“The One to Protect the President to the End: Chung Cheong-rai.”.

• Chung Cheong-rai (Democratic Party leader) said this as he stepped down from the party leadership. “Lee Jae-myung (President) and I are a political fate community, comrades and fellow soldiers,” he emphasized.
• To run in the August 17 party convention. The next leader becomes the de facto powerbroker holding nomination rights for the 2028 general election.
• A pro-Myung lawmaker noted, “Even though the president repeatedly sent indirect messages urging him not to run, he ultimately intends to go all-in.”
• The Hankyoreh predicted, “The Myung-Cheong war will escalate.”
• Chung visited the Seoul International Book Fair and met Moon Jae-in (former president). A delicate stance. A pro-Myung lawmaker remarked, “There cannot be two captains.”
• Related Link.
• Related Link.

What Matters Now.

Kim Yong-beom’s Solution: “Just Build It.”.

• At the Kwanhun Debate, he said, “We’re running simulations hundreds of times” and “We’re scouring every possible site where we can build.”
• Kim Yong-beom (Blue House Policy Secretary) only said, “We aim to set property tax levels that are acceptable,” regarding tax hikes. “If necessary, we’ll go through public debates to decide carefully,” but ultimately, it’s a matter of making a decision.
• Even if we “just build it,” it’ll take three years—and a supply cliff has already begun. Kim Yong-beom offered no concrete answers.
• Related Link.

SK Hynix’s Nasdaq Listing: What’s the Impact?

• 29 billion USD, or 46 trillion KRW in scale. It represents 2.5% of total issued shares. ADRs (American Depositary Receipts) are securities that allow foreign stocks to be traded directly in the U.S. market. They effectively function as a U.S. listing.
• According to the Financial Times, trading is expected to begin on the 10th of next month.
• As of Q1, Samsung Electronics and SK Hynix held liquid assets of 147 trillion KRW and 54 trillion KRW, respectively.
• Yesterday, Samsung Electronics and SK Hynix rose 9.8% and 1.0%, respectively. The KOSPI surged 3.3% to close at 2,471.0.
• Analysis suggests “the Nasdaq decline was triggered in Korea.” A case of the tail wagging the dog.
• Related Link.
• Related Link.

Micron’s Revenue Quadruples.

• Micron’s stock surged in the U.S. yesterday. Revenue reached $41.4 billion, with a net profit of $28.2 billion—an earnings surprise far exceeding market expectations.
• Today, Samsung and SK Hynix shares are likely to gain momentum.
• The S&P 500, Dow, and Nasdaq indices closed at -0.10%, +0.35%, and -0.43%, respectively.
• Related Link.

Deep Dive.

Smaller Ants Get Shaken Out Easier.

• Investors with assets over 1 billion KRW had a turnover rate of 43%.
• For those with 5–20 million KRW, turnover reached 71%—the smaller the holdings, the more frequent the trading. Short-term traders are vulnerable to downward shocks.
• The Samsung Electronics+SK Hynix leveraged ETF saw daily turnover exceeding 170%.
• Related Link.

Young Rich and Young Poor.

• Money breeds money and opportunity in this society. Dust remains dust, no matter how you gather it.
• The Kyunghyang Shinmun analyzed securities accounts and found that 2030s customers with over 100 million KRW saw a 144% increase in one year.
• Compared to six months ago, customers with over 3 billion KRW saw an 85% asset increase, while those in the 100 million–1 billion KRW range saw only 57%.
• Lee Kwan-hoo (Director of the National Assembly Research Service) analyzed, “We’ve entered an era where asset gaps—not income gaps—widen the starting line of life, and this trend is especially pronounced among the 2030s generation.”
• Related Link.

Youth Employment Rate Drops to 43.8%.

• Lowest since the COVID-19 pandemic. Manufacturing jobs have shrunk, and employers increasingly favor experienced workers.
• 10.7% of those working under 36 hours per week are seeking additional employment.

Round Two of the N% Performance Bonus Debate.

• It’s a matter for labor and management to decide, but the scale was enormous. It’s likely to grow even larger next year.
• Kim Jeong-hwan (Minister of Trade, Industry and Energy) said, “Compensation for investors must be guaranteed on a different level than unions or management.” A proposal is being reviewed to require prior board review when distributing operating profits.
• Kim Yong-beom said, “Society must seriously begin discussing whether performance bonuses can even be a subject of labor disputes.”
• Related Link.

Another Take.

Chosun, JoongAng, Donga’s Argument Against a Honam Semiconductor Plant.

• They claim Honam lacks sufficient power and water supply. “It could provoke regional conflict”—a classic framing tactic to stoke division.
• Chosun Ilbo headlined its front page, “Semiconductors swayed by politics,” a title telegraphing intent to frame it as a political issue. Borrowing from Park Sung-hoon (People Power Party spokesperson), it criticized it as “the worst example of state-controlled economy.”
• Kim Yong-beom (Blue House Policy Chief) explained, “This isn’t relocating the Yongin plant but adding a new cluster,” but in an editorial, Chosun Ilbo noted, “This will pressure companies significantly.”
• JoongAng Ilbo deliberately titled, “The southern employment limit is Pyeongtaek—will semiconductor talent come to Honam?”
• The old refrain, “Renewable energy has high volatility and clear limits,” resurfaced.
• Donga Ilbo pointed out, “Electricity surpluses are inconsistent,” but Hanwha and SK’s solar power plants and energy storage systems (ESS) will follow. The claim that factories can’t run without electricity is obvious—and premature to worry about.
• “The risk of fixed-cost bombs if the semiconductor supercycle declines” is irrelevant to Honam.
• Related Link.
• Related Link.
• Related Link.

What Happens If China Starts Buying Oil with Yuan?

• Saudi Arabia began trading oil in dollars, and a significant portion of that money flowed into financial markets. The U.S. has maintained dollar supremacy for nearly 50 years because everyone is invested in dollar-based financial markets.
• 80% of international trade finance is transacted in dollars.
• But if China pays for oil in yuan? That money would simply be used to buy Chinese goods. Dollars can be parked in U.S. Treasuries, but yuan cannot. Interest rates are low, and the so-called dim sum bond market is small.
• It’s true that yuan settlements are rapidly increasing. Iran and Russia are expanding yuan transactions—to evade U.S. scrutiny and because they still need to import Chinese goods.
• The Financial Times analyzed, “The bigger story than the petro-yuan is the Sino-dollar.” Sino refers to China, but here it denotes the massive trade surpluses earned by exports from China, South Korea, and Taiwan. Like the petro-dollar, this money accumulates in dollar-based financial products. (The difference: petro-dollars are from oil sales, Sino-dollars from exports.)
• While petro-yuan may grow immediately, dollar dominance is unlikely to waver. China won’t abandon its trade surplus and will continue to accumulate assets in dollars.
• Related Link.
• Related Link.

“Your Honor, Is This the Best We Can Do?”.

• There was a case where a plaintiff lost because their lawyer failed to attend the trial. It was a lawsuit filed by the parents of a student who took their own life due to school violence against the school.
• It drew extra attention because it was handled by Kwon Kyung-ae (lawyer), who participated in the “Cho Kuk Black Book.”
• Under civil procedure law, if a party fails to appear or present arguments in court three or more times, the lawsuit is considered withdrawn. Even after losing, Kwon did not inform the bereaved family of the defeat and did not file an appeal with the Supreme Court.
• The appellate court reopened the hearing date, but the outcome remained unchanged. The court explained, “Regardless of Kwon Kyung-ae’s liability for damages, the termination of the lawsuit is a natural legal consequence.”
• Separately, the family’s constitutional appeal to the Constitutional Court was dismissed.
• Related Link.

Oh Se-hoon and Han Dong-hoon’s Center Competition.

• Oh Se-hoon (Seoul Mayor) does not attend events where Han Dong-hoon (Independent MP) is present. There were instances where Han Dong-hoon attended a debate and Oh Se-hoon abruptly canceled his schedule. Their stance is clear: they avoid being photographed together.
• Their opinions diverged over Jang Dong-hyeok’s (People Power Party Leader) resignation. Oh Se-hoon’s position is, “Is a party leader even necessary?” while Han Dong-hoon posted a video on Facebook saying, “I’ll step down later.”
• Jang Dong-hyeok has been discharged from the hospital. He stated, “The party leader’s future is a matter for party members to decide.”
• Related Link.
• Related Link.

The Fix.

Why Integrated Care Remains an Elusive Promise.

• It is the signature welfare policy of the Lee Jae-myung administration: a pledge to provide care and medical services to the elderly and disabled at home rather than in institutions.
• The issue is cost. Few medical institutions participate, and the number of patients eligible for home visits—essentially an add-on to existing duties—is minimal. Hiring social workers is mandatory, but low reimbursement rates for home visits reduce income.
• Lee Geon-se (President of the Korean Home Healthcare Association) stated, “A private clinic must see about eight patients daily via home visits to stay afloat.” He added, “In rural areas, where only 1–3 patients are available daily, losses are inevitable.”
• Seok Jae-eun (Professor at Hallym University) criticized, “Since travel distances are longer in rural areas, the government should have included distance-based reimbursement adjustments when setting rates.”

Moving Toward a Voluntary Recruitment System.

• Lee Jae-myong (President) made these remarks during a visit to a military unit on Yeonpyeong Island: “Within budgetary limits, it’s better to allow soldiers to choose between becoming professional military personnel with adequate compensation or opting for short-term conscription.”
• He posed atop a K9 self-propelled howitzer, gripping a K-6 machine gun. Chosun Ilbo and Dong-A Ilbo bundled this photo in an article titled “The Ming-Qing War.”

April Births Highest in Seven Years.

• 24,521 births, an 18% increase from the previous year. The 22-month consecutive growth trend continues.
• Expectations are rising that annual figures could surpass 300,000.

ICYMI.

Kim Eo-jun’s Favorability: A Mirror of Jeon Han-gil’s.

• In a SisaIN poll, Kim Eo-jun (CEO of Ddanzi Ilbo) scored 19 points in favorability—similar to Jeon Han-gil (operator of Jeon Han-gil TV), who received 18.
• 50% of Democratic Party supporters responded “strongly negative” toward Kim Eo-jun. “Slightly positive” and “strongly positive” were 11% and 8%, respectively.
• On yesterday’s broadcast, Kim Eo-jun warned, “This is the first crisis since the Lee Jae-myung administration began,” adding, “If this continues for just one or two more weeks, support bases will shake violently.”
• Related Link.
• Related Link.

Why Nvidia Chips Sell for Double in China.

• Nvidia DGX B300 has risen from 4 million yuan to 8 million yuan in six months. It’s a server with eight Blackwell GPUs. In the U.S., it costs $400,000—yet in China, it sells for around $1.1 million at current exchange rates.
• The Nvidia RTX 6000 Pro workstation chip has jumped from 50,000 yuan to 130,000 yuan. All are products banned from export to China.
• In March, a U.S. gang smuggling $250 million worth of Nvidia servers was caught. The Chinese government also prohibits Nvidia imports. Though Trump belatedly approved H200 exports, Beijing’s strategy is to grow Huawei as a substitute for Nvidia.
• The Financial Times noted, “It’s questionable whether enforcement is effective.” Prices keep rising, and black-market trade thrives. GPU rental fees in China are now equal to or higher than in the U.S.
• Related Link.

Trump-Shuttered NOAA Website Revived.

• Former NOAA (National Oceanic and Atmospheric Administration) employees succeeded in restoring it.
• climate.gov has returned as climate.us.
• Rebecca Lindsey (Climate.gov Director) described it as “a complete replica.” They raised $280,000 through crowdfunding to recover over 1,000 reports and articles.
• Related Link.
• Related Link.

Dongtan’s Future Lies in Taiwan’s Hsinchu.

• Zhubei (竹北), Hsinchu, Taiwan—home to TSMC—is a high-tech city 75 km from Taipei. What was once barren land is now the wealthiest city in Taiwan.
• Housing prices have doubled in a decade, and households near TSMC earn nearly $150,000—five times Taiwan’s average. Like Korea’s “Dongtan moms,” the term “Jubei mama” emerged for stay-at-home wives whose husbands work in semiconductors.
• While Taiwan’s birthrate declines, this region’s has risen—so much that overcrowded classrooms are a problem.
• The Big City shopping mall earned over $100 million in 12 days during last Christmas.
• During bonus season, people flock to real estate agents with stacks of cash, lamenting, “I don’t know what to do with the money,” according to a New York Times report.
• Though the city exceeds 1 million residents, inequality is stark. Those outside the semiconductor industry are priced out by housing and living costs.
• Related Link.

Autonomous Driving Effect? Highway Fatalities Surge 52%.

• Speculation arises that excessive reliance on adaptive cruise control (ACC) may be to blame.
• From January to May this year, 96 highway fatalities occurred—last year’s figure was 63.

Gwangju, Muan, and Suncheon.

• Conflict escalates over whether the Jeonnam-Gwangju Integrated City Hall should be in Muan or Suncheon.
• The original Jeonnam Provincial Government was in Muan, with an eastern branch in Suncheon.
• Min Hyung-bae (Jeonnam-Gwangju Mayor-elect) insists, “We will operate the three offices in balance.”
• The transition committee also proposes establishing a strategic office in Naju.

Why Kim Jong-un Is Surrounded by Women.

• Kim Jong-un (North Korean State Affairs Commissioner)’s daughter has appeared 49 times from 2022 to 2025. Estimated to be around 13 years old, she is already exuding successor aura.
• The Financial Times analyzed this as preemptive succession work to prevent a power vacuum.
• All prominent figures around Kim Jong-un are women. Victor Cha (CSIS Senior Advisor) analyzed, “If there had been a young man in this group, everyone’s attention would have focused on him—but because they are all women, people might feel relieved that no one would perceive them as a threat.”
• Related Link.

Gold Breaks Below $4,000.

• It peaked at $5,594 per ounce in January and has been falling ever since. Yesterday, it dropped to $3,992—28% below its high.
• The US is likely to raise benchmark interest rates, and the dollar’s strength persists.

Worth Reading.

No Heroes Needed to Save Broken Classrooms.

• This is in response to Ahn Min-seok (Gyeonggi Province Superintendent-elect)’s announcement to create a “Teachers’ Rights Protection Bureau” by deploying special forces veterans as teachers.
• Lee Joo-young (Kyunghyang Shinmun Head of Planning & Content) emphasized, “Strengthening teachers’ rights and guaranteeing student human rights are compatible values.”
• “We hope educational authorities will seriously discuss what must be done to create an environment where students can live in safe classrooms, teachers are protected, and parents can trust schools.”
• Han Sung-hee (Seoul National University Professor) pointed out, “The drama ‘True Education’ is a dramatic fantasy.”
• “Rather than dividing the world into good and evil, perpetrators and victims, we should consider how to build a new educational system on the achievements of the present,” he argued.
• Related Link.
• Related Link.

Approval Ratings Are Like a Glider.

• They can stay aloft for a while, but eventually, they fall.
• Choi Moon-seon (The Korea Herald Columnist) observed, “Lee Jae-myung (President)’s apology has not moved beyond the apology stage.”
• Even as approval ratings plummet, he insists, “Governance remains unchanged” while shifting blame to the Democratic Party.
• “Either he fails to recognize the drop in approval, or his refusal to step back from party leadership contests and his failure to halt the special prosecution’s indictment cancellation cannot be explained.”
• Related Link.

No Joy or Despair Lasts Long.

• This is about the optical illusion of winner-takes-all voting systems.
• In the 2017 presidential election, Moon Jae-in (President) + Sim Sang-jung (Justice Party Leader) received 47.3% of the vote, less than Hong Joon-pyo (Liberty Korea Party Candidate) + Ahn Cheol-soo (People’s Party Candidate) + Yoo Seung-min (Barun Party Candidate)’s 52.2%.
• In the 2022 election, Lee Jae-myung (President) + Sim Sang-jung received 50.4%, while Yoon Suk-yeol (President) received 49.5%.
• In the 2024 election, Lee Jae-myung + Kwon Young-guk (Democratic Party Candidate) received 50.4%, while Kim Moon-soo (People Power Party Candidate) + Lee Jun-seok (People Power Party Leader) received 49.5%.
• Kwon Tae-ho (Hankyoreh Editor) noted, “In politics, approval ratings are like the KOSPI—higher they are, the more volatile and dangerous.”
• The situation is not relaxed enough to focus on the Ming-Qing Wars.
• Related Link.