“Strongly Condemn the Tree-Ho Attack.”.

• Cheong Wa Dae issued a statement but did not mention Iran as the perpetrator.
• A Cheong Wa Dae official said, “We are currently in the phase of trying to identify the attacker.”
• Stimulating Iran could endanger remaining vessels. In an editorial, The Hankyoreh emphasized, “Solidarity from the international community is essential.”
• Jeong Seong-cheol (professor at Myongji University) said, “We should consider taking an active stance based on universal norms in solidarity with countries that have faced similar difficulties.”
• Chosun Ilbo headlined the story on its front page, criticizing it as “excessive caution.” In an editorial, it pressured the administration, saying, “The president’s declaration that ‘anyone who harms South Korean citizens—whether at home or abroad—will face ruin’ must be upheld.”
• Jang Dong-hyeok (People Power Party leader) criticized, “The perpetrator admits guilt, but the victim says it’s not them,” adding sarcastically, “Was it a UFO attack?”

What Matters Now.

U.S.-China Summit Amidst War.

• Trump may request Xi Jinping (Chinese President) to mediate the war.
• Xi could use this opportunity to reaffirm the ‘One-China’ principle. The Wall Street Journal reported that Trump sent a message that delays in negotiations over Taiwan are undesirable.
• Jacob Stokes (researcher at the Center for American Security) analyzed, “Xi would want the U.S. war to appear as a failure, while Trump would want the opposite.”

Iran Has Not Relinquished Its Uranium.

• Partial details of the negotiations have been disclosed. Iran proposed a plan to dilute some of its uranium and transfer the rest to other countries.
• Trump said, “We can continue attacks for two more weeks.”
• Iran possesses 440kg of 60% enriched uranium. If further enriched to 90% purity, it would be enough to produce 10 nuclear weapons.
• Benjamin Netanyahu (Israeli Prime Minister) stated, “It’s not over until the uranium is removed.”
• U.S. stock markets edged up slightly. The S&P 500, Dow, and Nasdaq rose by 0.19%, 0.19%, and 0.10%, respectively.

Deep Dive.

Jeonse Housing Shortage: 100 Million Won More at the Doorstep.

• We went to view a house, only to find seven teams waiting ahead.
• Some landlords even conduct interviews—single or childless applicants have a better chance.
• This year, jeonse contracts have dropped 29% compared to the same period last year. Monthly rent contracts fell 9%.
• If housing prices stabilize and rental demand shifts to purchase demand, will jeonse prices stabilize? The issue is that demand is rising while supply remains limited for now.
• There’s also high demand from those moving to Gyeonggi Province, and nearly 50,000 couples plan to marry in Seoul this year.
• Related Link.

Samsung Electronics’ Performance Bonus: 2.6 Billion Won Over Three Years?

• Samsung Electronics’ semiconductor division is projected to generate 112.9 trillion won in operating profit over three years.
• If 15% of operating profit is paid as performance bonuses, as the union demanded, the total would reach 16.9 trillion won—calculated as 2.6 billion won per person.

KOSPI Nears 8,000.

• It hit 7,822. A 2.3% rise would reach 8,000.
• J.P. Morgan set a target index of 10,000.
• Investor deposits grew to 137 trillion won. Foreign investor inflows are also rising as integrated foreign accounts opened.
• The Buffett Indicator, signaling market overheating, surpassed 260%. A market-cap-to-GDP ratio exceeding 100% is considered overvalued. The U.S. and Japan stand at 226% and 240%, respectively.
• Counterarguments exist. The 12-month forward price-to-earnings ratio (PER) is around 7.6x. The U.S. is at 20x, and China at 14x. Kim Hak-kyun (Shinyoung Securities Research Center Director) noted, “Even compared to the historical average of 10x, it remains low.”

Another Take.

Will Evening Laundry Spin Up Your Electric Bill?

• It’s not true. While the highest and mid-tier rate periods for industrial and commercial electricity rates have changed post-revision, household rates have not.
• Household bills remain the same regardless of usage time—day or night.
• Industrial rates peak from 6–9 PM, with mid-tier rates at 11–12 AM and 1–3 PM. Daytime rates are relatively cheaper.

Bring in the Geniuses.

• It’s a proposal by Kim Hyun-chul (Yonsei University professor).
• A gifted student from Uzbekistan could graduate from Pohang’s international school, Yonsei University, earn a Ph.D. at KAIST, and start a startup in Pangyo. Such a life path is needed to increase immigration.
• The U.S. and Hong Kong already do this. The Hong Kong University of Science and Technology became an Asian top-tier university in a decade thanks to its aggressive talent recruitment packages.
• What about Korea? 85% of foreign students leave the country.
• Kim Hyun-chul proposed five measures.
• First, the government should establish K-Global Schools—international schools nationwide.
• Second, granting permanent residency automatically to those who earn Ph.D.s in Korea.
• Third, lifting the university tuition freeze and providing bold government financial support. Creating English-speaking campuses and recruiting top-tier professors.
• Fourth, expanding top-tier visa quotas. Not 350, but 3,500. Even granting two years of residency to graduates of the world’s top 100 universities regardless of employment status.
• Fifth, establishing an integrated control tower.
• Related Link.

Climate Companion Card Alters Mobility Patterns.

• As of late March, monthly users numbered around 860,000.
• Individual car trips decreased by 0.7 per week, while public transit use rose by 2.3 trips.
• Since the Climate Companion Card’s introduction, daily public transit ridership has increased by an average of 400,000 trips.

An Unpopular Government.

• The Economist projected, “Friedrich Merz (German Chancellor) cannot hold on.”
• The Financial Times remarked of Keir Starmer (UK Prime Minister), “No British prime minister has become a national joke faster than this.”
• Before Starmer, Rishi Sunak (former UK PM) or Joe Biden (former US President) before Donald Trump were also unpopular.
• Zanny Minton Beddoes (Financial Times deputy editor) analyzed, “In wealthy, stable democracies, people’s expectations for life have risen to a level no government can satisfy.”
• The story is that satisfaction is low because expectations are high.
• South Korea has a Yoon Suk-yeol baseline effect. Relatively few countries have approval ratings as high as Korea’s. Spain and India are similar cases.
• Related Link.
• Related Link.

The Fix.

100GW of Renewables? Four Dilemmas Blocking Ambitious Goals.

• South Korea’s renewable energy share is around 10%. The OECD average is 36% (as of 2024).
• The Lee Jae-myung administration plans to expand renewable energy capacity from 35GW last year to 100GW by 2030, but faces structural constraints.
• First, renewables are the easiest to cut. When power supply exceeds demand, renewables are often switched off first. While this is partly due to their quick on-off capability, it also reflects that renewables are not the default energy source. The problem is that output control is now a routine management tool, not an exceptional measure.
• Second, renewable energy producers have nowhere to sell their electricity. Although a Power Purchase Agreement (PPA) market exists, grid usage fees are prohibitively high, and pricing mechanisms are opaque. Simply expanding transmission lines won’t solve this.
• Third, the fossil fuel-centric power governance structure is problematic. Renewable energy stakeholders are excluded from decisions on output control settlement costs and PPA grid fees.
• Fourth, it ultimately comes down to government will. The government must mediate conflicts and resolve bottlenecks.
• Solutions? Expanding transmission lines is important, but so is increasing flexible resources like energy storage systems (ESS) and heat pumps. Clear incentives must be provided for resources that stabilize the grid, such as ESS, virtual power plants (VPP), heat pumps, and thermal storage.
• There are also calls to separate players from referees. Functions like power policy design, regulation, market oversight, grid operation, and cost verification must be clearly divided, with institutionalized stakeholder participation and transparency.
• Many issues remain: how to share transmission costs, how to calculate output control expenses, etc. Shin Eun-bi (Climate Solutions researcher) noted, “Transitioning costs money, but delaying the transition may cost more.” If the government is serious about expanding renewables, it must present more concrete action plans.
• Related Link.

Minimum Wage Plus 130% for Care Workers.

• Proposed by the Korean Confederation of Trade Unions in party-government consultations.
• South Korea has up to 2.3 million care workers.
• According to the KCTU, care worker wages in South Korea are among the lowest in the OECD, averaging about 68% of the regional mean.

Marriage Migration to the Capital Region.

• 71% of the increase in marriages among 25–39-year-olds is concentrated in the capital region.
• A Korea Industrial Research Institute survey found that one in three young people who moved from the capital region to non-capital areas returned within two years.
• The argument is that jobs are needed for young people to settle down, and only by settling can they marry, have children, and sustain local communities.
• The Korea Ilbo editorialized, “There is a need to incentivize young people to stay and develop job strategies tailored to regional conditions.”
• Related Link.

ICYMI.

A Grandmother Who Stole Five Red Bean Buns.

• An 80-year-old woman was caught on suspicion of theft. It turned out she was a basic livelihood recipient who had been caring for her sick husband for 20 years.
• The police referred the woman to a summary trial instead of criminal punishment and connected her to the administrative welfare center to receive emergency livelihood support.
• Related Link.

A Judge Recalled for a Year-Old Hostess Bar Scandal.

• Judge Ji Gwi-yeon (Seoul Northern District Court, Chief Judge) was first accused of receiving hostess bar hospitality in May of last year.
• Under the Anti-Bribery Act, accepting hospitality over 1 million won is illegal—Ji claims he left before any female staff appeared.
• The Supreme Court’s Ethics Inspectorate argued that since Ji had not handled any cases involving the lawyer he dined with for a decade, it was difficult to establish a professional connection.

Senior Free-Ride Champion: Jegeudong Station.

• Of 1.44 million first-quarter riders, 680,000—47%—rode free.
• Dongmyo Station followed at 42%, Cheongnyangni at 36%.
• By volume, Cheongnyangni led with 760,000 free riders, followed by Jongno 3(sam)-ga (730,000) and Yeonsinnae (710,000).
• Last year, six national subway operators including Seoul Metro reported 775.4 billion won in free-ride losses.

North Korea’s War Profits: $13.8 Billion.

• Luxury cars are said to be increasing on Pyongyang’s streets these days. North Korea’s growth rate last year was 3.7%.
• The National Security Strategy Institute estimated that North Korea’s war profits from troop deployments to Russia would amount to around $7–13.8 billion.
• This is a sum comparable to its GDP.
• North Korea deployed 20,000 special forces and engineering troops, with monthly pay of $2,000 per soldier and death compensation of up to $10,000.

Worth Reading.

Could Be a Major Blemish for Lee Jae-myung.

• Kim Hee-won (Korea Ilbo News Standards Director) emphasized, “If you are angry at a prosecution that grovels before power and selectively investigates, that anger should be channeled into ensuring investigative agencies do not pledge loyalty to individuals.”
• “The National Assembly has already established a legal distortion crime to punish evidence destruction and forgery, transformed the prosecution into a prosecution office, and even abolished supplementary investigative authority despite concerns about side effects.”
• This is a call for Lee Jae-myung (President) to make a decision. If he declares he will trust judicial procedures, face trial after his term ends, and uphold the principle of not judging himself, could his approval rating surpass 70%?
• Related Link.

Why Lee Jae-myung’s Human Rights Must Be Protected.

• Seo Young-chae (Seoul National University professor) disagrees.
• “Lee Jae-myung, once targeted by mob-justice, embodies the concrete universality of human rights—a living symptom of justice. The gaping hole in legalism yawns there. Whether his dignity as an individual is preserved has now become a matter of the entire community’s dignity.”
• Seo emphasized, “This is not just about one person’s rights but the structural implementation of rights themselves.”
• “It has become an issue beyond practical politics,” he analyzed.
• Related Link.

Who’s Worse?

• No one walks a path knowing it leads to death. Does Jang Dong-hyeok truly not realize?
• Elections are decided not by “who does better” but by “who does worse.”
• Seong Han-yong (Senior Reporter, Hankyoreh) assessed, “In that competition, the People Power Party is ahead.”
• Related Link.

Removing the Safety Pin Called Jang Dong-hyeok.

• What happens if the safety pin is removed? The story is that the People Power Party, with enough pressure for change already built up, will explode.
• Lee Dae-geun (Woosuk University professor) emphasized, “If Daegu changes the People Power Party, and the changed People Power Party changes the Democratic Party, such a chain reaction could at least begin to fix Korean politics.”
• Related Link.