[Morning Briefing] 'Allegations spreading' Kim Byung-gi to announce his position today…Coupang hearings for two days

◆New York stock market closes broadly lower

The three major New York indexes all fell. At the New York Stock Exchange today, the Dow Jones Industrial Average fell 0.51%, the Standard & Poor's (S&P) 500 index fell 0.35%, and the Nasdaq Composite fell 0.5% from the previous trading day. Big tech companies such as Tesla, Nvidia, and Meta, which recently hit record highs, weakened across the board and dragged the indices down. It is interpreted that investors sold to realize profits ahead of the year-end. Nvidia completed the purchase of $5 billion worth of Intel shares on the day. International oil prices rebounded more than 2% amid difficulties in Ukraine negotiations and China’s willingness to stimulate the economy, lifting energy stocks such as ExxonMobil. International silver prices plunged about 9% a day after rising above $80 per ounce yesterday, a record high, amid concerns over supply shortages.

◆Kim Byung-gi to announce his position today…likely to offer a public apology

Kim Byung-gi, the floor leader of the Democratic Party of Korea, is expected to offer a public apology and an explanation regarding the recent controversies. According to political circles, Kim is scheduled to directly state his position on the various allegations at a caucus strategy meeting this morning. He is facing allegations including an expensive lunch before a parliamentary audit with a former Coupang CEO, a hotel voucher worth 1.6 million won, controversies over protocol for his daughter-in-law and grandson, allegations of preferential hospital treatment for his eldest son, suspicions that his spouse privately used district council business expenses, and allegations of assisting his son who works at the National Intelligence Service. Analysts say this could be a turning point for his position, and expectations lean toward a public apology and explanation rather than resignation.

◆National Assembly holds two-day Coupang hearing starting today

The National Assembly will hold a two-day hearing from today titled 'Hearing to investigate Coupang security breach and personal information leakage, unfair trade, and working environment conditions and to prepare measures to prevent recurrence.' This hearing will take the form of a joint meeting led by the Science, ICT, Broadcasting and Communications Committee under Article 63 of the National Assembly Act, with six related standing committees attending, including the Political Affairs Committee, the Land, Infrastructure and Transport Committee, the Environment and Labor Committee, the Strategy and Finance Committee, and the Foreign Affairs and Unification Committee. Thirteen people, including current and former Coupang executives, have been selected as witnesses, while Coupang founder Kim Beom-seok, chairman of Coupang Inc.'s board, submitted a letter explaining his absence. The People Power Party agreed as a party to abstain from participation, arguing that a state investigation rather than a hearing should be pursued and that the committee presiding over the hearing should be the Political Affairs Committee rather than the Science, ICT, Broadcasting and Communications Committee.

◆'Homeplus acquisition' fails…restructuring inevitable

Ten months after Homeplus began corporate rehabilitation proceedings, it failed to find a buyer and submitted a rehabilitation plan to the court. According to the industry, Homeplus submitted a 'structural innovation-type rehabilitation plan' to the Seoul Bankruptcy Court yesterday afternoon — about 10 months after its proactive corporate rehabilitation application in March. It is reported to include measures to secure liquidity through the separate sale of Homeplus Express, reduce size by closing unprofitable stores, and seek a buyer for Homeplus again. The court will review the rehabilitation plan submitted by Homeplus and decide whether to approve it after consultation procedures with creditors, including meetings of interested parties. The plan is also said to include offering voluntary retirement to some long-serving employees.

◆"It's colder on the commute than yesterday"

Today, Tuesday, cold air from the northwest will bring morning temperatures 5–10 degrees lower than the previous day, making it cold. Daytime temperatures will be around 0–9 degrees, similar to or slightly higher than average, but will be lower than average from tomorrow. Strong winds will make the wind chill lower, so be careful with your health. Until morning, dense fog with visibility under 200 m may occur mainly in inland southern Gangwon, inland North Jeolla, and inland North Gyeongsang; other inland areas nationwide may have fog with visibility under 1 km. The atmosphere will be very dry in parts of Gangwon and North Gyeongsang east coasts, Busan, Ulsan, and parts of South Gyeongsang, so be cautious of forest fires. Fine dust concentrations are expected to be 'good' to 'moderate' across all regions due to smooth air dispersion.

No Jeong-dong, Hankyung.com reporter dong2@hankyung.com