China launches cruise to N. Korean scenic resort

A cruise to North Korea's scenic mountain resort from China has officially been launched, Chinese media reported Saturday.

According to the China News, some 100 Chinese tourists from the northeastern province of Jilin sailed along the North's east coast to visit Mount Kumgang on a four-day itinerary early Friday.

After crossing the border to North Korea by land from the city of Hunchun in the Yanbian Korean Autonomous Prefecture, the tourists boarded a cruise ship in the North Korean city of Rason, the media said.

"This holds significance as it is a first marine tourism route to visit the mountain from China," said an official of the Yanbian Chunwoo International Travel Agency, which has an exclusive right to run the route.

"The tourists were satisfied with our program. We will send a group of visitors once a month," he added.

The cruise tour illustrates a recent boom among Chinese to visit their communist neighbor. Currently, about 10 such programs are available, according to the report. Previously, North Korea had run only 3 to 5 courses for Chinese visitors.

Experts say launching a series of tourism programs for the Chinese is the North's apparent bid to earn much-needed hard currency.

For a decade, South and North Korea jointly ran a tour program for South Korean tourists to the resort in Mount Kumgang, a key symbol of reconciliation between the divided Koreas.

But the cross-border tour program came to a halt following the 2008 shooting death of a South Korean tourist by a North Korean soldier near the resort.

Samsung Display to relaunch as world’s biggest display maker

Samsung Display is poised to become one of the world’s largest display makers, following a trilateral merger among the company, Samsung Mobile Display and S-LCD Corp.

Its parent Samsung Group said that the merger, first approved in April by its board of directors, will see the creation of a new company specializing in display technologies, including LCDs and OLEDs. The merged entity will officially launch on July 1.

According to company executives, this new corporate body will operate under the label of Samsung Display, and will be staffed by about 26,000 employees. Total assets are expected to amount to about 33 trillion won ($28.5 billion).

The integration joins three of South Korea’s leading display makers: Samsung Display, Samsung Mobile Display and S-LCD Corp. The first two are subsidiaries of Samsung Electronics and specialize in large-scale LCD displays and small and medium-sized displays, such as OLEDs and AMOLEDs, respectively. S-LCD Corp. is a joint venture of Samsung Electronics and Japan’s Sony Corp, and specializes in LCD panels.

Industry sources said they predict the newly integrated Samsung Display to become an industry leader, as an expected rise in display prices and increased demand for organic light-emitting diode, or OLED, screens will most likely help the company meet sales expectations of over $26 billion in 2012.

Meanwhile, executives said the newly launched Samsung Display will appoint a new CEO following a general stockholders’ meeting and a meeting of the board of directors on July 2. Possible contenders include Samsung Mobile Display’s chief executive officer and president Cho Su-in, and Samsung Electronics visual display division’s vice president, Kim Jong-ho.

By Renee Park (renee@heraldm.com)

Italy beats Germany 2-1 to reach Euro 2012 final

Mario Balotelli finally showed some quality finishing, scoring twice in the first half Thursday to give Italy a 2-1 win over Germany and an unexpected spot in the European Championship final.

Extending its winless streak against Italy in major tournaments to eight matches, Germany had no answer for Balotelli nor Antonio Cassano's creativity.

In the 20th minute, Balotelli had no trouble getting past Holger Badstuber to head in a pinpoint cross from Cassano. Then in the 36th, the 21-year-old striker received the ball behind the defense and blasted a long shot into the top right corner.

While he did score against Ireland, Balotelli was criticized for wasting numerous chances against Spain, Croatia and England.

“This is the greatest night of my life, but I hope Sunday is going to be even better,” said Balotelli, who went over to his mother after the match and dedicated the goals to her. “In the opening matches I had a lot of chances, and I wasn't able to finish them. But In football you also need luck.”

Germany failed to trouble Italy for much of the match, but Mesut Oezil scored a consolation penalty in injury time after Federico Balzaretti was whistled for a handball.

Germany had entered the game on a world record 15-match winning streak in competitive matches.

“It's a very bitter defeat,” Germany captain Philipp Lahm said. “We tried everything in the second half but our goal came too late. We have so much potential in our team but if we cannot give the right performance at the right time or are not clever enough, then we lose such a game.”

Italy will face defending champion Spain in Sunday's final in Kiev, Ukraine _ a rematch of their 1-1 draw that opened Group C.

“We showed we're on Spain's level and that's where we started this run,” Italy midfielder Claudio Marchisio said. “It's no longer a question of fear. Now we've got to pull out everything we still have inside ourselves.”

While Italy has won four World Cups, it's only European Championship title came in 1968. Like when they won the 1982 and 2006 World Cups, the Azzurri have managed to maintain their focus despite a match-fixing and betting scandal at home.

“All I can say is that when you talk about Italy, everyone needs to be careful,” Italy coach Cesare Prandelli said. “We played an extraordinary match. We displayed a model of fair play and attachment to this shirt.”

On a pleasant evening at the National Stadium Warsaw, Cassano set up the opening goal by befuddling Germany defenders Mats Hummels and Jerome Boateng to lift the ball in Balotelli's direction.

“We did what we had thought would put them in trouble,” Prandelli said. “We played centrally and looked for one-on-one opportunities with Cassano.”

The second goal began with a long vertical pass from Riccardo Montolivo, whose mother is German. Balotelli collected the pass with his back to the goal, controlled the ball with his chest and then sprinted forward and unleashed a blazing shot from the edge of the area as Germany goalkeeper Manuel Neuer again stood immobile.

With three goals, Balotelli moved level with four other players for the tournament scoring lead. After the match, Prandelli was asked if this was the best match of Balotelli's career.

“Balotelli's career has just started,” Prandelli said.

Balotelli took off his jersey after his second goal, which drew an automatic yellow card, although he will not miss the final.

Even before scoring, Italy controlled the pace of the match, although Germany did have several chances from Hummels, Toni Kroos and Oezil.

In the 35th, Italy goalkeeper Gianluigi Buffon preserved the Azzurri lead by swatting away a long shot from Sami Khedira _ and Balotelli doubled the lead a minute later.

To start the second half, Germany coach Joachim Loew brought on Miroslav Klose for Mario Gomez at center forward and replaced Lukas Podolski with Marco Reus on the wing.

With Germany appearing slightly more organized, Lahm had a great look at the goal in the 49th but shot way over the bar.

“If we had scored earlier, there could have been more for us,” Loew said. “The disappointment is great. Nobody is speaking in the dressing room. The players are crying. ... But I am not going to question everything we've done. This team has great quality. It will continue to develop and learn.”

Buffon made another impressive save in the 62nd, leaping to push a free kick from Reus off the bar.

While Italy largely sat back and protected its lead in the second half, the Azzurri did produce some dangerous counterattacks. Marchisio shot just wide in the 67th and 75th and substitute Antonio Di Natale missed another chance in the 82nd.

Di Natale came on in the 70th after Balotelli went down with a cramp to his left leg.

White-clad German fans greatly outnumbered Italian supporters, unveiling a huge banner before kickoff that featured a giant “G” for Germany. However, most of the stadium was filled with Polish fans who supported Italy.

They had plenty to cheer about.

“We're living a dream along with millions of Italians,” Italy defender Giorgio Chiellini said. “We're going to enjoy this victory a little longer, then we'll think about Sunday, because we want to continue dreaming.” (AP)

Korean fashion designers go global

Korean fashion designers go global

The 10 designers pose for a promotional photo of 2012 Seoul's 10 Soul, a global fashion brand project. From left are Lee Seung-hee, Kang Dong-jun, Hong Hye-jin, Choi Bum-suk, Ko Tae-yong, Lee Suk-tae, Im Seon-oc, Steve J & Yoni P, Choi Chul-yong and Sheen Je-hee. / Courtesy of Bridge Company By Rachel Lee A global fashion brand project, 2012 Seoul’s 10 Soul, organized by the Seoul Metropolitan Government, has shortlisted 10 Korean fashion designers with long-term support programs. Now in its third year, the project aims to provide long-term exposure in international markets and help the further development of selected designers. This year they are Ko Tae-yong, Choi Chul-yong, Kang Dong-jun, Choi Bum-suk, Sheen Je-hee, Lee Suk-tae, Lee Seung-hee, Im Seon-oc, Steve J & Yoni P and Hong Hye-jin. The government runs integrated showrooms called Acrex in Paris and Milan to further promote the brands. “I am enormously impressed by the capability of Korean artists,” said Alfredo Ferreira, sales director of the showroom. “I expect a lot from the project as the eyes of Paris fashion are currently upon it.” In Paris, the showroom will open from June 29 to July 3 for menswear and Sept. 27 to Oct. 5 for womenswear. Milan’s showroom will present the men’s ranges through Sept. 25 and from Aug. 27 to Oct. 15 for the women’s styles. In addition, the 10 designers will showcase their work at an exhibition scheduled around Paris Fashion Week this October to which the press and buyers will be invited. Previously, the project was more about such one-time events as hosting an exhibition of the designers and an after-party in Paris. “This fashion project has helped me to jump into the pickiest European market,” said Lee Suk-tae, chosen for the project for three consecutive years, along with Choi Bum-suk, Sheen and Lee Seung-hee. “However, the government needs to support us with a long-term project, rather than promoting single events. Consistency is the key,” he added. Lee is now a sought-after designer by established public relations firms and showroom organizers in France. The long-term support programs envisioned this year include consultations on brand positioning and marketing strategies; a one-to-one matching service between the designers and agencies specializing in public relations and sales; and continuous brand management and analysis of the outcome. “We aim to develop our domestic brands to the level of global giants Louis Vuitton and Chanel by 2020,” said Baek Woon-seok, director of cultural industry at the Seoul Metropolitan Government. “We also plan to expand this current Paris-based project to other big cities and keep up our support programs to gain recognition in the global fashion industry.”

Apple to sell music through iTunes in Hong Kong, Asian countries

Apple Inc. will start sales of music and movies through the iTunes store in Hong Kong, Singapore, Taiwan and nine other Asian markets as it expands in the region.

Customers in Brunei, Cambodia, Laos, Macau, Malaysia, the Philippines, Thailand, Sri Lanka and Vietnam will also be able to buy music and rent movies through the iTunes store, Apple said in a statement posted on its website on Wednesday. Consumers in these countries have so far only been able to buy apps from the App Store.

The Asia-Pacific region excluding Japan accounted for 21 percent of Apple뭩 revenue last fiscal year, growing from 13 percent a year before, according to data compiled by Bloomberg. The share of sales generated in the Americas, Europe and Japan declined for the Cupertino, California-based maker of iPod music players and iPad tablet computers.

(Bloomberg)

Civic activists to sue Japanese rightist over comfort women insult

A group of Japanese civic activists protest in front of the Japanese Embassy in central Seoul on Wednesday demanding their government formally apologize for the wartime sex slavery of Korean women during its colonial rule. They joined the weekly protest hosted by Korean activists and former “comfort women.” (Yonhap News)

Korean civic activists said Wednesday that they would sue a Japanese rightist who placed a stake claiming Dokdo as Japanese territory beside a commemorative statue for Korean wartime sex slaves and depicted them as “prostitutes.”

The House of Sharing, a shelter for the “comfort women,” and Lee Yong-su, one of the victims, said they are to file a damages suit against Suzuki Nobuyuki, a former unsuccessful councilor candidate, for tarnishing their honor. The center is also considering formally complaining to the Japanese Embassy.

Koh Hee-jeong, an Ewha Womans University student, said she will also seek litigation against Suzuki for contempt next week.

“He has damaged the art piece that has been erected to honor the women and as a memorial for all of us to enjoy. It is a big disgrace to the artist and to us, who have perceived the statue as a memorial rather than an insult,” she said.

Suzuki caused a stir when he placed the 90 centimeter-long wooden post beside the statue across from the Japanese Embassy in downtown Seoul last Tuesday. In a video message he called for the removal of the “memorial for prostitutes.”

Suzuki is also suspected of sticking a similar stake on the wall of a museum to commemorate comfort women in western Seoul.

Meanwhile, a group of Japanese-Americans filed a petition with the White House requesting the American government remove monuments to comfort women in the U.S. and “not to support any international harassment related to this issue against the people of Japan.”

The petition, which had earned about 32,000 signatures as of Wednesday, claims that “false accusations regarding the South Korean comfort women issue have disgraced the people of Japan for decades.”

The initiator said, “Yet despite this new information, the United States continues to lend credence to the original false charges by memorializing the comfort women in a monument in New Jersey and a street name in New York. Not only is this perpetrating historical untruths, but it also leads to unnecessary racial conflict and suffering of people of Japanese ancestry.”

The White House makes a formal response to petitions that gain 25,000 people’s signatures within 30 days from initiation.

The U.S. House of Representatives in 2007 passed a resolution demanding the Japanese government’s acknowledgement of and apology for the sexual enslavement of Korean women.

By Bae Ji-sook (baejisook@heraldm.com)

Moody's cuts debt ratings of 28 Spanish banks

Moody's Investor Service is cutting its credit ratings on 28 Spanish banks, saying the weakening financial condition of Spain's government is making it more difficult for that country to support its lenders.

Moody's also said the banks are vulnerable to losses from Spain's busted real estate bubble.

The announcement from Moody's came on the same day that Spain's government formally asked for help from its European neighbors in cleaning up its stricken banking sector. However the request left many questions unanswered, including how much of a $125 billion loan package Spain would ask for.

That uncertainty led to losses Monday in stock markets in the Europe and the U.S. Bond investors pushed Spain's borrowing costs higher, a signs of lagging confidence in the country's ability to support its banks.

The downgrades are a measure of Moody's view on the ability of the 28 banks to repay their debts. Moody's said the downgrades stemmed from its lowering of Spain's credit rating by three notches earlier this month.

A downgrade usually means that banks will have to pay more for their debt. Investors demand higher interest for riskier debt, which is what the downgrades represent. However, with interest rates already at rock-bottom levels, the lower ratings may not significantly affect the cost of funding for the banks.

Spain formally asked the European Union on Monday for rescue loans to help clean up its troubled banking industry. The Spanish economy, the fourth-largest of the 17 countries that use the euro currency, is suffering from the aftershocks of a real estate bust that has devastated families as well as banks. Unemployment is nearly 25 percent.

The financial strength of Spain's government hinges on that of the country's banks, as both government and banks struggle for survival. Two-thirds of Spain's government bonds are owned by Spanish banks, pension funds and insurance companies.

Moody's said in a statement that the agency was encouraged by the broad measures being introduced by Spain to support its banks.

Moody's move came four days after the rating agency downgraded some of the world's biggest banks, including Bank of America, JPMorgan Chase and Goldman Sachs, reflecting concern over their exposure to the violent swings in global financial markets. Moody's also cut the ratings on seven German and three Austrian banks this month.

The series of downgrades weren't a surprise. But they come at a time of great uncertainty in the global economy. Europe's 17-nation currency union is under threat, the U.S. economy is slowing and the economies of India, Brazil and China are cooling.

EU leaders are meeting Thursday and Friday in Brussels, Belgium, for another summit aimed at reining in Europe's debt crisis. Debt-wracked Greece is looking to renegotiate some of the budget-cutting measures it has agreed to in exchange for continued support from international lenders. The summit comes just a week after Greece's new coalition government was formed following months of political turmoil and two inconclusive elections.

Spanish government officials haven't said how much they will seek from the loan package offered by the EU June 9. Two international audits last week found that as much as $77 billion could be needed. Spain wants the loans to go directly to the banks so that the government wouldn't be responsible for repayment. That idea has met with resistance, however.

The size and interest rates of the loans likely will be discussed at the EU summit this week.

The bank bailout has only made investors more nervous about Spain's financial condition, amid unanswered questions about the country's request. Investors are concerned that beyond a rescue for its troubled banking sector, Spain itself may ultimately need a full country bailout like Greece, Ireland and Portugal.

Steep losses stung stock markets on both sides of the Atlantic Monday. The Dow Jones industrial average dropped 138 points to close at 12,502.66, a loss of 1.1 percent. The broader Standard & Poor's 500 index fell even more, 1.6 percent.

Many analysts believe big banks, including those in the U.S., would be the first to feel the hit of a freeze-up in Europe's financial system if Spain isn't able to convince bond markets that it can rescue its hobbled banks.

The uncertainty pushed borrowing costs higher for Spain's government. Its stock market plunged 3.7 percent. (AP)

Consumer sentiment falls in June

South Korea's consumer confidence fell in June from the previous month due to persistent eurozone uncertainties and a slowdown in domestic production and spending, the central bank said Tuesday.

The consumer sentiment index (CSI), which gauges consumers' overall economic outlook, living conditions and future spending, stood at 101 for this month, compared with 105 in May, according to the Bank of Korea (BOK).

A reading above the benchmark 100 means optimists outnumber pessimists. The survey, based on a poll of 2,072 households in 56 cities nationwide, was conducted from June 12-19.

"The monthly sentiment, which rose for four straight months before the latest fall, was affected by concerns of Greece exiting the eurozone, Spain's banking sector woes and sluggish growth in local industrial production and consumption," a BOK official said.

The survey, in addition, showed the expected inflation rate over the next 12 months standing at 3.7 percent, unchanged from the previous month's estimate, according to the central bank.

The country's consumer prices grew 2.5 percent on-year in May, down from 4 percent tallied for the whole of 2011, and unchanged compared to April.

The BOK, meanwhile, left its key policy rate unchanged at 3.25 percent for the 12th straight month in June in the face of persistent challenges posed by European fiscal concerns and weak domestic economic growth.
(Yonhap News)

Robot maker to launch ‘K-pop star robots’

From the official site of "Girls` Generation)

Dongbu Robot said Monday it plans to launch robots that impersonate K-pop stars such as Girls’ Generation and Super Junior, by yearend.

The South Korean robot maker will form consortium with other robot makers Intelligent & Recreational Robot and Ocean Bridge E&T to develop the high-tech entertainment robots.

According to Dongbu, the robot “will be able to fully reenact movements and dances of stars” using more than 20 artificial motor “joints” installed all over its body. In addition, users can make the robots look like their favorite stars using attachable artificial skin.

Users will be able to download the latest songs and dances via android and apple application stores and link them to the robot, said the company.



From news reports
(khnews@heraldm.com)

400-pound woman arrested for nudity

bus stop.

Fort Lauderdale police said Patricia McCollum, 52, was spotted by officers sitting nude on the bus bench Wednesday and was arrested on a charge of exposure of sexual organs in public, the South Florida Sun Sentinel reported Friday.

McCollum said during a court appearance Thursday she is currently homeless and was attempting to change her clothes.

"That's why I was changing my clothes on the bus bench. I don't have anywhere else to stay but bus benches," McCollum said.

Police said McCollum has been warned by officers in the past about similar incidents.

McCollum was ordered held on $100 bond. (UPI)

Hyundai, Kia increase Europe market share

Hyundai Motor Co. and sister brand Kia, already boosting sales in Europe’s contracting auto market, are extending their challenge to Fiat SpA and PSA Peugeot Citroen by enlisting soccer stars to steal customers.

The Korean carmaker is attracting Europeans by stepping up sponsorship of their favorite pastime, hiring soccer heroes like Germany’s Lukas Podolski and France’s Karim Benzema to promote Hyundai as part of a marketing blitz focused around the European championship, the region’s biggest tournament. Kia Motors Corp. revamped the Cee’d compact, giving it sportier European styling to challenge Volkswagen AG’s Golf.

“One of the issues we face as a brand in Europe is that we’re considered Asian and people don’t feel emotionally attached,” Mark Hall, head of marketing for Hyundai in Europe, said in an interview. “Anything that connects with the region’s passions helps close that gap.”

Hyundai and Kia are intensifying their targeting of European consumers to extend their expansion, which has been based on a mix of low prices, long warranties and inexpensive manufacturing. That combination has made the Korean manufacturer the only volume carmaker to grow in the region this year, at the expense of local brands, according to data from auto industry lobby ACEA.

The Seoul-based group’s sales rose 16 percent through May, compared with a 17 percent drop by Italy’s Fiat. Deliveries for French manufacturers Peugeot and Renault slumped 15 percent and 19 percent, respectively. General Motors Co.’s European sales, including the unprofitable Opel brand, declined 11 percent, while Ford Motor Co. fell 8.2 percent. Sales at Volkswagen, the region’s biggest carmaker, slipped 1.9 percent.

“They’re benefiting from lower costs, and their cars have clearly improved in quality and technology,” said Tim Schuldt, a Frankfurt-based analyst at Equinet. “The French, Opel and Ford are challenged by them the most. Now Kia and Hyundai must manage their growth, which has been a problem for many companies that expand fast.”

Hyundai plans to increase European sales by about 25 percent to 500,000 cars by 2013, boosted by the ix35 crossover and i30 hatchback. To underpin its goal of lifting its European market share to 5 percent from a target of 3.5 percent this year, the brand will double capacity at a factory in Turkey to 200,000 vehicles, investing 475 million euros ($598 million) to add the i10 subcompact there by the end of next year.

Kia intends to lift its share of the European market to 3 percent next year from 2.5 percent now. The carmaker added a third shift and about 1,000 workers in the first quarter to its plant in Slovakia.

The expansion contrasts with GM’s plans to close an Opel factory in Germany after Fiat shut an Italian plant at the end of last year. Overcapacity in Europe is projected to more than double to about 2 million vehicles in 2012, with demand forecast to drop for the fifth consecutive year.

Kia is basing much of its growth on the revamped Cee’d, which is narrower, lower and 5 centimeters (2 inches) longer than its predecessor, to lure customers away from models like the Opel Astra, Renault Megane and Peugeot 308, according to Paul Philpott, Kia Europe’s chief operating officer. The model starts at 13,990 euros, 18 percent less than the VW Golf.

“It’s a car designed for Europe, built for Europe, by Europeans,” Philpott said in an interview. “It’s got a very European feel to it.”

(Bloomberg)

Spain banks need up to $78 billion

Juncker expects Spain to request aid by Monday

MADRID (AP) ― Spain’s troubled banks could need as much as 62 billion euros ($78.6 billion) in new capital to protect themselves from economic shocks, according to independent auditors hired by the government to assess the country’s struggling financial sector, officials said Thursday.

The Spanish government will use the auditors’ report as the basis for their application for a bank bailout loan from the 17 countries that use the euro. With tensions rising over the future of the eurozone, Spain is expected to submit its specific request for outside assistance no later than Monday, said Jean-Claude Juncker, who chairs meetings of zone’s finance ministers.

“We invited Spain to pursue this clear and ambitious strategy, which needs to be implemented swiftly and communicated early,” Juncker said after Spanish Economy Minister Luis de Guindos presented the audit results to the ministers who are members of the so-called Eurogroup.

Deputy Bank of Spain Governor Fernando Restoy noted that this worst-case scenario cited by the auditors was far below the 100 billion euros ($126.7 billion) loan offered by the eurozone’s finance ministers two weeks ago.

The headquarters of Bankia SA is seen above residential apartments in Madrid. (Bloomberg)

Spain’s banking sector is struggling under toxic loans and assets from the collapse of the country’s property market in 2008. Concerns that Spain’s economy is so weak that it could not afford the cost of propping up its banks has sent its borrowing costs soaring to levels not seen since it joined the European single currency in 1999.

The worry is that Spain could soon find itself unable to finance its debts by itself and join Greece, Ireland and Portugal in seeking a rescue loan for not just the banks but the whole country.

The stakes are huge: Spain is the eurozone’s fourth-largest economy and would seriously hit the bloc’s finances should it need bailing out. The country is struggling through a recession with a 24.4 percent jobless rate. On top of this, government’s main customers at its debt auctions are Spanish banks ― the sector now being bailed out. In a sign of how reluctant the markets are to invest in Spain, the country had to pay sharply higher interest rates to raise 2.2 billion euros ($2.8 billion) in a bond auction Thursday.

The audits of Spain’s lenders, carried out by consultancies Roland Berger and Oliver Wyman, covered 14 banking groups that account for 90 percent of the country’s financial sector. The country will use the reports’ findings to decide how big a bailout loan to ask for.

Restoy and Deputy Economy Minister Fernando Jimenez Latorre declined to outline individual banks’ needs.

In the auditors’ stress test for the worst-case economic scenario ― a fall in gross domestic product of 6.5 percent over the period 2012-2014 ― most of the banks were deemed to be in a “comfortable” position, Restoy said.

“We’re not talking about the imperative capital necessities of the banks. We’re not talking about someone urgently needing such and such an amount of capital to deal with their obligations,” said Restoy. “We’re talking about the capital that would be needed if we were to see a situation of extreme tension which is very unlikely to come about.”

“We should keep in mind we are not talking about how much capital an entity needs to survive. We’re talking about how much capital an entity will need to confront a situation of extreme stress,” he added.

Eurozone finance ministers offered Spain a bailout loan of up to 100 billion euros on June 9. The terms of the loan ― for which Spain, rather than banks, will ultimately be responsible for ― still have to be negotiated.

Spanish Prime Minister Mariano Rajoy hailed the audit results during a visit to Brazil as an important move toward restoring international confidence in Spain, currently seen as one of the eurozone’s weakest links.

“It’s a decisive step in the right direction because it makes an accurate and credible diagnosis that fences in the capital needs in manageable margins and ensures that the financial assistance made available to Spain by our European partners is more than enough to solidly clean up our financial institutions,” Rajoy said in Sao Paulo after meeting with business leaders.

Oliver Wyman Inc. gave a worst-case range of 51 billion euros to 62 billion euros in new capital needs while Roland Berger Strategy Consultants GmbH gave a single figure of 51 billion euros.

The release of the audits probably won’t erase market nervousness about Spain, said Mark Miller, an analyst with Capital Economics in London.

“At face value it looks as if there is a reasonable safety margin given that up to 100 billion euros is potentially available,” he said. “Having said that, the extent of the economic situation in Spain could even deteriorate beyond what is being described as an adverse scenario.”

Some investors will likely still be nervous over whether the auditors’ reports discovered most if not all of the toxic assets on the balance sheets of Spain’s banks, Miller said. And their fears are compounded by concerns that Greece might still end up having to leave the single currency, further destabilizing the eurozone and especially Spain.

The results of the audits are good news for Spain because both companies came up with similar numbers and the overall figures were lower than some estimates of the banking sector’s recapitalization needs, said Gayle Allard, an economist with Madrid’s IE Business School.

“I think it’s a fantastic result because there was talk of needs of 70 billion euros to 80 billion euros and that the loan could have been for 100 billion euros,” she said.

Investors could still easily find something to scare them about the results, Allard said, “but I don’t think there’s any reason to do so.”

She added: “The audits have come in better than anyone has expected, there’s still some uncertainty, but if both of them are coming to the conclusion of those numbers we’ve got to be in the ballpark.”

Drought feared to worsen food shortages in N. Korea

Drought feared to worsen food shortages in N. Korea

A North Korean television program shows a dried up stream in western North Korea due to a prolonged drought in the area on June 14. A chief engineer in the area has commented that they are using well water to keep corn grown there alive. / Yonhap By Kim Susan Se-jeong Experts predict that the dry spell in North Korea will worsen food shortages by affecting cereal and vegetable crop production in the already poverty-stricken nation. They said the corn that was planted between mid-April to early May will be one of the crops most severely affected by the lack of irrigation. “North Korea will run into a big problem with this year’s corn harvest suffering from the severe drought,” said Kwon Tae-jin, a senior researcher at the Korea Rural Economic Institute (KREI). Kwon said that although the corn crops from the coming September harvest will not affect the current year’s food supply as they are a part of the following year’s provisions, it could lead to a price hike of other crops. The Food and Agriculture Organization of the United Nations (FAO) predicted that “more than 3 million vulnerable people are estimated to face a food deficit as chronic food insecurity continues throughout the country,” in a report released on Monday. The drought is also expected negatively affect yields of early cereal crops, potatoes, wheat and barley. According to the FAO report, the dry spell has affected approximately 17 percent of the nation’s total area under main season cultivation of food crops, including parts of the largest crop producing provinces, North Hwanghae, South Hwanghae, North Pyongan, South Pyongan, and parts of Pyongyang. FAO also reported the prolonged drought is taking place during the maturing age of crops when the need for water is high, and forecasted a lackluster harvest compared to previous years. “Although the FAO and the World Food Programme (WTP) forecast North Korean crops will have lower yields compared to previous years at 500,000 tons, in reality I expect the numbers to be about 86,000 tons lower,” said Kwon. The food shortages are a major concern for the North Korean government as it could lead to dissatisfaction with Kim Jong-un’s new rule. The young leader has emphasized the importance of food production on various occasions this year. A bad harvest and lack of provisions could harm his consolidation of power. In light of the North Korean dry spell, foreign ministry spokesman Cho Byung-jae said there were no definite plans to aid the country at present.

European carmakers may face probes for price fixing

European carmakers may face probes for price fixing

By Park Si-soo European carmakers may face investigations for allegations that they were engaged in price fixing, while not pricing in tariffs under the Korea-European Union (EU) free trade pact. After monitoring the prices of BMW, Mercedes Benz, Audi and Volkswagen vehicles, the country’s most popular imported auto brands in that order, officials at the Fair Trade Commission (FTC) said Wednesday there are reasons to allege that these companies have been involved in profiteering and collusion. FTC didn’t say whether or not it will conduct a probe but on the basis of findings, it reserves the right to do so at its own discretion. The automakers have lowered the prices of their cars by an identical 1.4 percent after the Korea-EU free trade agreement (FTA) went into effect in July last year and reduced the Korean tariffs on their products by the same 2.4 percent. Tariffs will be cut by another 2.4 percent starting next month. While drivers here had obviously hoped the price cuts to be more profound, the FTC appeared to be more interested in investigating the suspicions of price fixing. ``We collected information regarding the four carmakers to draw a broad picture of their sales and product circulation in the domestic market as well as evaluate the effect of the FTA,’’ said an FTC official. ``But we didn’t conduct on-site inspections or other investigative actions to confirm whether they breached the country’s fair trade law,’’ brushing away speculation that the watchdog is preparing a direct attack on the automakers’ pricing policies. BMW’s popular 520d passenger car is currently being sold for 63.5 million won (about $55,200), although the shaving in tariffs suggests that the price tag could be 620,000 won lower than that, the FTC said. The Mercedes Benz E200CGI is now available at 57.7 million won, although authorities prefer it to be 600,000 won cheaper. Representatives of the European carmakers accused the Korean officials of oversimplifying the pricing logic, saying it’s unreasonable to request the carmakers to cut prices at the same rate of the reduction in tariffs. ``We have saved 2.4 percent of import prices under the FTA, but we have suffered increased domestic taxes and other extra costs for transportation and other sales activities. Considering this, our policy of selling a car at a price 1.4 percent lowered than before the FTA should be justifiable,’’ said one official. In contrast to its European rivals, the U.S. automaker Ford has launched an aggressive promotion campaign in the domestic market and has lowered the prices at a sharper rate than the reduced tariffs under the Korea-U.S. FTA. Some models are available at even 5.25 million won lower than prices set before the KORUS FTA, which carries the same effect of 9.8 percent of reduced tariffs.

Kakao bets on games, social commerce

Kakao bets on games, social commerce

Lee Sir-goo By Cho Mu-hyun Although it is the talk of the town for launching a free Internet call service, Kakao Talk, the No. 1 mobile messenger operator, is still lacking where it counts most ― a viable business model. Its CEO Lee Sir-goo, obviously buoyed by a huge subscription base and recent attention for taking on the nation’s mobile carriers, doesn’t have an ace in the hole to instantly turn around its two-year losing streak. But he believes that a turnaround may come eventually, thanks to its over 50 million subsribers which has huge "potential." “We will launch a game platform next month after a beta test, and though we will give partner WeMade Entertainment preemptive rights as an investor, we plan to launch many new games from different providers,” Lee said during a recent interview. He leads Kakao together with Lee Jae-beom. “The delay in some of the projects is due to our desire to create a lasting business model for our services that are both profitable and significant,” he said. Also included in its step-by-step approach is a social commerce business with Thinkreals, which Kakao recently purchased. “We do have a social commerce model under development, which the employees of Thinkreals will assist in, but it will have a distinctive Kakao color to it,” he said. Lee was understandably passionate about the ongoing duel with carriers over its free mobile voice over Internet protocol (m-VoIP). He denied their claims that Kakao’s free service would eat away at their profit base, charging the carriers with foul play. “Telecommunications companies are intentionally lowering the quality of our Voice Talk (Kakao Talk’s free call service), which they have the technology to do,” said the CEO. “The decrease of quality (caused by them) I think has lowered the number of calls, while we receive user complaints.” “I don’t know if they intended it or not, but we are the ones taking the blame,” he said. “I am very thankful to LG Uplus for making a brave decision, which I think consider in the users’ interest. But they have not yet unblocked access.” m-VoIP is just the tip of the iceberg on the issue of network neutrality. Network neutrality is an assertion by content providers, such as Kakao Talk that they should be allowed complete use of networks whatever content transmitted. “Network neutrality is needed for many companies like us that do creative things to emerge. The most important thing in the mobile business is coexistence. Based on a stable and high quality network, the hardware industry and content providers like us benefit each other, which leads to more subscribers for mobile carriers,” Lee lamented. There is much speculation as to why Kakao Talk has developed and launched m-VoIP services. Some believe that it is attempting to end two years of losses. Lee says that there was absolutely no profit consideration for the free call service, while the real reason was that the company felt that it was a must-have, fun feature to make the messenger service more compelling. “Despite rumors that say otherwise, our main business is the messenger service and Voice Talk is secondary to that. If you try our Voice Talk, you know you log onto it through our messenger first, and it is one of many click-on items that enhance the chat experience.”

impale@koreatimes.co.kr

Women more tolerant of premarital sex than men: survey

Women more tolerant of premarital sex than men: survey

By Kim Jong-chan About 63 percent of unmarried men said if their marriage partner previously had sex with someone, they could not tolerate it, according to a survey Wednesday. Fifty-eight percent of single women, on the other hand, said even though their marriage partner had sex with one or two women, they could accept it, said the poll of 253 single men and 253 unmarried women. Twenty-two percent of female respondents said they could not tolerate a marriage partner’s premarital sex, the survey said. The poll was conducted by the marriage agency Bien Aller in collaboration with Feeling You, a marriage information agency, from May 25 through June 2 via email and the Internet. The result of the poll indicates that women are more tolerant of premarital sex than men. Sohn Dong-kyu, a senior official of Bien Aller, said that in recent years, both men and women have become more tolerant towards premarital sex. “But many men remain unchanged in their position that their spouse should keep her virginity until she gets married as she is going to carry a new life inside her,” Sohn said. When asked about the merits of partner’s premarital sex, 42.3 percent of male respondents and 43.1 percent of female interviewees cited more understanding of opposite sex as a merit, while 20.9 percent of males and 23.1 percent of females said it will help them not to burden the other. As for merits of partner having no premarital sex, 27.5 percent of male respondents replied it will help them have no prejudice about sex, whereas 22.7 percent said it will help them trust their partner more, the survey said. As to the same question, 32.2 percent of female interviewees said it will help them share the joy of first love, while 21.5 percent answered it will help them trust their partner more, it said. Jeong Su-jin, an official at Feeling You, said many women do not appear pleased with partner having no sex experience. If their partner had no sex experience, women usually tend to link it to his personality, human relations and physical ability among others.

Apple bid to stop Samsung smartphone in U.S. stalled

SAN FRANCISCO (AFP) ― Apple’s effort to stop South Korea’s Samsung from launching its newest iPhone challenger in the U.S. has been derailed by complex maneuvering in the patent war between the companies.

Apple backed off a last-minute request to block the Galaxy S3 model’s U.S. release after U.S. District Court Judge Lucy Koh warned that it would force a postponement of a June 21 hearing in the patent infringement case.

“If Apple seeks to file a motion to enjoin sales of the Samsung Galaxy S III, Apple will have to request a new hearing date from the court,” Koh said in written ruling issued late Monday.

The judge said that if Apple wanted to seek a temporary restraining order to block U.S. sales of the Galaxy S3 before June 21, she would have to postpone the hearing because of “the court’s limited resources.”

That means the court would be unlikely to act to block sales in the U.S. of the new phone, which could be launched as soon as next week.

Koh has gone on record in court reminding rival legal teams that she has other cases on her docket aside from the patent feud and does not want to become an “Apple vs. Samsung judge.”

The two technology giants are battling for supremacy in the lucrative smartphone and tablet market. They have launched dozens of legal actions alleging patent infringements against each other in 10 countries.

Samsung last week vowed to press ahead with the US launch of its newest smartphone, which it said will take place “later this month.”

Two days of court-directed peace talks between the chiefs of the two firms ended in San Francisco last month with no sign of a truce.

The Galaxy S III has so far been launched in more than two dozen countries, mainly in Europe and the Middle East. It will be available in 145 nations by July.

The third version of the Galaxy S series offers face-recognition technology and improved voice-activated controls as well as a more powerful processor that lets users watch video and write emails simultaneously.

It can detect eye movements and override the phone’s automatic shutdown if the user is looking at the screen.

Samsung shipped 44.5 million smartphones in the first quarter, exceeding the 35.1 million by Apple, market researcher Strategy Analytics said in April.

It said the Korean firm also overtook Nokia as the biggest maker of all types of mobile phone in the same period.

'Hottest' to artist: evolution of 2PM

'Hottest' to artist: evolution of 2PM

Members of K-pop boy band 2PM pose for a promotional photoshoot for their most recent release, “Hands Up,” in 2011. In their fifth year as one of the country’s most popular groups, they insist the best is yet to come, with great participation in the creative process. / Courtesy of JYP Entertainment This is the fifth in a 15-part series on the stars and trends of Hallyu, or the Korean wave, which is gaining popularity in Southeast Asia and Latin America. The Korea Times produces this special project in cooperation with the Korea Foundation and CJ E&M. — ED. By Kwaak Je-yup Dancing boy bands are a common feature in K-pop, but when it comes to fan loyalty, 2PM has few rivals. Catchy dance pop singles produced by their agency’s head producer JYP, intricate choreography that often takes a cue from acrobatics, handsome faces with slick hairstyles gelled to perfection and especially their signature chiseled torsos have driven quite a few fans around the world mad. In their hundreds of thousands, to put a real figure on it. Their first Asian tour, which ran from September to March and visited eight states, attracted nearly 160,000 people. Venues were packed every night. Last month, they sold out six consecutive dates at Tokyo’s iconic Nippon Budokan arena — every ticket was purchased under a minute after sale — amassing an additional 60,000. The six members’ regular meetings with their official fan club “The Hottest” look like a rock-infused church service; women let go of their inhibitions and find (momentary) salvation. They sigh, scream, cry, swoon and of course, sway with the massive group. Non-Korean fans visit the group’s home country and take pictures in front of their agency, JYP Entertainment, in Cheongdam-dong, southern Seoul, as well as billboards with their faces on it, like a pilgrimage. And when controversy arises, the group elicits scorn and fury like no other. Beginning as a seven-member act — with Junsu, Nickhun, Taecyeon, Wooyoung, Junho, Chansung and Jaebeom — the 2009 announcement of the last name’s removal from the group brought angry fans holding demonstrations for weeks. What is behind this ardent emotional connection? Even the members themselves want to know. “I’d guess that it’s the 2PM identity,” says Wooyoung, 23. “The six members have different individual characters. I don’t think we can be called a global group yet, but when we had our first Asian tour ... we couldn’t believe the love that all the Korean and other fans were showering us with, singing along to our songs in groups.” “I can’t properly describe the feeling on stage when the Cool Ray (lighting device aimed toward the audience) at the Budokan is turned on, which only happens at sold-out performances,” says Taecyeon, 23. “Someone told me that it’s really difficult to have the Cool Ray up. When it happens, you can see every face in the house, all the way up to the third floor. It made me unbelievably happy to see the 60,000 fans (over six nights).” If they were best-known for their precision and synchronized dance moves five years ago, 2PM now seem more at ease, enjoying themselves more and trying to let each personality reflect in music and performance — and perhaps even lose control. “Compared to our debut stage, we are definitely more relaxed,” said the rapper. “And we really know each other like family now. We can improvise a little now because of that.” “Before one performance, we actually agreed not to rip our shirts off,” says Junho, 22, referring to one of their signature attractions, “But as we were coming off stage, we noticed Taecyeon’s abs were showing. He explained it as an in-the-moment thing; he said he was high on the fans’ love.” The singer added that he and Junsu, one year his senior, are also increasing the level of participation in the creative process, for lyrics, music and the overall concept, among other things. “We are also saddened by the fact that our overseas activities prevent us from spending more time in Korea and seeing our fans here more,” says Chansung, 22. “Stay tuned for our next Korean album, which should be released around this fall. It will be better than what we’ve done before.” Even in this path of evolution, some things will remain the same — especially their now internationally famous physique. “All of us are really active and love sports. We like that ‘jimseungdol’ nickname that fans have coined for us,” says Nickhun, the sole American member of Thai and Chinese descent who turns 23 at the end of this month, referring to the Korean portmanteau between beast and idol. “Instead of a drastic change in image, we want to show the sides we haven’t fully explored yet with different staging styles and performances. We are constantly thinking of new ideas and concepts.” And he adds that there is more than just their bodies to be uncovered: “If you listen more closely to our music, there are softer, more sentimental tracks as well.” For more, visit www.enewsworld.com. Who are 2PM? The six members of 2PM — Junsu, Nichkhun, Taecyeon, Wooyoung, Junho and Chansung — all feature the good looks synonymous with K-pop groups. But since their debut in 2008, the group has attempted to distinguish themselves by adding a muscular physique and dynamic dance moves including nearly-acrobatic choreography to their act. So, while most K-pop boy bands are known as “kkotminam” or “flower pretty boys,” the 2PM are more known as “jimseungnam,” which roughly translates into “animalistic boys,” referring to their muscular frames. They first debuted in 2008 with a catchy tune, “10 Points Out of 10.” But it was with “Again and Again” that the group hit No. 1. Then following it, “Heartbeat,” which was a single from their first full-length album “1:59 PM” released in November 2009, soared quickly to the top of the charts. In fact, both the album and single climbed multiple music sales charts. When the group first debuted, they originally had seven members led by rapper/dancer Jaebeom. But after a troublesome posting on the Internet, he eventually left in 2009. The abrupt departure of its leader briefly put the group’s future on hold, but only briefly. The six remaining members regrouped their energy and music with yet another hit song “Hands Up.” Popular across Asia, the group recently wrapped up a successful performance in Japan. Each member also pursues activities outside music. Taecyeon and Wooyoung have starred in popular television dramas including “Dream High.” Nickhun appeared on the entertainment program “We Got Married” where he took part in a mock-marriage with Victoria of girl group f(x).

Samsung hopes China will help soften crisis

Samsung hopes China will help soften crisis

Choi Gee-sung By Kim Yoo-chul Samsung Electronics is preparing to make China the new center of its activities, hoping that a strengthened position in the world’s fastest-growing economy will provide a cushion to absorb business rockiness in shell-shocked nations in the West. To explore new business opportunities Choi Gee-sung, the former Samsung Electronics CEO who was recently promoted to overall strategy chief of Samsung Group, accompanied chief operating officer (COO) Lee Jay-yong, the son and heir apparent to Chairman Lee Kun-hee, on a trip to China. Although company officials declined to reveal details of the visit, the two met and talked with Chinese Vice Premier Li Keqiang. A company insider told The Korea Times that the Samsung executives hoped to talk about strengthening investment in China, including bulking up a semiconductor plant currently in the works in Xian. Also among topics is the state-of-the-art liquid crystal display (LCD) line in Suzhou that Samsung is building as Chang Won-kie, an executive with a wealth of experience in LCD also traveled with them. ``Market conditions certainly make it a tough time to increase our investment in the semiconductor plant. But that could be the price we need to pay as it would be important to maintain a good relationship with the Chinese government as how we do in that country just might define our future,’’ said the Samsung source. ``Chips and LCDs remain Samsung Electronics’ major cash cows and the visit to China reflects the company’s willingness to spend more to add muscle to its parts business.’’ Boasting dual strength in parts and finished products, the company is the world’s biggest maker of flat-screen televisions, mobile phones and computer memory chips and trails only LG Display in LCDs by a narrow margin. China surpassed the United States earlier this year as the world’s biggest market for LCD televisions. The country is also home to a number of up-and-coming companies in consumer electronics and mobile phones, with Huawei and ZTE among the companies gaining international recognition. A slew of technology companies including IBM, Cisco, Apple and Hewlett-Packard (HP) have accordingly been accelerating activities in China in recent years. During his meeting with Samsung executives, Li stressed that Beijing is encouraging foreign companies to invest more in the country's central and western regions. The Shaanxi regional government had earlier promised Samsung Electronics various incentives and administrative support for the planned Xian factory.

Mayor, tycoon, justice spied upon

Mayor, tycoon, justice spied upon

Prosecutor General Han Sang-dae walks down the corridor of the Supreme Prosecutors’ Office, southern Seoul, Wednesday, after the prosecution announced the results of its investigation into the government’s alleged surveillance of citizens. / Korea Times photo by Kim Joo-young Prosecutors fail to determine whether President was told about massive surveillance By Kim Rahn The government illegally monitored former Supreme Court Chief Justice Lee Yong-hoon, Samsung Electronics Chairman Lee Kun-hee and Seoul Mayor Park Won-soon, according to the prosecution Wednesday. Announcing the results of its three-month investigation into the surveillance of citizens critical of the government, prosecutors said a special unit of the Prime Minister’s Office (PMO) monitored big names in politics, business and society, moving beyond its original remit of inspecting civil servants. But its re-investigation failed to prove the allegation that Cheong Wa Dae masterminded the illegal monitoring and destruction of related evidence. The second probe was begun after former PMO staffer Chang Jin-soo made the allegation; the initial one was concluded in July 2010. The ruling Saenuri Party, which has apparently distanced itself from Cheong Wa Dae as it prepares for December’s presidential election, said it will mull over appointing an independent counsel to clear suspicions. The presidential office expressed regret over the involvement of its staff in the illegal monitoring, saying, “We’ll make efforts to ensure that such a thing won’t happen again.“ At a press briefing, a prosecutor at the Seoul Central District Prosecutors’ Office said, “Figures monitored by the PMO unit include the former chief justice, the Samsung chairman, the Seoul mayor, Gyeonggi Governor Kim Moon-soo and Incheon Mayor Song Young-gil. Former Trade Minister Kim Jong-hoon, Lotte Group Chairman Shin Kyuk-ho, former POSCO President Yoon Seok-man, ex-police chief Eo Cheong-soo, former MBC President Eom Ki-young, Buddhist monk Boseon and dozens of former and incumbent politicians were also targets. “But the monitoring on them was just collecting information through hearsay or Internet sources. The activity is not subject to criminal charges,” he said. The prosecution also found that former Knowledge Economy Vice Minister Park Young-june, who was at the PMO when the surveillance activities were taking place, ordered surveillance on officials of Ulsan Metropolitan City Government and several private companies in return for money from rival companies over a construction project. He also had the former Chilgok County head monitored. Park has already been arrested on charges of bribery in a separate case surrounding the Picity development project in southern Seoul. With the illegal surveillance, he had abuse of authority charges added. But prosecutors said they didn’t find evidence Park ordered the destruction of related evidence. Former presidential secretary for labor Lee Young-ho was indicted for the same charges as Park. He was also accused of ordering one of his juniors and former PMO staffer Chang to destroy evidence when the scandal first emerged. Prosecutors, however, didn’t find the source of 50 million won, which Chang claimed one of his superiors at the PMO gave him last year as hush money. Chang claimed not only the superior but also others including Lee Young-ho offered him money in exchange for keeping quiet about the illegal surveillance. Despite the new findings, the prosecution is expected to be criticized for failing to prove top-ranking government figures as being involved in the activities. Some denounced the prosecutors as “unwilling” because they didn’t question Justice Minister Kwon Jae-jin, who was senior presidential secretary for civil affairs when the presidential civil affairs office allegedly orchestrated the evidence destruction. They also only accepted written statements from former presidential chiefs of staff Yim Tae-hee and Chung Jung-gil. The two were suspected of having offered hush money to Chang and the others involved.

US trade deficit deepens after FTA with Korea

US trade deficit deepens after FTA with Korea

WASHINGTON (Yonhap) -- The U.S. deficit in trade with South Korea tripled in April, the first full month after their free trade agreement went into effect, the Commerce Department said Friday. The accord, called KORUS FTA, has been in effect since March 15. Officials in the both sides say that the implementation of the FTA is going smoothly. According to the department's April trade data, the U.S. recorded a deficit of $1.8 billion, with imports totaling about $5.5 billion and exports $3.7 billion. In March, the U.S. goods deficit with South Korea stood at $0.6 billion and in April last year the deficit was $1 billion. On the trade of cars and auto parts, which has drawn keen public attention, the U.S. deficit with South Korea jumped to $1.65 billion in April from $1.45 billion the previous month.

2PM ranks No.2 on Oricon chart

2PM ranks No.2 on Oricon chart

The members of Korean boy band 2PM pose at a press conference held in Budokan of Tokyo on May 30. Their fourth single “Beautiful” ranked second on Oricon daily chart. By Rachel Lee Korean boy band 2PM’s fourth single “Beautiful,” released on Wednesday, placed second on Japan’s Oricon daily chart with over 70,000 copies sold. The six-member group also released on the same day its first Arena Tour DVD entitled “Arena Tour 2011– Republic of 2PM,” which attracted an audience of some 100,000. The DVD topped Oricon daily music DVD chart and landed second on daily DVD overall ranking. Title track “Beautiful” was first introduced as the background music for a food advert in Japan. The single includes a song that 2PM member Junho wrote. The idol group plans to hold a “High Touch” event celebrating its fourth single, scheduled for June 9 in Osaka and June 16 in Tokyo. The group will also attend “MTV VMAJ (VIDEO MUSIC AWARDS JAPAN 2012)” with other famous Japanese artists and perform live. 2PM made its official debut in Japan in December 2010 with their first live event at the Ryogoku Kokugikan Gymnasium in the nation’s capital, a place well known for sumo wrestling matches. They are also popular in other Asian markets including China, Thailand, Malaysia and the Philippines.

‘Korea As Number One’

‘Korea As Number One’

Clyde V. Prestowitz, president of the Economic Strategy Institute, a U.S. think tank, has contributed an article, titled “Korea As Number One,” to the Foreign Policy magazine. Prestowitz writes on the global economy for FP. The following is the full text of his contribution. In 1979, Harvard professor Ezra Vogel's book, “Japan As Number One,” became a runaway best seller in both Japan and the United States. After a swing through Asia the past two weeks, it's clear to me that Ezra needs to do a rewrite with a new title: “Korea As Number One.” The South Koreans have long been confident that anything the Japanese can do, they can do better, but now they're proving it. In the 1970s-80s, the likes of Sony, Panasonic, Sharp, Toshiba, Hitache, NEC, and Fujitsu killed off RCA, Motorola, and the rest of the American consumer electronics industry and came close to killing off Intel and closing down the U.S. semiconductor industry from which Silicon Valley takes its name. Yet, today, it's the Japanese who are on the ropes as the likes of Samsung, LG, and Hynix have seized the high ground. Whereas Sony used to be the king of TV, now it's Samsung. Developed initially in the United States in response to military needs, the market for flat panel electronic displays was quickly taken over by the Japanese who out-invested the American producers and whose dominance of television and then of VCR production gave them an in-house source of demand for mass production and its related economies of scale. Indeed, the VCR is a classic example. America's Ampex developed the initial professional video tape recording technology, but never got a consumer product off the ground as the Japanese preempted the market through quick, massive investment. Because VCRs were massive users of semiconductor memory chips, the dominance of the VCR business coupled with use of the same tactics in the semiconductor industry gave the Japanese producers a strong position from which to attach the Silicon Valley chip makers. In 1984-85, many U.S. companies left the business and the Japanese became the dominant players in DRAMS (dynamic random access memories). Well, in the past month, both of Japan's main chip makers (Elpida and Renasas) have declared bankruptcy while leading flat panel maker Sharp is selling off pieces of itself to Taiwan's HonHai. Rudely pushing the Japanese aside are South Korea's Samsung, LG, and Hynix. Nor, is it only and electronics phenomenon. In the auto industry South Korea's Hyundai/Kia Motors is gobbling up market share in the U.S., European, Chinese, Indian, and Southeast Asian markets at the expense of the Japanese producers. The same goes for shipbuilding and even soap operas where the Korean shows are even all the rage in Japan. Perhaps most telling is the fact that South Korea's GDP per capita is now about 90 percent of Japan's and appears to be on track to surpass Japan's in the next couple of years. To achieve all this, the Koreans have used a well known, tried and true formula. For starters, they have worked like crazy, saved like crazy, and invested like crazy. At the same time, like the Japanese, they have rejected American ideas and advice about specializing only in what they do best and trading for the rest. Rather, they have concentrated on developing world class capabilities where before they had none. They did this by protecting and subsidizing in various ways new, infant industries like steel, consumer electronics, and semiconductors. But they also knew their own market was not big enough to yield the necessary economies of scale. So they have had to focus on exports and become competitive in global markets by keeping their currency, the won, somewhat under-valued and by often selling abroad at prices below their own domestic prices. The most successful Korean companies are either those like steel maker POSCO that was founded with government investment or those like Samsung that are giant family dominated conglomerates with extensive special relationships with the government and monopoly or quasi -monopoly positions in many interlocking industries and technologies. This is, of course, the classic Japanese formula. It is the formula Lee Kuan Yew of Singapore had in mind when the advised his countrymen to "Look East" for a model to imitate for their own development. It really works, and the Koreans are again proving that anything that works for the Japanese can be made to work better by Koreans. (Foreign Policy magazine)

Korea downs Qatar 4-1 in World Cup qualifier

Korea downs Qatar 4-1 in World Cup qualifier

DOHA, Qatar (AP) - Korea came from a goal down to beat Qatar 4-1 and get its campaign off to a rousing start in Asian qualifying for the 2014 World Cup on Friday. Qatar, the 2022 World Cup host, appeared poised for an upset when Yousef Ahmad Ali rushed past a defender and fired a shot that ricocheted in off goalkeeper Jung Sung-ryong in the 22nd minute. But the lead was short-lived thanks in part to some shaky defense from Qatar. An unmarked Lee Keun-ho got the first of his two goals four minutes later when he headed in off a corner. Kwak Tae-hwi put Korea in front with another header in the 55th before Kim Shin-wook connected in the 64th off a pass from Lee Dong-gook to make it 3-1. Lee Keun-ho netted his second in the 80th. Temperatures in Qatar were well above 40 degrees Celsius (104 F) but the air-conditioned Al Sadd made temperatures on the pitch manageable. ``Coming into the match, I thought it was going to be difficult for us,'' Korea coach Choi Kang-hee said. "There were issues regarding weather, time zone changes. But we got over it in our training sessions quickly. ``It was difficult to lift the tempo in the first half as the heat was affecting both the teams. But we adapted to the situation very well. Now my aim is to get my players to recover quickly and get them ready for the next match.'' Qatar, which had opened its campaign with a promising 1-0 win over Lebanon, must prepare for its match on Tuesday with Iran, which is one of the favorites to advance to the finals. The top two teams in both of the five-team qualifying groups will secure an automatic spot in Brazil. The third-place teams advance to a playoff. ``The players just need to forget today's game and concentrate about the Iran game,'' Qatar's Brazilian coach Paulo Autuori said. ``We're playing three matches in short spells. It's a big challenge. I think this is still a very good team. We played well in the first half. Mentally, we're still strong to overcome this defeat.''