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Documents reveal extensive spying on civilians by gov’t unit By Lee Tae-hoon The alleged illegal surveillance of civilians by government authorities has emerged as the hottest issue in the run-up to the April 11 National Assembly elections. Both ruling and opposition parties are raising the issue, with the latter even demanding the resignation of President Lee Myung-bak to take responsibility for the scandal. The governing Saenuri Party urged prosecutors Friday to launch a full-scale probe into the presidential office’s alleged involvement in the case, following the disclosure of documents revealing the government’s extensive surveillance activities of civilians. "It is very shocking,” the conservative party’s spokesman Lee Sang-il said. “We urge prosecutors to find who masterminded it. We will closely watch the prosecutors’ investigation and seek other measures if it is deemed insufficient.” Other Saenuri Party officials also denounced the Lee Myung-bak administration’s alleged illegal surveillance activities in an apparent attempt to distance themselves from the scandal. The move came after striking journalists of the state-run broadcaster KBS reported in their own Internet news program, titled “Reset KBS News 9,” that they obtained 2,619 documents that reveal illegal spying on civilians between 2008 and 2010 by an ethics team under the Prime Minister’s Office. The report claimed that the documents show that the ethics team recklessly collected information on not only government officials, but also politicians, journalists and labor union leaders considered hostile to the Lee administration. Political pundits say the Saenuri Party will have no other choice but to withdraw its support for the Lee administration in major political issues despite it’s head of its interim leadership committee Park Geun-hye’s recent efforts to bolster cooperation with the presidential office ahead of the crucial elections. Park recently rejected senior party officials’ request to demand President Lee leave the Saenuri Party. The revelations add to the already snowballing scandal surrounding the government’s illegal surveillance of a businessman, who posted a video clip criticizing the Lee government for resuming U.S. beef imports in 2008, and Cheong Wa Dae’s alleged attempt to cover it up. The main opposition Democratic United Party (DUP) described the case as a Korean version of the U.S. Watergate scandal, intensifying its attacks on President Lee and the Saenuri party. “The reported truth about illegal surveillance is appalling,” said Han Myeong-sook, chairwoman of the DUP. “The problem is that the results of the surveillance must have been reported to the VIP (President).” The DUP leader urged the President to clarify whether he was aware of the Prime Minister Office’s illegal surveillance activities and if so what role he played in it. Rep. Park Young-sun of the DUP claimed that the fresh revelations are only the “tip of the iceberg” and that Lee should step down from office. “We have defined this case as a Korean version of the Watergate scandal,” she said. “It is time for the country to talk about Lee's resignation.” She claimed that Cheong Wa Dae will continue to hinder authorities’ investigation into the scandal unless the President leaves office. Earlier this month, prosecutors reopened an investigation into the surveillance scandal after one of the officials involved in the case claimed that the presidential office attempted to cover up the illegal operation. Seven officials had been indicted for the illegal surveillance of the businessman critical of the Lee government, but the probe concluded that the presidential office was not involved. On March 20, Lee Young-ho, a former presidential secretary for employment and labor affairs, said in a nationally televised press conference that he ordered his staff to destroy data on surveillance activities when the prosecution first looked into the case in 2010. However, he refused to comply with a prosecution summons for questioning Friday, saying he would appear in front of them today. Prosecutors say they will summon him again for questioning today. The former labor activist said he ordered the destruction of the data to prevent a possible leak of confidential information on public servants, not because they contained any information about illegal activities. | |
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Friday, March 30, 2012
Surveillance scandal emerges as key campaign issue
Explosive scandal rocks politics ahead of poll
Bombshell revelation gives ammunition to opposition
to attack Lee, ruling party
A spying scandal involving former aides of President Lee Myung-bak is rocking Korean politics in the lead-up to an election in which his Saenuri Party may lose control over the parliament.
The main opposition Democratic United Party on Friday went into full-fledged attack mode against Lee and the conservative ruling party, aiming to capitalize on the explosive scandal in the upcoming parliamentary poll.
On Thursday, documents purportedly produced by the Prime Minister’s Office were disclosed by a labor union of local broadcaster KBS, suggesting that the office had conducted an illegal surveillance operation targeting more than 2,600 people from politics, business and media. Some of the documents are signed “BH ordered,” which many suspect stands for the Blue House, or the presidential office.
DUP leader Han Myeong-sook demanded the truth from the president on the suspicions.
“The scope of illegal surveillance, which was revealed by the disclosed documents, is just appalling,” DUP leader Han Myeong-sook said in a press conference in Chuncheon, a stop on her campaign trail for the April 11 election.
“The bigger problem is that it may have been directly reported to the VIP. He must clarify himself regarding the suspicions,” she said, referring to the president.
Her party has equated the case to the U.S. Watergate scandal in the 1970s which ousted President Richard Nixon.
Rep. Park Young-sun took a step further to criticize Saenuri leader and strongest presidential contender Park Geun-hye.
“I cannot but have suspicions about Park who hasn’t spoken a word on the prosecution’s investigation into the illegal surveillance scandal. Particularly because illegal spying prevailed under the military dictatorship,” the politician said.
It was an unmistakable reference to the 18 years of iron-fisted rule by the conservative leader’s late father, Park Chung-hee.
The snowballing scandal is likely to further isolate Lee, who is nearing the end of his term, with the election to pick his successor due in December. Korean presidents are limited by law to a single five-year term.
Korea will hold a nationwide election next month to pick 300 parliamentarians amid strong public dissatisfaction with established politics.
The DUP, having formed an alliance with the far-left Unified Progressive Party, aims to eject the Saenuri from power in the upcoming poll and keep voter sentiment running positive into the ensuring presidential race. Polls so far show the two parties neck-and-neck.
Political pundits said the case is likely to emerge as the biggest election issue and aid the opposition’s efforts to frame the election as a judgment on the Lee administration.
The Saenuri Party, scrambling to contain the scandal’s impact on voter sentiment, called for a thorough investigation on Friday.
“The prosecution must get to the bottom of the case and sternly deal with whoever is involved, regardless of their rank,” said Lee Sang-il, the party’s spokesperson.
Chief Park Geun-hye made similar comments later in the day, when asked by reporters in Daejeon.
The prosecution is currently investigating the 2008 illegal surveillance of a businessman critical of the president by the prime minister’s office. It questioned former presidential aides on suspicions that they directed the operation and its cover-up.
The Saenuri Party countered the opposition’s criticism, saying the case was reminiscent of an eavesdropping scandal under the administration of late liberal President Kim Dae-jung, in which the national intelligence agency was found to have illegally spied on influential figures.
By Lee Sun-young (milaya@heraldm.com)
A spying scandal involving former aides of President Lee Myung-bak is rocking Korean politics in the lead-up to an election in which his Saenuri Party may lose control over the parliament.
The main opposition Democratic United Party on Friday went into full-fledged attack mode against Lee and the conservative ruling party, aiming to capitalize on the explosive scandal in the upcoming parliamentary poll.
On Thursday, documents purportedly produced by the Prime Minister’s Office were disclosed by a labor union of local broadcaster KBS, suggesting that the office had conducted an illegal surveillance operation targeting more than 2,600 people from politics, business and media. Some of the documents are signed “BH ordered,” which many suspect stands for the Blue House, or the presidential office.
DUP leader Han Myeong-sook demanded the truth from the president on the suspicions.
“The scope of illegal surveillance, which was revealed by the disclosed documents, is just appalling,” DUP leader Han Myeong-sook said in a press conference in Chuncheon, a stop on her campaign trail for the April 11 election.
“The bigger problem is that it may have been directly reported to the VIP. He must clarify himself regarding the suspicions,” she said, referring to the president.
Her party has equated the case to the U.S. Watergate scandal in the 1970s which ousted President Richard Nixon.
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| Rep. Park Young-sun of the opposition Democratic United Party (right) holds up a placard showing an enlarged image of a document implicating the Blue House in the Prime Minister’s Office’s illegal surveillance activities at the party’s head office in Seoul on Friday. (Park Hyun-koo/The Korea Herald) |
Rep. Park Young-sun took a step further to criticize Saenuri leader and strongest presidential contender Park Geun-hye.
“I cannot but have suspicions about Park who hasn’t spoken a word on the prosecution’s investigation into the illegal surveillance scandal. Particularly because illegal spying prevailed under the military dictatorship,” the politician said.
It was an unmistakable reference to the 18 years of iron-fisted rule by the conservative leader’s late father, Park Chung-hee.
The snowballing scandal is likely to further isolate Lee, who is nearing the end of his term, with the election to pick his successor due in December. Korean presidents are limited by law to a single five-year term.
Korea will hold a nationwide election next month to pick 300 parliamentarians amid strong public dissatisfaction with established politics.
The DUP, having formed an alliance with the far-left Unified Progressive Party, aims to eject the Saenuri from power in the upcoming poll and keep voter sentiment running positive into the ensuring presidential race. Polls so far show the two parties neck-and-neck.
Political pundits said the case is likely to emerge as the biggest election issue and aid the opposition’s efforts to frame the election as a judgment on the Lee administration.
The Saenuri Party, scrambling to contain the scandal’s impact on voter sentiment, called for a thorough investigation on Friday.
“The prosecution must get to the bottom of the case and sternly deal with whoever is involved, regardless of their rank,” said Lee Sang-il, the party’s spokesperson.
Chief Park Geun-hye made similar comments later in the day, when asked by reporters in Daejeon.
The prosecution is currently investigating the 2008 illegal surveillance of a businessman critical of the president by the prime minister’s office. It questioned former presidential aides on suspicions that they directed the operation and its cover-up.
The Saenuri Party countered the opposition’s criticism, saying the case was reminiscent of an eavesdropping scandal under the administration of late liberal President Kim Dae-jung, in which the national intelligence agency was found to have illegally spied on influential figures.
By Lee Sun-young (milaya@heraldm.com)
Tuesday, March 27, 2012
Olympic champs Mo, Lee win speed skating gold
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By Cho Mu-hyun Korean speedskaters and Olympic champions Mo Tae-bum and Lee Sang-hwa each won gold in their respective long-track 500-meter events at the ISU Essent World Single Distance Championships on Sunday. On the last day of the four-day tournament in Heerenveen, the Netherlands, Mo recorded a total of 69.64 seconds in his two races to beat second-seed Michel Mulder from the host nation finishing by just .01 of a second. The 23-year-old Korean led the field after finishing the initial race in 34.80, but Mulder marked a personal best of 34.66 in the second race to close the gap. Mo needed to finish in 34.85 to match the Dutchman’s score. He managed 34.84 to win the title by a hair. Mo has struggled with injuries since winning the gold in 2010 Vancouver Olympic Winter Games after hurting his back and straining an Achilles tendon. But the Olympic champion went through intense preparatory training, shedding three kilograms for this competition. His gold medal marks the fourth for a Korean in the tournament. Defending 500-meter champion and compatriot Lee Kyu-hyuk finished 14th in the first race and withdrew from the second due to ankle problems. In the same distance for women, Lee Sang-hwa led after the first race with 38.03, and almost beat the track record of 37.6 with 37.66 in the second. She scored a combined 75.69 to become the first female Korean to win a gold medal in the tournament. ChinaYu Jing, the only woman to skate under 37 seconds with 36.94 in January, won silver with a combined total of 76.12. The win over the 25-year-old Yu was revenge for Lee, as she finished as runner-up to her Chinese rival in the 500 meters at the ISU Speed Skating World Cup in Berlin earlier this month. | |
| impale@koreatimes.co.kr |
Hallyu star Kim leads in new musical
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Sunday, March 25, 2012
Korea welcomes Obama's pick of Korean-born scholar as World Bank head
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Korea's presidential office on Saturday welcomed U.S. President Barack
Obama's nomination of the Korean-born Dartmouth College President Jim Yong Kim
as the next leader of the World Bank.
"We believe that President Kim is the right person to carry out the duties to reform the World Bank and eradicate poverty," the office said in a statement. "We highly appreciate President Obama's decision to nominate President Kim and will cooperate more closely with the World Bank." Born in Seoul, in 1959, Kim moved to the U.S. with his family when he was five years old. As a pioneer in the treatment of HIV, AIDS and tuberculosis, Kim has the breadth of experience on development issues needed to carry out the financial institution's anti-poverty mission, Obama said. Kim is expected to be formally chosen as president of the financial institution, tasked with reducing poverty and supporting development around the world, next month by its 25-member executive board. Obama's unexpected pick of the Korean-American figure was seen as aimed at countering a claim by African and Latin American countries that the U.S., the world's largest economy with the biggest clout in the World Bank, has only installed Americans into the top post at the 187-nation World Bank. (Yonhap) |
Obama taps Jim Yong Kim for World Bank: AP
WASHINGTON (AP) -- President Barack Obama will nominate Dartmouth College
President Jim Yong Kim to head the World Bank, a surprise pick for the
international financial institution's top job, senior administration officials
said.
The Korean-born Kim is a physician by training and a prominent figure in global health and development circles. Officials believe his experience will help counter criticism from developing countries that have grown weary of the U.S. stranglehold on the World Bank presidency.
Obama took a strong personal interest in filling the World Bank vacancy after current president Robert Zoellick announced in February he was stepping down. Obama and his advisers considered more than a dozen candidates, including well-known figures in the administration. But in the end, officials said, Obama pushed for a nominee with broad development experience and was particularly drawn to Kim's innovative work fighting the spread of AIDS and tuberculosis.
The 187-nation World Bank focuses on fighting poverty and promoting development. It is a leading source of development loans for countries seeking financing to build dams, roads and other infrastructure projects.
Obama was to announce Kim's nomination Friday during a White House Rose Garden event.. The president was to be joined by Kim as well as Treasury Secretary Timothy Geithner, a Dartmouth alumnus, and Secretary of State Hillary Rodham Clinton, who officials said was the first to recommend Kim for the job.
The officials requested anonymity in order to speak ahead of the president's announcement.
Former President Bill Clinton also weighed in with support for Kim during Obama's deliberations. In a statement, the former president applauded Kim's nomination. "Jim Kim is an inspired and outstanding choice to lead the World Bank based on his years of commitment and leadership to development and particularly health care and AIDS treatment across the world," he said.
Since its founding in 1944, the World Bank always has been headed by an American. Developing countries have long sought to gain more power in the World Bank as well as its sister lending organization, the International Monetary Fund, which always has been headed by a European.
While U.S. and European officials have voiced support for those efforts, the status quo remains, with France's Christine Lagarde holding the top spot at the IMF and Kim's candidacy for World Bank president all but certain to prevail.
The actual selection will be made next month by the World Bank's 25-member executive board. The United States, as the world's largest economy, has the largest percentage of the votes.
Developing nations are expected to put forward as many as three candidates, including Jose Antonio Ocampo, a Columbia University professor who had been finance minister for Colombia, and Ngozi Okonjo-Iweala, Nigeria's finance minister.
Economist Jeffrey Sachs, the director of Columbia University's Earth Institute, has openly campaigned for the World Bank post, saying the position should be filled by an expert in development issues.
Obama administration officials said the pick was already being well-received in the developing world. After learning of Kim's nomination, Rwandan President Paul Kagame said the physician was "a true friend of Africa" and "a leader who knows what it takes to address poverty."
Kim is expected to travel around the world on a listening tour to rally support for his nomination ahead of the World Bank vote.
The World Bank opening put Obama in the awkward position of choosing between his desire to be seen as a supporter of rising economic powers and the pressures of a political year in which support for a non-U.S. candidate could have opened him to criticism.
"If the administration had pushed a non-American for the job, this could have been attacked as Obama fostering the decline of American influence in the world," said former IMF official Eswar Prasad, now an economics professor at Cornell University. "In an election year, Obama would have been accused of caving in to outside pressures and not being willing to protect U.S. interests."
Obama picked Kim over several more well-known candidates, including Susan Rice, current U.S. ambassador to the United Nations; Sen. John Kerry, D-Mass.; and Lawrence Summers, Obama's former director of the National Economic Council.
Others mentioned for the World Bank post included Indra Nooyi, the head of soft drink company PepsiCo, and Laura D'Andrea Tyson, who served in top economic jobs in the Clinton administration.
Kim was born in Seoul, South Korea, and moved to the U.S. at age 5. He is a graduate of Brown University and Harvard University. He co-founded the global health organization Partners in Health and served as director of the World Health Organization's department of HIV/AIDS.
He began his tenure as president of Dartmouth in 2009, becoming the first Asian-American to lead an Ivy League institution.
 |
| (Dartmouth College) |
The Korean-born Kim is a physician by training and a prominent figure in global health and development circles. Officials believe his experience will help counter criticism from developing countries that have grown weary of the U.S. stranglehold on the World Bank presidency.
Obama took a strong personal interest in filling the World Bank vacancy after current president Robert Zoellick announced in February he was stepping down. Obama and his advisers considered more than a dozen candidates, including well-known figures in the administration. But in the end, officials said, Obama pushed for a nominee with broad development experience and was particularly drawn to Kim's innovative work fighting the spread of AIDS and tuberculosis.
The 187-nation World Bank focuses on fighting poverty and promoting development. It is a leading source of development loans for countries seeking financing to build dams, roads and other infrastructure projects.
Obama was to announce Kim's nomination Friday during a White House Rose Garden event.. The president was to be joined by Kim as well as Treasury Secretary Timothy Geithner, a Dartmouth alumnus, and Secretary of State Hillary Rodham Clinton, who officials said was the first to recommend Kim for the job.
The officials requested anonymity in order to speak ahead of the president's announcement.
Former President Bill Clinton also weighed in with support for Kim during Obama's deliberations. In a statement, the former president applauded Kim's nomination. "Jim Kim is an inspired and outstanding choice to lead the World Bank based on his years of commitment and leadership to development and particularly health care and AIDS treatment across the world," he said.
Since its founding in 1944, the World Bank always has been headed by an American. Developing countries have long sought to gain more power in the World Bank as well as its sister lending organization, the International Monetary Fund, which always has been headed by a European.
While U.S. and European officials have voiced support for those efforts, the status quo remains, with France's Christine Lagarde holding the top spot at the IMF and Kim's candidacy for World Bank president all but certain to prevail.
The actual selection will be made next month by the World Bank's 25-member executive board. The United States, as the world's largest economy, has the largest percentage of the votes.
Developing nations are expected to put forward as many as three candidates, including Jose Antonio Ocampo, a Columbia University professor who had been finance minister for Colombia, and Ngozi Okonjo-Iweala, Nigeria's finance minister.
Economist Jeffrey Sachs, the director of Columbia University's Earth Institute, has openly campaigned for the World Bank post, saying the position should be filled by an expert in development issues.
Obama administration officials said the pick was already being well-received in the developing world. After learning of Kim's nomination, Rwandan President Paul Kagame said the physician was "a true friend of Africa" and "a leader who knows what it takes to address poverty."
Kim is expected to travel around the world on a listening tour to rally support for his nomination ahead of the World Bank vote.
The World Bank opening put Obama in the awkward position of choosing between his desire to be seen as a supporter of rising economic powers and the pressures of a political year in which support for a non-U.S. candidate could have opened him to criticism.
"If the administration had pushed a non-American for the job, this could have been attacked as Obama fostering the decline of American influence in the world," said former IMF official Eswar Prasad, now an economics professor at Cornell University. "In an election year, Obama would have been accused of caving in to outside pressures and not being willing to protect U.S. interests."
Obama picked Kim over several more well-known candidates, including Susan Rice, current U.S. ambassador to the United Nations; Sen. John Kerry, D-Mass.; and Lawrence Summers, Obama's former director of the National Economic Council.
Others mentioned for the World Bank post included Indra Nooyi, the head of soft drink company PepsiCo, and Laura D'Andrea Tyson, who served in top economic jobs in the Clinton administration.
Kim was born in Seoul, South Korea, and moved to the U.S. at age 5. He is a graduate of Brown University and Harvard University. He co-founded the global health organization Partners in Health and served as director of the World Health Organization's department of HIV/AIDS.
He began his tenure as president of Dartmouth in 2009, becoming the first Asian-American to lead an Ivy League institution.
Thursday, March 22, 2012
Design: driving force of Korea's auto industry
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Design chiefs of 4 major automakers talk about past, present and future of Korean car design  By Kim
Da-yeThe Korean automotive industry is flying high. Hyundai Motor Group, which owns both Hyundai Motor and Kia Motors, sold over 1.13 million vehicles in the United States last year, breaking the 1-million-plateau for the first time in the world’s most important market. GM Korea, which introduced the Chevrolet brand last March, launched eight new cars in Korea in nine months and achieved record high sales. Renault Samsung Motors emerged as French automaker Renault’s strategic center in Asia, exporting more than 137,000 of its key models with the Renault badge ― up 19 percent from a year ago despite disruptions in supply of auto parts after the massive  earthquake
in Japan.Behind the Korean automotive industry’s spectacular growth is design. Kia’s K5 sedan and Sportage R SUV swept major international design awards while Hyundai’s YF Sonata became the best-selling Korean car ever in the United States and China largely because of its design. GM Korea’s design studio, which has about 200 employees, is the second largest among General Motor’s 11 studios across the world in terms of the number of projects and the third largest by the number of staff. The Korean studio is the home ground for the design of GM’s mini, small and compact vehicles. One recent impressive development in the Korean car design scene is Renault  Samsung’s
decision to make the Korean design studio a regional leader.Alain Lonay, the director of design who moved from Renault’s design center in Romania to the Korean unit last October, revealed during an interview with Business Focus that from now on, the Korean studio would be fully responsible for designing all the evolutions of the existing lineup and have a lead role in developing all-new models. The Korean unit with 45 designers is already the second largest of the French automaker’s studios. “Four to five years ago, we were not strong enough to be a leader in designing completely new cars. Today, we are,” Lonay said, citing Renault Samsung’s existing infrastructure, relatively easy access to well-trained designers in different fields and growing  importance as an exporter to neighboring Asian countries. Korea is also one of the largest markets for mid-size sedans which are losing their allure in Europe. “We still have much more potential to expand,” said Lonay. Becoming a leader in car design means a lot in the automotive industry. Design has become nearly every automaker’s top priority in order to stand out from the rest as the levels of quality and technological advancements have become even. For instance, Hyundai and Kia share the same platforms for their key models but their designs are developed completely separately. “There is no longer a very good car or a very bad car in terms of general quality. To develop a great engine technology requires long-term research and a huge amount of investment. Design can lead to much more visible, quicker and cheaper innovations,” Lonay said. Growth engine The Korean automotive industry started out in 1950s by hand-assembling imported cars. In 1962, Saenara Motor imported parts of the Nissan Bluebird and assembled it in Korea in a modern manufacturing plant, renaming the vehicle Saenara. The automaker eventually became GM Korea after a series of mergers and acquisitions. Hyundai Motor was set up in 1967, but didn’t make its own car until 1973. The firm had been assembling the Ford Cortina, but after the partnership with Ford soured, it sought to manufacture its own model and developed the Pony. The Pony’s design was by Giorgetto Giugiaro of Italidesign Giugiaro, who was named the Car Designer of the Century by the Global Automotive Elections Foundation. Afterward many Korean cars were designed by famous international designers, especially Giugiaro, or based on foreign cars ― for example the design of the Daewoo LeMans released in 1986 was rooted in that of German automaker Opel. But different automakers’ dependence on a few designers resulted in similar looking cars developed both at home and abroad. Hyundai decided to design its own cars, the first model of which was the Hyundai Scoupe, the country’s first coupe that preceded the Tiburon. In the meantime, domestic designers became more aggressive in getting their voices and ideas heard. Kim Tae-wan, the vice president of GM Korea who heads its design center, recalled the top management’s initial distrust in Korean designers observed during his stint at Daewoo Motors between 1995 and 2000. In choosing the final design for a new car, various designs compete, and the selection process requires the names of the designers removed from the submissions for fair competition. Kim Woo-choong, the founder and chairman of Daewoo Group, however, would ask which was designed by Giugiaro. Once the Italian legend’s work was identified, the chairman wouldn’t even give a glance at other designs, he said. When Kim asked the chairman how Korean designers could improve, he was told to learn more. In 1997, Kim took 27 staff members to Giugiaro’s studio. “At the beginning, Giugiaro was doing everything and our designers, modelers and engineers were just looking. There was a long, flat pencil which we used to draw on a plaster model. I broke the pencil in half in front of Giugiaro and walked out of the room,” Kim reminisced. Kim suggested to Giugiaro’s team that the Korean team and Giugiaro design half the car each and submit the better one to the competition. When the design was to be presented to the chairman, Kim said that the Italian designer chose the Korean team’s work that was developed into the Magnus sedan. “Giugiaro must have chosen a better model because it would carry his name. The second model we worked on together was the Matiz, and he again chose ours,” Kim said. Kim moved to Italian carmaker Fiat in 2000 and came back to GM Daewoo in 2006. He noticed the change in the design status within the automotive firm as well as that of Korean designers. “The design unit used to belong to the engineering department. Now engineering supports design,” Kim said. GM Korea’s Spark mini car and the Cruze compact vehicles were designed by Koreans in Korea and are now exported and produced across the world. Korean designers often make design proposals for the segments that are their main responsibilities. For instance, the square-shape tail-lamps of the Malibu mid-size sedan resemble those of the Camaro sports car and came from the Korean design team. The more recent evolution of car design seems to have taken place overnight. The improvement of design was indeed made swiftly, but it only followed an unprecedented emphasis on design by the domestic automakers. Kia Motors, which made a dramatic comeback with the Soul MPV, announced “Design Management” in 2005 after considering various routes to overcome the firm’s sluggish growth. Youn Seon-ho, the head of Kia Design Center and senior executive vice president of Kia Motors, recalled that the slogan of design management was everywhere including in the advertisements, on the walls of the manufacturing plants and on the back of every Kia employee’s business card. Youn shows his own bright red business card with “DE?I (in the a shape of a light bulb) GN” written in the middle. Around that time, Kia’s own design studios were built in the United States and Europe and the top management took care of design on a daily basis. Youn said that the Forte and the Soul were developed and released to the market amid such an atmosphere. “The older generation of designers couldn’t imagine they could win over Toyota or other European companies. The younger generation has a different goal. At motor shows, they pick what they want to see, leaving out those they regard inferior to Kia,” Youn said, pointing out confidence as one of the biggest changes among the staff. Establishing design philosophy By the early 2000s, Hyundai Motor was among the top 10 global automakers by sales. It could no longer follow trends set by other companies, and Hyundai began seeking its own design philosophy. Oh Suk-geun, the head of Hyundai Design Center and senior executive vice president of Hyundai Motor Group, drew an analogy between the company in the past and a racehorse that has its eyes shielded from looking to the sides so that it can gallop only forward. “When we were a follower, we set a goal, identified current trends and picked our competitor,” Oh said. “But the paradigm changed. We had to find our own direction. If we chose a wrong direction and worked hard toward it, that would result in a great loss.” Internally Hyundai felt a strong need for design principles that could help some 300 Korean and foreign designers, each of who has a strong personality as a designer, toward the same goal. After five years of meetings, research and reviews of various designs, Hyundai’s design philosophy called “Fluidic Sculpture” was born. Many consumers identify fluidic sculpture with the YF Sonata’s slender headlamps, strong character lines and wing-shape grill, but Oh corrects this, saying that it is a design philosophy that goes beyond the so-called family look. He explained that fluidic is a word for aerodynamic design that easily incorporates into the environment. Coexistence with nature is its hidden meaning. Sculpture implies Hyundai’s wish to make a vehicle a work of art as well as new procedures in designing cars. While clay models are usually built strictly according to predetermined proportions and sizes, Oh said that Hyundai’s designers work relatively freely with clay as though they are sculpting. He added that it is an unusual technique among automakers and can bring out emotion in design that couldn’t be achieved through quantitative methods. Under the design philosophy, Hyundai began unifying new models’ exteriors in the segment. The Sonata, a mid-size sedan, and the mid to large-size Grandeur shares similar looking grills while the compact Avante and the subcompact Accent adopted hexagonal grills. While Hyundai’s design is perceived as flamboyant, Kia’s design philosophy is temperate beauty. Youn said that taking out elements regularly to make a design simpler is a challenging process that requires a great deal of concentration. Kia’s family look is almost synonymous with grills that resemble a tiger’s nose ― the grill is seen in most models launched since the beginning of design management ― but Youn said that the company won’t strictly stick to the family look. “Nobody knows how Kia’s design will look like in 10 years although we won’t change what our customers like. We are agonizing over where our family look is heading and researching separately on that issue,” Youn said. In the case of Renault Samsung, Lonay said that the company is in the middle of redefining the identity, which will soon be revealed to the public. New vehicle models will increasingly resemble each other, especially in the front, although Lonay does not want the cars to look the same. He stressed that the principles of Renault Samsung’s design is in line with the firm’s core values, “superior quality, superior comfort and excellent drive,” ― a design that does not cut too much headroom for a spacious interior while the design would become more emotional and fluidic in the future. Future Financial investment alone cannot make a fine-looking car. Good design comes from designers who are given the freedom for more creativity but disciplined to endure endless teamwork. Lonay of Renault Samsung spoke highly of Korean designers’ dedication and excellent level of education. One concern he has about the Korean studio, however, is that all the employees are Koreans except Lonay, while staff at the design center in France come from some 20 different countries. In addition, Korea is yet to have a strong car culture. In Europe, vehicles from every imaginable brand are found on the road as well as classic cars. “We don’t have classic cars here. You cannot refer to history easily,” said Lonay. Renault Samsung’s solution is to exchange more designers across Renault’s global network of studios. Sung Joo-wan, the designer of the new SM7 sedan, is currently in France for a year. Lonay said that such a program will allow Korean designers to have international experience and pass on new skills to their colleagues later. At the same time, it gives the dispatched designers the opportunity to promote Korea within Renault. GM Korea also believes that seeing and experiencing more leads to better design. In 2010, the company opened a design studio in Nonhyun-dong in southern Seoul ― a district filled with showrooms of foreign automakers and fashion boutiques ― to help its designers to get out of the research center in Bupyeong, Gyeonggi Province, and experience the latest trends on a daily basis. Kim of GM Korea said that Korean designers need to have a deeper understanding of cars inside and out rather than just drawing well. While he studied automotive design at Brigham Young University in the United States in the late 1980s, he found his classmates had been interested in cars since they were very young. Not only had they seen and driven various vehicles belonging to their grandparents, parents and siblings, many also disassembled and reassembled cars as a hobby. Although Kim had early access to an automobile ― a Fiat 124 which he secretly drove on the sports field of his elementary school with his father’s driver ― his knowledge in engineering was limited compared to his American classmates. During the summer vacation, he bought an MGB GT sports car that was about to be scrapped and rented storage under a bridge. He rebuilt the car, replacing the carpet, filling the holes and repainting the body. Before he left for the United States he sold his car and rented different American cars for two months, four to five days for each car. “It is extremely challenging to work with engineers if you don’t know much about cars. If you do not want to compromise your opinion, you need to learn more about cars,” Kim said. Hyundai and Kia have benefited from expanding their global design studio network and hiring world-famous designers including Peter Schreyer from Audi and most recently Christopher Chapman from BMW. While chief designers decide the basic shape of the vehicles, Korean designers at the Namyang Research and Development Center fine-tune the designs, closely working with engineers. Oh of Hyundai Motor said that Korean designers are probably the world’s best in fine tuning designs, which is an arduous, time-consuming process but leads to a perfectly built car. He added that the synergy between creative U.S. designers and their meticulous Korean counterparts have been Hyundai’s strength. “It isn’t difficult to make an awesome drawing, but turning it into a perfect model for mass production can’t be done overnight,” Oh said. But fostering local design talent remains the firm’s key strategy. Oh said that Hyundai sent a group of designers to the Antarctic and to Patagonia in South America this year. Last year, they visited Egypt and South Africa. “If just one of them gets inspired by the miracle of mother nature, that will result in a huge amount of profit,” Oh said. Kia also sent the design team to two places of contrasting civilizations ― Madagascar and Dubai. For Youn, creative design isn’t enough. He encourages the designers to imagine the future. “I ask them to imagine what society will be like in 2020. I ask them to make a scenario, a story and eventually the car design to suit that future,” he said. “Our strategy is developing together with our consumers. Surveying and satisfying their needs are important, but we are also interested in taking a step ahead and leading them to find out what they can enjoy in their cars.” | |
Unhappy with life
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Time to sow seed of hope for
future
Improving living conditions is certainly a top priority for South Koreans as most of them are unhappy with their life. It would be better for the nation to shift its focus from quantitative to qualitative economic growth. It is hard to gauge the degree of happiness or unhappiness because either feeling is subjective. However, it is worth noting an online survey of 19,216 adults residing in Korea and 23 other countries, which was conducted by Ipsos, a leading global research firm. The survey discovered that 81 percent of 1,000 Korean respondents are dissatisfied with their life. Only Hungarians showed a higher degree of dissatisfaction with 89 percent. The poll did not give details about why Koreans are not gratified. But it is easy to find the reasons. Many Koreans feel that their living standards have not improved much over the past few years although the economy enjoyed modest growth. They have often complained about widening social polarization which deepened the sense of deprivation among the poor and socially weak. The problem is that only a small number of conglomerates and their owners have amassed wealth. Most workers and the self-employed have been unable to enjoy their fare share of economic fruits. Large businesses have been engrossed in maximizing their own profits with little regard for social responsibility. The past decade has been characterized by a jobless growth. Corporations have been reluctant to offer new jobs, while exploiting non-regular workers. Mammoth business groups have become more dominant by consolidating their control on the market. In addition, the government’s misguided macroeconomic policy has worsened the situation. Soaring consumer prices have weakened people’s purchasing power. Runaway rents and a heavier burden of private tutoring for schoolchildren have also forced salaried workers to dig deeper into their pockets. Pervasive corruption among bureaucrats, politicians, bankers and businessmen was and still is the source of frustration for the people. Needless to say, corruption increases costs in almost every sector of our society. In the end, consumers and taxpayers have to suffer from the consequences arising from a lack of transparency and accountability. Korea has the highest suicide rate among members of the Organization for Economic Cooperation and Development (OECD). This proves that more Koreans are hopeless than any other people in the group of the world’s major rich states. Nothing will improve if one is satisfied with today’s life and Koreans have a lot of things to improve. Now, it is time for Korean to make all-out efforts to turn dissatisfaction into happiness. All players should join hands to make Korea a better place to live. They must sow the seeds of hope for the future. |
Is transparency possible in chaebol?
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By Kim Da-ye If it had happened, it would have been the biggest delisting in the Seoul bourse’s history caused by lack of transparency. Hanwha, one of Korea’s major conglomerates whose market cap until recently exceeded 2.9 trillion won, was considered on Feb. 5 for delisting after it was forced to disclose that Chairman Kim Seung-youn and four other executives had been prosecuted for embezzlement. The disclosure came nearly a year after they were prosecuted on Jan. 29, 2011. Hanwha had been delaying the announcement until on Feb. 2 when the prosecutors sentenced the chairmen to nine years in prison and a 150 billion won fine. The Korea Exchange (KRX) requires a firm to immediately make a disclosure when 2.5 percent or more of a large firm’s equity is embezzled. Kim allegedly embezzled nearly 90 billion won — 3.88 percent of the firm’s equity as of late 2009. If the firm had made the disclosure to the prosecution last January, that would have been it. But in April 2011, the law changed — now the stocks of a firm suspected of fraud are immediately suspended from trading and the firm goes under review for delisting. After a day of intense review, the KRX decided not to kick Hanwha off the bourse, instead suspending it for a day for breaching the disclosure rule, not for embezzlement. Amid criticism that this was only a slap on the wrist favorable toward the chaebol, the bourse operator said Hanwha’s proposal to boost management transparency was valid. Corporate transparency has no single definition. It means more than a timely disclosure of financial information but encompasses the decision making processes and operations of a business. For instance, Standard & Poor’s (S&P) which has produced transparency and disclosure rankings examines three categories: ownership structure and information disclosure; financial transparency and information disclosure; and board and management structure and process. “Good corporate governance includes a vigilant board of directors, the timely and adequate disclosure of financial information, meaningful disclosure about the board and management process, and a transparent ownership structure identifying any conflicts of interest between managers, directors, shareholders, and other related parties,” according to S&P’s 2002 report. While Korean firms’ disclosure practices have significantly improved — important reports and announcements are made in real-time online — large conglomerates still suffer risks stemming from their “owners.” Is transparency impossible in chaebol? Many of Korea’s large conglomerates are controlled by family members of the founders who have learned to wield much power with a relatively small stake although the firms are listed on stock exchanges. Traditionally, the heirs of the founders are called the owners and many behave as though they own the firms. Transparency in such an environment has tended to be pushed aside especially in decision making processes. “In a conglomerate with an owner, the owners’ thoughts and voices hugely matter. Strong leadership means fast decision making while the firm may have to follow the owner even if he or she makes an abnormal choice. It may not be communicated to the markets well,” an electronics analyst said on condition of anonymity. The analyst said that foreign investors are aware of corporate governance in chaebol and some do think that diversification of business and the resulted creation of synergy among them is the strength of chaebol. They are, however, more harsh than domestic investors toward dogmatism and corruption committed by owners. Kang Jeong-min, a research associate of the Economic Reform Research Institute, said that it isn’t just owners but also members of companies that prioritize owners’ benefits, not those of shareholders. In Hanwha’s case, it was the company that decided not to let its investors know about the charges brought against the chairman. Furthermore, SK Holdings Chairman Chey Tae-won is standing trial for charges that he embezzled from the firm’s affiliates to cover losses from investment into derivatives by him and his brother Chey Jae-won. When the KRX asked the affiliates of SK Holdings to verify the suspicions that they were involved in Chey’s embezzlement, SK Telecom, SK Gas and SK C&C replied, “Not true at all.” Businesses in such the situation are supposed to say that they would verify it and make a disclosure later since it is an ongoing case. The KRX designated all three affiliates as “unfaithful disclosure corporations.” Jeffrey Jones, the former chairman of U.S. business lobby American Chamber of Commerce in Korea, said that corporate governance is more of an issue than transparency, which he said has improved by far. “In today’s Korea, almost all big companies are transparent because they are under a lot of scrutiny by the government and by the shareholders. Most of the large companies have operations outside Korea. They have to be very, very concerned about their reputation in Korea and out of Korea,” Jones said. Is transparency always good? Greater transparency that keeps the employees, shareholders and other types of stakeholders well informed is believed to lead to better management. But some argue that in the case of chaebol, their owners’ instant yet arbitrary decision making has helped them, especially those in the manufacturing sector, to grow so fast. “Manufacturing sectors require quick decisions on investments in technology, especially in difficult times,” the analyst said. He said that growth at Samsung Electronics was exponential because it made huge investments in difficult times. “Korea’s IT industry is at this stage because the owners’ decisions were made swiftly,” he said. As the conglomerates expand in size and to various sectors, the analyst said that the power of the owners will likely shrink and professional managers will replace them. Kang of Economic Reform Research Institute said on the contrary, the owners’ control over companies won’t fade easily as their close allies or family members together still hold large stakes. “What makes me more pessimistic about an improvement to the status quo is that the judiciary seems very generous toward heads of chaebol. They are hardly ever imprisoned, and even if they are, they are released early under special pardons by the president,” Kang said. He said that harsher punishments as well as stronger scrutiny by authorities are necessary to boost the transparency of chaebol management. Large institutional investors, especially pension funds, should also be more active in exercising their rights. “There are many affiliates of chaebol in which the National Pension Service (NPS) holds more than a 5 percent stake. The NPS has so far been reluctant in exercising stockholders’ rights, but if it becomes more active in doing so, that can make changes,” Kang said. Jones said that good corporate governance eventually matters more than owners’ abilities to take risks and make relatively swift decisions. “In a proper course of decision making, the owners that are able to make decisions quicker than those without owners, still should convince and persuade board members who can exercise their rights independently,” he said. | |
| kimdaye@koreatimes.co.kr |
Wednesday, March 21, 2012
Overheating problem on the new iPad?
Some early purchasers of U.S. company Apple Inc.'s new iPad tablet computer are reporting the unit is generating too much heat.
Several users have posted on Apple support forums about their experience with heating on the third-generation tablets, USA Today reported Tuesday.
"Mine seems to get very warm ... much more so than my original or my iPad 2," user Grandparr wrote.
"Mine does get warm on the lower left side," user Paranoid-Android posted. "Not super hot, but uncomfortably warm."
Consumer Reports has run some tests using a thermal imaging camera and found the new iPad does indeed run much hotter than its predecessor, reaching temperatures as high as 116 degrees Fahrenheit while running processor-intensive games, slashgear.com reported.
That's about 12 degrees hotter than the iPad 2 under the identical testing conditions, Consumer Reports said.
Apple has responded by saying, "The new iPad delivers a stunning Retina display, A5X chip, support for 4G LTE plus 10 hours of battery life, all while operating well within our thermal specifications.
"If customers have any concerns, they should contact AppleCare," the company said.
Apple has sold 3 million of the new iPads since its introduction Friday, the report said.
Monday, March 19, 2012
Gov't mulls levying taxes on clergy: finance minister
South Korea's finance minister has said the government is considering levying taxes on the clergy as part of an effort to ensure equitable taxation.
In a interview aired by a local cable TV network on Monday, Bahk Jae-wan said the government is weighing the option of whether to discuss levying taxes on clergy during upcoming deliberations to reform the country's tax codes for this year.
"In principle, priests, ministers and monks should not be exempted from paying taxes on their earnings," he said. "In the past, the country was lax in terms of collecting taxes but there is a need for change."
Bahk conceded the country has not tried to collect taxes from clergy previously out of respect for their social role. He said asking them suddenly to pay taxes may not be easy.
"There is also the need to take into consideration how best to deduct expenses incurred by religious activities," he said.
Seoul has not committed to asking clergy to pay taxes due to the backlash such a move could trigger.
Seoul first brought up the option of taxing clergy members in
2006 when the National Tax Service sent a memo to the finance ministry to investigate the feasibility of such a move.
Reflecting the controversy the minister's comments may cause, the finance ministry stressed it has no plans to review levying taxes on the clergy during its tax policy review this year.
Bahk's comments only outlined the government stance of not allowing tax exceptions as policymakers scramble to increase state revenue in the face of rising demand for greater social welfare payouts, it added. (Yonhap News)
Bugeotguk (dried pollack soup)
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| Bugeotguk (Institute of Traditional Korean Food) |
Ingredients
● 70g dried pollack
● 100g radish, 20g small green onion, 1/4 red pepper
● 1 tsp sesame oil
● 7 cups water, 1 tsp clear soy sauce, 1/2 tbsp salt
● 1 egg
For seasoning
● 1/2 tbsp minced green onion, 1 tsp minced garlic, 1/8 tsp ground white pepper, 1/2 tbsp sesame oil
1. Remove the head, tail and fins of the dried pollack and soak in water for 10 seconds. Wrap it with a damp cloth and let it sit for 30 minutes.
2. When the dried pollack has softened, take the bones out. Rip it up into pieces about 5 cm long and season.
3. Trim and clean the radish, slice finely into 3 cm-square pieces.
4. Trim and clean the small green onion, cut it into 3-4 cm-long pieces. Halve the red pepper and seed, then slice finely into 3 cm pieces.
5. Beat the egg.
6. When the pot has been heated, oil and stir-fry the dried pollack and radish together for 1 minute on medium heat. Add water and boil it on high heat for 7 min.
7. Reduce the heat to medium and boil it for 20 minutes more. Season with diluted soy sauce and salt. Put small green onion and red pepper, draw lines with beaten egg on top and bring it to a boil.
Tips
● Shred dried pollack may be used for dried pollack soup.
● Bean sprouts may make the soup cool in taste.
(Adapted from the Institute of Traditional Korean Food)
Apple has sold 3 million iPads
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People purchase
the new iPad at Apple's flagshop store, in New York, Friday (AP-Yonhap
News)
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Apple Inc. says it has sold 3 million iPads since Friday when it released the latest version of the tablet computer.
The new, third model comes with a faster processor, a much sharper screen and an improved camera. As with the previous models, prices start at $499 in the U.S.
Apple said Monday that this is its strongest launch for an iPad yet.
The company began selling the latest tablet computer in the U.S. and nine other countries Friday and will begin selling it in 24 more countries at the end of this week. (AP)
Reactor Leaks in Canada at World’s Second-Largest Nuclear Plant
A nuclear reactor in Canada that’s been out of service for almost two decades shut after a leak as it was being restarted, said the operator of the world’s second- largest plant.
The 750-megawatt Unit 2 at the Bruce Power complex near Kincardine on Lake Huron, about 250 kilometers northwest of Toronto, closed March 17 as it was being returned to service following refurbishment, said John Peevers, a Bruce spokesman at the plant. The leak was heavy water, which is used to slow nuclear reactions, he said.
“Staff safely and quickly isolated the leak,”Peevers said in an e-mailed response to questions. “Repairs are in progress and will take a few days to complete.”
There was no release to the environment and no plant worker received any contamination, the Canadian Nuclear Safety Commission said in a statement posted on its website.
The unit, one of eight at the plant which has a total capacity of 6,300 megawatts, has been shut since 1995 for renovations to its Candu reactor design, Peevers said. Unit 1 is scheduled to be restarted after similar refurbishment in the third quarter, Peevers said.
Bruce Power, based in Tiverton, Ontario, is a partnership of Cameco Corp.; TransCanada Corp.; BPC Generation Infrastructure Trust, established by the Ontario Municipal Employees Retirement System; the Power Workers’ Union; and The Society of Energy Professionals.
The Kashiwazaki-Kariwa plant in Japan has the world's largest capacity with 7,965 megawatts, according to the International Atomic Energy Agency. The plant is run by the Tokyo Electric Power Company.
Saturday, March 17, 2012
Prosecution, police tit-for-rat continues
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Police accepted Friday the prosecution’s order to transfer a controversial case pitting a police officer against a prosecutor to a regional precinct from the National Police Agency (NPA). But the police called the direction an “unfair” command, intensifying the feud between the two law-enforcement organizations. The police’s decision came two days after the prosecution ordered the case, in which a prosecutor was accused of power abuse, be transferred to a regional police unit. “We’ve decided to transfer the case to a police precinct in Daegu where the accused resides upon the prosecution’s request. But a special police investigation team will continue to look into the matter, taking into consideration the severity of the case,” said Kim Heon-gi, a senior police officer from the NPA at a press briefing. In the latest in a series of conflicts, a police inspector named Ju in Miryang accused a prosecutor surnamed Park of putting pressure on him, using abusive language, to drop a case which the inspector had been looking into. According to the police, lawyers were hired by a company accused of allegedly burying industrial waste in farmlands where Park’s former bosses at the Miryang bureau of the Changwon District Prosecutors’ Office were located. And the prosecutor allegedly ordered, in an inappropriate manner, the police officer to stop investigating the case. Mindful of growing public concern over the prolonged feud between the law enforcement authorities, NPA chief Cho Hyun-oh also toned down his criticism against the prosecution Friday. “We’ve accepted the prosecution’s request, taking into consideration the public’s concern.” However, NPA officials continue to oppose the prosecution’s order. Prosecutor General Han Sang-dae has reportedly ordered prosecutors to actively vindicate the prosecution’s position and criticize the police.
Analysts say checks and balances between the two organizations are crucial to solve the age-old conflict. Some say the police should be given the right to investigate prosecutors when they are suspected of wrongdoing. “I highly doubt the prosecution carried out a fair investigation as the accused is from the district office which will oversee the investigation,” said Park Ju-min, a lawyer at the People’s Solidarity for Participatory Democracy. Lee Jin-young, a coordinator of the judiciary watch department at the civic group, echoed similar views. “I have no objection to the prosecutors overseeing the police investigation, because such a system can protect the accused from possible infringements by the police,” the civic activist said. “Our society, on the other hand, lacks a monitoring system over the prosecution, and I think police should independently probe prosecutors if they are suspected of any wrongdoings.” A professor said prosecutors should be treated like ordinary citizens. “Under the law, prosecutors should respect the police as a law-enforcement unit and the police should not have problems carrying out investigations on them if they are suspected of any wrongdoings,” said Park Roh-seop, a professor of law and public administration at Hallym University. Shin Dong-woon, a professor at the Seoul National University Law School, said the revised bill last year on the investigation rights between the prosecution and police does not clearly state to which extent each side can intervene. “I think the government should make the law clear to avoid this kind of conflict,” he said. | ||
'Samsung isn't sole supplier for Apple iPad'
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Despite the widening patent dispute with Apple, a top Samsung executive said the
California-based Apple is buying more parts manufactured by Samsung
Electronics.
Also, Samsung isn’t the sole supplier of flat-screens to the U.S.-based company. ``As you know, Apple emerged as Samsung’s biggest client and we think the partnership could be stronger throughout this year as well,’’ Samsung Vice Chairman Kwon Oh-hyun, who oversees the company’s parts business including chips and flat-screens, told The Korea Times, late Friday. Kwon was at Gimpo International Airport with company CEO Choi Gee-sung, Chief Operating Officer (COO) Lee Jay-yong, the head of the revived Strategic Planning Office (SPO) Kim Soon-taek and other top executives waiting for the arrival of Chairman Lee Kun-hee from his trip to Hawaii. ``Our chip-making factory in Austin, Texas, began operating at full capacity from last year in response to our clients,’’ said Kwon. The Austin plant is producing mobile application processors (MAPs) for Apple. The top memory chipmaker has been supplying A4, A5 and even the latest A5X MAPs to Apple. Kwon denied a foreign media report that Samsung was the only supplier of the latest iPad’s 2048X1536 high-resolution retina display. ``It’s a matter of allocation. There is no only supplier in the world. Samsung is just supplying displays to Apple, initially,’’ Kwon said. Apple spokesman Steve Park declined to comment. The Korea Times earlier reported even with all the ongoing patent issues, Apple is going to buy between $9.7 billion and $11 billion in parts from Samsung depending on consumer demand for iPads and MacBooks. Apple bought $7.8 billion worth parts last year. To a question over the possibility to produce advanced organic light-emitting diodes (OLED) in Samsung’s plant in southern China, Kwon said, ``I will tell you later because I am still studying more about LCDs.’’ Although the main arrival gate at this airport was packed with over 50 domestic reporters for any updates about the ongoing feud over the family inheritance, Samsung boss Lee declined to comment. Lee was in Hawaii for a week and there were rumors that the trip was intended to better prepare for the ongoing internal feud. ``No,’’ said SPO head Kim. Lee is being sued by his brother Lee Maeng-Hee, 80, for 700 billion won. The dispute centers on eight million shares in Samsung Life Insurance, and 20 shares in Samsung Electronics inherited from their father. Lee Kun-Hee has been accused of keeping the shares for himself. |
Wednesday, March 14, 2012
Arrest warrants sought for 2 foreign protestors on Jeju
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Police requested arrest warrants for two foreigners who demonstrated against the construction of a naval base on Jeju Island. It is the first time that warrants have been sought for foreign protestors against the controversial project. According to Seogwipo Police Station Wednesday, warrants were sought for Angie Zelter from Britain and Benjamin Monnet from France, on charges of illegally entering the naval base site and damaging property in the process. Zelter entered the Gureombi Seashore, where the naval base construction is underway, through the seawall from Gangjeong port last Monday, police said. Zelter severed the barbed wire fence that was installed around the base and illegally entered the site. Zelter is a British peace and environment activist who has been arrested over 100 times around the world for carrying out anti-nuclear weapons campaigns. She is visiting Jeju to attend an international peace conference organized by Global Network. Monnet, a French peace activist, is also charged for illegally entering the naval base last Monday by rowing a kayak onto the Gureombi Seashore and crossing over the barbed wire fence and climbing on an excavator. Monnet, who came to Korea to attend a film festival to be held on Jeju in May, had already been indicted last November for assaulting a construction worker who was installing the barbed wire fence. The police also requested an arrest warrant for a Korean who climbed on the excavator with Monnet on charges of obstruction of business but released the other 13 who were apprehended along with them. Over 20 foreign activists are reportedly participating in the protest, according to the immigration office. The Jeju police were unable to determine the exact number of protesters. | |
Experts optimistic about KORUS FTA
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Survey shows benefits outnumber disadvantages By Kim Tae-gyu Opposition parties have claimed that Korea’s free trade agreement with the United States (KORUS FTA) will hurt the former since the bilateral deal was renegotiated to benefit the latter compared to the original pact. Yet a majority of experts here pointed out Wednesday that the contract will eventually do more good for Asia’s No. 4 economy despite the compromises thanks to the win-win features of cross-border transactions. With the KORUS FTA going into effect Thursday, six out of 10 famed economists and market analysts surveyed agreed with the idea that Korea has to proactively embrace the deal. Three came up with neutral responses while one said that the deal will do more harm to Korea. The consensus of the six was the agreement creates fresh benefits, which were not available under the previous trade barriers so they will outweigh some interests foregone due to the renegotiations. “Let’s assume that the initial KORUS FTA would provide us with an additional advantage of 100 and the renegotiation cut down the amount to 80. Still, we can have 80,” said professor Yun Chang-hyun of the University of Seoul. “If we are opposed to the agreement, we will end up empty-handed. Plus, the deal with the United States has invisible profits because it has strategic significance in consideration of the relationship of the two allies.” Yoo Jang-hee, professor emeritus at Ewha Womans University, concurred. “Critics of the KORUS FTA tend to take issue with the renegotiations, which they argue overly favored the U.S. side at the expense of Korean industry in such areas as automobiles,” Yoo said. “If they are right, local carmakers are supposed to be against the FTA but the reality is that they welcome it. This story tells a lot regarding the future of Korea, which has to depend on exports for continued growth.” The KORUS FTA was initially signed in early 2007 but both parties went through another round of talks at the request of the United States before the final version was signed in December 2010. Despite Seoul’s repeated arguments that it managed to keep a “balance of interests,” the consensus seems to be that the nation conceded too much. In particular, critics take issue with the investor-state dispute (ISD) settlement provision, which they contend would enable American multinationals to bring a set of lawsuits against Korea. Asked about the ISD issue, the 10 experts surveyed were split into two camps on whether it is a toxic clause. There were some voices worried about the potential downsides. “The FTA with the United States is not about scrapping trade barriers since shipments of products account for just a small fraction of the agreement,” professor Lee Hae-young at Hanshin University said. “It is mostly about U.S. attempts to oblige Korea to accept systems under which its companies can easily access the Korean market. The deal is obviously against the national interest.” Lee added that the government’s official projection is simply overblown that the FTA will generate hundreds of thousands of jobs and substantially boost national output. State-run think tanks previously presented studies where they projected the deal would increase Korea’s gross domestic product by a maximum of 5.66 percent over the next decade and create up to 350,000 jobs. Trade Minister Bark Tae-ho echoed the rosy projection at a press conference Wednesday. |
Opposition demands reopening probe on surveillance scandal
The main opposition Democratic United Party on Tuesday demanded
a reinvestigation of the 2010 illegal surveillance scandal, following a claim
from a key suspect that the presidential office had directed its cover-up.
“The prosecution should re-investigate the case and get to the bottom of the suspicions that the Presidential Office was behind the illegal operation,” Rep. Kim Jin-pyo, the party’s floor leader, said during a party meeting.
The opposition politicians equated the case to the Watergate scandal in 1970s that ousted U.S. President Richard Nixon, saying the party will push for a probe by an independent counsel, if the prosecution does not move.
“This is President Lee’s Watergate. It has been revealed that the presidential office ordered (the illegal monitoring of a civilian), the prime minister’s office executed it and the prosecution covered it up,” Kim said.
The scandal erupted in 2010, entailing illegal spying by officials at the Prime Minister’s Office on a civilian who posted video clips critical of President Lee Myung-bak on his blog in 2008. The PMO officials destroyed their computers after prosecutors began a probe.
Suspicion was rampant at that time that it was part of a wider surveillance and sabotage operation against Lee’s opponents under direction of the presidential office.
The prosecution, however, closed its case, indicting only several PMO officials, citing a lack of proof linking the case to any of the presidential aides.
Lee In-kyu, head of the public ethics division at the PMO, and three of his staff received prison terms for illegal surveillance. Three others were convicted of destroying evidence and also got jail terms. They have appealed and are now awaiting decisions by the Supreme Court.
The case was brought back in the spotlight recently, when Jang Jin-soo, one of the PMO officials on trial, revealed that he acted on orders from the presidential office.
He disclosed an audio recording purportedly of a dialogue between himself and Choi Jong-seok, a former labor affairs staff member at Cheong Wa Dae.
In this dialogue, Choi apparently offers cash and life-long support to dissuade Jang from revealing the “whole truth.” The former presidential aide also says that the presidential office had a deal with the prosecution regarding the case.
Jang was convicted of destruction of evidence and was sentenced to eight months in jail, suspended for two years. The former official claimed that the presidential office ordered him to destroy the hard drive of his computer with a hammer or dump it in Han River. He also said the same office provided him with a mobile phone registered under a borrowed name to use when reporting to the presidential office.
The People’s Coalition for Economic Justice, a Seoul-based civic group, issued a statement Tuesday, urging an re-investigation into the case.
“The prosecution should now admit that its probe was insufficient and begin re-investigation immediately,” it said.
By Lee Sun-young (milaya@heraldm.com)
“The prosecution should re-investigate the case and get to the bottom of the suspicions that the Presidential Office was behind the illegal operation,” Rep. Kim Jin-pyo, the party’s floor leader, said during a party meeting.
The opposition politicians equated the case to the Watergate scandal in 1970s that ousted U.S. President Richard Nixon, saying the party will push for a probe by an independent counsel, if the prosecution does not move.
“This is President Lee’s Watergate. It has been revealed that the presidential office ordered (the illegal monitoring of a civilian), the prime minister’s office executed it and the prosecution covered it up,” Kim said.
The scandal erupted in 2010, entailing illegal spying by officials at the Prime Minister’s Office on a civilian who posted video clips critical of President Lee Myung-bak on his blog in 2008. The PMO officials destroyed their computers after prosecutors began a probe.
Suspicion was rampant at that time that it was part of a wider surveillance and sabotage operation against Lee’s opponents under direction of the presidential office.
The prosecution, however, closed its case, indicting only several PMO officials, citing a lack of proof linking the case to any of the presidential aides.
Lee In-kyu, head of the public ethics division at the PMO, and three of his staff received prison terms for illegal surveillance. Three others were convicted of destroying evidence and also got jail terms. They have appealed and are now awaiting decisions by the Supreme Court.
The case was brought back in the spotlight recently, when Jang Jin-soo, one of the PMO officials on trial, revealed that he acted on orders from the presidential office.
He disclosed an audio recording purportedly of a dialogue between himself and Choi Jong-seok, a former labor affairs staff member at Cheong Wa Dae.
In this dialogue, Choi apparently offers cash and life-long support to dissuade Jang from revealing the “whole truth.” The former presidential aide also says that the presidential office had a deal with the prosecution regarding the case.
Jang was convicted of destruction of evidence and was sentenced to eight months in jail, suspended for two years. The former official claimed that the presidential office ordered him to destroy the hard drive of his computer with a hammer or dump it in Han River. He also said the same office provided him with a mobile phone registered under a borrowed name to use when reporting to the presidential office.
The People’s Coalition for Economic Justice, a Seoul-based civic group, issued a statement Tuesday, urging an re-investigation into the case.
“The prosecution should now admit that its probe was insufficient and begin re-investigation immediately,” it said.
By Lee Sun-young (milaya@heraldm.com)
Tuesday, March 13, 2012
Overdue loans at top 10 private lenders top 600 bil. won
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Overdue loans at Korea's 10 largest private lenders
surpassed 600 billion won ($535 million) earlier this year, data showed Tuesday,
raising concerns over its impact on household debt.
The amount of overdue loans at the 10 players, including market leaders A&P Financial and Sanwa Money, reached 609.9 billion won as of January, up 52.1 percent from a year earlier, according to the data by industry sources and the Financial Supervisory Service. The data also showed that the default rate of the private lenders jumped 3.45 percentage points on-year to 12.39 percent. The data comes amid fears heavy household debts are likely to cripple economic growth and domestic demand in Asia's fourth-largest economy. In the last few years, the growth rate of household debts at non-bank financial firms outstripped that of lenders. Outstanding household loans at non-bank institutions stood at 402.3 trillion won as of the end of 2011, more than double from 193.8 trillion won at the end of 2004. In the same period, household debts at banks grew from 276.3 trillion won in 2004 to 455.9 trillion won at the end of 2011. Market watchers attributed the sharper increase in household loans of non-financial firms to grim economic circumstances. "A growing number of people are depending on non-financial firms and private lenders as their income decreases. It seems a suspension of larger private lenders also prompted more borrowers to rush to smaller players," said Park Deok-bae, a researcher at Hyundai Research Institute. Earlier this year, major private lenders had their operations suspended for six months for reaping illegal profits through "unfair" interest rates. The local financial regulator vowed to overhaul the private money market to counter growing public outcry over its notoriously high interest rates. (Yonhap) |
'No experiment for Qatar'
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Hong vows to treat fixture as Games opener  By Cho
Mu-hyunThe Olympic football team led by Hong Myung-bo is to face Qatar in the final qualifier for London at home on Wednesday. Though Korea secured a berth at the Summer Games with a 3-0 win against Oman on Feb. 22, the 42-year-old manager vowed to keep his side sharp and not take the other team lightly. “We will enter the Qatar fixture and regard it as the opener of the main Games instead of the last match of the final qualifying round,” said Hong at the National Football Center where the squad trained Monday. “Qatar has prepared hard to clinch second place in the group, and will give everything they’ve got in the match.” “We’ve had insufficient time to train but we have many players who have prepared in advance, so we will be fine,” he added. The 22-man roster was released on March 6, which was visibly different from previous squads. Yun Il-lok, Moon Sang-yoon, Shim Dong-woon and Park Yong-ji, all playing in the K-League, have replaced team pillars Kim Bo-kyoung and Baek Sung-dong. The changes mostly exclude those in the J-League while picking many lesser known footballers for the first time, drawing speculation that the manager is using the opportunity to give other players some game time and try a refreshing approach. But Hong stressed that the changes are not a test. “The match against Qatar is an important step towards the main Games. We have not experimented since the final qualifying round began in September last year. We tried to maximize our strength with the players we have had at a given time.” Hong is well known for never deciding on the final 11 until match day, to keep the players under constant pressure to perform. “The Olympic squad has 18 unlike the World Cup roster (which has 23). One player must at least be able to execute one or two formations,” he said, not subtle in his demands as usual. The squad for London will include two goalkeepers and three “wild card” selections. While the Olympic qualifiers have a strict age limit of 23 for participants, each side can pick three over-23 players for the Games themselves. As older players are usually more capable than their younger counterparts, it is rare for managers to forgo the option. Therefore, only 13 spots are open for younger players who are eager for the chance. “I want to give a good performance for the home fans,” said Kim Hyun-sung, who knows his manager’s inclinations better than anyone. “The competition is fierce for (places in the squad) with wild cards being mentioned. But the most important thing is to show my capabilities.” Kim, who netted the second goal against Oman and played well for FC Seoul in his last two outings, is the strongest candidate to spearhead the attack in the 4-2-3-1 formation that Hong is likely to deploy. If the manager’s intention is to continue in his typical method with past fixtures, Kim Tae-hwan and Suh Jung-jin are strong possibilities to take the wings. The two forward positions vacant due to changes in personnel last week is the only mystery remaining. Lee Bueom-young, who made some spectacular blocks against Oman, is likely to wear the gloves again unless he suffers a drastic decline in match fitness. |
Saturday, March 10, 2012
Forbes’ richest list grows to 1,226 globally
Despite a $6 billion hit to his wealth from slumping stock markets over the past year, Forbes said Slim’s $69 billion was enough to keep him on top of its global billionaires list for the third straight year.
Gates, the co-founder of Microsoft, had a fortune worth $61 billion, still hefty after having given away $28 billion over recent years to global causes such as fighting AIDs and polio.
The two topped a list of 1,226 billionaires Forbes counted around the world, dominated as ever by Americans ― 425 in total and 11 of the top 20 ― but also underpinned by the rise of concentrated wealth in China and Russia.
Showing the impact of sluggish world growth over the past two years, the list only expanded by 16 this year, and the average billionaire’s money pot was unchanged at $3.7 billion.
But many of the stars of recent years felt the hit of slumps in stock markets, where much of their wealth is counted.
India’s steel magnate Lakshmi Mittal dropped out of the top 20 for the first time since 2004, Forbes said, after shares of his main business, ArcelorMittal, plunged, leaving him $10.4 billion poorer with just $20.7 billion.
Likewise, the number of Chinese billionaires shrank with Asian stock markets, to 95 from 115 last year.
But Chinese and Russian billionaires together still made up 16 percent of the world’s total, underpinning the monumental shift in wealth from many of the older industrial powers over the past two decades.
The downturn in the European economy was also evident in the numbers: for the second year running, there were more billionaires in the Asia-Pacific region (315) than in Europe (310).
In the overall list, holding the third spot behind Gates was, as in previous years, U.S. investment guru Warren Buffett, worth $44 billion.
He was followed by France’s luxury king Bernard Arnault, with $41 billion, and a newcomer to the top five, Spain’s Amancio Ortega, the owner of the Zara fashion chain.
Ortega’s net worth surged by $6.5 billion over the past year to $37.5 billion despite Spain’s financial straits, Forbes said.
Filling out the top 10 were Larry Ellison of U.S. software giant Oracle, Brazilian mining tycoon Eike Batista, H&M owner Stefan Persson of Sweden, Hong Kong investor Li Ka-shing and Germany’s Karl Albrecht, the super-secretive tycoon who owns the Aldi Sud supermarket chain.
In terms of single countries, Russia was second to the United States with 96 billionaires, led by Alisher Usmanov, number 28 overall with $18.1 billion. Usmanov topped the Russian list for the first time based on his control of iron ore and steel producer Metalloinvest.
Forbes predicted his fortune would likely jump over the next year due to canny investments in social media: he has stakes in Facebook, soon to go public, as well as in Zynga and Groupon.
China’s billionaires list is led by an Internet tycoon, Robin Li. The chief executive of the country’s huge web service and search firm Baidu has earned himself a $10.2 billion fortune.
Behind them were 55 Germans, 48 Indians, 37 British, 37 from Hong Kong, 36 Brazilians, 25 in Canada, and 24 billionaires each from Taiwan and Japan.
In an interview Slim, 72, who controls the regionwide America Movil cellular network, denied his fortune arose mainly from monopolistic power in telecoms networks.
“That’s what competitors say, but if that were true, they would take the market from us,” he told Forbes.
“The customers are not fools.”
China says inflation, factory output slowing
BEIJING (AFP) -- China‘s inflation rate slowed sharply in
February and factory output eased, data showed Friday, adding to evidence of a
slowdown in the economy and giving Beijing more room to relax credit limits.
The figures from the National Bureau of Statistics come as the economy faces headwinds over Europe’s debt crisis and sluggish growth in the United States, which are hurting export-driven China.
The consumer price index rose 3.2 percent in February -- the lowest since June 2010 -- compared with 4.5 percent in January, when spending before the Chinese New Year holiday drove up retail prices, the government said.
Before January, inflation had eased for five straight months after hitting a more than three-year high of 6.5 percent in July and analysts had expected the downward trend to resume in February as the economy continued to slow.
Premier Wen Jiabao, speaking at the opening of the annual session of parliament on Monday, warned consumer prices remained high and the government‘s aim was to keep the inflation rate within 4.0 percent this year.
His remarks suggest policymakers will be cautious in relaxing the tight credit restrictions imposed in the past two years, while as he also forecast
2012 economic growth to slow further from the blistering pace of previous years.
The producer price index, which measures the cost of goods at the farm and factory gate and is a leading indicator of consumer prices, flatlined in February compared with a 0.1 percent increase in January.
Inflation has triggered social unrest in the past and senior leaders are anxious to keep prices of basic goods such as vegetables, meat and housing under control ahead of a once-a-decade power transition that begins later this year.
Beijing has twice lowered the banks’ reserve requirement ratio in the past three months, effectively increasing the amount of money they can lend, and analysts said they expect further such moves in the coming months.
But they ruled out aggressive interest rate cuts, especially against a backdrop of rising global oil prices, as they could fuel inflation in energy-guzzling China.
“We do not expect a big shift in policy settings in the near-term, with any move to ease liquidity conditions likely to take the form of further cuts in banks‘ reserve requirements,” said Brian Jackson of Royal Bank of Canada.
JPMorgan expects the inflation rate to slow to 2.8 percent by the third quarter, giving the government “wider scope to implement selective policy easing measures to counter the downside risks to growth”.
Other data on Friday showed industrial output rose 11.4 percent in the first two months of 2011, compared with a year ago. The figure was below December’s increase of 12.8 percent and analyst forecasts for 12.4 percent, according to Dow Jones Newswires.
Urban fixed asset investment expanded 21.5 percent in the first two months, compared with the same period last year, beating expectations for an increase of 19.0 percent.
Retail sales rose 14.7 percent in the two-month period.
Beijing combines the January and February figures for output, investment and retail sales due to distortions caused by the Lunar New Year holiday, which falls within the first two months of the year.
China has cut its economic growth target to 7.5 percent this year from eight percent last year, in an official acknowledgement that the export-driven economy is slowing as the eurozone crisis and slow pick up in the United States hurts demand for its products.
The Asian powerhouse expanded 9.2 percent last year, slowing from 10.4 percent in 2010, as global turbulence and efforts to tame high inflation put the brakes on growth.
The downward trajectory in consumer prices means inflation “can be safely relegated from the top spot of government concerns” as Beijing turns its focus to boosting growth, said Alistair Thornton, an analyst at IHS Global Insight.
But he noted the “tricky” challenge facing policymakers as they try to ensure the economy expands at a fast pace while keeping prices under control.
The figures from the National Bureau of Statistics come as the economy faces headwinds over Europe’s debt crisis and sluggish growth in the United States, which are hurting export-driven China.
The consumer price index rose 3.2 percent in February -- the lowest since June 2010 -- compared with 4.5 percent in January, when spending before the Chinese New Year holiday drove up retail prices, the government said.
Before January, inflation had eased for five straight months after hitting a more than three-year high of 6.5 percent in July and analysts had expected the downward trend to resume in February as the economy continued to slow.
Premier Wen Jiabao, speaking at the opening of the annual session of parliament on Monday, warned consumer prices remained high and the government‘s aim was to keep the inflation rate within 4.0 percent this year.
His remarks suggest policymakers will be cautious in relaxing the tight credit restrictions imposed in the past two years, while as he also forecast
2012 economic growth to slow further from the blistering pace of previous years.
The producer price index, which measures the cost of goods at the farm and factory gate and is a leading indicator of consumer prices, flatlined in February compared with a 0.1 percent increase in January.
Inflation has triggered social unrest in the past and senior leaders are anxious to keep prices of basic goods such as vegetables, meat and housing under control ahead of a once-a-decade power transition that begins later this year.
Beijing has twice lowered the banks’ reserve requirement ratio in the past three months, effectively increasing the amount of money they can lend, and analysts said they expect further such moves in the coming months.
But they ruled out aggressive interest rate cuts, especially against a backdrop of rising global oil prices, as they could fuel inflation in energy-guzzling China.
“We do not expect a big shift in policy settings in the near-term, with any move to ease liquidity conditions likely to take the form of further cuts in banks‘ reserve requirements,” said Brian Jackson of Royal Bank of Canada.
JPMorgan expects the inflation rate to slow to 2.8 percent by the third quarter, giving the government “wider scope to implement selective policy easing measures to counter the downside risks to growth”.
Other data on Friday showed industrial output rose 11.4 percent in the first two months of 2011, compared with a year ago. The figure was below December’s increase of 12.8 percent and analyst forecasts for 12.4 percent, according to Dow Jones Newswires.
Urban fixed asset investment expanded 21.5 percent in the first two months, compared with the same period last year, beating expectations for an increase of 19.0 percent.
Retail sales rose 14.7 percent in the two-month period.
Beijing combines the January and February figures for output, investment and retail sales due to distortions caused by the Lunar New Year holiday, which falls within the first two months of the year.
China has cut its economic growth target to 7.5 percent this year from eight percent last year, in an official acknowledgement that the export-driven economy is slowing as the eurozone crisis and slow pick up in the United States hurts demand for its products.
The Asian powerhouse expanded 9.2 percent last year, slowing from 10.4 percent in 2010, as global turbulence and efforts to tame high inflation put the brakes on growth.
The downward trajectory in consumer prices means inflation “can be safely relegated from the top spot of government concerns” as Beijing turns its focus to boosting growth, said Alistair Thornton, an analyst at IHS Global Insight.
But he noted the “tricky” challenge facing policymakers as they try to ensure the economy expands at a fast pace while keeping prices under control.
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