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.

“Lee Jae-myung’s Re-election Is a Matter for the People to Decide.”.

• Cho Jung-sik (National Assembly Speaker) sparked massive controversy with remarks at a press briefing.
• When reporters brought up, “The opposition is against constitutional amendments to extend the current president’s term,” Cho responded, “Ultimately, it’s a matter of public opinion and the people’s choice as sovereigns,” adding, “It depends on how political stakeholders reach an agreement.”
• His answer may have been principled, but he should have dismissed the absurdity outright. Even if the public wanted it, constitutional amendments wouldn’t allow it. In April, Woo Won-shik (former National Assembly Speaker) was asked the same question and flatly rejected it as “impossible.”
• Article 128, Clause 2 of the Constitution states, “A constitutional amendment to extend the president’s term or allow re-election shall have no effect on the president in office at the time of the proposal of the amendment.”
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“He’s Really Stirred Up a Hornet’s Nest.”.

• Yoo In-tae (former Democratic Party lawmaker) called it “nonsensical” and said, “It’s making me want to swear.”
• “Even if the president has some lingering attachment to dropping the indictment, he should let it go. He should focus on regaining power to resolve the issue—obsessing over it during his term will only create more instability.”
• A Democratic Party lawmaker interviewed by *The Hankyoreh* said, “He’s really stirred up a hornet’s nest,” adding, “I don’t know what he’s thinking—inviting the opposition to join the constitutional amendment committee and then making remarks that seem to leave open the possibility of extending the current president’s term.” Another lawmaker remarked, “Does he think public opinion would ever allow that? It’s absurd.”
• Another lawmaker stated, “The speaker has made the situation extremely awkward,” warning, “Unless he quickly cleans up his own mistake—since he’s the one who caused this—the fallout will spread uncontrollably.”
• Jang Dong-hyeok (People Power Party leader) held a press conference, declaring, “If they push for a term-extension amendment, that would be nothing short of a genuine act of insurrection.”
• Han Sang-hee (professor at Konkuk University) said, “The core spirit of the 1987 Constitution is the single-term presidency—even discussing its amendment casually is a dereliction of the National Assembly speaker’s duty.”
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Could Deleting Article 128(2) of the Constitution Make It Possible?

• Most legal scholars agree it’s impossible. The clause was originally designed to prevent incumbent presidents from extending their terms through constitutional amendments.
• “The people’s choice” cannot justify it. *The Hankyoreh* pointed out, “We vividly recall that past dictators—who altered power structures and extended terms through the ‘extractive amendment’ and ‘three-round amendment’ (Syngman Rhee), and the ‘three-term amendment’ and ‘Yushin Constitution’ (Park Chung-hee)—all cited ‘exceptional gravity of crisis’ and followed the ‘sovereign people’s choice’ procedure.”
• A constitutional amendment requires a two-thirds majority. The Democratic Party holds 161 seats. It needs 39 more to pass it.
• Related Link.

The Black Hole of Term-Extension Constitutional Amendment Talk.

• It could swallow all other issues. Concerns are also emerging that constitutional reform discussions have become impossible.
• “Claims like the ‘13-year rule’ theory from pro-Lee YouTube circles can be dismissed as absurd, but the National Assembly Speaker’s remarks on ‘term-extension amendments’ cannot be overlooked.”
• Kyunghyang Shinmun* criticized in an editorial, “It’s as absurd as martial law,” analyzing, “It will only fuel political strife and close the door to constitutional reform entirely—becoming a black hole.”
• Cho Jung-sik argued, “Next year, with no nationwide elections, is the ideal time for reform,” but it won’t be easy.
• Related Link.
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Claims of Eligibility for Re-election Are Not New.

• Cho Won-cheol (Director of the Legislative Research Service) said during a National Assembly audit last October, “Ultimately, it’s a matter for the people to decide.”
• Last December, Kim Min-seok (then-Prime Minister) also remarked, “Five years is too short.”
• Jo Jeong-sik is a former special advisor to Lee Jae-myung (President) on political affairs. He served as chief of staff during the party leader’s tenure. He is nicknamed the “designated pick” for National Assembly Speaker.

What Matters Now.

Black Tuesday.

• Samsung Electronics and SK Hynix shares fell 13.4% and 14.7%, respectively.
• The KOSPI dropped 10.8% to 6,023.7.
• Anxiety and concern compounded.
• Chinese DUV (deep ultraviolet) began production of EUV (extreme ultraviolet) lithography equipment. ASML, which makes EUV lithography machines, saw its stock plummet. CXMT (Changxin Memory Technologies) also fueled anxiety as its stock surged immediately after listing.
• Kim Seok-hwan (Mirae Asset Securities analyst) noted, “The market’s concern lies not in CXMT’s current performance but in the potential for expansion and accelerated technology development post-IPO.”
• JoongAng Ilbo’s front-page headline read, “Caught off guard by Chinese semiconductors.” Chosun Ilbo analyzed, “As Chinese semiconductors rise, the KOSPI falters.”
• Related Link.
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Why the Slump?

• First, there are doubts whether the massive scale of investment can actually translate into profits.
• Second, the perception of high costs is spreading as open-source models lower AI operational expenses.
• Jo Soo-hong (NH Investment & Securities Research Division Head) said, “In the absence of clear fundamental deterioration, supply-demand dynamics led the market and dampened investor sentiment.”
• Kim Hak-gyun (Shinyoung Securities Research Center Head) assessed, “Rather than a collapse in corporate fundamentals, this should be seen as high volatility inherent to the AI industry’s growth phase.”

Anxiety Is Sprouting.

• According to Goldman Sachs, planned capital investments by the four major hyperscalers—Alphabet, Amazon, Meta, and Microsoft—are projected to reach $5.3 trillion by 2030.
• Where will this money come from? Cash reserves are being drained, and debt is being taken on. Some forecasts suggest borrowing could reach $400 billion.
• Interest rates are rising just as cash becomes desperately needed. Funding is likely to become harder, or interest costs will grow. The bond market is already sinking.
• Meta’s $12 billion loan to build a 1GW data center in Texas caused its bond rating to drop.
• NVIDIA’s $250 billion support for OpenAI is also unsettling. Concerns are emerging that a “robbing Peter to pay Paul” scenario has begun.
• CDS (credit default swap) premiums for Big Tech companies have surged to record highs. This signals that default risks are being priced in. Oracle’s credit rating has fallen to ‘BBB-’, just one notch above junk status.
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Sidecars Activated 42 Times This Year Alone.

• KOSDAQ triggered 26 times. Since July, sidecars have activated on all but three trading days.
• Circuit breakers were triggered eight times.

SK Hynix Q2 Operating Profit: 60.5 Trillion Won.

• SK Hynix’s Q2 revenue was 7.93 trillion won—slightly below consensus.
• U.S. big tech earnings reports are also scheduled. The U.S. Federal Reserve’s rate hike decision on the 30th is another variable.
• Yesterday, the S&P 500, Dow, and Nasdaq indices rose 0.21%, 1.03%, and fell -0.22%, respectively. The Dow climbed while the semiconductor index dropped 4.5%.
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Deep Dive.

How Far Has China’s Semiconductor Industry Come?

• DRAM: CXMT’s G4 process is on par with Samsung Electronics and SK Hynix’s 1z (third-gen 10nm-class) from 2019. The under-development G5 still lags by 3–4 years. Monthly production is around 270,000 wafers. Market share: 8%. Expected to rise to 350,000 wafers this year.
• HBM: Still in trial production. As of late last year, 5,000 DRAM wafers per month were allocated to HBM. While Korea is mass-producing HBM4 (6th-gen) and has succeeded in developing HBM4E (7th-gen), CXMT struggles to mass-produce HBM3 (4th-gen). The gap is 4–5 years.
• Foundry: SMIC’s ‘N+3’ (third-gen 7nm) process is comparable to TSMC’s 2020 level. The gap with Samsung Electronics is 5–6 years.
• NAND: YMTC has commercialized both TLC and QLC. It has secured stacking technology beyond 200 layers. China is nearly catching up. Market share: 13%.
• AI Chips: Four Huawei AI chips match the performance of one Nvidia GPU. The gap is 2–3 years.
• Chosun Ilbo analyzed, “Just as Japan, which once led the global DRAM market, ceded dominance to Korea in the 1990s, Korea could also be overtaken by China’s volume-driven offensive and technological pursuit.”
• Kwon Seok-joon (Sungkyunkwan University professor) said, “It’s feasible for China to raise self-sufficiency in general-purpose semiconductors by 2030,” adding, “Even if Korea maintains its edge in HBM, eroding margins in general products could increase burdens.”
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Netanyahu Comes to Meet Trump.

• Once wartime allies, the atmosphere has changed. They used to speak daily, but communication has since dwindled.
• Benjamin Netanyahu (Israeli Prime Minister) came to meet Donald Trump (U.S. President), but reportedly struggled to secure a meeting.
• Axios analyzed, “Their interests have never been further apart,” and “suspicion of each other’s intentions has deepened discord and frustration.”
• The U.S. sold F-35s to Turkey, which Netanyahu opposed. Trump remarked, “No one can dictate to us what to sell or not sell. Turkey has been a great ally to me. Turkey doesn’t particularly like Israel. Bibi isn’t exactly their favorite either.” (Bibi is Netanyahu’s nickname.)
• Netanyahu also faces elections in three months. When reporters asked Trump if he still supports Netanyahu, he remained silent.
• Related Link.

Trump Praised Zelenskyy.

• Trump is someone who likes to stand with the winning side. Volodymyr Zelenskyy (Ukrainian President) visited the White House 17 months after being humiliated and ousted.
• Zelenskyy said, “Trump praised Ukraine’s long-range drone operations as being done very well.”
• Related Link.

7.1 Magnitude Earthquake Strikes Kumamoto, Japan.

• A large shopping mall exploded, causing significant damage. Over 20 people remain unreachable.
• Kumamoto Airport has closed, and highway traffic is prohibited. TSMC’s Kumamoto plant has also halted operations.
• The tremor was strong enough to be detected in South Korea.

“Let’s Not Lose Our Workers’ Identity.”.

• Words spoken by Lee Jae-myung (President) during his meeting with Luiz Inácio Lula da Silva (Brazilian President).
• They agreed to expedite the Mercosur (Southern Common Market) trade agreement.
• Brazil is the world’s 11th-largest economy. Last year, trade with South Korea amounted to $14.3 billion.
• The economic delegation included many K-beauty companies. Brazil is the world’s third-largest cosmetics market, after the U.S. and China.
• Related Link.

Another Take.

Money Leaves Nvidia, Then Returns to Nvidia.

• Circular deals can collapse entirely if one link breaks.
• When demand rises and cash flows, the flywheel spins and everyone’s value soars—but once shaken, everything grinds to a halt.
• Nvidia has invested up to $100 billion in OpenAI, $10 billion in Anthropic, and stakes in 12 other companies including Intel, CoreWeave, and recently Naver. Most of these buyers purchase Nvidia chips.
• Dario Amodei (Anthropic CEO) said, “One side has money, the other has chips. Interests and confidence align, but $50 billion isn’t immediately available,” adding, “Such deals are not inherently improper.”
• Bloomberg warned, “If demand falls short of expectations, distorted incentives could drive poor decisions and amplify losses.”
• Related Link.

Why Iran Isn’t Hurrying the Negotiations.

• According to analysis by Farnaz Fassihi (New York Times Iran correspondent), Iran is likely betting that Trump will eventually concede.
• Trump faces midterms in 100 days, but Iran has endured prolonged pain and is not in a position to back down now.
• Gregory Brew (Eurasia Group analyst) said, “Iran risks overreaching.” From Trump’s perspective, he is more likely to escalate war than cede the entire Strait of Hormuz.
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Trump’s ‘No Win’ Dilemma.

• Neither escalation nor negotiation is easy.
• Eighteen U.S. troops have died, and war costs have reached $37.5 billion. Public support for the war has dropped to 33%.
• Missiles are also running low. Tomahawk missile stockpiles are now at one-third of pre-war levels. NBC analyzed, “To conserve interceptors, the U.S. is allowing off-course projectiles to pass without interception.”
• Iran has flatly stated, “There will be no negotiations.”
• Jeong Ui-gil (Senior Reporter, Hankyoreh) analyzed, “The U.S.-Iran war is a product of Trump’s contradictory foreign and Middle East policies, and the quagmire of an endless war shows these policies have collapsed.”
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America’s First Investment: A Texas Gas Power Plant.

• Discussions are underway to build a gas power plant as the first project of the $200 billion investment. The facility will have a 6.4GW capacity, with a project cost of $19.8 billion.
• It will supply power to an AI data center to be built nearby. While some analyses suggest the return on investment will exceed 5% annually, there are many variables.
• Samsung C&T and others are reportedly being considered for plant design, procurement, and construction, while Doosan Enerbility and others would supply gas turbines and power generation equipment.
• Japan also selected a 9.2GW gas power plant in Ohio as its first U.S. investment project.
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• *Note on formatting:** The “ tag appears in the original Korean content and has been preserved in the translation. If this was an error, it should be removed in the final output. The corrected version would be:
• Discussions are underway to build a gas power plant as the first project of the $200 billion investment. The facility will have a 6.4GW capacity, with a project cost of $19.8 billion.
• It will supply power to an AI data center to be built nearby. While some analyses suggest the return on investment will exceed 5% annually, there are many variables.
• Samsung C&T and others are reportedly being considered for plant design, procurement, and construction, while Doosan Enerbility and others would supply gas turbines and power generation equipment.
• Japan also selected a 9.2GW gas power plant in Ohio as its first U.S. investment project.
• Related Link.

“Don’t Sell the Country to Big Tech.”.

• Twenty-four data centers exceeding 100MW are set to be built in Scotland. Once completed, they will consume 1.5 times the region’s peak electricity demand.
• Scotland’s cool climate and cheap renewable energy make it an ideal location.
• The 600MW data center in Pipe O’Thurthole alone uses one-fifth of Scotland’s annual power while creating just 120 jobs. Critics note, “The buildings will remain, but all the technology will be American-made.”
• Related Link.

The Fix.

National Suicide Response Unit to Be Established.

• Temporary protection services will be introduced, and on-site response teams will expand. The number of 109 suicide prevention counselors will double from 103 to 206.
• Guided links to 109 services will be displayed for those searching for terms related to suicide or self-harm.
• Individuals who have attempted suicide have a 25x higher suicide rate than the general population, while bereaved families have a 22.5x higher rate.
• 75% of suicides occur in buildings, 23% in rural areas like mountains or rivers.
• Song In-han (Yonsei University professor) noted, “Elevating state responsibility and strengthening post-attempt care are progressive steps,” but added, “The policy’s success will depend on how effectively it blocks the social pathways leading to suicide.”
• Related Link.

Over 65 Population Reaches 20.7%.

• Entered a super-aged society by UN standards.
• The old-age dependency ratio is 29.9. The aging index is 205.2.
• The median age is 46.8 years.
• Related Link.

Data Centers to Run on Renewables, UN Urges.

• António Guterres (UN Secretary-General) said, “All data centers must be powered by renewable energy by 2030.” The UN’s emphasis on renewables rather than carbon neutrality means nuclear power is excluded.
• Axios noted, “Decarbonizing most of the world’s power grids in less than five years is impossible.”
• The realistic outlook is that renewables will account for over one-third of data center power generation by 2030. According to the IEA (International Energy Agency), renewable energy generation is expected to surpass coal this year.
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Next Year’s Livelihood Support for a Four-Person Household: 2.22 Million KRW.

• Median income benchmark rose by 6.7%—the largest increase in history. For a four-person household, it is 6,929,885 KRW.
• The median income benchmark serves as the threshold for welfare programs like basic livelihood security. Those below 32% of the benchmark qualify for basic livelihood support—2,217,536 KRW for a four-person household.
• Jeong Eun-kyung (Minister of Health and Welfare) said, “The increase rate was determined to prioritize protecting the minimum living standards of the most vulnerable citizens.”
• Namyun Kyung (Director of Social Policy at the Citizens’ Coalition for Economic Justice) pointed out, “The average median income increase rate over the past three years was 8.7%, making this 2 percentage points lower.”
• The People’s Solidarity for Participatory Democracy issued a statement: “Deciding a critical welfare benchmark that directly impacts citizens’ lives behind closed doors is a serious issue.”
• Related Link.

ICYMI.

Reverse Money Move: From Stocks to Deposits.

• Money is flowing out of ETFs and into deposits. The balance of fixed-term deposits at the five major banks has increased to 971 trillion KRW. Investor deposit balances have decreased to 104 trillion KRW.
• ETFs have shrunk to 443 trillion KRW, losing 90 trillion KRW in a single month.

Defense Ministry Returns to Headquarters at 55.5 Billion KRW Cost.

• Relocating back to the former Yongsan Presidential Office building.
• Moving out cost 34.9 billion KRW, moving back cost 20.6 billion KRW.
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Worth Reading.

Iran: The Hedgehog, Trump: The Fox.

• Iran digs in, Trump stirs the pot.
• Walter Russell Mead (Hudson Institute researcher) analyzed, “A combination of bait-and-switch diplomacy and military bluster is obscuring the actual state of the conflict.” The likelihood of Trump ordering a ground invasion is nearly zero. Iran views this stalemate as a victory. Trump may believe he has ended wars three times over.
• The comparison of Trump to a fox stems from the view that “he won’t give up until he’s exhausted every possible means.”
• Related Link.

“A Historic ‘Cold Soup’ Moment.”.

• “Celebrating a windfall as if the nation has won, but what’s ‘irreplaceable’ about it? Heed the stock market’s warning: South Korea is replaceable.”
• Seon Woo-jeong (Chosun Ilbo columnist) poured cold water in his column.
• “We are indeed at a historical turning point. It’s true that Korean companies are the protagonists. But there’s no basis to claim the money being made is ‘structural excess profit.’”
• “The idea that massive AI investments will lead to astronomical profits for Korean semiconductors is childish wishful thinking” and “will become a historic ‘cold soup’ moment,” he warned.
• Related Link.

Citizens Ask About Loans, Government Talks Taxes.

• It was less a failure of communication than a mismatch in time horizons. Citizens are clamoring to buy homes now, while the government talks about long-term market stability.
• Jeong Joon-ho (Kangwon National University professor) noted, “Tax reform is a medium- to long-term language, and its effects depend on design and continuity.”
• “What’s needed is a supply of high-quality rental housing in good locations—and ultimately, blurring the line between rental and purchase markets. Stability in the rental market requires a state where the house you buy and the house you live in don’t have to be the same.”
• Related Link.

What Samsung and Nicks Suck In.

• Lee Chang-min (Hanyang University professor) outlined three side effects when conglomerates vacuum up attention and resources.
• First, checks and balances are neutralized.
• Second, conflicts are resolved through power dynamics.
• Third, volatility increases.
• “It’s not a problem that conglomerates succeed. The issue is that their success is sucking in checks and balances. The courts have neutralized oversight, shareholder groups have weaponized conflict, and the financial sector has amplified volatility. The government alone cannot stop this black hole.”
• Related Link.

Deadly Hubris: The Illusion of Market Control.

• Friedrich Hayek (economist) said it best.
• Yoo Chang-jae (The Korean Economic Daily business news editor) noted, “What happened in Korea’s forex and stock markets is a textbook case of the ‘law of unintended consequences’ in economics.”
• To stabilize the exchange rate, leveraged ETFs were introduced—but stock prices plummeted, reducing foreign net selling. As the exchange rate fell, exporters began converting dollars.
• The analysis: “A self-correcting mechanism is finally at work: weak won → improved price competitiveness → increased exports → current account surplus → dollar inflows → exchange rate stabilization.” Yoo Chang-jae added, “In this vast ecosystem, government policy is just one variable.”
• “When price becomes the target, markets inevitably move in unintended directions. The government’s role is to raise predictability through consistent principles—whether in real estate or industrial policy. This isn’t a call to step back. But at least, humility before the market is essential.”
• Related Link.

Why Abolishing Supplementary Investigative Authority Is the Only Answer.

• Son Won-je (Hankyoreh columnist) views abolishing supplementary investigative authority as the completion of prosecutorial reform.
• Prosecutorial investigative authority and the Anti-Corruption Investigation Office’s (ACIO) authority are distinct. The ACIO only investigates, while prosecutors hold powers to control investigations—such as indictment rights and arrest warrant requests.
• Police and the ACIO have checks and balances, but prosecutors do not, hence the argument that stripping their investigative authority is justified.
• Naturally, police also require oversight. Son emphasized, “Prosecutorial supplementary investigations cannot and should not be an alternative.”
• The reasoning: “Supplementary investigative authority is still investigative power,” and “prosecutorial supplementary investigations, unlike those of police, are final, making errors hard to correct or check.”
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