South Korean President Drops Martial-Law Order After Opposition Backlash

Summary

WSJ What’s News: South Korean President Drops Martial-Law Order After Opposition Backlash
Episode Released on December 3, 2024

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1. Political Turmoil in South Korea

The episode opens with a comprehensive analysis of the rapid political developments in South Korea. President Yoon Suk Yeol declared martial law in Seoul, citing threats from North Korean communist forces and accusing opposition parties of compromising national security. This declaration sparked widespread protests in the capital city.

Timestamp [00:56]:
Tracy Hunt highlights the gravity of the situation:
"It's not the most, but it is among the most controversial decisions that this president has made in his four years."

However, within hours, the South Korean Parliament unanimously voted to rescind the martial law order. Facing intense opposition and declining approval ratings, President Yoon conceded and announced the lifting of martial law.

US Involvement and Reactions:
South Korea hosts the largest US overseas military base, accommodating approximately 28,500 American personnel. Despite the swift developments, the White House's National Security Council stated that the US had not been pre-informed about the martial law declaration.

Timestamp [02:10]:
An unnamed White House official expressed cautious concern:
"This is an incredibly fluid situation. ... We are watching these developments with grave concern."

The White House emphasized that the US diplomatic stance toward South Korea remains unchanged, maintaining stability despite the internal turmoil.

Timestamp [02:32]:
Tracy Hunt notes the deeper political undercurrents:
"President Yoon's approval ratings hit fresh lows amid a bitter budget showdown with the opposition and infighting over political scandals inside his own conservative party."

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2. US Labor Market Updates: Job Openings Rise in October

Shifting focus to US economic indicators, the podcast reports a surprising increase in job openings for October, countering a two-year trend of declining vacancies.

Timestamp [02:50]:
Tracy Hunt provides the numbers:
"On the last day of October, job openings reached 7.7 million, up from a revised 7.4 million in September."

Despite solid job creation and a steady unemployment rate of 4.1%, the JOLTS (Job Openings and Labor Turnover Survey) data suggests a cooling labor market. The slight uptick in openings is seen as a positive sign amidst broader market uncertainties.

Market Reactions:
The S&P 500 and Nasdaq achieved new records, albeit with modest gains, reflecting investor confidence in a potential Federal Reserve interest rate cut anticipated in two weeks. Conversely, the Dow Jones Industrial Average edged lower by 0.2%.

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3. Potential Impact of Trump’s Tariffs on CPKC Railroad

The discussion then shifts to the implications of potential tariffs proposed by President-elect Donald Trump, specifically targeting the Canadian Pacific Kansas City (CPKC) railroad.

Timestamp [04:03]:
Tracy Hunt introduces the issue:
"A railroad that connects the U.S., Canada, and Mexico is already feeling the heat."

Created from a merger of two major railroads, CPKC is crucial for the free flow of goods across North America. Trump's looming tariffs have already led to a sell-off in CPKC shares due to investor concerns over disrupted trade flows.

Timestamp [04:49]:
Esther Fung elaborates on investor worries:
"They are concerned that the tariffs, if implemented, would stymie the flow of goods between these three countries."

Historical Context and Future Projections:
Esther Fung compares the current situation to Trump's previous administration:
"The last time around, Trump introduced tariffs mostly on goods made in China... It was more the MCA and the pandemic that improved freight flows between these three countries rather than the Trump tariffs during the first administration."

This historical perspective suggests that while tariffs could pose challenges, other factors like the USMCA (United States-Mexico-Canada Agreement) and pandemic-driven nearshoring efforts might mitigate long-term impacts on CPKC.

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4. President Biden’s Pardon of Hunter Biden: Political Fallout and Legacy

A significant portion of the episode delves into President Joe Biden's controversial decision to pardon his son, Hunter Biden. This move has ignited backlash from both Republicans and Democrats, threatening Biden's commitment to democratic norms and his legacy.

Timestamp [06:31]:
Tracy Hunt previews the segment:
"President Biden's decision to pardon his son is facing backlash from Republicans and Democrats."

Internal Democratic Criticism:
Annie Lynskey, White House reporter, explains the internal dissent:
"Some Democrats are saying that the president's pardon will make it hard to criticize Trump for pardons he issued during his first term or about his use of the justice system when he returns to office."
Timestamp [07:32]

Impact on Biden’s Promise to Restore Norms:
Annie Lynskey elaborates on the contradiction between Biden’s actions and his campaign promises:
"President Biden, when he won and when he beat Donald Trump, he came into office with this promise and pledge to restore democratic norms, and that included an independent judiciary... Once Hunter Biden was found guilty on gun charges in Delaware earlier this year, the president repeatedly said he would not pardon or use his clemency powers to absolve his son... this pardon is different than when other presidents have pardoned family members."
Timestamp [08:08]

This decision undermines Biden's agenda to uphold an independent judiciary and equal application of the law, raising concerns about a "two-tiered justice system." The backlash suggests potential difficulties for Democrats in holding Trump accountable for similar actions.

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5. Supreme Court Case on Transgender Rights vs. States’ Authority

Looking ahead, the podcast previews a pivotal Supreme Court case set to hear arguments on whether states can prohibit doctors from prescribing gender treatments to minors under 18.

Timestamp [09:46]:
Tracy Hunt introduces the case:
"The U.S. Supreme Court tomorrow will hear arguments about whether states can block doctors from prescribing gender treatments to patients under the age of 18."

Case Details and Stakeholders:
Timestamp [10:23]:
Jess Braven, Supreme Court correspondent, outlines the plaintiffs and issues:
"The private plaintiffs involve three families with transgender children and a doctor... supported by the Biden administration's Justice Department... the state of Tennessee argues that hormone treatments or puberty blockers are risky and not fully understood techniques that could potentially have lifelong effects on children."

Legal Arguments:
States argue that such medical treatments are age-sensitive and within their traditional authority to regulate medical practices for minors. Plaintiffs, supported by the federal government, contend that denying these treatments violates the Equal Protection Clause of the 14th Amendment.

Possible Influence of Trump’s Election:
Timestamp [11:33]:
Jess Braven speculates on the administration's potential shift:
"The Trump administration Department of Justice will likely reverse its position, viewing the issue differently... However, the case remains active due to the involvement of private plaintiffs."

The ruling, expected during Trump's presidency, could significantly impact transgender rights and the balance of state versus federal authority in medical decisions.

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Conclusion

The episode of WSJ’s “What’s News” provides an in-depth exploration of several critical issues shaping the global and political landscape. From South Korea's abrupt martial law declaration and its subsequent repeal to the intricate dynamics of US labor markets, the potential repercussions of Trump's tariffs on major railroads, the contentious pardon of Hunter Biden, and a landmark Supreme Court case on transgender rights, the podcast delivers a nuanced and comprehensive overview of events influencing markets and politics worldwide.

Notable Quotes:

• "President Yoon's approval ratings hit fresh lows amid a bitter budget showdown with the opposition and infighting over political scandals inside his own conservative party." — Tracy Hunt [02:32]
• "This is an incredibly fluid situation... We are watching these developments with grave concern." — Unnamed White House Official [02:10]
• "This pardon is different than when other presidents have pardoned family members." — Annie Lynskey [08:08]
• "They are concerned that the tariffs, if implemented, would stymie the flow of goods between these three countries." — Esther Fung [04:49]

For more detailed updates and ongoing coverage, listeners are encouraged to visit WSJ.com.

Transcript

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[Tracy Hunt]

Political turmoil in South Korea after the president declares martial law and then lifts it after opposition from Parliament. And how President Biden's pardon of his son threatens his legacy in the Democrats fight against President elect Donald Trump.

[Annie Lynskey]

It's not the most, but it is among the most controversial decisions that this president has made in his four years.

[Tracy Hunt]

Plus what Trump's looming tariffs might mean for a railroad that connects Canada, the U.S. and Mexico. It's Tuesday, December 3rd. I'm Tracy Hunt for the Wall Street Journal. This is the PM edition of what's the top headlines and business stories that move the world today. We'll begin today with the political turmoil unfolding in South Korea. Protests broke out in the capital Seoul after South Korea's President Yoon Suk Yeol declared martial law, accusing opposition parties of making the nation vulnerable to North Korean communist forces. A few hours later, the country's parliament voted unanimously to end martial law, and eventually the president backtracked and said he would lift his declaration. South Korea is home to the US's largest overseas military base and hosts roughly 28,500American military personnel. A spokeswoman for the White House's National Security Council said the US had not been notified in advance of the Marshall Rule decision. And a State Department spokesman said the US's diplomatic posture towards South Korea had not changed.

[Unnamed White House Official]

Look, this is an incredibly fluid situation. I'm not going to jump to any immediate conclusions at this point. What I can say is that we are watching these developments with grave concern. We're staying in close, appropriate touch with our ROK counterparts, and I'm sure we'll have more to say as the situation continues to unfold. I just don't want to get ahead of that.

[Tracy Hunt]

The surprising and unusual series of events came as President Yoon's approval ratings hit fresh lows amid a bitter budget showdown with the opposition and infighting over political scandals inside his own conservative party. For updates to this developing story, go to WSJ.com US job openings increased in October, bucking a trend of falling vacancies for most of the past two years. The Labor Department today said in its latest job Openings and Labor Turnover survey, or jolts, that the number of openings on the last day of October was 7.7 million, up from a revised 7.4 million in September. The department's separate monthly employment report has shown solid job creation figures and a stable unemployment rate of 4.1%, no higher than it was in June. But JOLTS data has suggested the labor market is cooling. The number of openings has trended lower since mid-2022, and September's reading was the weakest figure since January 2021 in U.S. markets. The S&P 500 in the Nasdaq hit new records today, up less than 0.1% and 0.4%, respectively, as investors grew more confident that the Federal Reserve is heading toward an interest rate cut in two weeks. The Dow ticks lower by 0.2%.

[Annie Lynskey]

We'Ve.

[Tracy Hunt]

Been talking about the impact of tariffs that President Elect Donald Trump has said he will impose. Well, a railroad that connects the U.S. canada and Mexico is already feeling the heat. The Canadian Pacific Kansas City, or cpkc, was created last year from a merger of two major railroads. The rail network is the only freight railroad that connects factories and ports across the three countries and is the ultimate bet on the promise of the free flow of goods. Now that bet is looking riskier. Trump's election victory sparked a small sell off of CPKC shares. My colleague Alex Ocelez spoke with WSJ reporter Esther Fung and asked her why investors are worried.

[Esther Fung]

They are concerned that the tariffs, if implemented, would stymie the flow of goods between these three countries. One of the premise for CPKC's creation was the free flow of trade between Mexico, the United States and Canada. So anything that throws a wrench into this could make some investors nervous. Some have said that Trump is using tariffs as a negotiation tactic. It might not come to fruition, or if it does come to fruition, it might be something that's really short lived.

[Tracy Hunt]

So the last time Trump was in office he introduced tariffs and the amount of freight moving over railroads was actually boosted. So why would this be any different this time around?

[Esther Fung]

The last time around, Trump introduced tariffs mostly on goods made in China and when I talked to some railroad executives, they told me that impacted some of the freight flows both coming into the United States and going out because there's also retaliatory tariffs that China imposed on the US and then the three countries signed this new NAFTA called the mca. And then the pandemic hit. It was mostly the pandemic that caused more companies to try and do more near shoring. They didn't want to rely too much on China. And so they brought some manufacturing capabilities to Mexico and that fueled the trade between Mexico and the US So actually it's more the MCA and the pandemic that improved freight flows between these three countries rather than the Trump tariffs during the first administration.

[Tracy Hunt]

That was WSJ reporter Esther Fung speaking with Alex Osila. Coming up, President Biden's decision to pardon his son is facing backlash from Republicans and Democrats. That's after the break. The political fallout from President Biden's decision to pardon his son Hunter continues. Lawmakers on both sides of the aisle have spoken out against the pardon, accusing the president of presiding over a, quote, two tiered justice system and that it was an improper use of power. The pardon also threatens Biden's political legacy as a leader who promised to restore the Democratic norms. Annie Lynskey is a White House reporter for the Wall Street Journal. Annie, some Democrats are saying that the president's pardon will make it hard to criticize Trump for pardons he issued during his first term or about his use of the justice system when he returns to office. Why is that?

[Annie Lynskey]

This move has been very controversial by the president. One of the main criticisms that the president is getting from his own party is that this interference with a Department of justice investigation prosecution makes it a lot harder for Democrats to criticize Trump if he were to do the same in his second term. So it's putting Democrats on unsteady ground. And that's one of the reasons that the president is being criticized for this decision.

[Tracy Hunt]

How does this pardon of his son fit into his legacy?

[Annie Lynskey]

President Biden, when he won and when he beat Donald Trump, he came into office with this promise and pledge to restore democratic norms, and that included an independent judiciary. He made a really big deal when he came into office that he was not going to replace David Weiss, the U.S. attorney for the state of Delaware. When presidents come in, the US Attorneys all by tradition, resign. And in this case, the White House decided proactively to keep Weiss on the Trump appointee because he was overseeing an investigation into his son. And President Biden did not want to be seen as interfering in any way with that investigation. Over the course of the, you know, the next four years, the president and the White House repeatedly said that they would not interfere. And then once Hunter Biden was found guilty on gun charges in Delaware earlier this year, the president repeatedly said he would not pardon or use his clemency powers to absolve his son. I say all that because Biden's agenda was about restoring norms, and this action undercuts that agenda. And so that is why this pardon is different than when other presidents have pardoned family members. This has happened before, but in those cases, you did not have a president who had made such a major plank of his agenda being this idea of independent judiciary and restoring norms.

[Tracy Hunt]

That was our reporter Annie Lynskey. Thank you so much, Annie.

[Annie Lynskey]

Thank you.

[Tracy Hunt]

The U.S. supreme Court tomorrow will hear arguments about whether states can block doctors from prescribing gender treatments to patients under the age of 18. The case, which pits transgender rights against the traditional power of the states to regulate the practice of medicine, implicates one of the most divisive social issues in today's political environment, one that President Elect Donald Trump leveraged in the final weeks of the election. Jess Braven is the Wall Street Journal Supreme Court correspondent. First off, Jess, let's just lay out the details of the case. Who are the plaintiffs and what issues are they bringing before the court?

[Jess Braven]

The private plaintiffs involve three families with transgender children and a doctor who treats transgender children in the state of Tennessee. And they are also supported by the Biden administration's Justice Department. On the other side, we have the state of Tennessee represented by their attorney, Jonathan Scarmetti. The plaintiff's chances aren't great given this court, but it's a more complicated issue than just whether or not you believe transgender children should have hormone treatments or should have those available if their doctors prescribe them. It's a question of what does the equal protection clause of the 14th amendment mean?

[Tracy Hunt]

What is the state of Tennessee gonna be arguing?

[Jess Braven]

Well, Tennessee argues that hormone treatments or puberty blockers are risky and not fully understood techniques that could potentially have lifelong effects on children. And they say the real classification here is based on age and that states traditionally can restrict things for minors, people under 18 that adults may have a right to do.

[Tracy Hunt]

The court's ruling on this case will be handed down when Trump is in office. How might that affect the outcome?

[Jess Braven]

Well, one thing that we expect is that the Department of Justice will change its position. The Biden administration took the view that the equal protection clause protects the right of these parents and minors to make this decision under its prohibition of sex discrimination. We expect the Trump administration Department of justice will reverse that position, will say this is not what sex discrimination is about, and no one is being discriminated based on sex because these treatments are being prohibited to both boys and girls. However, the case doesn't go away because there are private individuals who are involved in it and their claims would remain valid.

[Tracy Hunt]

Jess Braven covers the U.S. supreme Court for the Wall Street Journal. And that's what's news for this Tuesday afternoon. Today's show was produced by Pierre Bienname and Anthony Bansi with supervising producers Catherine Milsop and Michael Kazmidis. Additional audio from Reuters. I'm Tracy Hunt for the Wall Street Journal. We'll be back with a new show tomorrow morning. Thanks for listening.