Issues Reviewed Monthly in the Year of the Ox 2021
[Asia Economy Reporter Jin-kyung Lee] The eventful year of 2021 in the Republic of Korea is coming to an end, passing by so quickly that it’s hard to believe. What kind of Korea did you live in this year? From January to December, among the numerous issues we saw, heard, and experienced, we have highlighted the incidents that attracted much attention and anger from many people, shedding light on the talkative Korea. Before welcoming the new year vigorously, let’s take some time to reflect on the past events and reminisce about 2021.
< January >
▶ January 3: ‘Jeong-in Case’ revealed to the public through broadcast
'A news story at the very beginning of the new year that made the entire nation doubt their eyes and sparked nationwide outrage'
This case involved a girl adopted through Holt Children’s Services who was severely abused over a long period by her adoptive mother and father, leading to her death. Since March last year, Jeong-in had been repeatedly abused by her adoptive parents, and it was revealed that she suffered injuries such as fractures and mesenteric rupture due to the adoptive mother’s violence. The severe beatings resulted in her death on October 13 last year from abdominal injuries including pancreatic rupture, which sparked public outrage. Although there were three prior reports suspecting child abuse, the police and child protection agencies did not separate Jeong-in from her adoptive parents, and the adoption procedures and post-adoption management were mainly handled by private adoption agencies. Investigations revealed that these private agencies were aware of the abuse reports but failed to respond actively.
▶ January 6: KOSPI surpasses 3000
'A historic day as KOSPI breaks through 3000, a level never experienced before'
The KOSPI index surpassed the 3000 mark for the first time in 38 years since its launch in January 1983. It was the first time in 13 years since it crossed 2000 in July 2007. The KOSPI, which had plummeted due to the COVID-19 outbreak early last year, rebounded thanks to abundant liquidity and the enthusiasm of individual investors known as “Donghak Ants.”
▶ January 20: Joe Biden inaugurated as the 46th President of the United States
'Defeated Donald Trump, who sought re-election, and was elected as the next president'
Former President Donald Trump stepped down, and the Joe Biden administration was inaugurated. Biden abolished Trump’s “America First” policy, rejoined the Paris Climate Agreement immediately after inauguration, and returned to the World Health Organization, demonstrating a focus on restoring alliances and regaining leadership in the international community as a global leader.
▶ January 21: Kim Jin-wook appointed as the first head of the Corruption Investigation Office for High-ranking Officials (CIO)
'Kim Jin-wook appointed as the inaugural CIO head, concurrently serving as a special public official and prosecutor, with a 3-year term, no reappointment, and retirement age of 65'
On the 21st, President Moon Jae-in approved the appointment of Kim Jin-wook as the first head of the CIO. The CIO officially launched as an independent anti-corruption investigation agency with the authority to investigate and prosecute crimes committed by high-ranking officials and their families, aiming to eradicate corruption and enhance transparency and trust in public service.
< February >
▶ February 10: School violence allegations against volleyball players Lee Jae-young and Lee Da-young
'Lee Jae-young and Lee Da-young, sisters belonging to the Women’s Volleyball team Heungkuk Life, accused of school violence during their school days, sparking controversy'
A post by a person claiming to be a middle school classmate of Lee Jae-young and Lee Da-young alleging severe school violence by the two players during their school days sparked controversy. Additional revelations from victims’ parents followed, causing shock. The twin sisters, once icons in volleyball, suffered a damaged image, and Heungkuk Life announced an indefinite suspension of the players.
▶ February 26: First COVID-19 vaccination in Korea begins
'After the first confirmed case on January 20 last year, the first vaccination (AstraZeneca) started'
One year and 37 days after the first confirmed COVID-19 case in Korea on January 20 last year, COVID-19 vaccinations officially began. The government aimed to complete the first dose for over 70% of the population by September and achieve herd immunity by November to overcome the crisis. However, due to breakthrough infections from variants, strict social distancing and booster vaccinations continue.
< March >
▶ March 2: LH scandal surfaces
'Employees of Korea Land and Housing Corporation (LH) were found to have speculated by purchasing land worth over 10 billion won in the largest 3rd phase new town projects of the Moon administration, Gwangmyeong and Siheung, since 2018, causing public disillusionment'
The revelation that LH employees purchased land with speculative intent using loans worth billions of won sparked public anger. The scandal severely damaged trust in housing supply policies and raised concerns about delays in other 3rd phase new town developments such as Namyangju Wangsuk. President Moon Jae-in ordered a full investigation of land transactions in all 3rd phase new towns including Gwangmyeong and Siheung. LH issued a public apology on the 4th and announced a pre-reporting system for land transactions by all employees and their families.
▶ March 5: Yoon Seok-youl resigns as Prosecutor General
'Yoon Seok-youl, the 43rd Prosecutor General, broke with the Moon administration over the Cho Kuk scandal and eventually resigned'
Yoon was appointed as the 43rd Prosecutor General on July 25, 2019, but resigned 142 days before his term ended after 19 months. He had investigated former Presidents Lee Myung-bak and Park Geun-hye and judicial administration abuse allegations. However, conflicts arose with the government and ruling party during investigations into former Justice Minister Cho Kuk’s family, culminating in disciplinary actions by the Ministry of Justice under former Minister Choo Mi-ae in November last year. Many speculated that Yoon would enter politics after his resignation, drawing significant attention to his future moves.
< April >
▶ April 5: LG exits mobile phone business
'LG, which had been a major player in the domestic mobile phone market alongside Samsung, decided to end its mobile phone business due to poor performance in both premium and budget markets'
Due to intensified competition and continuous poor performance, LG decided to focus more on core businesses. The mobile communications (MC) division was downsized, and after failing to find a buyer, the division was dismantled. LG Electronics stated it would continue sufficient after-sales service to avoid inconvenience to customers after exiting the mobile phone business.
▶ April 7: By-elections on April 7, People Power Party sweeps
'In the by-elections caused by vacancies in the mayoral offices of Seoul and Busan, People Power Party candidates Oh Se-hoon and Park Hyung-joon won first place in Seoul and Busan respectively'
Oh Se-hoon, the new mayor of Seoul from the People Power Party, swept all 25 districts including the affluent Gangnam 3 districts. Park Hyung-joon also won all 16 districts in Busan. Out of 21 constituencies in this election, the opposition and independents won 17. These areas had been won overwhelmingly by ruling party candidates in the general election a year earlier, indicating a dramatic shift in public sentiment. Oh notably won in Jongno and Gwangjin districts, where he had lost to ruling party candidates in the 2016 and 2020 general elections. The angry public sentiment was fierce. The reason for this 180-degree shift in public opinion within a year can be found in President Moon’s statement a year ago promising to humbly listen to public sentiment without arrogance, which was seen as unfulfilled by Moon and the ruling party-government-Blue House coalition.
▶ April 7: Kim Tae-hyun (Nowon-gu three women murder case)
'Kim Tae-hyun disguised as a delivery driver to enter the home of A, whom he met through an online game, and sequentially murdered A’s younger sister, mother, and A'
Kim Tae-hyun showed obsession by repeatedly contacting A, whom he met in an online gaming community, and visiting A’s home. When A stopped responding, Kim harbored resentment and disguised himself as a delivery driver to break into A’s home, murdering A’s younger sister, mother, and finally A. When police arrived, he did not come out and was found unconscious beside the victims after self-harm. The stalking had lasted three months, and the brutal nature of the crime, targeting vital points, led to public petitions demanding disclosure of his identity. Kim appeared at a photo line, apologized on his knees, but this only fueled public anger.
▶ April 25: Youn Yuh-jung wins Academy Award for Best Supporting Actress
'At the 93rd Academy Awards, Youn Yuh-jung won Best Supporting Actress for the film “Minari,” becoming the first Korean actor to win an individual Academy Award'
Youn’s win was the first for a Korean actor and the first for an Asian actor in 63 years. Her cheerful acceptance speech also attracted attention. She said, “I was a bit lucky tonight. I don’t believe in competition. All five nominees played different roles in different films,” showing respect to fellow nominees and earning applause.
▶ April 25: Medical student missing case at Han River
'Medical student Son Jeong-min, who drank with a friend overnight at Banpo Hangang Park in Seocho-gu, Seoul, was found dead. The friend present was identified as a prime suspect, sparking heated controversy mainly on YouTube'
Son went missing after drinking with a friend at Banpo Hangang Park from around 11 PM on the 24th to early morning of the 25th. The friend, A, reportedly woke up around 4:30 AM and went home. Son’s father appealed for help on his blog on the 28th. Six days after disappearance, Son’s body was found in the Han River near Banpo Hangang Park, wearing the same clothes as when he went missing. A rescue dog found the body drifting near the water taxi dock. The friend was identified as a suspect, leading to ongoing controversy and suspicion about the police investigation, which many people distrusted, prolonging the case’s controversy.
< May >
▶ May 2: Song Young-gil elected as leader of the Democratic Party
'Song Young-gil, a five-term lawmaker and former 13th mayor of Incheon, elected as the 5th party leader through an interim party convention'
At the national delegate convention held at the party headquarters in Yeouido, Seoul, Song Young-gil won first place with 35.60% of the combined votes from delegates, party members, and public opinion polls. As the new leader, Song is tasked with managing public sentiment confirmed by the April 7 by-election defeat, leading party reform, and fairly managing the next presidential election in March next year.
▶ May 31: U.S. SpaceX launches private manned spacecraft
SpaceX, a private company led by Tesla CEO Elon Musk, launched a manned spacecraft carrying two astronauts, marking the beginning of the private space exploration era. It was the first manned spacecraft launch from U.S. soil in nine years. The spacecraft, named Crew Dragon, docked with the International Space Station (ISS) 19 hours later.
< June >
▶ June 9: Collapse of demolition building in Hakdong, Gwangju
During redevelopment, the Hak-san building collapsed, burying a city bus and causing casualties (9 dead, 8 injured)
Police investigations revealed that illegal and reckless construction during the demolition directly caused the collapse. Overall safety management failures and various corruption related to the redevelopment project were exposed, provoking public anger. Police conducted a first investigation, sending nine suspects (five detained) to prosecution, and further investigations into trials and contract-related corruption are expected.
▶ June 11: Lee Jun-seok elected as leader of the People Power Party
'Lee Jun-seok, known as a “Park Geun-hye kid,” became the youngest leader of the main opposition party at age 36, 10 years after entering politics'
Lee Jun-seok, aged 36, set a record as the first 30-something leader of the main opposition party in Korean political history. At the party convention held on the 11th at the People Power Party headquarters, combining 70% party member votes and 30% public opinion polls, Lee received 43.8%. This unprecedented emergence of a 30-something party leader reflected public demand for political change and reform, though some expressed concerns about his lack of experience and potential new factional conflicts.
▶ June 17: Fire at Coupang logistics center in Icheon
'A fire broke out at Coupang’s logistics center in Icheon; due to complex structure and flammable materials, fire was extinguished after six days (1 dead, 1 injured)'
A fire at Coupang’s Icheon Deokpyeong logistics center resulted in the death of Fire Captain Kim Dong-sik, who was trapped while fighting the fire, and the complete destruction of the center. It took 32 hours before an apology from Coupang CEO Kang Hyung-seong was issued. The company stated that the fire incident was unrelated to founder Kim Beom-seok’s resignation, but public opinion was critical of the response.
< July >
▶ July 1: Implementation of the autonomous police system
'A system granting police authority to local governments in line with the ideology of decentralization, with local governments responsible for police establishment, maintenance, and operation'
After 76 years since the establishment of the police, the autonomous police system was fully implemented, creating a three-tier system of national police, national investigation headquarters, and autonomous police. Autonomous police, under the supervision of local autonomous police committees, handle community safety, traffic, domestic violence, and other public safety matters. President Moon Jae-in expressed expectations that this system would decentralize police power, strengthen democratic control, and enhance on-site and community-based policing to improve public safety and convenience.
▶ 2022 minimum wage set at 9,160 won
'The Minimum Wage Commission decided the minimum wage to be applied from next year (2022) at 9,160 won'
The Ministry of Employment and Labor finalized the minimum wage at 9,160 won per hour, a 5% increase from this year. Calculated monthly for 40 hours per week (including paid weekly holidays, based on 209 hours per month), it amounts to 1,914,440 won. The wage applies uniformly to all workplaces regardless of industry. Thus, under the Moon administration, the minimum wage rose from 6,470 won at its start in 2017 to 9,160 won in its final year, an increase of 2,690 won (+41.6%).
▶ July 23: Tokyo Olympics opening / First-ever 'no audience' Olympics... Suga steps down
'Originally scheduled for 2020 but postponed by a year due to COVID-19'
The Tokyo Olympics were held for the first time in an odd-numbered year and made Japan the first Asian country to host the Olympics twice. Due to a surge in COVID-19 cases and a state of emergency declared in Tokyo and other areas, all events were held without spectators. Dissatisfaction with the government’s COVID-19 response led to a plummet in Prime Minister Yoshihide Suga’s approval ratings, and he announced his resignation at the end of August, shortly after the Olympics.
▶ July 30: Yoon Seok-youl joins the People Power Party
'Four months after resigning as Prosecutor General, Yoon Seok-youl joined the People Power Party with strong desire for regime change'
On the 30th, a month after declaring his presidential candidacy on June 29, former Prosecutor General Yoon Seok-youl joined the People Power Party. The entry was sudden, known only to a few close aides, with the decision made on the night of the 29th. He stated, “I will start fairly in the main opposition party for regime change.”
< August >
▶ August 13: Lee Jae-yong released on parole
'Sentenced to 2 years and 6 months for the state affairs manipulation case; released on parole after 207 days in prison as a model prisoner'
On January 18, Lee Jae-yong was sentenced to 2 years and 6 months in prison in the retrial of the state affairs manipulation case and was re-incarcerated. After 207 days, he was released at 10 AM from Seoul Detention Center as a model prisoner. The Ministry of Justice decided on parole considering the prolonged COVID-19 pandemic and the national and global economic situation, which drew criticism as preferential treatment for a conglomerate heir. During parole, Lee is under probation, must report to a probation officer if changing residence or traveling domestically or abroad for over a month, and employment restrictions remain. He is also facing separate trials for unfair mergers, accounting fraud, and illegal propofol use, requiring frequent court appearances.
▶ August 19: Forced passage of the Media Arbitration Act
'Although the stated purpose was to remedy damages caused by false and manipulated reports, the government and ruling party’s political necessity seemed to drive the result. The Democratic Party pushed through the amendment despite strong opposition from domestic and international media groups and opposition parties.'
The amendment imposed up to five times punitive damages for “false and manipulated reports” and based damages on media company sales, raising constitutional concerns. Despite this, the bill was pushed through under the pretext of “catching fake news.” After the agenda adjustment committee passed the amendment on the 18th, the full committee quickly finalized it. With 9 of 16 Culture, Sports and Tourism Committee members from the ruling coalition, the opposition People Power Party could not block the bill. The process was criticized as undemocratic and a legislative dictatorship, undermining the committee’s intended 90-day deliberation period.
▶ August 31: U.S. declares complete withdrawal from Afghanistan
'The long war between the U.S. and the Islamic regime in Afghanistan following the 9/11 attacks (October 7, 2001 ? August 30, 2021) finally ended. Terrified Afghans rushed to the airport to flee, and the U.S. and Europe hastily evacuated. During this, the Islamic State Khorasan (IS-K) carried out a suicide bombing at Kabul airport, killing 13 U.S. soldiers and over 100 others.'
President Joe Biden officially declared the completion of U.S. withdrawal from Afghanistan. The Taliban, who took control of Afghanistan, immediately declared “complete independence” and celebrated. Biden stated that over 120,000 U.S. and allied citizens were evacuated, marking the end of 20 years of U.S. military presence. He promised safe passage to those wishing to leave Afghanistan and emphasized that the world would hold the Taliban accountable for keeping this promise.
< September >
▶ September 23: Electricity rate hike confirmed
'After much debate, electricity rates rose for the first time in 8 years. Some say it’s a bill resulting from the nuclear phase-out policy'
The government and Korea Electric Power Corporation announced electricity rate increases starting in October, the first in 8 years due to rising fuel costs. For a family of four, the monthly increase is up to 1,050 won. Although many blamed the nuclear phase-out policy for the hike, KEPCO President Jeong Seung-il stated the increase was absolutely not due to nuclear phase-out but due to soaring fuel costs. He added that the effects of nuclear power reduction would only appear after 2025, not yet.
▶ Daejang-dong scandal spreads
'An unprecedented cartel involving collusion between city officials and companies causing breach of trust. With ruling and opposition parties targeting each other, the outcome remains uncertain'
In 2015, then Seongnam Mayor Lee Jae-myung, Democratic Party presidential candidate, oversaw the urban development corporation’s design to limit Seongnam city’s share of profits from the Daejang-dong development. However, private companies Hwacheon Daeyu Asset Management and Cheonhwa Dongin 1-7 made astronomical profits, shocking many. Seongnam city received 183 billion won in dividends, but Hwacheon Daeyu, which invested less, received over 854 billion won. The Seoul Central District Prosecutors’ Office indicted former Seongnam Urban Development Corporation planning director Yoo Dong-gyu, Hwacheon Daeyu major shareholder Kim Man-bae, Cheonhwa Dongin owner Nam Wook lawyer, and accountant Jung Young-hak, but progress stalled. Investigations into higher-ups were hindered by the suicides of former development director Yoo Han-gi and development section chief Kim Moon-gi. The arrest warrant for former lawmaker Kwak Sang-do was dismissed, stalling bribery investigations. The prosecution’s investigation capacity and will are currently doubted.
▶ Squid Game craze
'The nine-episode Netflix series “Squid Game” gained phenomenal popularity worldwide amid praise from domestic and international experts'
Released on September 17, Netflix’s original series “Squid Game” was watched by over 140 million households worldwide within four weeks, becoming the highest-grossing Netflix original ever. The global hit played a major role in promoting K-content worldwide. The series depicts a brutal survival competition among people at the edge of life, using children’s neighborhood games like “Mugunghwa Flower Has Bloomed” and “Dalgona Candy” as deadly survival games, satirizing a society entrenched in polarization and inequality, capturing viewers’ attention and popularity.
< October >
▶ October 11: Lee Jae-myung elected as Democratic Party presidential candidate
'Lee Jae-myung defeated Lee Nak-yon to become the Democratic Party’s presidential candidate'
Lee Jae-myung, Governor of Gyeonggi Province, was selected as the 20th presidential candidate of the Democratic Party. Including Seoul regional votes and the third general public vote, Lee received 719,905 votes (50.29%), narrowly surpassing the majority and avoiding a runoff. Runner-up Lee Nak-yon received 560,392 votes (39.14%). Upon selection, Lee expressed a heavy sense of responsibility and pledged to humbly follow the people’s will. He faces the challenge of overcoming the “Daejang-dong” issue and winning over centrist voters in the general election.
▶ October 21: Launch of Korean-type launch vehicle ‘Nuriho’
'The liquid rocket Nuriho, developed with domestic technology, was launched for the first time. The separation procedures of the 1st and 2nd stages succeeded, but orbit insertion failed. The second launch is scheduled for May next year (2022)'
Korea took a step closer to becoming the world’s 7th space power with the partial success of the first launch of the domestically developed space launch vehicle “Nuriho (KSLV-II).” Developed over 12 years with purely Korean technology, from engine design to manufacturing, testing, and launch operation, 300 domestic companies participated, with 250 researchers involved and a budget of about 2 trillion won. On the 21st at 5 PM, the Korea Aerospace Research Institute launched Nuriho from Naro Space Center. The 3rd stage rocket successfully separated the dummy satellite near 700 km altitude, but orbit insertion was incomplete, leaving orbit stabilization as an unfinished task.
▶ October 26: Former President Roh Tae-woo passes away
'Roh Tae-woo, who served as the 13th president, died of illness at Seoul National University Hospital'
Former President Roh Tae-woo, along with Chun Doo-hwan, led the December 12 military coup, becoming a core figure in the new military regime and rising to second-in-command during Chun’s rule. He was elected the 13th president after serving as the ruling party’s (Democratic Justice Party) leader. After retirement, he faced imprisonment for slush funds, the military coup, and the bloody suppression of the Gwangju Democratization Movement. Considering his indirect apology for the May 18 issue and efforts to pay fines, he was given a state funeral.
< November >
▶ Urea solution shortage crisis
'A shortage of urea solution, essential for diesel vehicles and freight trucks, occurred due to supply issues from China amid conflicts with Australia'
China’s export restrictions on urea solution caused a shortage of this essential product for diesel vehicles and freight trucks, leading to a crisis. The price, usually around 10,000 won per 10 liters, surged nearly tenfold. Citizens desperately queued at gas stations and urea solution producers from early morning to secure supplies. Concerns arose about logistics disruptions centered on freight trucks, as well as secondary and tertiary impacts on public transportation, fire trucks, and raw material supply in industries. The industry emphasized the need for alternative import sources and emergency stock management manuals for essential items. The government also diversified import sources to Indonesia, Vietnam, and Australia and is working to resolve the issue.
▶ November 5: Yoon Seok-youl elected as People Power Party presidential candidate
'Yoon Seok-youl defeated Hong Joon-pyo to become the People Power Party’s presidential candidate'
After joining the People Power Party, Yoon initially built momentum with high early support, establishing a leading position. However, controversies over his remarks about former President Chun Doo-hwan and a subsequent “dog apology” controversy caused significant fluctuations and declines in his support during the primary.
▶ November 23: Former President Chun Doo-hwan passes away
'Chun Doo-hwan, who led the December 12 military rebellion, seized military power, and served as the 11th and 12th president, died at his home in Yeonhui-dong, Seoul. With his passing, all presidents who ruled in the 20th century have passed into history'
Former President Chun Doo-hwan, who took power through the December 12 military coup in 1979, established the 5th Republic with a seven-year single-term presidency by amending the constitution and extended military rule through the “gymnasium election,” failing to gain legitimacy. His regime violently suppressed the May 18 Gwangju Democratization Movement using the military and established the Samcheong Training Center to detain innocent citizens, earning widespread condemnation for human rights abuses. After retirement, he was sentenced to life imprisonment and fined 220.5 billion won. He never apologized or made efforts to pay fines. The government did not grant him a state funeral or family funeral support.
< December >
▶ December 1: First domestic Omicron variant confirmed
'The 13th COVID-19 variant designated by WHO, first reported in Africa, rapidly spread and reached Korea'
A couple in their 40s residing in Incheon, who visited Nigeria, were suspected of infection with the new Omicron variant. They had completed Moderna vaccinations and visited Nigeria from the 14th to 23rd before returning. On the 25th, PCR tests confirmed COVID-19 infection. Their children and acquaintances who greeted them at the airport and accompanied them home also tested positive. Subsequently, Omicron infections spread in churches they visited, causing widespread public anxiety.
▶ December 24: Pardon of former President Park Geun-hye and parole release of former lawmaker Lee Seok-ki
'Former President Park Geun-hye, imprisoned for state affairs manipulation, was unexpectedly pardoned a day before Christmas and released at midnight on the 31st. Lee Seok-ki, imprisoned for sedition, was released on parole shortly before his full term'
Park was released at midnight on the 31st after 4 years and 9 months in custody. President Moon Jae-in granted a special pardon citing national unity and Park’s deteriorating health. Park was sentenced to 20 years in prison, a 18 billion won fine, and 3.5 billion won in confiscation for state affairs manipulation and illegal payments to the National Intelligence Service. Additionally, she had a 2-year sentence confirmed in 2018 for interference in Saenuri Party nominations, meaning her full release was scheduled for 2039. The pardon exempted 17 years and 3 months of imprisonment and about 15 billion won in remaining fines.
Lee Seok-ki, former Unified Progressive Party lawmaker imprisoned for sedition, was released on parole on Christmas morning about a year before his full term. He was arrested in September 2013 for conspiring to overthrow the system in line with North Korean revolutionary theory and sentenced to 9 years imprisonment and 7 years disqualification. He also received an additional 8-month sentence for embezzlement from his election promotion company. During the investigation into judicial administrative abuse under former Chief Justice Yang Sung-tae, evidence of “trial trading” emerged, leading to a retrial request, which was rejected by the court. Lee remained incarcerated during this period.
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