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.

Tax Basis Shifts from ‘Ownership’ to ‘Residence’.

• Homes not lived in will face higher taxes. The comprehensive real estate tax threshold for one household with one home rises from 1.2 billion won in publicly announced price to 1.4 billion won. This means homes worth up to 2 billion won in market price will be tax-exempt.
• The Ministry of Economy and Finance unveiled the tax reform plan yesterday. Real estate is the focus.
• The number of homes subject to comprehensive real estate tax will decrease from 490,000 units (top 3.1% of shared housing) to 360,000 units (2.3%).
• Even for a single homeowner, if not actually residing there, the basic deduction drops from 1.2 billion won to 900 million won, while resident owners see it raised to 1.4 billion won.
• Starting next year, tax rates for the 600 million–1.2 billion won bracket will rise from 1% to 1.3%, and from 2028, tax rates will be applied based on the total value of all owned homes, regardless of quantity.
• Koo Yoon-cheol (Deputy Prime Minister and Minister of Economy and Finance) emphasized, “Under the principle that a home is a place to live, not to own, we will establish a residence-centered housing market.”
• Related Link.
• Related Link.

Key Terms in the Real Estate Tax Overhaul.

• How much comprehensive real estate tax for primary residence owners? The threshold rises from 1.2 billion won (market price 1.74 billion won) to 1.4 billion won (market price 2.03 billion won). Homes valued under 2 billion won are exempt.
• What about non-residential primary homes? The threshold tightens from 1.2 billion won to 900 million won. For a publicly announced price of 1.5 billion won, taxes jump from 580,000 won to 1.58 million won.
• Multi-homeowner taxes? Calculations shift from a flat 900 million won to 400 million won + (500 million won × residential property value ÷ total property value). Owning three apartments with a combined public price of 2 billion won (market price 3 billion won), while residing in a 1 billion won property, adds 6.373 million won in tax.
• Benefits for residents? Living in a 2 billion won public price apartment for 10 years reduces tax from 910,000 won to 760,000 won. Non-residents see taxes soar from 910,000 won to 4.24 million won—over fourfold.

Long-Term Ownership Deduction Becomes Long-Term Residence Deduction.

• Instead of tax breaks for long-term property ownership, the system shifts to rewarding long-term residence.
• The long-term holding special deduction for capital gains tax becomes a long-term residence income deduction. The holding-period deduction will be abolished by 2029.
• Single-homeowners previously received up to 80% deduction without amount limits based on holding period, but by 2028 the cap will be 2 billion won, and from 2029 only 1 billion won.
• The policy aims to push owners to sell non-residential properties.
• Even actual residents will face significantly higher capital gains taxes on ultra-luxury homes.

Taxes Drop for Residents, Rise for Non-Residents.

• Various simulation results exist.
• Selling a 35-pyeong Banpo Jai apartment in Seoul—bought for 1.5 billion won 10 years ago—for 4.83 billion won this year incurs 180 million won in capital gains tax. By 2029, the same transaction would cost 630 million won.
• A 84㎡ Jamsil Resens apartment sold for 3.46 billion won incurs 2.13 million won in comprehensive real estate tax if owner-occupied, versus 7.47 million won if non-owner-occupied. A Mapo Raemian Prugio apartment valued at 3.02 billion won sees taxes drop from 1.29 million won to 1.13 million won for residents, but jump to 5.06 million won for non-residents.
• For a 3 billion won home, comprehensive real estate tax falls from 910,000 won to 760,000 won for residents, but rises from 910,000 won to 3.18 million won for non-residents.
• Exit routes remain. Multiple-homeowners in regulated areas will see capital gains tax surcharges reduced from 20–30 percentage points to 5–10 percentage points by 2028, reverting in 2029. Homeowners aged 65+ selling a single home in the capital region and relocating to non-capital areas receive a 50% (up to 500 million won) tax reduction.
• Related Link.
• Related Link.

What Matters Now.

Punitive Taxation? Precision Tax Hikes.

• Chosun Ilbo and others frame it as punitive taxation. In an editorial, Chosun Ilbo criticized, “They promised not to control housing prices through taxes, but this pledge has been broken.” It assessed, “The Democratic Party government nurtured the ‘single premium home’ phenomenon, and now even that single home is targeted for punitive taxation.”
• Chosun Ilbo argued, “Targeting only single-homeowners in specific classes and regions violates tax equity.”
• JoongAng Ilbo strongly criticized, “All that remains is ‘blind tax hikes.’”
• The Hankyoreh evaluated in an editorial, “Differentiating between primary and non-primary residences is a desirable direction.”
• Kyunghyang Shinmun assessed in an editorial, “The intensity is lower than market expectations.” Kyunghyang Shinmun emphasized, “The fundamental key to easing market anxiety is supply that meets market demand.”
• The People’s Solidarity for Participatory Democracy noted in a statement, “Removing comprehensive real estate tax burdens even for high-value homes is problematic.” This goes beyond protecting genuine demand in a reality where about 74% of homeowners have only one property.
• Kim Woo-cheol (Professor at the University of Seoul) pointed out, “Raising the taxable standard to 1.4 billion won in publicly announced prices and reducing tax burdens has led to an ambiguous overhaul.”
• The People Power Party criticized, “This is a ‘hanging a sheep’s head while selling dog meat’ overhaul.”
• Related Link.
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A Rush Toward Less “Perfect” Single Homes?

• Analysts predict psychological resistance lines at assessed values of 600 million won and 1.2 billion won—market prices of 3.3 billion won and 4.5 billion won or higher.
• Nam Hyuk-woo (Woori Bank researcher) analyzed, “Apartments below 600 million won in assessed value (3.1 billion won market price) in parts of Gangnam’s three districts, the Han River Belt, and southern Gyeonggi could be perceived as ‘tax-efficient single homes.’”
• Concerns also arise that the jeonse and monthly rental markets will worsen. If non-residents move in as primary residents, listings shrink—driving jeonse prices even higher.
• Related Link.

A Tax System That Pleases No One.

• Jeong Joon-ho (Kangwon National University professor) said, “Market liberals will criticize that taxes will be passed on to the rental market, while tax-increase advocates (who argue for reclaiming windfall gains) will criticize it as too weak.”
• Park Won-gap (KB Kookmin Bank senior specialist) predicted, “Not only high-end Gangnam homes but also rental business properties from non-Gangnam owners will hit the market.” Yang Ji-young (Shinhan Premier specialist) forecasted, “Price declines will remain limited due to supply shortages.”
• Woo Byung-tak (Shinhan Premier specialist) projected, “With capital gains taxes surging into the hundreds of millions of won starting in two years, there could be two waves of urgent sales before May and December next year.”
• Chae Sang-wook (Connected Ground CEO) warned, “This will lead to sharp rent increases.” Lee Chang-mu (Hanyang University professor) also forecasted, “The rental market will become even more unstable.”
• Related Link.
• Related Link.

Pushing to Sell, Then Blocking the Sale.

• Critics note that homes with tenants are difficult to transact. In parts of Seoul and Gyeonggi, buyers must move in within four months of approval.
• Kim In-man (Real Estate Economic Research Institute CEO) said, “The transaction approval system and loan regulations create a structure where sales are realistically difficult.”
• Oh Moon-sung (Hanyang Women’s University professor) stated, “Policies that make both holding and transacting difficult cannot achieve either housing price stability or tax system rationalization.”
• Related Link.
• Related Link.

Mayongseong Escapes the Tax Net.

• Actual tax increase effects are limited. Of the 480,577 single-homeowners who paid comprehensive real estate taxes last year, 82.7% (397,216) fell below the 600 million won taxable threshold—meaning many key Mayongseong apartments avoid the hike.
• Kim Hyun-dong (Pai Chai University professor) questioned, “Can price stabilization be achieved through a limited reform that concentrates tax burdens only on ultra-luxury homes?”
• “There’s also the possibility that owners will hold out, awaiting policy changes rather than selling,” he added.
• Related Link.

A Boost for Monthly Rent Deductions.

• The monthly rent tax credit limit has been raised from 10 million won to 12 million won annually. The deduction rate is 15%, or 17% for those earning 55 million won or less.
• Young people aged 15–34 will receive a 17% deduction rate regardless of income until 2029.
• Year-end tax refunds will increase by up to 300,000–540,000 won.
• The basic deduction threshold for spouses and dependents has been raised from 1 million won to 3 million won.
• Related Link.

Trump TACO Lifts U.S. Top Three Stock Markets.

• S&P 500, Dow, and Nasdaq rose 1.48%, 1.32%, and 2.13% respectively.
• International oil prices fell over 5%.
• Hyperscaler stocks surged: Alphabet (4.4%), Microsoft (4.9%), Amazon (4.6%), Meta (6.0%).
• Related Link.

Deep Dive.

Investigation-Launch Separation: Open-Door Departure.

• It means the door was opened and the car departed. Follow-up legislation for the Criminal Procedure Act remains pending.
• Though prosecutors’ investigative powers were to be fully stripped, a special law was additionally proposed to mandate full referrals for seven major crimes against vulnerable groups—child abuse, domestic violence, stalking, etc.
• Han Byung-do (Democratic Party floor leader) stated, “We clarified supplementary investigation request procedures and deadlines to prevent investigative agencies from dumping or concealing cases, and strengthened systems for reinvestigation and corrective action demands.”
• Khan Newspaper noted, “There’s no option but to keep refining it.”
• Jeong Jeom-sik (People Power Party floor leader) claimed, “The president and Democratic Party backtracked on dismissing cases and abolishing supplementary investigations in a backroom deal.”
• Related Link.
• Related Link.

Lee Jae-myung’s 7-Hour Marathon Meeting.

• After returning from a 7-day, 11-day U.S.+South America tour, held a closed-door meeting from 3 PM to 10 PM.
• Compiling leaked details, real estate supply was emphasized, and leverage ETF measures were also discussed.
• A Cheong Wa Dae official met by Chosun Ilbo said, “It’s currently difficult to prepare any extraordinary measures immediately.”
• Related Link.

President’s Disapproval Rating Surpasses 50%.

• Real Meter survey results. Lee Jae-myung (President)’s approval rating for state affairs stood at 45.9%, while disapproval hit 50.5%.
• This is the first time disapproval has exceeded 50%. Approval has remained in the 40% range for seven consecutive weeks.
• The margin of error is ±2.0 percentage points at a 95% confidence level.
• Support rates for the Democratic Party and People Power Party are 45.1% and 37.7%, respectively. Chosun Ilbo editorialized, “A widening gap between ruling and opposition parties as presidential approval falls is a rare occurrence in political history.” It added, “Continuing to watch the People Power Party’s disarray is itself a torment.”
• Related Link.
• Related Link.

At the Breaking Point.

• JoongAng Ilbo editorialized, “The domestic agenda has reached a breaking point, leaving no time to recover from the fatigue of a hectic diplomatic schedule.”
• Real estate and stock markets are showing ‘unprecedented’ instability, while contentious issues pile up: term extension constitutional amendments, stripping prosecutors’ investigative powers, dismissal of indictments, and more.
• Criticism toward Kim Yong-beom (Blue House Policy Director) is intensifying. A Blue House official met by Chosun Ilbo remarked, “It looks terrible when the system’s architect blames investors.”
• According to Chosun Ilbo, even within the Democratic Party, grumbling has surfaced: “Since the Lee Jae-myung administration, coordination between the party and government has grown thinner.”
• Related Link.
• Related Link.

Korea’s Answer to the IRA.

• Introducing a new system of tax credits for domestic production—a Korean version of the Inflation Reduction Act (IRA).
• Six items are targeted: semiconductors, solar power, secondary batteries, AI, robotics, and wind power.
• Credits are only available if domestically produced and sold by Korean nationals.
• The credit amount is calculated by multiplying the base credit by production volume, with regional coefficients applied for local areas.

Another Take.

“Too Much Emotional Provocation.”.

• Myeong-Cheong conflict is deepening Democratic Party infighting.
• Jeong Cheong-rae (former Democratic Party leader) attacked Kim Min-seok (former Prime Minister) saying, “A person who betrays once will betray again—there is no limit to betrayal.”
• Kim Min-seok argued, “If the Myeong-Cheong conflict continues, President Lee Jae-myung will waver, and the government’s direction will be destabilized.”
• A Democratic Party lawmaker met by The Hankyoreh said, “Too much emotional provocation—it’s hard to see this as just an internal party election.”
• A Democratic Party lawmaker met by Chosun Ilbo said, “With primary nomination rights at stake, both sides are risking their political lives.”
• Related Link.

Low Voter Turnout Favors Cheong-rae Jeong.

• Two variables in the Democratic Party convention are preference voting and turnout.
• Preference voting was introduced for the first time this year. If no candidate secures a majority, the second-choice votes from supporters of the third-place candidate are redistributed to the top two to determine the winner.
• Since Song Young-gil (former Democratic Party leader) has endorsed Min-seok Kim, analysts overwhelmingly predict Kim would benefit if the vote goes to a preference tally.
• Turnout is lower than the last convention. Cheong-rae Jeong, who has strong core support, holds an advantage. However, his support in Chungcheong and Busan-Ulsan-Gyeongnam has not risen as expected.

The Democratic Party’s Civil War.

• “If Jeong Cheong-rae wins, we’re doomed. If Kim Min-seok wins, we’ll be even more doomed by year’s end. What can we do?” Such talk is reportedly circulating among Democratic Party lawmakers these days.
• Jeong Cheong-rae (former Democratic Party leader) and Kim Min-seok (former Prime Minister) are clashing fiercely. Sung Han-yong (senior Hankyoreh reporter) remarked, “For Lee Jae-myung (president), the very existence of a two-horse race is humiliating,” adding that “Jeong Cheong-rae’s victory would be a disaster for Lee Jae-myong” and “could lead to a lame-duck period.”
• Related Link.

“It’s All My Fault.”.

• Sam Altman (OpenAI CEO) acknowledged that OpenAI is falling behind Anthropic.
• OpenAI misread the market. While OpenAI focused on expanding ChatGPT subscriptions, Anthropic concentrated on developers and increased enterprise sales. Their learning and training approaches also differed: OpenAI prioritized competition-style coding challenges, while Anthropic tailored solutions for real-world tasks.
• While Sam Altman vacationed in St. Barthélemy, developers in San Francisco spent hours immersed in “Claude-benders.”
• OpenAI belatedly counterattacked with a super-app strategy bundling Codex, ChatGPT, and a web browser. GPT-5.6 also hit. Dan Shefer (Every CEO) said, “If OpenAI properly captures the daily experiences of developers and knowledge workers,” he believes they “will reclaim their mandate of heaven.”
• Related Link.

Magnificent 7 Is Dead.

• Before the Magnificent 7, there was FAANG.
• With the Magnificent 7 dead, a new term—MANGOS—has emerged, bundling Meta, Anthropic, Nvidia, Google, OpenAI, and SpaceX.
• According to the Financial Times, such nicknames during bubble phases act as momentum-boosting devices. The Magnificent 7 was a hodgepodge of software, telecom equipment, online retail, semiconductors, and automotive—yet the nickname alone had the effect of diverting attention from fundamentals.
• A reminder not to forget Keynes’ warning: “The market can stay irrational longer than you can stay solvent.”

Hwaseong’s GRDP Surpasses Ulsan at 91 Trillion Won.

• Ulsan recorded 78 trillion won, while Busan reached 97 trillion won.
• Kim Jin-yu (Kyunggi University professor) stated, “As a self-sufficient new city, it has the potential to become a second Gangnam.” Kim Si-deok (urban historian) analyzed, “Dongtan will be the core axis of the ‘expanding Gangnam’ stretching from Suseo-Pangyo to Dongtan.”
• Dongtan District’s population is 430,000, while Hwaseong City’s population is 1.07 million. Dongtan’s average age is 36.1, nearly 10 years below the national average of 45.6. The 0–14 age group accounts for 18.1%, far exceeding the national average of 10.1%.
• Related Link.

The Fix.

No Fan Can Fix This.

• Daegu Urban Development Corporation has piloted “heatwave-safe housing” to relocate residents from slum tenements.
• Yoo Kyung-jin (secretary at Daegu Slum Counseling Center) said, “The fundamental issue is that housing itself must change.” Even the best fans and cooling mats are useless in rooms where air conditioning cannot be installed.
• The Volunteer Capacity Development Institute provided a 500,000-won deposit, while IBK Industrial Bank, the Ministry of Health and Welfare, and the Community Chest of Korea split operational costs.
• Residency lasts until the end of next year. Since the government covers rent for those eligible for basic livelihood housing benefits, housing costs do not differ significantly from when they lived in slums.
• Related Link.

ICYMI.

Solasis Data Center Park.

• Groundbreaking ceremonies were held yesterday.
• 2.5 trillion won will be invested across a 49,000㎡ site.
• Completion is scheduled for 2028.
• A consortium led by Samsung SDS—with Naver Cloud, Kakao, and KT among participants—was finalized as the winning bidder.

Bank of Korea Buys Gold for First Time in 13 Years.

• The central bank holds around 104 tons of gold. Though previously hesitant—citing its non-yielding nature and liquidity challenges—there have been growing calls to diversify away from dollar concentration.
• Japan holds 846 tons. The U.S. holds 8,134 tons. South Korea ranks 41st.

Generation X Is the Most Depressed.

• Consumer confidence is lowest among all generations. Low consumer confidence means income is not growing or is shrinking, leaving little room for spending. (Approximately 45–61 years old)
• Once labeled as “slacking,” Generation X is now approaching retirement age. As a sandwich generation caring for both parents and children, they feel unprepared for retirement.
• Happiness is said to follow a U-shaped pattern. Generation X may be at the bottom of that curve—but it could turn into an L-shape. This is an American story, but Korea may be similar.
• Related Link.
• Related Link.

Why Kimbap Shops Are Closing.

• Prices have risen, leaving no profit.
• 68.4% of snack bars established in 2018 closed within five years. As of December last year, there were 49,026 snack bar operators—a 5.1% decrease in one year.
• Dried seaweed (10 sheets) rose 22.4% to 1,427 won, rice (20kg) 12.8% to 61,458 won, and eggs (10 pieces) 17.9% to 4,229 won. Spinach and cucumbers surged 96.9% and 70.9%, respectively.
• Related Link.

Worth Reading.

The Democratic Party Is Dying.

• Lee Dae-geun (Woosuk University professor) criticized, “The Democratic Party is a party dominated by passion that refuses to take responsibility.”
• Lee pointed out, “Claims that without supplementary investigative powers disaster would ensue, or that preserving them would mean failing judicial reform, are all exaggerations. It was not an issue worth conflict at the cost of party division.”
• “While the president wanted to maintain supplementary investigative powers, he failed to persuade party members. Eventually, though he decided to follow their opinion, he did not accept it graciously. As a result, he made the achievement of completing judicial reform appear flawed and exposed collective incompetence by failing to mediate internal disagreements, thereby exacerbating conflict.”
• Lee strongly criticized Representative Cho Jung-sik (National Assembly Speaker)’s remarks on constitutional revision for term limits as “already a psychological coup—a blow to citizens—by dragging the unimaginable into the realm of possibility.”
• “The Democratic Party has liberated itself from all constraints and disciplines. There are now no lines it must not cross.”
• Related Link.

Would Roh Moo-hyun Have Approved This Prosecution Reform?

• Kim Hee-won (Korea Ilbo News Standards Director) assessed, “It’s astonishing how recklessly they’re pushing through legal revisions that harm the public, fixated on ideological purity contests.”
• Kim Yong-min (Democratic Party lawmaker) visited the grave of Roh Moo-hyun (former president) and wrote, “I’ve completed the homework you gave me.” Seo Young-kyo (Democratic Party lawmaker) also remarked, “I’ve done something tremendous.”
• Kim Jin-ju, a victim of the Busan kickback scandal, commented on Kim Yong-min’s post: “Go to hell.”
• Kim Hee-won pointed out, “Roh Moo-hyun would never have pursued prosecution reform like this.”
• “Roh Moo-hyun had a fanbase but didn’t pander to his supporters. He didn’t avoid unpopular decisions, made resolute choices, and took responsibility. That was the essence of Roh Moo-hyun’s legacy.”

Animals Are Not Objects, But ◯◯.

• France, Portugal, Spain, and others have reached a social consensus that animals should be defined as “sentient beings.”
• South Korea? It hasn’t even succeeded in inserting the clause “animals are not objects.”
• Jonathan Birch (professor at the London School of Economics) defines sentience as “the capacity to have subjective experiences with positive or negative value, such as pleasure and pain.” Donald Broom (professor at Cambridge University) explains it as “not merely reacting to sensations or stimuli, but the ability to feel pain, fear, pleasure, and satisfaction.”
• We must start by legally recognizing that animals are not objects.
• Lee Hyung-joo (CEO of AWARE) emphasized, “This isn’t merely a proposal to ‘recognize companion animals as family.’ It’s the first step toward a legal framework that reflects the scientific fact that animals are beings capable of suffering and joy—and balances owners’ rights and responsibilities with animals’ interests accordingly.”
• Related Link.

What’s Worse Than Starting a War?

• Losing control of it. David French (New York Times columnist) warned, “The possibility of a world war has never been higher.” It’s not inevitable or even likely, but the situation is that dire.
• According to NBC, Trump recently erupted during a meeting with his national security team. It’s no surprise the meeting reached no conclusion: every path to victory risks dangerous escalation, while maintaining the status quo is a strategic defeat.
• Iran controls the Strait of Hormuz. The Houthis’ entry into the conflict has blocked the Red Sea. Saudi Arabia is planning retaliatory strikes against the Houthis.
• Ukraine attacked an Iranian vessel in the Caspian Sea. Observers speculate Russia and China are aiding Iran with satellite imagery and more. Reuters reports evidence that China may have sent surface-to-air missiles to Iran.
• A Russian missile also struck Poland—(fortunately, no casualties). Russia is considering full-scale war with Ukraine.
• The U.S. is running out of missiles. The world has learned America’s military power is far more vulnerable than imagined. Iran, too, has suffered heavy losses but shows no sign of backing down.
• David French emphasized, “We must not adopt the attitude of sitting back, relaxing, and believing everything will work out as Trump demands.” “We must do what democracies have rarely or never succeeded in doing: foresee the coming disaster and act decisively before a horrific war consumes the world.”
• Related Link.

Coupang Is Everywhere.

• It’s what everyone says these days when meeting Korea-related figures in Washington, DC.
• Kim Eun-jung (Chosun Ilbo Washington correspondent) pointed out, “The ‘Coupang issue’ has been ongoing for over half a year, consuming everything in South Korea–US relations.”
• The analysis is that “Coupang’s extensive lobbying has left our government powerless.”
• “A single corporate issue is shaking the alliance—we must ask whether we’re truly operating as a ‘one-team’ beyond bureaucratic silos, and whether there’s a control tower drawing a bigger picture that encompasses regulatory bodies like the Fair Trade Commission and the Personal Information Protection Commission.”
• Related Link.

Normalization or Politicization?

• “Controlling housing prices through taxes alone is difficult, but expecting it from an ‘elastic tax system’ is even more unreasonable. Prices inevitably rebound once listings retreat after a brief slump due to ‘learning effects.’”
• Jo Min-geun (JoongAng Ilbo columnist) assessed, “Normalization or politicization?”
• South Korea’s effective real estate tax rate is 0.147%—one-seventh of the U.S. and one-third of Japan’s. While calls to lower transaction taxes and raise holding taxes have persisted, this tax reform only modestly increased levies on high-value properties.
• Jo Min-geun noted, “The acquisition tax functions as a ‘prepaid holding tax,’ and the capital gains tax as a ‘deferred holding tax.’”
• Related Link.