Presidential Chief of Staff: Lim Kwang-hyun.

• “A personnel move that caught everyone off guard,” some assess.
• Lim Kwang-hyun (Chief of Staff to the President) is a member of the 38th Administrative High Examination class, serving at the National Tax Service from 1994 to 2022. He was elected as a Democratic Party proportional representative in 2024, then tapped as National Tax Service Commissioner in July last year. His political experience amounts to one year in the National Assembly.
• One Democratic Party lawmaker evaluated, “They chose someone with an element of surprise over a figure with strong ties to close associates.”
• According to Kyunghyang Shinmun, “Unlike the heavyweight personnel initially expected, this choice may fall short of overcoming the national crisis.” Analysis suggests a judgment to overcome the crisis through administration rather than politics.
• Lee Jae-myung (President) wrote on X, “I believe he will achieve as much as, if not more than, Hunsik.”
• Jeong Jeom-sik (People Power Party floor leader) criticized, “In these grave times, appointing the National Tax Service chief as Chief of Staff was unimaginable,” adding, “This reflects a lack of awareness of the national crisis.”
• A ruling party insider met by Chosun Ilbo assessed, “It doesn’t read as a message of renewal or change.”
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Lim Kwang-hyun’s Brother-in-Law: Lee Seung-yeop.

• Lee Seung-yeop (Lee Han Law Firm), who defended Lee Jae-myung in the North Korea remittance case and others, is Lim Kwang-hyun’s brother-in-law. He was once considered as a candidate for Constitutional Court justice.
• Critics argue, “Legal fees are being repaid through public office.” In an editorial, Kyunghyang Shinmun noted, “Personal connections should not have played a role.”
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Secretary Over Heavyweight Advisor.

• Park Sung-min (CEO of Political Consulting Min) pointed out, “It feels more like a secretary than a chief of staff.”
• Choi Hye-jeong (Hankyoreh Senior Managing Editor) analyzed Lee Jae-myung (President)’s personnel pattern into three categories:
• First, selecting from Lee Jae-myung’s inner circle,
• second, preferring loyalists with whom he can work in sync,
• third, favoring those who follow orders rather than equals in a comradely relationship.
• Lim Kwang-hyun (Chief of Staff to the President) fits this profile perfectly. Choi Hye-jeong assessed, “Instead of a heavyweight advisor to control Lee Jae-myung’s ‘solo’ governance and coordinate government-party relations, a ‘secretary’ loyal to presidential support has taken the role.”
• Choi Hye-jeong emphasized, “The ability to ‘speak candidly’ is most critical.” Advising the president to reduce social media activity is Lim Kwang-hyung’s first task.
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What Matters Now.

Kim Ji-yong’s Confirmation Hearing: Democrats Turn Up the Heat.

• “When a thief breaks into a house and tries to steal, the person who opens the door is called an accomplice to theft. Kim Ji-yong (nominee for head of the Seoul Central District Prosecutors’ Office) is an accomplice to political prosecutors.”
• These were the words of Park Joo-min (Democratic Party lawmaker) during Kim Ji-yong’s confirmation hearing.
• In 2020, there was a physical altercation while Jung Jin-ung (then deputy chief prosecutor at Seoul High Prosecutors’ Office) was conducting a search and seizure of Han Dong-hoon (then deputy chief prosecutor at the Supreme Prosecutors’ Office). Han Dong-hoon filed a complaint against Jung Jin-ung for assault by a public official, and Kim Ji-yong (then deputy chief prosecutor at Seoul High Prosecutors’ Office) approved the indictment.
• Kim Ji-yong had previously claimed he opposed the indictment for assault by a public official, but internal review documents from the time confirmed he had suggested, “Responsibility for professional negligence resulting in injury should be pursued.”
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“I Opposed It Until the End” — Now?

• Controversy also surrounds the so-called Kim Hak-eui (former Vice Minister of Justice) illegal withdrawal case. While failing to prosecute Kim Hak-eui — the figure at the center of the villa sex-for-favor scandal — they indicted Lee Kwang-cheol (former Senior Secretary for Civil Affairs) and others for blocking Kim Hak-eui’s departure, but all received acquittals. Kim Ji-yong was in the command chain that approved Lee Kwang-cheol’s indictment during his tenure as head of the Supreme Prosecutors’ Office Criminal Division.
• When asked, “Why didn’t you stop the indictment?” Kim Ji-yong replied, “I opposed it until the end.”
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“A Change of Heart?”.

• Kim Ji-yong once opposed abolishing prosecutorial investigative authority while serving as head of the Supreme Prosecutors’ Office’s Criminal Division in 2022.
• When Kang Myeong-gu (People Power Party lawmaker) asked, “Has your stance reversed 180 degrees?” he replied, “I emphasized potential gaps in victim protection.”
• When Park Deok-hum (People Power Party lawmaker) asked, “Who is the first political prosecutor?” Kim answered, “Yoon Suk-yeol.”
• Asked, “Does Han Dong-hoon qualify?” he said, “It would be hard to deny.”
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“Considering Impeachment for Cho Hee-dae.”.

• “Even voluntary resignation has its limits.”
• These were the words of Kim Min-seok (Democratic Party leader). Cho Gye-won (Democratic Party spokesperson) explained, “It means impeachment is also not off the table.”
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“Democratic Party Mass Joined Shincheonji.”.

• Kim Min-seok (Democratic Party leader) made the remark again. Regarding suspicions that Shincheonji intervened in the Democratic Party leadership race, he only hinted at it this time. He said the decision on disclosure was undecided and claimed, “I don’t remember the scale of membership.”
• Speculation arises that the “stone-cleaning” conflict may reignite. Jeong Cheong-rae (former Democratic Party leader) stated, “Those trying to cover it up are the culprits” and demanded, “Disclose everything as it is.”
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Kang Sun-woo Sentenced to 2 Years, 6 Months, Remanded in Custody.

• All charges were found guilty. Kang Sun-woo (independent lawmaker) was confirmed to have received a shopping bag containing 100 million won in cash from Kim Kyung (former Seoul Metropolitan Council member).
• The court rejected the claim that it was a staff member’s unauthorized act.
• The bench revoked bail, citing risks of evidence tampering and flight.
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Monthly Rent Surges 9.7%.

• One year since the 10.15 measures.
• Seoul apartment monthly rent index rose 9.7% over 1 year and 2 months since the Lee Jae-myung administration began—more than the 7.3% cumulative increase over the prior decade.
• Seoul apartment sales index rose 10.4%. 87 consecutive weeks of gains.

Deep Dive.

“Cut Live Broadcast of State Council Meetings.”.

• Over a dozen ministers petitioned Han Suk-jung (Prime Minister). As heated debates become difficult, policies increasingly retreat or cause confusion.
• There have been several incidents.
• When Lee Jae-myung (President) questioned whether the juvenile delinquency age threshold was “too lenient,” Won Min-kyung (Minister of Gender Equality and Family) failed to rebut, nullifying the public discussion’s outcome.
• After Lee Jae-myung noted that “even farmland has become a speculation target,” a full investigation began. Cases of acting first and cleaning up later are increasing.
• The enforcement decree addressing the “Yellow Envelope Law’s overly broad labor dispute scope” only fueled controversy.
• A State Council attendee met by The Korea Times said, “If someone objects with ‘No’ during a live broadcast, what happens to the president’s dignity?” and added, “Many ministers bite their tongues even when they have something to say.”
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A Major Shift in Population Policy Is Needed.

• The national population strategy declaration ceremony took place.
• No fertility rate target was set. The goal is to raise life satisfaction from 6.6 to 7.0 points by 2030 and increase economic activity participation from 71.8% last year to 74% by 2030.
• Two specific indicators were also introduced. First, youth employment rate will rise from 45% to 50%. Second, elderly poverty rate will drop from 36% to 30%.
• Lee Sang-lim (Senior Researcher, Seoul National University Population Policy Research Center) assessed, “There doesn’t seem to be much social consensus.”
• Lee Chul-hee (Seoul National University Professor) pointed out, “Reforms across social structures—education, working hours, youth employment conditions—were not sufficiently reflected.”
• The Hankyoreh criticized in an editorial, “It’s closer to a department store-style listing.”
• The Kyunghyang Shinmun also noted, “It could end as mere rhetoric.”
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“Semiconductors Can’t Solve Everything.”.

• Lee Chang-yong (former Bank of Korea Governor) unleashed provocative analysis and forecasts in an interview with the YouTube channel Sukka World.
• First, the semiconductor cycle could end earlier than expected. Now is the time to preserve fiscal capacity rather than spend recklessly. Currently, we’re benefiting from the U.S. blocking Chinese advances—but the tide could turn.
• Second, young people must adjust their wage and employment expectations to enter the market. The corporate reluctance to hire new talent must change.
• Third, lending money for home purchases drives up prices. Expanding supply alone isn’t enough. Price caps on pre-sale apartments were a national lottery. The influx into Seoul must be redirected.
• Fourth, older generations must sell homes and move out for the young to move in. Raise property taxes and lower transaction taxes. Debating “fairness” leads nowhere.
• Fifth, designate a city to buy taxi licenses and test autonomous driving.
• He also advised youth: “Do what you love. If you don’t know what that is, eliminate what you hate one by one.”
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U.S. Inflation Shock.

• September consumer prices rose 3.7% year-on-year. Prices outpaced wage growth, shrinking real incomes.
• Stock futures fell immediately after the announcement, and 10-year Treasury yields rose. Speculation grows that the Fed may raise rates further.
• All three major U.S. indices declined. The S&P 500, Dow, and Nasdaq fell -1.11%, -0.09%, and -1.88% respectively.
• Higher rates complicate financing. AI-related stocks suffered steep losses. Nvidia, Broadcom, and AMD dropped 3.2%, 3.1%, and 5.7% respectively. CoreWeave and Oracle also plunged 15.5% and 8.8%.
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KOSPI 6,008.8.

• Six consecutive days of decline. A 0.4% drop following a 5.5% plunge the previous day.
• Margin loan balances stand at 34 trillion won, while investor deposits total 100 trillion won. Rising margin trading and margin call liquidations signal growing risk.

Another Take.

Debt Ratio Declines.

• IMF revised South Korea’s general government debt ratio downward from 54.4% to 46.1% for this year. The metric includes central and local government debt plus non-profit public institution liabilities.
• Debt itself did not decrease—it was the denominator that grew as nominal GDP expanded.
• The Ministry of Economy and Finance assessed: “The ‘virtuous cycle of fiscal policy and growth’—where active fiscal spending supports economic expansion, which in turn strengthens tax revenue and fiscal sustainability—has been reflected.”
• The G7 average stands at 123.6%, while the advanced economies’ average is 107.6%.
• Yang Joon-seok (Catholic University Professor) warned, “If the semiconductor boom ends and GDP growth slows, the debt ratio could rise sharply.”
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Semiconductors: Half of Exports, Half to China.

• Semiconductors account for 49.9% of exports. Shipments to mainland China and Hong Kong totaled $26.6 billion, representing 44.1% of the total.
• Price surges also played a role: DRAM and NAND prices nearly septupled.
• Park Sang-in (Seoul National University professor) remarked, “The issue isn’t semiconductors doing well—it’s that nothing else is visible besides semiconductors.”
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“I Thought I Should Create Some News.”.

• The suspect, who injured 10 people with a weapon in a commercial district, made this statement. He was wearing an electronic ankle monitor for attempted murder.
• “I chose someone who looked weaker than me (as the target),” he said.
• Citizens confronted him with chairs and trays. Na Hyun-jun (citizen) said, “All I could think was that we had to stop him.”
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The Fix.

Is One More Medical School Enough?

• National Medical Professional Graduate School to open in Namwon, North Jeolla.
• Ok Min-su (professor of preventive medicine at Ulsan Medical School) emphasized, “It should take responsibility for areas where it’s difficult to secure enough personnel under the existing system—such as infectious diseases, disaster response, correctional, fire, industrial accident, and veterans’ healthcare.”
• “The institution must be a special-purpose medical school training doctors needed by the state and society but insufficiently supplied by the current system.”
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Megaproject Power Demands May Be Inflated.

• Seok Gwang-hoon (Energy Transition Forum senior researcher) warned, “Bubbles could burst before infrastructure is even completed.”
• Circular financing among Big Tech firms is risky, and macroeconomic conditions are unsettling. Above all, token prices keep falling.
• Seok emphasized, “The power sector has a lock-in effect: once invested, it cannot be recovered even if demand changes,” adding, “Demand forecasts must be revisited.”
• Moon Hyo-dong (Green Energy Strategy Institute deputy researcher) noted, “The 2030 power demand forecast has already increased by 12% compared to the original plan,” analyzing, “If renewable energy adoption lags, LNG facility utilization could rise to 50%.”
• Lee Seung-hyun (Hanyang University professor) pointed out, “The structure only benefits OpenAI and Anthropic.” He explained, “Power may shift to cheaper regions, leaving us with infrastructure we built but cannot use.”
• “South Korea seems too business-friendly,” said Hong Jong-ho (Seoul National University professor). “In the U.S., companies are forced to resolve their own electricity and water needs due to public opposition, but here, corporate demand projections are accepted as-is.”
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Creating 100,000 Youth Care Jobs.

• It’s a plan to create civil-service-level positions with starting salaries of 40 million won and housing support.
• The government is also considering establishing a dedicated Care Ministry.
• In an editorial, The Hankyoreh pointed out, “No funding or implementation plans are included.”
• Cho Young-tae (Seoul National University professor) said, “It’s hard to see this as a practical policy.”
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Even Four Employees Can Form a Union.

• “You should have mentioned it’s a workplace with fewer than five employees. Labor laws don’t apply here.”
• Workplaces with fewer than five employees exist in a legal gray zone. Even workplace harassment cannot be reported.
• South Korea’s workforce in such small businesses numbers 3.9 million—17.4% of all wage earners. The 5-Person Minimum Union branch of Workplace Bullying 119 has launched, open to all industries regardless of sector.
• “You are not the strange one. What’s strange is a state that leaves you outside the law,” said Kim Min-ji (co-head of the Under-5-Person Branch) at the launch.
• Kim Ji-hwan (Kyeongyang Shinmun editorial writer) emphasized, “The dignity and rights of workers cannot depend on the size of their workplace.”
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Start Reforming Fragmented Contracts in the Public Sector.

• The issue lies in repeated short-term contracts, multi-tiered subcontracting that diffuses responsibility, and the practice of diverting wages designated for labor into other business costs.
• Though the government issued guidelines to protect contracted workers, critics argue that central government efforts alone are insufficient.
• Jeong Heung-joon (Seoul National University of Science and Technology professor) warned, “If the intent is circumvented through superficial pre-screening systems and selective employment succession, meaningful change will remain distant.”
• “The public sector itself must establish a turning point where job stability and improved treatment for workers become critical benchmarks.”
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ICYMI.

Character AI Files for Bankruptcy Protection.

• Monthly users exceeded 20 million, and it once neared a $1 billion valuation, but it couldn’t sustain operational costs.
• It lost $8–9 million monthly.
• Warnings emerge about Upstage (뤼튼) too. Last year, its revenue was 47.1 billion won, but operating losses reached 58.9 billion won.
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How to Become a Chess Grandmaster by Learning from AI.

• After Kasparov vs. IBM in 1997, some said chess was over—but it remains popular.
• Arab Dengla (Chess Grandmaster) learned chess using two AI engines. The first excels at shocking, fearsome attacks; the second at quiet, sustained pressure. They calculate tens of thousands of variations in seconds and deeply analyze unexpected moves. Their assessments may diverge, but the final judgment lies with humans.
• Arab Dengla emphasized, “The generation training with AI engines today is the strongest in history.” Study with AI, but in competition, win through intuition and judgment. “When AI raises the bar, we surpass it.”

Testing Conversations with AI Avatars.

• McKinsey has decided to introduce a test for entry-level consultant hiring where candidates converse with AI avatar clients.
• It’s designed to replicate 80% of daily work scenarios.
• They’re not looking for pre-prepared answers but for improvisation.
• It can reduce variability that arises from interviewer bias.
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Half of New Medical Students Aren’t High School Seniors.

• Among this year’s 3,054 new medical students at 38 universities, only 48%—1,466—were current high school seniors.
• 145 students entered medical school five or more years after graduating high school.
• Medicine is one of the few professions where practitioners can work well past retirement age.
• An increasing number of corporate professionals are transitioning to medical school.
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Worth Reading.

Did Trump Sense Defeat?

• Trump is acting like a cornered animal. He threatened public executions and abruptly attacked Ukraine while reaching out to Russia. Projections suggest Democrats will regain majorities in both the Senate and House in the midterms.
• Jamelle Bouie (New York Times columnist) predicted, “If a Democratic-led Congress actually materializes, it could be a lifeline for American democracy.”
• Bouie emphasized, “Voters don’t want compromise—they want accountability.” The message is clear: Democrats must seize this moment.
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No Place for Me in This Case.

• A victim in a criminal case said, “Every time I see the defendant lying, it feels like I’m being mentally assaulted.”
• Nam Ji-won (Khan Newspaper Gender Desk) pointed out, “In such situations, uncovering substantive truth, healing and recovery from harm, and trust in the judicial system all remain distant.”
• The argument is that “we must move beyond the binary of ‘defendant’s right to defense vs. victim’s rights’ and allow victims to become a central axis of the process.”
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Why a Soldier Who Fought the Enemy Now Fights the State.

• Jeon Chang-seong (former sergeant major), who suffered a shoulder injury in the Battle of Yeonpyeong, is suing the government.
• Even with disability pension, the gap compared to regular military retirement pay is only around 300,000–400,000 won per month. Jeon said, “Honor is more precious, so I fight the state.”
• The issue isn’t the amount—it’s how the state acknowledges sacrifice.
• According to Shin Sung-sik (JoongAng Ilbo senior reporter), the U.S., UK, and Germany cover full military pension costs. In South Korea, soldiers pay half, and pension payout rates are 10–22 percentage points lower.
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What Longevity Studies Don’t Say.

• Aging is the inflection point where repair speed fails to keep up with damage. We can replace kidneys or hearts, but not muscle or brain cells.
• The New York Times compiled “Six myths longevity experts wish would die.”
• First, living long isn’t as important as living long and healthy. Health span matters more than lifespan. It’s fortunate when lifespan extends while maintaining health, but that’s not the goal.
• Second, health span can shrink. In the US, life expectancy once rose while health span decreased. As cancer and heart disease were tackled like whack-a-mole, dementia increased. Chronic diseases in youth also rose.
• Third, no drug extends lifespan. NAD+ or peptides touted as anti-aging have unproven efficacy, and growth hormones cause significant side effects in the elderly.
• Fourth, women live longer on average but suffer more illness and disability in old age.
• Fifth, weight loss is dangerous—it means losing muscle and bone.
• Sixth, good management doesn’t guarantee longevity. Half of lifespan is genetic, and genetics weigh even more after age 95.
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South Korea’s Pummeling of Ukraine.

• “Is it truly the attitude of an advanced nation to belittle and mistreat a country merely because it is impoverished, facing the worst national crisis, and has an uncertain future?”
• Volodymyr Zelenskyy (Ukrainian President) was indeed at fault. If we try to understand, he may have wanted to criticize North Korea on the international stage and build an anti-North Korea coalition.
• Park No-ja (professor at the University of Oslo, Norway) analyzed, “South Korea seems to have shifted its stance in line with changes in the U.S. position.” The analysis is that “the South Korean government’s unprecedentedly harsh demands—such as public apologies, which it rarely makes toward wealthier nations than Ukraine—stem from the absolute asymmetry between South Korea and Ukraine.”
• Park No-ja emphasized, “Just as South Korea accumulated capital by exporting manufactured goods to global markets and became a wealthy nation, it must also bear ‘responsibilities’ befitting that wealth in the international community.”
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Screen Time for the President.

• Only the president seems unaware that his X activity is eroding his approval ratings.
• Lee Joo-young (Kyunghyang Shinmun head of editorial content) pointed out, “Repeatedly sharing favorable posts and rebutting opposing views may reinforce his conviction that his judgment is correct, rather than gauging the public’s overall sentiment.” The analysis: “He believes he’s communicating directly with citizens, but in reality, he’s trapped by information he selects and reactions from his supporters.”
• “What’s needed isn’t more posts—it’s refining policy details and honing decision-making processes. Repeating his stance on social media and rebutting dissent point-by-point won’t transform public distrust into trust.”
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Today’s State Council Audit.

• Slow News is covering the State Council Audit intensively.
• [Special Audit Coverage] updates twice daily.
• [Rep. ◯◯◯’s Audit Notes] bundles key issues by individual lawmakers. Top 12 lawmakers are selected daily.
• [Today’s Corporate Issues] examines major corporate disputes.
• [Daily Audit Report] tracks key issues and context by committee.
• The list below compiles October 14 audit reports:
• October 14, 2026 Education Committee audit report.
• October 14, 2026 Culture, Sports, and Tourism Committee audit report.
• October 14, 2026 Agriculture, Food, and Oceans Committee audit report.
• October 14, 2026 Health and Welfare Committee audit report.
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