Korea Focus 2014 03

Table of Contents

- Korea Focus - March 2014 - TOC - Politics 1. Realistic Approach to Attain ‘Unification Bonanza’ 2. Was the ‘Asian Era’ a Mere Mirage?

3. Vulgar Representative Politics, Frivolous SNS-based Politics 4. Communication Education is Basic to Political Development

- Economy 1. Hidden Track for Korea’s Economic Development 2. An Enigma about Exchange Rates 3. Cooperation between Korean and Japanese Entrepreneurs 4. Food Butterfly Effect of Chinese Origin and Risk Management 5. Revival of Economic Planning

- Society 1. Ahn Hyun-soo vs Viktor Ahn 2. Time to Build Educational Ladder 3. I’m a Sixth-Year College Student 4. In Support of ‘Tobacco Suit’ 5. [DEBATE] Adoption of Kyohaksa History Textbook

- Culture 1. The Age of Homo Empathicus and the Centenary of Park Soo-geun’s Birth 2. Andrew Yeom Soo-jung, Korea’s Third Cardinal 3. A Monthly Culture Day

- Essays 1. Korea’s Share Shrinks in the Division of Labor between Korea, China and Japan 2. Growth of Single Households and Changes in Consumption 3. Expansion of Social Capital is Essential for Advanced Nation Status

- Features 1. Visitors Shed Tears at ‘Comfort Women’ Exhibit in Angoulême

- Book Reviews 1. Convenience Stores, Miniaturized Sleepless Capitalism 2. Closer to the 500 Years of Joseon Dynasty

- Interview 1. Jeong Gap-cheol: “Only a fool could have attempted to make a fishing festival without the fish.”

- COPYRIGHT

- Realistic Approach to Attain ‘Unification Bonanza’ - Was the ‘Asian Era’ a Mere Mirage?

- Vulgar Representative Politics, Frivolous SNS-based Politics - Communication Education is Basic to Political Development

Realistic Approach to Attain ‘Unification Bonanza’

Shin Gi-wook Professor of Sociology Director, Shorenstein Asia-Pacific Research Center Stanford University

President Park Geun-hye aroused keen public attention at the beginning of the year when she said Korean unification would deliver a “bonanza” not only to Koreans but to every nation that has a stake in the Korean peninsula. Her statement was very timely and expedient in that it created a fresh wind to silence widespread skepticism about reunification, especially among younger generations, by highlighting the benefit of reunification rather than its cost. Taking advantage of the rare opportunity to heighten public attention to unification, serious debate needs to be conducted about diverse and comprehensive formulas to achieve the national goal.

Unification of divided countries generally occurs in three ways: 1) by force as exemplified by Vietnam and attempted by North Korea in 1950; 2) by absorption as in the case of East and West Germany; and 3) by negotiations following a civil war as experienced by North and South Yemen.

However, none of these scenarios are likely on the Korean peninsula. The use of force by either the North or the South would be practically impossible. Moreover, the United States, China and other powers would oppose the military option. Absorption presumes a sudden change in North Korea. But unlike East Germany, North Korea is a formidable military power that possesses nuclear arsenal. The intricate stakes of China and other powers in the peninsula cast doubt on a downfall in the North

leading directly to political unity of the two Koreas. The Yemeni model is doubtful as well, considering the lack of progress on a “loose form of federation,” agreed upon at the first inter-Korean summit held in 2000, and the confrontational tone since then.

Under such circumstances, is a unification-driven bonanza plausible? In this regard, Beijing’s moves in formulating a “Greater China” could be instructive. Since the late 1970s, when China launched its economic reform and open-door policies, it has actively induced overseas Chinese capital from Hong Kong and Taiwan and built a multinational economic network with Chinese communities in various parts of Asia. The effort helped pave the way for smooth integration of Hong Kong, despite different political systems, when it was recovered from Britain in 1997.

Similarly, economic, cultural and people-to-people exchanges between China and Taiwan have thrived. The two sides have achieved a significant degree of economic and social integration in spite of persistent diplomatic and political tensions. Some 80 percent of listed enterprises in Taiwan have entered the mainland China, and cross-strait tourism has surpassed seven million visitors annually.

Nearly two million people from Taiwan have settled in China and some 300,000 couples have tied the knot in cross-strait marriages. Furthermore, China is attempting to expand its sphere of influence into Vietnam and North Korea beyond Taiwan, Hong Kong and Macau.

These developments suggest that Seoul’s approach to inter-Korean relations can benefit from discarding its single-track approach, which is overwhelmed by political and military issues. While sustained efforts are needed to materialize a reintegration between North and South Korea, it is also necessary to pay acute attention to a reunification formula in a broader framework, as China has done.

Already under way are multifaceted development programs based on mutual cooperation and exchanges among China’s three Northeast provinces, the Russian Far East, Mongolia and North Korea. Noteworthy are the huge industrial and logistics centers under construction in the Chinese border city of Hunchun and North Korean port city of Rajin, connecting the inland regions to the sea, and progress on boosting multilateral economic cooperation along the lower course of the Tumen River. China is rapidly intensifying its influence in the region. If North Korea, already economically dependent on China, is absorbed into a “Greater China Economic Sphere,” South Korea would have little chance of attaining reunification on its preferred terms.

Much like China absorbing Taiwan into a Greater China framework or Chinese yuan bloc, we need to think of a grand design to embrace North Korea in a “Greater Korea” or “Greater Korean Peninsula

Sphere,” which would also include Northeast China, the Russian Far East and Mongolia. President Park’s recent proposal for a “Eurasia Initiative” can be actively pursued within the Korean framework, which should also accommodate the “Greater Tumen Initiative,” an intergovernmental cooperation mechanism supported by the United Nations Development Program (UNDP). The project currently involves South Korea, China, Russia and Mongolia. North Korea should be added. On the other hand, the Greater Korea concept should be formulated without any irredentist implications that would needlessly provoke surrounding countries.

Reunification of the Korean peninsula is the most important yet most difficult task facing the nation.

In order to fulfill the prolonged national yearning for unification, we need to build a creative and feasible unification strategy by mobilizing all powers of imagination and conducting wide-ranging discussions.

[ Dong-A Ilbo, February 15, 2014 ]

www.koreafocus.or.kr

Was the ‘Asian Era’ a Mere Mirage?

Park Doo-shik Editorial Writer The Chosun Ilbo

I have a shameful confession. In the latter half of the 1990s, I was Chosun Ilbo’s Washington correspondent. At the time, the biggest hallyu (Korean Wave) stars were pro baseball pitcher Park Chan-ho and pro golfer Pak Se-ri, both based in America. Korean Americans, just like Koreans back home, were enthralled by their triumphs. In their superb play, Koreans found a source of encouragement to withstand tribulations stemming from the so-called IMF crisis that beset the nation at that time.

When Park was playing for the Los Angeles Dodgers, there was another Asian-born pitcher on the team, Hideo Nomo from Japan. Park was the first Korean to play in the Major League Baseball and likewise, Nomo was a heroic pioneer for Japan. Nomo was five years older than Park and, as I watched them from a Korean perspective, the two were bound to compete against each other, whether they liked it or not. And I naturally cheered for Park.

However, my parochial mentality was ruthlessly shattered by American-born Koreans, who rooted for both Park and Nomo. They asked me why it’s wrong to cheer the “same Asian players.” I soon learned that many second-generation Koreans were more favorably disposed toward Asians. Unlike their parents, who wished their children would have as many white friends as possible and assimilate into the mainstream society, a greater portion of the second-generation Koreans tended to make

friends with Asians.

Such experiences aroused hopes that Asian nations would someday form a common community, like the European Union, in which they cooperate and compete with each other, leaving behind bitter feelings about the past. I believed the immense current would eventually wash away problems related to the brutal carnage that Japan committed during the last century. But, it seems that we will have to wait for some time.

The current Japanese political leaders claim that their school textbooks have been laden with a “masochistic historical viewpoint.” Japan has never properly admitted and apologized for wrongdoings it inflicted on its neighbors. How can Japan’s future generations, taught to be proud of their country’s imperial past through revisionist textbooks, cooperate with their neighbors to pursue an “Asian dream”? How can Koreans and Chinese consider Japan a regional partner?

Although it may now sound like the remote past, up until one or two years ago an “Asian era” was widely anticipated. Pundits, major think tanks, mass media organizations, and political and economic leaders across the world were busy debating how Asia would take the lead in the 21st Century. When the world was hit by the 2008 financial crisis, there were predictions that it was only a matter of time before Asia would become the global hub.

When the Asian era was discussed, its central axis was in Northeast Asia, where China, Japan and Korea constitute more than 20 percent of the global economy. Only two other regions, North America and Western Europe, are comparable.

However, all talks about an Asian era have vanished. The global community is now focusing its attention on Sino-Japanese friction. In response to a recent Japanese proposition that Prime Minister Shinzo Abe wishes to have summit talks with his Chinese counterpart, the Chinese Foreign Ministry, in a blunt public statement, said that Beijing does not welcome him.

This amounted to branding the top Japanese leader as persona non grata. Meanwhile, Chinese and Japanese ambassadors in third countries have dared to call each other’s country an “evil force” in public. Such diplomatic rudeness describes today’s regional situation in Northeast Asia.

What’s worse, Abe has escalated the war of words. At the World Economic Forum in Davos, Switzerland, he said that the current tension between Japan and China was a “similar situation” to the

rivalry between Britain and Germany on the eve of the First World War. The brusque statement stunned his audience of world leaders. He explained the comparison lies in the fact that Britain and Germany ― like Japan and China ― had a strong trading relationship, but in 1914 this had not prevented strategic tension leading to the outbreak of military conflict.

The promising vision of an Asian era must have been a mere mirage. Global reactions to the diplomatic war being waged by Beijing and Tokyo may well be summed up as countries sitting on the fence in expectation of windfalls. A British newsmagazine reported that nations are not taking sides, anticipating that the rivalry will spew out benefits.

For West European countries that have been concerned about the rise of a formidable Asian bloc, there is no reason to try to calm the rift between China and Japan. The report cited that the sole exception to the neutrality is South Korea, which is leaning toward China due to its protracted dispute with Japan about their tainted history.

This year marks the 120th anniversary of the Sino-Japanese War that broke out on the Korean peninsula and the centennial of the outbreak of World War I that led to the Second World War less than three decades later. As in the closing years of the 19th century, leaders of Korea, China and Japan are at a crossroads, where they must choose between the region’s co-prosperity and co-destruction.

At this juncture, a pessimist is apt to question whether the current stalemate indicates a “limit of Asia.”

[ January 29, 2014 ]

www.koreafocus.or.kr

Vulgar Representative Politics, Frivolous SNS-based Politics

Kim Byung-joon Professor of Policy Studies, Kookmin University Former Chief of Staff, Presidential Office of National Policies

Our politics is the problem. Generally speaking, politics is an act and a process of making rational and timely decisions for society. But our politics is a far cry from it. First, let’s discuss representative politics as an indirect democratic process. The latest regular National Assembly session failed to act on a single bill until a few hours before it ended. And that was possible only when ruling and opposition lawmakers reached a compromise and rammed through a handful of bills, none of which addressed important issues. What happened to politics in this country?

We wish that everything can be settled by scolding some politicians. But it’s not so simple. In fact, it is much more complicated than we would like to believe. The parliamentary system itself is problematic. Parliament always has a pile of policy issues to handle. Nowadays, about 3,500 bills are submitted to the National Assembly annually, an amount that was unimaginable in the past.

Parliament is a forum for dialogue and compromise. The house was never intended to handle anything in bulk. Not only has the sheer number of bills increased, but also interests reflected in them have become complicated. They also require a high level of expertise and speed to process. Is it possible to handle such a scale of complicated issues laced with confrontation and conflict speedily?

Given the circumstances, it would be possible to perform the feat only by ramming the bills through

the house. This is probably why the futurist Alvin Toffler said about 25 years ago that it was time for the parliamentary system, a relic of agrarian society, to go to the museum. He may have made the statement, probably mindful of the possibility of the growth of direct democracy. But his view still holds water.

However, it is not impossible to find ways to ease problems. For example, we could give more power to provincial and municipal governments, and revamp and streamline the conflict coordination mechanisms like a tripartite council of labor, management and government. Then parliament would be able to concentrate its energy on what it can do best. This is what other countries are doing.

But Korean political circles are indifferent to things like this. They are busy churning out self-serving theories, wallowing in their vested interests awarded by regional division and bipartisan monopoly.

They draw the line and do not hesitate to chastise their opponents. They criticize, and make a mockery of, their enemies, arguing, “My affair is romantic, but yours is immoral.” This unbelievable immaturity has been added to the already problematic system. What should we call it? Let’s call it vulgarity.

Participatory politics as a form of direct democracy also is a problem. It is little better than representative democracy. Especially, this is the case with the social networking services like Twitter, a mainstay for participatory politics.

Social media itself is a very valuable means for producing and sharing information. But it basically requires a fleeting moment of reading and response, with emotional attention. It also allows users to remain anonymous. In most cases, users engage in instant communication with little serious thought.

Therefore, distorted statements may appear and spread, and it is not easy to have rational and earnest debates. In other words, it’s rampant with a kind of frivolity.

We have seen this in the recent railway workers’ strike and the ongoing health care reform process.

Regrettably, some members of both the pro and con groups have injected dubious data into the debates. This kind of distortion can be under control, if people have high trust in the government, political circles and society as a whole, or if the door to the debate forum is flung wide open.

But this is not possible here. Our politics is tainted with the vulgarity of representative politics and the frivolity of participatory politics. We have a hard time concentrating on our work due to the ubiquitous uproar. Indeed, we are living in “dinocracy” (din + democracy), a far cry from democracy.

Under this kind of democracy, the purpose of politics ― the possibility of making rational and timely decisions for society ― is constantly impeded.

Be it for new politics or the long-touted constitutional revision, you had better ask right questions in a proper manner. How can we ensure making rational and timely decisions for our society? Good questions beget good answers. Before looking for new politicians, forming a new political party, or rewriting a certain article in the Constitution, you should be able to ask such a concrete and practical question.

That is the start of political reform. I suggest that, asking this question, you will agonize over changes in policy issues and the policy environment, limits of the parliamentary system and a new governance structure, improvement of the level of public debate, and changes in the SNS culture. We should save our politics from dinocracy.

[ Dong-A Ilbo, January 14, 2014 ]

www.koreafocus.or.kr

Communication Education is Basic to Political Development

Park Myung-seok Advisor, World Communication Association Professor Emeritus, Dankook University

No society is free from conflict. Persuasion and compromise are the pillars of democracy. Over the past year, however, we have seen politics evaporate amid ceaseless clashes between extremists.

Opposition parties went so far as to deny the results of the 2012 presidential election, overstating allegations that the National Intelligence Service meddled in the election campaign. Doctors declared a strike to oppose government plans to support remote medical treatment and allow medical institutions to set up for-profit subsidiaries. Labor-management conflict looms large, with wage negotiations expected in the spring. Hate- and curse-filled confrontation is prevalent. There is neither logical argument nor persuasion. All we hear are extreme “I-hate-you” responses.

To prevent social schisms, we need to teach people new communication skills. Among other things, we have an ingrained habit of speaking our hearts, instead of minds, which divides our society. We have not been trained in dual thinking to distinguish the speaker from the topic in our conversation.

We are not familiar with partial communication to accept the ideas of the other party, even though we don’t like them, and try to find solutions one by one through dialogue.

Grassroots democracy or parliamentary democracy seems a long way off, as long as we remain stuck in single-track thinking and pursuit of total communication, lumping the speaker and his thought

together and easily getting emotional rather than using reason when we do not like what other people say.

There have been attempts to get rid of our unique “politics of extremism” before. If they had received proper education in their childhood, many Koreans would have been able to acquire more natural communication skills. But they didn’t have such an opportunity. This is why politics of compromise and harmony has not been realized.

I conducted research in speech communication at an American university. I had opportunities to observe classes in middle and high schools, where I found teachers did not use cramming method.

Instead, they guided teams of students to identify through discussion the main points in the subject they had read about. The students often said, “What’s your point?” or “Let’s get to the point.”

The speaker quantifies necessary data to prove his argument. In this way, American students learn that they need proof based on facts to support their arguments and that emotional response, which has nothing to do with proof, has no place in debates. They become accustomed to separating the speaker from the topic because they are trained to present their ideas logically and analytically, and to find solutions that are “task-oriented,” not “people-oriented.” Thus, they learn to respect their opponent’s personality and views, even if they think differently, and maintain good personal relationships after heated debates.

Creating a society in which its members are considerate of others is a prerequisite for moving toward a refined advanced country. Democracy is not simply a system, but a way of thinking embedded in society and culture. Any democratic system would turn out to be a hollow slogan, unless there are democratic leaders and people who are ready to hold dialogue and seek compromise. Schools in our country should teach correct communication skills. We reap what we sow. We cannot expect win-win democratic politics without appropriate education and training.

[ Dong-A Ilbo, January 10, 2014 ]

www.koreafocus.or.kr

- Hidden Track for Korea’s Economic Development - An Enigma about Exchange Rates - Cooperation between Korean and Japanese Entrepreneurs - Food Butterfly Effect of Chinese Origin and Risk Management - Revival of Economic Planning

Hidden Track for Korea’s Economic Development

Kang Soon-hie Professor, Department of Vocation Study Kyonggi University

Some famous musicians, such as the Beatles, have provided unexpected pleasure to their fans with hidden tracks on recordings, some of which became so popular that they subsequently were packaged into separate albums.

During President Park Geun-hye’s recent visit to Switzerland, a European economic powerhouse, the hidden tracks of its creative economy came into the spotlight. Switzerland is well known to Koreans as a country that has Jungfrau in the Alps, which gave rise to tourism; a vaunted timepiece industry; and a cluster of international agencies based in Geneva. President Park’s visit shed light on a feature less known to Koreans ― Switzerland’s practical job training, a driving force behind its economic rise.

Job training is provided to 800,000 students annually. In a two-course system, they train at corporations for three or four days and attend classes for one or two days each week. As many as 60,000 corporations provide job-training programs and hire program graduates, organically linking job training and employment. Demand and supply perfectly match here. Through this virtuous circle, Switzerland has been maintaining a competitive edge in machinery, precision engineering, chemistry and finance in the world.

In Korea, practical job training is woefully inadequate and fails to meet the corporate needs.

Overshadowed by an unwarrantedly large number of high school students being admitted to colleges and universities, it remains among the hidden tracks that will have to be brought to light.

The most plausible alternative is a recently adopted program that combines work and studies. Students are encouraged to develop their creativity while learning a wide range of technical skills at workplaces and seeking to improve production processes and product quality. This type of job training is designed to equip students with the ability to apply diverse technical skills creatively to workplace problems.

The work-study approach will not bear fruit unless corporations make a point of training students into workers they need. In particular, small- and medium-sized companies that have in the past regarded work experience or the college diploma as the most valuable assets for employment will have to change their hiring practices.

What is demanded of an employee cannot be a diploma but an individual capacity for work performance. An employee with a high level of capacity should have a vision of being amply rewarded. It took Switzerland a long time to build its job training system. Korea will be no different.

Many problems have to be solved before it can sustain a work-study job training program and the nation becomes a performance-based society.

Korea is a skills powerhouse. It has ranked first in 18 World Skills competitions, an achievement Switzerland has yet to make. It also has high-quality human resources and corporations among its hidden tracks. It should not be too much of a problem for Korea to produce an album with its hidden tracks and turn it into a global hit.

[ Kyunghyang Shinmun, February 11, 2014 ]

www.koreafocus.or.kr

An Enigma about Exchange Rates

Lee Shin-woo Editorial Writer The Munhwa Ilbo

The so-called learning effect does not seem to apply to the behavioral pattern of Korean businesses when they respond to changes in the exchange rate of the Korean won and the Japanese yen. Nowhere to be found is any fearful memory of a psychologically shocking change in the rate. That is a real enigma.

There may be no fear if it never happened before, or it is not anticipated. But what if one makes the mistake of not learning a lesson after it has occurred two or three times already?

Korea has faithfully followed the footsteps of Japan in crafting a model for economic development and, in the process, fostered the same kind of businesses as its industrial backbone. The result is fierce competition in overlapping industries.

As such, a change in the exchange rate of the won and the yen is destined to have a direct impact on trade; a strong yen boosts the price competitiveness of Korean export goods and thus helps increase their shipment, but a weak yen naturally has the opposite effect.

Korea has experienced a major change in the exchange rate numerous times before. In the years following the 1985 Plaza Accord, the yen strengthened from 240 yen per U.S. dollar to as much as

120 yen, fueling double-digit growth in Korean exports in the latter half of the 1980s and a stock market bubble.

However, when the yen began to weaken in 1989, the won appreciated, crimping Korea’s balance of international payments. By 1996, the yen was down to 80 yen per dollar, buckling Korean corporations and pushing up Korea’s current account deficit to a record level. The next year, Korea had a financial crisis.

The third episode of yen appreciation occurred in 2011. The yen shot up to 70 yen per dollar. But this trend has recently reversed with the U.S. Federal Reserve starting to taper its bond-buying program, or quantitative easing, and Japan starting to expand its monetary supply. After surpassing 100 yen per dollar, the yen is moving toward 110 yen, and Korean businesses are whining again about how the weakening yen is eating into their exports.

Although the swings in the yen repeat themselves, Korean businesses have made few adjustments.

Like the grasshopper that spends warm months singing, they do not prepare for cold winter. While accustomed to the comfort of a low yen, they remain oblivious to future hardships. If they were not mature enough to learn a lesson from experience the second time, don’t they have to act differently this time round?

Since the end of World War II, the yen has climbed from 360 yen per dollar to 100 yen. Each time the yen strengthened, Japanese businesses strived aggressively to overcome the adversity and maintain a competitive edge. On the other hand, the Korean won has moved backward. One hundred yen, which was traded for 500 won in the mid-1980s, now fetches 1,000 won. The won had its value halved against the yen. It would be shameful and even unconscionable of Korean businesses to continue to complain about the exchange rate.

It would be a great mistake if the Korean government attempted to intervene in the foreign exchange market to drive down the won’s value and make Korean exports more price competitive. That would circumscribe the rightful role of the currency and threaten the overall economy.

In the early 1990s, Sweden attempted to forestall an economic crisis by devaluing its currency. But the move sharply raised consumer prices and wages simultaneously, while lowering the industry’s competitive power. That was what happened when Swedish businesses resisted urgent restructuring and technological innovation.

A flicker of hope was nonetheless detected during President Park Geun-hye’s New Year’s news conference. Asked about the impact of the weak yen on the Korean economy, she said her administration would work hard to improve the nation’s economic fundamentals so that changes in the external environment keep fluctuations at bay. It was the best economic prescription so far this year. Now Korean businesses will have to change for the better.

[ Munhwa Ilbo, January 13, 2014 ]

www.koreafocus.or.kr

Cooperation between Korean and Japanese Entrepreneurs

Rhee Chong-yun Executive Vice Chairman Korea-Japan Economic Association

Diplomatic relations are worsening between Korea and Japan. There is no telling when they will be able to hold long delayed summit talks. Their business communities are urging government officials to put relations back on track.

Based on their economic rationality, both Korea and Japan need to promote cooperation in a wide range of business areas. But the two countries, which have similar industrial structures, are waging cutthroat competition in overseas markets. They include Vietnam and the United Arab Emirates, where Korea and Japan fiercely bid for construction of nuclear power plants.

The two countries, given their small territorial size and their paucity of natural resources, have to import raw materials and turn them into export goods. As such, it is imperative they have stable overseas markets.

The countries in North America have the North American Free Trade Agreement. Countries in Europe have the European Union. But East Asia has no such economic community. Korea and Japan need to establish a strong partnership and, by utilizing this partnership, strive to build a regional economic community.

Both of them need to ensure a steady supply of resources at reasonable prices if they are to prosper by processing imported raw materials. For this, they need leverage to negotiate low prices and thus have cost competitive manufactured goods. Securing economic feasibility means ensuring profitability when one participates in resources development in resources-rich countries.

There are quite a few occasions in which the two countries need to secure economic feasibilities.

They may go one step further in this regard. They may spread their risk and exploit their comparative advantages in jointly building infrastructure in third countries and exporting capital goods to other countries.

In particular, Korean and Japanese corporations may promote joint projects in other countries, which will substantially contribute to both economies. An expansion in such partnerships will help tame competition, which is now deemed excessive, and help improve their respective terms of trade.

For example, Korea and Japan are now competing against each other for infrastructure construction contracts in Myanmar, particularly in free economic zones. Their efforts would be more effective and stable, if they pool funds from their respective export credit agencies and exploit their comparative advantages in launching joint projects. Then it would be easier to induce corporations to build factories in the newly constructed free economic zones.

It goes without saying that return on investment will be lowered when the free economic zones are not fully utilized. It is also possible for Korean and Japanese companies moving into the free economic zones to cooperate in manufacturing as well. Based on their cooperation in the zones, Korea and Japan may also launch joint development and construction of infrastructure logistics, urban centers, farmlands and energy sources.

Korea and Japan are both trying to pull themselves out of a protracted slump. If corporations of the two countries, with the backing of their respective governments, pursue partnerships in third countries, it will be of great help to their economies during this period of hardship. Runaway competition poses a threat to the economic prosperity of both countries because they have similar industrial structures, which is the very reason why they should earnestly push for bilateral cooperation.

[ Korea Economic Daily, January 24, 2014 ]

www.koreafocus.or.kr

Food Butterfly Effect of Chinese Origin and Risk Management

Kim Han-ho Professor, Department of Agricultural Economics and Rural Development Seoul National University

In Hong Kong’s Causeway Bay district is a small bookstore named Renmin Gongshe, or People’s Commune. Opened in 2002, the shop is popular among Chinese tourists, because it sells books banned in China. It is also a stop for curious non-Chinese tourists due to the 2008 Chinese milk scandal ― the adulteration of infant formula with melamine, an industrial chemical.

Realizing the demand for foreign-made baby milk powder among the Chinese, the bookstore began to sell baby formula, prompting Western news reports about its marketing agility. According to a report, sales of infant formula at the shop exceeded books twofold.

It was the effect of a butterfly flapping its wings in China causing a buying frenzy seen not only in the Hong Kong bookstore, but also stores in Australia and the United Kingdom. Demand became so high that some stores limited sales to Chinese so they would have enough for local residents.

More butterfly effects will be observed as Chinese people consume more meat as their incomes increase and farmlands shrink as China pushes for economic development and urbanization.

An increase in meat consumption has brought a structural change to agricultural production in China, boosting livestock production to 36 percent of the total turnover, with grains production standing at

18 percent. A notable consequence is that China, an exporter of soybean until the early 1990s, has turned itself into a soybean black hole, importing 80 percent of its needs.

China has strived to maintain self-sufficiency in rice, wheat and corn. But its dependence on imports, now standing at 5 percent, is increasing. In particular, China’s corn imports as animal feed are climbing rapidly as meat production and consumption soar. Its rising imports will have a tremendous impact on global grain markets.

The butterfly effects of Chinese origin on global grain supplies will pose a variety of risks to Korea, which is unable to boost production because of natural limitations and therefore must remain a major grain importer. Now the question is how to manage those risks and ensure steady grain imports. In particular, food processors will have to expand their capacity for risk management. But none of them, except a few large corporations, seem effective in this regard.

When they need grain, Korean food processors depend on major global traders that offer the lowest sale and shipment prices. But the trading companies do not assume risks. They pass risks on to producers and consumers and take the spread between purchase and sale prices as they fluctuate. This type of import practice has somehow been maintained in purchaser-oriented markets with no serious problem.

In addition, the majors could not take the Korean market lightly because a certain amount of grain will always be needed and purchased. The majors invested in the infrastructure of the entire value chain, ranging from production to shipment to consumers. Their revenue is directly linked to the infrastructure operation rate. In short, it is more profitable for them to continuously use the infrastructure than to restrain themselves in transferring price increases to consumers. That is the reason why Korean food processors have been able to secure stable supplies from the majors tendering the lowest bids.

A huge increase in China’s demand for grains, however, will dwarf the Korean market and reduce its importance to the majors, threatening the usual transaction process. With this in mind, the Korean government is seeking to foster grain traders of global scale. But it is easier said than done.

In addition to assisting in creating global grain traders, the government needs to help domestic food processors expand their capacity for risk management by gaining greater access to international financial markets. The capacity for risk management with the use of futures and other financial

derivatives is one of the essential assets for international grain traders.

Among proposals that merit consideration are to provide tax incentives to private businesses that have risk management teams; make loans available to small food processors seeking to exploit international futures and other financial markets in managing their risks; and have international finance experts help train risk managers. Korea needs to make these efforts as an increasing number of food butterfly effects are certain to originate from its neighbor.

[ Seoul Shinmun, January 20, 2014 ]

www.koreafocus.or.kr

Revival of Economic Planning

Kim Jong-soo Editorial Writer The JoongAng Ilbo

It looked clumsy and awkward. It looked like an improbable retro fashion. What I am referring to is the “three-year plan for economic innovation,” which President Park Geun-hye unveiled at her New Year’s news conference.

The title recalls the five-year economic development plans that her father, the late President Park Chung-hee, initiated. Her plan, in which “innovation” replaced “development,” is no less trite than the “five-year plan for a new economy” that President Kim Young-sam launched at the outset of his term.

Her plan also gave the strong impression that it was cobbled together on short notice. It was suspected of being hurriedly made in time for her news conference, instead of undergoing minute assessment and discussion. Such suspicion is warranted, given that her plan lacked details. Hyun Oh-seok, deputy prime minister for economic affairs, promised to flesh it out by the end of February.

Moreover, rumors have it that the plan’s duration was set at three years because the president has four years in her term but four was ruled out because the number in Korean is a homonym for the word for death.

Park’s economic plan boils down to “normalizing what is abnormal about the public sector” (more specifically, state corporations and organizations), turning her vision of a creative economy into reality and perking up domestic demand. Her administration says the three agenda items address structural and chronic problems that are hampering already weakening growth potential. The agenda items are not off the mark. It is highly worthwhile to implement them.

Still, it does not look appropriate to force the items into a new national economic plan. They do not mesh with each other. Moreover, the reform of the public sector and the pursuit of a creative economy are among the projects that her administration has been implementing since last year. Again, boosting domestic demand is little different from what it has been doing since the second half of last year to invigorate the sagging economy.

The plan is susceptible to criticism that the existing policies, none of which are either fresh or innovative, have been repackaged in the name of economic innovation. Nonetheless, people pin high hope on the plan. There are two reasons.

One is that the administration came up with a specific vision that resonates with people after spending a year of trial and error. Park presented numerical targets of 4 percent growth potential, a 70 percent employment rate and $40,000 per capita income.

In announcing these targets, she dropped her reluctance to commit to anything but a 70 percent employment rate. She did so despite the concerns that they might be perceived as a rehash of the election promise of her immediate predecessor, Lee Myung-bak, who had committed himself to generating 7 percent growth, increasing per capita income to $40,000 and making Korea the seventhlargest economy in the world.

When she changed course, the president was quoted as saying, “It is necessary to translate my vision of enhancing people’s happiness, which may not look clear-cut, into numerical targets.” True, she was not stringent about the targets. She had some reservations about the targets when she said she would lay the foundations for them. Yet, what was important was that she set growth as an agenda item, debate on which she had previously avoided.

The other reason is that people have high expectations about President Park, who has committed herself to upholding her principles and building public trust. Many believe she will achieve economic innovation, unlike her recent predecessors. All of them promised to reform the public sector ― and

all of them ended up retreating when they encountered labor union resistance. But there is prevailing belief that the Park administration will not cower before unions, as evidenced by its resolute handling of the recent railroad union strike.

It is the same with boosting domestic demand. Each administration promised it when the economy was in a slump. But few succeeded because the presidents’ full bearing was not evident. Here again, President Park promised to take charge herself. She promised to preside over ministerial conferences on deregulation. The presidential commitment is certain to make a difference.

It is anything but easy to lay the foundation for a drastic expansion of growth potential for the nation.

It needs to be done by any means. If an economic plan is to make that possible, it does not matter even if it is not in tight shape at the initial stage. All the Park administration needs to do is present a vision of growth and move forward to attain it. That is what people demand of the administration, which took a one-year detour before realizing it.

[ JoongAng Sunday, January 26, 2014 ]

www.koreafocus.or.kr

- Ahn Hyun-soo vs Viktor Ahn - Time to Build Educational Ladder - I’m a Sixth-Year College Student - In Support of ‘Tobacco Suit’ - [DEBATE] Adoption of Kyohaksa History Textbook

Ahn Hyun-soo vs Viktor Ahn

Baik Tae-ung Associate Professor of Law, William S. Richardson School of Law University of Hawaii

At the 2014 Winter Olympics, held in Sochi, Russia, Korean-turned-Russian short track speed skater Viktor Ahn, who was formerly known as Ahn Hyun-soo, won the gold medal in the 1,000-meter event after he earned the bronze in the men’s 1,500-meter event. It was a remarkable personal achievement for Ahn but also it was a very happy event for Korea, which proved the great potential of Korean people worldwide.

According to reports, Ahn decided to be naturalized as a Russian citizen after his participation in the 2010 Vancouver Winter Olympics was blocked due to the chronic factional strife in the Korea Skating Union. I think this is very regrettable. Watching Ahn add one more gold to Russia’s total medal earnings, an abrupt question came across my mind: What kind of changes would come to pass in the life of Ahn, who is now a Russian citizen?

Ahn’s Korean citizenship became automatically extinct the moment he acquired Russian citizenship.

Theoretically speaking, it has now become difficult for him to stay in the middle between Korea and Russia. This is the reason why changing citizenship isn’t simple. In return for his naturalization, Ahn was guaranteed very favorable treatment and after winning an Olympic gold medal, he is receiving enthusiastic applause from Russian people. However, the cultural environment that he will face as a naturalized Russian doesn’t look that easy.

At a news conference held after he won a bronze medal, Ahn answered reporters in Korean and had his girlfriend translate to Russian. Some Russians reportedly criticized him for not speaking their language. Ahn is very likely to experience various cultural barriers while living in Russia as a multicultural citizen.

Several days ago, at the University of Hawaii, an international conference was held on the theme of “Korean immigration and multiculturalism.” The conference brought together scholars and specialists from the United States, China, Korea and Japan, for discussion about “Who is Korean?” Among them were a fifth-generation Korean-Chinese scholar whose great-great-grandfather emigrated to Yanbian, a fourth-generation Korean-Kazak professor, and a third-generation Korean immigrant to Hawaii.

Generally, a discussion of immigrants arouses thoughts of first- or second-generation immigrants.

However, you should remember that there are a large number of Korean immigrants of third, fourth and fifth generations around the world, and their identities are quite different from what we expect.

Descendents of Koreans, who emigrated overseas in the early 1900s, have experienced tremendous changes to their identity because they have lived in situations totally disconnected from Korea.

One speaker at the conference ran the risk of causing consternation, saying, “If a Korean team were pitted against an American team in an athletic event, I would probably hold the American flag and cheer for the American team.” In view of the fact that ethic Korean communities abroad consist of diverse strata, it is no easy thing to draw up effective policies for them.

Korea is undergoing major changes in its domestic ethnic environment as well, as a result of increasing naturalization and multiculturalism. Yet, Article 5 of the Nationality Act stipulates that a foreign applicant for Korean citizenship must “have the basic knowledge of a national of the Republic of Korea such as language skills and understanding of Korean customs,” upholding a very exclusive position. Likewise, Korean society’s response also contains many elements of prejudice and discrimination against foreign migrant workers, multiethnic families or North Korean defectors.

We need to provide a more lenient multicultural environment to accept people with diverse ethnic and cultural backgrounds that are different from ours and enable them to settle down as members of our society. No one knows for sure whether or not Viktor Ahn will successfully assimilate into Russian society and live happily as a Russian, or return to his homeland as a Korean, or live in Russia but remain a Korean spiritually. I am very curious about how Ahn’s life as an immigrant in Russia

will unfold in the days ahead.

[ The Hankyoreh, February 17, 2014 ]

www.koreafocus.or.kr

Time to Build Educational Ladder

An Seok-bae Assistant Editor, Social Policy Desk The Chosun Ilbo

In 2009, when a parliamentary inspection of government performance focused on high private education costs, some ruling party lawmakers blamed foreign language high schools. “To enter a foreign language high school, parents’ economic power matters more than the student’s scholastic ability. Reforms should be made to virtually abolish these schools,” they huffed.

It was the second year of the Lee Myung-bak administration, a time filled with ideas to arrest skyrocketing private education costs. After restrictions on classes at private educational institutes were adopted, the abolition of foreign language high schools was broached. Those in favor championed equalitarian education. Those opposed said closures would be tantamount to nipping the bud of excellence. The controversy ended with a revision of the schools’ entrance exam system.

Nearly half of the top graduates of the Judicial Research and Training Institute in the past 10 years reportedly are from foreign language high schools. They have taken over the status of prestigious Kyunggi High School, which supplied the top students in the institute’s first 10 graduating classes. In legal circles, those from Daewon Foreign Language High School already outnumber those from Kyunggi High School. People who have watched the shift say, “What was to come has come.”

It is natural that outstanding students attend prestigious high schools and universities to prepare for

professional careers. Sound competition keeps a society healthy, and the survivors lead further development. This is why we shouldn’t fall into the trap of educational equalitarianism. However, there is something that prevents us from being comfortable with foreign language high schools.

During the equalization of school education, all of the high schools had the same tuition rate. Hence, outstanding students from poor households could afford to attend prestigious high schools and create “rags to riches” legends. Today, the tuition rates of foreign language and autonomous private high schools are three to four times higher than those of general high schools. Moreover, the cost of private classes and tutoring needed to enter these schools is rising steadily, breaking parents’ back.

American educational columnist Amanda Repley said, “In 2011, Korean parents spent $18 billion on private education and this is larger than the U.S. federal government’s anti-drug budget.” With public education’s failure to play its proper role, the economic power of households is exerting an increasingly greater impact on the scholastic ability of students. A professor of a university in Seoul, whom I met recently, said, “The gap in scholastic ability of students among schools and areas seems to be getting wider and wider.” He meant that the gap between general and special-purpose high schools, and even among general high schools, differs greatly according to location.

The 2014 entrance exam of Seoul National University clearly showed this trend. Other universities also expanded their screening to recruit graduates from foreign language and autonomous private high schools this year. If this trend holds, chances are very high that our society’s elite groups will be concentrated in certain academic and regional groups.

The problem of gap in students’ scholastic ability and their advance into society according to the financial level of households is serious. Therefore, the government should be aggressive in helping students from low-income families improve their scholastic ability. Educational policies for “consolation race” or “educational ladder” should be established. Instead of such window-dressing measures as the controversial “special screening for students from low-income families,” more earnest policies are desperately needed.

[ January 23, 2014 ]

www.koreafocus.or.kr

I’m a Sixth-Year College Student

Yoon Eun-jung Student, Department of Sociology Ewha Womans University

When I was a college senior I questioned the minister of labor at a public debate, where he had told students, “Youth unemployment has a lot to do with whether college students would lower their job expectations or not. Small and medium-sized enterprises are suffering from a shortage of manpower.”

My first questions were: “Currently, 50 percent of the small and medium-sized enterprises are in financial difficulties. Conglomerates are still enjoying the luxury of being the top dog in business dealings with their contractors, the underdogs, to a serious extent. Isn’t it necessary to improve this unbalanced corporate structure? What policy do you have to solve this problem?” Unfortunately, he had nothing to offer.

Then I asked, “Do you know anything about the term ― ‘a panoply of a GPA, certificates and skills’ ― as part of impressive CVs, which include a transcript, TOEIC or TOEFL scores, internship experience, computer skills, and second foreign language skills? In addition, college students are preparing to land jobs even by doing volunteer work overseas and attending interview skill tutorials.

You’re just telling us to lower our job expectations unconditionally, while paying no attention to what efforts we’ve made so far.”

That was two years ago. Now, I am a sixth-year college student, or more specifically a “moratorium student,” part of the reported 10 percent of all college students who are postponing graduation in search of a “decent” job. Of course, we have our own excuses, albeit lame.

We’ve come this far to fill in our CVs, though we’ve always felt uneasy, as we lack a sense of belonging. We’re under pressure to find a regular job at a conglomerate. In a sense, the real problem is that many of the next classes of college seniors may end up in the same unemployed situation.

The “moratorium group” is the product of polarized job prospects and youth unemployment.

Therefore, asking students to lower their job expectations doesn’t seem to be a good solution. Each sector should play its own role ― companies need to diversify their hiring, the government needs to create more new jobs, and the labor market needs to lower the barriers between occupational groups.

The economic structure is lopsided in favor of conglomerates, while unfair trade practices prevail.

It’s not fair to blame us only for not lowering our job expectations, while failing to improve the economic structure. The situation urgently requires the system and individuals, or the society and generations, to cooperate with each other to find solutions together.

In a way, the moratorium group’s presence is a kind of foregone conclusion. In a situation where there is demand only for a smaller essential workforce and the intellectual capital prevails, everybody had to exert all efforts to build their CVs unless they wanted to be eliminated by market forces.

Many college students cannot but postpone their graduation, because there is no other choice for them than to wait until they can get compensation for the money and time they have spent to build their CVs. The older generations, too, should think seriously about whether or not they are responsible for the birth of the moratorium group, rather than simply making glib calls for systemic reform. Structural improvement starts with everyone taking a step forward.

The New Year has begun, but the economic outlook remains dim and the job market is still too small for young people. We are very distressed to hear the older generations tell us to lower the bar of our expectations under these circumstances. This winter, we’re eating dirt as sixth-year college students and filling in our CVs. We, the moratorium group, are spending our winter vacation with a gnawing uneasiness.

[ JoongAng Ilbo, January 18, 2014 ]

www.koreafocus.or.kr

In Support of ‘Tobacco Suit’

Kim Myoung-joong Professor, Department of Business Administration Graduate School, Hyupsung University

During the first half of this year, the National Health Insurance Service is expected to sue tobacco companies to recover huge medical expenses it is bearing because of lung cancer and other diseases caused by smoking. The NHIS is concerned that the health of many people is deteriorating significantly due to smoking and that healthcare costs are increasing every year. Though a little belated, it is still right for the NHIS, the manager of health insurance and an advocate of public health, to file such a lawsuit.

In the past, a few similar lawsuits were filed by individual tobacco victims or their families, but the tobacco companies never lost. The court pointed out that smoking is a personal choice and said that other factors, including the environment and dietary habits, can also cause cancer. Unlike the earlier plaintiffs, the NHIS reportedly uses its database to directly link cancer cases to smoking. As such, the agency seems to be going in the right direction.

According to the health data on 1.3 million people that major research institutes compiled from 1993 to 2011, the incidence rate of laryngeal cancer, lung cancer and esophageal cancer among male smokers was 3.6 to 6.5 times higher than that of non-smoking men. In 2011, the NHIS paid 1.7 trillion won (approximately US$1.5 billion), or 3.7 percent of the nation’s total health insurance costs, to treat lung cancer and other diseases associated with smoking.

This amount is equal to the national total of monthly health insurance premiums. It could save half of the 1.73 million people who cannot benefit from health insurance due to premium payment in arrears. With that amount, the NHIS could increase healthcare compensation for hospitals by 6 percent; give more chances of preferred healthcare services to patients; cover upgraded hospital rooms; and meet medical costs for the four major diseases ― cancer, cardiac disorders, cerebrovascular diseases and rare incurable diseases.

In this regard, we should also pay attention to the problem of non-smoking medical insurance holders who bear the brunt of healthcare costs pushed up by smoking patients. It is thus desirable to have the tobacco companies bear the costs so that the money can be used to meet the growing demand for healthcare services.

In the United States, where tobacco is designated a narcotic, state governments won tobacco lawsuits for plaintiffs in 1998 and were awarded $246 billion (approximately 258 trillion won) in damages.

Given the circumstances, the NHIS will very likely have success with its own lawsuit against tobacco companies.

In January 2012, smoking victims filed a petition to the Constitutional Court for a judicial review of the constitutionality of the Tobacco Business Act which infringes on public health rights, claiming that the law violates people’s rights to healthcare, happiness, life and human dignity. It is worthwhile to note the psychological and behavioral problems caused by smoking and the addictiveness of smoking cigarettes, which are more addictive than marijuana.

From an economic point of view, tobacco smoking causes damage worth 9 trillion won every year, in addition to the increase in healthcare costs and socioeconomic losses. Under these circumstances, we also expect this lawsuit to encourage many smokers to quit smoking once and for all.

[ Kyunghyang Shinmun, January 18, 2014 ]

www.koreafocus.or.kr

[DEBATE] Adoption of Kyohaksa History Textbook

[PRO] Editorial The JoongAng Ilbo

[CON] Editorial The Hankyoreh

[PRO] Kangaroo Court-Style Justice against Adopters of a Textbook

Scores of high schools have come under fire for adopting the Korean history textbook published by Kyohaksa Publishing Co. They have been pressured by the provincial and municipal chapters of the Korean Teachers and Education Workers Union to immediately withdraw their adoption of the book, which is being condemned for rationalizing the activities of pro-Japanese collaborators.

The schools have been identified in social networking services, including Twitter, and have been inundated with phone calls from protestors. An official of the Gyeonggi Provincial Office of Education, whose superintendent is pro-teachers’ union, even threatened to conduct a special inspection of the high schools that have chosen the Kyohaksa textbook. So far, 12 schools have decided to reverse their decision to use the textbook.

The Kyohaksa textbook is only one of seven Korean history textbooks authorized by the Education Ministry for use in the new school year that begins in March. It was reviewed by historians under the

auspices of the National Institute of Korean History. The errors in the book were corrected under orders of the Education Ministry, just as those in the other textbooks were. The vice principal of a high school in South Gyeongsang Province, which adopted the Kyohaksa textbook, said, “I don ’t understand why we are blamed for adopting a textbook authorized by the Education Ministry.”

Indeed, this is by no means normal. The action of the teachers ’ union amounts to blackmail. Who dares adopt the book under these circumstances? Clearly, such pressure defies our country’s textbook publishing system. The government sets writing, reviewing and authorizing standards, and publishers act accordingly. Teachers and the curriculum council recommend a textbook, a school steering committee reviews the selection, and the school head decides to accept the recommendation or not.

In short, the schools have total autonomy on their choice of textbooks. This is the spirit of the Constitution that guarantees the freedom of thought and the laws of a democratic society.

Who gave the teachers’ union, civic groups, or netizens the authority to determine which textbooks are acceptable and which aren’t? They should immediately stop dispensing kangaroo court-style justice against the schools that have adopted the Kyohaksa textbook.

Paying attention to the importance of history education, the current administration designated Korean history as a required subject both in the classroom and in the College Scholastic Ability Test. But it’s wrong, if the government believes it has done its best. It should never tolerate the current situation where schools cannot make a free choice of textbooks, if it intends to provide correct history education. The Education Ministry should protect the schools so that they can choose textbooks on their own judgment.

[JoongAng Ilbo, January 4, 2014]

[CON] Textbook Rejected by Teachers and Parents

Less than 1 percent of all high schools have adopted the Kyohaksa textbook that rationalizes activities of pro-Japanese collaborators and dictatorships. This reflects coolheaded judgment by most schools about the textbook, which the government and the ruling party have strongly supported. Especially, the Education Ministry and the National Institute of Korean History should earnestly reflect on what they have done to understand what this outcome means. This is a very natural outcome, given the serious distortions and sloppy quality of the Kyohaksa textbook.

No teachers and parents would want to see their children learn incorrect history. Different viewpoints of history exist, but this textbook far exceeds the scope that the academia and the public can accept.

Those involved in the publication of this textbook didn’t hide their political intention of censoring the rightful criticism of the supporters of pro-Japanese collaborators and dictators. They aim to maximize and perpetuate the vested interests of the privileged few that should be judged by history. It is a shame to call this publication a school textbook, considering that the book, full of errors of various kinds, was published without being fully reviewed by scholars.

Students and parents have also taken issue with their schools ’ adoption of the textbook. Students of Dongwoo Girls’ High School in Suwon, Gyeonggi Province, have put up a poster on the school wall denouncing their school’s decision. Many people have blamed Hyundai High School in Ulsan for choosing the textbook, citing the fact that Chung Mong-joon, a ruling party lawmaker, had been chairman of this school’s foundation until recently.

Rumors had it that the heads of these schools pressured teachers into adopting the textbook against their will. Similar stories probably will ooze out from other schools if we delve into how they adopted the controversial textbook. Fortunately, Unjeong High School in Paju, Gyeonggi Province, has reversed its decision to use this textbook in the wake of parents’ protest.

Over the past months, the government, the ruling party, and right-wing groups have left no stone unturned to save the Kyohaksa textbook. In an unprecedented decision, the Education Ministry had the textbook reviewed and revised in a rough-and-ready way. After finally authorizing it, the ministry even allowed the publisher to revise its content again. They attempted to dilute the problems surrounding the textbook, making it seem that all textbooks have some problems. This clearly shows how they strived to make this textbook a major platform in their “war over history.”

In this process, the textbook authorization system has ended up in tatters and several lawsuits have ensued. Less than 1 percent adoption rate should not be taken lightly. We should learn a lesson from Japan, where 4 percent of the schools are now using revisionist history textbooks with distorted descriptions, compared to their negligible adoption rate 10 years ago. Victims of imperial Japan’s wartime military sex slavery have filed for a court injunction to halt the use of the Kyohaksa textbook.

We hope that the court will help eliminate the book.

[ The Hankyoreh, January 2, 2014 ]

www.koreafocus.or.kr

- The Age of Homo Empathicus and the Centenary of Park Soo-geun’s Birth - Andrew Yeom Soo-jung, Korea’s Third Cardinal - A Monthly Culture Day

The Age of Homo Empathicus and the Centenary of Park Soo-geun’s Birth

Ham Yeong-hun Lifestyle Desk Editor The Herald Business

The great artist Park Soo-geun was born exactly one hundred years ago. Although he died at an early age of 51 in 1965, I get the feeling he would be there to greet me at his house in Jeonnong-dong, Seoul, rising from a table laden with birthday food, not because he was a great artist but because he was a neighbor who was dear to me. His second eldest son Seong-nam relayed his late father’s words recently: “There is nothing extraordinary about how I feel about art. I just draw what is good and true about people in my village.”

What changed Park from a friendly neighbor to a great artist was the power of optimism. He led a dreary life in Yanggu, Gangwon Province, and Changsin-dong and Jeonnong-dong in Seoul, but his favorite expression when talking to his family or neighbors was “It’s OK.” One day when the rice he bought in exchange for his painting was stolen, he said, “It’s OK.” That is what he also said when someone broke in and stole a few of his paintings.

“It’s OK” way of speaking contains the message of love. Park saw love for children in the street vendors in “On the Road,” and hopes of settling down and making family in the women in “Washerwomen by the Stream.” In the three women chattering in “The Well” he comes face to face with the mother and daughters who are poor but happy. Park looked on the love shared by his

neighbors with a warm heart and expressed it on canvas.

He was so fond of the stream where the women washed clothes that seven of his works were drawn from similar angles. This is because he had courted his wife, Kim Bok-sun, by the stream. Park’s love for his neighbors, willingness to communicate and effort to reduce conflict is well shown in the way he looks at society.

The way he thinks about history, politics and the world is as such according to his son Seong-nam: “The Goryeo Dynasty handed over everything to Joseon. Joseon left everything behind to the Republic of Korea through the dark years of Japanese occupation. Political chaos after liberation led to the April 19 Student Revolution, which caused the May 16 coup, and this in turn gave way to Korea in the next stage.” He is of a contemplative nature regarding history as something that flows like water.

However, amid the flow of time he and his family also felt sadness because of poverty, the suffering of neighbors and politicians’ wrongdoings, and that is why Park’s paintings are anguished as well as endearing. The thick texture effect of his paintings may at first look gloomy. It does not take long, however, to figure out that the granite-like surface is being sublimated to Park’s empathy. Material abundance may have grown but the hurt has not disappeared. That is why the American futurist Jeremy Rifkin talks of the age of “homo empathicus” in which the newly coined human tries to protect others and react emotionally.

Park Soo-geun was the model homo empathicus way before he was ever a great artist. He practiced the art of empathy several decades ago, and thus he lives on. You may see Park Soo-geun live at Gana Insa Art Center in Insa-dong, Seoul, from February 17 to March 16. He will be welcoming anyone and everyone be they unwilling to compromise, always going against their word, or just in want of love and affection.

[ January 9, 2014 ]

www.koreafocus.or.kr

Andrew Yeom Soo-jung, Korea’s Third Cardinal

Kwak In-chan Chief Editorial Writer The Financial News

The term “cardinal” was derived from the Latin word cardo, meaning “hinge.” A hinge is a type of bearing that connects the door leaf to the frame. We cannot open and close the door without hinges.

Like a hinge, a cardinal helps maintain balance in the Roman Catholic Church. Cardinals under the age of 80 are eligible to vote for a new pope and run for the papacy. The incumbent Pope Francis was Cardinal Jorge Mario Bergoglio before he was elected pope last spring at the conclave (a meeting of the College of Cardinals to elect a new pope via the casting of secret ballots). He served in the Archdiocese of Buenos Aires in Argentina.

The first cardinal from Korea’s Roman Catholic Church was the late Stephen Kim Sou-hwan. He was appointed a cardinal at the age of 47, the youngest member of the College of Cardinals at the time.

His pen name was Onggi, which means the crude ethnic Korean pottery. Many early Catholic converts in Korea produced the coarse living ware or charcoal in the mountains to avoid persecution by the government of the Joseon Dynasty. The scholarship society founded in memory of Cardinal Kim also takes this name.

Andrew Yeom Soo-jung, 71, archbishop of Seoul, was named a cardinal on January 12. He is the third Korean cardinal following the late Stephen Kim Sou-hwan and Nicholas Cheong Jin-suk. A descendent of martyrs, Archbishop Yeom also comes from a family of pottery-making Catholics. His

great-great grandfather Yeom Seok-tae made a living from working in a potters’ village in Jincheon, North Chungcheong Province, before he was martyred along with his wife in 1850. The family was scattered thereafter.

Cardinal Yeom’s father moved to Anseong, Gyeonggi Province, where he raised five sons and three daughters. The cardinal is the sixth child and third son. His two younger brothers, Soo-wan and Sooeui, were ordained priests following in his footsteps, the first time in the history of Korean Roman Catholic Church for three brothers to serve as priests.

Cardinal Yeom was educated in Korea. Both his predecessors studied abroad, Cardinal Kim in Germany and Cardinal Jeong in Rome. Yoo Gyeong-chon and Jeong Soon-taek, who were appointed auxiliary bishops of the Seoul archdiocese last year, as well as Cho Gyu-man, a senior auxiliary bishop, have all studied abroad.

Meanwhile, Cardinal Yeom has dedicated himself to pastoral service at various churches in Seoul, including those in the parishes of Bulgwang, Dangsan, Itaewon, Jangwi, Yeongdeungpo and Mokdong. This seems to be aligned with the principle of Pope Francis, who underscored the importance of pastoral mission, saying, “I prefer a church which is bruised, hurting and dirty.”

Including the 19 newly appointed cardinals, the membership of the College of Cardinals all over the world has increased to 218, of whom 123 are eligible to run for the papacy. The Catholic population in Europe has steadily declined. In contrast, the Catholics are increasing quickly in Latin America, Asia and Africa. Pope Francis is the first pope from Latin America. There may soon be a pope from Asia or Africa, too.

[ January 13, 2014 ]

www.koreafocus.or.kr

A Monthly Culture Day

Seo Dong-cheol Editorial Writer The Seoul Shinmun

The National Museum of Modern and Contemporary Art, Seoul has already established itself as one of exciting downtown attractions since its opening last November. In the past two months, the museum has attracted a significant number of art lovers. But some of them might have felt a little burdensome about the admission fee of 7,000 won, especially family visitors.

Now, an opportunity has opened up for art lovers who want to visit. A long list of cultural facilities will offer free admissions on the last Wednesday of each month, which has been designated as “Culture Day� by the government. Art fans will be able to see major exhibitions like those of works by the U.K. painter David Hockney or the Chinese and Indian contemporary art shows free of charge, not to mention the permanent exhibitions at the National Museum of Modern and Contemporary Art, Gwacheon.

The first Culture Day which falls on January 29 is the last work day before the start of the four-day Lunar New Year holidays. The idea of designating a monthly culture day was proposed by the Presidential Committee for Cultural Enrichment. It is intended to help people enjoy the improved cultural environment in their daily lives by making culture more accessible. Most of the state-run and public cultural facilities, including national and municipal museums and royal palaces, will offer free admissions to all visitors on this day.

Visitors to the National Theater of Korea and the National Gugak Center will be treated to special concerts free of charge. In case of special events such as the Seoul Arts Center’s New Year Concert and the ongoing exhibition of 100 masterpieces of modern Korean art at the National Museum of Modern and Contemporary Art, Deoksu Palace, jointly prepared with private organizers, consultations are under way to offer 30 to 50 percent discounts on admission fees.

Private cultural and sports organizations are responding enthusiastically as well. Leading the way are the multiplex cinema chains CGV, Lotte Cinema and Megabox. They will give a 40 percent discount on tickets between 6 p.m. and 8 p.m. Initially, a total of 140 cinemas directly operated by the three major companies will participate.

There is also a plan to cut the prices of pro sports tickets in half on certain days, starting with the first Culture Day. This would affect the men’s basketball games in Busan and Goyang, a women’s basketball game in Cheongju, a men’s volleyball game in Cheonan, and a women’s volleyball game in Hwaseong. It is noteworthy that a large number of cultural facilities under the jurisdiction of government agencies other than the Ministry of Culture, Sports and Tourism are joining the move.

They include the national science museums operating under the Ministry of Science, ICT and Future Planning, the War Memorial of Korea under the Ministry of National Defense, the National Institute of Ecology under the Ministry of Environment, the National Maritime Museum under the Ministry of Maritime Affairs and Fisheries, the Women’s History Exhibition Hall under the Ministry of Gender Equality and Family, the Independence Hall under the Ministry of Patriots and Veterans Affairs, the Tax Museum under the National Tax Service, and the National Arboretum under the Forest Service.

This can be regarded as a result of the initiative of President Park Geun-hye to remove boundaries between government offices.

It may be an irony that the government-designated Culture Day suggests benefits of culture have yet to be equally distributed among the entire people. Though a humble beginning, I hope the monthly Culture Day will grow into a truly meaningful day with active participation by the people.

[ January 17, 2014 ]

www.koreafocus.or.kr

- Korea’s Share Shrinks in the Division of Labor between Korea, China and Japan - Growth of Single Households and Changes in Consumption - Expansion of Social Capital is Essential for Advanced Nation Status

Korea’s Share Shrinks in the Division of Labor between Korea, China and Japan Han Jae-jin Research Fellow Hyundai Research Institute

Qian Yongcan Researcher Hyundai Research Institute

I. Increased Cooperation and Competition Competition between Korea, China and Japan has intensified since 2000 as they rapidly increased exports. Together, they accounted for 27 percent of the global exports in 2012, up from 17.6 percent in 2000. In value terms, Korea recorded $463 billion, a three-fold increase from 2000; China $1.925 trillion, a nine-fold leap; and Japan $710 billion, a two-fold rise.

Head-to-head competition by the export powerhouses is seen in steel, auto and shipbuilding industries in particular. In the steel industry, Japan accounted for 11.2 percent of the global market in 2000, far ahead of China at 3.1 percent. But in 2012, the gap narrowed dramatically, with Japan dropping to 9.8 percent and China multiplying to 9.2 percent.

Similarly in the auto industry, Japan has been the leader, with double-digit share of the global market but Korea and China, both with single-digit shares, have made substantial gains. In shipbuilding, the traditional heated competition between Korea and Japan has given way to the rivalry between Korea and China.

II. Cooperation and Competition in Manufacturing Industries

1. Method of Analysis

This paper analyzes the competition and cooperation between Korea, China and Japan in the manufacturing sector. Using the World Input-Output Database (WIOD) figures from 2000 to 2011, the size of value added generated by each country’s production and exports/imports driven by a partner country were analyzed to determine the levels of rivalry and accommodation.

The study included 14 categories of manufacturing: food processing; textiles and fabrics; footwear and leather; timber; pulp, paper and printing; petroleum; chemicals; rubber and plastic; non-metallic materials; metal; machinery; electric and optical equipment; transfer machinery; and other manufacturing. The primary industry, mining, construction, and the service industry were excluded.

To examine intra-regional cooperation among Korea, China and Japan, the levels of dependence by industry on added value was examined first. Then each country’s contribution to generating value added within the region was analyzed to determine their competitive relationships. Lastly, the levels of relative gains by country were analyzed against the amounts of value added generated by individual field of manufacturing within the region as well as within each country.

2. Analysis of Cooperative and Competitive Relations in Manufacturing Industries

1) Intensifying Intra-regional Cooperation between Korea and Japan As Korea and Japan’s creation of value added became more dependent on China, cooperation between Korea and Japan increased while China’s intra-regional cooperation declined. As of 2011, Korea secured 6.8 percent and 11.5 percent of value added from Japan and China, respectively. Korea’s intra-regional dependence on value added reached 18.3 percent during the corresponding period, up from 12.9 percent in 2000, which indicates enhanced intra-regional cooperation.

In the same period, Japan’s dependence on value added created in Northeast Asia sharply increased to 8.8 percent from 2.8 percent, also reflecting heightened intra-regional cooperation. In contrast, China’s intra-regional dependence on value added shrank to 5.6 percent in 2011 from 7.4 percent in 2000, revealing a slight weakening of regional cooperation.

2) Trilateral Intra-regional Cooperation in Manufacturing Areas As for intra-regional cooperation, Korea was relatively balanced in maintaining cooperative relations with its neighbors in major manufacturing industries. In 2011, the highest levels of intra-regional

dependence that Korea exhibited were in textiles and fabrics (25.7 percent), and electric and optical equipment (23.4 percent). In other industries, Korea has had sharp increases in intra-regional cooperation. Korea’s rubber and plastic industry rose by 8.6 percent from 2000 to 2011 while the nonmetallic material industry and the textiles and fabrics increased 7.9 percent and 7.6 percent, respectively.

As of 2011, China showed the highest intra-regional value added dependence in electric and optical equipment (11.7 percent), and petroleum and chemicals (6.8 percent). However, from 2000 to 2011, the intra-regional value added dependence of China’s textiles and fabrics, petroleum and chemicals, metal, and electric and optical equipment fell by 7.1 percent, 2.7 percent, 2.4 percent, and 2.9 percent, respectively.

Japan’s intra-regional cooperation in 2011 centered on textiles and fabrics (27.8 percent) and on electric and optical equipment (16.4 percent). The intra-regional dependence rate of Japan’s transfer machinery manufacturing industry was only 4 percent in 2011, the lowest among the three countries.

3) Generation of Value Added in Domestic Market In value added generation in respective domestic markets, China far exceeded Korea and Japan in several manufacturing industries. In 2011, China’s textiles and fabrics, petroleum and chemicals, metal, and electric and optical equipment industries posted an increase of 14.7 percent, 3.7 percent, 3 percent, and 7.2 percent, respectively, compared to 2011.

Japanese electric and optical equipment (67.5 percent) and transfer machinery manufacturing (86.5

percent) outdid their Korean and Chinese counterparts. However, as the shares of Japan’s eight key manufacturing industries in value added generation sharply fell from 2000, its dependence on both intra-regional and extra-regional cooperation increased.

As for Korea, its capacity of creating value added fell behind Japan and China. Korea’s value added creation capacity has been on a continuous downward path in all seven manufacturing areas, except for the electric and optical equipment industry.

4) Intra-regional Industrial Competitiveness In 2000-2011, Japan possessed more manufacturing industries with high levels of contribution to intra-regional value added than Korea and China. As of 2011, Japan had six manufacturing areas showing high contribution rates, indicating its highest competitiveness in the intra-regional trade. In 2000, the added value contribution rates of Japanese manufacturing industries stood at: 44.1 percent of rubber and plastic, 51.3 percent of metal, 62.6 percent of machinery, 56.2 percent of electric and optical equipment, and 62.3 percent of transfer machinery, respectively. In 2011, the contribution rate of Japan’s non-metallic materials was 42 percent, narrowly edging out China’s 40.3 percent.

Consequently, Japan was found to maintain the highest levels of competitiveness in six out of the eight key manufacturing industries in the region.

China over the 11-year period boasted the highest level of competitiveness in the area of textiles and fabrics. The contribution ratio of China’s textiles and fabric industry to value added generation rose to 73.9 percent in 2011 from 51 percent in 2000, indicating a sharp increase in its intra-regional competitiveness. Furthermore, China has also seen its competitiveness in petroleum and chemicals

as well as metallic materials improve dramatically.

During this period, China’s petroleum and chemicals, metal, machinery, and electric and optical equipment industries rose by 10.5 percent, 6.9 percent, 7.2 percent, and 10 percent, respectively, in their contribution to intra-regional value added creation. They are now strong enough to threaten Korea and Japan.

Korea’s machinery and electric and optical equipment industries have had noticeable improvement in their competitiveness. Machinery rose 9.2 percent and electric and optical equipment went up 10.6 percent in the 11-year period. Also, transfer machinery posted a 6.3 percent gain. However, except for petroleum and chemicals, all seven other manufacturing industries lagged far behind their Japanese and Chinese counterparts in terms of intra-regional competitiveness. In particular, Korea fell far behind Japan and China in the areas of textiles and fabrics, rubber and plastic, and non-metallic materials.

With respect to the contribution to value added generation, Korea’s petroleum and chemical industry recorded 40 percent in 2011, down 4.8 percent from 44.8 percent in 2000. Despite the decline, Korea still enjoyed a competitive edge over Japan (30.6 percent) and China (29.4 percent) in this sector.

5) Intra-regional Industrial Profit Generation Although there were no noticeable differences in the total amounts of value added generated within the region by the three countries, Japan proved to be the biggest profit generator: in 2011 with $315.7 billion. China’s profit reached $271.6 billion and Korea had $259.6 billion.

However, when the amounts of value added generated both within the region and in the local markets were combined, China’s figures were eight-fold and three-fold more than those of Korea and Japan, respectively. Based on the total amounts of value added created by the eight key manufacturing industries in 2011, China gained $5.752 trillion, 7.8 times more than Korea’s $739.8 billion and 2.9 times more than Japan’s $1.986 trillion. In particular, with respect to value added generated in their own local markets during the corresponding period, China was found to have created value added almost 11 times and four times more than that of Korea and Japan, respectively.

In terms of intra-regional profit creation, both Korea and China made the least contribution in the non-metallic materials industry, and Japan in the textiles and fabric industry. Electric and optical equipment was the biggest contributor of all three countries. As of 2011, Korea made value added

contribution worth $31 billion to the non-metallic materials industry, Japan contributed $74 billion, and China $71billion. On the other hand, Korea made $81.6 billion of value added contribution to the electric and optical equipment industry, the area where all three nations made the biggest contribution among the eight key industries; China and Japan contributed $66.7 billion and $82.2 billion, respectively.

However, when the amounts of value added generated in individual domestic markets are added, Korea and China were found to have generated the largest profit in metallic materials, and Japan in petroleum and chemicals, respectively. As of 2011, the amounts of value added contribution made by Korea and China to their respective local metal industry were $201.1 billion and $1.338 trillion, respectively. In the corresponding period, Japan created value added amounting to $533.2 billion in its own petroleum and chemical industry.

In short, all three countries were found to create the highest profits in the areas of petroleum and chemicals, metal, and electric and optical equipment.

3. Comprehensive Assessment China’s competitiveness in the region has been rapidly growing. Meanwhile, Korea’s increasing dependence on China is eroding its industrial profits.

It was found that Korea is the most heavily dependent on value added generated within the region and China is the least. In other words, Korea was found to be the most cooperative intra-regional player in the eight key manufacturing industries among the three economies. On the other hand, China showed the lowest dependence on intra-regional cooperation in the corresponding industrial areas.

Intra-regional dependence of Korea’s textiles and fabric industry was 25.7 percent and that of electric and optical equipment was 23.4 percent, the two areas where Korea showed the heaviest dependence

on intra-regional cooperation, compared to their counterparts in Japan and China. In particular, given that China’s share in generating value added with Korea has grown, it can be assumed that Korea has strengthened industrial cooperation with China.

Japan and China achieved relatively higher contribution to value added generation within the region and in turn recorded higher profits than Korea. As of 2011, Japan exceeded Korea and China in value added generation within the region by the seven manufacturing industries except the textiles and fabric sector. Consequently, Japan had the most profit. In contrast, Korea fell behind Japan and China in terms of value added generation from the remaining seven industrial sectors, except petroleum and chemicals, thereby getting slimmer profits.

3. Implications It is imperative for Korea, China and Japan to strengthen intra-regional industrial cooperation to become more competitive outside the region as well as improve their imbalanced cooperative

relations. By addressing the imbalance, the three countries would be able to lay the foundation for further intra-regional cooperation, including establishment of industrial infrastructure and institutional systems. The three economic powerhouses need to work together to upgrade their global competitiveness by reinforcing intra-regional economic cooperation efforts such as exchanges in technology and human resources.

It is imperative for Korean manufacturers to become more competitive within the region. In order to improve their capacity to generate value added, which falls behind those of Japan and China, Korea needs to find ways to turn around the less competitive industries. Korea also needs to make continuous efforts to increase the share of locally produced parts and materials used in manufacturing by strengthening its R&D capabilities. In addition, by improving related institutions and infrastructure conditions, Korea also should lay a firm foundation that would enable domestic manufacturing sectors to grow, which is one of the most imperative and urgent issues Korea needs to tackle. Equally important, Korea needs to enhance its manufacturing sector’s global competitiveness by actively supporting overseas operations of small and medium-sized manufacturing enterprises with higher value added.

The three Asian economies need to resolve several issues. First, they should work together to ease the heavy dependence of regional industries on China in value added generation. In order to prevent this recent trend from further intensifying, Korea and Japan need to take steps to strengthen bilateral cooperation that will allow them to create value added fit to meet demands from China.

Second, the three economies need to seek ways to increase intra-regional cooperation by establishing a Korea-China FTA or a Korea-China-Japan FTA, in order to solidify a balanced division of labor.

They need to make efforts to actively utilize a platform designed to facilitate trilateral economic cooperation and consolidate institutional systems to upgrade their global competitiveness.

Third, the three economies need to develop areas such as maritime resources and environmental protection, in which they have a common interest, as part of efforts to further intra-regional cooperation. They will have to make efforts to facilitate mutual exchange and cooperation in the fields of non-conventional energy development, maritime transport, and ICT, and to work together for the development of next-generation technologies and new markets. They also need to build foundations for trade expansion and removal of technology barriers by specifying measures to implement cooperation for industrial standards. In addition, they need to further strengthen their mutual industrial relationships by improving trade environments through improvement of institutional systems and

infrastructure to increase direct investments.

Fourth, the three Asian economies need to make continuous efforts to fortify their competitiveness in the intermediary manufacturing area of parts and materials through enhanced trilateral cooperation.

Fifth, Korea should be ready to cope with changes in the cooperative framework involving the three nations in view of concerns that their competition for developing new markets will escalate. To that end, Korea should continue to develop new technologies that can create new value added by prioritizing the securing of new market-related technologies.

[ Weekly Economic Review No. 575, January 24, 2014, Hyundai Research Institute ]

www.koreafocus.or.kr

Growth of Single Households and Changes in Consumption Ko Ga-young Researcher LG Economic Research Institute

I. Introduction The portion of single households in Korea reached 23.9 percent in 2010, more than double the 9.0 percent in the 1990s and the most rapid increase in the 34-nation Organization for Economic Cooperation and Development (See <Figure 1>). The nationâ&#x20AC;&#x2122;s single household population still trails far behind those of North European nations, where it is far easier to live alone thanks to advanced social welfare system, as seen in Sweden and Norway (See <Figure 2>). Yet, the rise in single households will likely remain unabated in Korea along with the rest of the world.

The demographic trend will affect all aspects of life including politics, economy, society and culture.

In the economy, changes in consumption deserve particular attention. The consumption scale and pattern of those who live alone tend to differ from households of two persons or more.

II. Growing Tendency toward Single Households 1. Middle-aged Men and Elderly Women Increasingly Live Alone

Single-person household populations are mostly seen at both ends of the age spectrum. Young adults are attending college or working and still single. Later, after marrying and raising a family, they may be alone again if they are divorced or widowed and their children have all left home. Thus, the share of single households is high among individuals under 40 and over 70. In 2010, 1.6 million Koreans under 40 lived alone, the highest among all age groups, followed by 790,000 single households with those over 70. (See <Table 1>).

On the other hand, the fastest growth in the number of single households is witnessed among men in their 50s. Single households in this population segment nearly tripled from 100,000 in 2000 to 290,000 in 2010. The growth of single households of middle-aged men is due to the increased ratio of unmarried and divorced men. Among men in their 50s, the share of unmarried men increased from 1.1 percent in 2000 to 3.4 percent in 2010. The increase of womenâ&#x20AC;&#x2122;s participation in economic activities and the increase in divorces caused by changes in the perception of marriage also inflated

the number of single households with middle-aged men. Among 50-something men, the share of divorcees rose from 3.3 percent to 7.6 percent over the cited period. As more women tend to live with children after divorce, the increase of divorce leads mainly to the growth of single households of middle-aged men.

Meanwhile, as fewer and fewer people tend to live with their parents after marriage, households with widows and widowers living alone have increased sharply. Particularly, the number of single households of aged women is increasing rapidly, which is attributable to their longer average lifespan.

The number of single households of women over 70 stood at 650,000 in 2010, growing rapidly from 310,000 in 2000.

2. Single Households Spend More than Two-person Households

A rise in single households tends to increase overall consumption. Purchases that can be shared such as durable goods and homes are bought individually. Also, items that typically would be purchased in bulk by two or more persons are bought repeatedly by individuals living alone.

Per-capita consumption of single-person and two-person households stood at 970,000 won and 770,000 won on average a month, respectively, in 2012, indicating single households spent 1.3 times more. However, simply comparing nominal figures does not give the complete picture. Differences in sex and age composition as well as income levels can have an impact. For example, the share of low-income, old-age households is higher among single households, making their consumption expenditure relatively lower. Also, it can be problematic to compare the consumption of households

with young children with that of single households.

This study compared the consumption scale and composition of single households, item by item, with those of two-person households of the same age group that have no children. It calculated per-capita consumption by adjusting differences in sex, age and income between the two types of households.

In 2012, single householdsâ&#x20AC;&#x2122; disposable income and consumption stood at 1.46 million won and 1.14 million won, respectively, and their average propensity to consume was 77.8 percent. On the other hand, the per-capita disposable income and consumption (before adjustment) of two-person households stood at 1.39 million won and 1 million won, respectively, and their propensity to consume was 71.8 percent (See <Figure 3>). Assuming the income of two-person households is the same as that of single households, their per-capita consumption amounts to 1.05 million won. In other words, overall consumption will increase by 8 percent when a two-person household becomes a single household.

The age band that showed the biggest consumption gap between one-person and two-person households was the under-40 group (See<Table 2>). The monthly consumption of under-40 single households averaged at 1.4 million won, 25 percent higher than the 1.12 million won in per-capita consumption of the under-40 two-person households. Among the over-50 households, too, single

householdsâ&#x20AC;&#x2122; consumption was 8 to 18 percent higher. However, consumption by single households in their 40s was 10 percent lower than that of two-person households in the same age group. Fortysomethings living alone have passed the average marriage age and are likely to remain single. Unlike 30-somethings living alone, who enjoy consumption to the full before marriage, those in their 40s, who are likelier to continue to live alone, tend to be thrifty in order to prepare for old age.

III. Consumption Pattern of Single Households Single households differ from two-person households not only in their consumption scale but also in what they purchase. The items on which single households spend most sharply compared with those purchased by two-person households as follows (See<Figure 4>).

1. Housing Cost Shows the Biggest Difference

Single households spend 62 percent more per capita than two-person households on housing, the biggest difference among all items surveyed. But while singles are usually paying monthly rent, twoperson households who own their home or have a mortgage incur indirect housing costs, too.

The asset value of houses was also higher in single households in per-capita terms. According to a 2012 household financial survey, the average asset value of single householdsâ&#x20AC;&#x2122; homes was 140 million won, 48 percent higher than the 94 million won in per-capita asset value of two-person householdsâ&#x20AC;&#x2122; homes (See <Figure 5>).

The reason the single householdsâ&#x20AC;&#x2122; housing cost is higher is because their per-capita living space is larger. Rooms in a two-person household are shared, diminishing the space apportioned individually.

According to a 2010 population and housing census, the average residential space of single households was 70 square meters, 75 percent larger than the 40 square meters in per-capita residential space of two-person households.

2. Heavier Consumption on Liquor and Tobacco

Next to the housing expense, the second biggest difference appears in liquor and tobacco consumption. Single householdsâ&#x20AC;&#x2122; consumption of alcohol and cigarettes was 50 percent higher than per-capita consumption of two-person households. There were differences of 30 percent and 64 percent in liquor and tobacco consumption, respectively (See <Figure 6>).

Particularly, liquor and tobacco consumption of male single households was larger than the total consumption of couple households. Considering men tend to drink and smoke more than women, men who live alone consume more liquor and tobacco than married men.

There can be several reasons for the heavy consumption of liquor and tobacco by men who live by themselves. Loneliness is the main culprit. According to a U.S. research, loneliness leads to activities that cause premature death, such as alcoholism or smoking 15 cigarettes or more per day.

On the other hand, after getting married, menâ&#x20AC;&#x2122;s drinking and smoking tend to be influenced by their wife.

3. Greater Preference for Dining Out and Processed Food

People who live alone like to dine out or buy takeaway food rather than cooking at home. It seems this is because cooking one meal is inefficient in terms of time and cost. Not only is it easy to buy food for one serving, but it can be more economical to dine out or buy takeaway food, including lunch boxes and side dishes. The average dining-out expense of single households was 170,000 won, 27 percent higher per-capita than two-person households. Also, the formerâ&#x20AC;&#x2122;s consumption of processed food, such as instant frozen food and precooked side dishes, was 51 percent more than the latterâ&#x20AC;&#x2122;s (See <Table 3>). By age, the increase of dining-out cost was highest among single households of the under-40 group. This seems attributable to younger generations having active social gatherings and relationships.

Particularly, male single households’ dining-out spending exceeded that of female single households. Male single households’ average dining-out cost was 220,000 won, while that of female single households was 120,000 won. On the other hand, grocery consumption was higher among female single households than male single households.

4. Single Women’s Spending on Personal Care Goods and Services

The purchase of clothes and consumption of hairdressing goods and services (cosmetics and beauty parlor costs) were also higher among single households, which is due to heavy spending by female single households. Clothing purchases by single households was 12 percent higher than the percapita amount of two-person households, and hairdressing spending of the former was also 10 percent higher than the latter’s. Clothing purchases were particularly high among young women.

The monthly clothing expense of under-40 female single households was 157,000 won, almost approaching the 190,000 won in total clothing expense of couple households (95,000 won for each) in the same age group (See <Table 4>). On the other hand, the clothing spending of male single households was half the amount of female single households.

Beauty-related spending is also higher among female single households. Female single households’ monthly hairdressing expenditures were 57,000 won, while comparable per-capita consumption of two-person households was 36,000 won, indicating women tend to reduce spending on hairdressing after marrying. Single women spend more on clothes and hair care as they tend to be employed and are out socializing or dating.

5. More Socializing to Avoid Isolation

As single households increase, social connection-oriented consumption is also growing. For people who live alone, social networking services are an easy means to maintain relationships. Single householdsâ&#x20AC;&#x2122; communication expense was 10 percent higher than that of per-capita spending of twoperson households (See <Figure 7>).

Meanwhile, singles do not communicate with others only through on-line networks. Socializing expenditures, which comprise expenses needed to maintain ties with friends and relatives, was 11 percent higher among single households than among two-person households. Also, the high diningout costs of single households can be interpreted as a result of their active social life.

6. Men Prefer Physical Exercises, Women Like Cultural Services and Pets

In overall expenditures on entertainment and culture, there is not a big difference between single households’ consumption and that of two-person households. First, single households tend to do exercise and enjoy cultural life, including music and fine arts, more than two-person households do.

Single households’ expenditure on exercise was 16 percent higher than per-capita consumption of two-person households, and the former’s consumption of cultural services was 33 percent higher than the latter’s.

However, there was a gender difference in spending on physical exercise and cultural services.

Spending on physical exercise was higher in male single households, and the opposite was true in expenditure on cultural services (See <Figure 8>). By age, younger generations have significant effects on increasing the consumption of both exercises and cultural services as a result of living alone, while the aged group does not. That is, Korea’s senior citizens who live by themselves seldom appear to enjoy leisure activities, such as physical exercise and cultural events. Among the over-70 single households, 51.5 percent do not enjoy any leisure activities.

Raising pets can help ease loneliness. Pet-related spending was 69 percent higher among single households than two-person households. Particularly, female single households’ pet-related

spending is higher than that of two-person households.

7. Men Seldom Travel Alone

The general assumption is that people who live alone can freely enjoy leisure activities and travel a lot, but single householdsâ&#x20AC;&#x2122; travel budget is not very high. Single householdsâ&#x20AC;&#x2122; travel expenditure is 24 percent lower than per-capita consumption of two-person households (See <Table 5>).

Particularly, male single householdsâ&#x20AC;&#x2122; travel spending was very low compared with female single households. The monthly spending on travel by male single households was only 15,000 won, less than half of the 34,000 won by female single households. On the other hand, the monthly travel expense of under-40 female single households was particularly high with 72,000 won. This is because single women are less bound by work and family ties than married women or single men.

Young women are more inclined to travel by themselves through package tours or with friends.

On the other hand, single households of the elderly, both male and female, spend very little on travel. This comes in stark contrast with Japan, which experienced the increase of single households earlier than Korea. In Japan, travel consumption increased along with the increase in single households, as demand for solo traveling increased in the senior population. In Korea, on the other hand, couples still travel together in general.

8. Higher Demand for PC, White Appliances and TV

Since durable home goods are shared by family members, per-capita expense declines as the number of household members increases. The gap widens depending on the kinds of goods.

Compared with two-person households, single householdsâ&#x20AC;&#x2122; consumption was 38 percent higher for personal computers, 16 percent higher for white goods such as washing machines and refrigerators, and 6 percent higher for TVs (See <Figure 9>).

As the functions of personal computers diversify and their sizes get smaller with the development of laptop computers, single households are more likely to own them now than before. The consumption of white goods is also higher, although it lags behind that of PCs. Manufacturers are now selling smaller appliances geared for single consumers at downward prices, stimulating buying plans.

On the other hand, people have become increasingly able to watch broadcasts on PCs and other mobile devices, so the demand for TVs by single households will likely be limited.

9. Young Single Households Prefer Pharmacies to Hospitals In medical care and health services, single householdsâ&#x20AC;&#x2122; expenditure is 8 percent lower than the percapita expenditure of two-person households. Although expenditures on simple medical care such as prescription drugs are higher among single households, they incur lower costs for outpatient treatment and hospital stays. However, the hospital costs of singles in their 50s or older is noticeably higher than those in their 30s and 40s. (See <Table 6>).

Singles tend to take medicine rather than visiting hospital when they are sick. This tendency seems to be attributable to their relative negligence of health care before marriage, just as the young single householdsâ&#x20AC;&#x2122; consumption of liquor and tobacco is high. Meanwhile, the high expenditure on hospital services among elderly single households seems to reflect the reality that they canâ&#x20AC;&#x2122;t help but depend on hospitals as they have no caregivers at home. The consumption of hospital services among over-70 single households was 20 percent higher than that of two-person households in the same age group.

10. Demand for Private Cars Sharply Falls As seen earlier, single householdsâ&#x20AC;&#x2122; consumption is bigger than per-capita consumption of twoperson households in home appliances. However, in other categories of durable goods, such as automobiles and furniture, single householdsâ&#x20AC;&#x2122; consumption is lower by 31 percent and 19 percent, respectively, than that of two-person households.

Single people are more inclined to use public transportation until they marry. Only 32.6 percent of single households own a car, compared to 69.5 percent among two-person households. Single householdsâ&#x20AC;&#x2122; monthly spending on public transportation, including fees for subways and buses, amounted to 33,000 won, nearly double the 17,000 won of per-capita spending in two-person households (See <Figure 10>).

Also, living alone reduces the need for furniture that is bulky and not used much. Apartments for singles in Korea often do not have formal living rooms, reducing the need for sofas. Also, since most singles live at rented homes, they tend to move frequently and naturally have less interest in buying furniture.

IV. Consumption in 2020 and Changes in Population and Household Composition According to the estimation of households in the future by Statistics Korea, the portion of single households is forecast to reach 29.6 percent in 2020 and 32.7 percent in 2030.

The growth of single households is expected to offset the contraction in consumption resulting from population aging. Given changes in consumption due to changes in household composition by 2020, population aging will reduce consumption by 1.6 percent compared with 2012, but the increase of single households or the decrease in household members will have the effect of increasing overall consumption by 3.1 percent (See <Figure 11>). Accordingly, changes in population and household composition will have the effect of pushing up overall consumption by 2.1 percent.

The growing tendency toward single households, along with population aging, is expected to have a powerful effect on the consumption of specific items. According to our estimation of consumption due to demographic changes by 2020, sharp increases in spending will likely be seen in housing maintenance and renovation, grains, fresh food, medicines and medical supplies, flowers, and pet food and supplies. In contrast, consumption of education, childbirth-related services, baby products, high-calorie food, and information-communication equipment will likely saw steep declines (See <Table 7>).

Expenditure on home maintenance and renovation is expected to have the biggest jump as the trends of single households and population aging accelerate. Elderly people tend to own their homes and will make repairs rather than move. Housing-related demand is estimated to increase 21 percent by 2020 compared with 2012.

Consumption of grains, fresh food and medicines will also likely increase sharply, due to single households and population aging. Demand for flowers, pets, land transportation and home appliances will also be affected by the single-household trend.

On the other hand, consumption of education as well as childbirth and baby goods is expected to see a decline of 10 percent or more, as the result of population aging. Likewise, demand will shrink

considerably for information-communication equipment, automobiles, and physical exercise and entertainment services.

As the rapid progress of tendency toward single households will inevitably result in the change of consumption structure, not only businesses but the entire nation will need to prepare for it. Unless Korea improves its systems and infrastructure that can match the speed of movement toward single households, the nation may likely run into social and economic problems.

The supply glut of large apartments can be cited as an example of failure to cope with movement toward single households. As the local builders supplied mainly mid- to large-sized apartments in the early 2000s, the supply-demand imbalance by apartment size has continued until now amid a plethora of unsold apartments. As the increase of single households is expected to continue to push up demand for small apartments in the long run, the government should implement a policy to diversify the supply in housing markets, toward smaller homes and shared houses.

To avoid social isolation, young single households are making the most of PCs and communication equipment, which help them maintain social relationships, but aged single households are not accustomed to using most modern equipment. It will be necessary to expand IT training for old-age groups as well as increase community and cultural centers to help them overcome social isolation and alienation.

Although single householdsâ&#x20AC;&#x2122; overall use of hospital services is low, aged single households are much more likely to need hospital care due to lack of caregivers at home. The demand for hospital services is expected to continue to grow, which makes it necessary for the nation to expand related services and put medical systems in better shape.

While the spread of single households helps buoy overall consumption, its effects will not be long term. The increase of single households will eventually lead to low birthrate and population aging, eroding future potential for consumption. Overall consumption is expected to grow 2.1 percent by 2020 thanks to the increase of single households. However, by 2030, the adverse effect of population aging will have a greater impact, reducing overall consumption by 0.9 percent. The nation will need to devise plans to bolster demand to withstand the long-term slide in consumption.

[ LGERI Report, January 8, 2014, published by LG Economic Research Institute ]

www.koreafocus.or.kr

Expansion of Social Capital is Essential for Advanced Nation Status Chang Hu-seok Research Fellow Hyundai Research Institute

I. Importance of Social Capital 1. Social Capital and Economic Growth

The recent incidents of social conflict and violation of law and order have created social problems and caused direct and indirect damage to Koreaâ&#x20AC;&#x2122;s economic development. There are many research findings that link positive economic growth to rising social capital. That is, a positive set of unofficial values and norms facilitates cooperation, which helps resolve social problems such as conflict and corruption.

A nationâ&#x20AC;&#x2122;s economic growth drops by around 0.8 percentage point for every 10 percent loss in trust, according to an analysis of 29 countries by Knack and Keefer (1997) during 1980-1981 and 19901993. Conversely, an analysis by Whiteley (2002) of 34 countries during 1970-1992 found a 1 percent increase in trust adds 0.6 percent to per capita GDP. Also, La Porta et al. (1997) said that trust helps the efficiency of government and society, and civic participation.

In a corruption index of the Organization for Economic Cooperation and Development constructed

by Hyundai Research Institute, Korea is at the lowest tier of the 34 member nations, hindering its economic growth potential. Korea has 4.7 points, while the average corruption index of OECD member countries is 7.0 points. If Korea upgraded its legal and institutional systems enough to rise to the OECD average, its nominal GDP per capita would increase by an annual average of US$138.50 and nominal annual average economic growth would gain 0.65 percentage point.

2. Social Capital and Advanced Nation Status The correlation between a country’s law and order index during 1998-2012 and its GDP per capita in 2012 was 0.67. In short, the higher GDP per capita is the better the legal and institutional systems.

Korea’s law and order index is at the low end among OECD member countries, according to rankings by the PRS (Political Risk Services) Group.

Social capital such as public trust and respect for law and order must expand for a nation to join the ranks of advanced countries. Therefore, it is necessary to look into policy-related implications of Korea’s social capital as it seeks to achieve advanced nation status.

II. Trust vs. Flexibility

1. Trust in Social System

1) Trust or Distrust?

Koreans generally lack trust in their social system. This means it will not be easy for Korea to become a society of trust anytime soon. In a survey on the credibility of Korea’s social system by the Hyundai Research Institute in December 2013, 46.4 percent of the respondents answered either “Trust very much” or “Relatively trust” when asked “How much do you trust Korea’s overall social system?”

The public’s trust in the judicial system was high (52.1 percent), while that in the legislative system was very low (18.0 percent). This can be a positive sign in view of the fact that the judicial system may be considered the last bastion of a society of trust.

2) Parents Encourage Flexibility Half of the respondents advised their children to exercise flexibility rather than respect law and order.

To the question of “What advice would you give your children to help them become a successful member of society?” 50.1 percent of the respondents said, “Have some flexibility,” while 49.9 percent said, “Abide by law and order.”

By age group, younger generations feel a greater need for flexibility to become successful in society.

It is assumed that those aged 50 or older tend to think it is not right in light of their experience.

3) Change in the Level of Trust in Society Less than half of the respondents believed that the credibility of their social system has improved in the past 10 years. When asked, â&#x20AC;&#x153;How do you think the credibility of our overall social system has changed in the past 10 years?â&#x20AC;? 44.2 percent of the respondents said they think it has improved. Even though many people still think the publicâ&#x20AC;&#x2122;s trust level in our social system is not high enough, it has made a significant improvement compared to the past.

Seven out of 10 Koreans think the trust level will improve in the future. As the expectations are high for the future level to further improve, it is highly likely that Korea will become a society of trust.

2. Trust-related Characteristics of Korean Society

1) Negligence of Law-abiding Spirit in Small Matters Koreans tend to be very stern about serious crimes such as hit-and-run driving. To the question of “How would you react if you witnessed a hit-and-run car?” 90.7 percent of the respondents replied, “I will definitely report to the police.” The rest chose the answer, “I will just ignore it because I may get into trouble.”

On the other hand, they are generous about minor offenses such as traffic signal violations. To the question of “What would you do if you faced a red traffic light on an empty road?” only 51.7 percent of the respondents replied, “I will definitely wait for a green light to cross the road.”

2) Higher Priority for Private Relations The survey found out that nine out of 10 Koreans think private relations have precedent over public relations. To the question of “How much do you agree to the view that our society puts higher priority on private relations such as regional, school and kinship connections than public ties such as law and order?” 88.1 percent of the respondents said “Strongly agree” or “Relatively agree.”

For example, to the question of “What would you do if you learned the hit-and-run car was your friend’s car?” 56.9 percent of the respondents answered that “I will report to the police even if it was my friend’s car.” This is far lower than 90.7 percent in the case of a stranger’s car.

Also, a high portion of the respondents said they tend to take positive consideration for friends or relatives at their jobs.

3) Obsession with Success A large majority of Koreans think that success can offset dishonest or immoral deeds of the past in their society. As many as 84 percent of the respondents sympathized with the view that â&#x20AC;&#x153;In Korea, even dishonest people tend to be accepted as leaders once they become successful.â&#x20AC;? This belief is well reflected in their view of leadership in Korean society.

4) Relations with Other People More than half of Koreans think that strict observation of rules can hinder inter-personal relations.

Those who selected “Yes” for the statement of “If I stick to law and order or rules too strictly, my relations with other people can turn bad” amounted to 56.7 percent. More men than women agreed to the statement. It may be because men have experienced negative influence on their social relationships more often than women.

Inter-personal relations are very important in Korean society, which has a strong tendency toward collectivism. The notion that strict observation of law and order could undermine relations with other people can further threaten law and order in Korean society. This issue needs continuous monitoring.

3. Need to Overcome Reliance on Expediency

1) Expediency over Normal Procedures A vast majority of Koreans tend to believe that their society relies on expediency rather than law and order. When asked, “Do you agree to the view that Korean society has the tendency to rely on expediency rather than following legitimate procedures and rules?” a total of 85.7 percent replied

either “Strongly agree” or “Relatively agree.”

In order to overcome such a tendency, ambiguous laws and regulations should be improved because they are the primary factor that encourages people to resort to expediency. To the question of “Why do you think people tend to rely on expediency rather than following legitimate procedures and rules?” 25.7 percent of the respondents, or the highest share, chose, “Because regulations are ambiguous and application criteria are inconsistent.” It was followed by “Because problems can be solved quickly and easily through expediency”; “Because punishment for expediency is too mild”; “Because our society tends to be generous toward trifle expedients as long as the outcome is satisfactory”; and “Because I will be a fool to myself by sticking to rules while many people use expedients.”

2) High Possibility for Society of Trust Three out of four Koreans trust other people. When asked, “How much do you trust people other than your family?” 76.4 percent of the respondents opted for the answer “Strongly trust” or “Relatively trust.” As opposed to their view of the overall social system, Koreans have far deeper trust in other members of their society. This means that clues to building a society of trust should be found among the ordinary members of the society.

In view of the strong trust in other members of society, there is a high possibility that Korean society

will turn into a society of trust. When asked, “Considering the general level of its members, how do you estimate the possibility of Korean society becoming a society of trust?” as many as 61.2 percent said, “It’s not a long way if individuals make a little more effort.”

III. Policy Implications First, our society should form an atmosphere where even a trivial promise is honored. It is urgent to come up with educational programs to teach young children about the importance of law-abiding spirit. Notably, Korea rarely provides well-organized education programs regarding a society of trust and the overall atmosphere in society does not support it, often discouraging those who have lawabiding spirit. Thus, it is necessary to promote a wholesome social atmosphere and provide children with many opportunities to think about a society of trust from an early age.

Second, there should be measures to establish a comprehensive trust process for each sector of our social system. After identifying the reasons why there is not enough trust in the legislative, judicial and administrative systems, measures should be devised to solve those problems. Especially for those sectors in which the public’s trust level is extremely low, such as the legislature, multifaceted efforts based on national consensus are necessary to recover the trust of people. This will also require appropriate measures.

Third, civic campaigns and TV programs that advocate a society of trust should be introduced. One good example is the TV program titled “Let’s observe the stop line” aired some years ago. Also, the

government should provide policy support to campaigns of related civic groups. As shown in the survey outcome, Korean society apparently straddles the borderline between trust and distrust.

Therefore, expanding trust a little further will help create a social atmosphere where trust dominates distrust. For this purpose, broadcasting programs and cooperation of civic groups are necessary.

Fourth, it is necessary to create momentum for Korean society to move toward a society of trust on the back of voluntary endeavors by ordinary members of the society. Given that most members of our society trust their fellow citizens but tend to distrust their leaders, they should be encouraged to raise the issue on their own. It would be most effective to resolve the issue of trust in society under the initiative of the general public.

[VIP Report 14-2, No. 553, January 15, 2014, Hyundai Research Institute]

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- Visitors Shed Tears at ‘Comfort Women’ Exhibit in Angoulême

Visitors Shed Tears at ‘Comfort Women’ Exhibit in Angoulême

Lee Yu-jeong Staff Reporter The JoongAng Ilbo

At the basement exhibition hall of the Angoulême Theater, in the southwestern town of Angoulême in France, drawings of “comfort women,” the euphemism for sex slaves of the imperial Japanese military during World War II, were displayed on January 31. Called “The Flower that Doesn’t Wilt: I’m the Evidence,” the exhibition showed the works of 19 popular Korean manhwa (comics) artists.

Among the drawings, “The Road that Doesn’t End” (220 x 20 cm) by Park Jae-dong caught visitors’ attention; it depicts a springtime landscape of a Korean girl’s hometown. Along the walls of a thatchroofed village house, azalea, forsythia and apricot blossoms are in full bloom. However, alongside the village, a red narrow alley leads into darkness. At the end of the alley stands a girl with bobbed hair, in her white jacket (jeogori) and black skirt (chima). She hides her face with her hands, her back turned to her home village.

Park Jae-dong says he intended to express the heart-rending grief of the victims of wartime sex slavery; they could not return home although they were aching with homesickness. A French visitor viewing this work, named Amelie Jupe, 28, shed quiet tears. “I cannot help crying at the thought of young girls enslaved in sexual violence. Exhibitions of this sort should continue for public viewing to remember their courage to stand up to testify the historical fact,” she said.

The Angoulême International Comics Festival invites cartoon works from throughout Europe and many Asian countries, and its fame among the world’s cartoon fans and artists is equivalent to that of the Cannes Film Festival. The overarching theme for the 41st edition this year is wartime situation and violence against women, commemorating the centennial of the outbreak of World War I. During the four-day event running from January 30 to February 2, the festival showcased 35 exhibits on different themes and artists, inviting 227 comics’ publishers from 30 countries.

The special exhibition on comfort women was held at the Korean booth, with some 20 works on display. They included the aforementioned work by Park Jae-dong, “Butterfly’s Song” by Kim Gwang-seong and Jeong Gi-young, “Oribal Nippondo” (Japan Playing Innocent) by Lee Hyun-se, “Twisted Knot” by Kim Jeong-gi, and “Secret” by Kim Geum-suk. Most of these works were critical displays of wartime atrocities committed by the imperial Japanese military.

“Oribal Nippondo” portrays a girl wearing hanbok, a traditional Korean outfit, and a hair ribbon (daenggi). Holding a sword, she stamps down on Japanese soldiers symbolizing imperial militarism.

“Butterfly’s Song” shows scenes from a 97-page graphic novel. Drawn on traditional mulberry paper with Indian ink, they depict painful life stories of comfort women in Japanese military brothels, who are now in their 80s and 90s.

The work of Shin Ji-su, a victim’s life story in a series of 24 cartoon graphics titled “83,” also received attention. Unfolding from right to left, the pictures show a grandmother gradually transforming into a young girl. The number “83” represents the years passed since the 1931 Manchurian Incident. A French visitor named Veronique Thesonnier, 52, said, “I can feel the artist’s desire to bring the grandmother back to her childhood, when she did not have to undergo the sufferings.” The cartoonist Kim Gwang-seong said, “I have come here following the hearts of those grandmothers who suffered unspeakable atrocities during the war. I find this project a meaningful endeavor to raise public awareness of the truth.”

An animated video work titled “The Unfinished Story” also evoked profound resonance among the viewers. It was inspired by the life story of the late Kim Hak-sun, the first sex slavery victim to come forward to relate her experience to the public. Another female visitor, Emmanuelle Ratheigh, 44, said, “As a woman myself, I feel resentful and sad. It is an abominable crime to exploit 14-year-olds and 16-year-olds as sex toys.” During the four-day exhibit, more than 16,000 visitors viewed the Korean exhibition, a result of yearlong conscientious collaboration of the Korean Manhwa Association, the Korea Manhwa Contents Agency (KOMACON) and the Ministry of Gender Equality and Family.

Among the visitors to the exhibition was Raphael Cuir, president of the French chapter of the International Association of Art Critics (AICA) and a well-known art historian, who is also noted as an advocate of women’s rights. “For various reasons, victims of wartime sex slavery have been deprived of their right to speak up about their sufferings to the international community. As they are fast aging and time is running out for them, we should act now to write a truthful history,” he said.

He added, “It is important for the Korean government to reveal the brutalities of the ‘comfort women’ system to the broader international audience.” He advised that cultural channels, such as the comics’ festival in Angoulême, can be more crucial than political or diplomatic approaches to the issue.

Japan tenaciously pressured the festival organizers to cancel the Korean exhibition. The right-wing civic group Nadeshiko Action sent to the local press a petition signed by 16,000 people calling for its cancellation. They also set up a booth with a banner claiming that Japan’s WWII military sex slavery is a fabricated story. When the festival organizers removed the booth for its political objective, the Japanese complained that their freedom of expression had been violated. Raphael Cuir flatly dismissed the Japanese protest, saying, “Not grounded on historical facts, their claim does not constitute a cause for the freedom of expression.”

The festival organizing committee and the Angoulême city demonstrated careful concerns for the Korean artists by deploying eight plainclothes policemen in the exhibition hall to prevent any attempt to damage their exhibits. Japan, despite its one-third share in the French comics market, fell short of derailing the quest for historical truth.

[ February 2, 2014 ]

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- Convenience Stores, Miniaturized Sleepless Capitalism - Closer to the 500 Years of Joseon Dynasty

Convenience Stores, Miniaturized Sleepless Capitalism

Choe Hyeon-mi Staff Reporter The Munhwa Ilbo

â&#x20AC;&#x153;Sociology of Convenience Storeâ&#x20AC;?

By Jun Sang-in, Mineumsa, 216 pages, 16,000 won

By the end of 2012, Korea had 24,559 convenience stores, one for every 2,075 people. This is the highest ratio in the world, higher than that in the United States, where convenience stores originated, and higher than that in Japan and Taiwan where they flourished. We do not have to cite exact numbers.

Walking down the street, it is much easier to find a convenience store than a police box or a post office, and the stores are evolving from a place of commercial transactions to a multi-functional space providing public as well as cultural services.

Despite the convenience they provide, however, the stores evoke feelings of sympathy because what is shown on the surface and what is hidden underneath contrast starkly. The stores prosper on the back of a neatly organized corporate manual, global capitalism that standardizes everything, non-stop hours, unlimited competition and daily consumerism. However, on the other side of the convenient shopping, cash advance service and package delivery lie dark corners of society with grim faces.

For example, the fact that the convenience stores are open 24 hours a day supports the capitalist logic that they are willing to provide services anytime as long as they are paid. The identical product

merchandise in the stores have somewhat made our lives standardized. They drove out the mom-andpop stores in the neighborhood under the name of convenience, and the underpaid part-time worker has to keep watch at the brightly lit store in the dark street.

Not so well-off people in their 20s and the students going to and from different private institutes take care of their meals at the convenience stores. Sometimes we see in Korean movies or dramas the characters eating instant cup noodles in the corner of the store or drinking soju outside under the parasol. It has become a typical scene in which the bitterness of the society’s underdog is portrayed.

The author Jun Sang-in had analyzed the Koreans’ culture of living in apartment complexes in his earlier book “Mad about Apartments,” and this time he delves into the stores. He quotes specific numbers and arrives at the conclusion that the convenience store is a mouthpiece for capitalism, consumerism, rationalism and globalization, and serves as the barometer for measuring polarization.

In Korea, the convenience store was first introduced as an exotic place where the urban yuppies engaged in conspicuous consumption. But now it is associated with “losers.” The young generation in their 20s and 30s buy food, cigarettes, liquor and lottery there for comfort. Contrary to the lowprofile user demographics, the industry is dominated by the Big Three companies, accounting for almost 90 percent of the market share. It was also very ironic how during the candlelight demonstrations the nearby convenience stores enjoyed peak sales.

The author is citing the three alternatives to capitalism put forward by the Feinsteins and predicts what future may be possible. First is that it becomes urgent to change the world when things get much worse. It is a rather radical position with a slim possibility. Second is getting the most out of present circumstances. It is more pragmatic but it rationalizes the status quo. Last is having social constituents continue to work hard to strengthen the public and democratic nature of their society; this was the author’s pick.

On a group level, people must check monopolies and abuse of power, and on an individual level, they must continue with self-reflection and maintain dignity and self-esteem as an independent human being so that they can have hope. In the age of convenience stores, what we can do is exert continuous effort to think about how the stores change our lives and what implications they have in the community.

[ January 17, 2014 ]

www.koreafocus.or.kr

Closer to the 500 Years of Joseon Dynasty

Noh Seung-uk Staff Reporter Maekyung Economy

“Park Si-baek’s Annals of the Joseon Dynasty” (Vol. 1-20)

By Park Si-baek, Humanist, 8,000 pages (full set), 217,000 won The comic book series “Park Si-baek’s Annals of the Joseon Dynasty” ended with the 20th volume.

It took the author 13 years to complete the historical saga comics that shed new light on the 500 years of Joseon history. “The Annals of the Joseon Dynasty” was listed on UNESCO’s Memory of the World Register, and the long history contained in 49.65 million Chinese characters in 1,893 volumes can now be read more easily through comic books, which in itself is a meaningful achievement.

From the planning stage, the comic series was produced with the notion that most of the historical “common sense” is myth created from unofficial history, TV dramas, or unconfirmed history books.

The author wanted to be true to historical facts and that is why he took the extra time and effort to undergo thorough research to restore the Joseon history.

He mainly relied on the Korean translation of the official court annals of the Joseon Dynasty (13921910), and for every volume of the comic book the author used more than 20 reference books. He also referred to results of recent academic research so his narrations could be even more objective, accurate accounts of history. It is outstanding how he got into the minds of the historical figures at

the time of important events and tried to describe as vividly as possible what they were thinking.

When Yi Seong-gye took control of the army at the end of Goryeo before founding Joseon, he did not dethrone King Gongyang. The author analyzes that the reason why he let the figurehead king keep his crown was because he wanted a peaceful transition and did not want to upset the people. The Goryeo king and his faithful minister Jeong Mong-ju realized this and tried to defeat and persuade Yi to preserve the dying dynasty, and his son Yi Bang-won came to the rescue and murdered Jeong. The author used his imagination to rebuild the thought process that must have taken place in different people’s minds at such intense historical moments.

Because the author based his work on the official recorded history, he found many myths to be untrue.

For example, according to Park, First State Councillor Hwang Hui was not a man of integrity as is widely known. According to the official annals, Hwang was supposed to have bribed the village chief so that his son-in-law, who had committed acts of violence, would be pardoned. He was also criticized for offering the local governor’s son a position in the government in exchange for a plot of land. He took credit for a reclamation project and took most of the land for himself.

Nevertheless, King Sejong trusted Hwang and let him serve as first state councilor (yeonguijeong) for 19 years because he was a learned man and skilled at administrative affairs. The author evaluates Sejong as a “magnanimous leader” for recruiting Hwang on the grounds that “although he shows fault in ruling himself and home, he is valuable in ruling the nation and the world.”

There are many other interesting facts that the author found from the court annals. Buddhist Monk Muhak is known to have decided where the capital of the newfound dynasty of Joseon would be located, but the annals have a very detailed record of how Yi Seong-gye himself, accompanied by his ministers, visited the site and how the decision was made for the relocation of the capital.

Also, it is known that scholars of the royal academic institute, Jiphyeonjeon (Hall of Worthies), were ordered by Sejong to invent a new vernacular script, but there is no mention of their contribution in inventing the Korean alphabet. Yi Yul-gok is described not as a scholar but a passionate statesman who called for reform all his life.

The annals also mention why King Seonjo downplayed the heroic Admiral Yi Sun-sin and instead sided with Won Gyun, who abandoned ships at the last minute. It was because Admiral Yi was the exact opposite of the king, who failed to defend the country from the enemies and was busy making

an escape when war broke out. It seems probable that Seonjo was convinced to support Won Gyun who was more like him in that they both lacked moral integrity.

True to his wit as a cartoonist who drew for a newspaper for years, Park Si-baek was able to read between the lines of â&#x20AC;&#x153;The Annals of the Joseon Dynastyâ&#x20AC;? and capture the power struggles and interactions between people quite acutely. His book is written as general comics but content-wise it is as good as any history book.

[ No. 1742, January 22, 2014 ]

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- Jeong Gap-cheol: â&#x20AC;&#x153;Only a fool could have attempted to make a fishing festival without the fish.â&#x20AC;?

Jeong Gap-cheol: “Only a fool could have attempted to make a fishing festival without the fish.”

Choe Bo-sik Staff Reporter The Chosun Ilbo

“I had never heard of sancheoneo [mountain trout] before. Hwacheon was not a sancheoneo habitat.

But instinctively, I dissected the name into san [mountains], cheon [waters] and eo [fish], of which Hwacheon has plenty, and decided that this would work.”

The man who orchestrated the Hwacheon Sancheoneo Ice Festival, one of the Seven Wonders of Winter selected by CNN, is Jeong Gap-cheol, 69, governor of Hwacheon County, Gangwon Province.

This technical high school dropout who started out as a low-level civil servant has managed to turn Hwacheon, historically a small military camp, into an international festival city.

In explaining how the festival started, Jeong said, “Only a fool could have made the attempt. The fishermen all scoffed at the idea of the festival, saying, ‘You catch mountain trout through fly fishing.

And you’re going to put holes in the ice?’ But I released some mountain trout into the waters and in the winter made a hole in the ice and tried my hand at fishing. That was the first time I’d ever tried fishing, but I caught a fish immediately. I decided I could ignore the fishermen’s advice and go ahead with my plans.”

Q. You organized a mountain trout festival in Hwacheon, where there were no mountain trout.

You could call that an “invention.”

A. I got the idea from the bingeo (pond smelt, Korean name literally means “ice fish”) festival in Inje, also in Gangwon Province. But that’s a two-day event with prizes going to the person catching the biggest fish or the most fish. But the bingeo are only as big as your finger. ‘How does it make any money?’ I wondered. When I became governor I hired a private consultant to come up with some ways that the county could generate an income. Of the 10 items suggested, one was mountain trout.

On the day before the end of the festival I went to the site to check things out for myself. Where did all those people come from? And there were quite a few foreigners. During the festival some 500,000 mountain trout are shipped to Hwacheon from breeding grounds all over the country.

“In the first year of the festival, we had trouble attracting anyone to operate a restaurant here,” Jeong said. “I told the operator, ‘We’ll buy you seven beef heads a day so you can run a restaurant selling beef soup with rice. If things don’t go well, you don’t have to pay us back for the beef heads.’ At the time the population of Hwacheon County was 22,000. I promised to dance naked in downtown if the festival attracted 20,000 people from other parts of the country.”

Q. So did you do it — dance in the middle of the town?

A. I didn’t keep that promise. That year we had 220,000 visitors to the festival. People say that’s more people than this region had ever seen since the end of the Korean War. At first, it was a bit quiet.

When a week passed the crowds started to come. That’s when I realized the power of word-of-mouth.

We had one million people descend on us when the CNN broadcast went out. It works in reverse — when something is reported in the foreign media, the domestic press then gives it a big write up.

Q. I understand that Hwacheon County had the third-highest income of the 18 cities and counties in Gangwon Province.

A. They’re just statistics. It’s hard to really feel the impact. They say the Hwacheon Sancheoneo Ice Festival is a huge success, but we only get a crowd during the festival period. Real success would mean attracting people in all four seasons.

Q. You started out as a civil servant and have been elected governor for a third term. What is the secret of your success?

A. If I had to find an answer, I would say diligence and credibility. When I first became a civil servant and was appointed to the accounting department of Hwacheon County Office, I stayed behind to work when everyone else had gone home. I slept on a blanket spread out on my desk. One time, after midnight, the governor was on his way home after drinks when he noticed that a light was on in the office. He stopped by to take a look and found one fellow working. There were times the governor would ask his wife to cook some ramyeon (instant noodles) and bring it to me at the office.

Q. You must have been tempted to use your influence to comply with certain requests or serve certain interests.

A. When I was working at the Office of Gangwon Province, I was sued for not granting mining permits. For that case, I was dragged all the way to Cheong Wa Dae [presidential office]. But I won at the Supreme Court. When I was in charge of work related to graveyards, I had a rough time when I did not grant permission for a graveyard planned by the minister of a large church, who had lobbied those higher up. I guess you could call me a troublemaker. But perhaps people thought I could be trusted, for I was promoted faster than others.

Q. Is that your original character?

A. I was a technical high school dropout from Seoul. I had no school or regional ties here. If you have nothing to rely on, in order to survive you must never overstep yourself. Naturally I stubbornly stuck to principles.

Q. You must have had the assistance of many people to be elected governor. Can you really turn a deaf ear to them if they ask for something?

A. I get a pension of 3.2 million won a month when I leave this post. There was nothing to stop me from doing what I thought was right. When youâ&#x20AC;&#x2122;re in an elected post, you do need money. It is not allowed by law, but you have to offer gifts of money when those who helped you are holding weddings, funerals or other big events. How many heads of public organizations are so clean that they can throw stones at another?

Q. What made you run for governor in the first place?

A. When you become a civil servant, you vow “loyalty and sacrifice to the nation, and to be honest and serve the people...” There’s no way to practice such lofty ideals in reality. In my high school English textbook there was the story of a U.S. soldier participating in the Korean War titled “What I am fighting for.” There was a sentence that went, “I am going to fight in the Korean War. I am doing it for the oak tree in the yard, and the lively bright eyes of my young cousin…” When I retired from government service at the age of 57, I asked myself what I could do as a father and a husband.

Q. I’ve met a lot of famous people but I’ve rarely heard this kind of answer.

A. If you were to say outright, “I’m running for governor for my family, so please vote for me,” then people would think you were mad. Of course, I thought a lot about how revenue could be generated for Hwacheon. After the war the county was left neglected. Thanks to the army barracks here we managed to get by barely.

Q. What should the head of a public organization strive for?

A. To strengthen the local economy and ensure a livelihood for the residents. The Hwacheon area is 86 percent mountains and 5 percent water. That leaves just 9 percent of usable land, which is mostly taken up by the army camp. There’s not a single factory. As we had nothing, I tried to think up ways to generate income through tourism.

Q. Does Hwacheon have enough historical sites or cultural heritage to do that?

A. We had no tourist resources at all. That’s why we touted the mountains, streams and clean air. We do have the Peace Dam, so at one time I thought we could do something with the “peace” theme. We gathered empty gun cartridges from 30 countries around the world suffering civil war and conflict and made the “Peace Bell.” People pay 500 won to strike the bell. The money thus collected and the money contributed from the pay of non-commissioned officers in the county is sent to Ethiopia every year in the form of a scholarship for the descendants of 132 Ethiopian Korean War veterans. The place where the first Ethiopian soldier died in battle was Hwacheon. The storytelling works.

In June, Jeong will step down from his post as governor. Many of those who know all about his passion, devotion and abilities would like to see him run for governor of Gangwon Province. But Jeong said, “I’m going back to being an old country man. I’ve planted 500 blueberry bushes. I don’t mean to be a real farmer. I’m just going to spend my time weeding the blueberry fields.”

Q. You’re sure to have some regrets.

A. If you take an elected post, you can’t live a quiet life. Because of this stress my wife pleaded that we live “a comfortable private life.” But exactly one year after being elected to my third term, she passed away. That left me with a lot of lingering regret.

As we walked along the ice festival grounds, Jeong bent down every time he spotted a bit of rubbish and picked it up. “When I crouch down in the blueberry field and pick the weeds, I hope to lose myself in the work so I can stop thinking about my wife and everything else,” he said.

[ February 3, 2014 ]

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Korea Focus is a monthly webzine (www.koreafocus.or.kr), featuring commentaries and essays on Korean politics, economy, society and culture, as well as relevant international issues. The articles are selected from leading Korean newspapers, magazines, journals and academic papers from prestigious forums.

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