8.69 Million Workers Outside the Law.

• So-called “fake 3.3%” freelancers—nominally self-employed but paying 3.3% business income tax instead of earned income tax—continue to grow in number.
• They work like employees but are registered as individual business owners, excluded from minimum wage, severance pay, and the four major insurances.
• While the government pushes for a “Basic Act on Working People,” progress remains sluggish.

7.63 Million Tissue Workers.

• Workers in businesses with fewer than five employees also lack legal protections.
• No 52-hour workweek limits, and no overtime pay for night or holiday shifts—exemptions abound for small workplaces.
• Employers in such businesses can terminate contracts without cause. They’re also exempt from the Serious Disaster Punishment Act.
• 27% of all employed workers fall into this “tissue worker” category.
• The Korea JoongAng Daily editorialized, “Even accounting for the harsh realities of small businesses, labor law exemptions must be phased out gradually.”
• Related Link.

What Matters Now.

“Hurting Other Workers.”.

• Lee Jae-myung (President) made this remark regarding the Samsung Electronics union, which has warned of a strike. They are demanding 15% of operating profit as performance bonuses—around 600 million won per person.
• Lee criticized, “They are making excessive demands to save only themselves.”
• While some claim a strike could cause up to 30 trillion won in production disruptions, it ultimately remains a labor-management issue. The government cannot intervene, and intervention would not change anything.
• The Samsung Electronics union’s website domain is paebup.com (strike.com).
• The Gyeonggi Regional Employment Labor Office recognized the Samsung Electronics union as the majority union. The union is following strike procedures, while Samsung Electronics has filed for a preliminary injunction. The ruling will be announced between the 13th and 20th.
• Related Link.
• Related Link.
• Related Link.

Special Prosecutor to Investigate Manipulation Charges.

• It is a special prosecutor investigating eight cases related to Lee Jae-myung (President) at once. Since it can also determine whether to maintain the indictment, it is highly likely to lead to the cancellation of the indictment. (Combining the Moon Jae-in administration cases, such as the West Sea shooting incident and real estate statistics manipulation, there are 12 cases in total.)
• The Democratic Party, People Power Party, and Cho Kuk Reform Party each recommend one person, and the President appoints one. There is a risk that a special prosecutor appointed by the President could appear to grant immunity to the President’s case.
• Cheon Joon-ho (Democratic Party lawmaker) said, “The Yoon Suk-yeol regime has mobilized all state power to assassinate Lee Jae-myung,” and added, “The facts revealed during the parliamentary investigation must be confirmed through investigation.”
• The Supreme Prosecutors’ Office released a statement: “Investigating matters that should be confirmed in court could unduly influence the independence of the judiciary.”
• A Blue House official said, “It is a matter under discussion in the National Assembly, and the Blue House has no particular stance.”
• Related Link.

Coercive Investigations and Sentence Bargaining Allegations.

• With suspicions raised, it cannot simply be overlooked.
• A recording exists of Park Sang-yong (prosecutor) saying during the investigation of Lee Hwa-young (former Vice Governor of Gyeonggi Province), “Lee Jae-myung will be treated as a co-conspirator, and after some time, Lee Hwa-young will be released.”
• Claims also emerged that Jeong Il-kwon (prosecutor) pressured Nam Wook (owner of Cheonhwadongin) by showing him photos of his children.
• In the recording of Jeong Young-hak (owner of Cheonhwadongin), there was also a dispute over whether to address someone as “Director” or “Jae-chang hyung.” There are allegations that this was a targeted investigation aimed at Jeong Jin-sang (then Gyeonggi Province policy advisor).

Trump to Reduce U.S. Troops in Germany.

• There are currently 84,000 U.S. troops stationed in Europe, with 35,000 in Germany, including at Ramstein Air Base.
• Japan hosts the largest contingent, with 55,000 troops.
• On Truth Social, Trump wrote, “We are considering reducing the number of troops in Germany.”
• The move is likely retaliatory, as Germany has distanced itself from the U.S.-Iran conflict. Friedrich Merz (German Chancellor) remarked, “The U.S. lacks a strategy and has been humiliated by Iran.”
• Trump responded, “Merz doesn’t know what he’s talking about,” adding, “It’s no surprise Germany is underperforming economically and otherwise.”
• The German federal government has set its 2025 defense budget at €105.8 billion, a 28% increase. Analysts suggest Europe’s security landscape is shifting.
• Related Link.
• Related Link.

Will South Korea Face Retaliatory Measures Too?

• Trump may have grievances with South Korea, but it’s a different case—requiring U.S. congressional approval.
• There are 29,000 U.S. troops in South Korea, though Trump has long claimed the number is 45,000.

“The U.S. Has Lost.”.

• Mojtaba Khamenei (Iran’s Supreme Leader) issued a message: “The next target is 140.”
• This refers to driving up global oil prices. “New rules and management systems for the Strait of Hormuz will be implemented,” he warned.
• Brent crude briefly surpassed $126.
• In a call with Axios, Trump said, “They’re choking like a stuffed pig,” adding, “The situation will get worse, and they can’t have nuclear weapons.”
• Trump’s remark that “blockades are more effective than violence” implies no immediate further airstrikes. Indeed, missile stockpiles are nearly depleted.
• Reports still suggest preparations for short, sharp airstrikes are underway.
• Related Link.

Big Tech Earnings Surprise, U.S. Stock Market Hits New Highs.

• S&P 500, Dow, and Nasdaq rose 1.02%, 1.62%, and 0.89% respectively.
• Alphabet (Google) reached a market cap of $4.6 trillion. First-quarter revenue and profit surged 22% and 81%. Its revenue matched Nvidia’s $4.9 trillion.
• The Wall Street Journal assessed, “AI has rescued the Trump economy.” AI drove 2% of U.S. growth. Corporate investment rose 10%, mostly in information technology. Data center investments alone hit $130 billion in Q1.
• Related Link.
• Related Link.

Choi Tae-won’s National Assembly Lecture: “Let’s Jointly Purchase Power with Japan.”.

• He made a bold proposal to integrate economies and jointly purchase energy with Japan.
• “If the two countries integrate their economies, we can move from a high-cost society to a low-cost one. As costs decrease, we can invest more elsewhere.”
• SK Hynix reported an operating profit of 3.7 trillion won in Q1. Choi Tae-won (SK Chairman) said, “People say, ‘You’re making so much money—isn’t that great?’” but warned, “If prices rise and supplies fall short, people will start researching every possible way to stop using memory chips.”
• He emphasized three priorities: speed, scale, and safety nets. “It doesn’t have to be perfect—just move fast and expand scale. At the same time, we must resolve the jobs crisis.”
• On a request to build a semiconductor plant in South Jeolla Province, he said, “I’m not sure semiconductors are the best fit there,” adding, “Since the region has electricity, we’re looking for the most efficient business to utilize it.”
• Related Link.

Deep Dive.

“Stop Forcing Political Sacrifices.”.

• Jung Jin-seok (former Presidential Chief of Staff) said this. He applied for nominations in Gongju, Buyeo, and Cheongyang.
• “I have no intention of severing personal relationships. I think forcing political sacrifices even in personal matters is too cruel.”
• Lee Jin-suk (former Chair of the Korea Communications Commission) applied for a nomination in Daegu Dalseong. “Is Yoon Again a criminal?” she asked.
• A People Power Party lawmaker said, “In an already bad situation, how can we run an election with the ‘Yoon Again’ label attached?”
• Related Link.

Seoul Bus Drivers Win Wage Lawsuit.

• Drivers had argued that the biannual bonus—equivalent to 100% of base pay—should count as regular wages. Higher regular wages would increase overtime and holiday pay.
• The first trial ruled the bonus lacked fixed regularity, but the appellate court overturned this.
• Since Seoul’s public-private bus system requires the city to cover operating losses, the ruling could add around 180 billion won annually to municipal costs.
• Related Link.

Another Take.

Hanwha Solutions’ Paid-Increase Plan Hits Another Snag.

• They cannot block the paid-increase plan. However, the Financial Supervisory Service can keep rejecting the filings.
• They initially filed for a 2.4 trillion won increase, which was rejected, then resubmitted for 1.8 trillion won—only to be rejected again. If they fail to refile within three months, the plan will be voided.
• Last year, Hanwha Aerospace also faced a similar issue: they initially filed for 3.6 trillion won, reduced it to 2.3 trillion won, and refiled.

Samsung Electronics’ Q1 Operating Profit: 94% from Semiconductors.

• “This year’s capacity is completely sold out.” Words from Kim Jae-jun (Samsung Electronics Memory Business Division Vice President). Yesterday’s finalized earnings were announced.
• This year’s HBM sales are expected to triple compared to last year, and next year, the gap between memory demand and supply will widen further.
• Related Link.

Production, Consumption, and Investment All Rise.

• All indicators looked good through March. The war’s impact is likely to appear from April.
• First-quarter industrial production rose 1.7%, retail sales 2.4%. Equipment investment surged 12.6%—the largest increase since Q4 1999 (15.8%).

Seoul Western District Court Riot: 18 Convicted.

• 466 days later. Maximum sentences of four years were finalized.
• Last January 19, as the arrest warrant for Yoon Suk-yeol was issued, they smashed through the main gate and windows of Seoul Western District Court, destroying furniture and facilities.
• Related Link.
• Related Link.

Western District Court Documentary Filmmaker Also Convicted.

• The 2 million won fine imposed on Jung Yun-seok (documentary director), who entered the protest site for coverage, drew significant criticism.
• Jung Yun-seok called it “a case exposing the court’s self-interest and bureaucratic authoritarianism,” adding, “I will file an appeal.”
• JTBC reporters present at the same scene faced no penalties. Critics argue this constitutes unreasonable discrimination between journalists and artists.
• Related Link.

Reconstruction Cost Dispute.

• Hyundai Engineering & Construction is demanding a per-square-meter construction cost increase from 5.84 million won to 9.59 million won for the redevelopment project in Seoul’s Songpa-gu, Machon 4th District. The contract, signed in 2021 at 383.4 billion won, has now ballooned to 673.3 billion won.
• The construction cost index, with 2020 as the base (100), rose to 134 by March.
• If construction costs rise 30–40%, resident contributions will increase by at least 20%. In northern Seoul, pre-sale prices are soaring to 1.7–1.8 billion won.
• Lee Eun-hyeong (Research Fellow at the Korea Construction Policy Research Institute) said, “Additional contributions of 500–700 million won are projected for many metropolitan projects,” adding, “Many owners will likely avoid pushing forward with projects altogether.”

One in Four Participatory Trials Involves Sex Crimes.

• Acquittal rates reached 52% as of 2024. In sex crime cases lacking evidence beyond victim testimony, entrusting verdicts to jurors reportedly increases acquittal rates.
• Seo Hye-jin (director, Korean Women Lawyers Association) stated, “For victims, repeatedly testifying about their trauma before a jury is itself burdensome, while defendants exploit emotional vulnerabilities through aggressive cross-examination.”
• The critique: “While participatory trials aim to reflect public legal sentiment, in sex crime cases, they risk reinforcing harmful stereotypes that skew verdicts.”
• Related Link.

Was the Han River the Only Bestseller?

• Last year, 72 publishing companies reported sales of 4.853 trillion won and operating profits of 137 billion won—declining by 1.3% and 13.4%, respectively.
• Changbi and Munhakdongne saw operating profits limited to 7.1 billion and 5.5 billion won, respectively. The 2024 Han Kang (author) “special” quickly faded.
• Minumsa’s progress stands out: last year, sales reached 20.6 billion won with operating profits of 4.2 billion won. Minumsa published none of Han Kang’s works, yet its YouTube channel, MinumsaTV, performs well. Its lineup of steady sellers, including world literature collections, also remains strong.
• An industry insider noted, “Minumsa is majority-owned by Park Geun-seop and Park Sang-jun (Minumsa representatives), sons of founder Park Maeng-ho (former Minumsa chairman).” They assessed, “The relatively low pressure for short-term results has allowed room to continue experimental projects.”
• Related Link.
• Related Link.

CU Delivery Rider Deal, But What About Franchisee Losses?

• Many owners report sales halved for over two weeks. One convenience store owner met by Seoul Economic Daily said, “Without direct loss compensation from headquarters, franchisees who can’t cover this month’s settlement payments will face extreme situations en masse.”
• “Our survival rights were sacrificed for the cargo union’s interests,” some claim. While some media inflame the conflict, BGF Retail ultimately must resolve this.
• Related Link.

The Unending Itaewon Trauma.

• Two firefighters who responded to the disaster scene attempted suicide.
• A local small business owner who participated in rescue efforts has since passed away. He reportedly refused trauma treatment despite two prior attempts.
• The 30-year-old ran a pub that inspired the drama ‘Itaewon Class.’ His father said, “When he came home, he’d cover himself with blankets and never come out.” Though the father sought counseling multiple times, he was never informed about systems allowing involuntary hospitalization.
• Baek Myeong-jae (professor, Kyunghee University Hospital) stated, “Korean society still stigmatizes mental health treatment, making it difficult for victims to seek help themselves.” He added, “If treatment cannot be mandated, at minimum, mandatory mental health assessments to identify high-risk groups should be considered.”
• Related Link.

The Fix.

What If Solar Panels Are Installed in Cabbage Fields?

• Reduced yields are a fact: rice drops by 12.1–20.3%, potatoes by 8.9–16.5%, and cabbage by 7.3–22.9%. Green tea and grapes saw no significant impact.
• Compensation for reduced yields suffices. A farm cultivating 0.5ha of rice could see 2.63 times higher profits over 20 years with agrivoltaics (https://www.researchgate.net/publication/392011223_The_Effects_of_Agrivoltaics_on_the_Rice_Farm_Incomes), according to Yang Seung-ryong (Korea University Professor) and colleagues.
• Claims that agrivoltaics harm landscapes are partially true, but concerns about heavy metal contamination lack evidence. Solar panels are made of silicon, unrelated to heavy metals. Sun Jeong-su (Independent Fact-Checker) concluded, “Multiple studies and pilot projects have proven this claim entirely baseless.”
• Related Link.
• Related Link.
• Related Link.

“Destroying the Jar for Fear of Maggots?”.

• Lee Jae-myung (President) made this remark upon receiving reports that more schools are canceling field trips.
• The jar refers to school picnics and field trips, while maggots symbolize accident risks and parental complaints.
• Only 42% of schools went on field trips in 2024.
• Teachers are held responsible if accidents occur—some have even received prison sentences.
• They must handle travel insurance, settle accounts, and even conduct alcohol tests on drivers.

“Atopic Dermatitis Isn’t a Specialty Here.”.

• “Dermatology clinics that don’t treat skin diseases”—a scene from SNL Korea, yet reality isn’t far off.
• Of 37,514 outpatient clinics, 1,974 have no health insurance claims history. 692 are plastic surgery clinics, 1,185 are general practices. The trend is clear: clinics focusing solely on lucrative non-covered services are multiplying.
• In Seoul’s Gangnam District, 72% of plastic surgery clinics show no insurance claims.
• A JoongAng Ilbo reporter asked 30 clinics near Gangnam Station if they treat hives—26 responded, “We don’t handle that condition.”
• Related Link.
• Related Link.

ICYMI.

LG Energy Solution to Supply 10 Trillion Won in Batteries to BMW.

• LG Energy Solution recorded an operating loss of 207.8 billion won in the first quarter. Concerns about lagging behind Chinese batteries were offset by the BMW deal.
• The contract volume is 100GWh. Order backlog exceeds 400GWh.
• Lee Chang-sil (LG Energy Solution CFO) stated, “We will increase ESS (energy storage system) sales from under 10% last year to over mid-30% by year-end.”
• Related Link.

Naver’s Record Revenue.

• First-quarter revenue was 3.2411 trillion won, with operating profit of 541.8 billion won. Both increased 16% and 7% respectively year-on-year.
• Advertising revenue performed well. AI sales growth contributed over 50%.
• Naver Shopping sales also surged 36% due to the ‘Talfang’ effect.

‘Block Talfang,’ Naver Bets on Unlimited Free Shipping.

• Coupang’s Wow membership costs 7,890 won per month; Naver’s is 4,900 won.
• Coupang has already recovered to pre-Talfang sales levels.
• Choi Soo-yeon (Naver CEO) stated, “We are also considering a model for direct logistics investment.”

U.S.-Iran War Cost $25 Billion.

• Defense Secretary Pete Hegses testified at a House hearing, asserting, “Iran will never have nuclear weapons.”
• When attacked by Democratic lawmakers, he criticized, “Our greatest enemies are the reckless, feeble, and defeatist Democrats and some Republican members.”

Worth Reading.

Why Can’t We Lead in Global Salaries?

• Jeon Byung-yeol (Kyunghyang Shinmun economics editor) asks, “Looking back on life, it’s not much. What could be happier than doing what you want?”
• “Please consider how to treat and nurture the nation’s pillars first,” he advises.
• Of course, to avoid this becoming just another self-serving grab for their own “rice bowls,” they must also address profit-sharing with suppliers and coexistence with non-regular workers.
• “In turbulent times, we endure because of engineers in petrochemicals, shipbuilding, secondary batteries, and semiconductors who’ve toiled day and night. Before lamenting social chaos, ensuring these people receive their due is justice.”
• Related Link.

Is the Media Fighting Its Own Irrelevance?

• Lee Jae-sung (Hankyoreh columnist) criticized, “When prosecutors—supposed guardians of justice and human rights—are exposed for fabricating evidence and violating human rights, how can we not question the existence of a media that collectively remains silent?”
• The phrase “fighting irrelevance” is borrowed from a popular drama title: “Everyone is fighting their own irrelevance.”
• Lee pointed out, “How different is today’s media—chasing after the scraps thrown by dictatorships like dogs—from the media that once raced competitively in the direction pointed by prosecutors, now a formidable power institution?”
• (Lee’s claim that the media is collectively silent is untrue. Multiple outlets have reported on facts emerging from the state investigation, following conflicting claims to approach the truth. It’s questionable whether, as Lee suggests, “the media shows no interest even after clues to the truth have finally emerged.” Lee equates the dictatorship and prosecutors, but should also reflect on criticisms that Hankyoreh itself is vulnerable to monitoring and criticizing the ruling powers.)
• Related Link.