Oil Prices Rise by 210 Won.

• Fuel taxes will be reduced by 65 won for gasoline and 87 won for diesel.
• The maximum prices are 1,934 won and 1,923 won—210 won higher than the first maximum price. Since this is based on supply prices to gas stations, actual retail prices are likely to exceed 2,000 won.
• Overnight tolls for freight vehicles will be waived for one month.
• Electricity rates will remain unchanged for now. President Lee Jae-myung (President) said yesterday, “We aim to maintain electricity rates if possible,” while warning, “The Korea Electric Power Corporation’s deficit has grown enormously and could become a problem.”

Can 210 Won Close the Gap?

• Compared to the last week of February, gasoline and diesel prices have surged 89% and 151%, respectively, based on Singapore exchange rates.
• A refining industry insider interviewed by Chosun Ilbo warned, “If loss compensation remains uncertain and volatility rates are not properly reflected, losses will inevitably widen.”
• The Hankook Ilbo pointed out, “Critics argue this may encourage demand at a time when energy conservation is needed.”
• There is talk that today’s prices are the cheapest for now. If the Middle East situation shows no progress, prices could rise in steps every two weeks.
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What Matters Now.

Trump’s China Visit Set for May 14.

• Originally scheduled for March 31, it was first postponed and then rescheduled.
• Caroline Leavitt (White House spokesperson) responded to the question, “Do you think the war will end by then?” with, “We’ve always projected around 4–6 weeks.”
• While stating, “Negotiations are ongoing,” the remark, “Trump is prepared to bring hell,” carries significant implications. The bottom line remains: nothing is certain.
• Donald Trump (U.S. President) expressed strong dissatisfaction: “They beg us to reach an agreement while claiming to review our proposals. This is wrong.” He added, “It would be better for them to get serious before it’s too late. Because once things happen, there’s no turning back.”
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Google’s TurboQuant Shakes Semiconductor Stocks.

• Google’s TurboQuant reduces memory usage by one-sixth. It claims to resolve bottlenecks by compressing data with vector quantization technology.
• If Google’s claim of being up to 8x faster than NVIDIA’s H100 holds, this could be Google’s “DeepMind moment.”
• Reduced memory usage? Samsung Electronics and SK Hynix’s sales might shrink. Their stock prices plummeted 4.7% and 6.2%, respectively. CPU makers like Intel and AMD saw their stocks rise.
• Some predict it could instead increase memory demand. Improved memory efficiency might lead to more data processing.
• This phenomenon, where higher resource efficiency boosts demand, is called the Jevons paradox. Skepticism and rebound theories clash. What about today’s stock prices?
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Deep Dive.

Predicting the ‘Taco’ Timing.

• Trump’s every word sends global financial markets into turmoil. The pattern repeats: when oil prices rise, he talks peace; when they fall, he vents anger. The irony is that his unpredictability is somehow preventing full-scale panic.
• A hedge fund CIO interviewed by the Financial Times said, “We’re all doing the same thing: nothing. Oil could spike to $150, or the war could end in five minutes—so we can’t short.”
• Speculation of a sudden ceasefire is emerging. Iran is preparing for ground combat. Tomorrow (28th) is a critical juncture.
• On the 26th, U.S. stock markets all fell. The S&P 500, Dow, and Nasdaq dropped -1.7%, -1.0%, and -2.4%, respectively.
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U.S. Inflation Could Rise to 4.2%.

• This is a test of the global economy’s recovery resilience.
• The OECD forecasts U.S. GDP growth to slow from 2.1% last year to 2.0% this year and 1.7% next year.
• South Korea? Growth projections were cut from 2.1% to 1.7% for this year. From 0.9% last year, it’s 1.7% this year and 2.1% next. Inflation is expected to hit 2.1% last year and 2.7% this year.
• According to the Wall Street Journal, global public debt has reached $100 trillion. The implication: governments are less able to unleash spending as they did during the 2020 pandemic or the 2022 Russia-Ukraine war.
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Russia’s Drones, Iran’s Support?

• The war grows more complex. When Russia attacked Ukraine, Iran supplied drones. Now that Iran is running low on ammunition from fighting the U.S., Russia is returning the favor.
• The Shahed drones Russia uses are upgraded versions of Iranian designs.
• The conflict could drag on indefinitely.

Jang Dong-hyeok’s Full-Speed-Ahead Approach.

• Public approval ratings? Not a concern. There are rumors that he vented frustration over the fact that support didn’t rebound after passing a motion to expel a colleague at lawmakers’ request.
• He reappointed Park Min-young (People Power Party Media Spokesperson), who had been widely criticized as needing reform, and invited Lee Hyuk-jae (comedian), who claimed Yoon’s innocence, to serve as a youth audition judge. Park’s controversial remarks—such as “assigning too many roles to disabled people is problematic”—have sparked endless backlash.
• Jang Ye-chan (Deputy Director of Yeouido Research Institute), another reform target alongside Park, resigned after a final conviction under the Public Official Election Act.
• As one People Power Party official told Kyunghyang Shinmun, “People are even saying it’d be better to lose properly in this election and start fresh.”
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Another Take.

Oil at 1,934 Won Bought, Sold at 1,934 Won?

• There was a reason the government never implemented the system to compensate companies for losses under the oil price cap.
• First, the structure of government compensation means companies never lose money,
• second, subsidizing consumption during a period when it should be reduced is problematic. Support isn’t targeted at vulnerable groups, diluting policy effectiveness.
• Third, dealers claim the more they sell, the more they lose. Park Hyun-dong (Vice Chairman of the Petroleum Distribution Association) pointed out, “If logistics paralysis occurs and market confusion ensues, the inconvenience will fall entirely on the public.”
• Ricardo Reis (London School of Economics professor), interviewed by the Wall Street Journal, warned, “Historical experience shows price caps create ever-larger holes in government budgets.”
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460,000 Households Spending Half Their Income on Debt Repayment.

• High-risk households increased by 19%. Even selling homes and assets wouldn’t cover their debts.
• The total financial debt of high-risk households amounts to 96 trillion won, accounting for 6% of all financial debt.
• Young people in their 20s–30s make up 35% of these households.
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26 South Korean Ships Stuck in the Strait of Hormuz.

• There are 141 crew members onboard.
• Iran views South Korea as a non-hostile state but insists it cannot allow passage of South Korean-flagged oil tankers. Said Saeed Kozechi (Iranian Ambassador to South Korea) at a press conference: “Companies dealing with the U.S. are subject to sanctions,” adding that Iran cannot guarantee the safety of South Korean vessels.

Investing as Routine Deepens Asset Gaps.

• Stock investors grew from 6.12 million in 2019 to 14.42 million in 2025.
• According to the Household Finance and Welfare Survey, the top 20% and bottom 20% households hold assets of 66.15 million won and 2.98 million won, a 22-fold gap.
• Woo Suk-jin (Professor at Myongji University) noted, “Financial gains, being tax-free, do nothing to narrow inequality.”

The Fix.

Generic Drug Prices Slash by 16%.

• Criticism abounded over prices double the OECD average.
• New drugs covered by health insurance are priced at 90–100% of major countries’ averages, yet generics off-patent cost 2.2 times as much.
• The cholesterol medication Lipitor, priced at 663 won per pill, will drop to 574 won—a long-overdue reduction. Over 128 generic versions of Lipitor have flooded the market since its patent expired.
• The tiered price reduction system, previously applied from the 20th generic, will now apply from the 13th. Projections suggest this could cut health insurance spending by over 10 trillion won by 2037.

Now a Little, Later a Lot? Why the Convex Pathway Faces Opposition.

• Eight of 31 deliberation panel members resigned from the Climate Crisis Special Committee’s public deliberation committee. Backlash erupted after the committee unilaterally added the convex pathway.
• The premise is achieving carbon neutrality by 2050. The government proposed reducing emissions by 53–61% compared to 2018 levels by 2035, but now added the convex pathway alongside linear and concave pathways.
• The convex pathway is a loophole: reduce less now and more later. Climate Crisis Emergency Action criticized it as “regressing from South Korea’s internationally submitted reduction targets, directly violating the Paris Agreement’s ‘progression principle.’”
• In an editorial, Kyunghyang Shinmun warned, “If we cannot be Minerva’s owl delivering wisdom for the future, we must not become frogs in a kettle oblivious to boiling water.” They argue, “The convex pathway must be excluded immediately.”
• Cho Chun-ho (climatologist) noted, “While we cannot pinpoint exactly how many cigarettes cause cancer, increased smoking raises cancer risk.”
• “Knowing the exact day and hour of a tipping point means we’ve already fallen into it. (Omitted) Uncertainty is not a reason to delay action—instead, the possibility of catastrophe demands earlier action.”
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We Know Nothing About Villas.

• Everyone says they want an apartment. The perception that villas have no investment value is widespread. Is that really true? Park In-seok (Professor at Myongji University) calls it a prejudice.
• South Korea’s apartment residence rate is 66.2%.
• When looking at owner-occupancy rates, apartments stand at 66%, while non-apartments reach 74%.
• The number of apartments is higher, but the number of households residing in them is similar. This is because 1.0 household lives in an apartment, while 1.5 households live in non-apartments.
• Park In-seok emphasized, “To transform a polarized housing market—where choices are limited to apartment complexes and villas—into one with more options, and to build a pluralistic society, we must start by properly examining the non-apartment market.”
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ICYMI.

Hanwha Solutions’ 2.4 Trillion Won Rights Issue Triggers 18% Stock Plunge.

• Concerns over shareholder value dilution. Of the 2.4 trillion won, 1.5 trillion will repay debt, with the remainder funding solar facility investments.
• The capital increase may have been necessary, but criticism abounds over its abruptness and the high issue price.
• New shares will be allocated at 0.34 per existing share. To maintain ownership stakes, shareholders holding 1 million won worth must inject an additional 340,000 won.
• Critics accuse the company of failing its shareholder loyalty obligations.
• Lee Chang-min (Professor at Hanyang University) noted, “Rights issues during rising stock prices should fund equipment or future investments—a virtuous cycle. Repaying debt at a good time eliminates capital market stimulation.”
• Hanwha Co. (36% stakeholder in Hanwha Solutions) also saw its stock fall 4.8%. Maintaining its stake requires injecting nearly 700 billion won.
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Lee Geun-an, Torture Technician, Dies Without Apology or Remorse.

• As a public security bureau counterintelligence investigator, he extracted false confessions through waterboarding and electric torture.
• His crimes were exposed by a 1988 Hankyoreh report. He evaded capture for 11 years before surrendering in 1999 and receiving a seven-year prison sentence. Released in 2006, he was ordained as a pastor two years later.
• The Democracy Movement Memorial Association issued a statement: “Death cannot erase the atrocities.”
• “On the occasion of Lee Geun-an’s death, we earnestly hope society will more firmly uphold the values of human rights and democracy, reflect on past wrongs, and move toward a just future,” it added.
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Drug King Park Wang-yeol, 236 Confirmed Accomplices.

• Drugs smuggled from the Philippines to South Korea include 4.9kg of methamphetamine and 2kg of ketamine, valued at 3 billion won.
• He was extradited to South Korea and investigated by police.
• In a 2023 interview with a broadcaster from a Philippine prison, he said, “Open your mouth and everything flips. Many will strip during investigations.”
• A public disclosure committee will decide today whether to release his face, but many media outlets have already published unblurred photos.

Worth Reading.

War, to Me.

• Kim Jong-dae (former Justice Party lawmaker) sees the game at play.
• To Trump, war is a narcissistic device to satisfy the ego of “only I can do this” and rally his base.
• To Netanyahu, war is a survival tactic to evade political crisis.
• To Putin, war is a charade to mask systemic collapse.
• In Kim’s view, all three are deluded by the illusion that “I control the war.”
• In the AI era, where war resembles a strategy simulation game, it creates the illusion of ending in 15 minutes.
• Kim Jong-dae emphasized, “A true leader is one who understands complexity when the fog of war is thickest and drafts the blueprint for peace.”
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The Antithesis of Sedition Is Restoring Normal Democracy.

• Lee Jun-hee (The Korea Times senior advisor) views the three judicial reform bills as retaliatory legislation.
• Isn’t the core of prosecutorial reform to block political interference? Yet now, with the prosecution’s power diminished, the likelihood of political meddling in investigations has only increased. Was this the best approach?
• Lee emphasized, “Overwhelming legislative power should be used to aid efficient governance, suppress unnecessary political strife, and create a stable daily life for citizens.”
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Kim Eo-jun and Yoo Si-min Have Subdued the ‘New Lee Jae-myung’.

• Yoon Tae-gon (The More Analytics Director) analyzes: The conflict over judicial reform seemed like a good cop-bad cop scenario, but it might have been a staged fight.
• Why is Lee Jae-myung (President), who showed no mercy in power struggles, lenient toward Kim Eo-jun and Yoo Si-min? Is it because he believes these two will protect him until the end?
• Yoon Tae-gon pointed out, “Looking at past administrations, those who claimed, ‘We will defend the president at all costs’ were the source of crises.” “When a crisis hits, it’s not the ‘New Lee Jae-myung’ who leaves—it’s the ‘New Lee Jae-myung’ leaving that *is* the crisis.”
• Related Link.

What Has the Police Done?

• Han In-seop (Seoul National University professor) asks:
• Was the transfer of investigative authority from prosecutors to police because we trusted the police? No.
• If they gained collateral benefits from prosecutorial reform, they must present a responsible reform plan.
• Han In-seop emphasized, “The police should establish measures to exercise the investigative authority granted by the public according to their will, and apply actionable steps to the field immediately,” adding, “A dedicated police reform body must be launched without delay.”
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