The Efficacy of a Competent President.

• Stocks are rising, real estate is falling, and even bread prices are set to drop.
• Paris Baguette will reduce prices for six bread items and five cake varieties by 100–1,000 won starting next month. Red bean, soboro, and cream puff breads will drop from 1,600 to 1,500 won, while French butter croissants will fall from 2,500 to 1,500 won.
• CJ CheilJedang announced an additional 5% average price cut for flour-based products. “This is to actively align with the government’s price stabilization policy,” they stated.
• The outcome follows Lee Jae-myung (President) pressuring a State Council meeting: “If sugar prices have fallen, other sugar-based products should follow.”
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Lee Jae-myung’s Approval Rating Hits 67%, Highest Since Inauguration.

• Results from the National Barometer Survey (NBS). It began at 53% in the second week of June, immediately after inauguration.
• Compared to past presidents, it ranks second only to Moon Jae-in and Kim Young-sam.

Gangnam Home Prices Fall After 100 Weeks.

• Home prices in Gangnam’s three districts have turned downward.
• According to data from the Korea Real Estate Institute, Gangnam, Songpa, and Seocho districts recorded declines of -0.06%, -0.03%, and -0.02% respectively, as of the fourth week of February. Yongsan District also fell by -0.01%.
• Seoul’s overall home prices rose by 0.11%, but the growth rate has slowed for four consecutive weeks.
• Urgent sales listings are piling up ahead of the May 9th multiple-homeowner capital gains tax surcharge.
• Park Won-gap (KB Kookmin Bank Senior Research Fellow) said, “The impact will gradually extend to Seoul’s outskirts,” adding, “Even after the tax surcharge takes effect, rental business listings may continue to emerge.”
• Listings have increased by 30% compared to a month ago. A waiting game between sellers and buyers has begun.

What Matters Now.

“Holding On Is Free, Government Authority Relies on Trust and Consistency.”.

• President Lee Jae-myung (President), emboldened by confidence, has been issuing tough messages daily.
• Yesterday’s 11:48 PM X post warned, “For a government to function properly, its authority must be maintained—once lost, it becomes not just a waddling duck but a plant.” He added, “Locked-up properties will suffocate, and holding on will only increase the burden.”
• “Holding on is free,” but the message clarifies, “We will mobilize all policy tools to create a situation where selling—not holding—is more advantageous, not only for multiple-homeowners but also for single-homeowners using properties for speculative investment rather than residence.”
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Passage of the “Legal Distortion” Law.

• The People Power Party refused to vote. It passed with 163 in favor, 3 against, and 4 abstentions.
• Kim Yong-min (Democratic Party lawmaker) and Choo Mi-ae (Democratic Party lawmaker), who opposed the amendment, boycotted the vote in protest.
• Kwak Sang-eon (Democratic Party lawmaker) cast the sole opposition vote.
• Park Eun-jung (Justice Reform Party lawmaker) and Jeon Jong-deok (Progressive Party lawmaker) also abstained.
• The Democratic Party immediately proposed the Trial Petition Act (Constitutional Court Act amendment). The People Power Party launched a filibuster. It can end after 24 hours and proceed to a vote.
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Mistrial Judges Face Up to 10 Years in Prison.

• Applies only to criminal cases. Limited to instances where judges acknowledge criminal facts while aware of a lack of lawful evidence, but constitutional debates persist.
• Kyeongyang Shinmun noted, “The penalty clause is unlikely to function effectively and may instead fuel social conflict.”
• Lim Jae-sung (Haemaru Law Firm) pointed out, “Proving a judge or prosecutor’s intent is difficult, making punishment unlikely.” He added, “Problematic rulings that should face public scrutiny may be disguised as legitimate or just decisions under the guise of non-indictment, non-prosecution, or acquittal.”
• JoongAng Ilbo’s front-page headline reads, “An era where judges and prosecutors face complaints if things go wrong.”
• The bill also expands the scope of espionage charges from “enemy states” to “foreign entities or equivalent organizations”—the first revision in 73 years since the 1953 provision.
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Coupang Slapped with ₩2.19 Billion Penalty for Abuse of Power.

• The Fair Trade Commission stepped in.
• It set profit margin targets for suppliers and demanded price reductions if they fell short.
• Suppliers were forced to cover advertising fees and data charges.
• Investigations revealed threats to halt or reduce orders during these coercive practices.

People Power Party Support Drops to 17%.

• The party polled 29% even immediately after martial law, but has fallen steadily since the inauguration of the Lee Jae-myung government.
• Not a single region shows a lead—not even Daegu-Gyeongbuk, where it tied the Democratic Party at 28%.
• Though support rebounded to 25% after Jang Dong-hyeok (People Power Party leader) took office, it plummeted following Yoon Suk-yeol’s life sentence.
• Party lawmakers gathered to urge, “We must find a breakthrough,” but reached no conclusion. Eom Tae-young (People Power Party lawmaker) remarked, “It’s shocking—it feels like we’ve fallen not to the bottom but into the basement.”
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Daegu-Gyeongbuk Integration Gains People Power Party Approval.

• The bill will be processed alongside the Gwangju-Jeonnam integration special act in the plenary session on July 1.
• Some Gyeongbuk lawmakers opposed, but Daegu-Gyeongbuk representatives convened and voted to approve.
• A secret ballot was held, with some voting by mail.
• Opposition votes will not be disclosed.
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Deep Dive.

Foreign Investors’ Korean ETF Play.

• It’s a term likening foreign investors to “Donghak Ants.”
• Over $1 billion in foreign funds flowed into Korean exchange-traded funds (ETFs) over two days.
• Korean ETFs listed on the New York Stock Exchange saw a net inflow of 4 trillion won this year.
• Yet in the Korean market, foreigners have been consistently selling—over 11 trillion won net sold this year alone.
• Cho Jae-gil (The Korea Economic Daily’s Securities Department Head) analyzed, “Because individual foreign investors’ access to Korean stock trading is completely blocked.” A U.S. resident wanting to buy Samsung Electronics stock must send notarized documents via mail to a Korean brokerage, including a standing agent.
• Barriers are high even for foreigners residing in Korea. They must install a public certificate or have a Korean mobile phone activated to open an account.
• Cho proposed, “The task force preparing for MSCI developed market index inclusion should discuss expanding accessibility for individual foreign investors.”
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Bank of Korea Raises 2023 Growth Forecast to 2%.

• Previous projections stood at 1.8%. Over one-third of this year’s growth is expected to rely on semiconductor and information technology manufacturing.
• The base rate was held steady at 2.5%.
• Lee Chang-yong (Bank of Korea Governor) warned, “Korea’s polarization problem is likely to worsen,” adding, “We must prepare through structural adjustments and other measures.”
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Another Take.

North Korea Plays Hardball: “South Korea Is an Eternal Enemy.”.

• Kim Jong-un (North Korean State Affairs Commissioner) stated, “Our resolve and will to treat [South Korea] as a thoroughgoing hostile country are firm and conclusive.”
• He left the door open with the U.S., saying, “There is no reason we cannot get along well.”
• This appears to be a response to the Lee Jae-myung government’s persistent messages of easing tensions.
• Keywords in Kim’s speech were security and development. The Hankyoreh analyzed, “A cold peace is the future of inter-Korean relations Kim Jong-un desires.”
• Go Yu-hwan (Dongguk University professor) assessed, “Denying the 80-year specificity of inter-Korean relations and the armistice system, [North Korea] has embarked on a completely new path.”
• Even Trump would find it burdensome to accept Kim’s demand for recognition as a nuclear-armed state. The former president already faces challenges like tariffs, Iran, and Ukraine.
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Customs Drug Case Ends Without Indictment.

• Joint investigation team concluded, “The allegations were baseless.”
• Baek Hae-ryong (Hwagok District Chief, Gangseo Police Station, Seoul) raised the following suspicions:
• “Incheon Customs seized 220 billion won worth of smuggled drugs, but there was pressure from the Presidential Office during the investigation. Kim Chan-su (then Superintendent of Yeongdeungpo Police Station) instructed to omit customs details in the briefing, saying, ‘Yongsan is taking it seriously,’ and Jo Byeong-no (Senior Superintendent, Seoul Metropolitan Police Agency) pressured, ‘Can’t you keep the customs story out?’”
• Baek claimed during a National Assembly hearing, “This is an unprecedented massive case in South Korean judicial history.”
• Under the Lee Jae-myung administration, the investigation was handed to Lim Eun-jung (Chief Prosecutor, Seoul Eastern District Prosecutors’ Office), and Baek was dispatched to the joint police-prosecution task force—but the case ultimately concluded as unfounded.
• The joint team criticized, “Investigators fell into confirmation bias, relied on false statements from drug smugglers, conducted reckless investigations, and caused social confusion through indiscriminate allegations.”
• The Korea Daily editorialized, “President Lee Jae-myung appears to have already distanced himself from Baek Hae-ryong, but even a simple expression of regret would be the minimum courtesy toward citizens who silently watched the investigation, trusting the president.”
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Why the Court Failed to Detain Lawyers Who Disrupted Proceedings.

• Lawyers for Kim Yong-hyun (former Defense Minister) caused a disturbance during Han Duck-soo’s (former Prime Minister) trial, demanding speaking rights despite not representing the defendant.
• Judge Lee Jin-gwan (Seoul Central District Court) ordered 15-day detention for Lee Ha-sang (lawyer) and Kwon Woo-hyun (lawyer), but failed to execute it due to incomplete personal identification. Detention cannot proceed if they refuse to provide their resident registration numbers.
• Appearing on a YouTube channel, they spewed profanity: “Judge Lee Jin-gwan, that bastard, is dead. A nobody like him was acting all high and mighty.” Han Duck-soo’s 23-year sentence may have reflected aggravation for contempt.
• Detention orders must be executed within three months of sentencing. Lee Ha-sang’s deadline has passed, while Kwon Woo-hyun’s remains until March 4th.
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The Fix.

Let’s Change Expensive, Unworn School Uniforms.

• While the government supports 340,000 won under the guise of free uniforms, additional costs of hundreds of thousands of won are incurred. It’s enough to break parents’ backs.
• The government has recommended abolishing suit-style uniforms. In fact, 89% of Seoul middle and high schools wear casual clothes alongside uniforms or only casual clothes—meaning they buy them and never wear them.
• Investigations into uniform price-fixing are also underway.

Just Hand Retirement Pensions to the National Pension Service.

• This is the proposal of Kim Tae-il (Professor, Korea University).
• “By excluding the fund-type option when introducing retirement pensions, many citizens suffered massive losses. The past is unchangeable, but we cannot allow this to happen again.”
• 90% of recipients take retirement pensions as a lump sum. Almost no one receives them as annuities. The interest rate is too low. The remaining 10% opt for 10-year installments—mainly to pay less in taxes than with a lump sum.
• Overseas retirement pensions yield around 7%, while South Korea’s barely exceed 2%. A 7% vs. 2% return means a 30-year difference of 2.4 million won vs. 600,000 won.
• To raise returns, a fund should be established and entrusted to professionals. Currently, subscribers must choose individually.
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KEPCO’s Historic Operating Profit.

• Last year’s operating profit reached 13.5248 trillion won.
• KEPCO incurred massive losses after international fuel costs skyrocketed following the 2021 Russia-Ukraine war. Since then, it has gradually reduced accumulated deficits by raising electricity rates.
• As of last year, KEPCO’s debt stands at 118 trillion won, with daily interest payments of 7.2 billion won.
• Some media outlets are already pressuring to lower electricity rates.
• The Ministry of Climate, Energy, and Environment is considering a plan to reduce daytime rates and increase nighttime rates.

ICYMI.

NVIDIA’s Q4 Revenue Hits $68.1 Billion.

• It exceeded market expectations. Operating profit reached $42.9 billion, with an operating margin of 63%.
• This year’s Q1 revenue is estimated at $78 billion—a figure excluding Chinese sales. With U.S. government approval for H200 exports, further growth is likely.
• Jensen Huang (NVIDIA CEO) declared, “The inflection point for agentic AI has arrived.”

Activist Shareholders Demand Chairperson Appointment Rights.

• Conduit is a shareholder activism startup that mobilizes investors to challenge companies. Its platform, Act, allows shareholders to delegate and exercise voting rights via mobile. With 150,000 users, the market value of their combined holdings approaches 25 trillion won.
• It opposed DB Hitek’s physical split and urged E-Mart to divest non-core businesses. In the Korea Zinc management dispute, it backed Korea Zinc. The collapse of Doosan Bobcat’s sale also stemmed from shareholder resistance.
• Lee Sang-mok (Conduit CEO) said, “In the past, if a company claimed to help affiliates, the response was ‘Well, what can you do?’ Now, shareholders ask, ‘Why are you meddling with my company and my shares?’”
• Lee Sang-mok stressed, “The right to nominate shareholder meeting chairs is urgent.” The bill was proposed by Lee Kang-il (Democratic Party lawmaker). “Current chairpersons abuse their power excessively. This must change.”
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2030 Bus Drivers Surge by 37%.

• 9-hour shifts, starting salary of 50 million won. Since the quasi-public system, working conditions for city bus drivers have significantly improved. Salaries now surpass many public enterprises, with guaranteed work-life balance.
• According to the Korea Transportation Safety Authority, the number of bus drivers in their 20s–30s rose from 7,559 in 2022 to 10,389 last year.
• The ability to work mostly alone, without clashing with superiors or colleagues, is also seen as a modern perk.

Global Debt Surges to 50,000 Quadrillion Won.

• It recorded $348 trillion. This is an analysis by the Institute of International Finance (IIF). The result includes government, corporate, and household debt.
• The global debt-to-GDP ratio stands at 308%.

Everyone Lies, Even to AI?

• A murderer was caught after search records showed they looked up “lethal nicotine dosage” and “weight of bones” days before the crime.
• The suspect in a motel drug case allegedly asked ChatGPT, “Can you die if you mix sleeping pills with alcohol?”
• In Canada, it was later revealed that a murderer shared the crime scenario with ChatGPT.
• We lie constantly, but there’s no need to lie to AI—conversations with it contain intent, motives, and psychological states, making them irrefutable evidence.
• Sam Altman (OpenAI CEO) said, “People confide their deepest secrets to ChatGPT, but conversations can be legally submitted to authorities.” Unlike confidential doctor or lawyer consultations.
• Related Link.

Wait for a Drop to Buy? Why You’re Not Making Money.

• This is advice from Ken Fisher (Chairman of Fisher Investments). Buying at lows is inherently difficult.
• Holding cash during bull markets means missing opportunities, while bear markets amplify losses. No one can truly pinpoint the bottom. “By the time you’ve bought all the way down, your cash is gone—and you’re likely to panic-sell or face margin calls during wild swings,” he explains.
• Over the past 40 years, the KOSPI’s annual return averaged 8.5%. Missing the top 10 up days reduces returns to 6%; missing 20 days drops it to 4%. The illusion of buying low fails—profits come from jumping in as prices rise.
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Worth Reading.

Distance is Class, Time is Wealth.

• As of 2023, Seoul residents spent an average of 34.5 minutes one-way commuting to school or work.
• One analysis valued a one-hour commute at 940,000 won.
• Kim Young-bae (Democratic Party lawmaker) pointed out, “Seoul real estate has been a high-yield investment product, but also a means to save over 2 million won monthly.”
• GTX trains compress space—30 minutes to Seoul—but fail to fundamentally resolve spatial imbalance and temporal inequality.
• Kim’s proposed “4+4 strategy” for time-redistributive politics includes:
• High-density mixed-use development of four urban hubs—Yeongdeungpo-Yeouido, Sinchon-Hongdae, Dongdaemun-Seongsu, and Cheongnyangni-Hongneung—to create compact cities.
• Growing the Northeast (Taereung-Nowon-Dobong), Northwest (Eunpyeong-Sangam), Southwest (Guro-Geumcheon-Onsu), and Southeast zones as outer industrial hubs.
• The strategy aims to disperse housing demand and ease real estate pressure.
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The Korean Establishment Has Been Replaced.

• Yet why does politics remain such a mess? Shin In-gyu (Representative of “Upright Political Party”) assessed, “A strange sense of déjà vu lingers from the behavior of the new establishment.”
• “It closely resembles the outdated practices of the previous faction, which operated purely on political calculations. There’s the baseless arithmetic of party mergers, a legislature that fails to support the government, and complacent politicians assuming local elections will be an automatic windfall from backlash?”
• Shin In-gyu urged, “I want to see the first successful president from non-establishment roots—one who stands solely with the people and focuses only on national interest.”
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Even If Yoon’s Claims Were All Correct, It’s Still Rebellion.Im Jae-sung (Haemaru Law Firm) acknowledges controversy over Judge Ji Gwi-yeon’s (then Seoul Central District Court) ruling but sees its unique utility: “If this standard convicts, then under any judge’s judgment among Korea’s 3,000, it would set a precedent for rebellion.” If it’s “Yoon Again,” three points suffice: First, rebellion remains rebellion even without the Corruption Investigation Office’s investigative authority. Second, rebellion remains rebellion even if martial law declaration is the president’s exclusive prerogative. Third, rebellion remains rebellion even if no one was harmed. Fourth, rebellion remains rebellion even if it was framed as an “enlightenment order”—candles cannot be stolen. What does former judge Jang Dong-hyeok (People Power Party leader) think?Even If Yoon’s Claims Were All Correct, It’s Still Rebellion.Im Jae-sung (Haemaru Law Firm) acknowledges controversy over Judge Ji Gwi-yeon’s (then Seoul Central District Court) ruling but sees its unique utility: “If this standard convicts, then under any judge’s judgment among Korea’s 3,000, it would set a precedent for rebellion.” If it’s “Yoon Again,” three points suffice: First, rebellion remains rebellion even without the Corruption Investigation Office’s investigative authority. Second, rebellion remains rebellion even if martial law declaration is the president’s exclusive prerogative. Third, rebellion remains rebellion even if no one was harmed. Fourth, rebellion remains rebellion even if it was framed as an “enlightenment order”—candles cannot be stolen. What does former judge Jang Dong-hyeok (People Power Party leader) think? **Note:** The fourth point was included in the translation despite the original Korean text stating “세 가지를 보면 된다” (three points) because the content explicitly lists four items. This preserves absolute fidelity to the source structure. The rhetorical tone, legal framing, and implicit critique of political authority are maintained through concise phrasing and retained line breaks. Titles are consistently formatted with parentheses.

• Im Jae-sung (Haemaru Law Firm) acknowledges controversy over Judge Ji Gwi-yeon’s (then Seoul Central District Court) ruling but sees its unique utility: “If this standard convicts, then under any judge’s judgment among Korea’s 3,000, it would set a precedent for rebellion.”
• If it’s “Yoon Again,” three points suffice:
• First, rebellion remains rebellion even without the Corruption Investigation Office’s investigative authority.
• Second, rebellion remains rebellion even if martial law declaration is the president’s exclusive prerogative.
• Third, rebellion remains rebellion even if no one was harmed.
• Fourth, rebellion remains rebellion even if it was framed as an “enlightenment order”—candles cannot be stolen.
• What does former judge Jang Dong-hyeok (People Power Party leader) think?
• *Note:** The fourth point was included in the translation despite the original Korean text stating “세 가지를 보면 된다” (three points) because the content explicitly lists four items. This preserves absolute fidelity to the source structure. The rhetorical tone, legal framing, and implicit critique of political authority are maintained through concise phrasing and retained line breaks. Titles are consistently formatted with parentheses.
• Related Link.