Slow Letter is
a curated snapshot of Korea.

We go beyond the headlines, connect the dots, and show you what really matters — with insight and edge. We surface the stories behind the noise and bring the context you didn’t know you needed. It’s not just about what’s happening. It’s about why it matters.

This English edition combines AI-powered translation with careful human editing — using Upstage Solar-Pro-2 — and it’s still in beta mode.We’re learning as we go, and your feedback is invaluable.

A Real Estate Debate That Exceeded Three Hours.

It was said that securing a speaking slot was harder than winning a housing lottery. Lee Jae-myung (President) pointed to speakers. A total of 28 people spoke.
Ko Jong-wan (Director of the Korea Asset Management Research Institute) warned, “Monthly rents, jeonse deposits, and sale prices are all rising—a triple surge,” adding, “The insanity of housing prices could return.”
The problem wasn’t unknown. The broad framework—strengthening property taxes, easing transaction taxes, expanding supply, and protecting youth—was established, but the devil lies in the details, and political resolve is required.
A remark caught attention: “Expensive homes should be respected. In the industrialization process, some became wealthy through sheer hard work, but many also did so through corruption or abnormal channels. Society has normalized. Rather than shunning the wealthy who pay high taxes in expensive homes, they should be respected.”
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What Matters Now.

At What Price Does an Apartment Become Ultra-Luxury?

“I moved to this area in 2005, bought a 500 million won house in 2010, and it’s still worth 500 million won. I have no complaints. But when I see people who don’t even live in Seoul making astronomical unearned profits from buying property there, I start to think I should leave too.”
As of June, the average Seoul apartment sale price was 1.58311 billion won. Jeong Se-eun (Chungnam National University Professor) called such apartments “Picasso-level luxury homes,” adding, “It’s misguided for policies to overreact as if the country’s real estate issues stem from a shortage of these properties.”
Jeong Se-eun: “Focus on supply and demand for the bottom 50%—non-homeowners—and houses around the national average of 500 million won.”
Lee Jae-myung: “What do you consider a reasonable threshold?”
Jeong Se-eun: “Up to twice the national average.”
Lee Jae-myung: “For properties over 1 billion won, what tax rate?”
Jeong Se-eun: “An effective rate of about 1%.”
Lee Jae-myung: “Start progressive taxation at 1% for properties over 1 billion won. Understood.”

“Property Tax Hikes Are Right, but Triple Them and Risk Riots.”.

Lee Jae-myung (President) said, “I broadly agree with strengthening property taxes,” but added, “To reach developed-nation levels, taxes would need to triple—sparking near-riot conditions.” He emphasized, “Prices wouldn’t have risen this much if we’d normalized taxes earlier,” yet stressed, “Even at political cost, preparations are necessary.”
“It’s not about forcing prices down, but preventing mispricing from abnormal supply-demand. Viewing real estate as the only path to wealth—risking one’s life to buy a home—is the real issue.”
He cited jeonse loans as a driver of skyrocketing prices: “They stabilize housing for the vulnerable but also fuel price surges. Adjustments are overdue.”
He proposed replacing ‘primary residence’ with ‘residential use’—acknowledging homes temporarily vacant due to work or education as still qualifying.
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A Burst Waiting to Happen.

“If you live in a home for 10 years and gain a 1 billion won capital gain, the effective capital gains tax rate is just 1%. Yet if you earn 1 billion won in wage income over 10 years, the income tax rate is 25%.”
Nam Gi-up (Director of Land+Freedom Research Institute) argued, “Property taxes are unpopular but a bitter pill that’s good for the body.”
Lee Jae-myung said, “It’s not immediate, but my dream is to someday be in that tax bracket—so raising taxes there expands resistance.”
Still, he summarized, “If everyone thinks, ‘Buying a home guarantees profit, even on loan,’ and rushes in, a crisis will eventually erupt. The goal is to prevent that.”

Easing Transaction Taxes Will Unlock Listings.

Yang Ji-young (Shinhan Investment Corp. Research Analyst) said, “The government must first clarify whether its policy goal is market stability, falling prices, or regulating multiple homeowners,” adding, “If the goal is falling prices, inventory must accumulate—but tax hikes only suppress listings.”
He noted that listings surged and prices adjusted in 2020, when capital gains tax surcharges for multiple homeowners were temporarily suspended.
Jeong Ji-sim (Solar Real Estate Agency CEO) argued, “Regulations on capital gains taxes for multiple homeowners should be eased to provide an exit,” while Ahn Dong-seong (Jeju City Real Estate Agency CEO) insisted, “Transaction taxes must be eased to unlock listings.”
Kim In-man (Real Estate Economics Institute Director) warned, “Taxing multiple homeowners harshly ultimately hits tenants.”
Ahn Jang-won (JoongAng Ilbo Reporter) proposed, “A new top tax bracket for capital gains—whether 1.5 billion or 2 billion won—should be created,” adding, “Deducting property taxes from taxable gains makes sense.” Lee Jae-myung responded, “It has merit.”

Private Rental Housing Is Missing.

“There is no information at all about how many private rental units will be built, where they will be located, or what type they will be.”
Chae Sang-wook (CEO of Connected Ground) criticized the Lee Jae-myung government’s supply policy for lacking private rental housing.
Lee Jae-myung retorted, “If you have a site, why rent when you can sell? The real issue is the lack of new development sites.”
Chae Sang-wook countered, “There are many non-residential and underutilized sites,” adding, “Their use can be rezoned.”
Cho Kang-tae (CEO of MGRV) said, “If private rental housing is supported separately from speculative developers, construction could start on at least 20,000 units within three years.”

Repurposing Vacant Knowledge Industry Centers for Residential Use.

Cho Il-jin (CEO of Urban Story) proposed, “Convert vacant knowledge industry centers and commercial offices—empty due to oversupply and economic slowdown—into housing for young people and newlyweds.”
When told “Speed is needed,” Lee Jae-myung said, “I’ll do it fast—I’m known for being quick.”

Is Redevelopment That Displaces Original Residents the Right Approach?

Only 27% of original residents return to redeveloped areas.
Kim Jong-gyu (Amadeus Korea Director) argued, “The system must be corrected to stop demolishing homes that could still be used.”
Lee Jae-myung added, “There’s an aspect where household numbers actually decrease.”
Lee Kwang-su (Gwangsu’s Real Estate Agency CEO) insisted, “Seoul’s reconstruction and redevelopment should be limited to 20,000 households annually.”
Jeong Hae-gwon (Pressroom CEO) pointed out, “Construction costs rise because material prices are inflated.” Lee Jae-myung responded, “We’ll conduct a full review.”

Young People Start From Different Starting Lines.

“A young person with parents’ home in Seoul and one who moved up from the provinces have different starting lines.” Lee Ji-woo (Kongju University student) proposed, “Revenue from recouping unearned income should be invested in provincial infrastructure and national universities.”
Lee Jae-myung said, “I suddenly felt like clapping,” adding, “We’ve decided to concentrate semiconductor surplus tax revenue on provincial and youth education investments.”
8.2% of young households live in substandard housing like “hell accommodations” (basements, rooftop rooms, and cram school dorms). Park Sun-young (Dongguk University professor) emphasized, “Young people should be the top priority for financial support policies.”

Deep Dive.

Did the Election Commission Manipulate Voter Turnout?

The joint police-prosecution investigation team raided the National Election Commission.
A NEC official was found to have falsified and concealed voter turnout data. Messenger records obtained by the team revealed that when a subordinate reported, “I think the vote count was entered incorrectly,” a central NEC official responded, “As long as the total sum is correct.”
Mistakes can happen, but the process of handling them is the issue. A Democratic Party member said, “We could have dismissed election fraud as a conspiracy theory, but that’s no longer possible.”
A People Power Party official met by JoongAng Ilbo said, “After the ballot shortage crisis, young people massively turned against the government and ruling party—this incident is another turning point.”
In an editorial, Chosun Ilbo criticized, “Attempts to cover up small mistakes are eroding trust in the entire election management system.”
JoongAng Ilbo condemned, “Manipulating data is a crime of a different dimension than the ballot shortage.”
In its editorial, Kyunghyang Shinmun noted, “This goes beyond mere dereliction of duty and could be seen as an organized criminal act,” while adding, “It’s unwise to exploit this issue as a pretext to reignite election fraud theories and incite chaos.”
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Kim Min-seok and Song Young-gil.

In the Democratic Party’s primary for the leadership election, Go Min-jung (Democratic Party lawmaker) and Kim Bo-mi (former Kangjin County Council chair) were eliminated.
Three pro-Cheong faction members—Lee Sung-yoon, Han Min-su, and Choi Min-hee—advanced to the final round, along with five pro-Myung faction members: Park Seon-won, Kim Yong, Seo Mi-hwa, Kim Young-ho, and Im Mi-ae.

Polls and Reverse-Selection Controversy.

Media Tomato’s poll showed Jeong Cheong-rae at 33.7%, Kim Min-seok at 22.0%, and Song Young-gil at 11.7%. Among Democratic Party supporters only, Jeong Cheong-rae and Kim Min-seok were tied within the margin of error at 39.4% and 37.5% respectively (±3.0 percentage points).
Jeong Cheong-rae claimed, “We overtook in the Honam region,” adding, “Party sentiment (member votes) defeats assemblyman sentiment (lawmaker votes).”
Chae Hyun-il (Democratic Party lawmaker) criticized, “Packaging reverse-selection by non-party supporters as if it reflects Democratic Party members’ will distorts party sentiment and insults party members.”
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Another Take.

Semiconductor-Driven 0.6% Real Growth in Q2.

Surprise growth led by semiconductors.
0.6% compared to the previous quarter, 3.7% year-on-year. The Bank of Korea’s May forecast was 0.2% and 3.0% respectively—both exceeded.
Real gross domestic income (GDI) rose 15.6% year-on-year, 3.6% from the previous quarter. (Real GDI reflects the purchasing power of income earned through production.)
Projections suggest that if the second-half growth rate exceeds -0.1%, South Korea could achieve over 3% annual growth for the first time in five years.
While most analysts expected the Bank of Korea to raise rates again next month, variables abound. However, Son Byung-ki (Barclays economist) said, “The glass is half-full.” More observation is needed.
Lee Dong-won (Bank of Korea Director of Economic Statistics) analogized, “If 100 units of a $100 product were exported in the past, generating $10,000 in income, now 100 units of the same product are exported for $200 each, doubling income.”
The won-dollar exchange rate fell 13.3 won (won appreciated) to 1,466.8.
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600,000 Graduates Unemployed for Over a Year.

The proportion of young people who have held at least one job after graduation is 84.8%—down 1.6 percentage points from 86.4% a year ago. The lowest level since statistics began in 2004 (91.9%).
Among the unemployed, the rate of those unable to find work for over a year is 48.6%—the highest since 2009 (51.7%).
Of the 600,000 preparing for employment, 22.1% are civil service exam candidates (“gongsi-saeng”).

KOSPI Reclaims 7,000 Mark.

Alphabet (Google) earnings did the heavy lifting. Q2 operating profit hit $40.8 billion, up 30% year-on-year. Cloud revenue alone surged 82%.
KOSPI rose 4.4% to 7,096.9.
U.S. markets struggled again yesterday. S&P 500, Dow, and Nasdaq fell -1.21%, -0.97%, and -2.15% respectively.

Memory Long-Term Contracts Reshaping Market Dynamics.

In tight memory supply conditions, upfront deposits are becoming more common.
Micron Technology disclosed 14 guaranteed sales deals worth at least $100 billion, with deposits totaling $22 billion. Canceling contracts would forfeit $22 billion.
SK Securities called it a “mutual hostage structure where both sides are bound to the contract.”
The JoongAng Ilbo estimated that Samsung Electronics and SK Hynix’s long-term agreements (LTA) account for 40-50% of their volume. Han Dong-hee (SK Securities analyst) analyzed, “What LTA changes is not peak profits during booms but the floor and sustainability of profits during downturns.”
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Japan Ends 30-Year Deflation.

Japan’s central bank raised its benchmark interest rate to 1% in June—the highest level since 1995. The 10-year government bond yield surged to 2.91%.
Kobayashi Keiichiro (Keio University professor) called it a “structural shift” and a “move from a demand-deficient to a supply-constrained economy.”
The Japanese government announced fiscal spending of $2.3 trillion.
Stock markets have doubled since 2024, and the Engel coefficient hit 30.7% in December—the highest in 25 years.
Stefan Angrick (Moody’s Analytics analyst) noted, “Japan hasn’t internalized what inflation and living with it means yet.” In a central bank survey, 62% said the economy had worsened. Trust in the central bank stands at 14.1%. Construction company bankruptcies are rising.
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Won-Yen Exchange Rate Hits 899 Won.

Result of the won’s strength combined with historic yen weakness. The yen has fallen to its lowest level in 40 years.
Ryu Jin-yi (KB Securities economist) noted in a report titled “Historic Yen Weakness Triggered by Investments for a Strong, Prosperous Japan”: “Growth through investment is good, but the problem is the resources to fund it.”
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The Fix.

One in Three OB-GYNs Is Over 60.

Average age is 54.4.
Hong Seong-gak (director of Iksan Jeil OB-GYN), 72, still delivers babies. His daughter, a medical student, reportedly said, “These days, only weirdos go into OB-GYN. Who would do it?”
Only 436 medical institutions have childbirth billing records—down from 620 a decade ago.
According to Seong Won-jun (professor at Chilgok Kyungpook National University Hospital), obstetric malpractice claims averaged 540 million won between 2013–2023, doubling from 230 million won in 2005–2010.
Hong Jae-sik (policy director of the Korean Society of Obstetricians and Gynecologists) said, “Obstetric malpractice claims include lost wages and lifelong care costs, so lawsuits easily exceed 1 billion won.” “Who would want to practice under constant fear of lawsuits and the burden of potentially owing over 1 billion won in damages?”
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Acquittal in 36-Week Abortion Appeal.

In the first trial, the defendant received a 3-year prison sentence suspended for 5 years.
The appellate court acquitted, ruling no intent to kill was proven.
“They only heard the fetus would be stillborn—had no idea the live infant would be killed by the doctor,” the court stated.
The hospital director and physician were sentenced to 4 and 2.5 years, respectively.
Since the Constitutional Court ruled abortion criminalization unconstitutional in 2019, no follow-up legislation has been enacted.
In an editorial, the Kyunghyang Shinmun called the ruling “a stark reminder of the chaos engulfing medical professionals, pregnant women, and the public amid legislative inaction,” quoting a lawyer’s call to “urgently draft new legislation.”
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Baemin Rider School: Accident Rate Halved in 8 Years.

Fell from 2.38% in 2023 to 0.96% last year.
Safety driving proficiency among graduates increased by 128%.
Woowa Brothers (Baemin) invested 27 billion won to build the training facility, with 23,000 cumulative graduates since 2021. Riders experience motorcycle driving in virtual reality simulations of diverse scenarios—junction violations, alleyway accidents, etc.
Graduates receive a monthly 215,000-won mutual growth support stipend.
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ICYMI.

KB Financial and Shinhan Financial Post Record Profits.

First-half net profits reached 3.9 trillion won and 3.4 trillion won, respectively. Non-banking affiliates, including stock trading commissions, performed well.
Shareholder returns are also increasing significantly. Na Sang-rok (KB Financial Executive Managing Director) stated, “This year’s shareholder return scale will reach around 3.7 trillion won.”

Why Gen Z Isn’t Having Sex.

Is celibacy cool now? Has celibacy become trendy?
A study found that 1 in 4 American Gen Z adults have no sexual experience. The proportion of young adults who haven’t had sex in the past year doubled from 12% in 2010 to 24% in 2024.
Naz Spiegelman (New York Times columnist) called it a “sex recession.”
Carter Sherman (Guardian podcast host) noted, “This trend appears in countries like South Korea and Japan too,” adding, “While smartphones and social media are cited as causes, there’s no single explanation.”
Analysis also showed that 13% of Millennial+Z generations felt more anxious about sex after the Roe v. Wade reversal.
Kristin Ember (New York Times columnist) analyzed, “Men have become inhibited since #MeToo, while women live with a miasma of anxiety.”
Carter Sherman pointed out, “Even Millennials had less sex than previous generations,” noting, “This trend began before #MeToo and the pandemic.”
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EU Fines Google €890 Million.

Google was fined €460 million for favoring its own shopping, hotel, and sports results in search over third parties, and €430 million for blocking app developers from using third-party app stores.
Teresa Ribera (EU Commissioner for Competition) stated, “It is our duty to uphold the rule of law.”
Donald Trump (U.S. President) criticized the EU’s digital fines as “a form of taxation” and “overseas extortion.”
Kent Walker (Google Chief Legal Officer) countered, “This is not about fair competition but product sabotage.”
Alphabet’s revenue last year was $402.8 billion.
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Worth Reading.

Expanding Supply and Strengthening Property Taxes.

Newspapers emphasized different points.
The Chosun Ilbo argued in an editorial, “The Moon Jae-in administration consistently relied on property tax hikes and loan regulations, but the result was skyrocketing home prices,” adding, “The current government should focus not on failed, proven measures like taxation but on increasing supply where demand is concentrated.”
The JoongAng Ilbo also noted, “Supply measures have been relatively neglected.”
The Hankyoreh highlighted, “The growing consensus on strengthening property taxes is significant,” adding, “While resistance from vested interests will be substantial, continued inaction risks worsening housing conditions, deepening polarization, and even inflating bubble collapse risks.”
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Democracy as a Spectacle of Contempt.

How did equality and democracy become targets of cynicism and mockery?
Park Kwon-il (media sociologist) pointed out, “The issue is not inequality itself, but the perception of it.”
Park views meritocracy as the ideology that maximizes status anxiety.
“While meritocracy differs from far-right ideology, it is closely linked in that it justifies inequality,” Park warned. “As democracy weakens, meritocracy functions as the ultimate ‘far-right breeding ground’ and ‘launchpad for extremism.’” The message: “The best and only way to stop the far right is to restore lost faith in democracy.”
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Transforming the Entire Nation into a Silicon Valley.

Lee Jae-myung (President) actually said this.
Son Je-min (Kyunghyang Shinmun columnist) argued, “Mega-projects cannot succeed due to ecological limits alone.”
Son emphasized, “AI investment is a massive gamble on an unrealized future decided by a tiny fraction of humanity,” adding, “It must follow democratic deliberation and debate.”
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Knowledge Referencing Knowledge vs. Knowledge Referencing Life.

“Knowledge and life intersect like the warp and weft of a woven fabric.”
Go Byung-kwon (Researcher at Nodeul Institute for Disability Studies) noted, “Knowledge detached from life removes the conflicts and pains of referencing life and embodying it, but becomes equally powerless in the face of life.”
This is an era where AI generates book reports without reading and writes soulless reflection papers.
Nietzsche said, “I love only what has been written in blood,” and “write with blood.”
Go Byung-kwon pointed out, “Those who bleed when writing, and those who smell blood when reading, are disappearing.” “With blood severed, is decay all that remains? Was creation corruption? Sentences meaningless to life have now piled into mountains.”
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