“This Is Not About Handing Out Gifts.”.

• “We must not approach this divisively.”
• Lee Jae-myung (President) visited Chungnam this time alongside Lee Jae-yong (Samsung Electronics Chairman). He stated, “Samsung’s dream has taken root, grown, and borne fruit in Chungcheong.”
• “In today’s world, where would companies relocate simply because of pressure?” he remarked, criticizing the notion that “believing coercion can achieve this through outdated bureaucratic practices is itself an outdated mindset.”
• Samsung and SK are investing 140 trillion won and 100 trillion won in the Chungcheong region, respectively.
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“Phase-Out of Nuclear Power, This Is Not It.”.

• Kim Sung-hwan (Minister of Climate and Energy Environment) said this. There is energy, but no climate. Appearing on SBS, he stated, “We should consider building new nuclear plants,” adding, “Phase-out of nuclear power, this is not it.”
• The JoongAng Ilbo criticized in an editorial, “It’s hard to understand how the government can urge companies to rush into large-scale investments fraught with risk while taking an abstract, vague stance on building the core infrastructure it should be responsible for.”
• The Chosun Ilbo pointed out in an editorial, “Even if a decision is made immediately, power production won’t be possible until the mid-2030s.” The message is clear: speed is essential.
• Related Link.
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June Prices Rise 3.2%.

• Blame rising international oil prices. Han Seong-sook (Prime Minister) said, “We must prioritize price control.”
• Lee Hyeong-il (Vice Minister of Economy and Finance) stated, “Without the oil price ceiling, inflation would have reached 3.6%.”
• Egg prices surged 10.3%, while zucchini jumped 37.1%. “Zucchini prices doubled overnight,” goes the saying.
• While stabilized oil prices could ease inflation, some analysts warn that “chipflation” might keep prices elevated.
• Related Link.
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What Matters Now.

Meta Shock Sends Samsung and SK Hynix Plunging.

• Yesterday, the Kospi closed at 7648.1, down 7.9%. Samsung Electronics and SK Hynix fell 9.1% and 14.6%, respectively.
• Panic erupted after news that Meta is considering a cloud infrastructure business to sell surplus computing resources from its AI data centers to external clients—the so-called Meta Compute Project. Mark Zuckerberg (Meta CEO) once said, “If we’ve overbuilt AI infrastructure, selling it is an option we have.”
• First, there were concerns that supply might exceed demand.
• Second, reduced investment by hyperscalers could significantly lower memory demand.
• Jo Ain (Samsung Securities analyst) said, “Memory semiconductors are still in a situation where supply cannot keep up with demand.” The worry about reduced investment is overblown.
• Yesterday, the S&P 500, Dow, and Nasdaq indices fell 0.00%, 1.14%, and -0.80%, respectively. The Philadelphia Semiconductor Index dropped another 5.45% yesterday, following a 6.3% decline the day before. Intel and Micron also fell 5.3% and 5.9%, respectively.
• Related Link.
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How Can You Support the People Power Party?

• In a Realmeter poll, support rates for the Democratic Party and the People Power Party stand at 42.0% and 41.0%, respectively.
• Among those in their 20s, the Democratic Party’s support rate has dropped to 23.3%, while the People Power Party’s is 53.6%.
• In the National Barometer Survey (NBS), the overall average support rates for the Democratic Party and the People Power Party are 42% and 20%, respectively. However, among those aged 20 and below, the figures are 28% and 18%.
• At a recent forum titled “Why Don’t 20–30-Year-Olds Support the Democratic Party?”, criticism poured in: “They are hypocritical forces who climbed the ladder of social mobility and then kicked it away.” Bong Un-woo (Democratic Party National University Student Committee Chair) pointed out, “Even during the Cho Kuk scandal and the insurrection, the Democratic Party only repeated the question, ‘How can you support the People Power Party?’”
• Han Jeong-ae (Democratic Party Policy Committee Chair) noted, “The Democratic Party seems to still deny its status as an entrenched power, despite already being one.”
• Yoon Hee-woong (CEO of Opinions) observed, “The old formula—2030s progressive, 40s centrist, 5060s conservative—no longer holds. This is not a temporary shift.”
• Lee Jae-myung (President) instructed at a senior advisors’ meeting, “Efficiently utilize additional tax revenue to secure stable investment funds for future generations.”
• Related Link.
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“Our Train Runs on Time.”.

• Seo Young-kyo (Judiciary Committee Chair) insists on pushing through 100 bills, including the abolition of prosecutors’ supplementary investigative authority.
• Jeong Jeom-sik (People Power Party floor leader) said, “We have concluded that we cannot cooperate with the assembly’s formation in this state.” They also refuse all seven standing committee chair positions left by the Democratic Party.
• The People Power Party is in disarray. A party official met by Kyunghyang Shinmun said, “Some argued that refusing everything would make things harder for us,” yet “the conclusion was that we must fight harder.”
• A senior lawmaker met by JoongAng Ilbo remarked, “The backlash against the opposition party hindering public livelihoods could grow,” adding, “The lack of a clear exit strategy over time is also a problem.”
• Related Link.
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Deep Dive.

The Democratic Party’s Dissenting Views.

• The party is divided over abolishing prosecutors’ supplementary investigative authority. President Lee Jae-myung (President) once issued a guideline suggesting it might be exceptionally necessary. Though he deferred the decision to the National Assembly, tensions simmer between pro-Lee factions and hardliners.
• Kim Young-jin (Democratic Party lawmaker) said, “It’s inappropriate to set an arbitrary deadline and rush through this.”
• In a group chat among lawmakers, one suggested, “Let’s conditionally allow supplementary investigative authority only for cases referred by police with prosecution recommendations.” Another pointed out, “We need to discuss how to handle cases with high risks of evidence destruction or those nearing statute of limitations.”
• Related Link.

Raise Property Taxes, OECD Advises.

• South Korea’s real estate tax-to-GDP ratio is 3.0%—double the OECD average of 1.6%.
• The share of recurrent property taxes in total real estate tax revenue is 29.4%. The OECD average is 56.0%.
• “A revenue-neutral shift is needed: reducing transaction taxes and increasing recurrent property taxes,” the report advises.
• South Korea’s VAT rate is 10%, while the OECD average is 19.3%. Analysis suggests broadening the tax base by narrowing simplified taxation and duty-free thresholds for low-value imports.
• In an editorial, Kyunghyang Shinmun emphasized, “Strengthening recurrent property taxes aligns with the global trend of reducing asset inequality and improving housing market efficiency.” It added, “Safeguards like tax deferrals for elderly single-homeowners without fixed income and rental protections against tenant cost-shifting must accompany this.”
• The recommendations appear in the OECD’s biennial member report. It also advises raising the national pension eligibility age to 68.
• Related Link.
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Sealed Ballot Boxes: 380 Units.

• Lawmakers from the National Assembly’s special committee on the ballot shortage crisis visited the Olympic Park counting station. Protesters blocked the entrance, but police broke through. In a basement office—with no CCTV—380 sealed ballot boxes and 2.47 million ballots were stored.
• Kim Yong-man (Democratic Party lawmaker) insisted, “They must be moved to a safe location as soon as possible.” Joo Jin-woo (People Power Party lawmaker) countered, “Moving them recklessly before an investigation could spark greater misunderstanding.”
• In the National Barometer Survey (NBS), 42% responded, “I believe election fraud occurred.”
• Jang Seung-jin (Kookmin University professor) interpreted this as “reflecting distrust in the election system and its management.” Yoo Jae-seong (acting police chief) stated, “Societal consensus is needed on how to move the ballot boxes.”
• After the committee members left, the stadium was once again surrounded by protesters.
• Related Link.
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Another Take.

Reading as a National Duty.

• Amendments to the Framework Act on Education explicitly designate improving literacy through reading education as a responsibility of the state and local governments.
• Funding will support initiatives like 10-minute daily morning reading sessions. South Korean adolescents read an average of 31.5 books last year—critics argue literacy rates have significantly declined.
• During vacations, students can borrow five free e-books monthly. Reading records entered on the “Dokseoro” platform will be automatically added to school transcripts.
• Schools with libraries increased from 80.4% in 2002 to 98.4% in 2024, while books per student rose from 5.5 to 37.8. However, librarian staffing rates remain at 16.5%. The Education Ministry aims to raise this to 30% by 2030.
• An Education Ministry official explained, “Schools should create opportunities for all students to engage with books.” The U.S. Common Core State Standards (CCSS) similarly mandates reading as a shared responsibility of all teachers.
• The Citizens’ Group for a Society Without Academic Bias warned, “Unilaterally implementing specific evaluation methods without sufficient preparation or consensus could cause chaos.”
• Related Link.
• Related Link.

OpenAI Proposes 5% Stake to U.S. Government.

• Sam Altman (OpenAI CEO) proposed transferring a 5% stake in OpenAI to the U.S. government, according to the Financial Times. The move is seen as an attempt to mitigate political risks, the outlet analyzed.
• The $852 billion-valued company reportedly discussed offering the stake to the Trump administration to clear political hurdles.
• The U.S. government is increasingly tightening AI regulations, such as proposing to restrict Anthropic’s Claude 5 exports.
• According to the Financial Times, Altman suggested allocating OpenAI shares to entities like the “Alaska Permanent Fund,” which invests oil revenues in equities and distributes dividends to residents.
• The proposal aligns with Sen. Bernie Sanders (Democratic Senator) calling for the government to secure 50% stakes in big tech firms and Donald Trump (U.S. President) endorsing it as a “good idea.” Altman also floated the concept of a Public Wealth Fund.
• While OpenAI, Anthropic, Google, and Meta are mentioned, their agreement remains uncertain. OpenAI declined to comment, and the White House did not respond.
• Related Link.

“Citizens Must Set the Rules.”.

• Sam Altman (OpenAI CEO) in a Financial Times op-ed.
• Proposed an international forum to determine AI safety standards, akin to the International Atomic Energy Agency (IAEA).
• Sam Altman believes a transformation surpassing the invention of electricity in reshaping human material conditions will occur within 1–2 years.
• “Responsibility shouldn’t be outsourced to AI companies. Corporations create technology, but rules must be set by citizens and their elected representatives,” he stressed.
• Related Link.

Why Yeongwol Sangdong Mine Is America’s Hope.

• Rare earths are America’s Achilles’ heel. If China halts exports, almost everything grinds to a halt. The same applies to tungsten. With 85% of tungsten supply under its control, Beijing manipulates prices.
• Sangdong Mine in Yeongwol, Gangwon Province, is owned by U.S. company Almonty. Its reserves—58 million tons—could cover 40% of global demand outside of China.
• South Korea was once a tungsten powerhouse. At its peak, tungsten accounted for 70% of exports, but mines closed in the 1990s under pressure from cheaper Chinese imports. Now, as the U.S.-China rare earth war escalates, Korea has reemerged as a viable alternative.
• Sangdong’s predecessor was Daehan Tungsten. It co-funded POSCO with the South Korean government. Daehan Tungsten was sold to Geopyeong in 1994, then to Almonty during the IMF crisis. The company is now Almonty Daehan Tungsten.
• Almonty raised $90 million via a Nasdaq listing last year and restarted Sangdong Mine after 32 years. With tungsten prices soaring, some analysts value the mine at over 50 trillion won.
• Related Link.

The Fix.

90% of Supply Is Apartments—Where Are the Mid-Sized Homes?

• “Just build more” is fine, but the urgent need is for affordable housing.
• Byeon Chang-heum (Sejong University professor) pointed out, “Homes priced between 300 million and 500 million won are not being supplied at all.”
• After redevelopment or reconstruction, the rate of original residents remaining is only 28%. For a 79㎡ unit in Shinbanpo 16th Phase, the contribution fee alone is 1.4 billion won.
• Kim Seung-bae (director of the Korea Real Estate Development Industry Research Institute) said, “The housing ecosystem only has the ‘bullfrog’ of apartments,” adding, “The rental market will stabilize only if non-apartment supply is restored to 2018 levels.”
• Chae Sang-wook (CEO of Connected Ground) emphasized, “We need supply measures with the sincerity of the three mega-projects.”
• Choi Kyung-ho (director of Sucho Jakju) argued, “Various methods such as remodeling, utilizing vacant spaces, and urban residential housing should be pursued simultaneously.”
• Related Link.

Festered to the Core: Two Problems and Two Solutions for Credit Unions.

• First, they face a solvency crisis due to massive deficits and skyrocketing delinquency rates. Focusing on non-member loans and real estate loans led to a sharp rise in delinquencies, particularly from bad real estate project financing.
• Second, revolving-door appointments have crippled internal oversight. When executives hit term limits, they create new advisory roles to collect high salaries before returning as chairpersons or executives. The board has become a rubber stamp. Since regional credit union chairpersons (delegates) approve the central federation’s supervisory directors, those directors hesitate to exercise authority for fear of displeasing them.
• A proposed revision to the Credit Union Act by Shin Jang-sik (lawmaker, People’s Party for Reform) includes two solutions.
• First, grant members corporate-law rights such as the power to demand executive dismissal and file derivative lawsuits.
• Second, give supervisory directors independent authority and a say in personnel decisions for relevant staff.
• Shin Jang-sik criticized, “A monarchic governance structure has collapsed internal controls at credit unions,” adding, “The core issue is that people and power never change.”
• Lee Dong-gu (chairman, National Office Workers’ Union) said, “If even one person who can check management enters the board and proposes motions, it can be stopped.”
• Shin Jang-sik emphasized, “This is the minimum safeguard for credit unions to stand again as trusted financial institutions.”
• Related Link.

Which Country Invests Most in Fossil Fuel Power Generation?

• Not China—but the U.S. This year’s investments stand at $47 billion and $50 billion respectively.
• The surge in AI data centers is driving explosive electricity demand.
• According to the Financial Times, a single AI data center consumes as much power as a medium-sized city.
• In Q1 this year, U.S. companies purchased 20 GW of power-generation gas turbines—likely for behind-the-meter self-generation bypassing the grid. GE Vernova’s Q1 order backlog reached $18 billion.
• Gas turbine prices have soared from $800 to over $2,500 per kW. They stabilize grids by complementing intermittent renewables like solar and wind.
• U.S. coal consumption also rose 10% last year.
• China’s solar capacity reached 1.2 TW by late last year—half of global installations.
• Globally, fossil fuels still account for over four-fifths of energy supply. Carbon emissions rose 1.1% last year.
• Related Link.

ICYMI.

“You’re Just Gonna Write a Slanderous Article. No Interview.”.

• Kim Eo-jun (CEO of Ddanzi Ilbo) opened a restaurant in Paris, France. A Chosun Ilbo reporter visited on the opening day.
• The review was stingy. The steak was a familiar Korean-style marinated steak, plated in a Korean manner, making it awkward to cut with a knife. The radish salad rice was unremarkable, and dessert arrived late.
• The restaurant is named “Vendredi Gourmand (Friday Gourmet).” It’s so crowded that walk-ins rarely find seats.
• Related Link.

Postage Rate: 500 Won.

• It was 430 won until last month, but rose by 70 won this month to reach 500 won.
• Mail volume has dropped from 4 billion items in the 1990s to 2.4 billion last year, with over 99% being notices or bills from government agencies and financial institutions.
• Last year, postal services ran a 300 billion won deficit, but the postal savings and insurance divisions generated over 1 trillion won in profit, turning the overall operation black.

Last Year’s Palace Visitors: 15.03 Million.

• Visitors increased from 13.12 million to 15.03 million, but admission revenue fell from 11.6 billion won to 11.4 billion won.
• Free admissions rose from 63% to 69%. Palaces are free on the last Wednesday of each month, and last year, no fees were charged during the Korea Grand Festival. Tourists in hanbok are also exempt from admission fees.

Worth Reading.

Rainfed Semiconductors: Look to Taiwan.

• In 2021, during a severe drought, they had to survive by implementing a five-day water supply and two-day cutoff measure.
• What about the Honam semiconductor cluster? The watershed areas of the Yeongsan and Seomjin Rivers are only 13–18% the size of the Han River’s. In 2022, there were 281 days of drought, with reservoir levels dropping to the 10% range.
• The Ministry of Climate, Energy, and Environment claims it can produce 200,000 tons per day here. While they assert that expanding the Dongbok Dam and drawing 210,000 tons from Naju Lake could enable up to 1.07 million tons daily, there is no drought contingency plan.
• Park Sang-hyun (Chosun Ilbo reporter) emphasized, “To avoid criticism as ‘rainfed semiconductors,’ they must first establish sophisticated water management infrastructure capable of withstanding droughts.”
• Related Link.

Is Supplemental Investigative Authority the Whole Story?

• Kim Ye-won (lawyer at the Disability Rights Law Center) disagrees. “Leaving it in place doesn’t solve all problems, and removing it doesn’t complete reform. Yet politicians are clinging to this issue as if it were the only one.”
• What happens if prosecutors cannot request supplemental investigations when police conduct shoddy ones?
• Kim Ye-won stressed, “It’s time to move beyond the idea that eliminating supplemental investigative authority alone will complete reform.”
• “The success or failure of reform doesn’t hinge on whether one authority is removed. It depends on whether cases are buried or delayed, and whether responsibility is clearly assigned when mistakes occur. If prosecutors’ supplemental authority is truly to be abolished, we must coldly assess how this would tip the balance of criminal procedures.”
• Related Link.

Hong Myung-bo’s Worst Interview.

• “I abandoned myself. I no longer exist. There is only Korean football.”
• When appointed as national team coach, he made this out-of-left-field remark, drawing criticism for excessive self-awareness. Abandoned what? It wasn’t what the public wanted to hear.
• After a crushing defeat in the World Cup group stage finale, he said, “There were absolutely no issues within the squad,” adding, “I’m highly sensitive to such matters and prepare with utmost thoroughness.”
• Questions lingered: Why was Son Heung-min (player) benched? Why didn’t players give their all? Why did the coach sit idle while losing? But he only offered irrelevant remarks. “There’s never been a tournament this chaotic,” he said, “and if outsiders perceive it that way, perhaps we should investigate.”
• He was the worst national team coach—his dissociative rhetoric and lack of empathy were glaring.
• Related Link.

Six Months Should Not Be the End.

• Kim Yang-hee (Hankyoreh reporter) emphasized, “Responsibility must be clearly assigned, but on that foundation, one can teach anew—that is the role of education.”
• “May the six months of Baejai High’s baseball team’s suspension not be merely punitive, but a time to relearn why respecting opponents is essential. That would be the most valuable legacy of this incident.”
• Related Link.

Gwangju Must Prove Its Capabilities.

• “How will Gwangju, set to receive hundreds of trillions in investment, break through the southern limit line?” Park Su-ryeon (Central Daily Deputy Head of Contents Bureau) noted, “The success or failure of investment may hinge on attracting talent.”
• State-led industrial policies are inherently political, but now is the time for Gwangju to demonstrate its potential through its own capabilities. “Jobs must come first—people will follow, and only then can high-value service industries develop, creating a livable environment that attracts more residents.” Park Su-ryeon emphasized, “Whether this Möbius strip becomes a virtuous or vicious cycle depends on local government.”
• Related Link.

The Shock of the 4,755 Trillion Won Project.

• Kim Hyun-woo (Director of the “Degrowth and Alternatives Research Institute”) was reportedly shocked that not a single word was mentioned about climate.
• To achieve the national greenhouse gas reduction target (NDC), over 20 million tons of greenhouse gas emissions must be cut annually.
• Yet, if the three mega-projects unveiled this time go into operation, they will add roughly 20 million tons of emissions.
• “Some might say, ‘People need to eat—can’t climate wait?’ That statement itself needs fact-checking, but at the very least, the president and responsible ministers should not lead by example in such an attitude. Why would any business or citizen bother with the hassle and cost of reducing emissions?”
• Related Link.

A Child Collapsed on the Subway.

• Lee Bong-hyun (Research Fellow at the Hankyoreh Economic and Social Research Institute), who had just returned from France, witnessed the scene firsthand. It could have been heatstroke.
• Hotels in Paris without air conditioning spewed out wind like hairdryers. France’s air conditioning penetration rate is less than 20%. Many restaurants, public transports, and hospitals lack cooling systems.
• Marine Le Pen (National Rally Leader) said, “If I take power, I will massively install cooling facilities starting with vulnerable communities.”
• Jean-Luc Mélenchon (’Unbowed France’ Leader) countered, “Air conditioning should not be installed everywhere—it only exacerbates the damage.”
• Lee Bong-hyun pointed out, “Without balancing mitigation and adaptation, the ‘backlash’ of populism could blow.”
• What about Korea? Its air conditioning penetration rate is 99%. Yet, in the ’Climate Change Performance Index’ (CCPI) ranking, it placed 63rd out of 67 countries.
• Related Link.