The Minute to Read (Weekend) series provides a quick overview of significant events in Korea from the week, conveniently condensed into a one-minute read. Here’s a recap of what happened this week: Jan. 13-17.
Yoon becomes first sitting president in Korean history to be arrested
President Yoon Suk-yeol was arrested on Jan. 15 by the Corruption Investigation Office for High-ranking Officials (CIO), 43 days after declaring martial law on Dec. 3. Charged with leading an insurrection and abuse of power, Yoon was detained at the Seoul Detention Center at 9:50 p.m. after nearly 11 hours of questioning. The arrest, executed at his residence at 4:10 a.m., marks the first time in South Korea’s constitutional history that a sitting president has been detained by investigative authorities. The CIO must request a detention warrant within 48 hours, potentially subjecting Yoon to both criminal investigation and impeachment proceedings while in custody.
Ruling party surpasses opposition in latest polls despite martial law fallout
A joint poll by four major agencies on Jan. 16 revealed that the ruling People Power Party (PPP) leads the opposition Democratic Party (DP) within the margin of error for the first time in three months. PPP support began to recover after its steep decline during the Dec. 3 martial law crisis, while the DP’s approval rating slipped. In the poll, 48% of respondents favored an opposition candidate winning the next presidential election, compared to 41% supporting a ruling party candidate. If an early election were held, 36% said they would vote for a DP candidate, while 33% backed a PPP candidate, both within the margin of error. Analysts attribute the shift to controversial moves by the DP, including the impeachment of former Prime Minister Han Duck-soo and an arrest warrant issued for President Yoon.
More companies consider stock-based compensation for employees
More South Korean companies are considering providing stocks as performance-based compensation. Previously, stock options were the primary method, but government policies encouraging share buybacks have led firms to explore restricted stock units (RSUs) instead. Companies like Naver, Hanwha, Hyundai Motor, and SK Hynix have already adopted or are planning similar programs.
Foreign investors record biggest sell-off in Korean markets in 4 years
Foreign investors pulled out about 5.7 trillion won from South Korean stocks and bonds in December, the largest capital outflow in four years since the March 2020 pandemic shock. While foreign investors had been selling Korean stocks since last summer in a “sell Korea” trend, they also began withdrawing from the bond market in December, marking the first simultaneous sale of both stocks and bonds since October 2023. According to the Bank of Korea, foreign investments in domestic securities recorded a net outflow of $3.86 billion in December. This amount, when converted at the end-of-month exchange rate of 1,472.5 won per dollar, equals approximately 5.68 trillion won, the highest outflow since March 2020, when $7.37 billion exited the market.
China’s BYD enters S. Korea’s passenger EV market
BYD, China’s leading electric vehicle manufacturer and global market share leader, has entered the South Korean passenger vehicle market. The company is launching the Atto 3 as its first product, a compact SUV with a range of up to 321 km on a full charge, and an expected post-subsidy price in the high 20 million won range.
Samsung eyes potential collaboration with Broadcom amid HBM supply issues
As Samsung Electronics faces challenges in supplying HBM to Nvidia, the possibility of collaborating with Broadcom is gaining traction. While Nvidia’s stringent specifications have delayed Samsung’s HBM3E supply, Broadcom’s focus on cost-efficiency and large-volume supply makes it a promising partner. Broadcom, which is expanding in the AI semiconductor market through partnerships with companies like Google and Meta, differentiates itself from Nvidia with its ASIC design expertise. With SK Hynix focusing on Nvidia’s demand, Samsung’s capacity surplus positions it as a strong contender for Broadcom’s orders, though it remains uncertain whether Broadcom’s HBM orders will match the scale of Nvidia’s.
YouTuber sentenced for spreading fake news about IVE’s Jang Won-young
A YouTuber running the channel “Taldeok Camp” was sentenced to a two-year prison term, suspended for three years, for spreading false information about Jang Won-young, a member of K-pop girl group IVE. The Incheon District Court on Jan. 15 also ordered the forfeiture of about 200 million won in earnings. The charges included defamation and insult under the Act on Promotion of Information and Communication Network Utilization and Information Protection.
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