“Is This Israeli Soil?”.

• “Let’s judge Netanyahu’s arrest warrant ourselves.”
• These were the words of Lee Jae-myung (President) during a Cabinet meeting.
• A relief ship carrying Korean activist Haecho (Kim Ah-hyun) and Korean-American Seungjun (Jonathan Seungjun Lee) remains detained by Israel.
• Lee Jae-myung: “What’s the legal basis? Is this Israeli territorial waters?”
• Woo Sung-lak (National Security Director): “It’s not Israeli territorial waters, but Israel controls the entire Gaza Strip.”
• Lee Jae-myung: “Detaining our citizens on grounds that lack international legal validity is excessively harsh and inhumane. Is this Israeli soil? Can third-country vessels be seized and detained during hostilities? Netanyahu has been recognized as a war criminal by the International Criminal Court (ICC), and an arrest warrant has been issued. Most European countries have announced they will arrest Netanyahu if he enters their territories. We should make our own judgment.”
• The ICC indeed issued an arrest warrant for Benjamin Netanyahu (Israeli Prime Minister) in November 2024. Some countries, including Spain, have stated they will enforce the warrant if he enters their territories.
• Related Link.

Israel Releases Footage of Aid Ship Detention.

• It is a shocking video posted on X by Itamar Ben Gvir (Israeli Minister of National Security).
• As one activist shouted, “Free Palestine,” police grabbed his head and forced him to kneel. Other scenes show dozens of activists kneeling face-down with their wrists bound by cable ties.
• They waved Israeli flags and shouted, “Welcome to Israel, we are the owners.”
• According to AFP, Benjamin Netanyahu (Israeli Prime Minister) said, “This does not align with Israel’s values” and “the detained activists should be deported as soon as possible.”
• Related Link.

“Not Most Countries.”.

• Woo Sung-lak corrected Lee Jae-myung’s statement: only some countries have announced plans to arrest Netanyahu.
• Lee Jae-myung said, “From what I see, there are quite a few—let’s judge for ourselves.”
• It is true that France stated, “We will follow the ICC,” and Spain, Italy, and others declared, “We will arrest him according to legal obligations.” However, this hardly constitutes “most countries.”
• The U.S. has stated, “We fundamentally reject this.” In fact, the U.S. has sanctioned ICC judges.
• Related Link.

“Isn’t This About Detaining Our Citizens?”.

• Lee Jae-myung: “Is it reasonable to seize and arrest a third-country vessel carrying citizens who went to provide support or volunteer work, and now detain them?”
• Woo Sung-lak: “Israel explains it as entry control. Regarding those individuals, we previously stated that Gaza is a prohibited entry zone and advised against entering, yet they did enter.”
• Lee Jae-myung: “I’m saying this because they detained our citizens.”
• Woo Sung-lak: “However, there’s more complexity regarding those individuals. We advised them not to…”
• Lee Jae-myung: “The complexity and our advice not to go—that’s an internal matter if they ignored government guidance. Regardless, it’s true they detained our citizens under grounds that lack international legal validity.”
• Woo Sung-lak: “That also requires further review.”

“Will They Arrest Putin Too?”.

• ICC has also issued an arrest warrant for Vladimir Putin (Russian President).
• Lee Jun-seok (Reform Party Leader) posted on Facebook, “Please, for the love of God, show some restraint.”
• Jang Ji-hyang (Head of Asan Policy Research Institute’s Regional Research Center) said, “It could affect relations with the U.S. and even defense cooperation with the UAE, which is closely allied with Israel.”
• In an editorial, Chosun Ilbo criticized, “Israel and Netanyahu’s military actions have crossed a line to become targets of international criticism, but the president’s remarks criticizing them must not overstep.”
• Related Link.
• Related Link.

Seven-Year-Old Musinsa Ad Controversy Resurfaces.

• “Money is the devil, but can one wear a human face and do this?” Lee Jae-myung (President) posted on X.
• The controversy arose from a line in a quick-drying sock ad: “I slammed the desk, and it dried with a gasp.”
• Lee Jae-myung stated, “This was a tip—we need to verify its authenticity,” adding, “I hope it’s false, but if true, it’s a grave issue.”
• Musinsa issued an apology: “We deeply apologize again for our 2019 mistake.”
• Lee Jae-myung likely posted without knowing it was a seven-year-old ad. The Blue House explained, “This reflects his consistent philosophy and resolve to root out ongoing desecration, distortion, and mockery of democratic movements and victims.”
• Related Link.
• Related Link.

What Matters Now.

Samsung Electronics Union Suspends Strike, Tentatively Agrees to 12% Performance Bonus.

• 12% of operating profit will be paid as performance bonuses.
• Not in cash—taxes will be deducted first, and shares will be issued instead. One-third can be sold immediately, with the remainder sellable after one and two years.
• The agreement period is 10 years.
• The distribution ratio is 40% for common departments and 60% for business divisions. If this year’s operating profit is 30 trillion won, the semiconductor (DS) division could see individuals earning up to 600 million won, while non-memory divisions could receive 160 million won in performance bonuses.

Government and Labor Commission Played Pivotal Roles.

• This is the Hankyoreh’s assessment. Evaluations suggest that Lee Jae-myung (President)’s pressure was at work throughout the process—from negotiations to breakdowns, extensions, and eventual resolution.
• The mediation by Kim Young-hoon (Minister of Labor) and the post-negotiation adjustments by the Labor Commission also proved effective. Mentioning the invocation of emergency arbitration powers by Kim Min-seok (Prime Minister) and others likely weighed heavily on the union, according to assessments.
• While there were criticisms that emergency arbitration infringed on rights, Lee Jae-myung emphasized, “The government bears all responsibility for any mediation.”
• Lee Jae-myung judged that the Samsung Electronics union “crossed a line.” “When a line is crossed, the government must fulfill its given responsibilities—that is the government’s significant role,” he stated.

Campaigns Begin Today.

• This election will choose 16 metropolitan mayors, 227 local mayors, 804 metropolitan councilors, and 2,650 local councilors—a total of 4,241 positions. It will also include 14 by-elections for National Assembly members.
• Cho Seung-rae (Democratic Party Secretary-General) stated, “This election is an extension of the presidential race—to purge the incompetent remnants of rebellion from local governments.”
• Jang Dong-hyeok (People Power Party Leader) messaged responsible party members, emphasizing, “This is a desperate election to restore collapsed public livelihoods and the rule of law, and to defend liberal democracy and the Republic of Korea.”
• Related Link.
• Related Link.

South Korean Crude Carrier Passes Through Strait of Hormuz.

• ‘Universal Winner’ is carrying 2 million barrels of crude oil. It has around 10 Korean crew members.
• Negotiations with Iran have concluded. No toll was paid.
• Observers suggest the 2021 ‘Namu-1’ tanker attack incident added momentum to the talks.

‘Anti-Starbucks’ Movement Spreads.

• Jeong Cheong-rae (Democratic Party Leader) urged, “Candidates should refrain from entering Starbucks.”
• The Seoul Jazz Festival decided not to operate a Starbucks booth.
• Related Link.

Starbucks’ Call Option Clause.

• There is a clause allowing Starbucks HQ to acquire all shares held by Emart if the contract is terminated due to Emart’s fault, with a 35% discount applied to the fair value assessment.
• When the 2021 contract was signed, Starbucks Korea’s corporate value was 2.7 trillion won. Emart’s 67.5% stake was valued at 1.8 trillion won, meaning they would have to transfer it for 1.2 trillion won after applying the 35% discount.
• While immediate contract termination is unlikely, the situation remains a significant burden.

Deep Dive.

Jeong Won-o Leads Even in Gangnam.

• In a JoongAng Ilbo poll, Jeong Won-o (Democratic Party Seoul mayoral candidate) and Oh Se-hoon (People Power Party Seoul mayoral candidate) recorded 45% and 34%, respectively. The margin of error is ±3.5 percentage points. Jeong led in all Seoul regions.
• Jang Han-ik (CaseStat Researcher) analyzed, “There is still room for the gap to narrow.”
• The Pyeongtaek by-election is tight between Kim Yong-nam (Democratic Party candidate) and Cho Kuk (People Power Party Leader). They stand at 29% and 23%, respectively. The margin of error is ±4.4 percentage points. Kim has drawn a line in the sand, refusing to unify even if the party demands it.
• Jeon Jae-soo leads in the Busan mayoral race. Jeon Jae-soo (Democratic Party candidate) and Park Hyung-jun (People Power Party candidate) recorded 42% and 35%, respectively. The margin of error is ±3.5 percentage points.
• The Busan Buk-gap by-election hinges on unification. If Han Dong-hoon (Independent candidate) unifies with Park Min-sik (People Power Party candidate), they would tie with Ha Jung-woo (Democratic Party candidate) at 38%. If unified under Park Min-sik, Park and Ha would stand at 43% and 51%, respectively. Even with unification, neither would fully absorb the other’s support base.
• The Daegu mayoral race is razor-thin. Kim Bu-gyeom (Democratic Party candidate) and Choo Kyung-ho (People Power Party candidate) stand at 41% and 38%, respectively. The margin of error is ±3.5 percentage points. (All surveys were conducted via mobile phone interviews.)
• Related Link.

Xi and Putin Summit: A Snub to Trump?

• Protocol scale exceeded Trump’s 2017 visit.
• Xi Jinping (Chinese President) stated, “The world is at risk of regressing to the law of the jungle.”
• Vladimir Putin (Russian President) likely criticized the U.S. indirectly, saying, “An international order based on the interests of bullets is being created.”
• The ‘Power of Siberia-2’ gas pipeline project, routing through Mongolia, was concretely discussed.
• China and Russia are visibly deepening their alignment.
• Related Link.

Another Take.

“Blue House Administrator’s Abuse of Power.”.

• Lee Seok-yeon (National Integration Committee Chairman) protested, “In over 40 years of public service, I have never encountered such rudeness.”
• A Blue House administrator allegedly pressured the committee by email, urging submission of requested materials and warning, “This is a critical matter that could disrupt state affairs and presidential reporting.”
• The administrator’s demand was for the committee to include Blue House officials in overseas trips and cover the costs.
• Lee has previously criticized the rebellion-dedicated court and the crime of distorting law. A ruling party official met by Chosun Ilbo said, “There is a current hoping he will resign voluntarily.”
• Lee remarked, “Staff are intoxicated with arrogance,” adding, “They must learn to fear the people.”
• Related Link.
• Related Link.

‘Myeongpik’ Seven.

• Democrat Party candidates Ha Jung-woo (Busan Bukgab), Kim Nam-jun (Incheon Gyeyang), Jeon Eun-su (Chungnam Asan), and Kim Nam-guk (Gyeonggi Ansan) are among the ‘Myeongpik’ candidates. If elected, speculation suggests a direct Blue House faction could form in Yeouido.
• Woo Sang-ho (Gangwon Governor candidate), Kim Byung-wook (Seongnam Mayor candidate), and Son Hwa-jeong (Incheon Yeongjong District Mayor candidate) complete the seven, all candidates with Blue House backgrounds.

Korea-Japan Crude Oil Swap: A Win-Win Game.

• South Korea has the world’s top refining capabilities, while Japan excels in crude oil procurement.
• Japan’s earthquake risks have dispersed its refining facilities, making it far more economical to purchase from Ulsan.
• In March and April this year, South Korea exported 370,000 tons of gasoline to Japan and imported 150,000 tons—a structure of Korea bringing crude from Japan and exporting refined petroleum products back.

Anthropic’s Earnings Surprise? First-Ever Quarterly Profit Forecast.

• Projections suggest revenue will surge 130% to $10.9 billion—a potential earnings surprise that could dispel bubble concerns.
• The Wall Street Journal analyzed that Anthropic’s corporate value could surpass OpenAI. (Anthropic and OpenAI operate Claude and ChatGPT, respectively.) OpenAI is valued at $730 billion, while Anthropic is assessed at $900 billion.
• Anthropic spent 71 cents per dollar of revenue on computing costs in Q1, reduced to 56 cents in Q2—a sign of improved efficiency. Costs dropped by switching from Nvidia chips to Amazon chips.
• U.S. stock markets rallied across the board. The S&P 500, Dow, and Nasdaq rose 1.08%, 1.31%, and 1.54%, respectively.
• Related Link.
• Related Link.

NVIDIA Also Sets Records.

• Quarterly revenue was $81.6 billion, net profit $58.3 billion—nearly doubling and tripling, respectively.
• Gross margin was 75%.
• Jensen Huang (NVIDIA CEO) projected GPU sales could reach $1 trillion by the end of next year.
• Related Link.
• Related Link.

SpaceX’s First-Ever Financial Disclosure.

• Last year’s revenue was $18.7 billion, with $4.7 billion in Q1 this year.
• Last year’s capital expenditure was $20.7 billion, resulting in a deficit exceeding $4.9 billion. The first quarter of this year also saw a $4.3 billion deficit.
• Plans call for raising up to $75 billion in next month’s IPO.
• Related Link.

The Fix.

Humanities and Social Sciences Receive Just 0.9% of R&D Budget.

• Of 35 trillion won, only 0.3 trillion won is allocated.
• France dedicates 19%, Japan 13%, the US 11%, and Germany 8%.
• Kang Sung-ho (Chairman of the Korean Council for Humanities and Social Sciences Research) warned, “A country that dreams of becoming a technological powerhouse yet spends only pocket change on the disciplines that question the direction and standards of technology may advance quickly, but it will never be truly resilient.”
• “AI can be a powerful engine. However, it is not the engine but people who decide where it should go. Where to stop hate speech, how to filter historical distortions, and by what criteria to judge the common good—these are all questions beyond algorithms. If technology is the engine, humanities and social sciences are the rudder. High-speed travel without a rudder is not progress but peril.”
• Related Link.

72% of Blocked Digital Sex Crime Content Remains Accessible.

• The Korea Communications Standards Commission announced it had blocked 21,951 cases.
• The Digital Sex Crime Prevention Center found that 143 out of 198 cases—72%—reported as blocked were still accessible.
• Ryu Hye-jin (Incheon Digital Sex Crime Prevention Center Team Leader) stated, “We need to strike at the exploitation structure, not just block content one-by-one.”

ICYMI.

Pension Funds Reach 501 Trillion Won.

• Annual returns hit 6.5%.
• Lower than the National Pension Service’s 19.9%, but the highest return since the introduction of private pensions in 2005.

“Julie Never Even Crossed My Mind.”.

• Kim Keon-hee (wife of Yoon Suk-yeol) publicly refuted the “Julie” controversy for the first time.
• Yesterday, while testifying as a witness in the election law violation trial involving Jeong Cheon-su (CEO of Open Empathy TV) and others, she stated, “The name I used in chat rooms or mini-homepages was Jenny.”
• She claimed, “I visited the Ramada Hotel restaurant multiple times but never went to a nightclub.”

Ravens Remember Humans After Five Years.

• They share information about potential threats with their peers.
• The Ministry of Climate, Energy, and Environment warned to avoid direct eye contact if possible.
• May is an especially sensitive period, as juveniles prepare for independence. With 50–60 cm bodies and large beaks, they are formidable.
• Related Link.

Worth Reading.

“The Problem Isn’t Shareholder Capitalism—It’s Short-Termism.”.

• Lee Jun-il (Kyung Hee University Professor) pointed out, “Whether shareholder, manager, or union, an obsession with short-term performance will lead to killing the goose that lays golden eggs.”
• “The voices worrying about shareholder capitalism are not small. However, a close look at what is cited as problems of shareholder capitalism reveals that most are not issues inherent to shareholder capitalism itself, but problems arising from an obsession with short-term performance—that is, the issue of ‘short-term shareholder-centric capitalism.’”
• “Short-termism is not unique to shareholder capitalism. Problems arise when any stakeholder fixates on short-term performance. Managers fixated on short-term results for job security and bonuses are problematic. Unions demanding excessive wage hikes are problematic. Creditors demanding sudden repayments are problematic. Governments implementing abrupt tax policies are problematic. Shareholders demanding only short-term results are problematic.”
• Related Link.

Disinformation and Quotation Journalism.

• Kanizsa’s triangle makes us imagine a triangle that isn’t there. Kim Nae-hoon (writer) views the mechanism of conspiracy theories similarly: deriving context and constructing grand narratives from isolated fragments of fact.
• Quotation journalism lends power to conspiracy theories. The critique is that “reporting that merely formally satisfies the minimum requirements of objectivity provides the optimal soil for so-called disinformation campaigns.”
• Kim Nae-hoon emphasized, “ ‘Truth’ is not something passively waiting to be discovered by someone hiding somewhere, but the product of struggle.”
• Related Link.

Crossing Desires and Multilayered Incompetence.

• This is how Jung Jae-hyeok (The Kyunghyang Shinmun columnist) views the Samsung Electronics crisis.
• First, the survival-of-the-fittest mentality that ignores others’ desires.
• Second, the logic of power that prioritizes one desire to suppress others.
• Third, the indifference that treats those who haven’t even gained citizenship of desire as invisible.
• Fourth, the eerie silence that closes the door on societal solutions to these overlapping problems.
• Jung Jae-hyeok emphasized, “Discussions must begin to establish criteria and scope for profit distribution.”
• Related Link.

Where Will the 100 Trillion Won Go?

• First, “excess tax revenue” is a misnomer. When more is collected than budgeted, it’s called excess revenue—but if higher collections were anticipated, the budget should have been adjusted accordingly. The key point is that tax revenue is increasing.
• If taxes exceed projections by over 100 trillion won next year, it’s time to discuss where this money should go.
• Ahn Sun-hee (Hankyoreh columnist) warned, “If the government’s semiconductor windfall fails to address polarization and youth unemployment, it could become an expensive party bill.”
• Hankyoreh emphasized in an editorial, “This should be an opportunity to publicize social consensus on communal integration and future-oriented investments.”
• Related Link.
• Related Link.