[Morning Briefing] Yoon Re-arrested in Special Insurrection Probe After 4 Months...New York Stock Exchange Closes Strong

◆ Yoon re-arrested in special insurrection probe after 4 months...Court cites 'concern for destruction of evidence'

Former President Yoon Seok-yeol was re-arrested on the 10th by Cho Eun-seok's special prosecution team investigating insurrection. This comes four months after he was first detained by the Corruption Investigation Office for High-ranking Officials on charges of leading an insurrection, only to be released following a court's decision to cancel his detention. On this day, at around 2:07 a.m., Nam Se-jin, the judge at the Seoul Central District Court in charge of warrants, issued a detention warrant for former President Yoon at the request of the special investigation team on charges including abuse of power, obstruction of special official duties, fabrication and use of false official documents, violation of the Presidential Records Act, damage of official documents, violation of the Presidential Security Act, and instructing the escape of a criminal. Judge Nam gave the reason for issuing the warrant, stating, "There is concern about the destruction of evidence," after conducting a pretrial interrogation (warrant substantive review) for 6 hours and 40 minutes from 2:22 p.m. the previous day. Although Yoon denied all charges, it appears the court judged the accusations to be supported based on witness testimony and material evidence presented by the investigation team. The court reportedly also found reasonable grounds for concerns of flight, as Yoon, facing the prospect of a long sentence, has repeatedly refused to comply with investigation summonses and has been consistently uncooperative in his insurrection trial without just cause.

◆ New York Stock Exchange: NVIDIA reaches uncharted territory—across the board rally

The three major New York stock indices finished higher in a rally led by tech stocks. In particular, NVIDIA reached a milestone, surpassing $4 trillion in market capitalization during the session for the first time ever, which helped some indices also hit new all-time highs. On the 9th (U.S. Eastern Time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished 217.54 points (0.49%) higher at 44,458.30. The Standard & Poor's (S&P) 500 Index rose 37.74 points (0.61%) to 6,263.26, while the NASDAQ Composite Index gained 192.87 points (0.94%) to close at 20,611.34. The star of the market was NVIDIA, whose share price jumped to $164.42 early in the session, reaching the $4 trillion market cap landmark—a first among global companies. By sector, all except consumer staples, energy, and real estate saw gains. Utilities rose by 1%.

◆ Yoon re-detained, placed in solitary cell at Seoul Detention Center...Security detail suspended

With the detention warrant filed by special prosecutor Cho Eun-seok issued in the early morning of the 10th, former President Yoon Seok-yeol has reentered Seoul Detention Center. This comes 124 days after being released by a court-ordered cancellation of his previous detention on March 8. After the pre-detention interrogation (warrant substantive review) ended, Yoon was transferred to the Seoul Detention Center in Uiwang City, Gyeonggi Province, and he is expected to be moved directly from the waiting room to his cell. Former President Yoon will undergo the same intake procedures as any ordinary detainee. He will have his personal information verified, be assigned an inmate number, undergo a physical examination measuring height and weight, and surrender all belongings. Afterwards, he will change into a khaki-colored pretrial inmate uniform, attach his inmate number, and have a mugshot photo taken for his prison records. Upon completion of intake, he is expected to be placed in a solitary cell of approximately 3 pyeong (about 9.9 square meters). However, if there are vacant cells, he may be assigned a larger room.

◆ First rate-setting meeting of the second half today...Rate freeze likely amid concerns of rising home prices and household debt

The Bank of Korea’s Monetary Policy Committee (MPC) is holding its first monetary policy meeting of the second half on the 10th to decide whether to adjust the current base rate of 2.50% per annum. Financial markets generally expect the MPC to leave the rate unchanged for now, monitor new measures for managing household loans, observe the effects of the third-stage stress DSR (Debt Service Ratio) regulation, and await results from the Federal Open Market Committee (FOMC) scheduled later this month as well as the implementation of supplementary budget measures. Governor Lee Chang-yong of the Bank of Korea also said at a price stability briefing on the 18th of last month, "The recent rise in housing prices in the capital area is driven by expectations," and, "There is an outlook of continued rate cuts and a supply shortage over the coming years." The record-wide interest rate gap of 2.0 percentage points between the United States and Korea, fiscal stimulus effects of the supplementary budget, and other policy factors are also seen as reasons for a rate freeze this meeting. Attention is focused on what Governor Lee will say at today's post-meeting press conference about the current status of real estate and household debt, how he will assess the effects of U.S. tariffs in the second half, and whether he will hint at the possibility of additional rate cuts later this year.

◆ Ruling party opens 8·2 convention candidate registration...Two-horse race expected between Jung Chung-rae and Park Chan-dae

The Democratic Party of Korea is accepting candidate registrations on the 10th for its party leader and supreme council elections to be held at its August 2 convention. So far, the leadership race includes four-term lawmaker Jung Chung-rae and three-term lawmaker Park Chan-dae. Jung plans to hold an online policy briefing via YouTube following registration to announce his top 10 pledges, while Park will hold a press conference for his registration at party headquarters, kicking off his campaign. For the supreme council election, so far only first-term lawmaker Hwang Myung-seon has registered. The convention is being held after former party leader Lee Jae-myung and chief supreme councilor Kim Min-seok, now serving as Prime Minister, both resigned their party posts.

◆ Bitcoin hits new all-time high...Breaks $112,000 for the first time

Bitcoin, the leading cryptocurrency, has reached a new all-time high for the first time in about a month and a half. According to Coinbase, a U.S. crypto exchange, at 3:55 p.m. Eastern Time (12:55 p.m. Pacific), Bitcoin traded at $112,055, up 3.04% from 24 hours earlier. This is the first time Bitcoin has crossed $112,000, surpassing the previous record set on May 22 by about a month and a half. As Bitcoin approached the key resistance level at $110,000, short sellers were forced to liquidate their positions, triggering further price gains. According to Crypto Briefing and others, over $480 million in cryptocurrency derivative positions were liquidated in 24 hours—of which Bitcoin accounted for $220 million. Geopolitical uncertainties such as tariff announcements under the Trump administration are also seen as boosting Bitcoin’s appeal as a safe haven asset.

◆ Scorching heatwave continues with 'feels like' temperatures around 35°C...Scattered showers in some regions

On Thursday the 10th, with heatwave warnings in effect in most parts of the country, maximum apparent temperatures will rise to around 35°C, especially in the west and inland, making it very hot. According to the weather service, tropical nights are also expected, particularly in western regions and on Jeju Island. Eastern regions may see relief from heatwave advisories due to east winds cooling temperatures. For the time being, temperatures will remain higher than normal (lows of 19–22°C, highs of 25–30°C). Morning lows will range from 20–25°C and afternoon highs from 26–35°C. Central areas will be mostly clear, while southern regions and Jeju Island will see variable clouds. Showers of 5–30 mm are expected until afternoon on Jeju Island, and from afternoon to evening in the southwestern Jeolla region and interior southwest of Gyeongnam. Fine dust levels are expected to remain at ‘good’ levels nationwide.

Cha Eun-ji, Korea Economic Daily reporter chachacha@hankyung.com