Meta Muse Effect Propels Nasdaq to Record High.

• Meta’s AI agent Muse, created by the company, reached No. 1 on the Apple App Store. Meta’s stock surged 11.4%.
• Muse transcends chatbots as an action-oriented agent. It remembers base patterns, assisting with shopping, travel planning, scheduling, and health management.
• Semiconductor and AI-related stocks soared. AMD joined the $1 trillion market cap club. Optimism spread as the impact of AI slowdown theories proved limited. The Wall Street Journal analyzed, “The Magnificent 7 are roaring back.”
• All three major US indices rose yesterday. The S&P 500, Dow, and Nasdaq gained 1.49%, 0.71%, and 2.26% respectively.
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What Matters Now.

Yong Hye-in, Kim Seung-won, Kang Hoon-sik.

• Kang Hoon-sik (Chief of Staff to the President) has stepped down. A Blue House official explained, “As chief of staff responsible for assisting the president, he expressed his intention to take comprehensive responsibility.”
• The Chosun Ilbo’s front-page headline reads, “Kang Hoon-sik departs as Kim Hyun-ji faces backlash.” The Hankyoreh assessed it as “accountability for personnel failures,” while the Kyunghyang Shinmun predicted it as “a signal for personnel renewal.”
• A ruling party insider remarked, “Isn’t this proof that the president and the Blue House are cornered?” A Democratic Party core official said, “They must have considered public sentiment around the Chuseok table.”
• The People Power Party evaluated it as “cutting off the tail to protect close aides and shadow powerbrokers.” Jang Dong-hyeok (People Power Party leader) criticized, “Those who should truly take responsibility are the Gyeonggi-Seongnam faction that controls the Blue House,” adding, “Is ‘Hyun-ji sister’ stronger than ‘Hoon-sik hyung’ after all?”
• A ruling party insider interviewed by the Kyunghyang Shinmun asked, “Shouldn’t the deputy chief of staff, personnel secretary, civil affairs secretary, and public service ethics secretary also share responsibility?”
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Who Will Succeed Kang Hoon-sik?

• Names floated include Cheon Joon-ho (Democratic Party lawmaker), Han Joon-ho (Democratic Party lawmaker), Lee Hae-sik (Democratic Party lawmaker), Park Sung-jun (Democratic Party lawmaker), Lee Cheol-hee (former Democratic Party lawmaker), and Kim Min-gi (former National Assembly Secretary-General).
• Policy chief candidates reportedly include Kim Jeong-gwan (Minister of Trade, Industry and Energy), Kim Sung-sik (Vice Chairman of the National Economic Advisory Council), and Ha Joon-kyung (Blue House Economic Chief).
• The Hankyoreh editorialized, “If the president insists only on people who are easy to use, the public will suffer.”
• The Kyunghyang Shinmun editorial noted, “The president’s reliance on yes-men who read his intentions has led to policy confusion, criticism of the Blue House’s micromanagement and one-way governance,” and proposed, “Appoint personnel who can serve as a red team close to the president.”
• Kim Hyung-gu (JoongAng Ilbo columnist) emphasized, “With the resolve that subsequent appointments will determine the regime’s fate, select candidates not as ‘the president’s loyalists’ but as ‘public servants of the people.’”
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“No Responsibility to Answer Gossip.”.

• Kang Yu-jeong (Blue House spokesperson) said this. Questions poured from reporters as suspicions about Kim Seung-won (former justice minister nominee) kept emerging. A petition detailing accounting fraud allegations from his time as Gyeonggi Province party chair was delivered to the Blue House. There are also sexual harassment allegations and claims of driving while heavily intoxicated.
• Kang Yu-jeong stated, “Since the appointment authority has not yet been finalized, this appears to the Blue House to be mere gossip.”
• Park Sung-jun (Democratic Party spokesperson) said, “We respect Kim Seung-won’s decision” and added, “Doesn’t this resignation cover everything?”
• Kim Min-ah (Kyunghyang Shinmun columnist) noted, “If the sexual harassment or abusive language allegations are true, there are clear victims” and criticized, “Kang Yu-jeong’s remarks risk secondary harm.” She emphasized, “Even if the nominee has stepped down, the Blue House’s accountability to explain the nomination, vetting, and resignation process remains.”
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Deep Dive.

Trump Is Testing the Waters.

• Two issues are at stake. South Korea has delayed promised investments and drawn a line under troop deployments.
• The UN General Assembly begins today and will run for three days. Whether Lee Jae-myung (President) and Donald Trump (U.S. President) meet has become a critical variable.
• Andrew Yeo (Brookings Institution Korea Chair) said, “Some Trump administration officials felt ‘South Korea was playing games with the U.S.’” The analysis: “While relations were good last year, this year’s delays in the first major U.S. investment project and overlapping issues with treatment of U.S. companies like Coupang have reignited friction.”
• Mega-projects may have also irked Trump. A U.S. State Department official reportedly remarked, “If South Korea had first announced its U.S. semiconductor projects and then its domestic mega-projects, there would have been fewer problems.”
• The Chosun Ilbo editorialized, “It’s time to demonstrate the true essence of pragmatic diplomacy,” warning, “If the meeting remains merely perfunctory or collapses, concerns about unstable ROK-U.S. relations will grow.”
• While U.S.-China and U.S.-Japan summits are scheduled, South Korea has yet to finalize its timeline. Lee Jae-myung (President) departs for Mexico on the 24th.
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Will Trump Meet Pezeshki?

• Xi Jinping (Chinese President), Masoud Pezeshki (Iranian President), Benjamin Netanyahu (Israeli Prime Minister), and Volodymyr Zelenskyy (Ukrainian President) will gather in one place.
• Analysis suggests the U.S. paying overdue UN dues at once is an attempt to politically leverage the organization. A “Xi Jinping role theory” is also emerging.
• Some speculate that while Trump started the war, Xi Jinping may end it. If China supports Iran behind the scenes, Iran can continue to hold out. From Beijing’s perspective, a situation where the U.S. exhausts missiles in the Strait of Hormuz is not unfavorable. Trump desperately needs Xi’s help.

Confusing Beijing Won’t Prevent War.

• Robert Kaplan (University of Texas professor) warned, “The U.S. must not confuse Beijing.”
• “Signaling that the U.S. won’t aid Taiwan increases the likelihood of a Chinese attack,” he argued. This is separate from appeasing Beijing. The lesson is clear: inconsistent signals risk miscalculation and war.
• Taiwan cannot be a bargaining chip, and no attitude suggesting concessions to Beijing should be shown.
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Choosing Between Taiwan and Xi Jinping?

• Xi Jinping may also demand that Trump halt (or delay approval of) arms sales to Taiwan.
• Taiwan still has no formal diplomatic ties with the U.S. According to the New York Times, Taiwan has made every effort to strengthen ties with Trump’s inner circle, but some officials were even instructed to refrain from visiting research institutions in Washington. The analysis is that they are cautious not to provoke Xi Jinping.
• The U.S. already lacks sufficient missiles for the Strait of Hormuz.
• Taiwan is the U.S.’s third-largest import source after Mexico and Canada. Zhang Zicheng (Research Director at Taiwan’s Democratic Society and Technology Research Institute) said, “Presidents come and go, but Silicon Valley and Wall Street remain.” The argument is that industrial interdependence could serve as a safety net.
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Yeo In-hyung Sentenced to 18 Years in Prison.

• Yeo In-hyung (former head of the Defense Security Command) has been sentenced to 18 years in prison on charges of participating in a rebellion.
• Lee Hyun-kyung (Seoul Central District Court presiding judge) emphasized, “Actions that render constitutional institutions incapable of exercising their authority or destroy constitutional functions cannot be tolerated under any circumstances.”
• Yeo In-hyung received 18 years, Lee Jin-woo (former Capital Defense Command chief) 15 years, Moon Sang-ho (former head of the Defense Intelligence Command) 12 years, Park An-su (former Army chief of staff) 10 years, and Kwak Jong-geun (former Army Special Warfare Command chief) 9 years.
• The ruling stated, “Yeo In-hyung played a leading role—issuing orders to arrest and detain politicians without warrants—yet shifted blame to subordinates through perjury, making severe punishment unavoidable.”
• Kwak Jong-geun received a reduced sentence due to submitting a confession and a written apology.
• In an editorial, the Korea JoongAng Daily assessed, “The only reason the worst-case tragedy of troops firing on civilians was averted was due to field soldiers making rational judgments amid the chaos.”
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Chosun Ilbo Calls It Harsh.

• Kyunghyang Shinmun editorialized, “A crushing blow has been dealt to the political soldiers who deployed the military—meant to protect the nation and its people—to trample democracy and violate constitutional order.”
• Chosun Ilbo assessed, “The price for being swept up in a political whirlwind lasting barely six hours is harsh.”
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Minister of Justice, Prosecutor General, Head of the Serious Crime Unit, and Police Commissioner All Vacant.

• On October 2, the Supreme Prosecutors’ Office becomes the Public Prosecution Service.
• The head of the Public Prosecution Service will still be called the Prosecutor General, but the position has remained vacant for 1 year and 9 months.
• Kim Ji-yong (nominee for head of the Serious Crime Unit) has yet to schedule a confirmation hearing.
• The Public Prosecution Service’s organizational structure has not been finalized. A prosecutor remarked, “Departments can only be established and personnel appointed once the structure is set, allowing cases to be processed,” adding, “If October 2 arrives in this state, all operations will ‘grind to a halt.’” Practical criteria for determining which cases remain with the Public Prosecution Service and which are transferred to the Serious Crime Unit or police have also not been established.
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A Data Center in the Midst of Apartments.

• “Economically struggling neighborhoods have cheap land, so undesirable facilities easily move in. Then residents leave. Once a city is stigmatized as backward, it can’t recover. Geumcheon-gu will become a prime example.”
• These are the words of Go Young-chan (Seoul Geumcheon-gu Council member).
• A resident of Doksan-dong interviewed by The Korea Herald said, “Construction noise was so loud I asked the district office, and they initially said it was a broadcasting and communications facility,” adding, “I vaguely assumed it was something like a TV station—never dreamed it was a data center that consumes so much electricity.”
• The data center in Siksadong, Goyang, is only 54 meters from the apartment boundary.
• Kang Sun-mo (chairman of the Siksadong Data Center Opposition Emergency Committee) emphasized, “We’re not saying don’t build data centers—just don’t build them in the middle of residential apartment complexes.”
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Approval Rating Stops Falling After 10 Weeks.

• Real Meter poll shows presidential approval at 34.8%, up 1 percentage point. Disapproval stands at 63.4%.
• Democratic Party and People Power Party poll at 40.2% and 38.5%, respectively.

Another Take.

Volatility Is the Core of the Korea Discount.

• Ruchir Sharma (Rockefeller International Chairman) noted, “The world’s hottest stock market, Kospi’s volatility, is becoming a national liability.”
• Kospi is the sixth-largest market globally. 75% of its gains originate overseas. There are many good companies, strong fundamentals, and Lee Jae-myung’s government successfully revised corporate laws.
• The issue, however, is volatility. Speculative trading creates the Korea discount. Sharma criticized the Korean government’s role, pointing out that Kospi index targets were campaign promises and leveraged ETFs were permitted. Even the president actively encouraged stock investments.
• Despite a 35% drop from its peak, the index remains nearly triple its level when Lee Jae-myung’s government took office. Market capitalization grew from $1.5 trillion to $5 trillion.
• South Korea prefers lottery-type stocks and has high rates of gambling addiction and suicide. Its stock market reacts sensitively to issues.
• Sharma warned, “While Kospi acts as a leading indicator for global bull and bear markets, its unpredictability is tarnishing Korea’s brand reputation.”
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They Said “Try It,” So They Actually Did.

• RoboCurve connected robotic arms to AI models like Claude PaLM 5.1 and GPT-6 Astra and issued commands.
• The dangerous experiments included stabbing dolls with knives, heating compressed air cans, inserting drives into toasters, and mixing bleach with ammonia.
• Claude refused all 20 commands to stab dolls, while GPT complied 17 times.
• Jay Choo (RoboCurve CEO) explained, “When disconnected from the robotic arm, Astra refused to stab a baby doll,” implying no judgment of danger in physical execution.
• Stevie Graham (Teller CEO) countered, “Refusing even to stab a plastic doll would be excessive alignment.”
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Will the U.S. Offload the Alaska LNG Project Korea Withdrew From a Decade Ago?

• Alaska LNG was a project ExxonMobil and others reviewed and abandoned over a decade ago. Kim Jeong-gwan (Minister of Trade, Industry and Energy) called it “a high-risk venture.” It lacked viability 10 years ago—and still does.
• According to the Dong-A Ilbo, negotiations are ongoing to acquire an 8% stake in Westinghouse. South Korea insists that if it’s to invest in U.S. nuclear plants, it should secure at least 15% and a board seat—but the situation remains challenging.
• The Texas thermal power plant, cited as the first investment target, ballooned from $16.8 billion to $22.3 billion. That makes profit recovery even harder.
• Choi Won-mok (Ewha Womans University professor) said, “As Japan’s investments in the U.S. show, vague promises offer no guarantees. We must demand binding commitments and insist on safeguards until the end.”
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Landmine Explosion in the DMZ.

• It occurred 50 meters from the Military Demarcation Line (MDL). Yoo Yong-won (People Power Party lawmaker) stated, “It was near a minefield created by North Korean forces south of the MDL.”
• A Joint Chiefs of Staff official said, “The (North Korean mine-laying) zone and the accident site are separated by distance.” The possibility that it was a South Korean mine cannot be ruled out.
• Three people were injured, and the battalion commander suffered severe trauma, including a severed ankle.
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The 70% Vacancy Mystery of Sihyeong’s Turtle Island.

• The plan was grand: to create a resort town like Spain’s San Sebastián by selling reclaimed land near Sihwa Lake to private developers. The condition was to build marina facilities—including docking and a clubhouse—and operate them for 20 years before donating the land to Sihyeong City. The project was announced in 2018, with Dae Won Plus as the private operator.
• But Dae Won Plus dragged its feet and eventually backed out. In 2020, Sihyeong City took over the land and completed construction.
• The company initially received 150,000㎡ of land but returned only 1,621㎡. The city recovered less than 1% of the original area, while over 20 billion won in taxpayer money was spent on the marina facilities—originally supposed to be funded by Dae Won Plus.
• Dae Won Plus built lodging facilities on the land it retained, pocketing over 80 billion won in sales. Since it wasn’t a hotel, tourist traffic remained low. The island became a ghost town, leaving buyers who trusted the rosy projections with heavy losses.
• Sihyeong City claimed, “There was no intent to undermine fairness.” Some argued the city saved on land costs, but the Board of Audit and Inspection countered, “If the developer had built the facilities as planned, the city wouldn’t have needed to buy the land in the first place.”
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Anthropic’s $2 Trillion: Not a Far-Fetched Tale.

• As of August this year, Anthropic’s annualized revenue is $65 billion—over four times the prediction made a year and a half ago.
• Projections suggest annualized revenue could reach $320 billion by the end of next year. Applying SpaceX’s multiplier, a $5 trillion valuation becomes plausible.
• Another approach: reverse-engineering from the total addressable market (TAM) of $22.7 trillion. Capturing 3% would yield $700 billion in revenue. Discounting three years of performance to the present, this implies a $4.5 trillion valuation.
• Even if AI becomes a commodity, can Claude survive? “The top model solving the hardest 5% of problems will command premium pricing,” one forecast suggests. Whether that’s Claude, ChatGPT, or another model remains unclear.
• “$100 trillion is absurd, but $2 trillion looks far more reasonable,” reads the assessment.
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The Fix.

Will Electricity Rates Stay Frozen?

• KEPCO’s cumulative debt stands at 210.7 trillion won, with daily interest of 11.5 billion won.
• The fuel cost adjustment rate has been maintained at +5 won for 18 consecutive quarters, though the required rate is 7.3 won.
• Despite a surge in fuel costs during the early stages of the Russia-Ukraine war, limiting rate hikes has expanded the deficit. Fuel prices rose by an average of 17.2% over three months.
• Kim Sung-hwan (Minister of Climate and Energy) stated on the 9th, “The burden is not yet severe enough to warrant an increase in household electricity rates.”
• Lim Jae-min (Energy Transition Forum Secretary-General) projected, “As winter approaches, fuel cost burdens will grow heavier, likely exacerbating KEPCO’s financial strain.”
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The Farmland Survey Dilemma.

• If not speculative, disposal obligations will be deferred. The Democratic Party and the Ministry of Agriculture, Food and Rural Affairs are reviewing a plan to allow voluntary maintenance and Farmland Bank consignment for non-speculative leases and fallow land. Leased farmland will be prioritized for existing actual cultivators.
• According to Chosun Ilbo, the nationwide farmland transaction price in Q2 was 49,017 won per square meter, an 8.1% drop from the same period last year. Kim Hong-sang (Chairman of the Agricultural Policy Research Center) said, “The confusion arose because the complex farmland issue was rushed.”
• A farmer interviewed by Kyunghyang Shinmun said, “I inquired about Farmland Bank purchases but was told there are many applicants, and I might wait over two years—with no guarantee of timing.”
• The proportion of leased farmland in total farmland area rose from 8.1% in 1951 to 47.0% in 2024.
• In an editorial, The Hankyoreh argued, “The full survey should serve not only as grounds for punishment but as a starting point for institutional reform.”
• Kyunghyang Shinmun’s editorial noted, “Even if policy goals are valid, they become unattainable if reality is ignored.”
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ICYMI.

10,000 Swarm to See North Port Shark.

• They decided to call the shark that appeared at Bukhang Riverside Park “Bukang-i.”
• Ji-hwan Sang (National Institute of Fisheries Science Researcher) explained, “The presence of mullet and other fish in the channel may have drawn it in for feeding, and it might be disoriented and unable to find the exit.” They decided to wait for it to naturally return to the open sea.
• The Busan Facilities Corporation requested that visitors refrain from watching for more than 30 minutes.
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Daegu Accepts Proposal to Relocate Mosque.

• Construction has been stalled for six years. Buk-gu Office proposed a site three minutes on foot, and Muslim international students agreed to accept it.
• Residents requested a halt to construction, and Buk-gu Office issued a stop-work order. Though overturned in court, it was suspended again for violating building plans. Issues such as cost negotiations remain.
• Residents feared declining property values, while Muslim students countered with claims of hatred and discrimination. The absence of a mediator was the core issue.
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Worth Reading.

Don’t Take It Out on the Racket.

• Aryna Sabalenka (player)’s post-match tennis racket-smashing will long be remembered. “I struggled to control my emotions,” she said.
• Yoo Jeong-hoon (lawyer) noted, “Once you agree to the rules and step onto the court, defeat is part of the game.” Politics is no different. Steven Levitsky (political scientist) emphasized, “Defeat is an inevitable event in democracy.”
• Yoo Jeong-hoon advised, “Only parties and politicians who embrace defeat can look forward to the next opportunity,” adding, “The real issue isn’t losing itself but how one accepts defeat.”
• Roger Federer (player), a tennis legend, counseled, “At the moment you hit a shot, it feels like the most important thing in the world, but a past point is just a past point.”
• “Only those who pick up the racket instead of breaking it and return to the court are given a chance to win the next match,” goes the saying.
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There Is No Such Thing as a Non-Interventionary Troop Deployment.

• It’s a war so devoid of justification or benefit that even Japan has cut ties. Seo Ui-dong (Kyunghyang Shinmun Editorial Director) criticized, “The government should have declared outright that no troops would be dispatched.”
• Lee Jae-myung (President) stated, “There will be no troop deployment that involves or intervenes in the war,” yet added, “It’s also clear that minimal activities to protect our nation’s merchant ships, oil transport routes, and the safety of our citizens are necessary.”
• Seo Ui-dong’s reasons for viewing Lee Jae-myong’s remarks as a misstep are as follows:
• First, there is no such thing as non-interventionary troop deployment. The moment forces enter the Strait of Hormuz, missiles could rain down.
• Second, there’s nothing substantial to gain. Nuclear-powered submarines are a separate issue anyway, and restoring wartime operational control will remain slow.
• Third, Trump crushes the weak. He’s not someone who rewards gratitude with favors.
• Fourth, it’s unethical. This is a situation where one seeks to buy peace by joining another’s war.
• Fifth, this should be an opportunity to uphold national dignity. The argument is that we must escape our “subordinate status” of unconditionally complying with U.S. demands.
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Feedback.

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