“Illegal Loans, No Need to Repay.”.

• “Loan contracts exceeding 60% annual interest are entirely invalid—both principal and interest.” The law already sides with victims.”
• Lee Jae-myung (President) posted this on X. The revised Loan Business Act has passed the State Council.
• Following last July’s invalidation of illegal loans above 60%, it supplemented follow-up measures, including simplified damage report forms.
• Related Link.

Brutal Finance: Shaking Up Loan Structures.

• “I am a clear accomplice. I am the one who designed, operated, and justified this brutal system.”
• Kim Yong-beom (Blue House Policy Director) argued, “We must shake up loan structures so household loans are not confined only to the safe greenhouse of high-credit borrowers.”
• Lee Jae-myung (President) has repeatedly emphasized, “Loans for struggling people are more expensive.”
• Kim admitted, “At first, I thought the question was ignorant of credit basics and laughed it off. But that question struck at the heart of the assumptions we’ve taken for granted.”
• Kim proposed three alternatives:
• First, disrupt the structure where banks ‘avoid’ lending to mid- or low-credit borrowers.
• Second, expand the framework of credit evaluation.
• Third, strengthen the role of grassroots financial institutions.
• “Inside the walls, high-credit borrowers enjoy low rates in comfort, while outside, the financially excluded masses cluster thickly. This is the sad reality of our finance. Have we, hiding behind the shield of ‘soundness,’ ultimately reinforced privileges? All proposals converge on one goal: reconnect broken markets and fill abandoned ones.”
• A commercial bank official interviewed by JoongAng Ilbo pointed out, “If interest rate systems expand without properly reflecting risk, banks will inevitably reduce loans or tighten screenings” and “financial access for the neediest groups could shrink instead.”
• Related Link.
• Related Link.
• Related Link.

Low Income Does Not Mean Low Credit Score.

• Among the top 30% by income, 6.74 million are high-credit borrowers with scores above 840.
• Among the bottom 30% by income, 2.02 million are high-credit borrowers.
• Low-credit borrowers with scores below 664 total 430,000 in high-income groups and 340,000 in low-income groups.
• The data shows low income does not equate to low creditworthiness. Critics warn that forcing lower interest rates for low-income borrowers could create reverse discrimination against those who have diligently repaid debts and maintained credit despite limited earnings.

What Matters Now.

Trump’s Project Freedom.

• Begins at 4 AM local time in the Middle East.
• The plan is to free ships trapped in the Strait of Hormuz. While claiming, “We are in positive discussions with Iran,” the warning that “we will respond strongly if obstructed” suggests negotiations may not be going well.
• Trump has already rejected renewed peace talks proposed by Iran.
• Related Link.
• Related Link.

South Korea’s Exports on Track to Surpass Japan.

• March exports hit $86.6 billion, followed by $85.9 billion in April.
• 15 consecutive months of trade surplus.
• Projections suggest this year’s export target of $740 billion will be easily exceeded.
• Ju Won (Head of Research at Hyundai Economic Research Institute) stated, “Even if the semiconductor cycle slows in the second half of this year, the growth trend itself is unlikely to collapse sharply,” adding, “If this momentum continues, South Korea’s exports are highly likely to overtake Japan’s.”
• Related Link.

“If Park Nominates Chung Jin-suk, I Have No Choice But to Leave the Party.”.

• Kim Tae-heum (Governor of South Chungcheong Province) said this. He was nominated as the People Power Party’s candidate for the provincial governor, yet he is considering leaving the party.
• Chung Jin-suk (former Presidential Chief of Staff) is a core figure in the pro-Yoon faction. Backlash has intensified over his announcement to run in the Gongju-Buyeo-Cheongyang by-election.
• “We declared ‘complete loyalty to Yoon.’ The ink on that declaration has barely dried, yet what does this nomination result mean?” This is what Jo Eun-hee (People Power Party lawmaker) wrote on Facebook.
• Kim Jong-hyuk (former People Power Party Supreme Council member) said, “If this election becomes a battle between ‘pro-Yoon again’ and ‘anti-Yoon again,’ it will become extremely difficult,” adding, “It’s bitter to see that they prioritized strengthening their own positions and the pro-Yoon faction’s influence over winning the election.”
• Related Link.

Lee Jin-sook to Daegu Dalseong.

• Lee Jin-sook (former Chairperson of the Korea Communications Commission), who withdrew after eyeing the Daegu mayoral race, is being sent to Daegu Dalseong. This fills the vacancy left by Choo Kyung-ho (People Power Party lawmaker), who ran for the Daegu mayoral candidacy.
• Ulsan Nam-gap has been allocated to Kim Tae-gyu (former Vice Chairperson of the Korea Communications Commission).
• Gyeonggi Hanam-gap has been assigned to Lee Yong (former People Power Party lawmaker), who served as Yoon Suk-yeol’s (former president) executive secretary.
• Kim Hyun-jung (Democratic Party spokesperson) criticized, “The return of Yoon Suk-yeol’s collaborators has begun—the reformation of his personal ‘Hana Hoe’ faction is underway.”
• Related Link.

39 People Power Party Lawmakers at Choo Kyung-ho’s Campaign Launch.

• One-third of the People Power Party’s lawmakers gathered. Such a turnout underscores the party’s all-in approach to the Daegu mayoral election.
• For once, Jang Dong-hyeok (People Power Party leader) made a special appearance, stopping by Busan before heading to Daegu. Jo Kyung-tae (People Power Party lawmaker) quipped, “Those here just to chant Jang Dong-hyeok’s name should go home.”
• Related Link.
• Related Link.

Deep Dive.

Trump Imposes 25% Tariff on European Cars.

• Over 5,000 U.S. troops stationed in Germany will be withdrawn—14% of the 36,000-strong force.
• This is retaliation against Friedrich Merz (German Chancellor) for claiming, “America is being humiliated by Iran.”
• The car tariffs target all of Europe. Trump once remarked, “I’ll remember” when Europe refused to send troops to the Strait of Hormuz.
• A 25% tariff will unavoidably cause €15 billion in production losses in Germany alone.
• Michał Matlak (European University Institute researcher) stated, “This is not a new turning point but another step toward the ‘divorce of the Atlantic alliance.’”
• Speculation also arises that South Korea could be next, with U.S. troops withdrawn from the peninsula.
• Related Link.

From Cheongju to Busan: A Fatal Delay.

• A 29-week pregnant woman hemorrhaging. Obstetrics departments called nearby tertiary hospitals, but all refused.
• 119 paramedics contacted 41 hospitals before transferring her to Dong-A University Hospital in Busan—but the fetus could not be saved.
• From initial call to helicopter transport: 3 hours and 20 minutes.
• A 24-hour maternal-child medical center was established, but a shortage of specialists left it unable to treat patients.
• Chungbuk National University Hospital has two obstetricians; one is on overseas training, leaving the remaining doctor on 24-hour duty.
• Jeong Eun-kyeong (Minister of Health and Welfare) visited the hospital but offered no concrete solutions.
• Related Link.

Another Take.

A Low Voter Turnout Wildcard.

• The Democratic Party is widely expected to dominate, but some analysts frame it as a clash between the “New Lee Jae-myung” and “Shy Conservatives.”
• While the Democratic Party’s lead over the People Power Party exceeds double digits, the key lies in how many “New Lee Jae-myung” voters—centrists and conservatives who shifted to the Democratic Party—and “Shy Conservatives” (unaccounted for in polls) actually cast ballots.
• Nearly 30% of voters are unaffiliated, and many may skip voting. Local elections traditionally see low turnout—2022’s was under 51%.
• The share of self-identified centrists has grown: 49% in Gallup Korea’s April weekly poll claimed neutrality.
• Related Link.
• Related Link.

Heavy Transfer Tax Repeal D-4.

• Last month, 1,998 Seoul apartments were gifted—44% more than March.
• After May 9, multi-homeowners will face an additional 20–30 percentage points on transfer taxes.
• While panic selling at reduced prices has surged in some areas, apartments under ₩1.5 billion with active mortgages are seeing price spikes.
• Related Link.

Is the Prosecution Manipulation Special Prosecutor Act Justifiable?

• Khan Newspaper warned, “It could set a dangerous precedent.”
• The Prosecution Manipulation Special Prosecutor Act claims to investigate prosecutorial corruption but faces suspicions that its true goal is to dismiss charges in the Lee Jae-myung (President) case.
• Even within the Democratic Party, there is an air of consternation. One lawmaker interviewed by Khan Newspaper said, “Arguing for charge dismissal is one thing, but proposing and passing a law is entirely different.”
• Another lawmaker remarked, “Public sentiment is worsening, approval ratings are falling—this could lead to even harsher consequences.”
• Han Sang-hee (Konkuk University professor) pointed out, “Ultimately, it’s a situation where the president himself appoints the judge for his own case.”
• Lee Chang-hyun (Hankuk University of Foreign Studies professor) criticized it as “a bill crafted for one president, a clear violation of the rule of law.”
• Related Link.
• Related Link.

No One Can Be Judge in Their Own Case.

• Hwang Dae-jin (Chosun Ilbo columnist) criticized, “The essence of the prosecution dismissal special prosecutor is creating an entity outside the law, distinct from ordinary citizens.”
• Some speculate it will not affect the president’s approval ratings or Democratic Party support. Sung Han-yong (Hankyoreh senior reporter) called it “arrogant and complacent.”
• The Korea Daily editorial emphasized, “The president must clarify his stance.” “Should the president remain someone who undermines the fundamental criminal law principle that no one can be judge in their own case?”
• The Kyunghyang Shinmun editorial argued, “The prosecution dismissal issue can be discussed after the substantive truth is uncovered” and urged, “The special prosecutor should not be granted dismissal authority to provoke controversy.”
• Chosun Ilbo’s editorial insisted, “It is right to halt the dismissal push now and declare intent to face trial honorably after the term” and warned, “If the defendant appoints a special prosecutor who then dismisses the case, it would be a surreal abuse of the rule of law.”
• The Blue House maintains, “No particular stance.”
• Related Link.
• Related Link.
• Related Link.
• Related Link.
• Related Link.

“Never Considered Relocating K-Arts to Gwangju.”.

• Choi Hwi-young (Minister of Culture, Sports and Tourism) put the controversy to rest.
• Proposals by Jeong Joon-ho (Democratic Party lawmaker) and others to relocate the Korea National University of Arts to Gwangju ahead of local elections sparked massive backlash.
• Choi emphasized, “This is not a matter to be decided behind closed doors by a few—it requires sufficient deliberation and public consensus in an open space.”

The Fix.

“Let’s Break the Pro-Labor vs. Anti-Business Dichotomy.”.

• Lee Jae-myung (President) said this at the Labor Day commemoration. “On workplace safety, there will be no compromise,” he stressed.
• This is the first time the Blue House has held a Labor Day commemoration.
• Renaming Workers’ Day to Labor Day was the first change in 63 years, and it became the first official public holiday under the designation.
• “We will ensure that all workers—regular and non-regular, primary contractors and subcontractors, platform workers and freelancers—receive fair treatment and that no one falls into unprotected gaps,” he said.
• Related Link.

Total Fertility Rate Rises for 14 Consecutive Months.

• February births numbered 22,898, with a total fertility rate of 0.93.
• The rise includes effects from delayed marriages resuming post-pandemic and evaluations of an “echo boomer” impact from baby boomers’ offspring, though some attribute it to policy successes.
• Lee Sang-lim (Senior Researcher, Seoul National University Population Policy Research Center) stated, “Given that youth realities and fundamental factors in childbirth decisions remain largely unchanged, the current upward trend is unlikely to sustain long-term.”
• Kim Yong-ha (Soonchunhyang University Professor) emphasized, “To maintain this rebound, structural reforms addressing housing instability and work-family balance—core concerns of young adults—must be prioritized beyond short-term cash incentives.”
• Related Link.

The Number of Registered Pregnant Women Has Surged.

• It is also noteworthy that the number of pregnant women who registered their pregnancies at public health centers from last April to this March exceeded 350,000.
• There are predictions that this year’s number of births will exceed 300,000 for the first time in seven years.
• Last year’s number of births was 253,712.
• Even accounting for a 10–15% rate of pregnancies not reaching full term, expectations are high that this year’s birth numbers will see a significant increase.
• Related Link.

Laundry Rooms Built from Hometown Love Donations.

• Seokgok-myeon and Ipmyeon laundry rooms in Gokseong County, South Jeolla Province.
• Built with 189 million won in donations.
• The laundry space and 1.5-ton truck belong to Ipmyeon Agricultural Cooperative.
• Residents can leave bedding at the village hall for free pickup, washing, and delivery.
• Related Link.

37 Hospice Beds per Million People.

• There are reportedly 240,000 “end-of-life refugees.”
• 70% die within a month if life-sustaining treatments like CPR or dialysis are halted.
• Most wish to die at home, but fear burdening families, so they go to nursing hospitals or facilities—only to end up in emergency rooms. Even then, many are turned away.
• South Korea has only 1,910 inpatient hospice beds.
• The European Association for Palliative Care recommends 50 hospice beds per million people; South Korea has about 37.
• Hospice beds are unprofitable for hospitals.
• Jang Sook-rang (Chung-Ang University professor) emphasized, “Domestic home-based hospice care only minimizes physical pain. We must expand caregiving support to reduce 24-hour family burdens and strengthen emotional support for patients and caregivers.”
• Kim Sun-hyun (International St. Mary’s Hospital professor) stressed, “We must integrate fragmented home-based medical-welfare services—home care, home nursing, and integrated care—to efficiently use resources and personnel.”
• The low rate of withholding life-sustaining treatment is tied to this environment.
• In an editorial, Dong-A Ilbo pointed out, “Who can easily give up when stopping life-sustaining treatment means either burdening families at home or enduring neglect in pain while shuttling between hospitals and emergency rooms?”
• Related Link.
• Related Link.

ICYMI.

National Growth Fund Invests 5.6 Trillion Won in Upstage.

• The fund includes 100 billion won from the Advanced Strategic Industry Fund, 30 billion won from the Korea Development Bank, and 430 billion won in private investment.
• Upstage is a unicorn company participating in the Sovereign AI project.

AI Scores 89 on Medical Record Analysis.

• Human doctors averaged only 34 points. Results from testing with diagnostic cases from medical journals. Median score of 46 physicians.
• Tested with real patient data, AI scored 67% in the initial ER stage and rose to 82% in the final stage. (Tested with GPT-o1.)
• In the initial ER stage, human doctor 1 scored 55%, doctor 2 scored 50%. In the final stage, human doctors reached 79% and 70%.
• This means AI’s judgment was significantly more accurate in the early stages.
• Related Link.

Swiss Referendum to Cap Population at 10 Million.

• Strengthening citizenship requirements means restricting immigration. Among 9.1 million people, foreigners account for 27%.
• The bill was proposed by the far-right Swiss People’s Party, with about 52% public support.
• Anti-immigrant sentiment is spreading across Europe. Sweden, France, and others have tightened citizenship requirements.

Berkshire Hathaway’s Cash Hoard Hits $380 Billion.

• Berkshire Hathaway, the world’s largest investment company, has increased its cash reserves for 14 consecutive months.
• It sold off shares in banks, financials, and consumer staples sectors.
• Last year’s net profit was $10.1 billion.
• Related Link.

Worth Reading.

Is It a Sedition Party or Not?

• The constitutional amendment to strengthen martial law requirements is being submitted to the plenary session. Since the National Assembly must complete its decision 30 days before the vote, today (May 4) is the deadline.
• The People Power Party can escape being labeled a sedition party by voting in favor.
• Lee Se-young (Hankyoreh columnist) emphasized, “It is a matter for each lawmaker, as independent constitutional bodies, to decide.” “Political strategy or constitutional principle?”
• Related Link.