It Wasn’t a Wave—It Was a Tsunami.

• The U.S. Democratic Party secured majorities in both the Senate and House of Representatives.
• As of 7:30 AM Korean time, the Senate stands at 54 seats for Democrats and 44 for Republicans, while the House counts 237 and 147 respectively—a “blue tsunami” far exceeding initial expectations.
• Even long-standing Republican strongholds collapsed. Democrats elected a federal senator in Texas for the first time since 1988, in Kansas since 1932, and in South Carolina since 1998.
• In Texas, Greg Abbott (Governor) suffered defeat, and in Maine, Susan Collins (Senator), elected five times, lost her bid.
• Axios assessed, “Trump has been the axis of U.S. politics for the past decade, but that era is finally closing.”
• In an editorial, Dong-A Ilbo forecasted, “Washington politics split between a ‘Republican president’ and a ‘Democratic Congress’ has become the reality we must confront for the next two years.”
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Today’s Front Pages.

• Hankyoreh’s lead headline: “America’s Blue Wave, Judgment on Trump.”
• Kyunghyang Shinmun: “Rage Against Trump, America Overturned.”
• Chosun Ilbo: “Trump’s Future Grows Bleak.”
• JoongAng Ilbo: “America Has Had Enough of Trump.”
• Dong-A Ilbo’s keyword: “Angry American.”
• Hangyeoreh, Kookmin Ilbo, and Segye Ilbo: “Blue Tsunami.”
• Seoul Shinmun: “Angry America Swallows Trump.”
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The Golden Age Trump Promised Never Arrived.

• Economic anxiety ran high. He boasted of ending wars, but instead started new ones.
• He dismissed soaring gasoline prices and even bragged about oil companies reaping record profits.
• A last-minute $5,000 cash pledge failed to sway voters.
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Midterms Became a Referendum on Trump.

• “Vote as if I’m on the ballot,” he repeated—and voters did exactly that. Sending Trump avatars to key battlegrounds failed.
• Redistricting also backfired: attempts to seize more Democratic seats endangered Republican incumbents.
• This wasn’t a victory limited to specific regions or groups. Exit polls show increased Democratic support across nearly all demographic categories.
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What Matters Now.

Trump’s Youth and Latino Supporters Turned Away.

• NBC exit polls showed 72% of voters aged 18–29 backed Democrats—up from 54% in the 2024 election. Democratic support among Latino voters rose from 51% to 62%.
• According to the Wall Street Journal, Democrats also led Republicans by 17 percentage points among independents—a gap that was just 6 points in 2024.
• Axios analyzed that the “multiracial, working-class coalition” that propelled Trump’s return has fractured.
• Hakeem Jeffries (Democratic House Minority Leader) declared in his victory speech, “We will make this country affordable for all Americans.” He is likely to become the first Black Speaker of the House.
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Billionaires’ Blunder.

• That was the question posed by Gina Inofie (Texas Governor-elect): “Is Texas for its residents? Or are we squatters in a billionaire’s world?”
• James Talarico (Texas State Senate-elect) said, “The people at the top—Elon Musk, Rupert Murdoch, Mark Zuckerberg—they spend enormous time and energy making us angry and divided because our unity threatens their wealth and power.”
• The Republican Party poured $210 million into Ken Paxton’s (Republican candidate) campaign, with $160 million coming directly from Elon Musk (Tesla CEO). They ran AI-generated ads depicting Talarico in a dress or scribbling on a Bible—but it backfired.
• Talarico raised $150 million, with 97% in donations under $100.
• This was an election that judged Big Tech oligarchs aligned with Trump. “We just took Texas back,” Talarico said.
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“I Wasn’t Even on the Ballot.”.

• “I don’t want to think of this as my defeat. I wasn’t on the ballot.”
• This is Trump’s way of claiming a moral victory.
• In an interview with the New York Times, he said he was “absolutely willing to accept those results” and “prepared to cooperate with Democrats.” He spoke coolly, but his stance could change.
• He also criticized Fox News for “spending too much time covering crazy Democrats who hate Trump.”
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Stocks Rally as Trump Falls.

• Yesterday, the Kospi plummeted before rebounding sharply. It fell over 4% to 5,421 during intraday trading before closing 0.6% up at 5,683.8. Foreign investors net-sold 2.5 trillion won.
• Political turmoil may continue, but it’s a positive signal for markets for now.
• Under a divided government, there’s less fiscal expansion or drastic policy shifts. Arun Sai (Pictet Asset Management strategist) said, “Legislative gridlock is good for markets.”
• AI bubble fears may also ease. In Texas, a candidate who pledged to delay data center development was elected governor.
• All three major U.S. indices rose yesterday. The S&P 500, Dow, and Nasdaq gained 1.58%, 3.03%, and 1.44%, respectively.
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The System’s Victory.

• The New York Times editorialized, “The system has held.”
• Despite extreme gerrymandering and attempts to block mail-in voting, legal activists and courts defended the process. The decentralized structure limiting federal overreach proved effective.
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The Democratic Party Has Changed.

• It sent a strong signal of renewal.
• Unlike during Trump’s first term. It focused its message on economic anxiety and avoided falling into Trump’s traps. It didn’t just stoke anger—it set the agenda.
• The framing strategy worked. It hammered the cost-of-living issue to the point of monotony, linking it to corruption.
• Jon Ossoff (Georgia Senate-elect) argued, “Nothing works properly because of corruption.” “That’s why insurance companies can deny cancer treatment even after decades of premiums—and get away with it.”

Historic Firsts Poured In.

• Women, Black, Indigenous, Latinx, Muslim, and LGBTQ+ candidates broke through in governor and Senate races long dominated by white men.
• Abdul El-Sayed (Michigan Senate-elect) is the first Muslim U.S. senator in American history.
• Peggy Flanagan (Minnesota Lt. Governor) became the first Indigenous woman in the Senate. She is Ojibwe and a member of the White Earth Nation.
• Chris Pappas (New Hampshire House-elect) is the first openly gay man elected to the Senate.
• The number of Black women senators reached three: Juliana Stratton (Illinois Senate-elect), Lisa Blunt Rochester (Delaware Senate-elect), and Angela Owens Brooks (Maryland Senate-elect).
• Keisha Lance Bottoms (Georgia Governor-elect, former Atlanta mayor) is the first Black woman governor in U.S. history.
• Deb Haaland (New Mexico Governor-elect, former Interior Secretary) is the first Indigenous woman governor. She is Laguna Pueblo.
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Deep Dive.

The Beginning of the End, What Lies Ahead in the Remaining Two Years?

• Trump’s term still has two years remaining. Some speculate the remaining two years will be far more unstable. Clashes are likely on every issue.
• Trump has already declared himself “Mr. Veto.”
• Robert Garcia (Democratic Congressman) advised, “Lawyer up,” and Trump retorted, “Buckle up.”
• Edward Luce (Financial Times columnist) predicted, “The Republican Party will enter election mode.” If the 2018 midterms marked the end of Trump’s beginning, the 2026 midterms are the beginning of the end.
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Cracks in the MAGA Coalition: What Lies Ahead for the GOP?

• Trump’s inner circle consists only of those who read his mood. The Republican Party must endure an unpopular war led by an unpopular leader for the next two years.
• JD Vance (U.S. Vice President), a likely presidential contender, is likely to exit alongside Trump.
• The MAGA coalition that supported Trump—Hispanic, Black, and non-college-educated white voters—has dissolved. The perception that immigration crackdowns have become extreme has spread.

Trumpism May Outlive Trump.

• Long goodbyes begin. Jason Riley (Wall Street Journal columnist) warned, “A successor who shares Trumpism could emerge.”
• Analysis suggests MAGA did not collapse—it was merely that Republican voters temporarily abandoned the party. Rahm Emanuel (former Chicago mayor) emphasized, “The key is whether this will be a transactional or transformational moment.”
• The argument is that Trumpism—opposition to free trade, attacks on legal immigration, contempt for liberalism and democratic norms—will not fade easily.
• Liz Smith (Democratic strategist) cautioned, “Good election results can mask weaknesses.” The sentiment is that anti-Trump feeling may not translate into trust in the Democratic Party.
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Will the People Power Party Cough Up 39.7 Billion Won?

• In the appeal trial of Yoon Suk-yeol (former president)’s election law case, the court dismissed the appeal. The original sentence of one year and six months in prison, suspended for three years, stands. An appeal to the Supreme Court is inevitable, but if the sentence becomes final, the People Power Party will have to return 39.7 billion won in election costs.
• The charges are twofold. First, Yoon denied introducing a lawyer to Yoon Woo-jin (former Yongsan tax office chief), but this was untrue. Second, he claimed he never met Jeon Seong-bae (Geonjin Law Firm) with Kim Keon-hee, but this was also false.
• The court’s citation of the Supreme Court precedent in Lee Jae-myung (president)’s election law case is noteworthy. The logic: since Lee was convicted, Yoon must be too.
• Lee’s case remains suspended after being remanded for a guilty verdict. In an editorial, Chosun Ilbo noted, “Since the remand trial is bound by the Supreme Court’s reversal, the guilty verdict is as good as final,” adding, “If the resumed trial imposes a fine over 1 million won, the Democratic Party will have to return 43.4 billion won.”
• In its editorial, The Hankyoreh observed, “Before dragging in the suspended trial of a sitting president—a constitutional matter—to justify their own disgorgement of election funds, the People Power Party should first declare a clean break with the leader of the insurrection, as a duty to the people.”
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“It Could Be a Path to Death.”.

• “It’s hard to understand politically or administratively. It seems like one of the paths the party is taking to its death.” These were the words of an anonymous senior Democratic Party lawmaker interviewed by The Hankyoreh.
• The Special Prosecutor Act for Manipulated Indictments passed the Legislative and Judiciary Committee yesterday. It could be put to a plenary session today.
• Among the 15 cases under investigation, eight involve Lee Jae-myung (President) being indicted: Daejang-dong, Wirye, Baekhyeon-dong, North Korea remittance, violation of the Public Official Election Act, instigation of perjury, Seongnam FC bribery, and misuse of corporate cards. Also included are suspicions of Kim Yong (former deputy director of the Democratic Research Institute) receiving money, the West Sea official shooting, statistical manipulation, and allegations of false reporting defaming Yoon Suk-yeol (former president).
• Kim Ui-gyeom (Democratic Party lawmaker) said, “We have completely removed any content related to whether to cancel the indictment.”
• The JoongAng Ilbo views it differently. The argument is that if the special prosecutor concludes the investigation was manipulated and transfers the case to the prosecution, the prosecution could cancel the indictment.
• Park Hyung-soo (People Power Party lawmaker) said, “It’s a clear privilege for a special prosecutor with combined investigative and indictment authority to handle only the president’s cases.”
• In an editorial, Chosun Ilbo criticized, “Who would call creating a ‘private special prosecutor’ fair?”
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Another Take.

Democratic Congress Takeover: What Does It Mean for South Korea?

• The calculus has changed. Tariff negotiations, shipbuilding cooperation, and nuclear-powered submarines have all become uncertain.
• Jang Sang-sik (Director of the Korea International Trade Association’s International Trade and Commerce Institute) predicted, “Demands to fulfill the $350 billion investment pledge could intensify.”
• Song Young-kwan (Korea Development Institute researcher) said, “These are areas unrelated to Congress anyway.”
• Koo Ki-bo (Soongsil University professor) forecasted, “Pressure to expand semiconductor investments in the U.S. could grow.”
• The transfer of wartime operational control is also subject to congressional oversight. Shin Beom-chul (former Vice Defense Minister) said, “Democrats might demand a more cautious approach to transferring operational control.”
• If states like Texas and Georgia halt new data center construction, memory semiconductor demand could slump.
• Shin Won-gyu (Korea Economic Organizations’ Global Economic Team Leader) stated, “The more legislation stalls, the more the Trump administration may rely on existing powers like tariffs and export controls.”
• In an editorial, Chosun Ilbo warned, “If the South Korean government attempts unilateral action, ROK-U.S. relations could face abrupt challenges.”
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Will Kim Jong-un Be Met?

• Chosun Ilbo noted, “We must also prepare for the possibility of pursuing a summit with Kim Jong-un (North Korean State Affairs Commissioner) as a means to shift the current phase.” The analysis suggests, “There could be sudden agreements such as recognizing North Korea as a nuclear state or reducing U.S. troops in South Korea.”
• The Hankyoreh analyzed, “Given that Kim Jong-un views Trump as ‘weakened,’ the likelihood of him agreeing to a summit has also decreased.”
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“Second Fake News.”.

• Lee Jae-myung (President) clarified his remark that “prices are falling remarkably.”
• His actual wording was, “Even in major areas, actual transaction prices are falling remarkably, though of course not everywhere.”
• The Korea Daily cited this and published an article titled, “[‘Housing prices plummeting’ presidential remark only correct for Gangnam… Seoul sees 90th consecutive week of rise],” stating, “22 areas excluding Gangnam-3 districts all saw price increases.”
• Lee Jae-myong, citing the article, noted, “Saying ‘only Gangnam was correct’ implies the rest of the remarks were wrong, but I only mentioned major areas in Seoul. Since I never said all of Seoul’s prices were plummeting, the claim that only Gangnam was correct is also fake news.”
• The Korea Daily revised its headline to [“Is it true that major Seoul areas’ prices are falling?”], and Lee Jae-myung, citing this revision, reiterated, “Stating that prices in major areas are falling is not factually incorrect” and demanded, “A correction is needed.”
• Lee Eun-hyeong (Research Fellow at the Korea Construction Policy Research Institute) said, “It’s hard to say the metropolitan market has stabilized or turned downward.”
• The Kyunghyang Shinmun assessed, “The government is focusing on signaling a ‘downward trend.’” Yoon Ji-hae (real estate commentator) remarked, “When regional trends diverge—like Gangnam falling while northern areas surge—looking at Seoul’s average suffices. Currently, while the pace of rise is slowing, overall prices in Seoul are still climbing.”
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Disappearing Education Activity Funds for Multicultural Children.

• The Ministry of Gender Equality and Family will terminate support for education activity funds for multicultural family children starting next year.
• The program provided annual card points of ₩400,000 for elementary students, ₩500,000 for middle schoolers, and ₩600,000 for high schoolers to children aged 7–18 from households earning up to 100% of the median income.
• A ministry official explained, “We already finalized the budget plan in May this year to end the program next year,” adding, “This was pursued independently of the president’s remarks.”
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The Fix.

‘Resting’ Population Declines After Four Years.

• August’s non-economically active population was 16,297,000—up 77,000 from the previous year.
• The ‘resting’ population was 2,551,000—a decrease of 89,000. This marks the first decline since 2022.
• The ‘resting’ population among youth (15–29) was 395,000—down 51,000.
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Restricting Youth Social Media? Start by Regulating Addictive Designs.

• Lee Jae-myung (President) instructed during a State Council meeting, “Please conduct discussions with precision and urgency.”
• Seong Wook-je (Senior Research Fellow at the Korea Information and Communications Policy Research Institute) noted, “Age restrictions are necessary but should not be rushed.”
• The Kyunghyang Shinmun emphasized in an editorial, “Measures should also be taken to regulate platforms from using ‘addictive designs’ that encourage prolonged use, such as infinite scrolling, autoplay, and push notifications.”
• Seong Yun-suk (Research Fellow at the Korea Youth Policy Institute) argued, “A strong dedicated organization is needed to oversee platform companies’ self-regulation.”
• Critics also point out that age restrictions have limited effectiveness due to widespread circumvention methods like VPNs.
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Equity-Building Housing with 25% Initial Share.

• Buyers purchase 25% equity upon move-in, then acquire the remaining shares in five 15% increments every four years. Unowned equity incurs rent at 90% of local jeonse rates. Resale is restricted for 10 years, and actual residency is mandatory for five years.
• The Ministry of Land, Infrastructure and Transport (MOLIT) announced that Korea Land and Housing Corporation (LH) will sell 284 units in Goyang Changneung under this equity-accumulation model.
• If local jeonse prices are ₩400 million, the initial 25% share costs ₩128 million. With a loan covering up to 40% LTV, the initial outlay drops to ₩77 million. Monthly rent for unowned equity is approximately ₩790,000.
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ICYMI.

President’s Y.

• The plan is to expand direct communication channels via YouTube.
• Seong Ki-hong (Chief of Presidential Communications) stated, “It is the fundamental duty of politicians and leaders to listen to the public’s voice and convey their will,” adding, “It is only natural to amplify and deliver messages to the people through the most influential media available today.”
• Lee Jae-myung’s YouTube channel has 1.89 million subscribers, ranking first among domestic politicians.
• Park Sang-byung (political commentator) remarked, “Now is the time to demonstrate results through policies, not words.”
• The first broadcast airs tonight at 9 PM.
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Dowoo+CJ Consortium Acquires JoongAng Ilbo.

• They agreed to sign a ₩520 billion conditional share purchase agreement (SSA) with JoongAng Ilbo, acquiring a 47.3% stake.
• The consortium’s investment ratio is 36.5% for Dowoo Technology, 35.7% for CJ, 14.1% for Shinsegae, and 13.7% for Saramin. Since Saramin is an affiliate of Dowoo Technology, the structure ensures equal shares between Dowoo+Saramin and CJ+Shinsegae.
• The existing major shareholders, including Hong Seok-hyun (former JoongAng Ilbo chairman), will see their stake reduced to 4%.
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Coupang Posts 642.3 Billion Won Operating Loss in Q3.

• Q3 revenue and operating profit were $9.96 billion and -$450 million, respectively. Revenue rose 7%, but operating profit has been negative for three consecutive quarters.
• In won terms, revenue was 14.2209 trillion won with an operating loss of 642.3 billion won.
• Kim Beom-seok (Chairman of Coupang Inc) called it “temporary headwinds,” emphasizing, “New member acquisitions are more than sufficient to fill any gaps in membership numbers.”
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Three Korean-American State Legislators.

• Dan Go (Wonyoung Ko, Massachusetts State Representative-elect) wrote on X, “My victory will make Trump angry.”
• He is from the Jeju Ko clan. Ko Tae-sik (head of the senior citizens’ association in Hagwi 1-ri, Aewol-eup, Jeju City) said, “It is an honor for our family, our village, and Jeju.”
• Marilyn Strickland won her fourth term, and Dave Min secured his second re-election.
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“Leaving DRAM for PCs Is a Terrible Idea.”.

• Sam Altman (OpenAI CEO) claimed, “It is a terrible idea to leave globally scarce DRAM for personal PCs.”
• After facing backlash and mockery, he changed his Twitter handle to “Ram Altman” as a form of apology.
• Elon Musk (Tesla CEO) retorted, “Everyone deserves memory.”
• According to Counterpoint Research, PC DRAM accounted for 10% of total DRAM shipments this year, server DRAM for 48%, and high-bandwidth memory (HBM) for 9%.
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Worth Reading.

“Hate Cannot Be Stopped with the Grammar of Hate.”.

• Lee Jae-myung (President) sparked a controversy over reverse discrimination against multicultural families that refuses to subside.
• Jeong Hyeok (Kyunghyang Shinmun columnist) pointed out, “Regardless of intent or background, the president’s remarks are ominous.”
• “If the far-right solution to the Democratic Party’s incompetence was the emergence of the Trump administration—promoting reverse discrimination resolution and meritocracy, resulting in a primitive rollback of anti-discrimination policies—then the contrasting response was the rise of democratic socialists like Bernie Sanders (Democratic Senator) and Eric Adams (New York City Mayor), who championed inequality reduction and social solidarity.”
• The warning is that “the ruling bloc, including the Democratic Party, faces a choice between Adams’ path and Trump’s path—and Lee Jae-myung’s recent rhetoric seems closer to the latter.”
• Miryu (standing activist at Human Rights Movement Solidarity) criticized, “Lee appears unaware that linking ‘multicultural families’ to ‘irrationality,’ ‘unfairness,’ and ‘special privileges’ gives ammunition to hate-mongering forces.” Miryu emphasized, “Hate cannot be stopped with the grammar of hate.”
• Ko Jeong-ae (JoongAng Sunday editor-in-chief) noted, “When a president’s words lose weight, maintaining dignity becomes impossible.”
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Lonely or Afraid.

• “I do not believe Lee Jae-myung (President) stumbled upon the Femico post by accident. Lee Jae-myng is the one who needs the support of 2030 youth more desperately than anyone.”
• Hwang Su-jeong (Seoul Shinmun Editorial Director) analyzed, “The president is now lonely, desperate, and afraid.” The repeated pattern of throwing out remarks and retreating upon backlash is seen as a nostalgic revival of the successful tactics he learned during his time as Seongnam mayor. Indeed, comments on Femico such as “I’ve started to like the president” have increased.
• “If he stops fixating on dropping the indictment, many aspects of state affairs will fall into place. There’s no need to cling to his phone if state achievements are urgent. I hope he listens first to the real stories of how the world works from his aides and ministers.”
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