Table of Contents
- Korea Focus - January 2014 - TOC - Politics 1. Adverse Impact of Abe’s Visit to Yasukuni Shrine 2. Sino-Japanese Conflict and Korea’s Role for Peace in Northeast Asia 3. Writing History to Settle the East Asian Paradox 4. Politics Not Everything in Korea-Japan Relations
- Economy 1. Current Account Surpluses Not Just Blessings for Korea 2. Reflection on Labor Productivity 3. Conglomerates’ Recruitment Exams 4. Safeguard the Fiscal Soundness 5. [DEBATE] Fewer Work Hours
- Society 1. Solution for Fine Dust: Turn Crisis into Opportunity 2. [DEBATE] Bill on Addiction to Online Games 3. Koreans Who Left for Germany 50 Years Ago 4. Permit Marriage between ‘Some Man’ and ‘Some Woman’ 5. ‘Silent Screams’ over Twilight Childcare
- Culture 1. UNESCO’s Bankruptcy Crisis and Korea’s Role 2. Making Kimchi and Sharing Love 3. The National Museum of Modern and Contemporary Art in Seoul 4. Cheers to Speed Skater Lee Sang-hwa 5. Webtoons: A Driving Force behind Creative Economy
- Essays 1. North Korea’s ‘New Economic Management System’: Main Features and Problems 2. Korea, Koreans and Korean Products as Seen by Foreigners 3. Recent Trends in Capital Spending and Policy Implications 4. South Koreans’ Increasing Awareness of the Need for Unification
- Features 1. Google to Promote Hangeul
- Book Reviews 1. Why Do Koreans Say ‘Keep Working Hard’? 2. Poems by 50 North Korean Poets and Criticism
- Interview 1. Chung Kyung-wha: ‘When I laid down the bow, the sound came to me.’
- COPYRIGHT
- Adverse Impact of Abe’s Visit to Yasukuni Shrine - Sino-Japanese Conflict and Korea’s Role for Peace in Northeast Asia - Writing History to Settle the East Asian Paradox - Politics Not Everything in Korea-Japan Relations
Adverse Impact of Abe’s Visit to Yasukuni Shrine
Jin Chang-soo Director, Japan Center Sejong Institute
Japanese Prime Minister Shinzo Abe’s recent visit to the Yasukuni Shrine, that enshrines 14 Class-A World War II criminals, has aroused tremendous rage and concerns among Koreans. Their first concern is about reduced efforts to mend the strained relations between Korea and Japan. While many people hope that the relationship will be repaired, the Japanese premier’s controversial shrine visit threatens to dash their expectations, which already are precarious.
Second, although he repeatedly asserted that the door is open for mutual talks, the right-wing Japanese leader exhibited his agility in surprising his neighbors, imprinting a bitter lesson. Koreans must be aware that they can be betrayed at any moment in diplomatic engagements with Japan. It is a lesson that will remain a resentful barrier to bilateral relations. A third apprehension is related to the looming specter of Nobusuke Kishi, Abe’s maternal grandfather and a prime minister of Japan in the late 1950s, who advocated a pro-U.S. stance but campaigned for the reconstruction of a prewar Japan. Like his grandfather, a Class-A war crime suspect later rescinded of charges, Abe recently railroaded a state secrecy bill through the Diet, overriding widespread opposition. His subsequent visit to the Yasukuni Shrine obviously was aimed at rallying the conservative forces around his ultra-right cause. If Abe wishes to realize his grandfather’s nostalgic dreams for prewar Japan, the consequences would bring about misfortune to not only Japan but also
the entire Northeast Asian region. Abe’s act of paying tribute to the war dead literally paved the way for Japanese conservatives to amplify their rightist perspectives of history. Many of them used to claim that a visit to Yasukuni by a sitting prime minister underlines the innocence of Japan’s wartime imperialism. The majority of the Japanese people and mass media disagree. However, the Japanese populace, frustrated by decades of slow economic growth, may regard the shrine visit as a symbolic return to a “strong Japan,” which they yearn for.
Also notable is the mounting Japanese backlash to the criticism raised in Korea and China against Yasukuni visits by Japan’s political leaders. Under these circumstances, rightist views of history, often regarded as taboo in the past, will expand in the Japanese political world and the chances of forging a shared interpretation of history by Koreans and Japanese will diminish. As long as Abe is in office, it seems difficult to lay the ground for a summit between the two countries as well. Adverse repercussions of the Japanese premier’s provocative shrine visit are not confined to the Seoul-Tokyo relationship. An aggravation of relations between Korea and Japan, both allies of the United States, will influence Washington’s “pivot to Asia” policy that calls for close collaboration among the three countries. Already tense relations between Beijing and Tokyo will deteriorate further. China will continue to flex its military muscle in front of Japan, which would respond with a concerted campaign to become a “normal state” armed with offensive capabilities. Consequently, Northeast Asian nations would lose all trust in one another and either cling to the United States or indulge in an arms race.
In this respect, the Korean government should refrain from adhering to intransigent measures to avoid stoking negative public sentiment. It needs strategic fortitude to prudently weigh the level of its response while closely watching steps being taken by Beijing and Washington. Seoul must not wage a proxy war for Beijing but strategically apply pressure via Washington. Also necessary is an in-depth review of the effectiveness of its policies thus far taken toward Japan. Prime Minister Abe’s recent behavior eloquently testifies that historic viewpoints pose a long-range question that cannot be easily settled. Therefore, institutional devices are required to change Japan’s historical perception in the mid to long term through sustained efforts for dialogue, research and investigations on history. Also needed is a forward-looking government policy to cope with the vicious circle of growing mistrust among Northeast Asian nations.
Defying all adversities, Korea ought to maintain its efforts to resolve the “Northeast Asian paradox� in its relations with Japan. This should be done within the frame of its Northeast Asia Peace and Cooperation Initiative, which calls for a wide range of concrete policies and programs.
[ Korea Economic Daily, December 30, 2013 ]
www.koreafocus.or.kr
Sino-Japanese Conflict and Korea’s Role for Peace in Northeast Asia
Editorial The Kyunghyang Shinmun
On November 23, China declared an air defense identification zone in the East China Sea that overlaps with Japan’s airspace and includes the disputed Senkaku Islands, also known as the Diaoyu Islands. Before they pass through this zone, foreign aircraft should submit their flight plans in advance, Beijing said. If they violate the rules, China said it will take “defensive emergency measures” by sending its military aircraft into the zone. In fact, China’s air force sent its first planes, including fighter jets, to enforce the rules on the same day. Japan scrambled its own fighter jets soon afterward. Japanese Prime Minister Shinzo Abe held an emergency cabinet meeting after China’s declaration, and the Japanese Foreign Ministry lodged a stern protest, saying that China’s action “aggravated the situation.” The ministry also was expected to call in Chinese Ambassador Cheng Yonghua soon to make Tokyo’s position clear to Beijing. In a statement, U.S. Secretary of State John Kerry called China’s action “an attempt to change the status quo... and undermine regional stability.” U.S. Secretary of Defense Chuck Hagel also expressed worries in a separate statement, citing the “risk of accidents.” China’s tough action came a year after Japan designated territorial baselines around the Senkaku Islands.
The Sino-Japanese confrontation over the islands looks very ominous, because any attempt by either side to apply military pressure risks unintended escalation into an actual clash. Nobody can guarantee
that it can’t occur. As shown by the statements by Kerry and Hagel, China’s action raises concerns that it could lead to a conflict between Washington and Beijing. By the same token, as shown by Washington’s recent expression of open support to Tokyo’s right of collective self-defense, the United States seems to be hoping for an expanded Japanese military role in Northeast Asia. If it doesn’t want a rearmed Japan helping the United States try to contain China, Beijing should seek a dialogue with Tokyo, rather than irritating it. Of course, Tokyo should also act prudently so the U.S.-Japan alliance won’t be misunderstood as an arrangement to contain China. Sino-Japanese confrontation could leave the entire Northeast Asia, a region that has already been driven into a multilayered conflict, unstable and crisis-prone.
Currently, the region is beset with tension on three spheres: Beijing-Tokyo, Seoul-Tokyo and Washington-Beijing. Despite their efforts to promote bilateral cooperative relations, Seoul and Beijing alone cannot bridge all the differences. Nevertheless, Seoul has a very important role in contributing to stability and peace in Northeast Asia.
Among the Northeast Asian nations, only Korea stands at a crossroads of conflict and cooperation. It could be pulled into a vortex on the one hand and serve as a peace bridge on the other hand. What is clear is that Korea will have a more advantageous strategic position if it is proactive in seeking dialogue and cooperation in the region, instead of being stuck in between or watching from the sidelines.
[ November 25, 2013 ]
www.koreafocus.or.kr
Writing History to Settle the East Asian Paradox
Cho Hae-joang Professor of Cultural Anthropology Yonsei University
Public attention has been drawn again to the possibility of Northeast Asian nations jointly producing a history textbook. While attending an international academic conference marking the 50th anniversary of the founding of the Korea National Diplomatic Academy on November 14, President Park Geun-hye backed the idea, saying it would help resolve the “paradox of Asia,” where countries are getting closer economically, but experiencing more political, cultural and military conflicts. “The goal,” Park stressed, “is to make the region peaceful and lead to cooperation between Eurasia and the Pacific region.” If they are connected to each other, APEC (Asia-Pacific Economic Cooperation), an Asia-Pacific economic community, and ASEM (Asia-Europe Meeting), an AsiaEurope forum, can create a new economic cooperation framework, she added.
The president suggested that a joint textbook written through sustained dialogue and cooperation could contribute to reconciliation just as it did when Germany, which started World War II, jointly published a history textbook with France and Poland. Park’s initiative is good but it would not be easy to execute unless there is a shared understanding of history. Simply put, World War II was a war among Western powers, with Japan being an “outsider.” After the war, German people sincerely joined the joint history textbook project in Europe, while remaining thoroughly contrite for the atrocities they committed.
But Japan, which entered the war in a desperate effort not to be disdained and sidestepped by Western powers, was a second fiddler which ultimately surrendered after being hit with atomic bombs. Would the United States have dropped atomic bombs on Germany, where relatives of many Americans lived? This question is raised in the context of Japan still believing it was a war victim and having an inferiority complex toward the West, despite its wartime aggressions. In fact, Korea and China, which have achieved “economic miracles,” also feel inferior toward the West and are obsessed with catching up. If we are to write a history “by the nations, for the nations, of the nations” in Northeast Asia, we need to get rid of feelings of inferiority and focus on the region’s unique modernization. We should begin with the present and understand that it will be impossible to reach a perfect consensus on the past.
In the current academia of historical studies, there are roughly three groups of historians. The first group consists of neo-liberalists, who advocate sustainable economic growth to survive in a jungle of life-or-death competition. The second group is postmodernists who pay attention to the socio-cultural crisis that is deteriorating as a consequence of unbalanced economic development. And the third group is determinists who believe that history is determined by scientific and technological development. Little exchange occurs among these groups.
Who should we trust to compile a joint history textbook for Northeast Asia? The answer is all of them. What is important is to let each party concerned admit that it is impossible to reach a consensus due to differences in their views of the world, while avoiding a hasty agreement. They will only have to write chapters, where they find it difficult to reach a consensus. Indeed, history is a temporary conclusion, isn’t it? From this perspective, we need a new concept of a textbook ― that it is a process of looking for several answers, not a single one. The textbook writers should focus on areas where there is no agreement.
If she really wants to push ahead with this project, President Park will only need to bring together historians who share the same historical perspectives, from across borders, and support them so that they can work together delightfully. She will only have to provide them with an opportunity to produce their work with pride. I mean it is important to avoid unnecessary conflict, but implement the project on a gradual basis.
History is a process of reaching a consensus. Writing a history involves “communicative rationality” for “sharing perceptions.” Only when we have respect for “differences” without seeking a hasty agreement; and abandon the idea of using history as a tool for economic development will Park’s dream come true and sustainable peace in Northeast Asia become possible.
[ The Hankyoreh, November 20, 2013 ]
www.koreafocus.or.kr
Politics Not Everything in Korea-Japan Relations
Noh Jae-hyun Editorial Writer The JoongAng Ilbo
Last week, Sen Genshitsu, the most authoritative and celebrated master of the Japanese tea ceremony, visited Seoul. Sen served as the 15th-generation head of the Urasenke, the largest school of Japanese tea ceremony, until he passed on the reins to his son in 2002. The 90-year-old virtuoso is now revered as Daisosho, or Grand Master.
The grand tea master has received numerous honors, including a doctoral degree from Chung-Ang University in Seoul. He came into the international limelight in 1984 when he performed a tea ceremony at the Vatican for Pope John Paul II. He visited Seoul in 1998 at the invitation of President Kim Dae-jung to serve tea and have a long talk with the president at Cheong Wa Dae. Last April he conducted a tea ritual at the U.S. Capitol for members of Congress. He acts as a cherished ambassador of Japanese tradition and culture.
During his latest visit to Seoul, I had the privilege of joining a luncheon for the master. Other guests included Kim Yong-woon, a former executive of the Korea-Japan Cultural Exchange Council; former Foreign Minister Gong Ro-myung; Chung Ku-jong, director of the Japan Center, Dongseo University; and Japanese Ambassador to Korea Koro Bessho. All of them have profound knowledge and concerns about Korea-Japan relations, which are at their lowest point. However, their conversation did not touch on any contentious issues often being raised by politicians and the mass media of the two
countries.
Instead, they talked about tea and ancient histories of the two nations. Their conversation began with the massive migration of Koreans from the Baekje Kingdom to Japan around the seventh century, and moved to Japanese Emperor Akihito’s revelation in 2001 that the mother of his distant ancestor, Emperor Kammu in the eighth century, was a descendent of King Muryeong of Baekje. Their conversation also touched on an episode that Sen Rikyu (1522-1591), Mr. Sen’s ancestor and the founder of the Urasenke School, had to die for advising his patron Toyotomi Hideyoshi against his Korean invasion.
It is said that Sen Rikyu was ordered by Hideyoshi to commit a self-immolation of seppuku for reasons that, aside from his objection to the invasion, included his profiteering from the sale of expensive tea wares and his refusal to offer his daughter to the powerful daimyo. The present-day tea master stressed that his forefather deeply appreciated and loved Korean tea vessels and sincerely wished to maintain peace. Sen Rikyu’s attachment to Korea and its pottery art is well described in the history novel depicting his life, “Rikyu-ni Tazuneyo” (Ask This of Rikyu), which received the Naoki Prize.
During their Seoul visit, Mr. Sen and his group attended various social functions such as a tea ceremony wishing for harmony between Korea, Japan and China; a symposium on the East Asian tea culture; and a panel debate on East Asian culture and peace. As anticipated, these events received scant attention from the Korean mass media. At a time when relations between Korea and Japan are at the rock bottom, few would pay attention to an elderly master of Japanese tea culture. High-ranking officials (of assistant vice minister level) of the three neighboring countries ― Korea, China and Japan ― met in Seoul last week for policy coordination, but the meeting was held in an awkward and chilly atmosphere. Korea and Japan convened a high-level economic consultation in Tokyo early this week, but few expected a fruitful result from the outset of the gathering. Vice defense ministers of the two nations are set to meet today to review bilateral defense issues with a slim chance of achieving a productive outcome.
As long as Japanese Prime Minister Shinzo Abe maintains his ultra-right stance irking neighboring countries and one of his aides publicly blames Seoul for the absence of a summit between President Park Geun-hye and Abe, relations between the two countries will remain strained. Notable in this respect is President Park’s comment made during her recent trip to Europe that it would be “pointless”
to hold a summit in the absence of prospects to ameliorate mutual relations, a remark that clearly underlined the chilly state of bilateral ties.
However, in light of the thousands of years of history between the two nations, we have to question if the bilateral relationship should be dominated by political, military and diplomatic affairs alone. At a critical juncture like this, we need to calmly review the whole spectrum of affairs from broad and long perspectives.
Lying between the two countries is not only hardware but also software, or culture, which has played more important roles throughout their long history. The Korean pottery art that Sen Genshitsu’s forefather so deeply adored was simply among the extensive software knowhow and expertise handed over to Japan. In a similar context, Korea imported modern academic knowledge and scientific technologies from Japan, which had succeeded earlier in modernization, for its own development. It is a pity that a long history of such mutually beneficial relations was stained by one side’s forcible annexation and colonization of the other in the last century, a tragedy that still overshadows their ties even after the latter’s liberation nearly seven decades ago. In the Korea-Japan relationship, politics and diplomacy are not everything. There are economic and cultural exchanges in a mature stage and, what’s more, diverse grassroots contacts between the two peoples. A political bottleneck should not hamper the rich and multilayered exchanges and cooperation in other fields.
Frankly speaking, the current state of bilateral relations is so frustrating that even worse conditions would not necessarily be a bad development. Should the relations hit “the real bottom,” both parties might well be able to distinguish, among the piles of pending problems, including territorial disputes and history issues, what can be settled relatively quickly through compromise from what should wait longer.
It is not desirable for both parties to leave issues excessively swayed by politics. In a sense, the KoreaJapan relationship is in a phase of major restructuring that calls for more lasting and fundamental elements like active cultural exchanges. Summit talks? There’s no need to hurry, I think.
[ November 13, 2013 ] www.koreafocus.or.kr
- Current Account Surpluses Not Just Blessings for Korea - Reflection on Labor Productivity - Conglomerates’ Recruitment Exams - Safeguard the Fiscal Soundness - [DEBATE] Fewer Work Hours
Current Account Surpluses Not Just Blessings for Korea
Shin Min-young Head of the Economic Research Department LG Economic Research Institute
The nation’s current account surplus exceeded $9.5 billion in October, pushing the total surplus in the first 10 months of 2013 to $58.3 billion. Should the current condition be maintained until year-end, the current account surplus will be around $70 billion, or nearly equal to 6 percent of the gross domestic product. If so, it will have surpassed that of Japan for the first time.
A current account surplus is quite important for nations such as Korea, whose currency is not a reserve currency in central banks around the world. High current account deficits in the early and mid-1990s pushed Korea into a currency crisis. When the U.S. Federal Reserve indicated in May that it could taper its quantitative easing soon, volatility in global financial markets spiked upward. Major emerging economies experienced turmoil for several months amid huge current account deficits. But the problem is that current account surplus isn’t something that the nation can wholeheartedly welcome without any reservation. The surplus in the trade of goods accounts for 84 percent of Korea’s current account surplus. But the trade surplus is not in good shape.
A healthy trade surplus is produced when exports and imports are rising simultaneously. But growth in Korea’s exports is slowing while its imports are falling. During the first 10 months of 2013, exports grew year-on-year at a snail’s pace of 1.9 percent while imports fell 1 percent. In other words, Korea’s
trade surplus is a “slump type” surplus. Growth in its exports has slowed with the global recovery remaining tepid and imports have also declined amid the sluggish domestic economy.
Imports are not increasing because corporations are withholding investments and consumers are not opening their purses. A slowdown in corporate investments causes a decline in capital goods imports, pushing up a trade surplus. Capital goods as a percentage of the total imports dropped from 40 percent in 2000 to a 27-28 percent range in 2012 and 2013. Korea had huge current account surpluses when it experienced a currency crisis in 1998 and a global financial crisis in 2009. Its corporate investments plummeted on both occasions.
A downturn in domestic consumption also increases a trade surplus. Raw materials imported for the manufacturing of domestic goods account for 35 percent of the nation’s total imports. A drop in local spending thus constrains imports.
The size of a current account surplus does matter. Pressure is mounting on the Korean currency to strengthen as Korea’s surplus is expanding. Korea, together with Germany and Taiwan, is among the nations producing the biggest current account surpluses in the world. Given that Germany, as it belongs to the euro zone, cannot adjust the euro’s exchange rates by itself, Korea is one of the few countries exposed to the highest level of pressure to strengthen its currency from countries sustaining current account deficits. For example, a U.S. report on foreign exchange rates in October criticized the valuation of the Korean won.
Actually, the Korean won is strengthening against the Japanese yen, which is falling fast as a result of both the “Abenomics” and the U.S. tapering of quantitative easing. It poses a great threat to the competitiveness of Korean business enterprises and their profits. Theoretically, a strong Korean won curbs exports and encourages imports, reducing the nation’s trade surplus and helping to balance its current account. A strong won’s mechanism of readjusting the current account may not work in the way that it is desired by Korea, however. Consumption and investments may further contract as the Korean population is graying fast and the Korean economy is fragile.
As such, it is more desirable to reduce the current account surplus than to strengthen the won. The surplus will decline, easing the pressure on the won to appreciate, when investments, aimed at laying the foundation for growth, are expanded and, as a consequence, spur capital goods imports to increase.
It is also necessary for Korea to boost service industries if it wishes to pull its economy out of the low-growth mode. If investments increase in medicine, tourism, education and other services, improving their quality, it will raise the level of happiness for Korean consumers. They will also boost raw materials imports.
[ Dong-A Ilbo, December 17, 2013 ]
www.koreafocus.or.kr
Reflection on Labor Productivity
Kim Yung-bong Chair Professor of Economics Sejong University
Korea’s labor productivity per hour was $26.20 in 2012, according to the Organization for Economic Cooperation and Development (OECD). That was 67 percent of the OECD average, placing Korea 28th among the 34 OECD members. The data has several implications. First, the low ranking means that Korea’s national income is also in the bottom tier. That’s because labor productivity is calculated by dividing a country’s GDP by the total number of workers or aggregate labor hours. Accordingly, Korea ranked 23rd among OECD countries in both per capita national income and per capita labor productivity.
In 2011, Luxembourg ranked first in the OECD in both per capita labor productivity ($124,000) and per capita national income ($107,000). In 2012, Norway ranked first in labor productivity per hour ($62.70) and ranked second in per capita national income. In 2011, Korea ranked 23rd in per capita labor productivity and 29th in labor productivity per hour. That was due to the 2,090 working hours per person that year. Korean politicians have frequently called for legislation to cut the nation’s maximum working hours and increase the number of official holidays, contending that Koreans work the most hours among the OECD members. Currently, Korea’s labor productivity is only half of the average of advanced
countries. Domestic companies can hardly maintain their competitiveness and employment if shorter working hours increase the minimum hourly wage. Second, Korea’s low labor productivity is attributed to the rock-bottom productivity of the service sector. In 2010, our manufacturing sector’s per capita labor productivity stood at $97,000, the second largest in the OECD, while the corresponding figure of our service industry reached just $45,000. Korea’s service sector, which consists mainly of restaurants, lodging facilities, wholesalers, retailers and other low value-added and privately owned businesses, has remained totally backward.
The backwardness has largely been caused by excessive regulations. The Korean manufacturing sector has steadily improved its global competitiveness through open competition. In contrast, authorities have stuck to a protectionist policy for high value-added service industries such as education, finance, law and medical treatment. The agricultural sector is no exception. Like the manufacturing sector, a new ecosystem should be formed in the nation’s agricultural and service sectors. Market liberalization and free corporate activities should be permitted in those sectors, while investments and business foundation by domestic and foreign capitals should be encouraged. By doing so, our non-manufacturing sectors will also be able to achieve the highest levels of industrial competitiveness and labor productivity in the world.
Third, labor market inefficiency, which is the fundamental cause of low labor productivity, should be addressed. According to the “Economic Freedom of the World: 2013 Annual Report,” which was published jointly by the Seoul-based Center for Free Enterprise and 88 other research centers worldwide, Korea ranked 33rd in terms of economic freedom. Notably, Korea ranked 133rd in labor market flexibility.
For instance, the average annual salary of Hyundai Motor employees is said to be 100 million won, but the Hyundai workers go on strike nearly every year. Moreover, the Hyundai management cannot make independent decisions about reassigning union workers among assembly lines. Therefore, the labor hours per vehicle (HPV) for Hyundai Motor’s main domestic plant in Ulsan stands at 31.3 hours, compared with 14.6 hours for Hyundai Motor Manufacturing Alabama and 19.5 hours for Beijing Hyundai Motor. Politicians, the Korean Confederation of Trade Unions, the more militant of the nation’s two labor umbrella groups, and other organizations are all preoccupied with protecting labor unions and creating
labor-related regulations. How can we expect our labor productivity to improve under such circumstances?
Lastly, the labor productivity data creates a good opportunity for self-reflection by our politicians and general public. It offers reminders for suitable economic and welfare policies.
Korea still lingers near the bottom of OECD rankings on national income and labor productivity. Last year, Korea’s per capita national income stood at $22,590, which amounted to merely 60 percent of the OECD average of $37,488. The per capita national income of the United States, Japan and advanced European countries is more than twice that of Korea. It surely is deplorable that Koreans are demanding “OECD-level” welfare benefits simply because their country is a member of the organization.
[ Munhwa Ilbo, November 4, 2013 ]
www.koreafocus.or.kr
Conglomerates’ Recruitment Exams
Lee Chul-ho Editorial Writer The JoongAng Ilbo
Samsung Group’s recruitment exam ― the Samsung Aptitude Test (SSAT) ― is known among local job seekers as Samsung “suneung,” comparing it to Korea’s highly competitive annual college entrance exam. The employment exam administered by Hyundai Motor Group ― Hyundai Motor Group Aptitude Test (HMAT) ― is dubbed Hyundai Motor “gosi,” or the automaker’s version of the senior civil service exam.
The SSAT is given to about 180,000 job seekers annually regardless of their educational background; Samsung hires approximately 9,000 of them.
Hyundai Motor drastically reduces the number of job candidates by examining their personal histories. Candidates must pass two rounds of tests as well as an interview. Not surprisingly, local job seekers are very disgruntled. Some applicants say that they have to buy workbooks and attend special courses at private institutes, while others complain that the questions on conglomerates’ recruitment exams are too difficult.
Apparently yielding to the pressure from job seekers, Samsung has vowed to overhaul its recruitment system. The group’s exam questions are prepared by the top scorers in the previous year. In other words, its new employees are selected by those who will work with them for the longest time.
Samsung’s recruitment criteria differ depending on the social atmosphere. This year, 35 percent of its successful applicants will come from provincial universities, with another 5 percent coming from low-income households. Conglomerate chairmen’s intentions are also reflected in employment entrance exams. After Hyundai Motor Chairman Chung Mong-koo stressed the importance of historical perspectives, the automaker asked its job candidates to write about the historical figure they respect the most in its latest recruitment exam. In a unique Korean practice, the two conglomerates also offer bonus points to the children of their long-serving executives and staff members.
Nevertheless, this writer is in favor of the current recruitment exam system of domestic conglomerates. The corporate entrance exam is in line with the Korean people’s latent yearning for “equality of opportunities” and “reversal of fortune.” Such a yearning is deeply rooted in Korean society. Of course, the complaints by job seekers can be somewhat understood. But let’s compare our system to that of the United States.
Corporate efficiency is the top consideration in the U.S. recruitment system. A look at “workingUS.com,” the website of Korean students staying in the United States, seems to indicate that the American job market is in deep doldrums. Nearly half of recent graduates of the prestigious Princeton University remain unemployed. The employment situation is good in technology but the job market is virtually frozen for graduates of liberal arts. The number of applicants for law schools has been reduced by half.
The hiring process of U.S. companies is simple. They believe that the best time for firing employees is before hiring new employees. Google and Apple select only 2 to 5 percent of their job candidates through document screening before conducting a phone interview, which screens out four out of five applicants. Those who pass go through two to six rounds of on-site interviews, in which they are usually grilled by their potential superiors and colleagues for three to four hours. Some people say that American employers don’t take job candidates’ personal connections and credentials into consideration. But that’s not true. Job candidates recommended by current employees can often skip the whole process and reach the final interview stage. In some cases, more than half of new job openings are filled without employment notices. That’s why U.S. college students are struggling to widen their personal connections and secure internships.
Job interviews at American companies are nerve-wrecking. Microsoft interviewers are known for storming out of the room when their interviewees fall short of expectations. They seem to believe that stopping interviews helps both sides save time and money. In addition, U.S. enterprises generally prefer experienced workers to new college graduates. They believe that the former are less risky and more profitable. General Electric requires 90 percent of its job openings be filled with people who have worked for more than five years.
Korean job seekers may react negatively to the U.S. hiring practices, saying that candidates are treated inhumanely and large conglomerates steal high-quality human resources from smaller companies. Of course, it is questionable how long Samsung Group and Hyundai Motor can maintain their current recruitment system. Evolution is inevitable for the sake of survival. Harvard University professor Tony Wagner said, “What you know matters far less than what you can do with what you know.” If Korean job seekers fail to catch up with the new global trends, they may lose jobs at Samsung Group and Hyundai Motor to their competitors from China and India. New York Times columnist Thomas Friedman said that the time for “searching for a job” has passed and the young people will have to “invent a job.” It is time for our job seekers to change their attitude. It is hoped that the long lines of applicants for SSAT and HMAT will vanish as soon as possible.
[ November 4, 2013 ]
www.koreafocus.or.kr
Safeguard the Fiscal Soundness
Kang Bong-kyun Advisor, JB Bank Former Minister of Economy and Finance
The Korean economy has expanded by less than 3 percent annually over the past six years, suggesting that it has fallen in a low-growth trap. Jobs are scarce for young people, tax revenues have remained stagnant and the national debt has jumped. But that did not stop presidential candidates last year from promising universal welfare benefits.
After winning the election, President Park Geun-hye finalized a list of welfare pledges but has struggled to raise the necessary funds without raising taxes, hurting her image as a politician who fulfills promises. Economic conditions have not improved and failed to provide enough tax revenue or to give a clear outlook on future tax collections.
The government eventually allocated 17.3 trillion won (US$16.42 billion) in supplementary budget this year for welfare. In addition, the government’s 2014 budget bill submitted to the National Assembly calls for increasing national debt by 35 trillion won. Nevertheless, the opposition parties have increased pressure on the Park administration to fully implement the president’s election promises and repeatedly urged higher taxes on the wealthy. Let’s look at economic situations around the world. Fiscal soundness is a serious problem in the United States. Japan’s government debt as a percentage of its gross domestic product reaches 250
percent, one of the world’s highest levels. The heavy public debt deters the nation’s effort to escape from a low-growth trap. In Europe, efforts are still underway to overcome debt crises. That’s because it is difficult to scale down welfare benefits, while it’s much more difficult to raise taxes.
Political populism is undermining fiscal prudence being sought in advanced economies. They have shifted to systemic approaches by strengthening their fiscal rules. The same should be done in Korea to overcome low growth and to reduce the risk of widening the government’s deficit due to higher welfare spending.
First, the government should systematically seek to achieve a balanced budget every year. If the nation’s economic expansion falls below its potential growth rate, the government should make investments amounting to less than 3 percent of the gross domestic product. That would be similar to what Britain and Eurozone countries are doing.
Second, the National Assembly should set the ceiling for national debt during a presidential term and achieve the goal without fail. The parliament should require the president to minimize deficit spending that is done to stimulate the economy. The system will be similar to the U.S. federal debt ceiling. At present, a new Korean administration presents its five-year fiscal plan to the National Assembly. Parliamentary deliberation and approval of the plan will improve the system.
Third, the government should introduce the principle of PAYGO (pay-as-you-go), which refers to spending currently available funds rather than borrowing against future income. Additional tax revenues should be secured in proportion to additional expenditures.
Fourth, the debt ceiling of all social insurance programs and public funds, including the National Pension Fund, National Health Insurance and Unemployment Insurance, which are managed separately from government budget, should be subject to parliamentary approval. All factors of future growth in national debt should be regulated by the National Assembly in advance.
Fifth, the National Assembly should set a debt ceiling for public enterprises and conduct relevant oversight. It is now evident that many state-run companies were ineffectively managed during the Lee Myung-bak administration and drove up the national debt.
If the National Assembly finalizes these rules by the end of June 2014, the Park administration will have clear coordinates for sound fiscal management, including the budget for 2015, the third year of
its term. The administration and the parliament will be able to compile and screen the annual budget bill in a broader framework, while the public will be able to alleviate its concern and uneasiness about more welfare populism in the coming election years.
Korea is a small open economy that can be directly affected by any crisis in the global economy. We painfully realized this during the 1997 Asian currency crisis and the 2008 global financial crisis. Korea was able to overcome the two crises due to its fiscal soundness. It can be said that fiscal soundness is one of the Korean economy’s main pillars, along with economic growth and welfare expansion.
[ Korea Economic Daily, November 20, 2013 ]
www.koreafocus.or.kr
[DEBATE] Fewer Work Hours
[PRO] Ahn Jo-yup Senior Research Fellow Korea Labor Institute
[CON] Kim Dong-one Dean, Graduate School of Labor Studies Professor, Business School Korea University
Koreans work the most hours among the members of the Organization for Economic Cooperation and Development (OECD). The ruling and opposition parties are pushing to revise the Labor Standards Act to reduce the statutory workweek to 52 hours from the current 68 hours. This would be done by reclassifying holiday work as overtime. The pace of reducing work hours and the positive and negative consequences are among the key concerns of industrial circles and labor advocates. [PRO] Let’s Promote Work-Life Balance
The Labor Standards Act limits the maximum weekly working hours to 52 hours, which include the 40-hour statutory workweek and the 12-hour overtime. But chronic holiday work, which is excluded from overtime provisions, adds more hours, upsetting work-life balance. Under its labor policy vision, dubbed the “70 Percent Employment Roadmap,” the Park Geun-hye
government has included the reform of working hours and methods among its four major policy objectives. To that end, the government is pushing to reduce long working hours, generate and expand quality part-time jobs, and introduce flexible working hours.
As part of an effort to address the long work hours, the government aims to cut the annual working hours from the current 2,116 hours to less than 1,900 hours by gradually reducing excessive overtime and holiday work. The policy objectives, if accomplished, will switch Korea from a workaholic society, where all workers work 40.1 hours every week of the year, to a society of work-life balance, where all workers work 40 hours per week and enjoy four to five weeks of vacation and holidays.
One of the concrete measures to achieve work-life balance is to incorporate holiday work into overtime limits and establish the basic principle of limiting the maximum weekly working hours to 52. In a bid to minimize burdens on industrial sites, however, the authorities may consider a gradual reduction of work hours and allow exceptions to the overtime limits. Nevertheless, such exceptions should be temporary and subject to sunset regulation to protect the basic principles of the revision.
According to a survey by the Ministry of Employment and Labor last year, 13 percent of local employees work more than 52 hours per week, with another 5 percent topping 60 hours. The poll also found that 72 percent of workers who work on holidays belong to the manufacturing industry, while 69 percent of workers who work long hours without sufficient compensation for holiday work, belong to the service sector.
If holiday work is incorporated into overtime and the number of overtime hours is limited to 12 hours per week, the weekly working hours of about 620,000 employees, including those in the major manufacturing businesses, would fall by 15 percent to 52 hours from the current 61 hours.
The inclusion of holiday work into overtime is expected to produce similar effects regardless of company size. But the actual effects will differ widely, depending on the way it is implemented. As seen in the case of Hyundai Motor, financially healthy conglomerates will be able to maintain output without cutting wages in return for shorter working hours by increasing facility investments and labor productivity.
In contrast, small and medium-sized enterprises (SMEs) that struggle with capital and labor shortages may have to lower wages of current employees and may encounter difficulties in hiring new employees. As a result, SMEs will suffer from rising costs and be forced to raise their supply prices.
The best way to solve these problems is to encourage reasonable business relations between large and small companies, and improvement of productivity of subcontractors through active technology support. Such efforts will help promote sound ecology in the manufacturing sector by getting rid of its backward practices, including unilateral price cuts.
The five-day workweek has been gradually introduced in the nation over the past decade, while the share of part-time jobs has increased in the job market. Thus, the average working hours fell from 50 hours per week in 2002 to 44.5 hours in 2012. The number of working hours will continue to decline in the future. It is time to end the vicious cycle of excessive work, low labor productivity and low wages, and create a culture of work-life balance.
[CON] Bargaining Should Come First
Long working hours in Korea cause many side effects, such as heavy stress, overwork and other health problems. But any hasty move to reduce the nation’s maximum working hours, if implemented without sufficient preparations, would likely trigger a flood of labor-management disputes over wage compensation.
The proposed reduction in working hours should be pushed in parallel with social consensus on productivity bargaining between labor and management. Korea, together with Mexico, has the longest working hours among OECD members. As of 2012, Koreans worked 2,092 hours annually, compared with the OECD average of 1,776 hours. People in the Netherlands, Norway and Germany worked less than 1,500 hours a year.
Harmful effects from long working hours have been well known for a long time. Excessive work increases stress, causes health problems, destroys the work-life balance and produces other negative side effects. Overwork is said to even bring down the nation’s marriage and birth rates, as newly employed young people can hardly find time to indulge in regular dating.
Notably, inefficiency is widespread, as long as junior workers remain at work under pressure from their superiors despite not having anything left to do. Such inefficiency lowers the per hour labor productivity and undermines corporate competitiveness. Still, if fewer work hours are implemented without sufficient preparations, it could spark serious labor-management disputes at a large number of workplaces.
In the past, the Economic and Social Development Commission, formerly named the Korea Tripartite Commission, agreed in principle to reduce the maximum working hours but failed to make actual progress due to differences over how to compensate for pay cuts when working hours are lowered. Employers say that personnel expenses should be reduced in proportion to cuts in working hours. But labor wants employers to absorb lost output, saying that workers cannot make ends meet if their salaries are cut. Both sides are fiercely at odds.
The best way to meet the interests of both management and labor is to improve productivity. In other words, labor and management should cooperate to upgrade the unit productivity of products and services. The reduction of working hours should be pushed in parallel with management-labor bargaining over productivity levels in order to make sure that the regulatory revision is smoothly accommodated by all workplaces.
In addition, corporate financial capabilities should be taken into consideration, if both the reduction of working hours and the compensation for pay cuts are to be achieved. Accordingly, a phased introduction of shorter working hours should be considered, depending on corporate size. In other words, large conglomerates should first slash work hours and SMEs should gradually follow suit.
[ Seoul Economic Daily, November 15, 2013 ]
www.koreafocus.or.kr
- Solution for Fine Dust: Turn Crisis into Opportunity - [DEBATE] Bill on Addiction to Online Games - Koreans Who Left for Germany 50 Years Ago - Permit Marriage between ‘Some Man’ and ‘Some Woman’ - ‘Silent Screams’ over Twilight Childcare
Solution for Fine Dust: Turn Crisis into Opportunity
Jeon Eui-chan Dean of the Graduate School Professor, Department of Environment and Energy, Sejong University; President, Korean Society of Climate Change Research
At last, the issue of fine dust is looming high over the political arena. As a matter of fact, the issue is nothing new. “Special Measures against Air Pollution in Metropolitan Areas,” which took effect in 2005, are focusing on fine dust. To reduce its amount, the government also introduced such systems as the Total Air-Pollutant Load Management System and the Tradable Pollution Permits Scheme. In Seoul, all intra-city buses, which number over 7,000, have been replaced by natural gas vehicles and tens of thousands of diesel cars have been installed with pollution reduction devices.
Thanks to these efforts, Seoul could see its fine dust, which had been 70 to 80 micrograms per cubic meter in the mid-1990s, cut to 41 micrograms per cubic meter as of 2012. With the quality of air showing signs of improving slightly, some people made a fuss about it as if they could watch the Milky Way while others hastily concluded that they had air as clean as that on Jeju Island.
The fine dust level in Seoul is still two to three times higher than that in Tokyo or New York. Despite that, the issue of air pollution hasn’t attracted enough public attention until recently and related budgets often have been cut in half. As if sounding the alarm for such a practice, hazy smog covered the sky of Seoul recently and fine dust was mainly blamed.
There was also a report warning that fine dust could harm fetuses and cause premature births. When fine dust enters the blood circulation system, it can increase the risk of getting lung cancer, the report said. Such damage is possible only after an exposure to high concentrations of fine dust for a prolonged period of time. Fortunately, the current level is not that high. At this juncture, the government needs to offer an exact explanation about the situation, based on objective and scientific data.
Recently, the presidential office announced a comprehensive set of measures to tackle the problem, which include closer cooperation between Korea, China and Japan, and an early implementation of fine dust warning system. Overall, they are properly targeted. Since the issue of fine dust is nothing new, the solution should also be more fundamental. Taking this momentum, we should first determine exactly how much fine dust blows in from China. Then, no efforts should be spared to support the research on (fine dust’s) long-distance transportation, jointly conducted by Korea, China and Japan, so that the research project could come up with a feasible answer.
For China, greatly suffering from an extremely high density of fine dust, we should offer help to control the generation of fine dust by using our experience and advanced technology. There is a saying which goes, “When things are tough, go back to the beginning.” On this occasion, we should ask ourselves some basic questions: Is related research and information enough? Is the system and administration to manage fine dust efficient? Is there any more system or measure needed to solve the problem? The latest smog in Seoul, which occurred ahead of the inauguration of the “National Air Pollution Control Center” and the implementation of the second “Special Measures against Air Pollution in Metropolitan Areas” scheduled for 2015, is a heaven-sent opportunity. A crisis can also be an opportunity. Let’s try to export our advanced technology of reducing the generation of air pollutants to China and thus improve the quality of our air, too. We already possess world-class technology for nonstop monitoring of urban air pollution and a system for measuring and managing the amount of air pollutants from chimneys across the country.
China undoubtedly prefers a joint investment and is reluctant about opening up its market, but if we could export more of our eco-technology to China, we would be able to help expedite solution to China’s air pollution and also minimize its impact on Korea. The diesel particulate filter device, power plant desulfurization equipment and the volatile organic compound control system for painting equipment are some of the outstanding eco-technologies that we can export at any time.
I wish that we will also be able to develop the energy efficiency technology that can decrease the quantity of air pollutants and greenhouse gases at the same time, the greenhouse gas reduction technology and the technology for energy recovery from waste, creating opportunities to enter China’s gigantic market. By responding to the issue of fine dust aggressively, the government should also enhance the people’s right to a clean and healthy environment and happiness.
[ JoongAng Ilbo, December 17, 2013 ]
www.koreafocus.or.kr
[DEBATE] Bill on Addiction to Online Games
[PRO] Ki Seon-wan Clinical Professor Department of Psychiatry, Incheon St. Mary’s Hospital Catholic University of Korea
[CON] Lyou Chul-gyun Professor and Director Digital Storytelling R&D Center Ewha Woman’s University
The disagreement over a bill that would address addiction to online games is intensifying. The gist of the legislation initiated by Rep. Shin Eui-jin of the ruling Saenuri Party is to treat game addiction the same as alcohol abuse, drug use and gambling. Some argue that the bill is needed to protect the well-being of juveniles, while others claim it ignores the fact that online games are part of the modern culture.
[PRO] Addiction to Online Gaming Requires Systematic Control and Treatment
The bill on the prevention, control and treatment of addiction is basically aimed at fighting various types of addiction. It is not a bill designed to regulate the online game industry, as some may claim.
It is true that the bill contains some clauses that could restrict access to online games to prevent addiction. But it is still possible to regulate the production and distribution of games by enforcing existing laws, including control over the promotion of the online game industry.
But regulations or punishment alone cannot solve the problem concerning addiction. The nation needs a comprehensive system for treatment and rehabilitation, based on a public health and welfare model that transcends conventional regulations and control. The proposed bill serves that purpose.
In advanced nations, considerable funding, manpower and resources are allocated to combat harmful addictions. But professional manpower and facilities are insufficient in Korea. Worse still, resources and regulations are spread among various administrative offices, and measures to be taken to deal with addiction are limited to administrative regulations. The central government needs to coordinate its agencies to form a comprehensive structure to attend to addiction-related issues.
Addiction to gaming is covered by the bill because it can generate similar behavior that is found among addicted gamblers. Addiction to gambling is not a term referring to a passion for games or an immersion into them. It refers to a neurological change in behavior. Addiction worsens if one is made to have high expectations for a reward whose acquisition has a low probability.
As is the case with substance abusers, gaming addicts cannot voluntarily stop playing games. They experience irresistible cravings for it and exhibit withdrawal symptoms if they cannot play. Their social skills also deteriorate.
Consider a wine expert and an alcoholic. Both have alcohol on hand constantly. But the former drinks for pleasure while the latter drinks compulsively and needs professional treatment. An addict experiences a change in his brain function, be it a result from his biological susceptibility or a sociocultural trigger. Once he is afflicted with such a change, he can hardly stop his addiction by himself.
The bill is not aimed at limiting the rights of the majority of people who play for pleasure. Regulating individual freedom of choice is not its purpose. It is designed to assist addicts and to ease the pain and burden of their families. It is misleading to claim the law is placing gaming and harmful drugs in the same category. Addiction to gaming is included in the bill because it has neurochemical and clinical symptoms similar to those seen among drug addicts. Moreover, similar psychosocial treatment techniques are used for both of them.
Korea is at the forefront of the information and technology industry and the online game industry. It needs to take preemptive action against harm that may accompany new technologies. Games that do not lead to clinical addiction would be precluded from the bill’s regulations. Addiction to drinking
and gambling causes astronomical social and economic costs. Prevention and treatment are needed to ensure the mental health of the future generations.
Addiction can pose serious health and social problems for Korean society as it has in advanced nations. Korea needs to enact a basic law that goes beyond regulation to include prevention, treatment, rehabilitation and management of addiction.
[CON] Games Not as Addictive as Alcohol or Drug
Sweden has an online game player who goes by the name of Kungen. He is worshiped by 13.4 million “World of Warcraft� gamers from all over the world. He led his group in a raid against one dungeon after another and was the world’s first player to complete 22 missions.
Whenever a new patch or version of the game is introduced, he launches an online crusade, drawing 4 million people around the world to watch him play. In real life, he works at the fast food chain Burger King and was promoted to branch manager after being selected Employee of the Month for 17 consecutive months.
Those who are not familiar with online games such as World of Warcraft may think Kungen is an addict, who is so obsessed with playing that he cannot possibly lead a normal social life and thus should be subject to regulations.
There are 50,000 addicts of online games who require treatment, according to a report from the National Assembly. They represent a mere 0.25 percent of the 20 million gamers in Korea. The others, 99.75 percent of the total, go on with their ordinary lives, as Kungen does.
With a revolution proceeding in the age of digital information, online games have turned into a crucial and influential cultural mode of expression. Seven billion people in the world nowadays communicate and play with each other on the Internet.
Online games have incorporated and applied the expressive forms and styles of novels, plays, movies, documentaries and musicals. Their aesthetic taste has now reached a poetic level. They now do not merely inspire and stir the brain. They also gratify emotions and aesthetic appetites.
The recently proposed bill places online gaming on par with gambling and drinking, and is aimed at
establishing a state-run agency to control this addiction. The bill is problematic for four reasons.
First, the bill trespasses on the principle of equality that requires a comparison in similarities of qualities and features. Gaming is different from alcohol, drug and gambling that have anti-social and criminal associations. Second, the bill violates the principle of clarity demanded of specific targets. In targeting “Internet games and other media contents,� the bill defines all cultural domains as potentially addictive and dangerous.
Third, the bill does not uphold the principle of proportionality, or excess prohibition, which requires an objective causal relationship between gaming and its alleged harm. There is no objective proof that gaming causes addiction or has addictive potential. The U.S. Supreme Court in June 2011 upheld a federal appeals court decision to throw out California’s ban on the sale or rental of violent video games to minors.
Fourth, the bill duplicates regulations. Those addicts who require psychiatric treatment urgently, or 0.25 percent of the total number of gamers, can be dealt with under the youth protection law and the law on the prevention of excessive indulgence in games. Social problems brought about by the mass media cannot be solved through legal means. We have seen numerous laws aimed to contain and ban violence and sensationalism on television being thrown out.
These problems can be best addressed through a better understanding of social and mass media, and through a parent-child dialogue, in addition to other communicative efforts. I would like to call on the advocates of the bill to exercise sensible judgment on the fledging cultural media.
(Professor Lyou Chul-gyun is also a novelist who goes by the name of Lee In-hwa.)
[ JoongAng Ilbo, November 16, 2013 ]
www.koreafocus.or.kr
Koreans Who Left for Germany 50 Years Ago
Kwon Soon-hwal Editorial Writer The Dong-A Ilbo
On December 21, 1963, 123 Koreans left Gimpo Airport. They were the first batch of Korean miners sent to the then West Germany. On the same flight were Lee Chang-je, an official from the Economic Planning Board, whose mission was to safely escort the miners to Germany, and Roh Sang-woo, a Dong-A Ilbo correspondent.
These days, a Korean euphemism, roughly translated into mine staffers, or gwangwon, are frequently used for them. But gwangbu, the conventional Korean word for mine workers, should better evoke the emotion that prevailed at the time.
By 1977, 7,900 miners and 11,100 nurses had been sent to Germany, a country they had known little about. They included graduates and dropouts of prestigious Korean universities. It still pangs us to hear that they even smeared their hands with coal to pass as coal miners in order to earn money abroad.
At the time, Korea was a country whose per capita income was at the bottom among 120 or so countries. College graduates, though high in status, could not land jobs, as there were few corporations hiring them. Being born in a poor country forced those with a high level of education to volunteer to work in 1,000-meter-deep coal pits and clean corpses at hospitals in a faraway country.
No matter how much talent or education they had, people couldn’t be treated properly. It is the same these days.
The miners and nurses were the first large groups of Koreans who went abroad to make money after the nation was liberated from Japanese colonial rule in 1945. Their remittances were to the Korean economy what a shower was to the scorched land during a drought. An association of former miners dispatched to Germany said in their white paper, published in 2009, that they were the first that took the “shovelful of foreign exchange.”
Then they were followed by soldiers who fought in the Vietnam War and workers who toiled in the Middle East; their remittances also made great contributions to promoting economic development in the nation. Korea’s per capita income, which hovered around $80 in the early 1960s, surpassed the $1,000 mark in 1978. Annual exports that had remained below $100 million broke through the $10 billion level in 1977, the final year when labor was dispatched to Germany.
Based on the achievements made in the 1960s and 1970s, Korea is now on the threshold of joining the ranks of advanced nations. Except for such small states as Singapore, Korea is virtually the first nation to attain such economic success since gaining independence at the end of World War II.
Korea has indeed experienced political ups and downs. But viewed from a long historical perspective, what the nation has achieved during the past half century is nearly unprecedented, a record it can surely be proud of. Those Koreans who worked in Germany, Vietnam and the Middle East when Korea went through industrialization are now in their 50s, 60s and 70s. Those who have lived through the nation’s modern history, starting from a least-developed economy to developing and developed stages, think deeply about the nation as well as themselves.
They did help the nation achieve the goal of industrialization and democratization and prevent it from regressing to leftism. Even those who are belittling Korea’s achievements will find it difficult to deny their contributions. I would like to call those in their 50s or older “a great generation.”
Next month marks the 50th anniversary of the first dispatch of Korean miners to Germany. On this occasion, the succeeding generations are urged to reflect on the blood, sweat and tears these people have shed during the past half century to stop poverty from being handed over to them. On the anniversary, either President Park Geun-hye or Prime Minister Chung Hong-won will do well to evaluate the day’s historical significance and appreciate their contribution.
Times have changed. Yet, I believe the kind of determination that our people, government and corporations demonstrated at the time to pull the nation out of poverty is still useful in pulling itself out of the current low-growth trap while toeing the threshold to an advanced nation.
[ November 16, 2013 ]
www.koreafocus.or.kr
Permit Marriage between ‘Some Man’ and ‘Some Woman’
Jung Ji-eun Arts Education Team Manager Incheon Foundation for Arts and Culture
Grass-eating man (choshik-nam), wizard (mabeopsa), man incapable of love (yeonmot-nam)/woman incapable of love (yeonmot-nyeo), dried seafood girl (geoneomul-nyeo)… these are popular slangs in Korea these days, all referring to young men and women who can’t find dates. Taking a look around, one can easily find out that Casanova has long gone. “As people around you go on a date one by one, you may think that someday you will get one, too. But no, you will not,” goes a story from the radio, gaining broad sympathy. As more and more young men and women conclude that they will not be able to find a date by themselves after all, some are even turning to private tutoring. Private institutes teaching about romance are sprouting up and specialists dubbed as “pickup artists” are also emerging with a promise of helping to produce “masters” in courtship.
With reality TV shows to help singles find dates gaining popularity, tourism companies are offering package bus tours to arrange blind dates between men and women. On college campuses, special lectures on romance and marriage are attracting large audiences. On TV, an episode about two young men who can’t find dates in the popular comedy show, “Gag Concert,” was a runaway hit. And in publishing, a novel titled “Marriage License,” depicting a futuristic scenario about people required to obtain licenses to get married after completing a 384-hour course at marriage schools, attracted
readers. In Korea, where “remaining single” itself makes a topic for counseling, romance is emerging as a kind of essential credential of individuals when they reach a certain age. They say these days that one needs eight major qualifications to get a job: a good education, good academic grades, high TOEIC scores, overseas language training, certificates, volunteer experience, internship and awards. But, with the way things are going now, I am worried that one needs yet another qualification ― “at least three romantic relationships, each of which lasted for more than a year.” Now, we need other people’s judgment and interpretation even for our romance, which is basically a very private matter. “Some man” (some-nam)” and “some woman” (some-nyeo), frequently used these days, are words newly coined to describe a person with whom one keeps in contact with favorable impression but has yet to begin dating. Through this process of finding “something worthwhile” about a person, one decides whether to start a romantic relationship. For those who don’t have enough money and time, confidence is needed about whether they could get something worthwhile in return. So, pushing and pulling (delicate psychological warfare waged between man and woman) and managing what they call a fishing ground (staying in touch with many persons of the opposite sex at the same time as if you intend to date them) are considered essential steps to prevent rash action.
Since they have to weigh each other, even small actions can be objects for interpretation, and whenever this happens, masters of romance are called upon. “I am sending this text message not because I have nothing else to do or that I am bored to death. I am subtly displaying my intention that I am doing this because I’ve been thinking about you. I am sending my refreshing smile to you, as you may be weary.” This is a quote from a novel, but lovers these days seem to attach a particular meaning even to a small and simple emoticon (^^) and present all kinds of interpretations and explanations.
Taking a brief moment before sending a reply is considered a basic technique, because if you send a reply right away whenever you get a text message, you could be viewed as an easy touch. Such being the case, the best confession any man and woman can make to their partner these days is, “If you have time, please like me.” Fortunately (?), this is not a problem limited to Korea. In Japan, the government has introduced the “Marriage Supporter” system to cope with the latest trend of avoiding marriage among young people.
In Korea, according to a survey conducted by the Ministry of Health and Welfare, the majority of young people, both male and female, pointed out employment instability and a lack of money as top reasons for avoiding marriage. Especially, 40.4 percent of single men responded that they have not married because of economic problems. Now, marriage is not an issue only for single men in rural areas but also for single men with non-regular jobs. A single man confesses, “I feel daunted all the time. So, even when I meet a good woman, I ask myself ‘How could a person like me dare…?’ and I just give up. Now I feel as if my few remaining cells for romance are all dead.”
I can say for sure that love is no longer for everyone. Definitely, this is not the era when anyone can eventually own a house after starting a married life in a single room. So, getting married itself could be a reckless act of jumping into a totally unknown and unstable future, instead of taking the first step toward a better future. Yet, Korean society doesn’t care at all about these circumstances and is busy meddling in young people’s lives by saying, “Now, you’ve reached the age to get married.” If you really want to encourage young people to get married, why don’t you display your outstanding ability of butting in to ease their concerns about securing a stable job and a home to live in, above all else? Then, “some man” and “some woman” will become brave enough to upgrade their relationship into a romantic one, love each other as much as they want and finally get married to happily live together.
[ Dong-A Ilbo, November 5, 2013 ]
www.koreafocus.or.kr
‘Silent Screams’ over Twilight Childcare
Park Yong-joo President Korea Labor Force Development Institute for the Aged
The person who brought up the genius artist and scientist Leonardo da Vinci was none other than his grandmother. Born out of wedlock, young Leonardo was ostracized by his peers and suffered from social phobia and depression. He gradually gave up on everything beforehand and became extremely passive. To his neighbors, he was “a dumb kid who is strange and careless.”
How could such a boy come to display genius in diverse fields and leave his huge mark in history? It was the “boundless love and trust” of his grandmother who helped him overcome the shoddy treatment he received and stand on his own feet. His grandmother used to whisper to him, “You can do anything.” Until the day she died, she didn’t skip even a single day to give her grandson this “word of trust.” Her education nurtured a great man, clearly demonstrating the strength of “alternategeneration education.” Alternate-generation education characterized the role of traditional Korean families in children’s education: grandparents shared their rich experience and wisdom with their grandchildren. They were less anxious about the children’s outcomes than their parents and led them to the right direction with unconditional encouragement. In fact, according to a research by North Carolina State University, children who are in intimate terms with their grandparents do well at school and show high degrees of achievement in society when they have grown up. This is the power of alternate-generation
education. Statistics say that 5.1 million Korean households are double-income families. That has led to “twilight childcare,” where grandparents raise children on behalf of their parents who are busy working for a living.
According to the data of the Ministry of Health and Welfare, about half of Korean double-income families are leaving their children to the care of grandparents. As a result, TV entertainment programs deal with the theme of grandparents’ childcare and books on childcare top the bestseller lists for people aged 60 and over. These examples demonstrate that twilight childcare is not the story of a few specific families but a widespread trend. The problem is that these grandparents didn’t volunteer to take the responsibility. Twilight childcare is one of the most practical alternatives for parents, given the lack of childcare facilities. How many grandparents, knowing the situation very well, can refuse? They realize there is no other realistic choice, but they still feel a tremendous amount of pressure about taking over the responsibility.
At a crossroads between retirement leisure and twilight childcare, people in their 60s and 70s let out a “silent scream of pain.” Finally, relieved of raising their own children, they have to take over their grandchildren. These cases account for about 50 percent of all double-income families in Korea. The “unavoidable twilight childcare” often deteriorates the quality of elderly people’s retirement. According to a survey by the Korean Women’s Development Institute in 2012, these grandparents spend an average of nearly nine hours a day taking care of their grandchildren.
Childcare is strenuous even for young people. Then, how hard would it be for the seniors whose physical strength is slipping day by day? Since they are engaged in childcare for long hours, they increasingly suffer from various illnesses such as slipped disc, sleep disorder and depression. On top of stress from childcare, they are getting heartaches due to conflicts with their children over different parenting styles.
We can no longer turn a blind eye to this increasingly dominant situation that forces so many elderly people to tacitly put off their own happiness for twilight childcare. At work, I meet many elderly people who are preparing for their retirement. At times, I feel deeply moved by their relentless passion for life. Some express strong desires for volunteer service activities while others pick up studies to
realize the unfulfilled dreams of their youth. They are all making the best possible choices for their happiness in later days.
It is time that social consideration and attention are desperately needed to address this issue, so that twilight childcare can be one of the options that seniors can willingly take to make their lives happier and more worthwhile.
[ Hankook Ilbo, November 20, 2013 ]
www.koreafocus.or.kr
- UNESCO’s Bankruptcy Crisis and Korea’s Role - Making Kimchi and Sharing Love - The National Museum of Modern and Contemporary Art in Seoul - Cheers to Speed Skater Lee Sang-hwa - Webtoons: A Driving Force behind Creative Economy
UNESCO’s Bankruptcy Crisis and Korea’s Role
Jeon Seung-hoon Paris Correspondent The Dong-A Ilbo
In the lobby of the UNESCO headquarters in Paris, a copy of the fourth-grade textbook “Nature,” donated by U.N. Secretary-General Ban Ki-moon, is on display. A special remark is imprinted in the back cover of this book, which on its front cover has a picture of two children staring at the stars through a telescope: “This book has been printed at an exclusive printing shop of the National Textbook Corporation, which was newly set up with a printing machine donated by the UNESCO and the United Nations Korean Reconstruction Agency (UNKRA).”
After the Republic of Korea was established in 1948, it tried to join the United Nations. The attempt, however, was blocked by the Soviet Union, a permanent member of the U.N. Security Council. On June 14, 1950, UNESCO became the first U.N. organization to admit Korea. But the joy was shortlived. Eleven days later, the Korean War broke out.
On September 16, 1954, the dedication ceremony of the printing shop of Mungyo Bookstore (the predecessor of the National Textbook Corp.) took place in Daebang-dong, Dongjak-gu, and Seoul. At a time when Koreans were barely managing to maintain their livelihoods, UNESCO provided printing facilities and paper to print 30,000 textbooks annually. Six decades later when a boy who had studied with those textbooks became the United Nations Secretary General and visited UNESCO, its staff members were also deeply moved.
Now this U.N. agency faces a bankruptcy crisis. A tense atmosphere is shrouding the 37th session of the UNESCO General Conference, being held at the Paris headquarters until November 20. The financial crisis was touched off after UNESCO admitted Palestine as a member in October 2010. The United States, a close ally of Israel, withdrew its annual contribution estimated at $80 million on the grounds of its law that denies funding for any U.N. agency that accepts Palestine as a member. The United States’ contribution had covered nearly a quarter of UNESCO’s overall annual budget. The agency’s shortfall for next year’s budget is estimated at $146 million. The number of the headquarter staff members which reached around 2,000 has been reduced to about 1,700. Currently applications are received for early retirement to lay off 285 more employees. Some conferences required for the World Heritage Convention have not been held due to lack of funds. The United States and Israel have lost their right to vote at this year’s session of the General Conference because they failed to pay their membership fees for more than two years. Several programs, including the Holocaust education which was supported by the United States, construction assistance for Iraq’s water facilities, development of a tsunami warning system and education on nonviolent conflict resolution in Africa, were suspended. Even within the United States, some lament that their country, despite its proclaimed “smart power” policy, has been reduced to a paper tiger at the UNESCO, which oversees education, culture, science and communication. The legislation, which was aimed at discouraging Palestine from gaining recognition in the international community, is dragging down the United States.
A brisk competition is under way to take over the void left by the superpower. China, a member of the G2, has come forward. China’s vice education minister was elected the president of the General Conference (with a two-year term) for the first time at the latest session. China has offered tens of millions of dollars for such programs as teacher training for Africa, apart from its regular contributions. BRIC countries such as Russia, Brazil and India are also expanding influence by hosting various meetings and providing special funding. The Korean National Commission for UNESCO will mark its 60th anniversary next year. UNESCO’s current crisis offers Korea another opportunity to contribute to the global community. Korea’s aid is seen from a different perspective among underdeveloped countries. It is because, beyond money, Korea gives them the confidence that they also can “stand on their own feet.” The experience and
knowhow that Koreans achieved by reading books in a war-scarred country is not something that anybody can give.
[ November 11, 2013 ]
www.koreafocus.or.kr
Making Kimchi and Sharing Love
Kim Soon-ja Kimchi Association of Korea
Not long ago, trucks full of cabbages used to drive into cities and piles of cabbages were stacked at the entrance to alleys in residential areas around this time of the year. When preparing kimchi, the spicy pickled vegetable dish, neighboring housewives used to sit around to stuff pickled cabbages with prepared condiments. Men put the freshly made kimchi into pottery jars, sealed them tightly, wrapped them with straw and buried them in the yard.
Eating kimchi reminds me of these scenes and I am grateful for the hard work my mother did. As the economy has grown, however, many Koreans eat bread instead of rice and accordingly, side dishes have changed, too. Moreover, as an increasing number of housewives have come to be engaged in various activities outside their homes, many households tend to skip the burdensome chore of making kimchi.
As life becomes ever busier, a simple diet is preferred. It is deplorable that such a trend reduces the opportunities for the whole family to sit around to enjoy a meal together. It still is undeniable that kimchi benefits our body more than any other food. Recently, the slow food movement has gained momentum amid a growing preference for natural food and the rising awareness about the harmful effects of processed foods. Cumbersome and inefficient as it may be, kimchi is a perfect healthy food choice in terms of restoring the roots of our time-honored dietary tradition.
Kimchi making is an invaluable cultural legacy that we should hand down to future generations. In this regard, it is exciting news that kimjang, the time-old practice of making and storing kimchi for the winter, is sure to be placed on the UNESCO’s Representative List of Intangible Cultural Heritage of Humanity. [Editor’s Note: UNESCO’s Intergovernmental Committee for the Safeguarding of the Intangible Cultural Heritage agreed on the inscription at its eighth session, held in Baku, Azerbaijan, on December 5.]
As a result of my lifelong dedication to developing and promoting kimchi, I opened the Kimchi Theme Park in Bucheon, Gyeonggi Province, in March 2012. It is offering an opportunity to have firsthand experience in making kimchi to all visitors ranging from kindergartners, elementary and secondary school students, and foreigners. After having hands-on experience in making kimchi, even young students who did not like kimchi come to appreciate its real taste, understand our traditional diet and return home satisfied.
The Kimchi Association of Korea is running an educational program to foster professional manpower equipped with a competitive edge in the kimchi market. As an “industrial field professor,” I frequently visit rural middle schools and high schools to share my experience of overcoming past hardships to become a kimchi master. I am also sparing no effort to hand over my knowledge on making kimchi to as many people as possible to increase the number of apprentices who are willing to learn kimchimaking skills.
I am doing all these things because I love kimchi, but I also believe that it is my mission to help keep the kimchi culture alive in our everyday life and share my talent. Our economy is going through hard times. I suggest that we look around ourselves to see if there are persons who are in more difficult situations than us. Anybody has one or two talents and sharing them with others will help us pull through these hard times early. When preparing kimchi for the winter, our ancestors helped one another through exchange of labor, which was an integral aspect of Korean culture.
[ JoongAng Ilbo, November 15, 2013 ]
www.koreafocus.or.kr
The National Museum of Modern and Contemporary Art in Seoul
Kang Su-mi Art Critic; Professor of Art Theory Dongduk Women’s University
The Korean art community is highly expectant. In 2009 the government boldly committed a hefty budget to open the Seoul branch of the National Museum of Modern and Contemporary Art. There was an inauguration ceremony on November 12 ushering in a new age. As the celebratory tunes carry far in huge festivities, both Korean and world-renowned overseas artists’ works are on display for the opening exhibition. As many guests crowd around much-talked-about parties, art experts from home and abroad as well as journalists, citizens and tourists are flocking to the museum.
There are incessant mentions of the venue on Twitter, Facebook and blogs. When surfing the Internet, you are surprised to come across relevant information already uploaded on tourist attraction sites and job search sites. This explains the excitement coming from Korean art circles. Artists are looking forward to an opportunity to display and perhaps collect great pieces of artwork in a premier museum; art merchants to new sources of revenue and opportunities; art majors to more quality jobs; and art fanatics to additional leisurely and luxurious occasions to appreciate art.
The National Museum of Modern and Contemporary Art started out in Gyeongbok Palace in 1969, moved to the east pavilion of the Seokjojeon in Deoksu Palace 1973, and it finally earned its own place in Gwacheon, south of Seoul, in 1986. Although it was the only national museum that represented modern Korean art, the location was not fitting. On weekends and picnic seasons, a huge
crowd would go to the nearby amusement park. Suddenly deciding to visit the museum seemed quite a foolish thing to do.
Aside from these physical constraints, the museum was criticized for not living up to its name. Even though it had 26 years of history in exhibition planning, art collecting, education and administration, it fell short of conveying national and world art history and providing a creative vision. At least history taught its lesson and now the museum has grown so that many people have high expectations of it now. People demand to see real changes taking place in the Korean art scene.
Construction of the Seoul branch cost 246 billion won. The complex has three floors both above and below ground, totaling 52,000 square meters in floor space. It has eight galleries and a multi-project hall, theater, library and amenities. The sheer size has changed the look and feel of the Samcheongdong neighborhood. In that sense, the special opening exhibition planned as a chance to proclaim its vision and to provide a festivity that people can enjoy should be evaluated comprehensively in a fair manner.
Lip service will not do, nor will banal journalism dotted with sensationalism trying to provoke suspicion from the general public. The press should not simply recite facts and figures issued in the museum’s press release, nor should it blindly praise foreign museums while criticizing the policy directions and exhibition plans of local museums.
The Seoul branch, along with the Gwacheon and Deoksu Palace branches, as well as the art collection archive and preservation center to be built in Cheongju, are responsible for changing the paradigm of Korean art. Culture politics must be at play. It can merge and cross over between Korean and nonKorean, contemporary and modern, individuals and groups, artworks created on-site and collections, and different genres and areas. How do the five special exhibitions measure up in that regard?
On one hand, the NMMCA Seoul invited curators, artists, architects, engineers, astronomers, ecologists and other outside members to plan the opening event, and it provided an excellent beginning for the museum to leapfrog into becoming a world-class museum or a cultural platform. However, in contrast to the museum’s open and yet integrated façade exuding authority, an exhibition given under the theme of “Connecting_Unfolding” seems fragmented due to conflicts of interest, and “Zeitgeist Korea” shows the confusion, not the spirit, of the times. This is the current address of where the museum’s cultural politics lie.
[ Hankook Ilbo, November 22, 2013 ]
www.koreafocus.or.kr
Cheers to Speed Skater Lee Sang-hwa
Oh Pung-yeon Editorial Writer The Financial News
I like people because each person has a unique fragrance, and I like to write about them. All of my six essay collections are about people. There may be one hero or many in each story, but I rarely use their real names. I used real names for only a handful of people even though they are dead. Former presidents Kim Dae-jung and Roh Moo-hyun, Stephen Cardinal Kim Sou-hwan, and novelist Park Wan-suh are the exceptions.
I avoid using real names because I do not want to insult them in any way. But you can guess who the people are from the context. Some people call me and ask, “Did you by any chance write about me?” and I tell them, “Yes, I did. I am sorry I should have asked for your permission beforehand.” No one has been offended, however. In fact they encourage me by telling me that it is an honor for them to appear in my essays. It is because of these people that I can type away at my desk every day, and I cannot thank them enough.
Lee Sang-hwa, Park Tae-hwan, Kim Yuna. They are our sons and daughters who inspire us. They make us proud, and all the more proud considering that their sports ― speed skating, swimming and figure skating ― were not popular in the beginning and they started with virtually nothing. I see Lee and Park on the podium ready to receive their medals. They wear their gold around their neck standing slightly shorter than the other medalists, but height is not an issue for them. Kim is also a spectacular
athlete. She has done her part as a civilian diplomat as well as a sportsperson. I am really proud of them. Speed skater Lee Sang-hwa broke the world record in women’s 500 meter event on two consecutive days. It is difficult to set even one world record. This accomplishment is all the more valuable because one millisecond can make a difference in her event. Lee does justice to her nickname, “Speed Queen.” She was unrivaled at the second race of the Speed Skating World Cup in Salt Lake City, Utah. Lee was simply on top; she had only herself to compete against.
I felt proud of her standing on the podium to receive her medal, and I am sure many others did, too. In January this year, she set the world record at 36.80 seconds and replaced it with her own records in four consecutive races. There are only four skaters who have broken world records more than four times in the women’s 500 meter. Catriona Le May Doan of Canada is a seven-time world record holder, and Bonnie Blair of the United States and Christina Luding-Rothenberger of Germany four each. Lee is the only Asian. Also it is only Le May Doan and Lee who broke their own records to set new world records more than three times in a row.
Lee is rewriting history as she skates. Her winning streak seems to know no end because she is still growing. Until last year, the world record in this event was held by Yu Jing of China at 36.94. She was the first female skater to break the 37-second barrier. Lee further reduced the record to 36 and 30-something seconds. In the first race, she skated 36.57, setting a new world record, and in the second race, she came in at 36.36 seconds. At this rate it will not be long before she hits 35 seconds. All eyes are on her. Lee’s achievements did not just happen. She has balanced physical, technical and mental capacity. Lee shed 5 kilograms before the racing season to maximize her physical condition. But she retained her lower body, maintaining her ability to finish strongly. We cannot overlook her heart of steel, either. She would not be here if it were not for her strong mental ability. I am sorry the spotlight shining on Lee is not as bright as she deserves. Let us cheer for Lee so that she may make yet another great leap.
[ November 22, 2013 ]
www.koreafocus.or.kr
Webtoons: A Driving Force behind Creative Economy
Yu Tae-yeol Director KT Economic Research Institute Digieco
Go-Stop, a Korean card game also known as Godori, has become a national pastime since the introduction of hwatu from Japan during the 19th century. Hwatu is the name of the cards that are used and literally means “battle of the flowers” in Korean. Go-Stop is a new card game that has evolved from the original Japanese hanafuda, meaning “flower cards,” and regions and age groups in Korea have different rules for playing it.
To avoid arguments, players need to agree on the rules before starting to play. There is another example of a card game derived from hwatu: Animal Go-Stop, which has recently become popular in Korea. As an online card game, Go-Stop has been re-exported to Japan. The evolution of Go-Stop is a typical example of how Koreans possess the creativity to generate new values by recreating the original. Another manifestation of this creativity is the “webtoon,” an online animated cartoon. It is an example of new cultural content created by combining a cartoon with the digital environment in Korea. If there is manga in Japan and the birthplace of cartoons and “graphic novels” is the United States, the mecca of pop culture, then there is the webtoon in Korea. Webtoons have continued to evolve from cartoons made available online to “smartoons,” which
maximize the multimedia effect. As a result, Korea’s webtoon market, which emerged 10 years ago, is expected to total 150 billion won (approximately US$135 million) this year and 300 billion won in 2015. However, the industrial value of webtoons is much bigger than the numbers.
Webtoon portals, which were the initial incubators of webtoons, are playing a key role in creating a stable production environment, which includes a system for evaluating creations. Some portals, in order to offer proper rewards to webtoon artists, have a per-visit fee system. Previously, webtoonists received a fixed fee per episode.
Moreover, incubation programs designed to foster rookie writers are vibrantly run, widening the gateway to becoming a webtoon artist. Consequently, the number of webtoon artists has jumped to around 500 from only 80 when comic books were the main medium. Among these webtoon artists, the number of those who have become star writers has currently reached as many as 150. With the rising number of webtoonists enriching the content, their audience has steadily swelled, thus creating a virtuous circle in the market. Webtoons vary in genre, ranging from narratives and portrayals of everyday lives to a “cookingtoon.” As business companies have recently paid attention to the webtoon market, brand webtoons have started to emerge: the “Infinite Power” of Samsung, the “God of Annual Salary” of Hanhwa, “Majo & Sady” of Intel, etc. In addition, webtoons are recreated in various cultural media such as films, books and plays, generating tie-in products including stationery and office supplies.
The success story of Korean webtoons does not stop at the border. Korean webtoons have garnered the international spotlight, becoming a core element of the Korean Wave, or hallyu, along with TV drama series and online games. It has been reported that discussions about selling overseas distribution rights for around 30 webtoons took place at the Frankfurt International Book Fair in Germany last October.
Some webtoons provide language services in English and Japanese to gain a foothold in foreign markets. Webtoon portals such as Tapas Media have been launched as a new webtoon platform for international followers. Korean webtoons have changed the industry dynamics and created new markets at home by combining two very different industries: cartoons and information, communications and technology (ICT).
In this sense, the success of Korean webtoons is a typical example of showing the right direction that
should be taken by the creative economy envisioned by the Korean government. Korea will be able to foster content industry into which ICT is incorporated by effectively improving something that already exists, capitalizing on the widespread love of digital devices and the world’s highest level of mobile broadband connectivity.
Making something out of nothing is not the only way of creation. As shown in the cases of Go-Stop and webtoons, creating something better by combining what has already been established will provide more opportunities to generate new value. Therefore, the opportunity to develop the nation through creative economy also lies in maximizing what we already have.
[ Digital Times, November 21, 2013 ]
www.koreafocus.or.kr
- North Korea’s ‘New Economic Management System’: Main Features and Problems - Korea, Koreans and Korean Products as Seen by Foreigners - Recent Trends in Capital Spending and Policy Implications - South Koreans’ Increasing Awareness of the Need for Unification
North Korea’s ‘New Economic Management System’: Main Features and Problems Park Hyeong-jung Senior Research Fellow Korea Institute for National Unification
I. Introduction
Since the installation of Kim Jong-un as its supreme leader two years ago, North Korea (Democratic People’s Republic of Korea) has been rearranging its state and party systems. One important change is the way its economy is handled. Officially called the “Economic Management System in Our Style,” the new approach is often called the “June 28 Measures” among South Korean observers in reference to the policy adoption in June 2012.
This study describes the basic concept of the New Economic Management System and looks into how it is being implemented. Chapter II identifies the new system from the viewpoint of socialist economic reform. Chapter III introduces the core practices of the new system as explained in North Korea’s official documents. Chapter IV observes how the new system has been applied as suggested by Radio Free Asia reports. Chapter V summarizes the above contents and offers an assessment of the situation.
II. Change in Socialist Paradigm
The first question is how the New Economic Management System fits a socialist economy. A simple breakdown of a socialist economic system has four categories: 1) communist rule + central planning + state ownership of production means; 2) communist rule + decentralized reform + state ownership of production means; 3) communist rule + coexistence of market and planned economies + state ownership of production means; and 4) communist rule + market economy + privatization of production means.
In China, the years between 1984 and 1992 are associated with Category 3. It was called a socialist commodity economy. And the period from 1992 to the present falls into Category 4, as a socialist market economy. In North Korea, the economic management system up to the end of the 1980s was in Category 1. Its economy under the July 1, 2002 measures may be identified with Category 2. The
New Economic Management System brings the North to Category 3. A “socialist commodity economy” reduces or abolishes control of state-owned enterprises and eventually develops into the coexistence of state plans and markets, or a market economy. This requires an overhaul of a nation’s entire economic management system. As state directives are reduced, the bureaucracy needs to shrink and the state’s role in the national economy has to change. The role of markets needs to be expanded with official recognition. This change should be accompanied by political and economic opening up. The four categories can be compared with the four stages of human development ― infancy, childhood, youthhood and adulthood. Individuals share certain characteristics at each stage of development but have a life of their own. Likewise, socialist economies experience common stages of reform in different forms; some succeed in achieving economic development and improvement of people’s lives while others fail. Reform does not necessarily bring about economic advancement.
III. Main Features
The core concept of the New Economic Management System is, according to the Choson Sinbo, the North Korean-edited newspaper published for pro-Pyongyang Korean residents in Japan, relinquishing the power of management from the state to factory enterprises and farms. “Whereas in the past enterprises had just to carry out the production plans handed down from the state, the new measure has allowed enterprises to make production contracts with various clients based on their own decisions while implementing state plans as well,” an article in the newspaper’s May 10, 2012 edition said.
In practice, the state continues to own the means of production and appoints the heads of state-owned enterprises but the enterprises are allowed to decide how they fulfill the state’s production targets and meet market needs, taking responsibility for the results of management. This constitutes a major change from “socialist planned economy” to “unplanned socialist economy,” or the beginning of an unplanned economy. North Korea gives the impression that it is trying to ease the impact of the change by using ideological expressions. The Choson Sinbo article said, for example: “Since last year, some factories, enterprises and collective farms have been engaged in independent and creative management as a pilot program under the guidance of the Cabinet.” It also said: “The appropriate (economic) units are studying ways to produce personnel to fulfill their
responsibilities and perform their missions as the master of production and management.”
IV. Implementation
We have limited information about the New Economic Management System, on how it was conceived and implemented, and what it has achieved so far. We have to rely mainly on media reports from various outlets, the Radio Free Asia being the most quoted. There is the possibility that inaccurate and insufficient information is used in reaching conclusions, as this study assembled and analyzed reports from diverse sources. Even with inconsistencies among individual reports, however, we can still grasp an overview of North Korea’s current economic management system.
1. Main Features in the Initial Period On the day of Kim Jong-il’s funeral, Kim Jong-un reportedly asked high-ranking officials to prepare a “new economic management method.” The Cabinet was ordered to form a group “to prepare an improved method of economic management.” The small group headed by Deputy Premier Ro Duchol considered three ways of agricultural reform, in particular. One was to allow collective farms to make independent decisions on production and distribution without changing the structure of farms. The second was to divide each collective farm into five to six sub-units and give them management autonomy. The third was to fully liberalize individual farming as China did. Through these preparations, North Korea issued a directive, titled “On establishing a new economic management system in our own style” on June 28, 2012. Implementation of the new system was to start on October 1.
Lectures to explain the New Economic Management System to workers and farmers were held across the country in early July and again in early August. The lectures revealed that:
- The state will not hand down items for production or other details to factory enterprises. - Factory enterprises will make their own production plans, including prices, sales procedures and distribution of profits. - Production facilities, raw materials, fuel and power will be secured through transactions with other enterprises, mines and power stations, without state intervention. - Individuals cannot establish factory enterprises; their officials will be appointed and dismissed by the Workers’ Party as before. - Enterprises should feed their own workers by adequately making and selling products in accordance
with their respective capabilities. Officials who are unable to do so are to be fired. Each province was to operate “direct supply centers” where enterprises would freely purchase raw materials and other necessities. This was to ensure North Korean authorities have at least limited control over production activities. Even coal and electric power should be procured directly with cash or checks. Food also will be sold freely at the supply centers. Enterprises were obliged to pay 30 percent of their profits to the state to share the cost for the operation of such public facilities as schools and hospitals.
The state rationing system was targeted for closure but the state planned to strengthen its control of markets to stabilize prices. Teachers, healthcare personnel, party cadres and bureaucrats were obliged to buy food at “food supply centers.” These food outlets, which mean rice markets, will serve as places where state food management agencies, collective farms and individual producers can freely sell their products to consumers. Wounded veterans, social security beneficiaries and pensioners can buy food at discount prices.
As of November 1, 2012, food rationing for military personnel, members of law enforcement organizations and general administration officials was to end but they were to receive salary to help them pay for meals. Prices were set by the state ― 4,000 won for 1 kg of rice and 2,000 won for 1 kg of corn ― and markets can sell items designated by the state. Sale of foreign goods and the use of vending trucks were prohibited.
For members of independent accounting enterprises, wages were to be paid in cash and there will be no partial payment in food. But units that remained under state control were allowed food rations. Salaries were raised sharply but the increase was not enough to completely cover high prices of commodities ― from 2,000 won to 12,000 won, for example, in the case of a factory in Onsong, North Hamgyong Province, which was barely enough to buy 2 kilos of rice as rice price there rose to 5,000 won per kilo. About 10 percent of all enterprises in terms of production, which employ some 20 percent of total workers, are operated in the independent accounting system.
In the agricultural sector, the New Economic Management System was introduced in October 2012. First, the distribution formula was changed to 70 percent of the total harvest to the state and 30 percent to farmers. Previously, the state collected a set amount regardless of the year’s harvest; under the new system, farmers are to get more when the harvest is bountiful and less when it falls short, as distribution will be based on the five-year average harvest from each farm. Second, “sub-units” were
recognized at collective farms with each having two to six members. This means that family-based farm operation is possible. In a two-family sub-unit, they can divide their allotted land for separate cultivation.
In healthcare, hospital pharmacies were to be closed, which meant an end to free medicine. Patients would have to buy drugs at regular pharmacies. Only in cases involving serious diseases, hospitals will give free treatment. In education, the end of free schooling was scheduled.
There were reports that a new agency would start supervising and controlling the implementation of the New Economic Management System in early November 2012. According to the reports, this agency were to be composed of economic, financial and law enforcement experts to work independently without interference from any powerful organizations, reporting directly to the National Defense Commission. The central party secretariat recruited able people aged around 40, who would be trained in Pyongyang before being assigned to areas where they have no regional connection.
Two additional measures were taken for the new system. One was the farmland rearrangement project, which in essence was removing farmhouses scattered in twos and threes near collective farms. Farmhouses were relocated to a new housing compound away from farms and the sites of the old houses were turned into farmland. The other was firmer discipline of collective farm members. Directives were delivered to collective farms to subject absent farmers to “labor punishment.” Security personnel moved about in farms to check those who were not working.
After the New Economic Management System was announced, measures were taken for the renewal of control in the areas of public security, education and healthcare. New directives on “protection of secrets” and “more effective visual surveillance” were delivered through governing networks for stronger internal discipline. In Ryanggang Province, DVDs, computers and mobile phones were inspected and residents were forced to write confessions about their transgressions. Officials were specially instructed to crack down on bribes to get work disability excuses and surveys were made to provide incentives for families with three or more children.
2. Difficulties
When briefings began in early July for party administrative officials, new worries spread over possible inflation and other difficulties. They apparently recalled the failed economic measures of
July 1, 2002 and the currency reform debacle in 2009. North Korean authorities stressed that the New Economic Management System was not a step toward a general economic opening. Nevertheless, the price of rice jumped and demand for Chinese currency rose in the black market. On July 6, in Hamhung city, the price of Chinese rice shot up from 3,600 won to 6,000 won per kilogram and back alley markets in major cities were paralyzed.
There was a heated debate about the New Economic Management System when provincial party chiefs and senior Cabinet officials gathered for the celebration of Kim Jong-un’s installation as the supreme leader. They recognized the necessity of a new system, but the provincial party chiefs argued that its implementation should be delayed until after autumn harvest.
Rounds of lectures on the New Economic Management System started again on August 6. On August 8, the exchange rate with Chinese currency rose from 840 North Korean won to 950 won against the renminbi and commodity prices continued to go up throughout the month. As of the end of August, the rice price in Hyesan, Ryanggang Province, passed 7,000 won per kilo, compared to 5,000 won at the beginning of the month.
Beginning in late July to August, experimental measures were taken at farms and manufacturing sites. Inspection teams were dispatched to factory enterprises in the provinces to check production facilities and select pilot factories to implement the new system. In Ryanggang Province, the Hyesan Footwear Factory, Hyesan Cosmetics Factory and Hyesan Textile Factory were chosen to prepare for full application of the new system from the beginning of 2013. Insolvent enterprises were designated for shutdown or merger with other factories.
Three or four collective farms were selected from each province. In late July, one collective farm each in Taehungdan, Kim Hyung Jik and Kim Jong Suk counties in Ryanggang Province were presented with seeds of improved species, fertilizer and weed cutters as a state investment with a promise of allotting 30 percent of crops to farmers.
Though pushed for full implementation from October, the New Economic Management System exposed drawbacks during the short experimental period. The outcomes at pilot project enterprises in Rason, Chongjin and Pyongyang were disastrous. Planners had expected the new system would yield enough profits to pay salaries of 350-400 yuan in Chinese currency, or 100,000-150,000 won in North Korean money. What they actually paid ranged from 30,000 won to 60,000 won, a bare subsistence level.
The planned salary system in the public sector had to be postponed due to the general scarcity of food resources. In the agricultural sector, the 7:3 split between the state and farmers was found to be impossible at the experimental farms because of production shortfall. At farms in Ryanggang Province, potato production fell to 15 tons per hectare, less than half of the targeted 40 tons, due to bad weather and fertilizer shortage. Powerful state organizations directly collected produce from collective farms to pay salaries with potatoes, leaving little for the survival of farmers.
From the early 2013, the ill effects of the new system became more evident. Most provincial enterprises had little work to do and therefore were unable to raise wages as required under the new system. Food rationing was cut to a half while salaries were raised only marginally. Enterprises in the provinces were asked to establish plans for survival with improvement of technologies and exploration of resources. Their managers were told to feed workers without relying on the state.
3. Political Repercussions to Farm Sub-units
The sub-unit system was installed at collective farms at the beginning of January 2013. An average of 70 percent of the farms in each county was affected. Exceptions were made at “No. 8 farms,” which produce food for party officials, state-operated farms belonging to the Public Security Bureau, farms under the direct control of the Ministry of the People’s Armed Forces and special seed farms in cities and counties. Some major military units also operated their own farms.
The sub-unit concept appeared to be a hybrid of two extremes. One is forming a family-based production unit that would be self-managing and share crops with the state under a 3:7 ratio. Collective farms are virtually abolished in this concept. The other extreme is maintaining the bureaucratic system of collective farms, only dividing them into small sub-units and setting the new distribution ratio of 3:7. In implementing the sub-unit system, there must have been certain ambiguity in defining the new formula between the two extremes, and from the start, the new system could probably have taken varying forms in different regions. Reports revealed that collective farms were bewildered in the absence of clear directives, resulting in the idling of farm workforce.
We can surmise that the concept of sub-unit transitioned over time from close to the first extreme to the second extreme. The original idea was focused on stimulating farmers’ desire for higher production, but that meant a weaker bureaucracy, less control over farmers and risk to the food security of special state organizations. We can imagine there was considerable resistance from the
bureaucracy, which led to variations in implementing the system among locales.
A collective farm has about 100 households with 200 farmhands. Additionally, each collective farm requires 40 to 50 people who include the secretary of the basic party unit, and cadre members of the Socialist Youth Workers’ League, the Farm Workers’ Union and the Women’s League. Many of these overhead personnel will have to leave when collective farms are divided into family sub-units. Thus, there will be less state control over farmers. If officers of collective farms are elected directly by farmers, they may always act in favor of farmers and residents may long for the election system in capitalist societies. It was also feared that farmers could misreport their harvest in order to have more to sell in the open market.
Skeptics about the sub-unit system questioned whether family-based farms could maintain the same level of productivity as when collective farms received student assistance during the busiest months as well as large amounts of organic fertilizer. Even under the new system, farmers should continue to provide pork and rice for the military. They also will remain under the heavy burden of repaying the state for farm machinery, fertilizer and seeds.
Late in January 2013, state authorities prohibited farmers from cultivating small patches of land on mountains and limited the size of vegetable gardens to 10 pyeong (33 square meters) from the previous limit of 30 pyeong, turning over the returned land to collective farms. This was to steer the farmers’ energy toward collective farm cultivation. For even the permitted 10 pyeong of vegetable garden, farmers were asked to pay 50 won for each pyeong. An average North Korean farm household cultivates about 1,500 pyeong of land. About a month later, these restrictive measures were lifted and farmers were told to pay 30 percent of the grain harvested from their privately-held land to the state.
4. Manufacturing Sector after March 2013
The New Economic Management System was broadly put into practice in the industrial sector beginning in March 2013, although it was not officially announced. Manufacturers should have received March production plans from authorities by February 25. Instead, the authorities met with workers to emphasize that they had to begin feeding themselves by self-managing their output. But the situation was not much different from the past because factories remained idle due to a lack of raw materials, power and operating capital.
The news of the impending implementation of the New Economic Management System affected the
back alley markets across the country. But the authorities soon announced the “state of wartime mobilization” on February 28. It was followed by “No. 1 state of combat” to blunt any shock the economic step would have on the North Korean public.
In April, the state ordered enterprises to raise wages to reflect price increases. A 10-fold salary increase was offered plus bonuses for large profits. As enterprises, such as cement plants, were permitted to dispose of surplus production beyond state plans, the salaries of some workers rose in multiples of 10 times, news reports said. The Department Store No. 1 and Potonggang Department Store in Pyongyang established their own procurement and sales plans to increase profits by selling items directly imported from China. All of these developments raised worries about inflation. And the hefty pay raises in fact had little effect on improving the lives of North Koreans as a new salary amounting to 20,000 won was worth only 3 kilos of rice. There still were no conclusive words from the authorities on how the rationing system would change under the new system.
The Choson Sinbo published an interview with Kim Ki-chol, deputy head of the Cabinet Secretariat, and Ri Yong-min, a deputy department head at the National Planning Committee, on May 10. In their comments about the new economic management methods, they said that Kim Jong-un gave solutions to economic problems on several occasions this year and handed out assignments to experts and scholars. “We have held consultation and discussion sessions with research organizations and economic officials… and most of the program is still in the stage of research,” they said. The two officials admitted that problems concerning production plans, price adjustment and money circulation had emerged and there was the need for new legislation.
5. Confusion after July 2013
From July, there were occasional reports indicating a retreat from the new system in both the agricultural and manufacturing sectors. Concerning the sub-unit system, reports said that political alarm bells were ringing at collective farms. Worries were raised that when sub-units were formed nationwide on the basis of families, farmers would neglect organizational activities and would not pay attention to managers and party secretaries. Local officials pressured collective farms to forego the new management system. Reports had it that collective farms in Hoeryong and Onsong in North Hamgyong Province and Unhung, Kapsan and Samsu in Ryanggang Province were recalling land that had been distributed to farm members. Family-based sub-units were being replaced with bigger ones with 20 to 30 members.
It was also observed that North Korean authorities were experiencing difficulties in trying to fulfill the promised 7:3 crop-sharing ratio between the state and individual farmers. What happened in the first year of 2012 was the state’s collection of crops by over 90 percent to secure food for the military and other purposes. In Ryanggang Province, state instructions kept changing from the initial 5:5 ratio between the state and farmers in January to 7:3 at the end of September and then back to the direct rationing system in October.
In the industrial sector, the worst problem was the lack of resources to resume production with or without the new system. The state failed to provide energy, raw materials and other necessary resources, and Chinese investment did not grow even with the change of system because of persistent high risks. Enterprises were unable to pay salaries to workers, who would not come to their idled workplaces. It was learned that enterprises were sending notices to employees that introduction of the New Economic Management System was being withheld pending fulfillment of necessary conditions.
V. Summary and Assessment
The objective of the New Economic Management System in North Korea is the building of an “unplanned socialist economy,” or something similar to the “socialist commodity economy” China implemented between 1984 and 1992. Agricultural, industrial and financial measures that North Korea is trying to introduce along with the installation and expansion of special development zones under the New Economic Management System are mutually connected and therefore need to be simultaneously implemented.
North Korea has the conceptual blueprints for each economic measure and its leadership includes individuals who are interested in promoting the areas where they are specialized. However, the country apparently lacks the capabilities to create the proper economic and political conditions for these measures. Against this backdrop, production increase and overall economic growth cannot be expected and confusion would intensify.
North Korea had not made sufficient preparations economically and politically before the introduction of the New Economic Management System. Introduction of new measures inevitably affects the interests of those who had been active under the old system. Transitional imbalance may arise in the process of putting the new system into practice. Reserve resources are necessary to address such problems.
The sub-unit management system in the agricultural sector showed how the reform effort can be stymied. This new system spurs independent efforts of farmers and stimulates their motivation for production increase but it invited the resistance of agricultural bureaucrats. When the state and farmers begin to share products by a ratio of 7:3 instead of the previous ratio of 9:1, imbalance will emerge somewhere in the distribution of farm products. Reserve resources are necessary for such a sudden change. The same is expected of the industrial management system. Factory enterprises were given autonomous operation rights but the new system did not result in production increase. Reserve resources are needed here, too.
The new policy under the Kim Jong-un rule lacked consistency and often exposed zigzagging directions. Officials responsible for the implementation of the new policy were unable to win over dissenters and failed to secure reserve resources needed to overcome the material imbalance in the transition period.
Eventually, the management reform at factory enterprises and experiments with sub-units in farming areas were virtually abandoned. The sub-unit management failed because of resistance from agricultural bureaucrats, the authorities’ unease about relaxation of peasant control and uncertainty about the food security for the privileged class. The sub-unit management system most seriously threatened the stockpiling of food grain for the military and the power elite. It is certain that the military was the biggest opponent to the new agricultural management system.
The New Economic Management System accompanied policies that reduced the privileged role of the military in the economy. Similar problems were certainly exposed in the reform of industrial and financial management, such as non-cooperation from the privileged group, concerns about loosening control of workers and managers, and lack of guarantees for special interests.
Yet, the sub-unit management in farms and increased autonomy of factory enterprises were not entirely meaningless. Interestingly, some in North Korea’s leadership believed that the sub-unit system with incentives to individual farmers was necessary despite many problems attached to the farmers’ self-interests. Although it was not successfully implemented, it did help farmers gain more independence from state control.
The unavoidable trend of changes in the North calls for systemic reforms like the sub-unit management just as youths grow up to become adults and then to the middle age. The problem is how to operate the changed system to achieve production increase. To be successful, those in the North
Korean leadership who advocate the New Economic Management System should be able to politically suppress those opposing it or win them over economically by assuring them of the distribution of surplus. What has happened to date shows that the new system has failed to make much progress in that direction.
Concerning the projects of building special economic development zones, similar problems have been detected. The Workers’ Party Central Committee decided in a plenary meeting in March 2013 to take measures to diversify foreign trade, develop new tourist zones, and build special economic zones suitable for the specific conditions of each province. The Economic Zones Development Act was enacted in May and, as of October 2013, each province is boosting efforts to attract foreign investment and create new economic development zones. The concept of special economic development zone can be defined as conforming to the “unplanned socialist economy” or the “socialist commodity economy.” But the success of special economic zones needs the three steps that were required to tackle the problems faced by the sub-unit farm management and the autonomous operations of factory enterprises as observed above.
[ KDI Review of the North Korean Economy, October 2013, published by the Korea Development Institute ]
www.koreafocus.or.kr
Korea, Koreans and Korean Products as Seen by Foreigners Cho Sang-hyun Research Fellow, Institute for International Trade Korea International Trade Association
Hong Seong-tae Professor of Management Hanyang University
I. Outlines of Survey
1. Purpose of Survey
The purpose of this survey was to gather international views of Korea and its exports. Both foreigners residing in and outside of Korea were questioned. The survey is expected to help the government and business officials identify the images of Korea, Korean businesses and the main exports that may need to be developed further.
The survey is also aimed at understanding the effects the Korean Wave, or hallyu, and other social and cultural factors have had on Korea’s national image. More specifically, it will be helpful in understanding how hallyu can help improve the image of Korea and its exports. This survey is also intended to discover Korea’s image and its indigenous values, and secure the links between them and the nation’s export industries. Through these efforts, government ministries and businesses will be able to identify ways to establish premium images for “Korea brand” and “Korean brand.”
The survey will likely help arrive at policy implications for developing and spreading a new slogan for national brand, by linking culture to economy and trade.
2. Survey Methods and Outlines □ Survey Methods
• Exploratory survey: February to March 2013 • FGI (Focus Group Interview) survey: March 2013 • Opinion polls: April to May 2013 □ Sample Selection
This survey did not follow the usual classification of international respondents according to continents. It divided the world into five groups according to their characteristics.
□ Outlines of Opinion Polls
3. Respondents and their Characteristics â–Ą Respondents: 1,160 persons from 38 countries
â–Ą Characteristics of Respondents
II. Results of Opinion Polls
1. Overall Evaluation of Korea â–Ą Tourism
(1) The best city in Asia to shop Respondents cited Hong Kong (31.2 percent), Seoul (27.7 percent) and Tokyo (15.3 percent) as the three best cities.
By the region from which the respondents come, foreigners living or staying in Korea cited Seoul (40.4 percent) and Hong Kong (26.1 percent), while those who live abroad cited Hong Kong (32.3 percent) and Seoul (25.0 percent). Also, the more the foreigners knew about Korea (38.3 percent) and the more experiences they had about Korean products and cultural contents (47.2 percent), the higher the ratio of those who picked Seoul ahead of other cities, in relative terms.
Besides, the ratio of respondents who chose Seoul was higher among foreigners who are living or staying in Korea (40.4 percent) or those planning to visit Korea within a year (46.8 percent).
(2) The city foreigners want to visit most in Asia The cities foreigners want to visit the most were Seoul (28.6 percent), Tokyo (24.2 percent) and Hong Kong (16.5 percent)
Notably, Asians chose Seoul (43.6 percent), while Westerners preferred Tokyo (31.6 percent). Foreigners who use Korean products frequently preferred Seoul (36.9 percent), while those who do not preferred Tokyo (31.8 percent).
By the characteristics of respondents, those from advanced countries (Group I and II) predominantly preferred Tokyo, and Group III also preferred Tokyo (29.2 percent). Those who preferred Seoul mainly belonged to Group IV (Low Income/Decolonized) and Group V (China).
(3) Places foreigners want to visit in Seoul In Seoul, the places foreigners want to visit most were Gyeongbok Palace (24.7 percent), Myeongdong (15.2 percent), and the area surrounding Hongik University (14.7 percent). The largest number of respondents preferred royal palaces, while Myeong-dong and the vicinity of Hongik University
were selected because foreigners can buy cosmetics at low prices in the former, while the latter is a popular hangout for young people.
Respondents from all countries except for China preferred royal palaces.
▥ Koreans (1) Three words that best describe Koreans’ strengths
Foreigners gave the highest points to the “hard-working” spirit of Koreans (21.5 percent). Such a trend was more prevalent among respondents from advanced countries, and the second most dominant response in Group III (High Income/Decolonized) was “competitiveness” while those from China were wary of “patriotism” of Koreans.
(2) Three words that best describe Koreans’ weaknesses The respondents most frequently pointed out that Koreans are “stressed,” followed by self-revering, unsociable and hot-tempered. In general they regarded Koreans as hard-working people with stressful lives.
Responses varied distinctly among the groups. - Group I (High Income/Old Continent) pointed out “unsociable” (17.2 percent) most frequently, presumably showing sensitive responses to Korea’s exclusive culture. - Group II (High Income/New Continent) mostly pointed out “stressed” (18.8 percent), reflecting their own social atmosphere that regards individuals’ freedom highly. - Asians from Group III (High Income/Decolonized) and Group V (China) most frequently regarded Koreans as “self-revering” (20.7 percent).
(3) Preferred types of Asian women The respondents’ favorite types of women were Koreans (39.8 percent), Japanese (22.1 percent) and Chinese (16.6 percent).
Westerners preferred Korean and Japanese women almost equally, but Asians predominantly preferred Korean women.
(4) Preferred types of Asian men Preferred types of Asian men were in the order of Koreans (40.4 percent), Japanese (18.2 percent) and Chinese (14.3 percent).
Respondents from both the West and the East highly preferred Korean men in terms of appearance. The preference was especially conspicuous among Asians.
□ Korean Society (1) Three words that best describe Korean society’s strengths Major strengths of Korean society were seen as good service (16.4 percent), strong unity (15.4 percent) and dynamism (13.5 percent). Westerners cited “unity,” while Asians picked “good services.”
(2) Three words that best describe Korean society’s weaknesses Major weaknesses of Korean society were excessive competition (30.2 percent), superiority complex in ethnic and cultural identity (27.5 percent), and overdrive pace (20.2 percent). Westerners mentioned “excessive competition” as the biggest weakness while Asians cited “superiority complex in Korean identity.” Arabs pointed to “overdrive pace” as the biggest weakness.
â–Ą Korean Culture
(1) Cultural icons that symbolize Korea As cultural icons that symbolize Korea, respondents cited kimchi (25.9 percent), taekwondo (15.7 percent) and movies (14.6 percent).
Group I (High Income/Old Continent) selected taekwondo while Group II (High Income/New Continent) picked both kimchi and taekwondo. Group III (High Income/Decolonized) and Group V (China) predominantly chose kimchi, while people from advanced counties gave high points to the taegeuk (Supreme Ultimate) emblem, too.
(2) Most favorite Korean food The most favorite Korean foods were kimchi (21.8 percent) and galbi, or beef ribs (19.1 percent). Those who picked “Don’t know” amounted to 18.2 percent. In addition to kimchi that best represents Korea’s food culture, galbi and bulgogi (marinated and grilled beef), the respondents also chose bibimbap (rice mixed with vegetables and beef). However, foreigners’ awareness of Korean food was quite low.
Outside of Group V (China) and Group II (High Income/New Continent), “don’t know” recorded high response ratios. Overall, Westerners preferred galbi and Asians liked kimchi most.
(3) Overall assessment of Korean food The most frequent descriptions of Korean food were spicy (43.1 percent), healthy (23.4 percent) and light (14.4 percent). As a whole, most foreigners think Korean food is “spicy and pungent,” as well as “healthy” because kimchi is fermented food.
The perception that Korean food is “spicy” was most widespread in Group II (High Income/New Continent), while Group V (China) replied Korean food is “light” compared with theirs.
(4) Level of preference for K-pop The opinion about K-pop was “like” (35.3 percent), “so-so” (32.1 percent) and “dislike” (8.1 percent)
Group IV (Low Income/Decolonized) and Group V (China) showed the highest preference for Kpop. Group II (High Income/New Continent) had the lowest regard.
(5) Assessment of K-pop The assessment of K-pop were “talented” (23.8 percent), “don’t know” (23.2 percent) and “pretty” (14.5 percent).
Aside from Group V (China), the response of “don’t know” was prevalent, and especially so in Group II (High Income/New Continent). In advanced countries (Group I and II), the response of “artificial” showed the second-highest ratio, indicating they have some resistance to synchronized performances.
(6) Entertainment contents helpful for building positive images of Korea Entertainment contents that can help Korea most in building positive images in the international community were in the order of TV dramas (36.2 percent), music (17.5 percent) and movies (14.1 percent).
Korea’s TV dramas are somewhat kitschy but popular, and enjoy overwhelmingly positive feelings in Asia. On the other hand, Korean movies enjoy high regard in the West as “avant-garde,” although they are a little difficult for Westerners to understand because of cultural differences.
In Asia, including Group V (China), Korean TV dramas are enjoying overwhelming popularity. On the other hand, Group II (High Income/ New Continent) showed a high frequency of “uninterested.”
(7) What Korean dramas mainly portray
As to what Korean dramas portray most often, romanticism was the most cited at 29.2 percent, followed by “don’t know” (20.4 percent) and “high standard of living” (15.4 percent). In Asia, “romanticism” was high, while the largest share of respondents from advanced countries said they “don’t know.”
Group IV (Low Income/Decolonized) and Group V (China) showed high response rates of “romantic life.” Group I (High Income/Old Continent) tended to avoid replying they “don’t know,” while Group II (High Income/New Continent) replied that they “don’t know” with little reluctance.
□ Knowledge about Korea
(1) Korea’s Olympic performances Asked about Korea’s overall rankings in the Olympic Games, the biggest share of respondents made correct replies of “among the top 10” (34.8 percent).
Group IV (Low Income/Decolonized) correctly answered most often, while Group I (High Income/Old Continent) and Group V (China) often replied “11-20th place.” With the exception of China, most Asian countries had correct knowledge about Korea’s performances in Olympics, and Arabic countries also made comparatively correct replies. (2) Kim Jong-un’s nationality Asked about the nationality of Kim Jong-un, first chairman of North Korea’s National Defense Commission, more than seven out of every 10 respondents correctly answered that he is North Korean (77.2 percent).
Group II (High Income/New Continent) and Group V (China) showed the highest correct responses with 80 percent or more. On the other hand, the correct responses of Group III (High Income/Decolonized) and Group IV (Low Income/Decolonized) were relatively lower, and especially so among low-income Asian countries.
2. Characteristics of Korean Society and Businesses â–Ą Social Characteristics
(1) Things in which Koreans may take pride Foreigners think Koreans can take pride in their recent economic development (31.7 percent), K-pop entertainers (16.6 percent) and academic fervor (13.6 percent).
Group I (High Income/Old Continent) and Group IV (Low Income/Decolonized) rated “economic development” most highly, while Group II (High Income/New Continent) appreciated “5,000 years of history” along with economic growth.
(2) How do you define Korea in a word? Asked to define Korea in a few words, respondents associated it with such descriptions as “rapidly
grown” (31.2 percent), “long history” (21.9 percent) and “awesome” (12.1 percent).
Most groups cited “rapidly grown” as the biggest characteristic, but Group II (High Income/New Continent) focused on “long history.” Also, a large percentage of respondents in Group V (China) summarized Korea as an “awesome country.”
(3) Which slogan best describes Korea?
Asked to pick a slogan that best describes Korea, respondents selected in the order of “Korea, Moving Forward (23.8 percent), “Korea, Country of High-Tech” (20.8 percent) and “Awesome Korea” (13.1 percent).
In advanced countries, “Korea, Moving Forward” showed the highest response ratio, but Group III (High Income/Decolonized) and Group IV (Low Income/Decolonized) tended to associate Korea with “high-tech products.” Also, Group V (China) selected “Awesome Korea” in a large share. □ Characteristics of Businesses
(1) Ranking of countries associated with best-quality products In the ranking of Asian countries that reminds respondents of best-quality products, Japan ranked highest with 43.1 percent, followed by Korea (21.8 percent).
Group III (High Income/Decolonized) showed the highest preference for Japanese products, while Group V (China) rated Korean products most highly.
(2) Things that come to mind first when thinking of ‘today’s Korea’ For things that represent Korea today, the nation seems to have built up a strong image as an IT powerhouse. Respondents mentioned high-tech (26.4 percent), Samsung (26.0 percent) and strength in IT sector (12.3 percent).
Group II (High Income/New Continent) and Group IV (Low Income/Decolonized) rated “high-tech” highly, while Group III (High Income/Decolonized) made the highest assessment of “Samsung.”
(3) General views on Korean products Asked for their general assessment of Korean products, the majority said they are “good” (73.2 percent). Korea seems to have built up a strong image as an IT powerhouse among foreigners across the world.
Group II (High Income/New Continent) and Group IV (Low Income/Decolonized) rated “high-tech” highly, while Group III (High Income/Decolonized) made the highest assessment of “Samsung.”
(4) Feelings about Made-in-Korea products
As to how they feel about Made-in-Korea products, respondents cited high-tech (5.60 points), good design (5.24 points), reliable (5.15 points) and high quality (5.11 points). Between foreigners living or staying in Korea and those living abroad, there were wide gaps in how they view Korean products’ quality and reliability, which was evidenced in most categories, including high tech (5.92 vs. 5.53), good design (5.49 vs. 5.19) and reliable (5.50 vs. 5.07).
In all regions, assessment of high-tech showed the largest percentage, but there were considerable negative opinions, too, not only in advanced countries but also in Group III (High Income/Decolonized) nations.
Looking at items that received more than 6 points (based on the seven-point scale) in the awareness of Made-in-Korea products, “high-tech” recorded the most (60.7 percent), followed by good design, which ticked just above 50 percent (50.9 percent). Made-in-Korea products received relatively higher ratings in such categories as high-tech, good design, product reliability and quality, but low ratings in categories like original product (30.5 percent) and expensive (20.1 percent).
(5) Products associated with ‘Made-in-Korea’
Products that are associated with “Made-in-Korea” were mobile phones (29.1 percent), home electronics (28.4 percent), automobiles (22.7 percent) and cosmetics (14.5 percent). Foreigners’ awareness levels were high in consumer products that are easily branded.
Cell phones have built a strong image associated with ‘Made-in-Korea’ products in all regions, while home electronics have established solid images in Group II (High Income/New Continent) and Group III (High Income/Decolonized). In comparison, cosmetics have left impressive images in Group V (China).
(6) Brand names associated with Korean companies
Among brand names foreigners associate with Korean companies, Samsung marked the highest level of awareness (83.4 percent), followed by Hyundai (67.2 percent), LG (57.2 percent) and Daewoo (47.2 percent).
Samsung and Hyundai are well known in most regions, and Group V (China) showed the highest awareness level of Korean companies thanks to its geographical proximity to Korea.
3. General Views of Respondents
(1) Preference for Korea Asked whether they have favorable images of Korea, 68.4 percent of the respondents said they “liked” Korea, 24.4 percent said “so-so,” and 5.0 percent said they “disliked” Korea. The response ratio of “like” was high in Group IV (Low Income/Decolonized) and Group V (China).
(2) Awareness of Korean Products
As to the awareness of Korean products, 68.2 percent showed high awareness, while 22.7 percent revealed an average level of awareness.
(3) Awareness of Korea’s Capital City As many as 88.8 percent of the respondents said they know Korea’s capital is Seoul.
(4) Experiences of Visiting Korea and Length of Stay As for visiting Korea, 42.7 percent of the respondents said they had. Among them, 41.2 percent stayed 10 days or less, 16.8 percent between 11 days and two months, and 13.7 percent three years or longer.
(5) Plans to Visit Korea As to whether they have plans to visit Korea, 46.7 percent said “yes,” 35.8 percent said “no,” and 17.5 percent said they are currently living or staying in Korea.
(6) Experiences of Overseas Travel Asked whether they have traveled abroad, 55.6 percent said “no,” while 44.3 percent said “yes.” Among those who have experiences of overseas travel, the number of countries they have visited were 6 to 10 countries and 3 to 5 countries (25.7 percent respectively), 1 or 2 countries (23.5 percent) and 11 to 20 countries (18.1 percent).
III. Conclusion and Policy Implications
1. Images of Korea, Koreans and Korean Products □ Korea is an awesome country that has achieved rapid development. Korea has images of a country that is “awesome,” with a “long history” that has included “rapid development.” Based on these favorable perceptions, good services and strong national unity stand out as Korea’s major strengths, but the nation has weaknesses, too, such as being overly competitive and proud of Korean identity. Korea’s economic growth has become a role model for low-income, decolonized countries. It is a benchmarking model for low-income, decolonized countries, and has emerged as the nation they want
to visit.
□ Koreans are hard-working people, but are rather stressed out and have too much self-respect. The image that best represents Koreans is “hard-working, and they also give friendly impressions as well as being stressed-out and self-revering people. High-income countries in the old continent pointed out Korean’ unsociable traits, while high-income, decolonized countries and China said Koreans have too much self-respect. □ Made-in-Korea products are high-tech goods, and Korea’s most representative product and company are mobile phones and Samsung. Made-in-Korea products have built an image of “high-tech” items, and mobile phones and the Samsung Group have emerged as the products and the business corporation that best represent Korea, respectively. Samsung has established such a high brand image that most foreigners do not simply regard it as a large Korean business group but identifies it with Korea itself. People in high-income countries on the new continent and high-income, decolonized countries have high awareness of Korean-made home electronics, while Chinese tend to perceive cosmetics as Korea’s representative products.
2. Policy Implications □ Analysis of minute differences in survey results among different regions, and development of issues
for improvement
Korea has accomplished rapid economic development and emerged as a benchmarking model for low-income decolonized countries, but the nation has some negative images, too. Koreans’ emphasis on a single-race nation has led to the image of an unsociable people (especially among high-income countries on the old continent), while China and other Asian countries regard Koreans as self-revering people.
It is necessary to reduce psychological barriers toward Korea among people in China and other Asian countries as well as less-developed countries in other regions. With other Asian countries, including China, and less-developed nations fixed on the superiority complex of Koreans in their ethnic and cultural identity, the nation will need to make efforts to ameliorate these feelings to build a more positive image. □ Analysis of the characteristics of survey results in China and establishment of strategy on how to make the most of it
Responses from Chinese show some unique characteristics. Chinese tend to perceive Koreans as a patriotic and self-revering people who are proud of their national identity. Compared with people in other regions, Chinese predominantly regard Korea as an exciting country, and perceive Korean products as more fashionable than high-tech, as proven by their selection of cosmetics as products that best represent Korea. □ Building a new concept of national brand and exploring ways of linking it to export industries and products It is necessary to establish a new concept of national brand that can replace “Dynamic Korea” and work out a strategy to enhance the nation’s image in the global community. Korea’s rapid economic growth has resulted from its hard-working national character, which, however, involves some negative images as an unsociable, stressed-out and self-revering people. Therefore, it is necessary to draw up an image-rebuilding strategy. Korea will need to find how to secure a “Korea Premium” by applying a new concept of national brand to its export industries and products. The nation has to chart out the routes through which its new image strategy can create positive images for Made-in-Korea products.
□ Drawing up plans to enhance interactions between the nation brand and corporate/product brands
Korea needs to set up strategies to produce synergic effects between the high-tech image inherent in “Korea brand” and positive corporate brand images. Also necessary is a strategy to maximize the synergic effects between the image of Korean products as high-tech goods and the positive corporate images of business groups that represent Korea, including Samsung and Hyundai.
[ Trade Focus, Vol. 12, No. 58, October 2013, published by the Institute for International Trade, Korea International Trade Association ]
www.koreafocus.or.kr
Recent Trends in Capital Spending and Policy Implications Park Joo-young Senior Manager, Research Department Korea Development Bank
I. Capital Spending Trends □ Capital Spending Keeps Downward Trend
Capital spending by the private sector has been in a slump since 2011, with the exception of a brief rebound last year. Investment in plants and equipment by the electricity and electronic sectors, which account for half of the nation’s corporate spending, rose in the first quarter of 2012 but was not sustained. • Capital expenditure by electricity and electronic firms (%): △ 12.1 (2012/1Q) → △ 7.1 (2Q) →△ 11.2 (3Q)
Investment into transportation equipment also has remained in the doldrums since the second half of 2010.
Uncertainty abroad has slowed exports, curbing domestic corporations’ appetite for capital spending. Exports, which led the economic expansion with double-digit growth rates in 2010 and 2011, declined in 2012. • Export growth rate (on customs clearance basis, %): 28.3 (2010) → 19.0 (2011) → △ 1.3 (2012) The Bank of Korea’s business survey index (BSI) on capital spending has lingered below 100, reflecting the downturn. Exporters showed particular weakness in the survey. According to the Korea Finance Corp. survey on domestic businesses’ capital spending plans, exporters curtailed their capital expenditures by 2.3 percent in 2012, compared with the 0.1-percent drop recorded by companies focusing on domestic demands.
Even before the recent slump, domestic capital investment has had to compete with overseas direct investment by corporations. Since 2005, manufacturers have increasingly gone offshore in search of cheaper labor. Meanwhile, foreign direct investment in Korea has been lackluster since 2004, offering no offsetting input.
â–Ą Slow Demand and Economic Uncertainty
The low capital spending is mainly attributable to tepid demand both at home and abroad as well as economic uncertainly. Lack of cash reserves or financing difficulties have not been barriers to larger companies’ ability to invest in plants and equipment. But small and medium-size enterprises (SMEs) are facing financial constraints. About 18 percent of SMEs cited the shortage of internal funds and difficulties in financing from outer sources as the reasons for sluggish capital expenditure, while 15 percent of large enterprises made similar replies.
II. Characteristics of Changes in Capital Spending â–Ą Weakening Influence of Capital Spending
Quantitative evidence points to the waning influence of capital spending on GDP growth since the latter half of 1997, just before the Asian currency crisis hit Korea. In the pre-crisis period (between
the first quarter of 1990 and the fourth quarter of 1997), the average regression coefficient stood at 0.1, but the ratio fell to an average of 0.05 in the post-crisis period (between the first quarter of 1998 and the third quarter of 2012).
The reduced influence of capital spending in the 2000s was due mainly to the adjustment of overinvestment in the 1990s and increase in overseas direct investment. Korean companies’ overseas direct investment reached $44.49 billion in 2011, a seven-fold increase from $6.37 billion in 2001.
Also, the influence of capital spending has drastically changed since the mid-2000s, causing the domestic economy to destabilize. As capital spending concentrated on the IT industry, the volatility of investment deepened. The IT industry has high volatility, in part because its technological development is rapid and because the demand for IT products sensitively responds to economic cycles.
â–Ą Waning Function of Capital Spending
An analysis based on the Granger causality test showed that capital spending in the 2000s went in
parallel with business cycles or came even later than business cycles. In the 1990s, capital expenditures were made ahead of business cycles; higher capital expenditure improved GDP, which led to more capital spending to create a virtuous cycle.
In the 2000s, however, industrial players focused more on their bottom line and capital spending became much less of an economic bellwether. Businesses increasingly tended to make capital spending only when they felt the economy was on the rise. With the European fiscal crises prolonging economic sluggishness around the world, corporations have chosen to maintain and repair the existing plants and equipment rather than invest in replacements or to expand facilities. □ Sluggish Export Drags Down Capital Spending
Since the 2008 global financial crisis, the correlation between exports and capital spending has been strengthened, and the sluggish foreign shipments led to a setback in plant and equipment investments. As exports accounted for an increasingly larger share of the national economy, the correlation between exports and capital spending also rose. • Exports/GDP: 31.5% (1990s) → 41.6% (2002) → 56.2% (2011) → 54.8% (first three quarters of 2012)
According to a correlation analysis based on time series, the relationship between exports and capital spending strengthened after the global financial crisis (between the fourth quarter of 2008 and the third quarter of 2012) more than it did before the crisis (between the first quarter of 2000 and the third quarter of 2008). Since the global financial crisis, capital spending’s sensitivity to exports has risen. The exports’ regression coefficient stood at an average of 0.8 in the pre-crisis period (between the first quarter of 2000 and the third quarter of 2008), but the comparable figures rose to an average of 1.0 in the later period (between the fourth quarter of 2008 and the third quarter of 2012).
As the correlation between capital spending and exports has strengthened, a recovery in exports probably will exert greater influence on the reinvigoration of capital spending than before.
III. Possibility of Continuing Doldrums in Capital Spending â–Ą Capital Spending Falls Short of Optimal Levels
Since 2001, capital spending has fallen short of reaching optimal levels. As the result of making an analysis by assuming the long-term balance equation, the capital spending gap was found to have remained negative since 2001.
Capital expenditure recovered in the wake of the global financial crisis to reduce the scope of underinvestment against GDP, but the latter has re-expanded recently. A large-scale capital spending was made in 2010, but the growth has since slowed down amid increasing uncertainty because of the prolonged fiscal crises in Europe and other factors.
The recovery of demand will very likely be slow both at home and abroad, causing concerns about a prolonged slump in capital spending. Despite the improvement in investment conditions such as a
low interest rate policy and smooth cash flows, the shrunken demand and cautious corporate sentiment will likely restrain capital spending. â–Ą Weakened Pressure to Adjust Capital Spending
A visible pickup in capital spending is difficult to expect in most industrial sectors that are struggling with the economic slump and idled facilities. In the first three quarters of 2012, pressure to adjust capital spending led to a rebound in the automotive and oil refining industries, but overall spending for the year was weaker than 2011.
In the shipbuilding, semiconductor, machinery, electronic parts and telecommunication equipment industries, pressure to adjust capital spending has turned negative.
A considerable number of industries, including automobiles, steel, machinery and semiconductors, are likely to cut down on their capital spending. Only a limited number of industries, such as
food/beverages, metal working and oil refining, plan to boost capital spending. □ Underinvestment Feared to Continue through 2013
Domestic capital spending in 2013 is assumed to be slightly better than last year thanks to relatively less fiscal turmoil in Europe and better export growth, but it will still likely fall short of optimal levels.
According to a capital spending survey conducted by Korea Finance Corp., non-manufacturing industries’ capital expenditure is estimated to rise 3.6 percent, but that of the manufacturing sector is expected to fall 5.2 percent. The pressure to adjust the manufacturing industries’ capital spending, which had gradually declined since 2010, turned negative in 2012 and has since remained there. The economic uncertainties at home and abroad are likely to dampen businesses’ investment mindset. Despite a rebound in exports resulting from major economies’ gradual recovery, any visible recovery of capital spending is hard to expect because of the aggravated investor sentiment and ramped-up productivity from current facilities.
Although the investment environment is improving in terms of cost due to the low interest rate and strong currency, most domestic businesses remain cautious about capital spending. While exports are believed to be increasing in 2013, owing to the slow but steady recovery of global economy, the rebound will be limited by the prolonged strength of the Korean won as well as the aftereffects of fiscal crises.
By industry, IT products such as semiconductors and LCDs are assumed to take the lead in export growth, but there are fears that steel and shipbuilding will remain bogged down.
Sluggish capital spending slows down economic recovery in the short term, and hinders the accumulation of capital in the long term, causing the nation’s growth potential to weaken.
IV. Countermeasures
The government should try to dissolve economic uncertainty and improve the investment environment to help domestic businesses become more confident of investing. In the short run, it needs to encourage the private sector’s investment by expanding public-sector investment. The
government needs to create effective demand by expanding public-sector investment within the extent of not aggravating fiscal health, thereby triggering investment by the private sector.
By maintaining the consistency of economic policies, the government should also try to create an environment conducive to reinvigorating corporate investment in the medium to long run. Korean companies are currently expanding their overseas investments, so the government must create an environment in which the domestic businesses give investment priority to their home country. It should improve the investment environment at home by developing manpower in science and engineering, reducing logistics cost and easing regulations on corporate activities.
At the same time, the government should seek to improve the structure of capital expenditure currently concentrated in large businesses and IT industry. Capital spending concentrated in electricity and electronic industries is likely to hurt economic stability, as these sectors are sensitive to the demands for IT products laden with high volatility. The intensifying concentration of capital spending on large businesses also has widened polarization in capital expenditure.
Although capital spending by small- and medium-sized enterprises is very likely to slow down due
to the economic sluggishness, the government will need to identify SMEs with high growth potential and focus its financial support on them. Capital spending by SMEs tends to shrink not only because of economic cycles but because of insufficient capital. If the government extends funding for SMEs that have temporary liquidity shortages or worsening profitability, it will help to enhance the growth potential of national economy, too.
By helping to improve conditions for SMEs to raise funds from direct financing sources, the government will be able to enhance their access to the direct financing market so that they can use it more frequently as a funding source.
[ KDB Research Report, February 2013, published by Korea Development Bank ]
www.koreafocus.or.kr
South Koreans’ Increasing Awareness of the Need for Unification Lee Yong-hwa Senior Researcher, Hyundai Research Institute
Hong Soon-jick Senior Research Fellow, Hyundai Research Institute
I. Overview
Despite a slowdown in public debate on unification amid the ongoing tense relations between South and North Korea, it is a task that must be completed for the Korean nation to restore its identity in the global community.
Unification will also help South Korea realize its growth potential and North Korea recover its economy. In the South, it will contribute significantly to creating new engines of growth by boosting domestic business, easing the problems of low birth rate and population aging, implementing a complementary readjustment of production and industrial structure, and fostering a Northeast Asian hub. In the North, unification will help alleviate chronic shortages of food, energy and hard currency.
In her inaugural address, March 1 Independence Movement Day speech, and remarks at the Unification Ministry earlier this year, President Park Geun-hye stressed the need to lay the groundwork for opening a “happy period of unification” through trust building on the Korean peninsula. For this, the government renamed the Inter-Korean Cooperation Fund Act the “InterKorean Cooperation and Unification Fund Act.”
Meanwhile, the government is establishing a cooperative network of domestic and overseas think tanks concerned about Korean unification and North Korean affairs, and developing educational content to raise the public’s awareness of unification. The Hyundai Research Institute surveyed South Koreans’ views on unification from October 23 to November 4, 2013. Telephone interviews were done with 814 ordinary citizens aged 19 or more, and questionnaires were sent to 105 experts. The experts included researchers and professors specializing in unification, foreign affairs and national security, and the heads of businesses operating at the interKorean Kaesong Industrial Complex. The maximum sampling error was estimated to be plus or minus
3.08 percent at a 95 percent confidence level.
II. Survey Results
1. Perceptions of Unification
The poll showed that South Koreans are tired of hearing government statements about the benefits of unification, results of research on unification at home and abroad, and the prolonged tense relations between the two Koreas. However, most ordinary citizens and all experts recognized the need for unification, with experts showing a much higher ratio of approval than ordinary citizens.
The percentage of affirmative responses increased about 5 percentage points, compared with a similar poll in 2012. The younger the respondents, the lower the belief that unification is needed (66.8 percent among those in their 20s, 74.9 percent among those in their 30s, 84.6 percent among those in their 40s, and 84.2 percent among those in their 50s and older).
Both ordinary citizens and experts had a positive view of the benefits of unification. Asked if they believed unification would be in the national interest, the majority of ordinary citizens and an absolute majority of experts answered affirmatively. The ratio of affirmative responses increased in both groups, compared with a similar survey in 2011.
Among the ordinary citizens, relatively high ratios of affirmative responses were made by men (76.5 percent), those in their 40s (74.4), white-collar workers (73.3) and progressives (74.3).
2. Type and Timing of Unification
Most respondents preferred a complete political and economic unity, while predicting it will take more than 11 years to achieve unification in such a manner. • Type of Unification: Compared to previous years, both ordinary citizens and experts took a “positive view of unification,” envisioning “complete unification.” The largest proportions of both groups advocated “a completely unified nation” in political and economic terms. Especially, the proportion of ordinary citizens who preferred a “positive view of unification,” envisioning “complete unification of the nation,” consistently increased, while that of those who held a “passive view of unification,” envisaging “free travel between the two Koreas” or “status quo maintenance,” decreased. The proportion of experts who preferred a “positive view of unification,” envisioning “complete unification of the nation,” rose, while that of those who held a “passive view of unification,” envisaging “one country, two systems,” declined.
• Timing of Unification: Almost no experts believed that unification is impossible. But about 20 percent of ordinary citizens did. The majority of both ordinary citizens and experts predicted that it will take more than 11 years to achieve unification. Experts tended to expect unification will require more time than ordinary citizens.
Among the ordinary citizens, relatively high ratios of men (58.5 percent), those in their 30s (65.6) and students (74.1) picked ”more than 11 years.”
3. Cost of Unification
A larger percentage of people, especially ordinary citizens, showed positive attitudes toward bearing unification costs. In case of ordinary citizens, the proportion of respondents who would bear “less than 10,000 won a year” decreased, while that of those who would bear “more than 110,000 won a year” increased by 12.0 percentage points, compared to 2010. Especially, the proportions of citizens who “don’t want” to pay any amount and who would bear only “10,000 won a year” has decreased to 51.9 percent in 2013 from 72.1 percent in 2010.
Nonetheless, the percentage of ordinary citizens who were willing to pay a large amount (more than 110,000 won a year) stood at 15.2 percent, still far lower than 66.7 percent of experts. Among the experts, the percentage of respondents who were willing to bear “more than 110,000 won a year,” decreased to 43.1 percent in 2011 (after North Korea's shelling Yeonpyeong Island on November 23, 2010), down 31.3 percentage points from 74.4 percent in 2010 (before the shelling). But it rose to 66.7 percent in 2013.
This suggests that the experts were keenly aware of the need to make preparations for unification, regardless of the tension in inter-Korean relations.
4. Influence of Foreign Countries
Respondents who held a positive view of China and a negative view of the United States and Japan notably increased. The proportion of respondents who held a positive view of China increased significantly, while that of those who took a negative view of the country dropped drastically.
Proportions of both ordinary citizens and experts who considered China the second most influential country after the United States that will help Korea’s unification increased significantly. (The proportion of ordinary citizens increased 8.9 percentage points and that of experts 16.4 percentage points in 2013, compared to 2012.) The percentage of experts who held a positive view of the United States dropped 16.7 percentage points, and those who took a negative view rose 15.4 percentage points.
In particular, the percentage of ordinary citizens who took a negative view of Japan more than doubled. This suggests that diplomatic friction between Korea and Japan over the territorial issue surrounding Dokdo island and the latter’s distortion of history has had negative effects on general citizens.
III. HRI Peace Index for the Fourth Quarter of 2013
The Hyundai Research Institute Peace Index for the third quarter shows that inter-Korean relations “remained tense” despite the reopening of the Kaesong Industrial Complex. The expectations index for the fourth quarter fell slightly due to North Korea’s indefinite postponement of reunions of families separated by the Korean War. • HRI Peace Index: The HRI Peace Index stood at 33.9 for the third quarter, showing that inter-Korean relations still “remained tense.” The index was 30.8 during the second quarter in the wake of the suspension of the Kaesong Industrial Complex, but slightly rose to 33.9 after the joint industrial park reopened, up 3.1 points quarter-on-quarter. • Expectations Index for the Fourth Quarter: The HRI Peace Index in the fourth quarter had another slight quarter-on-quarter drop. But it seems likely that the current state of “coexistence of cooperation and confrontation” will continue. The expectations index for the fourth quarter of 2013 stood at 44.1, down 2.6 points from the third quarter. But the situation is slightly less gloomy than when the operations of the Kaesong industrial park were suspended. The downward spiral was curbed by North Korea’s recent announcements of economic reform policies and moves by surrounding countries to resume the six-party nuclear disarmament talks. But
experts seemed to have been influenced negatively by the lack of proactive efforts that could improve inter-Korean relations, including resumption of family reunions and easing of restrictions on travel, communications and customs for the Kaesong industrial park.
• Review: With the reopening of the Kaesong industrial park as momentum, both the expert review index and the quantitative analysis index rose slightly. But the quantitative analysis index for 2013 turned out to be lower than in previous years. 1) Expert Review Index (32.8 in the second quarter → 36.7 in the third quarter, 2013)
In a survey of 105 experts, a large proportion of respondents took a slightly favorable view of interKorean relations than in the previous quarter. The expert review index for the third quarter rose by 3.9 points to 36.7, hitting a two-year high since the third quarter of 2011.
This suggests that the experts were influenced positively by the reopening of the Kaesong industrial park and North Korea’s recent announcement of a “new economic policy” focusing on developing special economic zones to open up doors to the outside and lure more foreign investment. 2) Quantitative Analysis Index (28.8 in the second quarter → 31.0 in the third quarter, 2013)
The quantitative analysis index rose, showing that there was some improvement in the inter-Korean relations. A slight increase in the quantitative analysis index for the third quarter was attributed to a significant rise in political and military “event indices,” despite a drastic reduction in inter-Korean economic cooperation in the wake of the suspension of the Kaesong industrial park.
But the quantitative analysis index for the third quarter of 2013 was lower than those after North Korea’s sinking of the Navy corvette Cheonan (34.4), shelling of Yeonpyeong Island (34.5), and third nuclear test (39.9).
① Event Index (29.9 in the second quarter → 46.5 in the third quarter, 2013)
The event index stood at 46.5 in the third quarter, up 16.6 points from the second quarter, showing that there was a significant improvement in inter-Korean political and military relations. This suggests that positive influence was brought about by the efforts of both sides to normalize the Kaesong industrial park, North Korea’s enactment of the economic development zone law aimed at expanding special economic zones, and a North Korean female soccer team’s visit to South Korea to participate in the EAFF Women’s East Asian Cup for the first time in eight years. ② Exchange Index (27.7 in the second quarter → 15.4 in the third quarter, 2013)
The exchange index reached 15.4 in the third quarter, down 12.3 points quarter-on-quarter, hitting a record low since 2010. The large drop was attributed to a significant reduction in trade volumes between the two Koreas to the first quarter level in the wake of the suspension of the Kaesong industrial park. ($220 million in the second quarter → $52 million in the third quarter)
• Analysis by Political Inclination: Regardless of their political inclination, experts took a more positive view of inter-Korean relations in the third quarter than in the previous quarter. This level of evaluation will likely be maintained, despite a slight drop in the index.
The expert review indices for the third quarter by political inclination were 35.0 for conservatives, 39.5 for moderates and 35.1 for progressives, respectively, up 3.0, 2.4 and 7.0 points quarter-onquarter, showing a somewhat positive trend. Experts perceived a slight improvement in the current inter-Korean relations compared to the previous quarter, with progressive experts holding a more favorable view.
As for the prospect for the fourth quarter, the conservative expert index dropped rather sharply, while the moderate and progressive expert indices remained stagnant or fell slightly. The
conservative experts’ expectations index for the next quarter dropped by 8.4 points to 41.5, a little lower than the moderate and progressive expert indices (47.2 and 42.5).
This suggests that despite the reopening of the Kaesong industrial park, the restrictions on travel, communications and customs have not been eased yet and there even was no attempt to start talks on resuming family reunions.
[Appendix 1] Outline of the HRI Peace Index
The HRI Peace Index refers to a quantitative indicator of the level of peace on the Korean peninsula, centering on inter-Korean relations. It is a comprehensive indicator based on both subjective and objective analyses, consisting of the “expert review index” and the “quantitative analysis index.”
The expert review index is based on a quarterly survey of experts. It also measures the “expectations index” based on outlooks for the next quarter. The quantitative analysis index consists of the “event index” in the political and military sectors and the “exchange index” in the social, cultural and humanitarian sectors.
The index is measured on a scale of 0 to 100, with 50 being the mean value. The figure 0 means a state of war between the two Koreas, while 100 indicates the most peaceful situation.
[Appendix 2] Major Exchange Index Variables
[Appendix 3] Poll of Experts on Inter-Korean Relations â–Ą Outline
- Period: 13 days from October 23 to November 4, 2013 - Method: A questionnaire survey - Targets: A total of 105 experts on unification, foreign affairs and national security, including
researchers, professors and CEOs of businesses operating at the Kaesong Industrial Complex - Sampling error: A maximum sampling error of plus or minus 3.08 percent at a 95 percent confidence level â–Ą Questionnaire
1. Political and Military Relations
2. Economic Relations
3. Social, Cultural and Humanitarian Relations
[ VIP Report, No. 538, November 18, 2013, published by Hyundai Research Institute ]
www.koreafocus.or.kr
- Google to Promote Hangeul
Google to Promote Hangeul
Chae Min-gi Staff Reporter The Chosun Ilbo
“The Korean script is one of the key reasons why Korea’s digital technology has done so well,” said Google Executive Chairman Eric Schmidt, 58, at a press conference held at the National Hangeul Museum in Yongsan-gu, Seoul, on October 30. The museum is scheduled to open in 2014. The Google boss promised that his company will be part of the effort to spread Hangeul and Korean culture worldwide via the company’s online services. “Hangeul is one of the world’s most intuitive alphabets,” Schmidt said. “What amazed me is the fact that as far back as 600 years ago the ruling class in Korea made it easier to organize information by systematizing the language and letters used by ordinary people.”
Google and the Korean Ministry of Culture, Sports and Tourism reached an agreement in 2011 to jointly foster culture and the content industry. The two parties announced their new plan as well as the outcomes of their joint projects over the past two years at the press conference. Schmidt continued, “It is a pleasure for me to participate in making Korean culture accessible to the rest of the world. I have learned how to do the ‘Gangnam Style’ horse dance. A lot of people who didn’t know anything about Korea until they started to like K-pop want to know more about where it comes from. We can assume that if only 1 percent of those who enjoyed ‘Gangnam Style’ really come
to think about learning about Korea, it would equal 18 million people.”
As part of its plans to spread Korean culture in the global community, Google will cooperate with the National Hangeul Museum to create content for future exhibitions at the museum in the compound of the National Museum of Korea. The global tech giant plans to help the development of a webbased program to teach the basic principles of the Korean writing system. It will also support the development of Hangeul-learning educational facilities targeting foreigners.
The cooperation agreement includes a plan to promote Korean culture through the Google Cultural Institute, which digitizes data about the world’s cultural heritages for online availability around the world. The institute features the Google Art Project, which provides online access to artworks from partner museums around the world, and Historic Moments, which exhibits photos and videos related to significant moments in human history.
The Korean Art Museum Association and the National Museum of Korea are involved in the Art Project, providing artifacts for the online services. Starting from October 30, the Google Art Project introduces 4,000 pieces of artwork provided by the Korea Database Agency. Historic Moments will also expand the coverage to feature the history of Korean film, hanok, traditional Korean housing, and hanbok, traditional clothing. “Anyone who has interest in Korean culture can visit this online museum,” Schmidt said. During the press conference, Chairman Schmidt and Culture, Sports and Tourism Minister Yoo Jin-ryong wrote a few words in Hangeul on hanji, traditional handmade Korean paper. Minister Yoo wrote “Hangeul” and Chairman Schmidt wrote “Love.” That same afternoon, Schmidt attended the “Big Tent” event, a global conference organized by Google at Platoon Kunsthalle in Seoul. At the conference he recalled his visit to North Korea in January. He said that Internet access is very limited throughout North Korea. “North Koreans are not allowed to use the Internet without somebody else watching them, if at all. They should be allowed to get access to the Internet,” he said As for ways to promote Korean culture, the Google boss suggested, “First, as many cultural contents should be secured as possible. I hope the Korean government will try to foster an environment where individuals are inspired to be creative, rather than regulate online content.”
[ October 31, 2013 ]
www.koreafocus.or.kr
- Why Do Koreans Say ‘Keep Working Hard’? - Poems by 50 North Korean Poets and Criticism
Why Do Koreans Say ‘Keep Working Hard’?
Park Hun-sang Staff Reporter The Dong-A Ilbo
“Who Are Koreans?” By Kim Mun-jo et al., 21st Century Books, 564 pages, 28,000 won With the words “I am so busy” practically hanging out of their mouths, Koreans are known as workaholics. According to Professor Yu Seung-ho of the Department of Visual Culture at Kangwon National University, a workaholic is someone who feels obligated by something or someone to undertake certain work, not necessarily someone who voluntarily decides to work on something. The state of “being addicted to work” may seem affirmative because you are engaged in something, but “addiction by work” may destroy your body and mind. The expression “sugo haseyo,” which literally means “keep working hard,” used by colleagues is unique to the Korean language. In a similar situation, people in English-speaking countries would say, “Take it easy.” In Korea, when you say “nolgo itne,” which means “not working hard,” it is meant sarcastically. If you want to take it easy, you have to do it when others are not watching.
It seems there is some truth to the analysis that Korea is a society where overworking is encouraged. It seems almost like a cliché to bring up the OECD statistics, which show Korea with the highest number of work hours annually but with labor productivity lower than many others. Professor Yu
summarizes the seriousness in two sentences. “Many men suffer from impotence or premature ejaculation, but few men commit suicide because of it. However, when a man is economically incapable, he oftentimes feels socially alienated. Due to feelings of disappointment and frustration toward oneself, he may become depressed or commit suicide.”
The Social Mental Health Institute of Samsung Medical Center has studied the identity of Koreans since 2005, and it planned to publish a book on the research. Professor Kim Mun-jo of the Department of Sociology at Korea University served as chief editor and advisors from various fields selected 38 themes and professors who were best qualified to write about them. The writing was done in layman terms for the general public, and each theme is no longer than 5 to 10 pages.
The book provides answers to the questions asked by contemporary Koreans. To the question of “Until when should parents be responsible for their children?” Professor Hwang Mae-hyang of the Department of Education at Kyeongin National University of Education pointed out that traditional and contemporary values have been mixed creating confusion among parents. The working mother does not require her children do household chores, so a daughter feels no need to hurry into marriage because it is easier for her to have her mother cook and clean for her. The father who is regarded as a money-earning machine is anxious because he is afraid he might become a failed father as soon as he loses his source of income.
Professor Kim Gye-hyeon of the Department of Education at Seoul National University said that Koreans prefer civil service as an occupation, and commented: “The children are the players, not the parents. Players take into account the advice given by the coach or the caddy, but at the end it is up to them, especially when they are playing sports called profession, to which they dedicate their whole life.”
The finished mosaic of 38 themes shows the true Korean self. Professor Emeritus Lee Ho-young of Ajou University’s School of Medicine said that Koreans feel no shame. In the traditional Confucian society of Korea, shame was considered to underlie every thought and action of man. However, in present times, shame is put on the backburner because it only gets in the way of people who have to succeed no matter what the cost. Adults and children alike know no shame. Adults have no qualms about doing embarrassing things so long as they can climb up the ladder to success, and children grow up as unhealthy narcissists because they are never told no.
Professor Kim Mun-jo drew three axes in the “Map of the Various Heart” and plotted Korean at the intersection. 1) “Birds of a feather” ― relationships matter; 2) “Speed” ― only now matters; 3) “More is beautiful” ― constant need for compensation. In sum, people who are close want to lead a blissful life together. Wishing for the supreme good is forever on the minds of the Koreans.
The book deals with almost all topics, including power, empathy, regional sentiment, childbirth, marriage, death, work, religion, private education, happiness, lookism, etc. Recent statistics, live examples, insightful analysis and criticism add to the fun reading. Reading the book feels like looking at one’s reflection in the mirror. You acknowledge familiar features staring back at you, but sometimes you tilt your head to the side wondering if it is really you. But if you look hard enough, there is a brief moment in which you can recognize the Korean identity as clear as ice.
[ November 9, 2013 ]
www.koreafocus.or.kr
Poems by 50 North Korean Poets and Criticism
Choi Jae-bong Staff Reporter The Hankyoreh
“Study of North Korean Poetry” (Volumes 1-6) By Lee Sang-suk et al., Somyong Publishing Co., Each volume 42,000-89,000 won “Traces of detached observation still remain in this piece that we used to sense in his earlier works. However, the poet is breaking out of his previous shell of the introverted thinker and expanding his realistic penetration into reality. Nonetheless, poet Ri Yong-ak (1914-1971) was not able to enter the world of the socialistic realist writer until 1945 when Korea was liberated from the Japanese colonial rule.” Such was the criticism provided by North Korean critic Kim U-chol on poet Ri’s trademark poem “Old House,” published in 1938. We can see that the critic drew a line between critical realism and socialist realism, and positioned the poem in the early stage of Ri’s literary life where he still had some growing up to do.
The works of 50 well-known North Korean poets and critical reviews of them have been collected and published. They include Paek Sok, Ri Yong-ak and Pak Pal-yang, who lived in North Korea or who had defected and are now dead. Surviving North Korean poets such as Tong Gi-chun, O Se-yong and Ryom Hyong-mi are also included. The six-volume book (each volume is about 1,000 pages long)
was written and edited by North Korean literature experts, including Professor Lee Sang-suk of the College of Global Humanities at Gachon University.
The first two volumes include the poems and criticism. The middle two contain significant critical articles about North Korean poetry as well as documents such as the platform of the General Federation of Korean Literature and Arts Unions, regulations of the Korean Writers’ Alliance, and “Times and Artistic Perspectives” from Kim Jong-il’s “Theory of Juche Literature.” Volume 5 is composed of writings about North Korea’s history of prose, and the last volume contains dissertations written by the researchers who participated in the project. In her article, titled “North Korean Writers and the Korean Writers’ Alliance,” in Volume 6, North Korean defector poet Choi Jin-i wrote that North Korean writers are suffering much in political shackles. She mentioned that politics controlling literature and solely enjoying the benefits of literature is killing literature altogether.
[ November 11, 2013 ]
www.koreafocus.or.kr
- Chung Kyung-wha: ‘When I laid down the bow, the sound came to me.’
Chung Kyung-wha: ‘When I laid down the bow, the sound came to me.’
Kim Sin-yeong Staff Reporter The Chosun Ilbo
♦ Queen of the Violin The bow stopped. The audience flinched. With fire in her eyes, Korean violinist Chung Kyung-wha, 65, performing at the National Center for the Performing Arts in Beijing on October 18, glared at the audience. The violin virtuoso had stopped mid-performance because of distracting noises in the theater ― cell phones, footsteps and the like. This happened five seconds into her performance of Beethoven’s Violin Sonata No. 5 “Spring.” Chung stood on stage looking sharply around the theater for a minute before giving piano accompanist Kevin Kenner the signal to start again from the beginning.
As I waited at her hotel for our interview, I was a little nervous for it was the morning after this particular incident. Stopping a performance for whatever reason could not be a pleasant thing for the artist. I was worried that she would be very much on edge. Chung has always been famous for being a perfectionist. In fact she was often infamous. When she was young, if she wasn’t satisfied with her playing she would go out into the hallway and bash her head against the wall or roll around on the floor backstage.
Chung entered the lobby lounge at exactly 10 a.m. as promised. Her short hair, dyed reddish brown, was a little messed up. When I greeted her, she flashed a smile. “You saw it, didn’t you? Yesterday…when I stopped playing,” she said. “The atmosphere [inside the concert hall] was too distracting and I wanted to put it right. And it worked! Ha. Ha.”
This now aging genius looked amiable and at ease. The cold, sharp and intimidating Chung Kyungwha of the night before who bulldozed everyone around her was not apparent. When she mentioned her pet dogs, her eyes lit up as if she was bragging about a boyfriend. When she talked about her sons she was just like any other doting Korean mother. She was in the middle of an Asian tour that covered four cities in Japan, seven cities in China and four cities at home in Korea. The tour is a kind of announcement to the world that Chung Kyung-wha is back on the stage again after a five-year absence due to a finger injury in 2005. Chung is Korea’s first true “world star.” She made her name known around the world back in 1967 when she shared first prize in the prestigious Leventritt Competition with Pinchas Zukerman. Over the past 40 some years since then, she has been a star performer on the international scene. “The time I spent away from the stage was nice and free. Look at this. I don’t think I’ll ever be able to grow my hair long again,” she said as she rumpled her hair with her pale fingers. That time during which she laid down the violin ― what did it give and what did it take from this woman who has been called “a violin wizard?”
♦ ‘Ah…I was good, ferociously good.’ When we had settled in for the interview, Chung suddenly said, “I have a lot of questions I want to ask you.” From the very first question, dealing with them proved to be rather an ordeal: “How was the sound yesterday?” “It sounded a bit soft to me…” I answered. Chung looked surprised. “Really? The first movement of Cesar Franck’s Violin Sonata ends suddenly with that soft sound. Did you hear it?” “I think so,” I mumbled. “What did you think of my dress?” “How did ‘Love’s Greeting’ sound?” “Don’t you think the Chinese audiences are the least responsive to Mozart?” … After rapidly shooting questions at me regarding the previous night’s performance, she said, “Okay! What are your questions?” Q. Stopping the performance for a moment ― didn’t that bother you all night?
A. The sound of the ventilator was so loud, and everyone in the audience seemed to be fidgeting…I couldn’t continue. I wondered “How am I going to fix this?” So as soon as I started, I dragged the bow down and stopped all of a sudden. In the past, in the same situation I would have caused a fuss and almost fainted from anger. But this time I just thought, “Hmm…this won’t do.” So I stopped. But the point is that I focused on the piece again and was able to finish in a good mood. I was fine. Q. Does this mean you’ve become mellow?
A. In the past five years when I had to take a break from playing the violin, I looked back on my life and sorted things out in my own fashion. I believe in God, so I thought “Why is he putting me through this ordeal?” and countless times I returned to the words of my mother (Lee Won-suk passed away in 2011) who used to say, “Calamity turns to good fortune.” In the past I was always chasing something but afraid of losing sight of it. But when I stopped tormenting myself in that way, I found peace of mind.
Q. How did you hurt yourself so seriously that you had to stop playing for five years?
A. In 2005, when I was preparing for a performance, the muscles in my second finger began to hurt. I had to play so I went to the doctor’s and had a cortisone (a type of painkiller) injection, and that’s where the trouble started. My finger didn’t hurt so I played, but that strained the muscles and they were completely damaged. I had been under treatment for a long time for hepatitis C, and my constitution had changed a lot. On top of that I had an injection, so my finger (muscles) gave way. Q. You didn’t have your fingers insured? A. Ah…I’m not interested in that sort of thing. If anyone mentioned that kind of insurance in front of our mother, she would say, “You’re protected by God. What do you need insurance for?” I don’t prepare for the future. I tend to take life as it comes.
The violin is played by pressing down on the strings with four fingers, minus the thumb. The second finger plays the most important role. For a violinist, hurting the second finger on the left hand is serious, comparable to figure skater Kim Yuna hurting her Achilles heel. “I was 57 at the time. Not young,” Chung recalled. “I came to terms with the idea that I might never be able to play again.” With this unexpected injury, Chung turned to teaching. Here was another life altogether, and sometimes she took on as many as 10 students at a time at Juilliard in New York. When about three years had
passed, her second finger began to move a little. After practicing awhile, Chung made a cautious return to the stage in 2010, playing the Brahms Concerto with the British Philharmonic Orchestra, which came to perform in Seoul. Before her official “comeback” on November 8 at the Seoul Arts Center this year, she appeared in the Daegwallyeong International Music Festival and in occasional recitals big and small. From the time she first started playing again in 2010 until now can be seen as a “warm-up” period. It seems Chung has resolved to show in her upcoming performance that she is truly back in form. In a recent interview, her younger brother Chung Myung-whun (artistic director of the Seoul Philharmonic Orchestra) said, “My sister never left the stage.” When I mentioned this, however, she raised her voice as she said, “What is he talking about? I completely retired then!”
Q. You never announced your retirement.
A. I injured my finger and was no longer able to play the violin. Did I need to make an announcement? In my mind I had completely retired.
Q. What was it like to put down the violin for five years?
A. When I thought I would never perform again I was able to listen to my past recordings with an empty mind. Before then I had never even looked at my albums. There were always parts that I didn’t like. Those parts were irritating and made me flinch. But when I started teaching I found that I had to listen to my albums. As I had hurt my finger, I was not able to demonstrate anything for my students. So I played them my albums and taught them that way.
Q. What was it like to hear your own recordings? A. I thought, “Wow! I was good, ferociously good.” Especially in the case of the William Walton Concerto, I put my whole heart and soul into the performance. So when I hear it again, it’s fantastic.
At the height of talking about her past albums, Chung suddenly slumped back against the couch and caught her breath. “I’m too tired,” she said, in English. “It’s tiring to praise my own performance.” She then asked for a glass of water, but without drinking it she suddenly said, “OK. Next question!”
♦ ‘Life is something you should learn with your whole being.’
While her bow was down, Chung Kyung-wha lost several people close to her. Her eldest sister among seven siblings, flutist Chung Myung-so who took the 12-year Chung Kyung-wha to study at Juilliard, passed away in 2007, and her mother, her spiritual prop, followed in 2011. Christopher Raeburn, who produced her albums, also died in 2007. “The people I loved and respected most passed away one after another,” Chung said. “They say when you have a baby all you seem to notice is other nappychanging mothers. When you grow old, all you can see are the people who pass away.”
Q. You experienced a lot of sadness all at the same time.
A. From those deaths, I learned that life is something that you learn with your whole being. No matter how much a smart person learns with the head, it can’t compare to the things you learn by experience. People have to learn things by experiencing them for themselves. Music is something that comes out of the body, so it has to be experienced and felt again and again. Of course, it would be different for a mathematician. I think a lot about the German composer Johannes Brahms. He liked to travel and lived among the ordinary people. His beautiful music emerged from such a life.
Chung Kyung-wha lives in Gugi-dong, Seoul, with her two dogs named Johannes after Brahms, and Clara for Clara Schumann, the pianist and wife of Robert Schumann, whom Brahms loved all his life. As she boasted of her dogs, Chung naturally moved onto a topic “more important than the violin ― her two sons. In 1984 she married a British businessman. She has two sons, whose Korean names are Jae-gon and Yu-jin (Frederick and Eugene, respectively). Her eldest son works at Citigroup and her second son, who majored in computer science, works at Google. Both live in the United States and Chung shuttles between her homes in Seoul and New York. “I’ve arranged to spend the year-end season with my younger son,” she said happily.
Q. Are you disappointed that your sons are not musicians? A. Disappointed! You don’t know how happy they are. My eldest son actually played the violin and even entered Juilliard. But within three months he realized “This isn’t right for me” and quit. Jae-gon has great musical talent. But his hands sweat heavily. So when he decided that he couldn’t continue he quit without thinking twice. How unbelievably smart is that! Ha. Ha. During the interview Chung peppered her conversation with the words “unbelievable” and “great,” an indication of the passion with which she speaks. At the same time, she lamented her lack of stamina
these days: “I can feel the energy draining away from me.”
Q. When do you feel that your energy is failing? A. Oh…If you were 65, you wouldn’t ask such a question! When you’re this age, you just don’t have the same strength as you used to. Chinese newspaper articles put my age at 63. Perhaps they thought 65 was just too gruesome and cut my age down for me. When I saw the number 63 in the newspaper I groaned before I realized what I was doing. “Ugh! Why is this old lady holding a concert?” That’s what I would think if I were somebody else. That’s probably what the Korean audience will be thinking when they come to my concert at the Seoul Arts Center. “Let’s see how much this old lady can do,” they’ll be saying to themselves. Q. Are you afraid that they’ll say you’re not as good as you used to be? A. I’ve always said that I’ll quit when I pass my peak. I still think the same way. At first I couldn’t imagine performing again. So I felt as if I was living in a dream. For me, this is the moment I am at my peak. When I began performing with Kevin Kenner in 2011, I thought to myself, “At this age, can I continue for another three years?” But already, those three years are almost over.
Q. Has Chung Kyung-wha the perfectionist, the person who would bash her head against the wall, disappeared? A. In the time I was resting due to my finger injury, I came to the realization that “all people are destined to lose their way.” I regret that I didn’t keep going, even if I wasn’t sure where I was headed. Now that I look back, all the things that I regret in life are the things that I didn’t do. The things I backed away from for fear of making a mistake.
Q. Do geniuses lose their way too? A. When I say “lose the way,” I don’t mean just getting lost but wandering about in search of something. There are times when you take the wrong path and run this way and that. I can’t begin to tell you how much I fumbled around when I was so intense on finding the right instrument. My body couldn’t keep up with my head, so I took an overly timid attitude to life. But when I found that I couldn’t move my hand properly I concluded, “It’s better to forge ahead even if you get lost, rather than hesitating in pursuit of perfection.” When you can move, that is.
Q. What are you searching for now?
A. These days I love to hear the middle tone. Sounds close to the human voice. I wonder if the middle tone isn’t the most beautiful. So I’ve taken up the viola, which produces this sound. Our mother always said, “Be faithful to what you’re doing now and keep your eyes on the next goal.” When I retire from playing the violin, I hope to play chamber music on the viola. Chung then said, “Ah, there’s one thing I’d like to proclaim in this article. The acoustics in Korean concert halls falls far behind global standards. While I am living I will strive to see a concert hall built in Korea that anyone would be unbelievably envious of. Anyone willing to help me, please contact me right away!”
♦ ‘When the self-punishment stopped, the sound came.’
Chung Kyung-wha started to make her proper comeback in 2011 when she took the role of artistic director of the Daegwallyeong International Music Festival with her cellist sister Chung Myung-wha. It was at the festival that she met her current piano accompanist Kevin Kenner, whom she calls “an angel who fell out of the sky.” The American pianist, winner of the top prize at the International Chopin Competition and the bronze medal at the International Tchaikovsky Competition, readily agreed when Chung suggested they perform together, saying, “It’s an honor.” “The aspiration to work on more chamber music pieces with Kevin is what keeps me going these days,” Chung said.
Q. Does this mean the pianist Kevin Kenner brought violinist Chung Kyung-wha back to life? A. I’ve had great difficulty performing chamber music duets with pianists. The pianists I wanted to work with were not generous with their time. And it’s so hard to deal with their egos. Their obstinacy! Their egos! You have no idea until you have to deal with it. Radu Lupu, Krystian Zimerman, Stephan Kovacevich… These great pianists gave me a tiny bit of their time and expected me to be grateful. I am no easy character myself, so any project with these pianists never lasted very long. And then I met Kevin. It’s only natural that I feel energized.
Q. What do you like so much about him?
A. He produces an unbelievable sound. When I first heard him play Chopin at the Daegwallyeong festival I was astounded that a human being could produce such music. In yesterday’s concert, you know how Cesar Franck’s first movement ends suddenly with that soft sound? Some of the great pianists can’t do that, which irritates them. But Kevin can make the sound just disappear like that every single time. It’s unbelievable.
Q. Does it take the ability to make small sounds to be a great musician? A. The greatest high tone is the kind where you ask, “Where is that small sound coming from?” I first realized this while watching Karajan conducting the Berlin Philharmonic Orchestra (in October 1982). I was sitting in the Carnegie Hall in New York to listen to Richard Strauss’s “Alpine Symphony” when a hissing sound came from the building next door. I looked around. Then I suddenly felt humbled. Karajan had been making that barely discernable sound from the stage. Just like Karajan!
Q. Have you reached that level? A. In the past I could hear that sound in my head but couldn’t produce it physically, which agonized me. My bow shook and my heart went thump, thump… I felt as if I would faint. But when I stopped obsessing over the sound and stopped punishing myself, that sound came to me unwittingly. You could say my body learned how to make the right sound.
♦ ‘Pain is forgotten, making it possible to go on.’
As 11:30 a.m. drew close, Chung was reminded she had to leave for the airport. She had a concert scheduled three days later in Shenzhen, China, and had to be on the move. “What?” she said. “Not yet. Get my luggage and meet me in the lobby. Just leave the violin.” Then turning to me she said, “All right, continue.”
Q. Is there anyone you envy?
A. Writers. I really envy people who write literature. If I were to be born again, I would like to be a writer, or work in some related area. Look at Tolstoy’s “Anna Karenina,” the way each and every character is vividly portrayed and loaded with symbolism. And Shakespeare! It’s hard to understand how a genius capable of producing such unbelievably wonderful tragedies and comedies was born on this earth.
Q. Who is the musician you most admire?
A. If I had to choose just one musician in the whole world, I would choose Bach. I am so grateful that Bach’s most unbelievable masterpieces were composed for the violin. I mean Partita No. 2, Chaconne. Q. You played Bach in memory of your parents when they passed away, didn’t you?
A. When my father died in 1980, everyone kept telling me to play something in his memory. But I didn’t want to play in front of everyone, so I told them all to leave. And in the funeral parlor, alone with my father, I played Bach’s “Aria on the G String.” For a long time afterwards I was unable to play it again. Then 10 years later, back in Korea, I performed it once more. And I played the same aria again when my mother died. What’s really amazing is that human beings forget the pain. That’s how we keep on going. Q. You once used the phrase “ten thousand percent effort” in describing your younger brother Chung Myun-whun. What about yourself? A. Me? There’s no way I can compare with him. You can interpret that as you see fit.
Q. What is your definition of art? A. Art is… The power of art comes from intuition. It is on another plane altogether. It is the “play of
the spirit” that actually comes from an enormous amount of training. After giving this rather inscrutable answer, Chung Kyung-wha looked at her watch. “I’m going now,” she said, and disappeared like a spirit.
♦ The Guaneri Violin
The instrument used by Chung Kyung-wha, queen of the violin, is a 1735 Guaneri del Gesu. It is a masterpiece previously used by violin greats Jan Kubelik and Michael Rabin, and in the musical world is commonly called the Kubelik Guaneri. Fewer than 200 violins made by the Italian artisan Giuseppe Guarneri in the early 18th century are known to exist around the world today. Of them, only 20 are actually used in performances.
In 1967 Chung first purchased a Stradivarius, the other prestige name in violins, and in 1973 when she turned 25, she purchased the Guarneri, which she has used ever since. At the time of purchase the Guarneri cost around $250,000. Chung went into debt to buy the instrument and took 10 years to pay it off. Having spent so much on her violin she had to save money in other areas, so she only stayed in cheap hotels and if anyone saw her she would run away saying, “I’m not Chung Kyung-wha.” “When I was young I was attracted to a high tone instrument, and then I came to prefer a low tone, which the Guarneri produced,” she said. “I was also attracted by Guarneri’s deep faith and character, as betrayed by the del Gesu attached to his name.” Literally meaning “of Jesus,” del Gesu was not only attached to Guarneri’s name, it was also engraved on his violins with a cross. The current going price for Chung’s Guarneri violin is hard to estimate, but it is sure to have jumped many times in value since Chung purchased it. The Guarneri purchased in England early this year by an anonymous patron of the arts, now on exclusive lifetime loan to the American violinist Anne Akiko Meyers, is said to have cost at least 9.8 million pounds.
[ November 2, 2013 ]
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