Lee Jae-myung’s X Post Sparks Israel Backlash.

• Lee Jae-myung (President) ignited a heated debate on X.
• On the morning of the 10th, he shared a video allegedly showing Israeli Defense Forces torturing a Palestinian child before dropping him from a rooftop, writing, “We need to verify if this is true, and if so, what measures have been taken.”
• It turned out to be a 2-year-old video, and the body was not a child but an adult. As the controversy spread, Lee reiterated, “International humanitarian law must be upheld in all circumstances.”
• Israel bristled at the comparison: “Forced comfort women, Jewish Holocausts, and wartime killings are no different.” The Israeli Foreign Ministry issued a protest statement, calling it “unacceptable and deserving of strong condemnation.”
• Lee countered, “It’s disappointing that those causing suffering through relentless inhumane and unlawful actions refuse to reflect on global criticism.”
• The People Power Party criticized it as “irresponsible social media politics.”
• Park Won-gon (Ewha Womans University professor) warned, “Pro-Israel forces within the U.S. MAGA faction could exploit this domestically.”
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“Acts of Treason Flourish in Politics and Media.”.

• “Those who harm national interests for personal gain are called traitors.”
• As criticism of Israel escalated into a debate over national interest, Lee Jae-myung (President) wrote this in rebuttal.
• Chosun Ilbo and others framed it as a diplomatic conflict.
• Lee sharply criticized, “Many who commit treasonous acts seem unaware that harming national interests for personal gain is wrong—or perhaps they know and do it anyway.”
• In an editorial, Kyunghyang Shinmun noted, “Opinions may differ on whether a president should post personal views on socially sensitive topics like foreign policy on social media,” but added, “The president’s writing aligns with the average Korean’s common sense and the international community’s universal human rights values.”
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“The President’s Social Media, At Least a Review Is Needed.”.

• A Cheong Wa Dae official met by Kyunghyang Shinmun said, “It reflects the president’s usual concern for human rights,” but added, “There is great worry about the escalating fallout in a wartime context.”
• A ruling party official met by Chosun Ilbo stated, “This incident should serve as a lesson to ensure at least minimal review before issuing refined messages.”
• Some interpret it as “a calculated strategy to open channels in negotiations with the Iranian government.”
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What Matters Now.

“No Agreement Reached.”.

• JD Vance (U.S. Vice President) spent 21 hours in negotiations with Iranian representatives in Pakistan.
• “The U.S. redline is receiving a firm commitment from Iran to halt nuclear weapons development, but Iran has not accepted this condition,” a source said.
• Esmail Baghaei (Iranian Foreign Ministry Spokesperson) posted on X, “The success or failure of negotiations depends on the sincerity and goodwill of the other side, and refraining from excessive and illegal demands.”
• The U.S. and Iran each dispatched 300 and 71 negotiators, respectively.
• Based on the discussions so far, the key issues are the opening of the Strait of Hormuz and the removal of nuclear material.

Trump’s Counterpunch? “U.S. to Block Strait of Hormuz.”.

• When Iran demanded transit fees for passage through the Strait of Hormuz, Donald Trump (U.S. President) blocked it, saying, “Even if fees are paid, no passage will be allowed.”
• He posted on Truth Social, “I’ve ordered the Navy to search and intercept all vessels.”
• All maritime traffic entering or exiting Iranian ports will be blocked starting at 10:00 AM Eastern Time (11:00 PM KST) on the 13th.
• The Islamic Revolutionary Guard Corps (IRGC) warned of “strong military retaliation.”

U.S. Warship Passes Through Strait of Hormuz.

• Despite Iranian threats of attack, a U.S. warship successfully transited the strait in both directions.
• Trump claimed, “The only threat is that they might hit a mine,” implying Iran would not attack with missiles or other means.
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No Change Since Late February.

• The U.S. position is worse than before the war began. Both the U.S. and Iran claim victory in the first round.
• The New York Times noted, “While Iran can threaten to restart war, it knows it’s not a realistic option,” adding, “There is no sign of willingness to compromise.”
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“DPK Sweeps All but Gyeongbuk.”.

• Such predictions are also circulating within the People Power Party.
• With the election coming just one year into the administration and the president’s approval rating nearing 70%, the ruling party’s premium is overwhelming.
• Park Dong-won (Polycom CEO) said, “If the election were held tomorrow, the People Power Party would win only in Gyeongbuk, and even Daegu would be a close race.”

Democratic Party to Nominate Candidates in All By-Election Districts.

• The party will not ally with the Cho Kuk Innovation Party.
• Jeong Cheong-rae (Democratic Party Leader) said, “Time is short and various circumstances make primaries difficult,” adding, “We will proceed with strategic nominations as a principle.”
• Cho Kuk (Cho Kuk Innovation Party Leader) stated, “We will go our own way.”
• Cho is also expected to announce his candidacy soon.

CEO Living Rent-Free in Company-Owned Apartment.

• There are 2,630 properties exceeding 85㎡ in exclusive area and 900 million KRW in publicly announced value.
• The total publicly announced value amounts to 5.4 trillion KRW.
• If owners and their families live in corporate-owned housing without paying taxes, it constitutes tax evasion.
• Lim Kwang-hyun (National Tax Service Commissioner) posted on Facebook, “Corporations holding non-business real estate suspected of tax evasion will be subject to tax audits, and relevant taxes will be collected.”
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Deep Dive.

Did China Supply Missiles to Iran?

• The New York Times reported that there is a possibility that China supplied surface-to-air missiles to Iran.
• China denied the claim as untrue.
• Trump warned, “If China sends weapons to Iran, they will face major problems.”

Can Restaurant Owners Bargain Collectively with Baemin?

• Lee Jae-myung (President) continues to push labor issues.
• In a meeting with the Korean Confederation of Trade Unions leadership, he said, “Collective bargaining should be allowed for small business owners, and at minimum, the right to organize must be permitted.”
• “Depending on the case, suppliers, franchisees, or branches should be given opportunities to negotiate collectively,” he added.
• Under the revised Franchise Business Act, franchisees will be able to negotiate collectively with headquarters starting next year. If the scope expands, delivery app vendors might also gain the right to collective bargaining with platform operators.
• Park Ji-sun (Korea University Professor) pointed out, “Mismatches may arise as business negotiations are incorporated into labor law frameworks, and there is significant potential for illegal market price manipulation.”
• No Min-seon (Researcher at the Korea Institute for SMEs) noted, “It has meaning in balancing bargaining power between franchisors and franchisees,” but added, “Expanding to collective action rights could cause market disruption.”
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Jeon Jae-soo Cleared of Charges.

• Jeon Jae-soo (former Minister of Oceans and Fisheries) faced investigation after stepping down, following allegations that he received a watch and cash from a Unification Church affiliate.
• The Joint Investigation Headquarters dropped the case, citing a 7-year statute of limitations and insufficient evidence to specify the amount.
• Four aides in Jeon’s office were indicted without detention for evidence tampering, having reset office PCs and damaged hard drives ahead of a search and seizure.
• Jeon Jae-soo (former Minister of Oceans and Fisheries) will run as the Democratic Party’s Busan mayoral candidate in the June local elections. A Gallup Korea poll shows Jeon at 51% and Park Hyung-jun (Busan Mayor) at 40%.
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Orbán’s Hungary Loses Its Grip.

• Viktor Orbán (Hungarian Prime Minister), who held power for 16 years, failed to secure a parliamentary majority in the general election. Despite support from JD Vance (U.S. Vice President), who campaigned on his behalf, it proved insufficient.
• Orbán maintained close ties with Trump and a friendly relationship with Russia.
• His defeat could shift the dynamics of the Ukraine war. The EU’s €9 billion aid package for Ukraine, blocked by Hungary, is now likely to proceed.
• Some analysts view this as the first setback for Europe’s far-right, which surged after Trump’s rise to power.
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Another Take.

Back to Square One on the Financial Investment Income Tax.

• Financial investment income tax has resurfaced as a contentious issue.
• Lee Jae-myung (President) pointed out, “Stock transfer income tax is nearly zero, leaving no leverage, while transaction taxes are problematic because they must be paid regardless of profit or loss.”
• The Hankyoreh analyzed, “This leaves open the possibility of reintroducing the financial investment tax.” The tax was originally scheduled to take effect in 2023 under the Moon Jae-in administration but was postponed for two years under the Yoon Suk-yeol government and later abolished in 2024 through a bipartisan agreement.
• Jeong Se-eun (Chungnam National University professor) argued, “As the stock market slump has normalized, the principle of taxing where there is income should be implemented.”

Jang Dong-hyeok Heads to the U.S.

• With less than two months until the election, many criticize the timing as abrupt.
• Bae Hyun-jin (People Power Party lawmaker) said, “The nomination clock has stopped for a week due to the party leader’s unexplained trip to the U.S.”
• Han Dong-hoon (former People Power Party leader) remarked, “A leader shouldn’t give the impression that ‘they’ve given up on the election.’”
• As controversy grew, Jang Dong-hyeok (People Power Party leader) posted on Facebook, “The June 3 local elections will be a monumental front for defending freedom and democracy,” but the comment too felt out of place.
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A Month of Petitions, Zero Full-Bench Reviews.

• Preliminary screening reviewed 194 cases, all dismissed—most failed formal requirements.
• 66% lacked substantiated grounds for appeal. Mere dissatisfaction with a ruling does not qualify.
• According to Kyunghyang Shinmun, speculation arises that a free speech-related case could be selected as the inaugural case.

Credit Card Sign-Ups Stall, Cancellations Surge.

• New members at eight card companies grew only 3% from 10.06 million in 2023 to 10.34 million last year. Cancellations rose 14% from 6.9 million to 7.9 million.
• Maeil Business News analyzed, “As platform-based payments like Naver Pay, Kakao Pay, and Samsung Pay become routine, consumers’ payment methods are diversifying beyond ‘cards’ to ‘apps.’”
• Dormant cards account for 15% of all credit cards. The average utilization rate of personal credit cards was 85.5%.
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The Fix.

Is a 70-Year-Old Blood Donation Cutoff Age Appropriate?

• As the proportion of elderly population grows, blood donations have sharply declined.
• The age limit for blood donation was raised from 65 to 69. At 70, one can no longer donate.
• South Korea requires about 5,000 blood packs daily, with current reserves at around 17,000 packs.
• Last year, 2.84 million people donated blood—5.6% of the total population.
• Lee Ji-hyun (Korea Economic Daily deputy editor) noted, “The 69-year age cap has no scientific basis,” adding, “It would be better to let doctors assess individual eligibility if needed.”
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Two-Year Fixed-Term Contracts Reduced Permanent Hiring.

• Permanent conversion rates after two years fell from 28% in 2009 to 19% in 2020. President Lee Jae-myung’s remark that “the Fixed-Term Workers Act became a law prohibiting employment beyond two years” proved accurate.
• The proportion of fixed-term workers rose from 10% in 2010 to 12% in 2024.
• Lee Joon-hee (Kwangwoon University professor) emphasized, “Fairness must be enhanced by extending contract periods while strengthening prohibitions against discrimination and remedies for fixed-term workers.”
• Jeong Heung-jun (Seoultech professor) noted, “Clarifying renewal expectations and mitigating side effects would help labor and management reach consensus.”
• Kwon Hyuk (Korea University professor) suggested, “Restricting reasons for fixed-term contracts may be more rational than duration limits,” adding, “Consider abolishing duration restrictions, allowing fixed-term contracts only for reasonable causes, and providing employment instability allowances for fixed-term workers.”
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Solutions Abound, Including Bans on Fragmented Contracts.

• According to The Hankyoreh, the government is considering the following solutions:
• Limiting the number of contract renewals or imposing a cooling-off period during which temporary workers cannot be rehired for the same position after a contract ends.
• The current exception allowing 55+ workers to be employed for up to two years is under review for raising the age threshold to 60+.
• Introducing additional non-regular worker allowances is also necessary. Discussions include fair compensation for contracts under one year or severance allowances for job changes.
• Kim Yu-seon (Korea Labor and Society Institute chairman) warned, “Penalizing repeated temporary hiring should be considered—relaxing duration limits could exacerbate side effects.”

Price Surge Curbing Led to Increased Consumption.

• Gasoline sales were 350,000 tons in the second week of March, rising to 410,000 tons by the fourth week.
• Kyunghyang Shinmun analyzed, “This reflects a psychological effect where securing supply becomes a priority when the government controls prices.”
• One comment quipped, “It’s an absurd situation—urging fuel conservation while selling more gasoline.”

No Principle in the Oil Price Cap System.

• For gasoline, the first cap was 1,724 won on March 13, the second 1,934 won on March 27, and the third 1,934 won on April 10 (frozen).
• The problems are: first, the principle of linking to international oil prices was not followed; second, artificially suppressing prices failed to reduce oil consumption.
• JoongAng Ilbo opined in an editorial, “To ease the burden on low-income, livelihood-dependent consumers, it is more appropriate to target support rather than directly manipulate prices.”
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Vapor Explosion, a Tragedy for Firefighters.

• While removing epoxy paint at a Wando seafood cold storage facility, a fire broke out. After firefighters completed initial suppression, smoke resurfaced and vapor exploded.
• Park Seung-won (Fire Sergeant) and No Tae-young (Firefighter) never emerged.
• Kong Ha-sung (Woosuk University professor) noted, “Firefighting gear withstands up to 500°C, but flashovers generate heat surges exceeding 1,000°C.”
• Calls emerge to adopt a Rapid Intervention Team (RIT) system, as seen in the U.S., for swift colleague rescue.
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ICYMI.

Car-Collateralized Loans Reach 2.8074 Trillion Won.

• This marks a 46% increase compared to 2024. Including savings banks, car-collateralized loans exceed 5 trillion won.
• Car-collateralized loans are seen as a last resort—when even home collateral fails, people pawn their cars to borrow money.
• Those without even that option turn to private lenders. In the fourth quarter of last year, new loans from the top 30 private lenders reached 795.5 billion won, the highest in three years.
• Kim Soo-hyun (The Korean Economic Daily reporter) noted, “It’s time for meticulous policy design to prevent harm to struggling citizens who might otherwise fall into ruin without access to loans.”
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12,791 Minors with Incarcerated Parents.

• There are children earning money through part-time jobs to pay their parents’ detention fees.
• JoongAng Ilbo pointed out, “The reality is that social protection is lacking due to the stigma of being a criminal’s child.”

Where Is Wolgwi?

• Search efforts continue for the zoo-escaping wolf, presumed to be lingering near the zoo due to its strong homing instinct.
• Wolgwi was born in 2024. It can survive over ten days with water alone, but further delays risk its safety.
• The fire department’s released photo was an AI-generated fake.

“We Are All the Same Crew.”.

• Artemis II has returned. Christina Koch (Artemis II crew member) said, “Earth looked like a lifeboat floating in space.”
• The Orion capsule entered the atmosphere at 39,693 km/h—33 times the speed of sound. It entered the atmosphere at 7:53 PM, deployed parachutes at 8:04 PM to decelerate to 219 km/h, and splashed down at 8:07 PM.
• Orion measures 5 meters in diameter and 3.4 meters in height.

Minab 168.

• The name of the Iranian government jet carrying the negotiation team.
• It honors the 168 Minab elementary school students killed in a U.S. airstrike.
• Munir Ahmed (Pakistan Army Chief of Staff), mediating, wore combat fatigues to greet the Iranian delegation and a suit for the U.S. delegation.

Too Smart Claude Mythos.

• It’s being called a “monster AI.” Though still in preview, concerns are already emerging that it could upend cybersecurity.
• If Mythos is released, the story goes, cyberattacks will surge. The White House has convened emergency strategy meetings.
• It’s praised for its exceptional ability to identify flaws in operating systems and software—and create exploits (vulnerability attack tools).

Jamsil Olympic Family Town to Rebuild as 6,787-Household Complex.

• It is a 4,494-household complex built in 1988.
• The redevelopment will allow up to 26 floors with a floor-area ratio below 300%.
• 796 households will be supplied as public housing.

Chipflation: Today’s the Cheapest Day for Laptops and Phones.

• Prices of electronics with memory components have risen 10–30%.
• The LG Gram Pro 16-inch model increased from ₩3.14 million in January to ₩3.54 million in three months. Its 2023 launch price was ₩2.64 million.
• According to Counterpoint Research, DRAM prices surged over 50% in Q1 2024. NAND flash memory rose over 90%.

Worth Reading.

The Era of Inflation 2.0.

• Middle East war has brought inflation. Warnings of a 1970s-style stagflation are emerging.
• According to the World Bank, if the ceasefire breaks and the war prolongs, growth could fall by 1 percentage point and prices rise by 0.9%.
• Ha Hyun-ok (JoongAng Ilbo columnist) emphasized, “What must be stopped first is the entrenchment of inflation expectations.”
• “If the psychology that prices will keep rising spreads, workers will demand wage hikes, and companies will anticipate rising labor and other costs, factoring them into product prices—creating a ‘wage-price spiral’ that drives inflation higher,” she explained.
• “Tightening is becoming increasingly inevitable. The central bank’s precarious tightrope walk between price stability and economic stimulus has begun.”
• Related Link.

The Chinese Market Is a Gym.

• The saying goes: you must train your strength in the Chinese market to survive in the global market.
• Look at the Chinese electric vehicle market.
• First, it addressed complaints about long battery charging times with a swap system.
• Second, EREVs equipped with generators have emerged.
• Third, charging speeds have improved. Huawei recently even showcased a “1km per second” technology.
• None of these are new technologies, but while others are still conceptualizing, China researches; while others research, it develops; and while others develop, it launches.
• Choe Pil-su (Sejong University professor) emphasized, “To compete with China, you must understand it well.”
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Silence Is Not the Answer.

• Lee Jae-myung’s X controversy involves multiple issues.
• First, releasing unverified claims was clearly problematic.
• Second, it may not have been a government-coordinated message.
• Third, relations with the U.S. must be considered. Some criticize that it created unnecessary diplomatic risks.
• Kim Hoe-kyung (The Korea Daily political editor) noted, “Retaliating against criticism by calling it treasonous is excessive,” but added, “There is precedent: in 1973, President Park Chung-hee pursued practical gains—oil money—through pro-Arab statements.”
• Kim Hoe-kyung observed, “From Lee Jae-myung’s pragmatic diplomatic perspective, silence may not always be the solution,” and pointed out, “Diplomatic friction could be a cost we must bear to become a globally responsible power.”
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