Jensen Huang Steps Down.

• The board used the term “resignation,” but major media reported he was “ousted.”
• It was revealed he had inappropriate relationships not only with Alice Huang (former Megaspeed director) but also Kimberly Powell (NVIDIA vice president). According to Reuters, there are also indications he may have had an affair with another female employee.
• Reuters assessed, “This carries the risk of shaking the global AI ecosystem.”
• All three major US indices fell yesterday. The S&P 500, Dow, and Nasdaq dropped -0.35%, -0.36%, and -0.39% respectively.
• NVIDIA shares fell 4.7%. Its market cap shrank by over $1 trillion, falling below $4 trillion.
• NVIDIA competitors AMD and Broadcom rose 4.3% and 5.5% respectively.
• SK Hynix ADR, listed on Nasdaq, fell 3.2%.
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NVIDIA Without Jensen Huang?

• An NVIDIA employee interviewed by the Financial Times said, “A globally respected and celebrated tech company has fallen due to Jensen Huang’s arrogance and weaknesses.”
• NVIDIA has no succession plan in place. Huang received direct reports from over 60 executives. He dominated most meetings.
• Colette Kress (NVIDIA CFO) will serve as interim CEO.
• Harvey Jones (former Synopsys CEO) will chair the board.
• Huang’s daughter and son work at NVIDIA but are not yet ready for CEO roles. Huang himself once said, “I don’t want my daughter to take that position.”
• Stacy Rasgon (Bernstein analyst) remarked, “Jensen is NVIDIA, and NVIDIA is Jensen Huang.”
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Today’s Front Pages.

• All headlines feature Jensen Huang.
• Chosun Ilbo: “Two affairs, fallen emperor.”
• Dong-A Ilbo: “AI rockstar’s downfall.”
• The Korea Daily: “AI cash flow in crisis.”
• KyeongHyang Shinmun: “Corporate and political circles…‘cutting ties.’”
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What Matters Now.

Who Benefits from Jensen Huang’s Fall?

• It could be the work of hardliners. Some speculate it’s not unrelated to the Republicans’ midterm election defeat.
• The information might have been intentionally leaked after being withheld. Trump was already briefed on the relationship between Jensen Huang and Alice Huang last May.
• Semaphore noted, “Surveillance files should not be weaponized against the American public and businesses,” adding, “Since the leak has already occurred, the remaining information should also be disclosed.”
• Jensen Huang was never popular with those who dislike China. Huang attempted to sell chips to China, prompting Dario Amodei (Anthropic CEO) and others to publicly vent, “Selling chips to China is like selling nuclear weapons to North Korea.”
• Related Link.

Clash Between Pro-China and Anti-China Factions.

• According to Axios, Secretary of the Treasury Scott Bessent (U.S. Treasury Secretary) fiercely protested to Secretary of Commerce Howard Lutnick (U.S. Commerce Secretary) over why Megaphase was not placed on the surveillance list.
• Suspicions arise that Howard Lutnick may have attempted to downplay the Megaphase issue due to concerns over escalating trade tensions with China.
• Claims also surface that multiple memos from Secretary of State Marco Rubio (U.S. Secretary of State) were allegedly ignored.
• Trump shielded Jensen Huang. Victor See (University of California professor) stated, “Trump likely did not want to undermine the achievements made during the U.S.-China summit.”
• Related Link.
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Jensen Huang’s Tone Has Shifted.

• Semaphore analyzed 42 interviews with Jensen Huang and found his language changed after meeting Alice Huang.
• Before 2005, Huang maintained a neutral stance on export restrictions.
• After NVIDIA chips were banned following DeepSeek’s 2005 release, he argued, “The U.S. would suffer more than China.” He also stated, “If we withdraw from the market, someone else will take our place.”
• Related Link.

“Corrupt Inner Circle,” Raising Bar for Financial Group Chairman Reappointment.

• “If left unchecked, a corrupt ‘inner circle’ emerges, allowing a small group to rotate power among themselves indefinitely.” These were the words of Lee Jae-myung (President) during a State Council meeting.
• The Financial Services Commission and Financial Supervisory Service have introduced measures to prevent self-reappointment of financial group chairmen.
• First, the CEO candidate recommendation committee must consist entirely of independent directors.
• Second, approval thresholds rise from two-thirds of committee members for initial appointments to three-fourths for reappointments. (Currently, it is one-half.)
• Third, shareholder meetings require two-thirds of voting rights and one-third of issued shares for initial appointments, rising to three-fourths and one-half for reappointments. (Currently, it is one-half and one-fourth.)
• If the recommendation committee has 5–7 members, opposition from just two independent directors blocks reappointment. In shareholder meetings, if 60% of shareholders attend, 83% must approve for reappointment to pass.
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Rigged Reappointments of Financial Group Chairs.

• Jin Ok-dong (Shinhan Financial Group Chairman) secured reappointment despite one independent director asking negative questions only to two competing candidates while giving the incumbent full marks without scrutiny. Though the National Pension Service (9% stake) opposed, 73% shareholder approval ensured his renewal.
• Hana Financial Group amended its bylaws to extend eligibility just before longlist selection.
• Independent directors were asked to add favorable remarks to minutes, which were later reflected.
• Controversy erupted when all external directors were replaced with candidates handpicked by the chairman-designate.
• One group gave external applicants five days to submit materials while its strategy division prepared the incumbent’s interview documents.

Can Financial Group Chair Reappointments Be Blocked?

• Im Jong-ryong (Woori Financial Group Chairman) and Jin Ok-dong (Shinhan Financial Group Chairman), reappointed in March this year, received 99% and 88% shareholder approval respectively.
• In 2020, Cho Yong-pyeong (then Shinhan Financial Group Chairman) and Son Tae-seung (then Woori Financial Group Chairman) fell short of the two-thirds threshold with 56% and 66% approval.
• The Hankyoreh criticized in an editorial, “If independent directors are just figureheads, nothing will change.” It argued that regulators should monitor independent director appointments from the start and institutional investors must actively exercise voting rights.
• The Kyunghyang Shinmun emphasized in an editorial, “The key is ensuring the recommendation committee’s real independence.” Some warn, “This could just increase procedural formalities.”
• Critics also question whether this will become a channel for ‘parachute appointments.’ The Dong-A Ilbo condemned, “This sets a precedent for another form of ‘state-controlled finance.’” It argued, “CEO appointments should be decided by boards and shareholders, with regulators holding them accountable—a clear division of roles.”
• Even if passed by the National Assembly, implementation is unlikely before the second half of next year.
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Mega Projects Start in South Chungcheong.

• “Actions, not words, and execution, not promises, are what matter.”
• Lee Jae-myung (President) attended the groundbreaking ceremony for Samsung Electronics’ Onyang Campus in Asan.
• A 6 trillion won advanced packaging fab will be built. The project involves 112 companies investing 23.6 trillion won.
• Samsung Group plans to invest 140 trillion won in the Chungcheong region.
• Lee also urged, “Please be more aggressive in providing policy financing for SMEs.” He instructed Lim Kwang-hyun (Chief of Staff to the President), “Find ways to train pipefitters.”
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Deep Dive.

TV Chosun Score Manipulation Allegations Acquitted.

• This case dragged on for six years. In 2020, suspicions arose that Han Sang-hyeok (then-Fair Trade Commission Chairman) and others intentionally lowered scores during TV Chosun’s reauthorization review to shorten its reauthorization period. Prosecutors indicted Han, former Fair Trade Commission staff, and reviewers on charges of falsifying official documents and obstructing official duties—but all were acquitted in the first trial.
• Prosecutors claimed, “Senior commission officials informed the review chair of evaluation results, and some reviewers lowered scores to make TV Chosun fail.”
• The first-instance court ruled, “The connection that they tacitly colluded was not sufficiently proven.”
• It also judged that some reviewers’ score adjustments did not exceed their authority.
• When Cha Jung-ho (then-head of the commission’s broadcasting support policy division) reported, “Reviewers are modifying scores,” Yang Han-yeol (then-head of broadcasting policy) instructed, “Tell them it’s not allowed.” When Cha responded, “The review committee allowed it,” Yang asked, “Was this decided through discussion?” The court judged, “Such reactions would be unlikely if they had colluded in advance.”
• The court acknowledged suspicious circumstances: TV Chosun’s scores changed to failing marks, and some reviewers might have known the general outcome. However, it ruled that the proposal and collusion to manipulate scores were not proven beyond reasonable doubt.
• In an editorial, Kyunghyang Shinmun argued, “This was nothing but a politically motivated investigation and indictment.”
• Related Link.

“Han Dong-hoon’s Rejoining? Not Even 1% Considered.”.

• Jang Dong-hyeok (People Power Party Leader) made the statement.
• Hwang Kyung-sung (People Power Party Ethics Committee Member) reignited controversy last January by claiming Han Dong-hoon (Independent MP)’s expulsion was a fabricated disciplinary action.
• Jang Dong-hyeok asserted, “The party member board incident was a heinous act, public opinion manipulation, and criminal behavior.”
• He dismissed Oh Se-hoon (Seoul Mayor)’s call for an emergency leadership system. Jang claimed, “We raised approval ratings from the 10% range after the impeachment to around 40%,” calling it “a tremendous achievement.”
• Jin Jong-oh (People Power Party MP) argued, “Rejoining must happen as quickly as possible, unconditionally.”
• The JoongAng Ilbo criticized, “They’ve fallen into premature presidential race speculation.”
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Another Take.

Choi Min-hee: “Lee Jae-myung Also Opposed Yoon Suk-yeol’s Impeachment.”.

• Choi Min-hee (Democratic Party lawmaker) stated, “Even President Lee Jae-myung opposed the impeachment of Yoon Suk-yeol” and added, “The position was to join hands with Han Duck-soo and proceed.” The remarks implied, “Even the president’s political judgment is not always correct.”
• Kang Yu-jeong (Blue House spokesperson) responded, “This is baseless, and we express strong regret.”
• Kim Min-seok (Democratic Party leader) ordered an inspection.
• Choi Min-hee later changed her statement, claiming, “The president consistently argued for and pushed through Yoon Suk-yeol’s impeachment after the rebellion.”
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Special Prosecutor Bill for Manipulation Indictment to Be Handled by Prime Minister.

• Last week’s State Council meeting passed without action. With Lee Jae-myung (President) departing on the 16th for the APEC summit in Shenzhen, it is widely expected that Han Suk-cheong (Prime Minister) will handle the matter at the 17th State Council meeting.
• “Could this be due to concerns about conflict of interest?” some speculate, though the issue ultimately requires presidential approval.
• Related Link.

No Party-Government Discord: Property Tax Stays Put.

• Kim Min-seok (Democratic Party Leader) stated, “The basic principle of real estate policy has already been settled: it’s better to maintain consistency.”
• Some lawmakers had suggested raising the basic deduction for non-resident single-homeowners, but this was clarified as a misunderstanding.
• Han Byung-do (Democratic Party Floor Leader) said, “There is no discord between the party and the government.”
• A senior Democratic Party official remarked, “We expect the government’s proposal to remain unchanged.”
• A Democratic Party lawmaker interviewed by The Hankyoreh said, “In a situation where jeonse prices are rising rapidly, concerns remain about whether policies favoring actual residents are appropriate.”
• Related Link.

“Signals of Falling Home Prices.”.

• Hong Ji-seon (Minister of Land, Infrastructure and Transport) said this. Following Gangnam’s three districts, Seongdong-gu and Gangdong-gu have turned downward. Mapo-gu’s rate of increase has also slowed.
• According to the Korea Real Estate Institute, Seoul apartment prices have risen for 92 consecutive weeks.
• The issue lies in jeonse (lump-sum deposit) and monthly rents. While Seoul apartment prices rose 8.9% this year, jeonse prices surged 9.3%.
• Nam Hyuk-woo (Woori Bank researcher) said, “The wait-and-see attitude among buyers will likely continue for the time being.”
• Lee Eun-hyeong (Korea Construction Policy Research Institute researcher) noted that if jeonse instability and supply shortages persist, “a market where regions move independently” will continue.
• Related Link.
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Han Deok-soo’s Release? Cho Hee-dae Impeachment Dilemma.

• Lee Seong-yoon (Democratic Party lawmaker) pointed out, “Our party is paralyzed by indecision.” Lee insists that if Han Deok-soo (former prime minister) is released, the party must immediately push for the impeachment of Cho Hee-dae (Chief Justice of the Supreme Court).
• Kim Min-seok (Democratic Party leader) said, “Han Deok-soo’s release can only be seen as a declaration of war by pro-insurrection forces,” but the risks of pursuing impeachment remain high.
• Park Hee-seung (Democratic Party lawmaker) remarked, “Are they insane? Impeaching judges is something only done in backward countries.” There are also voices saying, “It’s a lose-lose situation whether we impeach or not.”
• Han Deok-soo’s detention period expires on the 20th. If no ruling is issued before then, he is likely to be released.
• Related Link.

Asked in Japanese, Only 56% Confirm Forced Mobilization of “Comfort Women”.

• Claude Opus 5.5 was asked. When queried in Korean, 95% responded that forced mobilization was correct. In English, 92% agreed; in Chinese, 95%. But in Japanese, the figure dropped to 56%.
• When asked in Japanese, 41% of responses included statements like “various perspectives and discussions exist” or “opinions differ on the definition of coercion.”
• Gureum (co-CEO of BigValue) emphasized, “It is crucial for LLMs to learn data aligned with Korea’s stance, while national efforts are needed to ensure foreign LLMs train on high-quality datasets rich in Korea’s history and culture.”

The Fix.

Fuel Cost Shock, Dumped on KEPCO.

• KEPCO’s Q3 operating profit was 1.6 trillion won (consolidated basis). Consolidated debt stood at 209.6 trillion won as of end-September.
• The fuel cost pass-through mechanism has effectively been neutralized. The required adjustment rate for Q4 was +7.3 won per kWh, but the cap of +5 won was applied; in Q2, a -5 won reduction was calculated due to falling costs, yet +5 won was maintained.
• Cho Sung-bong (professor at Soongsil University) said, “Vulnerable groups should be aided through fiscal measures, but power supply and grid investment costs must be reflected in rates as per principle to preserve price functionality.”
• Park Jong-bae (professor at Konkuk University) said, “Governance reform is urgently needed—an independent committee must determine rates based on cost.”
• KEPCO must invest 55.3 trillion won in transmission and distribution networks from this year to 2030.
• Related Link.

No Place to Go After Life-Sustaining Treatment Halts.

• “Care after halting life-sustaining treatment and a dignified death have been blind spots for a decade,” critics note.
• Last year, 26,020 patients used hospice-palliative care—about 27% of total deaths.
• The average number of inpatients waiting for hospice care is 12.7.
• A “hospice roulette” phenomenon occurs, with many patients ending up in nursing hospitals or facilities.
• Kim Dae-gyun (Director of Incheon St. Mary’s Hospital Hospice-Palliative Care Center) said, “A control tower like the ‘End-of-Life Care Strategy Committee’ must be established to create a national long-term strategy.”
• Related Link.

General Election Without Satellite Parties: Preparations Must Begin Now.

• Last-minute changes rarely work.
• Seo Bok-kyung (Participatory Democracy Executive Committee Member) noted, “In a game where fouls are allowed, the side that follows the rules gets disqualified, while the remaining side must rely on major parties.”
• The National Assembly’s delayed decisions disproportionately harm political newcomers. Preliminary candidate registration begins 120 days before elections, yet the 2024 election districts were finalized only 41 days in advance. Challengers had to campaign without even knowing their own districts.
• “If players have repeated the practice of setting rules right before a game for over thirty years, it’s common sense to strip them of the authority to set those rules.”
• Seo proposed creating an independent deliberation committee. The idea is for citizen representatives to draft multiple electoral system proposals, put them to a public referendum, and resolve the issue in advance. The Democratic Party has already adopted a party line banning satellite parties and endorsing a mixed proportional representation system. Why delay further?
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ICYMI.

Autumn Cabbage Collapse.

• Last year, a single head cost 3,280 won; this year, it’s around 1,900 won—a 42% plunge.
• Production rose 19%, while demand fell 9%.
• At Garak Market, the 10kg auction price dropped from 7,992 won last year to 4,311 won this year.
• Shallots plummeted 69%. One farmer, who plowed under his shallot field with a tractor, reportedly wept with neighbors through the night.
• The Ministry of Agriculture, Food and Rural Affairs announced price stabilization measures: purchasing 10,000 tons of autumn cabbage and disposing of 30,000 tons.
• Related Link.
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Heading to Japan to Buy ‘Mounjaro’.

• South Korea has decided to allow the personal import of obesity medications like Mounjaro. Demand is surging to buy Mounjaro in Japan and bring it back.
• A 4-week supply of 2.5mg costs at least 278,000 won in South Korea, but only 7,000 yen in Tokyo. Buying a 3-month supply saves nearly 660,000 won.
• Mounjaro must be stored between 2–8°C, raising concerns about potential spoilage. Social media is flooded with requests for proxy prescriptions and broker solicitations.
• Japan’s government sets drug prices, and competition keeps them low. Oh Sang-woo (professor at Dongguk Il-san Hospital) said, “The government should negotiate with pharmaceutical companies to lower prices and ensure patients in dire need can access affordable prescriptions.”

Worth Reading.

Leave the Market Stabilization Fund Alone.

• Lee Hyung-il (Minister of Economy and Finance) stated, “We are monitoring market conditions and preparing to implement stabilization measures if necessary.” Speculation arises about whether the Securities Market Stabilization Fund (Market Stabilization Fund) will be activated.
• Park So-yeon (Seoul Shinmun Deputy Editor) pointed out, “Deploying the fund is like the government admitting it has sold KOSPI as an incomplete product.”
• Moreover, it has never succeeded. In 1990, 5 trillion won was poured in without reviving the market; in 2020 and 2022, 10 trillion won was assembled but never used. Today, 10 trillion won is insufficient.
• Park So-yeon emphasized, “What the government must protect is not a specific stock index number but market trust.” “The government cannot buy stocks every time foreigners sell,” she added.
• Related Link.

Why the Special Prosecutor for Manipulated Indictments Is Worrisome.

• With the presidential case included, concerns arise that exposing prosecutorial misconduct has devolved into partisan warfare. Lee Chun-jae (Hankyoreh Columnist) warned, “This could inadvertently grant the ‘political prosecution’ a ‘political get-out-of-jail-free card.’”
• Hankyoreh demands rigorous prosecutorial reform but draws a line at dropping charges. Lee Chun-jae cautioned, “If charges are dismissed, Yoon Suk-yeol’s faction—which fell with him—might stage a political comeback.”
• Related Link.

Hyena Pack Controversy.

• Choi Min-hee (Democratic Party lawmaker) sparked controversy by posting photos of reporters covering her and condemning them as “a pack of hyenas.”
• Oh Jong-chan (Chosun Ilbo photo editor) countered, “Cold-eyed scrutiny of power and delivering truth is journalism’s essence. As a former journalist, one must ask: what version of ‘press freedom’ did Choi Min-hee truly crave?”
• Koo Hye-young (Kyunghyang Shinmun columnist) warned, “Politicians’ inappropriate language isn’t just a slip—it risks normalizing hatred across society.”
• Related Link.
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Sorry for Leaving You in This World.

• An underage girl who had run away from home was sexually assaulted and later killed by the father of her assailant.
• The sexual assault case has not even been prosecuted after eight months. The victim had to move between youth shelters, each allowing stays of only seven days.
• Kwon Kim-hyeon-young (Chonnam National University Professor) assessed, “The grueling life of a 15-year-old girl, who had never received proper protection—neither in society, within her family, nor in any relationship—ended in an untimely death.”
• Critics argue this is not just a murder case but a failure demanding scrutiny of the juvenile protection system.
• Related Link.
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No Exclusion on the Path to a Structural Majority.

• Controversy arose over prioritizing multicultural families for public postpartum care centers, but the core issue is the severe shortage of such facilities.
• Park Sun-kyung (Korea University Professor) emphasized, “A president aiming to create a structural majority should not debate who enters first through a narrow gate, but should vow to widen the gate.”
• Park Sun-kyung stressed, “A president who pledged to represent everyone must not force citizens to compete over scarce resources.” “Temporary support gained through unjust attacks on people living on the same land can never evolve into a stable structural majority,” she argued.
• Related Link.