[Morning Briefing] PM nominee Kim Min-seok’s confirmation hearing ends in chaos under Lee administration...U.S. stock markets close mixed

◆ "Empty hearing and acts of exoneration"—Kim Min-seok's confirmation hearing for Prime Minister nominee ends in chaos

On the second day of Kim Min-seok’s confirmation hearing for Prime Minister nominee on the 25th, the National Assembly’s Special Committee on Personnel Hearings concluded without examining the candidate’s ethical standards or qualifications. The People Power Party focused on scrutinizing previous allegations and controversies surrounding Kim’s assets and family, but failed to raise new suspicions, while the ruling Democratic Party of Korea spent most of its time defending Kim, only partially questioning government reform and economic policy issues. The Democratic Party criticized that the People Power Party merely repeated baseless allegations without presenting a “critical blow,” making it a “meaningless hearing.” Meanwhile, People Power Party claimed the Democratic Party turned the hearing into an “exoneration session” by refusing to cooperate with witness arrangements and covering for Kim’s insufficient document submission. Ultimately, the hearing did not resume after the afternoon recess due to repetitive disputes, particularly about “insufficient submission of documents” by Kim and the opposition’s “₩600 million in wardrobe” comment, ending automatically at midnight. There is now a high possibility that the committee's official report will not be adopted.

◆ U.S. stock markets: NVIDIA reclaims top spot by market capitalization...mixed close

The three major stock indices on the New York Stock Exchange moved narrowly in a tight range. With few market-moving catalysts and following two days of sharp gains, indices showed signs of mild correction. However, NVIDIA, buoyed by expectations of dominating not only AI but also the robotics market, reclaimed the top spot in global market capitalization. At the close of trade on the 25th (U.S. Eastern time) on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average fell 106.59 points (0.25%) to 42,982.43. The S&P 500 Index was down 0.02 points (0.00%) at 6,092.16, and the NASDAQ Composite Index rose 61.02 points (0.31%) to finish at 19,973.55. There were no major events to significantly influence stock prices. After the Iran-Israel military clash was halted by a ceasefire, the market cooled off, fluctuating in a narrow band. NVIDIA surged 4.33%, and Google also jumped over 2%. Microsoft, Apple, and Broadcom also closed slightly higher. With this surge, NVIDIA’s market capitalization reached $3.7651 trillion, returning to the world’s number one spot.

◆ Kori Nuclear Power Plant Unit 1 decommissioning decision to be made today after 8 years of permanent shutdown

On the 26th, the Nuclear Safety and Security Commission will hold a meeting to decide on decommissioning Kori Nuclear Power Plant Unit 1. If the commission approves, Kori Unit 1 will officially start its decommissioning process 53 years after construction approval in 1972 and eight years after the 2017 decision to permanently shut down. Kori Unit 1 is South Korea’s first nuclear power plant, which began commercial operation on April 29, 1978, and uses a pressurized water reactor with 587 MWe electrical output. By nuclear law, decommissioning approval must be requested within five years of permanent shutdown, and the Commission must complete its review within three years of application, excluding KHNP’s (Korea Hydro & Nuclear Power Co., Ltd.) inquiry period. Accordingly, KHNP submitted final decommissioning plans and related documents for Kori Unit 1 in May 2021, and the Commission began its main review in January 2022. KHNP has been performing pre-approval decontamination work to remove radioactive materials since May this year. As approval for decommissioning is typically granted after permanent shutdown, experts expect approval is likely. However, the Commission could delay its decision, as key decisions like construction approval or shutdown often require further reviews if opinions are divided.

◆ Trump and Zelensky hold 50-minute meeting...“Discussion on U.S. air defense system purchases for Ukraine”

On the 25th (local time), Donald Trump, former U.S. President, and Volodymyr Zelensky, President of Ukraine, met to discuss the war in Ukraine. After about 50 minutes of talks at the NATO Summit in The Hague, Netherlands, Zelensky wrote on X (formerly Twitter), “Above all, we discussed purchasing U.S. air defense systems to protect our cities, people, churches, and infrastructure.” He said, “Ukraine is ready to purchase this equipment and support American defense manufacturers. Europe can also help,” and added, “We also discussed the possibility of joint drone production; we can strengthen our response.” Zelensky has consistently appealed for additional U.S. sanctions against Russia and expressed intent to purchase more weapons as American military support to Ukraine wanes. Trump, after the summit, said at a press conference that although he did not mention further sanctions, he would consider sending more Patriot missiles to Ukraine. This was the first face-to-face meeting between the two leaders since their private talks at Pope Francis’s funeral in Vatican City on April 26, two months ago.

◆ NATO agrees to increase defense spending to 5% of GDP within 10 years...Trump calls it a “historic victory”

NATO’s 32 member states officially agreed on the 25th (local time) to raise defense spending to a total of 5% of GDP by 2035. Leaders at the NATO summit in The Hague signed a joint statement pledging to devote at least 3.5% of annual GDP to core military needs and submit annual plans to achieve this under the “NATO Military Capability Targets.” They also agreed to allocate up to 1.5% of GDP for infrastructure protection, network defense, and strengthening the defense industrial base. The “3.5% direct + 1.5% indirect” spending meets Donald Trump’s demand for “5%.” This is more than double the current 2% target agreed in 2014. The joint statement also notes that the overall spending trajectory and balance under the plan will be reviewed in 2029 against the strategic environment and updated capability targets. This year’s joint statement, issued in five paragraphs on a single A4 sheet, made no mention of Ukraine’s NATO membership, in contrast to last year’s much longer 44-paragraph statement issued under the Biden administration in Washington.

◆ “Oil giant Shell exploring acquisition of rival BP...in early negotiations”

Global energy giant Shell, based in the UK, is in early-stage talks to acquire its rival BP, according to the Wall Street Journal (WSJ), citing sources familiar with the matter on the 25th (local time). According to reports, BP is carefully reviewing Shell’s takeover proposal and talks are actively progressing. However, final terms of the deal are unknown and whether the deal will be completed remains uncertain, WSJ noted. Shell moved its headquarters from The Hague, Netherlands, to London in 2022, also changing its name from Royal Dutch Shell to Shell. BP’s headquarters are also in London. BP has struggled financially after focusing on covering damages from the 2010 Gulf of Mexico oil spill, in which BP’s drilling rig Deepwater Horizon exploded—considered the worst oil spill in U.S. history. If the merger and acquisition between the two companies are successful, WSJ reports this will be the biggest energy sector merger since Exxon and Mobil combined in the U.S. in 1998.

◆ Overcast nationwide with scattered showers...daytime highs up to 30°C

On Thursday, the 26th, skies will be mostly cloudy nationwide with rain in some areas. According to the Korea Meteorological Administration, less than 5 mm of rain is expected in Seoul and the metropolitan area, inland and mountainous Gangwon, North Chungbuk, and Northwestern North Gyeongsang Province through the morning. In inland and mountainous Gangwon, 5-10 mm of showers are forecast in the late afternoon. Morning lows will range from 18–21°C, with daytime highs reaching 25–30°C. For the time being, daytime temperatures will exceed 30°C in many inland regions, especially in the south, with maximum apparent temperatures rising above 31°C, making it hot in many areas. Fine dust levels are expected to be “Good” to “Normal” in all regions. Visibility will be reduced by fog, especially on bridges along the coast (such as Incheon Bridge, Yeongjong Bridge, Seohae Bridge, Cheonsa Bridge), around rivers, lakes, valleys, and tunnel entrances/exits. Please be cautious for traffic safety. On the sea, waves will be 0.5–1.5 m in the East Sea nearshore, 0.5 m in the West Sea nearshore, and 0.5–1.0 m in the South Sea nearshore. Far offshore (within about 200 km offshore), wave heights are forecast at 0.5–2.0 m in the East Sea, 0.5–1.0 m in the West Sea, and 0.5–1.5 m in the South Sea.

Cha Eun-ji, Hankyung.com reporter chachacha@hankyung.com