea CEO) testified privately before the House Judiciary Committee.
• The subpoena from Jim Jordan (U.S. House Judiciary Committee Chairman) stated, “South Korean regulators are intensifying discriminatory regulations targeting U.S. tech companies.”
• The U.S. government may also invoke Section 301 of the Trade Act to retaliate. The prevailing view is that this is not a diplomatic issue but a trade conflict fueled by Coupang’s lobbying, unlikely to escalate further.
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Versailles Costs 60,000 Won, Gyeongbokgung Just 3,000.

• Himeji Castle in Japan is raising its fee from 1,000 yen to 2,500 yen—roughly 23,300 won.
• Machu Picchu in Peru costs 163 soles, about 70,000 won.
• Calls to raise Korea’s 20-year-old 3,000-won palace admission fee are growing. Deoksugung, Changgyeonggung, and Jongmyo Shrine are even cheaper at 1,000 won.
• Critics argue for preserving universal cultural access. Himeji Castle sells annual passes for 5,000 yen, with locals paying only 1,000 yen.
• Versailles charges foreigners 35 euros, but European visitors pay 32 euros—a tiered pricing model.
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Daiso to Launch 100-Won Sanitary Pads.

• It’s a collaboration product with KleanNara. The current 10-pack priced at 2,000 won and 4-pack at 1,000 won will now be sold as a 10-pack for 1,000 won.
• Coupang’s 99-won sanitary pads sold out within two days.

Worth Reading.

What’s Wrong with Women Reading More?

• Last year, women accounted for 71% of Kyobo Bookstore’s Korean novel buyers.
• Choi Moon-sun (Korea Ilbo columnist) assessed, “Women have been reading more and more, and the space for female authors—who write stories women relate to and empathize with—has expanded accordingly.”
• “Literary diversity was lacking for a long time and is now being filled. Male authors cannot be treated as special. Why confine literature to gender? The rise of female authors is not a ‘problem’ but a ‘trend.’ If anyone wants to, they should just read and write more diligently.”
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Ha-Joon Chang Is Wrong.

• Ha-Joon Chang (London School of Economics professor) has long criticized shareholder capitalism. First, he argued that we must acknowledge the role of Korea’s chaebol system as venture capital. Second, he warned that without controlling the greed of shareholder capitalism, companies could become trapped in short-term performance and lose growth momentum.
• Ryu Young-jae (Sustinvest CEO) calls Chang’s argument “overly sentimental.” “It seems he doesn’t realize how much minority shareholders have been exploited by controlling shareholders.”
• Unlike Chang, who defended the chaebol system as an alternative to shareholder capitalism, Ryu sees governance reform as the essential solution. He believes that independent boards—not the chaebol system—can curb the greed of shareholder capitalism.
• Not all shareholders are greedy, and owner-shareholders don’t always make the right decisions. While activist populism should be guarded against, shareholders ultimately drive companies.
• Ryu emphasized, “We must discuss shareholders’ rights alongside their responsibilities.” Thus, he supports introducing differential voting rights to defend management control, provided governance transparency is guaranteed.
• Ryu stressed that the National Pension Service—which holds 250 trillion won in shares—must act as a universal owner. If necessary, it should dispatch directors and voice opposition at shareholder meetings. It must remain a responsible shareholder enforcing public and sustainable values.
• Follow-up measures to the Commercial Act revision are also needed. Ryu noted, “Large law firms always find loopholes,” and stressed, “We must change the reality where the guilty go unpunished if they have money or influence.”
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Don’t Wrestle with the Pig.

• Bernard Shaw (writer) said, “When you wrestle with a pig, both get dirty—but the pig likes it.”
• Kang Jun-man (professor at Jeonbuk National University) advised, “Abandon the complex of party defections and splits.” His analysis: the overestimated influence of hardline party members and supporters has regressed internal democracy, making it easier for party leaders to act autocratically.
• This is advice for Han Dong-hoon (former People Power Party leader). Having wrestled enough with the pig (Jang Dong-hyeok), it’s time to build a vision for a new start before things get dirtier.
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