President Lee to lunch with Jung Cheong-rae and Jang Dong-hyeok at the Blue House…Special committee launched to review the Special Act on Investment in the U.S. [Morning Briefing]

President Lee to lunch with Jung Cheong-rae and Jang Dong-hyeok at the Blue House…likely to urge bipartisan cooperation

President Lee Jae-myung will host a luncheon on the 12th at the Blue House, inviting Jung Cheong-rae, leader of the Democratic Party of Korea, and Jang Dong-hyeok, leader of the People Power Party. It will be the first time the president meets Jang face-to-face since the September lunch meeting last year with the leaders of the ruling and opposition parties. He met Jung at a dinner with the Democratic Party leadership on the 19th of last month. The meeting is expected to broadly cover pending issues including tariff talks with the United States, administrative consolidation among wide-area local governments, and measures to stabilize holiday prices. Attention is also on whether the so-called “three special prosecutors” demanded by the opposition— a special counsel into dropping the appeal in the Daejang-dong case, a special counsel into the “Democratic Party–Unification Church gate,” and a special counsel into allegations of bribery in Democratic Party nominations—will come up in the talks. Some are watching whether President Lee and Jung will discuss merger talks between the Democratic Party and the Rebuilding Korea Party. There is also interest in whether President Lee will hold a separate one-on-one meeting with Jang, as he did during last year’s September lunch.

National Assembly launches full review of Special Act on Investment in the U.S.…government briefing today

The National Assembly will activate a special committee on the review of the Special Act on Investment in the U.S. on the 12th and begin full-fledged deliberations. The committee will hold its first plenary meeting and receive briefings from government ministries. Attendees include Koo Yun-cheol, Deputy Prime Minister for the Economy and Minister of Economy and Finance, and Kim Jeong-gwan, Minister of Trade, Industry and Energy. The plan is to pass the bill before the committee’s activity period ends on the 9th of next month. The ruling and opposition parties agreed earlier this month to form the committee after U.S. President Donald Trump announced a plan to raise tariffs on South Korea, citing delays in legislation in Korea. The Special Act on Investment in the U.S. is a bill introduced last November following the signing of a tariff-agreement memorandum of understanding (MOU) between South Korea and the United States.

Stocks close slightly lower despite “surprise jobs” report…sellers in control

The three major U.S. stock indexes ended slightly lower. January U.S. nonfarm job gains far exceeded expectations, providing a positive catalyst. However, amid doubts about the strength of the jobs numbers and lingering concerns about stretched valuations near recent highs, the indexes swung sharply before finishing in a narrow range. Near the close on the 11th (U.S. Eastern time) on the New York Stock Exchange, the Dow Jones Industrial Average fell 66.74 points (0.13%) to close at 50121.40. The S&P 500 slipped 0.34 points (0.00%) to 6941.47, while the Nasdaq Composite dropped 36.01 points (0.16%) to end at 23066.47.

Min Hee-jin–HYBE lawsuit over “KRW 26 billion put option” to be decided today

A civil lawsuit between former ADOR CEO Min Hee-jin and HYBE over a put option worth KRW 26 billion is expected to be concluded today, the 12th. The Seoul Central District Court’s Civil Division 31 (Presiding Judge Nam In-soo) will hold a sentencing hearing at 10 a.m. for HYBE’s suit seeking confirmation of termination of a shareholders’ agreement against Min, and Min’s suit seeking payment for a stock sale against HYBE. Key issues in the case include when the shareholders’ agreement was terminated and whether there was a material breach sufficient to justify termination. HYBE has argued that it already notified termination of the agreement in July 2024, when Min allegedly attempted a “poaching of NewJeans” and caused damage to the company, and that the put-option right therefore expired as well. Min, however, maintains that the shareholders’ agreement remained valid at the time she exercised the put option and that HYBE had no right to terminate the agreement. The same panel is also hearing ADOR’s damages suit against Min and others including Danielle; the amount ADOR is seeking, holding them responsible for NewJeans’ departure and delayed return, is about KRW 43.09 billion.

Clear nationwide, but dense morning fog…fine dust levels ‘bad’

Thursday the 12th is expected to be mostly clear nationwide, though some areas may see dense fog through the morning. Dense fog with visibility under 200 m is forecast mainly across inland areas of Gyeonggi and Gangwon, the Chungcheong region, and the Jeolla region. In particular, thicker fog than surrounding areas may form near coastal bridges and around rivers, lakes and valleys inland, requiring caution for traffic safety. The air will be very dry especially in the eastern regions, calling for heightened vigilance to prevent wildfires. Dry weather advisories are in effect along the Gangwon East Coast and in the Gyeongsang region. Fine dust concentrations are expected to be “bad” in Seoul, northern and southern Gyeonggi, western Gangwon, the Chungcheong region, Gwangju, North Jeolla, Daegu and North Gyeongsang, and “moderate” elsewhere. Waves will be 0.5–1.5 m in the East Sea nearshore waters and 0.5–1.0 m in the West and South Seas nearshore waters. In offshore waters (approximately within 200 km of the coastline), wave heights are forecast at 0.5–2.0 m in the East Sea and 0.5–1.5 m in the West and South Seas.

Choi Soo-jin, Hankyung.com reporter naive@hankyung.com