Black Tuesday.

• Samsung Electronics and SK Hynix plummeted 12.3% and 12.5%, respectively. Their combined market capitalization shrank from 4,147 trillion won to 3,633 trillion won.
• The KOSPI index lost 911 points in a single day. Foreign and institutional investors net-sold 4.1 trillion won and 4.5 trillion won, respectively. Individual investors again bought 8.5 trillion won worth of shares, catching the falling knife.
• The sidecar (temporary suspension of sell orders) was triggered for the 27th time this year—surpassing the 2008 record of 26. The circuit breaker (trading halt) was activated for the fourth time this year. The circuit breaker is a market stabilization mechanism triggered when the KOSPI falls 8% or more from the previous day’s close for over a minute.
• While U.S. rate hike prospects loom, the burden of short-term surges is also significant.
• Lee Kyung-min (researcher at Daishin Securities) noted, “Profit-taking selling emerged due to short-term overheating and accumulated gains.”
• Alexander Redmond (CLSA strategist) warned, “This could be the beginning of the end.”
• Goldman Sachs stated, “Without AI, the economy appears fragile,” adding, “Optimistic forecasts make markets vulnerable.”
• U.S. markets also struggled. Yesterday, the S&P 500, Dow, and Nasdaq fell -1.44%, -0.09%, and -2.21%, respectively.
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What Matters Now.

Samsung+SK Hynix to Invest Hundreds of Trillions in Honam Plants.

• Hankyoreh’s exclusive report. Samsung Electronics has decided to invest at least 200 trillion won, while SK Hynix plans to invest more than Samsung.
• The investment could include not just packaging processes but also semiconductor fabs. A single fab costs at least 30 trillion won.
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Spend More, Confidently: The State Council Meeting.

• Lee Jae-myung (President) said, “External evaluations are far higher than our own self-assessments.” He made the same remark during a briefing days ago.
• The State Council meeting yesterday repeatedly emphasized spending boldly.
• He ordered the government to drastically lower the maximum oil price and aggressively expand startup support programs.
• He also instructed that the Youth Future Savings budget be increased to accommodate all applicants.

Lower the Price Ceiling Further.

• International oil prices have fallen, but consumer prices remain high due to added risk premiums.
• Lee Jae-myung (President) instructed, “Lower the maximum price ceiling further.” He emphasized, “Excess tax revenue from semiconductors is expected, and even with reduced fuel taxes, the fiscal burden will not be significant. This will help household purchasing power. We must lower it decisively.”
• He noted that exchange rate volatility is not structural but a short-term overheating phenomenon. Despite record exports and current account surpluses, the weak won is attributed to the strong dollar, weak yen, and foreign investors rebalancing portfolios after capital gains from the stock market surge. He suggested stability will return once this adjustment settles.

Until the Answer They Want to Hear Emerges.

• The Financial Services Commission is accepting applications for the Youth Future Savings program, which drew 200,000 applicants on its first day. Targeting 19–34-year-olds, the program offers a combined annual rate of 19.4%—including government contributions, preferential interest, and tax exemptions. Filling the maximum 500,000 won monthly for three years yields 22.55 million won.
• Lee Jae-myung (President) pressed repeatedly: “Is there a limit?” “What if applications exceed the budget?” “Won’t someone have to be excluded? If so, by what criteria?”
• Lee Won-bok (Financial Services Commission Chairman) eventually replied, “We’ll secure additional budget if needed to accommodate all eligible applicants.” Lee Jae-myung insisted, “Do so,” adding, “How unfair would it be for someone to be cut off? The criteria must be clearly defined.”
• He emphasized that the government must “painfully acknowledge the alienation felt by youth who see record bonuses and KOSPI highs as irrelevant to their lives.” “Radically expand the ladder of opportunity,” he ordered.

“The Goal: Nuclear Might to Overwhelm the World.”.

• “South Korea is even pursuing nuclear submarines,” Kim Jong-un (North Korean State Affairs Commissioner) said at a Workers’ Party Central Committee meeting.
• He labeled South Korea as the most hostile nation.
• Yang Mu-jin (Professor at the University of North Korean Studies) stated, “This reaffirms North Korea’s lack of denuclearization intent,” adding, “It aims to preemptively block any possibility of the North Korean nuclear issue being addressed post-Iran deal.”
• Lim Eul-chul (Professor at Kyungnam University) assessed, “North Korea has declared its commitment to maintaining ‘independent strength-against-strength confrontation’ and ‘bloc diplomacy between opposing camps’ over dialogue or easing tensions for the foreseeable future.”
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Deep Dive.

Han Dong-hoon’s Anti-Leadership Alliance.

• Jang Dong-hyeok (People Power Party Leader) remains hospitalized. The term “anti-leadership alliance” refers to a group opposing Jang.
• Han Dong-hoon (Independent MP) has been meeting People Power Party lawmakers, stating, “We must all unite to rebuild conservatism.”
• Jeong Jeom-sik (People Power Party Floor Leader) also defected. In an interview with Chosun Ilbo, he said, “A Seoul mayoral re-election is impossible,” adding, “The longer we drag out Jang’s resignation issue, the more division it will cause—so a conclusion must come as soon as possible.”

Leaving Korea’s “God Jobs.”.

• KORAIL saw 651 retirees with less than 10 years of service last year alone. Korea Water Resources Corporation had 191, Korea Land & Housing Corporation 231, and Korea Electric Power Corporation 139.
• Preference for public enterprises has sharply declined, and the burden of mandatory regional rotations is significant.

Self-Employed Delinquency Surges to 15 Trillion Won.

• Delinquencies rose 13% in the first quarter of this year.
• The burden has grown as domestic demand stagnates and high interest rates persist.
• Kang Ye-won (KCD Head of Data) projected, “Weakened consumer sentiment could linger for some time.”

Red Cross Chief: A Controversial Choice.

• In Yo-han (former People Power Party MP) is the person who once said, “I understand Yoon Suk-yeol from the heart.”
• He even claimed, “National Health Insurance has strong socialist tendencies,” and sparked controversy by stating, “Deviating from biblical teachings leads to AIDS.”
• The Korean Red Cross is an organization dedicated to disaster relief and humanitarian international cooperation. Criticism has erupted over his unfitness for the role.
• The Red Cross Central Committee includes state council members from nine government ministries, including the Ministry of Education and the Ministry of the Interior and Safety. In an editorial, Kyunghyang Shinmun argued, “The president must reject In Yo-han’s appointment.”
• Temperatures continue to exceed 40°C. The North African high-pressure system is to blame.
• Tens of thousands have died from heatwaves annually, and this year is worse.
• Much of Western Europe lacks air conditioning. France’s cooling adoption rate is 25%, Italy 56%, Germany 3%, and the UK 5%. (According to International Energy Agency statistics, South Korea’s rate is 98%.)
• Mathilde Pascal (French Public Health Agency researcher) said, “The crash test has begun,” adding, “I hope the burden will be lighter than in 2003, but I’m still afraid.”
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Another Take.

Zelenskyy’s Likely Victory.

• It’s simple to imagine who will remain between Trump and Zelenskyy by 2029.
• Eswar Prasad (Financial Times columnist) projected, “Zelenskyy may outlast even Putin.”
• Trump mocked Zelenskyy as a loser, yet Zelenskyy continues to fight well.
• Last week’s G7 summit in Évian, France, agreed to support Ukraine. The U.S. House also approved an additional $8 billion in aid.
• The Pentagon is now seeking to learn drone technology from Ukrainian experts.
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A Firefighter’s Death.

• A firefighter took his own life after being forced to attend drinking sessions and subjected to workplace harassment.
• The bereaved family demanded an investigation, but the fire agency responded passively, asking for objective evidence.
• An audit by the Office for Government Policy Coordination confirmed many of the allegations.
• Lee Jae-myung (President) mentioned the case, saying, “How severe must one’s suffering have been, and how painful and bitter must it have been for his partner and family?
• Workplace bullying is the worst kind of abuse, but the problem is that people don’t realize how serious it is.”
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A Society That Urges Entrepreneurship.

• 5,000 applicants have been selected for the ‘Everyone’s Startup’ project.
• A industry insider interviewed by Kyunghyang Shinmun pointed out, “The fact that anyone can participate has the unintended effect of driving away those seriously considering entrepreneurship.”
• Jeong-hwan Jeon (Krypton Vice-President) criticized promotional messaging that “suggests anyone with a single idea can easily start a business, and with mentors’ help, advance to the next audition round,” arguing it sends signals misaligned with the direction the startup ecosystem should pursue.
• Han-jun Kim (Altimus Ventures CEO) asserted, “Most will fail, but that itself is valuable experience, and the government should encourage those who wish to try.”
• Gwang-seon Choi (The Innovators CEO) argued, “Even if not immediately, the environment must evolve so that anyone can start a business whenever they discover a genuine market need and solution.”
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Iranian Crude Sales Allowed After 20 Years.

• It’s proof Trump is so desperate to secure the Strait of Hormuz.
• He issued 60-day licenses allowing Iran to receive crude oil payments in dollars—a break from the sanctions regime built over two decades.
• Iran’s oil production has fallen from 3.2 million barrels before the war to 2.3 million last month. In 2016, it produced 4 million barrels daily.
• According to the Financial Times, 441 tankers are waiting offshore outside the Strait of Hormuz—poised to ship oil if the channel fully reopens.

The Fix.

Does Expanding Renewable Energy Increase Blackout Risks?

• ReFact checked the claim and deemed it “mostly false.”
• An analysis of OECD member states’ SAIDI (System Average Interruption Duration Index) showed that among 32 countries with increased renewable energy generation, 17 saw reduced blackout durations, 13 saw increases, and South Korea and Germany experienced almost no change.
• According to Zero Carbon Analytics, infrastructure failures were identified in 11 out of 20 major blackouts. Underinvestment in maintenance and operational errors were also contributing factors.
• Jeon Young-hwan (Hongik University Professor) noted, “A significant portion of blackouts stemmed from insufficient power infrastructure.”
• Last April’s blackouts in Spain and Portugal were also attributed to grid instability—not renewable energy issues. The accident report concluded that voltage control failures were the root cause.
• Spain has continued to expand its renewable energy share even after the blackouts.
• Globally, 85.6% of new power installations last year were renewable. “In the power industry, renewables are no longer a supplementary source but the mainstream of new installations,” according to the analysis.
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“Securing Power, Not Dogmatic, Please.”.

• Lee Jae-myung (President) urged, “We must accelerate the transition to renewable energy.”
• When asked, “Are you being uncooperative because you’re focused on climate preservation?” Kim Sung-hwan (Minister of Climate, Environment, and Energy) retorted, “Not at all.”
• Lee Jae-myung added, “Even in securing base-load power, I hope we won’t be too dogmatic,” emphasizing, “Base-load power will inevitably center on nuclear, while reducing coal and combining renewables, batteries, pumped storage—this too can serve as a stable power source.”
• When Lee Jae-myung remarked, “Environmental activists will say he’s changed,” Kim Sung-hwan replied, “When I explained the situation after being asked why we expanded nuclear, they said, ‘I understand, but I can’t agree.’”

Public Sector 364-Day Contracts.

• Because severance pay is required after 365 days.
• A survey of 30 out of 226 local governments found 2,117 workers with contracts under one year, of which 1,833 were employed for exactly 364 days.
• The government’s proposed “fairness allowance” would pay non-regular workers with less than one year of service a severance-like sum of 380,000–2.49 million won upon resignation.

ICYMI.

Housework: Men 12 Years, Women 58 Years.

• Compared to five years ago, men’s hours increased by four years while women’s decreased by three.
• The value of housework for the most burdened—men at 38 and women at 39—was 2.5 million won and 19.19 million won, respectively, a nearly eightfold difference.

As Vehicles Grow Larger, More People Are Dying.

• Pedestrian fatalities in the U.S. have surged 75% since 2009. The New York Times analyzed that if vehicle sizes had remained unchanged, 200–400 fewer people would have died annually.
• In the early 2000s, half of U.S. cars were sedans, but SUVs overtook sedans in the 2010s. Pickup trucks also increased.
• Larger vehicles are more dangerous for two reasons: first, their hoods are higher, and second, their A-pillars are thicker, creating wider blind spots. The average U.S. car hood height is 90 cm—anyone under 168 cm will be pinned to the ground upon impact.
• Pedestrian death risk rises by 2.8% for every 1-inch increase in hood height. The Chevrolet Silverado’s blind zone doubled, while the GMC Sierra and Toyota Tacoma expanded by 60%.
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JTBC Fails to Pay Scriptwriters.

• As the company enters corporate rehabilitation, cash flow is reportedly drying up. Most writers are freelance contractors, leaving them ineligible for state assistance even when wages are withheld.
• Kim Yu-kyung (Labor Attorney at Labor Law Firm Dolkkot) noted, “The labor ministry must intervene more aggressively in the issue of non-regular workers in broadcasting,” adding, “Substantive and effective measures are urgently needed.”

Worth Reading.

Dangerous If Trump and Kim Meet Alone.

• Joel Wit (Senior Fellow at the Stimson Center) told Kyunghyang Shinmun, “North Korea’s foreign policy is already fixed and won’t change just because we suddenly reach out. The very idea that the past can be revived is a major delusion.”
• Even if the South Korean government recognizes North Korea as a nuclear state, not much would change. First, Pyongyang might make more additional demands, and second, even if they come to the negotiating table, the agenda would be completely different.
• “Can the U.S. offer carrots to pull North Korea away from Russia? Nothing comes to mind.”
• Wit described Trump as a “two-minute man”—inconsistent and impulsive. His analysis: “He creates ineffective agreements and doesn’t even seem to realize they’re falling apart.” In the worst-case scenario, he might meet Kim and cancel South Korea-U.S. military drills.
• Wit stated, “I see little practical role South Korea can play at this point,” yet advised, “The South Korean government is taking a proactive stance by proposing relationship improvements and leading the way with ideas—and diplomatically, that’s correct.” “We must understand North Korea as it is, not as we wish it to be,” he added.
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Here, the Nation’s Fortune Could Be Broken.

• Gil Yun-hyung (Hankyoreh Columnist) pointed out, “A declining hegemon wanting to ‘pick its nose without dirtying its hands’ and a subordinate ally clueless in front of it—that is the essence of the ‘alliance crisis.’”
• Xavier Brunson (Commander of U.S. Forces Korea)’s remark that “South Korea is a dagger in the heart of Asia” should not be taken lightly. Trump seeks to avoid direct confrontation with China while using South Korea as a dagger aimed at it. If the transfer of wartime operational control is forced through, the worst-case scenario could see South Korea and China facing off.
• “A strong government should endure by holding firm where necessary and accepting where unavoidable. If mishandled, the nation’s fortune could be broken here.”
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Clash of Worldviews at the Democratic Party Convention.

• First, the clash between the core purist faction prioritizing prosecutorial reform
• and second, the ‘New Lee Jae-myung’ faction advocating expansion toward moderate conservatives.
• Kim Joon-il (Political Commentator) remarked, “The civil war has already begun,” adding, “This is a battleground to confirm whether Kim Eo-jun—the Democratic Party’s shadow leader for over a decade—can retain his influence.”
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Education Cannot Be About Finding the Right Answer.

• With machines that find the right answer emerging, education must change. Cho Pyung-wall (Professor at Korea University) argued, “The CSAT must be abolished.”
• “Curricula must shift toward developing critical thinking and creativity. Only then will humanity’s unique competitive edge be strengthened. Only then can we live while mastering AI.”
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The Violence of “Social Consensus.”.

• “The purpose of dialogue is not consensus.” Jeong Hee-jin (feminist scholar) criticized, “Social consensus is an excuse to suppress minorities and the weak,” calling it “a more insidious form of violence than ‘later.’”
• “Silencing issues that truly require social consensus and enforcement while demanding consensus on matters of survival for marginalized groups is incitement to expel ‘them’ from societal membership.”
• “There must be a reexamination of the notion that dialogue exists for social consensus. For dialogue to be productive, it must create new language to break through reality, not seek agreement.”
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One Misstep Could Topple the Government.

• This is about real estate. Jeon Seong-in (former Hongik University professor) emphasized five points.
• First, do not act hastily. Focus on the long-term, fundamental goal of normalizing real estate taxation rather than trying to immediately control housing prices.
• Second, provide an exit strategy. If holding taxes are to be increased, transaction taxes must be eased to encourage property listings.
• Third, simplify the system. “Eliminate as many terms as possible that tax experts love—like ‘heavy taxation,’ ‘deductions,’ or ‘fair pricing,’” he argued. Streamlining these convoluted deduction systems would improve public understanding and policy acceptance.
• Fourth, abandon the myth of ‘one household, one home.’ The binary view that singles homeowners are virtuous and multiple homeowners are evil must be discarded.
• “Phrases like ‘a solid single property’ didn’t emerge by accident, nor did the resolve of some to ‘prefer gifting portions of property rather than being labeled a multiple homeowner.’ These are products of hasty dichotomous thinking.”
• Fifth, design tax benefits with legitimate conditions. Jeon pointed out, “It is only fair that the government reclaims, through taxes, any profits from registered rental businesses’ property sales that exceed bank deposit interest rates.”
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