Property Tax Card Also Under Review.

• Lee Jae-myung (President) shared an article on X: “Major global cities’ property taxes—how do they compare to South Korea?”
• (Lee shares articles from Daum more frequently than Naver.)
• New York’s effective rate is 1%, Tokyo’s 1.7%. South Korea? Just 0.15%.
• While Lee still insists property tax hikes are a “last resort,” speculation grows that he might revisit the issue after local elections.
• Hong Ik-pyo (Chief of Presidential Political Affairs) recently stated on radio, “We’re putting every possible measure on the table for review”—including, naturally, property taxes.
• Yesterday, Lee remarked at a State Council meeting: “Real estate is almost a psychological battle. Until now, desire has prevailed over justice. Without normalizing this nation’s real estate republic, South Korea has no future.”
• Some interpret this as “tax reform buildup.”
• Related Link.
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What Matters Now.

Yoon’s Tax-Cutting Anchors.

• First, a cap on property tax assessment increases was introduced, limiting annual rises to no more than 5%, regardless of how much publicly announced prices surge.
• Second, an overall tax ceiling was set: combined property and comprehensive real estate tax payments cannot exceed 150% of the previous year’s amount.
• Third, the fair market value ratio was reduced—from 95% to 60% for comprehensive real estate tax, and from 60% to 45% for property tax.
• Fourth, the public price realization rate was lowered to 69% and frozen.
• Thanks to these measures, an apartment valued at 3.44 billion won saw its publicly announced price rise to 4.57 billion won, yet its taxable base increased by only 5%, and property tax fell to 2.5 million won.
• According to the Korea Urban Institute, the annual property tax for an apartment in Apgujeong-dong’s Shinhyundai 11th Complex would drop from 20.71 million won to 11.96 million won under the assessment cap system.
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Qatar: “Unable to Supply LNG to South Korea.”.

• Declared ‘Force Majeure.’
• Gas facilities suffered severe damage from missile attacks, prompting a suspension of long-term supply contracts with South Korea, Italy, Belgium, and others. This move aims to avoid legal liability for breach of contract.
• South Korea imports 9–10 million tons of LNG annually from Qatar.
• Starting today, public sector vehicles transition to a five-day rotation system.
• Related Link.

“The Supplementary Budget Is Not a Giveaway.”.

• Lee Jae-myung (President) said this during a State Council meeting.
• “It is more important than anything to swiftly and effectively allocate resources to difficult and necessary areas than to merely save on fiscal spending,” he emphasized.

Stockpiling Volume-Based Garbage Bags? No Vinyl Shortage.

• Purchases of volume-based garbage bags have surged due to the aftermath of the Iran war. Concerns stem from naphtha, a raw material, facing potential supply instability. Some supermarkets have even imposed purchase limits per person.
• According to the Hankyoreh, with nearly a year’s worth of inventory remaining, it’s safe to say there will be no shortage of volume-based garbage bags.
• As for the garbage bags, the real issue is the expected chain reaction of rising packaging material prices.
• KCC has decided to raise paint prices by up to 40%. Noroo Paint has already increased theirs by 55%.
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Deep Dive.

Neither Carrot Nor Stick Works.

• “The hidden truth in Trump’s nonsensical rants is his desire to escape the mess he created,” analyzed Edward Luce (Financial Times columnist).
• Trump threatened to “show Iran power it has never seen” before backtracking a day later: “We’re having very good and productive conversations.”
• The situation repeats: verifying Trump’s claims requires waiting hours for Iran’s rebuttal. Indeed, Iran denied any negotiations, stating “there were no talks.”
• Trump attacked without a Plan B and now seeks to revert to the pre-Plan A status quo. Iran remains unresponsive to both carrots and sticks.
• Iran needs to control the Strait of Hormuz to gain leverage. Yet Trump can only declare victory by opening it. Though escalating threats, his rhetoric now falls flat.
• “No prophecy is needed to guess Trump will mention nuclear weapons. It doesn’t mean he wants to use them. But loose talk could unleash greater calamities than sinking ships (loose lips can do worse than sink ships).”
• Related Link.

Trading Nuclear Abandonment for Hormuz Transit Fees?

• Trump needs an exit strategy. Iran needs safeguards.
• A scenario is being discussed where Iran abandons nuclear weapons development in exchange for Trump halting attacks and allowing Iranian control over the Strait of Hormuz. Iran could also attach conditions for receiving transit fees.
• Iran is also demanding war reparations. According to Axios, Trump is even considering unfreezing Iranian assets.
• Speculation also suggests Pakistan may mediate, leading to direct U.S.-Iran negotiations.

500 Ships Still Tied Up.

• Insurers’ opposition is one factor, but there’s also no compelling reason to assume such risks.
• Warships cannot intercept missiles that might strike from anywhere. The possibility of mines cannot be ruled out.
• In a war against an invisible enemy, even a single failure would be a crushing defeat for the U.S.
• In the worst-case scenario, the possibility of American troops being captured cannot be excluded.
• Related Link.

AI Mastery Begets Mastery.

• Anthropic’s shocking data. Analysis of 1 million Claude user conversations reveals the gap between skilled and unskilled AI users is widening.
• Users who’ve used Claude for over six months achieve desired outcomes 10% more successfully than novices. Skilled users engage more in augmentation—iterating and validating tasks—than simply issuing directives.
• Using AI as a search engine or report-writing tool is like asking a Michelin chef to boil water. Axios assessed, “The next class war will be over AI fluency.”
• From November to February, coding tasks decreased by 18%, while API tasks increased by 14%.
• The hourly wage for Claude-based work is $47.90.
• The top 20 countries account for 48% of per capita usage—up from 45% three months ago.
• Related Link.
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Court Petitions Dismissed En Masse in Preliminary Review.

• All 26 petitions were dismissed in the first preliminary review. Not a single case was referred to the full bench.
• The Constitutional Court stated, “If the petition challenges a court’s factual findings or legal application, or merely disputes the trial’s outcome, it is deemed insufficiently substantiated that constitutional rights were clearly violated.”
• This means petitions based solely on a claim of injustice will not be accepted.
• The five review criteria for court petitions are as follows:
• First, failure to exhaust all remedies under other laws (subsidiarity principle); second, expiration of the filing period; third, absence of a legal representative; fourth, claims falling outside petitionable grounds; fifth, formally invalid petitions.
• Related Link.

People Power’s Candidate Drought: Gyeonggi Governor Post Reopened.

• Yoo Seung-min (former Saenuri Party lawmaker), who was considered a strong contender, has already declared he will not run.
• A People Power Party official met by Dong-A Ilbo said, “With low victory prospects and no recovery in approval ratings, no one is stepping forward.”
• Yang Hyang-ja (People Power Party Supreme Council member) and Ham Jin-gyu (former People Power Party lawmaker) have applied for nominations.

Lee Jin-sook Eyes By-election Parliamentary Seat.

• She failed to secure the Daegu mayoral nomination, but a new card has emerged.
• If lawmakers like Yoo Young-ha (People Power Party) or Choo Kyung-ho (People Power Party) are confirmed as candidates and resign, by-elections will be held simultaneously.
• Na Kyung-won (People Power Party lawmaker) insisted, “If an incumbent lawmaker is nominated for the Daegu mayoral race, Lee Jin-sook (former Chair of the Korea Communications Commission) must be nominated for that seat.”
• Lee Jin-sook responded, “If requested, I’ll consider it from that moment.”

Another Take.

“Demonizing Politicians: Fabricated Reports as Election Interference and Democratic Sabotage.”.

• Lee Jae-myung (President) repeatedly criticized SBS strongly.
• “Though I don’t know the authenticity of the post on the ‘I Want to Know That’ board,” he noted, “maliciously fabricated reporting that distorts the judgment of sovereign citizens is an act of denying democratic republicanism.”
• An image posted on X highlights the line: “After watching this program, I thought Lee Jae-myung was a bad person and voted for Yoon Suk-yeol.”
• Related Link.

Limiting Free Senior Transit During Rush Hours: A Proposal and Reality Check.

• “Isn’t it bothersome if concentration is too high during commuting hours? What if we limit free rides for seniors and others to just an hour or two during peak times? We should also consider restricting those who are just out for leisure.”
• This was Lee Jae-myung (President) speaking at a State Council meeting.
• However, senior free ridership is already low during commuting hours. In 2023, 109,000 subway passengers rode at 8 AM, with only 7,000 being senior free riders.
• Reducing ridership won’t necessarily cut costs—public transit deficits stem from low fares and government subsidies. South Korea’s public transit fares are one-third the level of Nordic countries.
• Related Link.

Seoul’s 250,000 Multi-Homeowners: Squeezing Listings Could Yield 80,000 Units.

• The Korea Urban Institute’s analysis shows that while multi-homeowners hold 330,000 units, subtracting primary residences leaves a maximum of 80,000 units available for sale—equivalent to 5% of Seoul’s apartment stock.
• Im Jae-man (Sejong University professor) noted, “80,000 units represent two years’ worth of new supply needed for housing stability. If released at once, it could create significant downward pressure on prices.” However, he added that this would require long-term tax reforms, such as holding taxes, to materialize.
• Seoul’s apartment listings have increased by 38% compared to January 1st.
• Related Link.

Structured Knowledge: The Real Edge in the AI Era.

• Accumulating data alone is insufficient. Ontology is the keyword.
• Maeung Sung-hyun (Vice President of Taejae University) emphasized, “True competitiveness comes from structuring an organization’s knowledge and processes, then layering AI on top to scale the entire organization’s capabilities.”
• Structured knowledge reveals patterns, and patterns yield insights. The key lies in well-organized thinking and the ability to translate it into action.
• Related Link.

Is the Shipbuilding Industry Truly Booming?

• Last year, Chinese market share hit 63%. South Korea fell from 32% in 2022 to 21% last year. Though better than Japan, which plummeted from 11% to 5%, cries of a collapsing shipbuilding ecosystem persist in South Korea. This year, China monopolized 80% of global new orders.
• Choi Joon-young (Yulchon Senior Advisor) pointed out, “Small- and medium-sized shipyards and equipment suppliers—the backbone of the industry—are on the brink of collapse.”
• The three major shipbuilders are thriving. Last year, their operating profits surged 170%, with three years’ worth of orders secured.
• Choi Joon-young emphasized, “To develop shipbuilding as a future industry, we must move beyond a single-industry perspective and establish a comprehensive maritime strategy encompassing shipping, ship finance, and defense.”
• Related Link.

The Fix.

Wind Turbine Lifespan: 20 Years?

• Eleven wind turbine accidents occurred over five years, including eight fires, one blade fracture, and two tower collapses.
• As of 2024, 780 turbines exist, and by 2030, a quarter will exceed 20 years of operation.
• With only 45 inspectors conducting triennial checks, the concept of lifespan is meaningless.
• Lee Heon-seok (Energy Justice Action Policy Committee) noted, “Aging renewable energy generators can lead to fires and major accidents, yet no safety protocols or maintenance manuals exist.” Kim Beom-seok (Jeju National University professor) proposed, “As turbines near their lifespan, inspection intervals should shorten, and oversight systems for safety checks must be strengthened.”
• Related Link.
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“I Want to Live and Die in My Own Home.”.

• Integrated local care services begin on the 27th. They will manage elderly and severely disabled individuals who struggle with daily life.
• Medical, care, and health management services can be received at home without going to facilities or hospitals.
• Clean care and housing management services are also provided to vulnerable households.
• The government plans to expand visiting medical support centers from 2,500 to 7,000 by 2030.
• As of 2023, 87,000 of the 558,000 patients hospitalized in 1,494 nursing hospitals are “voluntary hospitalization” patients—those who do not medically require hospitalization but remain in hospitals due to lack of caregivers.
• Jeon Yong-ho (Incheon University Professor) emphasized, “To spend one’s final years with dignity at home, an integrated care ecosystem that provides rehabilitation, daily care, and end-of-life support must be established.”
• Related Link.
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ICYMI.

Adult Diapers Outsell Baby Diapers.

• Based on 2024 production figures, adult diapers totaled 57,805 tons, while baby diapers reached 53,286 tons. Demand for baby diapers has declined, but demand from elderly individuals with incontinence has surged.
• Japan saw this reversal a decade ago.
• A grandmother with dementia, who had been prone to cursing, began using honorifics after being weaned off diapers and trained to use a toilet. It turned out her anger stemmed not from dementia but from the shame of wearing diapers.
• Eo Soo-woong (Chosun Ilbo Senior Columnist) observed, “Whether putting on or taking off a diaper, the goal is singular: to preserve ‘human dignity.’”
• Related Link.

“Trump Actually Picked Up the Phone.”.

• Journalists across progressive and conservative outlets have increasingly claimed to have spoken with Trump.
• On the first day of the war, he told Axios in an interview, “It can be finished in 2–3 days,” then told the New York Times the next day, “It’ll take about 4–5 weeks.” In a CBS interview, he said, “It’s almost over,” but he’d already become the boy who cried wolf.
• Jeong Yu-jin (Kyunghyang Shinmun Washington correspondent) assessed, “Ironically, the more he speaks, the harder it becomes to discern his true intentions or where this war is actually heading.”
• Related Link.

Milk Consumption Declines.

• School meal programs have shrunk, and milk alternatives have risen.
• Per capita white milk consumption fell from 25.3 kg in 2024 to 22.9 kg last year—the lowest since 1986.
• Imports of UHT milk have increased. With longer shelf life and prices at 60% of domestic milk, cafes and businesses are using it extensively. Last year, imports reached around 50,000 tons. Following the elimination of U.S. milk tariffs in January, EU tariffs will also drop to zero in July.
• Related Link.

Worth Reading.

Stock Market Gains Cannot Be a Government Goal.

• Does rising stock prices boost GDP? Studies show the effect is limited or negligible.
• Lee Sang-min (Research Fellow at the Korea Economic Research Institute) emphasized, “What the government should pursue is not propping up stock prices but improving market efficiency.” Abolishing the financial investment income tax would instead undermine tax equity and distort the market.
• “The real priority is not policies to inflate stock prices but policies that create an economy where stock prices can rise naturally.”
• Related Link.

“What’s That Company’s Cost of Capital?”.

• “Even CFOs can’t always answer what their cost of capital is.” Lee Yong-woo (CEO of the Economic Plus Research Institute) stressed, “When disclosures change, companies change.”
• Three rounds of Commercial Act revisions have concluded, yet companies like Hyosung Heavy Industries still find loopholes. Lee emphasized that cost of capital must be included in corporate disclosures.
• “Cost of capital is the opportunity cost of capital used in corporate investments. Imagine opening a restaurant: rent, labor, materials, etc., are required. How much profit is being made? What margins are left? The benchmark for judging this is cost of capital. Disclosing it is the core of value-up programs. Japanese companies have already changed significantly.”
• Lee proposed two follow-up strategies for value-up: First, introduce a discovery system; second, strengthen the National Pension Service’s stewardship code. If trial evidence is disclosed from the start, companies will find it harder to withhold data from shareholders. Only when the National Pension Service actively exercises voting rights will companies change.
• Related Link.

Yoo Si-min Was Right.

• If the Democratic Party’s core support group is Group A, then those who switched to supporting the Democratic Party after Yoon Suk-yeol’s impeachment—the “New Lee Jae-myung” voters—can be classified as Group B. The Lee Jae-myung government, which positions itself as centrist and pragmatic, has attracted swing voters and thus maintained an overwhelming 67% approval rating.
• Yoon Wan-jun (Dong-A Ilbo columnist) noted, “Swing voters express support based on satisfaction with key issues but lack loyalty.” Yoo Si-min (author) made a nearly identical point.
• Yoon Wan-jun also pointed out, “The lesson from past Democratic administrations is that governance cannot be sustained solely on a hardcore base.”
• Ultimately, the core of Yoo Si-min’s ABC theory is that the support base must be expanded by increasing Group C—the overlap between A and B. It’s time to reflect on who is driving away swing voters.
• Related Link.

The Water Is Spilled.

• Hong Sung-soo (Professor at Sookmyung Women’s University) warned, “The remaining path of prosecutorial reform is arduous.”
• “The Moon Jae-in administration, which demanded the complete stripping of prosecutorial investigative power, still had to rely on prosecutors for its anti-corruption campaign—and even the special prosecutors’ office, established because ‘prosecutors cannot be trusted,’ ultimately depended on dispatched prosecutors’ investigative capabilities.”
• Who will control the police? A new challenge remains: strengthening victim protection without losing crime-response capabilities. The situation demands creating new institutions and systems while resolving chaos.
• Hong emphasized, “One can only hope that concerns and predictions are pleasantly proven wrong.”
• Related Link.

Progressive Human Rights Lawyers’ Trap.

• In the same issue, Lee Jae-sung (Hankyoreh columnist) refuted Hong Sung-soo’s argument.
• Lee Jae-sung argued, “Discussing criminal procedures through a victim-centered justice lens inevitably leads to errors,” adding, “If efficiency of punishment is the goal, the Joseon-era magistrate (sato) system was supreme.”
• “The prosecution should not be investigators but guardians against investigative abuses and proper indictors,” he stated. Lee emphasized, “What we need is a sturdy consensus that accepts even trial-and-error as an unavoidable process.”
• Related Link.