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2014 2014 WORLD CUP
SEWOL FERRY TRAGEDY - COVERAGE 2014 JUNE SOUTH KORE KOREA A ELECTION FAIR TRADE SOUTH SOUTH--NORTH KOREA RELATIONS GLOBAL MARKETING STATEGY ON THE RISE CHINA’S SMARTPHONE MARKET AND MORE...
JULY AUGUST SEPTEMBER www.theteenbiz.com VOLUME #3- ISSUE #3 CHIEF EDITOR: STEPHANIE YANG
EDITOR’S NOTE Greetings! Thank you for participating in The TeenBiz, the only student-run English business newspaper in Korea. In this edition, we would like to tell you one sad news: due to the lack of participation, funding and administrative problems, The TeenBiz will no longer be published after this edition. We are very sorry to share this sad news with you. At the same time, we would like to extend our greatest possible gratitude toward all members of our team who worked so hard to commit their time and effort into making The TeenBiz one of the best publications.
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Thank you for your interest in our entirely student-run English business newspaper, The TeenBiz. The TeenBiz was first published in October, 2012. We are the FIRST ENTIRELY STUDENT-RUN ENGLISH BUSINESS NEWSPAPER IN KOREA. We hope you will have a great opportunity to pursue your interest in multiple fields. By joining The TeenBiz, you will have a chance to not only write articles but also gain extensive knowledge of our current society. Currently, our publication team consists of over 80 students from various countries such as Korea, United States, Canada and Singapore.
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CHIEF EDITOR: STEPHANIE YANG
COPY EDITORS: ANNIE SONG DANIEL JUNG DYLAN PARK EUI YOUNG KIM HAWON LEE HUI YEON LIM HYE WON JANG JI HOON AN JIOH YOO MINSUNG KIM PAUL SCHAAF SO JIN PARK YOOJEONG LEE YUGYEONG JEONG
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The Explosive Growth of Rising Rookie: ‘Xiaomi’ Writer: Seonyong Kim Editor: Annie Song Xiaomi, also known as the "Chinese version of Apple Company," has shown rapid growth in popularity. 'Redmi’, a smartphone worth $300 made by Xiaomi, ranked first on China's top smartphone list in April 2014. "MI3" and "Redmi Note" ranked fifth place and seventh place respectively. These two products are Xiaomi’s "phablet" (phone+tablet) model. Also, "Redmi" ranked fifth in the World smartphone sales volume. Xiaomi accomplished inspiring deed just three years after they plunged into the smartphone market in 2011.
However, the best aspect of Xiaomi is its business model. Xiaomi changed their domain "xiaomi.com" to "mi.com" with this slogan: "Shorter name, Bigger world." Xiaomi sells their products online, and instead of advertising their products, Xiaomi implements their marketing strategy through Chinese SNS (Social Network Service) such as "Weibo" or "We Chat." Xiaomi’s marketing expense comprises only 1 % of their total sales, allowing Xiaomi to keep their prices low. "iPhone" costs double the cost of "MI3". It might be the reason Apple was turned over by Xiaomi in price competitiveness. Furthermore, Xiaomi lets products to be sold out by setting the first batch of products. Previously, 100,000 "MI3"s were sold out in 86 seconds. This led customers to become Xiaomi manias by enhancing their mental satisfaction.
Based on its business growth last year, Xiaomi was valued over 10 billion dollars. It is now second to Lenovo. What are the special aspects of Xiaomi that helped the company to achieve this far?
In the days to come, people are looking forFirst, it is the product’s performance. For ward to the growth of the rising rookie, Xiaomi. instance, "MI3" has a convenient and simple user interface, with LG display panel and Qualcomm’s high performance processor installed. Xiaomi’s own software skin "Miui" is included as well. As compared to other softwares, "Miui" allows continuous communication with its customers to reflect their opinions on the products. Next, Xiaomi has affordable prices. Last month, Xiaomi launched "Mi Pad" and "Mi TV". "Mi Pad" has 7.9 inch, 2048×1536 resolution display device. The 16GB model of this costs only 1499 yuan (250,000 won) and 64GB model costs 1699 yuan (300,000 won). Xiaomi’s friendly prices surpass other companies by a wide gap. Similarly, Xiaomi’s smart TV "Mi TV" come as a surprise to us. "Mi TV" is fully armed with various and strong functions such as 3D, Wi-fi, Bluetooth, and voice recognition functions. Despite its high-performance level, "Mi TV" costs as less as 3999 yuan (690,000 won). That is an amazing price to ask for, isn’t it?
© Xiaomi’s official website. (www.mi.com)
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Red Mountain Writer: Seryeong Lee Editor: Euiyoung Kim In the 2014 Brazil World Cup’s round of 16, the Korean soccer team’s frustration has led to Red Devils’ support T-shirts being stacked in a pile. According to the Home Plus, the exclusive seller of devil official support red T-shirt on the 29th, about 800,000 pieces of cheer clothing, and 1 million copies of muffler were sold. Clothing support amount plus the home that have been prepared ahead of the World Cup amount to 1.15 million pieces of clothing and 5 million copies of muffler. About 30% of the amount of preparation (35 million copies), muffler, was supposed to remain as a stock or (4 million copies) 80% as T-shirt. Scarf and T-shirt are left in the final plans to dispose of such gifts.
national team’s defeat that started from the evaluation before the opening game, the demand for World Cup has stayed low. Netizens are showing various reactions such as, "is Korea going to make it to the final 16?", "clothes will remain in stock but what about the donations to difficult people?”
The Brazilian World Cup competition schedule will continue until the middle of next month to start the round of 16 tournament, but the cheer Tshirt sales will fall as domestic support for the Korean soccer team disappeared. In addition, because of the current sober mood of Korean society, sales have been even more sluggish. The depressing atmosphere of the World Cup does not limit itself to overall descrip- Korea rooter's outfit of Brazil World Cup tion of the case with Home Plus. Starting from the / © Interpark
Finding A Better Friend for Korea, Maybe China? Writer: Yoo Min Ahn Editor: Hye Won Jang Chinese President Xi Jinping visited Korea on June 3rd and 4th. The Korea-China Summit has remarkably established more substantial progress in the relationship between the two. The most significant economic achievement is the opening of Korean Won and Chinese Yuan Trading Link.
Scheme, which allows foreign investors and corporations to use offshore Renmenbi deposits in the Chinese mainland market securities. Korea’s current investment limit is 80 billion Yuan, but it can be increased depending on the market’s demand. Meanwhile, China can speed up their movement of the Chinese Yuan internalization to compete with When the direct dealing market opens, Kothe US dollars. rea can benefit from direct investment in Chinese stocks and bonds market with Yuan after other five Since China is the number one trading partcountries: Hong Kong, Taiwan, Great Britan, and ner of Korea, Korea may save from 3 to 5% of transSingapore, which is RGFII quota. RQFII is the Ren- action cost when there is no need to change the minbi Qualified Foreign Institutional Investor currency to dollars. 6
Currently, the scale of the Korean domestic corporations’ Chinese Yuan trade settlement is 35 times higher to 2.8 billion dollars from 82 million dollar. Korean companies can not only benefit from the trade settlement, but also can be competitive in creating the “Chinese Yuan Currency Herb” which involves savings, issue of bonds, derivatives, and insurances in the Chinese Yuan.
this Korean Won and Chinese Yuan Trade Link will go on well without making a trade deficit. Once, in 1997, the Korean government established a Korean Won and Japanese Yen Direct Dealing Market, but they shut it down in just three months due to the lack of demand. Nevertheless, the Korean government and many economists are expecting to succeed this time because Korea is making trade surplus in the Chinese market unlike the one with the However, doubts still remain on whether Japanese. The Blue House / © Photo provided by Yoo Min Ahn
What Brazil World Cup Brings to Brazil Writer: Sejung Kim Editor: Yoojeong Lee Brazil is hosting the World Cup for the second time, 1950 Brazil World Cup being the first one. Holding a groundbreaking record of winning 5 times total in the World Cups, Brazil is now aiming for the 6th. What matters as much as the winning is the economic effects the World Cup can bring. Brazil has made a strategic decision to make boost the country through job creation and revival of local economy, and globalization of Brazil's products. British consulting corporation projected that Brazil's unique soda and cheese bread, beachwear, beer will gain worldwide popularity due to the World Cup, as billions of viewers will watch World Cup and therefore get exposed to Brazil's products. 'World Cup Effect' is also expected to affect the domestic market as well. Specialists foresee that lodging industries and advertisements, especially those shown on the TV will show considerable amount of profit increase. However, many of the professionals have negative viewpoints in this World
Cup's economic effects. They argue that the World Cup may give some positive effects in Brazil's economy, but they will be very temporary. They also argue that the effect will be very limited, just a part of lodging industries and food market, those that are part of a domestic market. Some insist that the World Cup's economical effect will be around 11 billion dollars, which is under expectation considering the size of Brazil's economy. Therefore, this World Cup is less likely to meet Brazil government's expectation. In addition, World Cup related facilities are expected to cost around 11 billion dollars, which is 3 times more than the initial budget. This budget is four times greater than that of the 2010 South Africa World Cup. The problem is that Republic of South Africa yet has not re-claimed most of the investments until now; many speculate that Brazil might also follow the same path. 7
Protest Against Brazil World Cup Writer: Yeojin Shim Editor: Hawon Lee World is in a frenzy nowadays - because of the 2014 World Cup held in Brazil. However, while most people are heated up about it, some Brazilians are protesting against their government for holding the event. It might seem strange, as countries usually struggle to hold such international events in their nations in order to earn side benefits, such as increase in tourism. In order to understand the incident, closer observation into the social situation of Brazil is required.
Upcoming 2016 Brazil Olympics is also enraging Brazilian people. Experts doubt that Brazil will be able to overcome the loss of World Cup and prepare for yet another tremendous event in only two years.
For these reasons, the protest against this act of Brazil government is constantly increasing even until now when the World Cup has been scheduled. It is expected for the Brazilian government to listen to its people’s voice and to take apOne of the main reasons for the protest is propriate measures. the government budget spent on the World Cup. Astronomical amount of money is poured into stadiums, hotels, and maintenance fee instead of social welfare services. Many Brazilians had their land taken away without proper compensation in order to build stadiums. Economists argue that such expenditure has already exceeded the amount of expected profits from holding the event, and that this will seriously hinder the county’s economic development. © Photo provided by: Yeojin Shim
Influence of Celebrity Babies Writer: Ji Yun Choi Editor: Paul Schaaf Babies are hard to resist. With adorable ap- noticing ‘the George effect’, with items he has pearances and similar looking faces to their par- worn selling out in hours. ents, many of celebrity babies often take the spotSome Hollywood babies like Kingston Rosslight as soon as they are born. dale and Suri Cruise are becoming even more recThanks to her high-profile parents, Bradley ognizable than their famous parents. Suri Cruise, Pitt and Angelina Jolie, the birth of Shiloh, their the daughter of Tom Cruise and Katie Holmes wore daughter, was long-awaited and unsurprisingly, it heels at the age of three and has a collection of dehas caused more than 2,000 articles to pop up over signer clothes worth millions of dollars. Her closet a year. is packed with $6,000 dresses, $25,000 tiaras and numerous high heels as well as Armani gowns and As a result of the fame and money their parone-of-a-kind creations. “She won’t let me leave ents earn, the kids instantly become mini-style unless I’m wearing what she wants me to wear. icons to size up and swoon over. The son of Prince She’s got great taste and I want to make her William and Kate – Duchess of Cambridge has happy,” said Katie Holmes. charmed most of his subjects at the very young age. He may be only eleven months old, but Prince George is already a fashion icon and retailers are 8
Sometimes a child can actually boost a mom or dad’s appeal. Lee Haru was introduced to many through the Korean reality TV series “Superman is Back” in which she takes part in alongside her parents, rapper Tablo and actress Kang Hye Jung. She also interacted with many K-pop stars including Gdragon and Taeyang. Another baby in the show named Choo Sarang is also influencing many parents, as her toys and outfits are becoming highly popular among them. “We can’t really identify with the lives celebrities lead and the luxuries they have,” explains Danielle Friedland, founder of www.celebritybabies.com, a popular Web site entirely devoted to star progeny. “But what we can identify with is their parenting and their love for their children.”
Let’s Go On a Trip! Writer: Hyunsue Jung Editor: Stephanie Yang Nowadays, there are many people who prefer to go camping. As a result, many camping tool stores and swine farms are raising money. In order to refresh ourselves, trips would be one of the best choices. I would like to introduce some places to refresh ourselves in summer.
Next, I will show you another terrific view that will allow you to enjoy the sea. It is “Gyongpo Beach” which is located in Gangneung. You can take part in two festivals if you visit Gyongpo Beach during 07.25~08.03. Gangneung international youth art festival will be held during 07.25~07.28. Gyongpo summer sea art festival will be held during 07.25~08.03. So, let’s set out on a trip to Gyongpo beach to refresh yourself with beautiful sea. Another recommendation is an overnight trip. You can spend one day in Baugil and the other day in Gyongpo. It will present you with double happiness.
First, you will be refreshed by hiking among the beautiful nature. There is Baugil in Gangwondo. Bau has two different meanings. It means “rock” in Gangwon-do dialect. And it also means “goddess of health.” You can feel relaxed by admiring the beautiful scenery and getting healthy. There are 16 courses of Baugil and 5 other themed Baugil. I recommend the first course which will bring you strong wind in the end. You will meet large amounts of wind power plants on the top of the mountain. It will make you forget all the heat or high humidity of summer.
© Photos provided by Hyunsue Jung 9
Last, we will be able to establish stability of our mind in the nearby valley. It is called the “Yongchu Valley” which is located in Gapyeong. You can feel comfort by listening to fresh sounds of waterfall and spending time in cool valley. Let’s go on a trip now! You can be refreshed and forget the stress of the first semester in our nature.
Kakaotalk in PC? Writer: Ho Young Chang Editor: Stephanie Yang Kakaotalk is an application on smart phone that allows people to chat using their 3G or wi-fi. Now, there is a PC version in order for its users to use it on their computers or laptops. It was established in June last year, and has been showing a steady growth. According to the Nilson Korea Click, after only 4 months of its establishment, its number of downloaders has reached from 10 million in Korea to 20 million in March this year. The number has already overtaken the position of Nate On, which was once the messenger that most of computer and laptop users used. The company Kakao says the success was because of the similarity of the settings between the computer and the mobile version, which allowed the users of the original Kakaotalk on mobile to use the PC version more easily. The Kakaotalk has taken the first place of chat application in Korea and its growth seems unstoppable. However, the company should not wait for much greater outcome from the PC version than from the mobile version. The PC version does not provide the users with multiple applications such as games related to Kakao, such as Blue Marvel, Ani Pang, and etc. These games are the main services that attract users and the company gains profit from. Also, even though it has beaten Nate On, there are still other competitors whose functions overcome those of Kakaotalk. Skype, an application which allows its users to chat, video chat and call each other for free, is widely used around the world, even in Korea. People who need to talk when they contact each other use Skype more fre-
quently than Kakaotalk PC version. Also, even though many people have downloaded it, people might not use them a lot. At work, people have different communication applications that use that allows people to make group chatting system better. Other systems like Nate On, can make special groups with people whom you work with and you also can see if a particular person has come online or not. Although Kakaotalk has shown such a significant outcome in the mobile market and still takes the top place in the PC communication application market, there seems to be some shortcomings that are defeated by other PC applications. Kakatalk PC version needs some other services, games or other unique themes so that it can stand high long.
Joint representative, Je-Beom Lee and SeokWoo Lee / © Photo provided by Ho Young Chang 10
World Cup Fried Chicken: Much Expected Demands, Consistent Results Writer: Hwisu Kim Editor: Yugyeong Jeong Most chicken farms had expected that there would be far more demands for fried chicken in the season of World Cup than usual, so they expanded their businesses and started keeping more chickens. However, unfortunately, unlikely against the expectation, there has not been much actual increase in demands: only 2.1% of total sale increased compared to two weeks ago. Even, there now has been more supply than demand, so consequently cost for chicken have started to decrease.
There are quite lots of reasons for this very droop, including major markets’ cheap fried chicken sales and consumer awareness of dirty and contaminated oil used in restaurants. But the most obvious reason is simple: the time zone. What happened at every game was that the game started at mostly 4 or 5 am, when the chicken restaurants were closed and no delivery was available. This tells us that in any business, not only for fried chicken, not every expectations matches; there are many variations at all moments.
Hong Kong, Perfect Independence vs. Perfect Financial Hub Writer: Gue Jeong Jeong Editor: Stephanie Yang As Hong Kong is currently being swallowed up by huge waves of political difference, many are worrying that its position of financial hub will be in danger.
ference of China's government on Hong Kong. The Chinese government once blocked the use of Social Network Application like Kakaotalk or Line to prevent the rapid spread of this protest. The demonstration basically occurred because of the 'Hong Kong White Paper' that the Chinese government published last month. In short, the content that the supervision authority that rules Hong Kong is in the mainland, not in Hong Kong irritated the citizens of Hong Kong.
Hong Kong, which in 1997 regained its sovereignty from the United Kingdom, has remained stable as the 'Asia's financial hub'. Since China is growing so fast, Hong Kong gained much more importance as a tactical location, affecting global corporations more and more. Recently, however, the atmosphere is in change. This is because the confrontation between Hong Kong citizens, who claim for a perfect democratization from Chinese government, and China's communist leadership, who tries to fortify its control over Hong Kong, is being intensified. Financial Times (FT) prospected that the thoughts that global corporations hold about Hong Kong about its being the number one place for Asian business would eventually change if the current conflict continues. On July 1, 2014, Hong Kong celebrated the 17th Anniversary of its return to China. At the same time, the largest demonstration happened after the return broke out. The demonstrators demanded that a democratic direct election system in Hong Kong be prepared and condemned an active inter11
The recent conflict between Hong Kong citizens and the Chinese government is superficially about an election system, but there is an analysis that at the bottom there is a deluge of complaints of Hong Kong citizens aiming the negative lives under Chinese system. Contrary to its promise that it will not bother Hong Kong people and its judicial power, the main government of China is actively butting in Hong Kong government's administration after the return. "Many Hong Kong people feel that the life after the return to China has become much more miserable, both socially and financially,� pointed FT.
The problem is that if the Chinese government reinforces its power on Hong Kong, then there is a great chance that a lot of global corporations will consider moving to another city. Hong Kong is regarded as 'the best place for business', so no businesses would want to leave this good place. Many of them are reading China's countenance, trying not to upset them. However, some like FT are arguing that the global enterprises will change their minds if the current situation keeps going on, resulting in a countermarch of much system and continuous demonstration.
New Trend, Big Data Writer: Yu Jung Choi Editor: Stephanie Yang For Google, Amazon and even Barak Obama, the President of US, what is the secret of their success? In fact, the secret is Big Data. In the past centuries, many successful companies were just into inventing more superior products compared to their rivals'. However in the 21st century the very thing that is important is individual consumer.
since he got many powers in various fields, he would win. But the result was reverse. Aren't you curious about the reason? The secret was none other than "Big Data." In fac, Obama's companions were specialists especially in big data. They were experts in that field and they helped the President of the US. They searched the trail of internet users, and found their interests. Obama advertised his candidacy in very interesting ways, like ads in moBy consumer and for consumer, the combile and in Internet. These ways were very special pany is remaining. Based on this fact, almost global and more people gradually supported the previous companies and even most of all try to make their less famous candidate, Obama. consumers not leave. To do this, they are using big dater, Then what is the big dater? Maybe it's like a Based on this fact, we can feel the power of stalker of consumer, But it's statistic system that big data. Through his success and famous marketremains the mark of individual consumers. ing techniques, we know that the trend of our century is focused on consumers and data, and not on For example, when one consumer surfs the public but on individual. If you remember this, you internet and searches about vacation, then big will succeed in many fields of society by using big markets like Amazon conclude that it is vacation data. Good luck to your success. This is the world of season and consumers are interested in vacationglobal networks. related products. It hosts holiday events to attract the consumers to buy products from their sites. In this way, consumers fall into company's hands. Even when one consumer searches the internet just for enjoyment, they collect all of the information for their success. Using this way the President of US, Barak Obama, succeeded in the presidential election. At that time, his rival, John McCain, was from the Republican Party and many journalists thought that 12
Global Digital Data / Š Graphics provided by Yu Jung Choi
New Economy Policy Writer: Yu Jung Choi Editor: Daniel Jung The new Minster of Economy, Kyeong Hwan Choi was nominated and he announced new economy policies.
Kyeong Hwan, Choi, Minister of Economy / Š Photo provided by Yu Jung Choi
He said that the government would impose the companies in Korea more taxes for the sake of government and public welfares. Because the companies are keeping the retained earnings, the tax is not being collected well. The companies complained about the policy but it is projected to stay as it is.
Territorial Dispute Over South China Sea Writer: Larry Jeon Editor: Stephanie Yang The international competition between China and its neighbors over natural resources and sovereignty of the South China Sea has been issued as a territorial dispute that must be solved to secure the long-lasting peace in Asia. The center of the conflict, the South China Sea, is located literally on the Southern side of China while countries like Taiwan, Malaysia, Brunei, Taiwan, and Vietnam are on the surrounding areas of the ocean. This area mainly consists of four groups of islands, each called Spratlys, Paracels, Pratas, and Macclesfield Bank. About 30 billion tons of crude is known to be buried under the sea with approximately 7500km3 of natural gas together. Moreover, the fact that the main sea lines of communications pass through the South China Sea may cause any forms of violence, which may lead to a catastrophe to the world economy.
However, China, who triggered this territorial dispute from the very beginning, has always been in minor conflicts between ASEAN countries. On February 1992, China passed a law that declared the entire part of South China Sea as its territory, which started protests from around the region. Philippines started challenging ever since started from Chinese sovereignty over the Scarborough Shoal. For recent issues, Vietnamese naval ships and Chinese vessels have crushed into each other in the South China Sea. This incident aroused as China set up an oilrig in the region where both China and Vietnam lay claim. In the end, the whole ASEAN members called for selfrestraint for the concerned countries while changing their stances that previously showed avoidance to the collision for profits from China.
While the U.S.A. has suggested China to put a transient halt to the current situation, China claimed that 3rd countries should keep its natural stances, respect the countries of the area, and cooperate to bring out local peace and stability. Honglei, the spokesperson of the China’s diplomacy department has also stated that China has the unquestionable sovereignty over the Spratlys and the oceans around them. On the other hand, China also agreed to the fact that the conflict must be solved by direct negotiations among neighboring countries in a form of talking. 13
For Asian countries, including Korea, who greatly depends on their sea lines of communication for international trading and import of crude oil, the strategic, economic, regional importance of the South China Sea can not be over-emphasized as the sea lines pass through the Gulf bay, East China Sea, and the Strait of Malacca where the trading routes exist. Although Korea is not part of the conflict, this territorial dispute is deeply related to the matter other than just economic benefit. This conflict must be solved in a peaceful manner for the relationship between China and ASEAN members and for the local security in the region.
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Too Expensive to Enjoy Summer with Family Writer: Seryeong Lee Editor: Ji Oh Yoo Recently, to get relieved from the hot whether, innumerable people would visit the vacation spots with their family, including the water parks and amusement parks. During the peak season, the tickets for the adults were over 70000 won and the tickets for the children (36 months to elementary school student) were 60000 won. Child fare was as expensive as adult fare, and it was a major burden for parents.
the fee is expensive. On the other hand, in some cases, it is impossible to have fun. For example, most of the rides only let the person taller than 120cm to enter for the sake of safety. In Korea, most of the six to seven years old kids are taller than 120cm while 36 months to 6 years old kids do not. Thus, 36 months to 6 years old kids pay almost the same as adults but they would be only allowed to ride very few rides. Furthermore, even if one's child is taller than 120cm, he or she and his or her "The children's ticket is very expensive. If children would not be able to ride many rides durthe prices for the children were half of the adults', ing the peak season. Just to ride 2 rides, people that would be fare. However, the children's ticket is would need to wait more than 2 hours in average. almost as expensive as the adults'. Because of this, playing in water with family costs more than Since water park or amusement park man100,000 won. " said a visitor. agers know that the parents will visit their park regularly because of their children, they are not It could be okay if you have enjoyed much even if even trying to address these problems.
Summer Time Pool Fees Becoming Expensive / Š Photo provided by Seryeong Lee 15
Onnuri Tokens Writer: Yeojin Shim Editor: Hui Yeon Lim Don’t miss our special offer – crispy fried chicken at the price of 5000 won per each basket!” Prices from paper ads are often so cheap that sometimes they make people wonder whether companies make real profits. It is obvious that people prefer saving to spending money –this is the main reason why big markets (often called supersuper markets, SSM for short because of their effect) tend to survive and prosper in competitive fight among them.
their jobs because of reduced customers. Unlike huge markets which are rooted from big companies, small markets cannot let the price to be deflated limitlessly.
To give a ray of sunlight to this dilemma, the government has made a system called “Onnuri token”. This token can only be used in traditional markets. Fundamental intention of this token is to make our traditional market gain more prosperity. Onnuri token can be brought and exchanged at However, not everyone is optimistic over post offices and is now available, fluently used in this phenomenon. Many workers who own tradi- the traditional market. tional markets at the corner of the road are losing
Emission Trading System: Whom Does This Policy Target? Writer: Seonyong Kim Editor: Stephanie Yang The Federation of Korean Industries (FKI) has pointed out that if Emission Trading System is implemented in January, 2015, it would deal a serious blow to the home industry.
company. It means that it cares about the policy much more than it does about the product development. Without exception and relaxing regulations, companies will pay 28 trillion dollars in first 3 years. It is no wonder that companies should move Aug 10, 2014, announcing the companies’ their factories overseas. concerns about the enforcement of the policy, the FKI emphasized that government should either deActually, the Emission Trading System is a lay enforcing the policy or increase emission per- broken engagement already. U.S. has withdrawn mits. According to the FKI, the steel companies in- the pledge for their domestic industry, and Japan cluding POSCO and Hyundai-Steel should pay a fine and Canada are not willing to join it. China and Inor invest over 2.8 trillion dollars in the permit to dia do not apply to this case as they are classified as emit for 3 years. developing countries. Likewise, when this policy (Emission Trading System) starts, companies will get a big strike for the following four reasons. First, they will have to emigrate domestic production and will have to impose restrictions in manufacturing products in Korea. For this reason, companies’ management skills will weaken. Moreover, the companies’ new technology development and preoccupancy of marketplace may be postponed. For instance, a chemical company that deals with new materials like carbon fiber consumes much more energy than any other 16
We might kick out companies overseas to reduce pollutants. We should think carefully to implement the Emission Trading System. (*Emission Trading System: A central authority sets a limit or a cap on the amount of a pollutant that are to be emitted. The limit or the cap are allocated or sold to firms in the form of emissions permit, which represent the right to emit or discharge a specific volume of the specified pollutant.)
University Graduates' Payments Lower Than Those of High School Graduates Writer: Stuart Ko Editor: So Jin Park Korea has become one of the famous countries known with its high interest in education, and it is meaningless to say more about the importance of high education degree in Korea. As a result, with a high expectancy on the university diploma that it could bring economically and socially stable lives, the percentage of the number of students graduating universities grew from 51.9% in 1995 to 83.9% in 2008. Many Korean students hope their futures to be happy and satisfactory, and they believe the university degrees to be their crucial keys to such successes.
Even though Korea's number of university graduates is growing rapidly, domestic universities that are included in the 500 universities that were selected by the ARWU (Academic Ranking of World Universities) stayed in a tenfold increase in 2012 from an eightfold in 2004. The new analysis shows that university graduates in Korea are in excess; therefore it would not be easy for Korea to avoid the "Education Bubble" phenomenon. If such phenomenon continues, Korea might not be able to be praised as a high educational country by the US president again. Korea now seems to have a need to diversify the universities, and raise human resources professionally for various sections of society in order to prevent students from being driven to only the specific studies.
However, it came with a new analysis that 20% of university graduates are actually paid less than those who only graduated from high schools at work places. The society and students are prevalent with expectations for benefits from universities, but it came as a reality that universities in Korea do not meet those expectations.
Š http://www.zimbio.com/pictures/--RwmBj01il/South+Korean+Students+Take+College+Scholastic/CoPWRJ3ek9U 17
Pantech on the Edge Writer: Yoo Min Ahn Editor: Daniel Jung Were the walls of global market & large enterprises too high? The Korea’s first generation of venture company, Pantech, finally filed for a court receivership on August 12th. In the middle of the 2000s, Pantech scored three trillion won in sales and positioned itself in the world’s top 7 smart phone manufacturing companies.
jected, the court will liquidate Pantech. The professionals are estimating that Pantech will mostly like to end in the court receivership due to the fact that the ongoing concern value of Pantech is higher than its breakup value. Nevertheless, it is still a question whether Pantech will make further profits after the court’s help.
However, its glory did not last so long. Pantech eventually raised a flag of truce to the two giants in the global smartphone market: Samsung and Apple. The two giants have already swallowed 97% of business profits in the town and the rest of 3% is left to other companies, who are mostly situated in the red, including Pantech.
If Pantech cannot recover itself any further even after the receivership, creditors will move into a sale procedure. An Indian smart phone manufacturing company, Micromax, and few other Chinese corporations are mentioned as nominees for the takeover. However, the concern is that when Pantech is merged with foreign companies, its pristine smart phone technology and patents can be leaked Another major obstacle that Pantech has out. Including world’s first fingerprint verified LTE faced is the fact that the board of directors forcesmart phone, Pantech owns over 20 thousand patfully pushed the Mergers and Acquisitions (M&A) in ents, which can be taken by foreign companies. order to enlarge the size of the corporation rather than to take it step by step. It is a huge loss for the future of Korea, as the importance of information technology emphaUnconsidered M&As and continued stagnasizes, keeping those patents in Korea is highly retion of sales in foreign market have led Pantech to quired. Large giant companies in Korea such as a serious financial difficulty. The current status quo Samsung and LG need to overview Pantech’s enterof Pantech is gloomy; last month, Pantech failed to prise value more considerably and then to to regret redeem 50 billion won of bond and for this month, it later. 20 billion won. Moreover, when Pantech was lasting its life barely in the national market, it encountered a fatal blow. From March to May, the Korean government announced business suspensions to mobile carriers in circulation for 45 days each, who provided exceeded subsidies to attract customers. For this reason, Pantech who only made minimum business sales in Januray and Febuary was directly hit by this action. Yet, the situation of Pantech is deteriorating even worse after the circular business suspension ended. Pantech did not make any significant result; 50 thousand inventories are piled up Pantech on the verge of court receivership now. / © Androidguys.com Since Pantech filed for the court receivership, its bond and liabilities are frozen. If the court accepts the receivership, they will find a way to save Pantech. It is decided on court’s hands, whether they will maintain the current board of directors or change them. If the receivership is re18
Pope Francis’s Visit Korea Accompanies Not Only Hope, But Fiscal Growth Writer: Hwisu Kim Editor: Jihoon An As Pope Francis landed in Korea in the morning of August 14th, 2014, people of many religious backgrounds were excited of the presents that Pope brought. This included priceless hope for the sadness that engulfed Korea following the sinking of the Sewol ferry. Also, many economists are expecting great fiscal growth. Some economists expect that the market will grow by as much as 55
billion KRW, based on the Brazilian market when the Pope visited there for five days. However, Pope’s visit is not only beneficial. It is actually splitting the unity of the nation: Some critics argue that it is all just a show to grab the attention of the public from the real political issues that include military service issues, Sewol-special-law issues, and many other headline-worthy matter.
Malaysia Airlines Faces Unclear Future: Can It Survive After MH370 and MH17 Tragedies? Writer: Jiyun Choi Editor: Yugyeong Jeong The Malaysia Airlines is now facing a huge a day for the past three years. The disappearance challenge caused by the disappearance of the Flight of many Chinese passengers onboard also caused a MH370 in March with 239 people aboard, followed backlash in the crucial Chinese market. by the downing of MH17 carrying 298 people to Experts do not see any short cuts to recovUkraine. ery, and some analysts say that the airline will not The missing MH370 believed to have be able to survive a year without a substantial cash crushed far off course in the southern reaches of injection from the Malaysian government. the Indian Ocean has still not been found. MH17 The airline needs far-reaching changes. was shot out of the sky over an area of Ukraine controlled by the pro-Russian separatist rebels. Due to its financial struggles, some analysts Some show their sympathies to the airline as they advocate the sale of the airlines to bring in fresh view them as a victim, whereas others argue that capitals, ideas and expertise. Like all international the airline is responsible for the tragedy since they airlines, the Malaysia Airlines needs to renew its fled over the conflict zone with poor risk- fleet with modern jets to remain competitive. Inmanagement decisions. stalling a new executive leader may be another way to make a break with the past. “Malaysia needs to Even before the disasters, the carrier had bring in a new CEO and head of flight operations to among the worst financial performance of any airrestore employee and consumer trust in the airlines. MAS, Southeast Asia’s fourth-largest airline lines,” said travel consultant Henry Harteveldt of by its market value, was having negative-operating Atmosphere Research. cash flow and was already losing about $1.6 million
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The Pope’s Souvenirs Writer: Taeyoon Kim Editor: Hawon Lee Many souvenir shops in Vatican, the city of profits, thanks to the Pope’s visit. Most hotel rooms the Pope, sell items that idolize Francesco the Pope were booked by foreign reporters coming to write as a superman. These items are very popular articles about the Pope's visit. among tourists, and the fever for these items has stretched out to Korea as well after the Pope's visit. On August 14th, hundreds of people crowded the Myeong-Dong Church to buy souvenirs that celebrated the Pope's visit. The most popular item was a t-shirt with the Pope's face printed on it. Some even bought dozens of copies to share them with others. Other items such as towels and mini statues were also sold well. A lot of people have been longing for another visit of the Pope since his first visit in 1984. The excitement after this long awaiting worked as a main factor for the great popularity of the souvenirs. Many hotels near Seoul are also enjoying
Pope Francis / © casarosada.gob.ar
Jefferey Fowle Detained in North Korea for Leaving a Bible Writer: Jieun Jung Editor: Yoojeong Lee Jeffrey Fowle is a father of three children with a passion in adventure. He was in North Korea as part of a vacation tour. However, he was detained allegedly for leaving a Bible in his hotel.
try's leaders with a religious-like fervor. As a result, it takes a hard line on Christians proselytizing within its borders. It is not yet clear if Pyongyang will consider the crime of leaving a Bible in a hotel room to be grave.
Fowle’s wife and her three children appeared at a news conference in Lebanon, Ohio. According to the Democratic People's ReThey apologized to the reclusive state and asked public of Korea, the country has detained three U.S for Fowle’s release. citizens for violating its laws. In April, North Korea detained a 24-year-old Miller Matthew Todd. North "The family would like to express their Korean officials said he entered the country heartfelt apology to the people and the governon April 10 with a tourist visa, but asked for asylum. ment of the Democratic People's Republic of Korea. The country also has been holding a KoreanJeffrey has apologized publicly for his actions and American missionary Kenneth Bae since November Jeffrey's family have asked the North Korean gov2012. As the news of Fowle's arrest circulated, Peoernment for mercy toward Jeffrey and asks for his ple have begun to tweet questioning the reason for release," said Timothy Tepe, the family’s lawyer. In Fowle's tour to the country. North Korea, citizens are taught to revere the coun20
Deception of the Devil Writer: Yujung Choi Editor: Dylan Park In the midst of the hot season, the deceptions of supermarkets in Korea are increasing. What is happening? Some supermarkets are selling spoiled eggs to customers for their own profit. Eggs rot easily in hot and sunny days, but they are still being sold to customers. Supermarkets are lying to the customers in order to not waste money by throwing away rotten eggs.
Korean supermarkets coaxing customers with rotten eggs / Š Photo provided by Yujung Choi
Consequently, customers who are buying the eggs with no doubt on their qualities are protesting against the markets. Although many people are upset about the supermarkets, some of these companies would not apologize to the victims. Rather, the supermarket companies are straight up and unapologetic. One should take care to be careful not to be another victim of this deception.
Drugs Available At Convenience Stores Writer: Yujung Choi Editor: Minsung Kim There are so many aspects of controversy regarding medicine and convenience stores. What do they have in common? General markets, including convenience stores are now allowed to sell nonprescription medicine. Many people have opposed this plan, but it was legislated any way. We can also see medicines that can be prescribed at the pharmacy. Many who do not regard this change as a serious problem have let this legislation to be in our society. Some even welcome it because of the fact that they can buy drugs easily even at night. But since the employees that are selling the medicine Controversy over drug availability at convenience are those without professional knowledge, there stores / Š Photo provided by Yujung Choi are risks of mis-prescription. Thus, it is of high controversy whether this practice should be continued. However, as there are many advantages as well, as we can purchase necessary medicine at the store.
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Two Giants Hand in Hand Writer: Gue Jeong Jeong Editor: Hye Won Jang The Coca-Cola Company, probably the world’s best-known enterprise, undertook 17% of MONSTER BEVERAGE’s stocks in August 14, 2014. MONSTER is a famous company that sells energy drinks. Rumors about Coca-cola trying to acquire MONSTER’s shares have been rising since 2012, but Coca-cola had denied it. Now that it is revealed to be true, major foreign presses including CNNMoney have reported the news excitedly, saying that this business between the two giants would cost about 2 billion dollars. Above this, the two enterprises consented to exchange a portion of the brand ownership in order to consolidate competitive power in differentiated fields.
ness in the world market. Coca-Cola is currently known to have poor sales records because of concentrating too much on health care. According to Beverage Digest, a professional media whose specialty is on beverages, the scale in production of Coca-Cola diminished by 2% compared to last year. It is contrastive to MONSTER’S, which has an increased rate of 7% in productivity on energy drinks. “This investment in share is an effective method for Coca-Cola to take part in the global energy drink market,” said Muhtar A. Kent, CEO of Coca-Cola. “Coca-Cola will continually pursue the amiable partnership to take a number one lead in the drink industry.”, he added.
Now Coca-Cola can newly take care of nonenergy drinks of MONSTER’s subsidiaries, like Natural Soda or Hubert’s Lemonade. Meanwhile, MONSTER will control the energy drinks of Coca-Cola. Other provisions of MONSTER will be merged with Coca-Cola’s, but MONSTER is expected to use a more aggressive strategy using Coca-Cola’s vast network.
The energy drinks market is continuing to grow rapidly, and it is expected to grow up to 215 million dollars, which was 125 million in 2012. The professionals expect Coca-Cola to gradually take over part of MONSTER’s shares, in the long term to merge the whole company. This is convincing because there is a precedent of Coca-Cola taking over a whole company of ‘Vita Coco’ and ‘Honest Tea’, Experts say that the deal is quite positive to though the start was only a purchase of small Coca-Cola, because it can improve its competitive- amount of stocks.
Senconomics: The Path We should Take Writer: Jeongyun Hong Editor: Euiyoung Kim The Indian economist Amartya Sen and Sin- by following his theory, we would easily find what gapore’s former Prime Minister Lee Kuan Yew had we should and should not do for the development a heated discussion since Singapore made a meteoric rise through Lee’s authoritarian rule. Sen is a 1998 Nobel Prize winner recognized for his contribution to the field of welfare economics. He strongly argues that unchallenged dictatorial powers can easily fall into irresponsibility and opacity. Society would deteriorate even more because of the collusion between politics and business. The crisis would lead to inequality, so the vulnerable social bracket must be in serious poverty. If people faced this crisis without democracy, they would lose their chances to raise their voices for basic standards of living. Eventually, the vicious cycle would be unstoppable. Sen, however, claims that © FreeDigitalPhotos.net 22
Thus, Sen argues that the way of development that Lee Kuan Yew had pursued is definitely not a recommendable way. Singapore is the sole country that still uses flogging as a punishment. Lee even speaks out that according to the Asian authoritarianism, the number of votes should differ according to age. People aged 40 to 60 should vote twice because of their active and critical contribution to the economics. With these absurd points, the national satisfaction level is at its lowest although Singapore is known as the hub of trade. Sen believes that it is the loophole of development without democracy.
poverty should not count merely income. Instead, we should consider capability as a factor. Economic development comes with selection and eventually ends up with the improvement of individual capability, as shown by the Sen Index.
So what should we do now? There are two things that Sen emphasized. First of all, we need a practical democracy. Freedom of media should be guaranteed and freedom of individuals should not be restrained by Big Brother. Education is also important. The government should develop an educational system which enables students to think in both critical and creative ways. They should relieve Furthermore, Sen has devoted his life to the inequality in education. Ultimately, the governpoverty. Through his interests in the neglected and ment should always remember that they exist for poor bracket, Sen suggests a ‘capability based ap- the nation, the neglected individuals, and the poor. proach’ in order to solve poverty. The criterion of
Ebola Virus : The Dangers Writer: Minji Cho Editor: Annie Song Recent news of the Ebola virus has taken the world by storm – some are considering the disease as “the epidemic of the century.” Some fear that Ebola, if not eliminated with a cure soon, will lead to a dramatic decrease in population not only in Africa, but worldwide. In South Korea, a Model UN event hosted by the Sungshin Womens’ University was severely criticized for inviting a delegate from the virus’s host country. The government is tracking down travelers who visited this region to check if they are carriers of the deadly virus. But what is Ebola exactly? Why are we so scared of it? Ebola Virus Disease (EVD) is a severe, often fatal illness in humans that was discovered first in 1976. It has been mainly active in West and Central Africa, and the mortality rate started out at 90 % (about 60% now). It usually transmits through bodily fluids (saliva, blood, semen, etc) or contaminated environment, and the incubation period (the time from the original infection to the appearance of symptoms) is about 2 to 21 days. Although there is no foolproof cure of vaccine as of yet, early treatment increases the chances of survival. EVD became so prevalent in Africa, because patients lost faith in the usually successful Western medicine and went to village healers, who often worsened or © FreeDigitalPhotos.net contributed to the spreading of the virus. 23
The media coverage is intense, and citizens are in a state of panic, for they are concerned that the disease might make its way far beyond Africa. However, there is no need for worry. Ebola is only dangerous for countrymen with weak health control capabilities. The US decided to bring back two Ebola virus patients for treatment at the Emory University hospital, because it was confident in its ability to cure them. Ebola is only a great threat to nations where sanitary gloves, moon suits, and quarantine facilities are not readily available. The average citizen living in South Korea, US, Canada, and any other area privileged with decent health care is much more likely to die of cancer, a strike of thunder, or even Malaria.
less about something that does not concern their own citizens. Half a million people die of Malaria every year, but it is considered endemic to Africa, a “poor person disease� and therefore not worthy of our attention. Ebola could have easily been prevented if developed nations found Africa’s unsanitary treatment situations and burying rituals as problematic. The media has simply transformed Ebola, an indeed dangerous but unthreatening disease to the wealthy, into something that draws the attention of a higher income audience. However, this might not entirely be a bad thing. As we pay more attention to Ebola and its spread, the advancement of vaccines and treatment will accelerate. Media coverage and investments from rich nations tend to speed up the process much more. More people learn about the dangerous health situations in Africa, and set about to change it. Health within only our own borders is no longer a safe or smart policy. We must work together to raise the life standard of others as well.
Why is Ebola becoming such a big deal in rich, developed nations? Maybe it is because the media has blown the Ebola situation into epic proportions. Most of the diseases that are equally fatal and contagious due to poor sanitary facilities like Ebola, stay in Africa. Developed nations could care
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All About Korea's Retirement, White Book Writer: Seryeong Lee Editor: Stephanie Yang Samsung Life Retirement Research Institute they can't. has published a white book called ‘Korean's RetireThe frequency of going out together shows ment Preparation 2014.' To publish the book, Samthe rate, 61% at 20-30 years old. But, 60-70 years sung Life Retirement Research Institute tried hard old answered 19%, which showed a big gap. to scrutinize and analyze Korea's preparation of retirement. Not considering retirement status, couples who have more than one hour talk are 41%, 60-70 The white book investigated 1,782 nonyears old who have relatively enough free time do retirees and 518 retirees in four areas: property, not talk often as 20-30 years, 22%. health, activity and relation. The first book was published on 2012. 79% of couples who had a conversation to prepare for retirement life answered they are Non-retirees thought they would need 211 happy. 40% of couples answered they are not million won, the minimum cost of living, and 319 happy. million won to maintain the life without financial lack. However, a real retiree's average monthly inKim Chang-soo, the boss of Samsung Life come is 238 million won, more than what non- said, "The published white paper was worthwhile retirees expect but not plentiful enough. to provide an alternative by comparing the present condition of retirement preparation and the life Non-retirees who prepare for retirement by after retirement. Preparation for old age must consaving regularly comprise only 39%. Moreover, the sider diverse area, not only one area in finance, monthly average saving expenses is only 15 million such as health, work, hobby and relationship." won. However, it seems that many people do not Many non-retirees are interested in health, agree with the white book. because more than 70% have regular checkups. Besides, the health insurance which non-retirees want "Is this an accurate information? I haven't to affiliate is Alzheimer's disease and long-term re- heard Korea is the country where people prepare cuperation. for the retirement!" On the other hand, points of regret that re"According to the white book, retirees earn tirees did not prepare for their retirement are more money than non-retirees like me. I can't bemedical expenses and nursing fee. Next on the list lieve it!" is regular exercise. "238 million won is enough money to live More than 80% of 20-40 year old non- wealthily!" retirees want to keeptheir jobs after their retirement. 61% of retirees also answered that they want to keep working. The reasons why retirees want to keep working are to arrange living expenses and maintenance of livelihood. Next is to feel the meaning of life and worthwhile, 25%. 24% is satisfied with their leisure life, 27% are dissatisfied and 49% answered so and so. This shows even when there is time to enjoy leisure life, 26
Thinking Outside the Box: Balenciaga Writer: Yoo Min Ahn Editor: Stephanie Yang Have you heard of Balenciaga? Maybe it is not as familiar as Louis Vuitton or Chanel that are praised by women. Yet Balenciaga has still been persistently loved by people in fashion industry for almost ten decades. Despite its fame, after Cristobal Balenciaga made a clean break from the business in 1968, Balenciaga started to suffer from declining market share.
Balenciaga. By visiting this site, designers can get creative ideas developed from traditional root of Balenciaga. The best cross work of tradition and innovation is Balenciaga’s June, 2014 collection. Cocoon style is only seen in traditional Balenciaga’s women wear; however, this time Wang adapted Cocoon style to men’s wear. People and fashion industry admired this adventurous spirit of Balenciaga. In fact Balenciaga’s profit in this quarter rose During the long period of downfall, Balenby 5.8%. ciaga made unexpected yet successful turning points to bring back their old glories. First, they re- If Balenciaga only focused in its vicinity, it could cruited rather preposterous and young designers have walked the road of failure. However, Balenthat do not seem to fit in Balenciaga’s traditional ciaga was smart enough to accept changes. By reimage. For example, in 1986, Balenciaga recruited cruiting young creative designers to their field Nicholas Ghesquiere as a creative director, who brought fresh ideas that Balenciaga could not think was only 26 years old and had no professional ca- before. Yet if Balenciaga completely ignored its reer. It was a very shocking scouting because Ghes- own heritance, Balenciaga would be nothing differquiere was a fairly young designer to take the posi- ent from Zara or H&M. This is the reason why tion of creative director. However, despite doubts Balenciaga is a masterpiece of its own identity that and worries, Ghesquiere designed a motorcycle bag they built up for ten decades. called “Arena” with funky style, which brought their old fames back to its place. They took another adventure in the industry in 2012. Balenciaga recruited Alexander Wang as their head designer. As Wang was well renowned for his successful career in American street style from 1980s to 90s, many people were worried that Wang and Balenciaga would not harmonize well. However, currently many customers compliment their collaborated designs. Balenciaga’s CEO, Isabelle Guichot, believed that the best way to bring innovation in company is to bring in fresh talents; so she implanted her beliefs well in her business. In addition, Balenciaga always put their greatest endeavors to draw connection between © ifashion-blog.com heritages and innovation. They believe that heritages may work as catalyst of innovation only when designers connect current trend with Balenciaga’s heritages. Balenciaga recommends their employees to visit the historical record archive to achieve this. Guichot explains that historical record archive is like a photo album that has family photos inside. It means that archive is both identity and root of 27
South Korea to Hike Cigarette Prices by 80% Writer: Jiyun Choi Editor: Stephanie Yang On September 11, South Korea has proposed a tax hike that would nearly double cigarette prices to reduce the world’s highest male smoking rates.
smoking in public places. Moon said tobacco packaging would have to include pictures of the harm caused by smoking, while the advertisement would be banned in retail stores. “We hope our comprehensive anti-smoking measures will lead to a conThe proposal was immediately criticized by siderable cut in smoking and rise in social spending the main opposition party, bringing out the diffion health” Moon said. culty in implementing anti-smoking regulations in the nation where the health risks associated with People expressed mixed opinions. The Kosmoking are not widely publicized. However, Health rean Association on Smoking and Health, the antiMinister Moon Hyung-Pyo said it was necessary to smoking civic group, welcomed the hike, saying the counter what has become the “biggest threat” to increase in price is the best solution to lower the national health. nation’s smoking rate. The proposal would see the average price of “A 10 percent increase in tobacco prices a packet of cigarettes rise from 2,500 won to 4,500 leads to a 4 percent decrease in tobacco consumpwon (US$2.42) from January 1 next year. Moon said tion.” The group said, “This is more effective among the ministry predicts this increase would help cut low-income group and teenagers” tobacco consumption by 34 per cent and raise anOn the other hand, the Korean Smokers’ nual tax revenues by 2.8 trillion won. Association said the government’s real purpose was Nearly half of all adult males in South Korea not to enhance people’s health but to make up for smoke. This is the highest rate among member decreased tax revenue. countries of the Organization for Economic CoopCho Yoon Ju, 36, a smoker, said the governeration and Development ahead of Turkey, Greece, ment regarded smokers as pushovers. “If the govEstonia and Japan. ernment really cares about people’s health, it has Recently, the government has taken serious to collect more taxes from cigarette companies too, measures to bring down the rate including a ban on not only from smokers” she said.
Make Peace to Go Against Russia? Writer: Gue Jeong Jeong Editor: Stephanie Yang The winner of the Novel Prize in Economic Sciences, Robert James Shiller of Yale, warned that the current economic condition is very similar to that of 1937, when German was dominated by Hitler's Nazi regime. He claimed at the weekend edition of Guardian that the more gloomy the future prospects of global economic condition become, the more world peace will be threatened, and that the agreement to terminate the main cause, disciplinary measures against Russia, should be immediately prepared.
of business-stimulating measures came into force. Shiller accentuated that the current economic situation was not worse, but many similarities between 1937 and 2014 made people to express pessimism toward the economy. Above all, according to him, a lot of people are feeling depressed and disappointed and lead miserable lives. Shiller warned that social anger, intolerance, and potential violence may lead to prolonged recession and underconsumption. Of course, some may think that economic growth is not important compared to other practical problems, and may criticize those who pursue economic abundance to be an egoist who only thinks about higher standards of living.
Professor Shiller pointed out that the depression by Great Crash in 1929 had become even worse in 1937, and that a real recovery came about after the Second World War, when the grand scale 28
But Shiller indicated that individuals' selfesteem and process to become richer should not be neglected. Also, as people always compare themselves not only with other people but also with themselves living in the past, economic growth is the main factor that will eventually hasten world peace. It is clear that most people cannot always be richer than others. However, they can be made to feel like they are richer than the past, and this literally means economic growth, thus resulting in more happiness. It is certain that if people experience recession in 2014, which is the time when the surroundings of so many individuals become so much worse than before, it will be much harder to recover from it, individually and socially. To inform the danger the current situation holds, Shiller especially concentrated on the era when Hitler and Mussolini was dominating the nation, which caused 'underconsumptionism', that devastated the whole nations. As before, the aggravation of the present and continuous worries for the future can cause consumption to shrink and savings to increase, which will diminish investments, eventually leading national shrinkage- a continuous vicious circle that can hardly be stopped. A classic example of recent financial crisis can be seen in the effect of the financial crisis in 2008 that influenced Ukraine and Russia. According
to the IMF, or International Monetary Fund, Ukraine and Russia had an increase of the per capita national income between 2002 to 2007, respectively 52% and 46%- however, 0.2% and 1.3% last year. This hopeless despair can help to understand the annexation in Russia and Ukrainian segregationists' anger. But Shiller also claimed that the intensified despair at the time was not the only problem for Ukraine and Russia; it influenced many other countries in many directions. Shiller added that there might be a catastrophe soon. The attempt to hit Russia's economy by restricting its access to Western finance, oil exploration, technology, and services and arms by Europe and the U.S. will make things worse, and will not solve the current problems. He suggested that current situation was very much comparable to the 1900s. He expressed a concern regarding sanctions against Russia, because it could cause an economic recession in the entire Europe, and weaken citizen's confident belief and support towards democratic procedure entailing peace. Thus, although it is inevitable that sanctions against international attack should be practiced, the dangers that will come along with them should not be ignored, so the U.S. and Europe should end punishment of Russia as soon as possible. And this will eventually lead to not only world peace, but economic peace, too.
Face to Face for Society Writer: Yu Jung Choi Editor: Stephanie Yang Do you have your own smart phone? If you each other directly and through this theycan undersaid yes, you may have it and communicate with stand each other more deeply. The social problems other people using your phone network. such as depression and alienation pervade nowadays in our society. Through face to face communiThese days, through networks, we can meet cation, we can overcome this. various people all around the world very easily and this may lead us to think we are always with them. This is why I say face to face communication By developing networking service, we can facilitate is more important than any other form of commua convenient life. nication in our lives. If you want to feel the friendly air, Let's talk face to face with your people, right But the most important thing that cannot now! be ignored is face to face communication. In our developed society face to face communication remains important. People can contact 29
Just as a Goal? Writer: Yu Jung Choi Editor: Stephanie Yang Students, which is more important: results cerned about. We are just aiming to achieve good or purpose of their work? results. Surely, results we attained are important in our society where the achievement is considered For many, simply making good results is imthe most valuable asset. But it is through the path portant. No matter what they experienced through you walked to achieve what you want that will their works, they would just dwell on their results. teach you more important things. How about you It is this problem that our society are con- reflect your achievement?
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