Text Fwd: Cut trade causes crisis for businesses in S.Korea

Hankyoreh
Cut trade causes crisis for businesses in S.Korea Following an indefinite trade cut with N.Korea without a grace period, the government has not proposed any compensation to assist the hundreds of businesses affected
Posted on : May.26,2010 12:18 KST

CEOs companies engaged in trade and economic cooperation with North Korea attend a briefing session on inter-Korean relations at the Central Government Complex in Seoul, May 25.

“I do not know if these sanctions are targeting North Korea or South Korean businesses. They are strangling the small and medium-sized companies.”

Businesses commissioned for inter-Korean processing and trade were up in arms Tuesday following President Lee Myung-bak’s announcement of plans to halt inter-Korean trade in response to the sinking of the Cheonan. The companies charged that the government’s measures “are killing South Korean businesses, not North Korea.” With the government’s focus lying solely on punishing North Korea, the abrupt announcement gave no time for small and mid-sized companies to prepare a retreat, and despite what is effectively a compulsory measure, almost no government compensation plan has been put in place.

Following a Unification Ministry-led talk Tuesday with 14 representives in areas related to trade and economic cooperation with North Korea, presided over Vice Minister Um Jong-sik, the Unification Ministry announced that it had opened a “counseling center” to get a better grasp on the damages and difficulties suffered by businesses in the wake of the suspension.

However, it was also confirmed that on Monday, the ministry had already given notification to the Korea Customs Service in Incheon not to clear any products being brought in from North Korea. As a result, observers are predicting that finished products from processing companies that were scheduled to enter Incheon Harbor on Thursday via vessels affiliated with Kookyang Shipping will not be able to go through customs procedures.

“On the 24th, they issued the measure forbidding customs passage, so what is the point of having a talk with businesses on the 25th?” asked an official at a garment company commissioned for processing and trade. “It is nothing more than a show.”

Inter-Korean companies were faced with severe woes after the government blocked trade without giving any grace period.

“For the most part, the companies commissioned to do processing plan their production six to seven months in advance, so a lot of the raw materials are already in North Korea,” said an official who attended the Unification Ministry’s talk Tuesday. “If the goods that are currently being produced, or even those that are already finished, cannot go in, then it tarnishes the image not only of the businesses, but also of the company, since they are unable to deliver to the foreign contracting company, and of the state.”

Moving a production base to another country is not an easy matter for companies.

“How can you make a profit when you have to give two dollars in China for the things you process for one dollar in North Korea?” asked the president of a processing business who said he has worked with North Korea for twenty years. “The businesses that looked only to North Korea will have to shut down.”

“We cannot move our production base to China or Vietnam, since the supply plan has already been set,” said the president of another commissioned processing business. “In the end, the small businesses will collapse if they cannot take orders.”

Moreover, in the case of garment toll processing, companies have recently entered the time of year for producing fall and winter items that account for 70 percent of yearly sales. The blow is expected to be even greater for these businesses if they are unable to receive orders.

Despite all of this, the government has yet to produce any effective measures for addressing the damages to the hundreds of small and medium-sized companies involved in inter-Korean economic cooperation.

“We have paid all our taxes to the government in our trade with North Korea, so if the government has blocked us from doing business, it needs to provide due compensation,” said the president of a business engaging in toll processing in Pyongyang. “That is our right.”

Following the outcry from companies, the Unification Ministry appeared to take a step back on Tuesday. “In the interest of minimizing damages to our businesses without compromising the government’s measures against North Korea, we have decided to examine the importation of finished processed goods for North Korea on a case by case basis,” the ministry said.

With importation of North Korean farming, forestry and marine products also prohibited, analysts are predicting an inevitable rise in the price of these items due to supply difficulties. North Korean products account for a full 66.2 percent of total short-necked clam imports, as well as 35.1 percent and 21.2 percent of bracken and garlic, respectively.

Please direct questions or comments to [englishhani@hani.co.kr]
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Financial markets unstable in S.Korea following Cheonan sinking : Analysts predict continuing market instability since three issues affecting the market cannot be solved in the short-term
Posted on : May.26,2010 12:33 KST

Text Fwd: Seoul to Host G20 Summit on 'Floating Islands' on Han River

Korea Times
01-10-2010 19:32
Seoul to Host G20 Summit on 'Floating Islands' on Han River
By Kang Shin-who
Staff Reporter

A large-scale artificial island will appear next month on the Han River between the Banpo and Dongjak bridges. According to the Seoul Metropolitan Government, Sunday, a total of three islands will be completed to be used as venues for the November G20 summit.

The islands will have convention halls and will be connected to downtown Seoul. In November the capital city will host a summit of the world's leading countries.

The project is part of Seoul Mayor Oh Se-hoon's Han River Renaissance Project.

A total of 96.4 billion won will be allocated for construction organized by the city government and "Soul Flora Consortium."

One of the three, to be launched next month has 3,271 square meters of floor space.

On the artificial island, a convention hall, which can accommodate up to 376 people, will be built together with restaurants, gardens and footpaths.

"We will complete all construction by September," an official said, adding that important functions will be held before November's G20 summit so as to ensure that there are no glitches in hosting the event.

The largest island, which will be 4,737 square meters, is scheduled to open in the middle of the next month. The third and last island will accommodate parks.

The islands will be secured by anchors.

kswho@koreatimes.co.kr

Text Fwd: Poll suggests public wants the Lee administration to address increase in polarization

* Image source/caption: same as the link below

'Results from the Hankyoreh public opinion poll show that polarization (38.5 percent, dark green), political strife (23.9 percent, light green), President Lee Myung-bak’s unilateral methods of governance (19.1 percent, orange) and social conflict (13.9 percent, peach) were selected as the most pressing issues facing South Korea’s society.'

Hankyoreh
Poll suggests public wants the Lee administration to address increase in polarization:
Despite worsening household situations and a desire for greater job creation measures, President Lee’s ratings remain high
Posted on : Jan.4,2010 12:33 KST

A recent survey shows that South Koreans regard polarization as the most significant pressing issue facing our society. The results also indicate that citizens want the Lee administration to focus most of its energies in 2010 on job creation policies that increase employment security.

A public opinion poll conducted by Research Plus commissioned by the Hankyoreh shows when asked what the biggest issue facing South Korean society at the present time is some 38.5 percent of respondents selected polarization resulting from the collapse of the middle class and an increase in irregular work. Some 23.9 percent selected a distrust of politics due to political disputes, 19.1 percent chose conflict and discord attributed to President Lee Myung-bak’s unilateral governing methods, and 13.9 percent chose social conflict resulting from strikes by labor unions and other causes.

When asked which economic policies the Lee administration should emphasize most strongly in 2010, 45.9 percent of respondents chose job creation measures, including employment security, 31.8 percent chose price stability measures that includes the cost of essentials, 11.8 percent chose protections for small- and medium-sized businesses, and 7.6 percent chose tax cuts.

A significant number of citizens indicated that they believe areas such as inter-Korean relations, media freedoms, human rights and the advancement of democracy have floundered or experienced regression during the Lee administration’s first two years. In particular, a majority of respondents selected skyrocketing private education costs and deteriorating working class livelihoods as areas of concern despite the Lee administration‘s emphasis on efforts to lighten the private education burden and pursue moderate pragmatism and working class-friendly policies.

Some 53.3 percent of survey participants said that their private education burden had increased over the previous two years. Another 33.7 percent said the burden was more or less the same as before, while only 6.5 percent said it had decreased. Although President Lee has made private education expenses a major area of education policy since taking office, the survey results indicate that South Koreans are not feeling the effects of the administration’s efforts.

A large number of respondents, 43.3 percent, said that media freedoms had deteriorated, while 42.2 percent said they were similar to before, and a mere 10 percent felt they had improved. The survey results the public‘s response to the parachute appointment of the YTN president, the improper dismissal of KBS President Jung Yun-joo, and the resignation of media personality Kim Je-dong that have become symbols of the Lee administration’s approach to media policy.

When asked how they believed conflict among South Korea’s citizenry had changed, 48.2 percent of respondents said it had increased. A smaller number, 37.2 percent, said it was similar with previous levels and 11.4 percent said it had decreased.

In response to a question about the political neutrality of public prosecutors, 46.6 percent respondents found it was similar to before, 37.6 percent found it to be worse and that prosecutors are “brutal to dead power and subservient to living power.” Only 7.7 percent of respondents found an improvement in prosecutors’ political neutrality.

Other results show that South Koreans view areas such as human rights, democracy and social welfare for the poor as stagnant or in regression with no major improvements made during the two years of the Lee administration. On the item of human rights and democracy, 48.1 percent of respondents said they were roughly the same as before and 34.2 percent said they had deteriorated. On the item of social welfare benefits 34.7 percent said they were similar to previous levels and another 34.7 percent said they were worse.

Meanwhile, some 56.7 percent of respondents expressed support for President Lee’s governance, with 11.0 percent responding with “a very good job” and 45.7 percent with “a good job in general.” Analysts suggest a favorable assessment and expectations regarding the President’s management of the economy have played a large role in his approval ratings. On the issue of President Lee’s management of the economy during his two years in office, the 53.8 percent who expressed favorable views, including the 6.3 percent who said he was doing “a very good job,” and 47.4 who said a “good job in general,” had a ten percentage point margin over the 43.8 percent that expressed negative views. Around 34.2 percent said President Lee had done a “poor job in general” and 9.6 percent said he had done “very poorly.” However, when asked about improvements in household situations over the past two years, 59 percent of respondents said it was unchanged, and 34 percent said it was worse.

The nationwide telephone survey of 1,000 adults age 19 or older was conducted over a period of two days starting Dec. 29 and has a plus or minus 3.1 percent margin of error with a 95 percent confidence level.

Please direct questions or comments to [englishhani@hani.co.kr]

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[Analysis] President Lee’s third year hurdles and expected Cabinet shake-up:
Lee administration makes preparations to campaign hard for Sejong City alternative plan and to avoid a lame-duck presidency following the June regional elections
Posted on : Jan.4,2010 12:31 KST