The TeenBiz 2014 Summer by theteenbiz

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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...

APRIL MAY JUNE www.theteenbiz.com VOLUME #3 - ISSUE #2 CHIEF EDITOR: STEPHANIE YANG

EDITORâ&#x20AC;&#x2122;S NOTE Greetings! Once again, I am very happy to introduce our summer publication! It is such a great pleasure to see our writers and editorsâ&#x20AC;&#x2122; hard work for the past three months. Thank you everyone for continuing to put in your best effort into making one of the greatest student-run newspapers! I have been very ecstatic to read each one of your articles. It is unbelievable that a group of high school and middle school students can come up with such thoughtprovoking topics and show the adults that teenagers also care about the economy, business and the world in general. One thing I would like to note that instead of arranging the articles by topic, starting this edition we will publish the articles in chronological order. Please continue to support The TeenBiz and help spread the word about our publication. Thank you and hope to work with you in our Cycle 3. Most of all, have a great summer and enjoy your summer vacation! Have fun watching the World Cup! Sincerely, The TeenBiz

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.

COVER IMAGE IN THE COURTESY OF FREEDIGITALPHOTOS.COM 2

CHIEF EDITOR: STEPHANIE YANG

COPY EDITORS: ANNIE SONG DANIEL JUNG DYLAN PARK EUI YOUNG KIM GA-EUN KIM HAWON LEE HEEWON JUNG HUI YEON LIM HYE WON JANG INSIK JANG JAE EUN LEE JI EUN SEO JI HOON AN JIOH YOO JUNG HYUN LEE MINSUNG KIM

THE TEENBIZ TEAM

NAYOUNG OH PAUL SCHAAF

WRITERS:

SEUNG LEE LEE SO JIN PARK SU HYUN LEE YOOJEONG LEE YUGYEONG JEONG

PUBLIC RELATIONS: SALES/ADVERTISING: CHAE MIN LIM DASOL JEONG DONG MIN SHIN JEONG HYEON JEONG YE LIN SON YOUNGHYUN KIM

HR/SPONSOR: HAYEON SONG HYUN JOON YIM JAESUNG LEE JIMIN KIM SEONG PYO AN SUMIN YOON

EUNYOUNG LEE GA YEON LEE GUE JEONG JEONG HA YEON KIM HAJIN HYUN HOYOUNG CHANG HWISU KIM HYE KYOUNG JANG HYOJUNG KWEON HYUNG SONH HYUNSUE JUNG JEEWON LEE JEONGYUN HONG JI-IN PARK JI SU LEE JIEUN JUNG JIHO KIM JIHWAN YOO JIYUN CHOI LARRY JEON MINJEE KIM MINJI CHO NAHYUN LEE SEJUNG KIM SEONG-SOO KIM SEONYONG KIM SERYEONG LEE SHIYOUNG KIM STUART KO SUNG MO KOO TAEJU KIM TAEYOON KIM WOO-SEOK KIM YEOJIN SHIM YEON JE SUNG YOUNG JIN LEE YOO MIN AHN YOUNGJU KWEON YOUREE KIM YU JUNG CHOI

Same City, Different Regulations Writer: Seryeong Lee Editor: Ji-Oh Yoo If you have to smoke in public places in two different boroughs, but in the same city, where would you like to smoke? At the first place, you only have to pay a fine of 50,000 won for smoking in a public area. At the other place, you have to pay 100,000 won for a fine. Which place would you like to go for a smoke? The majority of smokers will choose the former. Same city but different punishments. This is what the recent Seoul is like. Seoul's Seocho-district and Gangnamdistrict have decided the Gangnam main street as a non-smoking area since 2012. Seocho-district has regulated that anyone caught smoking at the Gangnam main street will be required to pay 50,000 won for a fine. On the other hand, in the Gangnamdistrict, the amount of fine is regulated to 100,000 won. By this, if a person smokes in Gangnam and pays the fines in front of the No. 11 Gangnam Station exit, the person who smoked will only be required to pay 50% of the fine in Gangnam (50,000 won). Moreover, 32% of the boroughs in Seoul has restricted people who gets caught smoking in exterior non-smoking places to pay a fine of 50,000 won, while the rest of the boroughs has restricted the amount to 100,000 won. Consequently, the Seoul City Hall has tried to adjust the amount of fine between two boroughs, however the two parties did not come to an agreement.

<The price of 1L Bag> The prices at the Seocho-district, Gangnam and the Songpadistrict are four times more expensive than those of Jongnogu. / ÂŠ Graphics provided by Seryeong Lee

The differences in the amount of fine for smoking are not the only problem. Starting from last year in Seoul, the meter-rate system of food waste is also causing a conflict because of the difference in uniting the price. Like these, many regulations are lacking in fairness, equality and unification. Thus, numerous dissatisfactions and complaints are being sent to the Seoul City Hall. However, the response by the City Hall has always been the same.

<The price of 120L Bag> The price at the Gangdong-district is 3500 won more expensive than the Dongdaemun-district. / ÂŠ Graphics provided by Seryeong Lee 5

the amount of fine of exterior smoking. By this, they allowed each borough to choose any amount. Due to the conflicts, the opinions regarding this problem among web users are also different. Web users who believe that the problem is a serious one, claim: "The government has to integrate the different regulations among the boroughs as soon as possible!" "I'm really confused with these different restrictions. They need to be organized!" "Just unify all the regulations into one for all citizens! Is that difficult?" On the other hand, there are users who think that the problem is a minor one, insisting: "As they are "boroughs", they are allowed to be differ"We apologize, but we can not adjust and ent." integrate all those restrictions. We should respect "In America, each state has different laws, each borough's decisions and follow the ordiand it does not cause any problem." nances." The Map of Seoul / © Naver

"Smokers would not go to a place where the Here is the reason for the difference in the fine is cheaper "just" to smoke." fine for smoking in public places: When The Ministry of Health and Welfare determined the fine of What do you think of this problem? interior smoking to 100,000 won, it did not decide

Fashion on Wheels Writer: JiEun Jung Editor: Paul Schaaf Along with the rise of America’s sensational food truck market, a new type of truck market has taken its first step into the industry: Fashion. Fashion trucks are starting to become a trend in Los Angeles according to "ABC", America’s TV channel. They use bright color, original graphics, and bring out catchy names to communicate with their customers in a special way.

the customers are fascinated by fashion trucks. The trucks also come with dressing tables and fitting rooms to benefit the customers. By making use of this unique business strategy, compared to other fashion shops, fashion trucks' popularity is increasing enormously. Fashion trucks are even considered the future of the fashion industry. For instance, Stacey Steffe, who along with Jeanine Romo has launched "Le Fashion Truck", said, “The growth has not been as fast as the food truck boom, but it has gone global. We’ve heard from trucks in Europe, Africa, everywhere, so I think it’s going to continue to grow.”

They are equipped with sensually-selected party dresses, suits and chic jewelries such as earrings and bracelets. If the shop owners feel that they can update an item to make it more modern or stylish, they redesign it on the spot. Everything in the truck is recycled, vintage or handmade. In addition, ABC says that one-on-one fashion suggestion service and cheap prices are other reasons that 6

As mentioned, with the success of the fashion truck industry the number of entrepreneurs, people who seek to create their own businesses, is rising every year. Their success boils down to some pretty impressive sales techniques and entrepreneurial strategies. If you sum those up, you will notice approximately four main cohesive strategies.

know exactly where a truck stops the next time, its owners convey a simple message-utilizing tweets (Twitter) to give out notices about their current destinations, hence forming the third main strategy. Not only is this a very fast procedure but it also is quite a cheap one. Keeping overhead low is the last point, which is obvious but important. Selvedge Dry Goods is having successful sales ever since they have started their business a year ago with less than $10,000. With that amount of money they were able to get off the ground, save money to pay for monthly rent, and invest a few thousand dollars to buy a truck to expand their business. As a consequence, their overall low expenses enable customers to shop for very low prices and yet it is still profitable for the fashion truck owners.

The first one is satisfying a compelling customer’s need. Among the four strategies, this is the most important one which makes fashion trucks so distinctive. So vintage and unique are the products they sell that it's possible to awaken the customers‘ desire of consumption on a very high level, which normal stores simply can't reach. Fashion trucks offer products from small rising designers or large scale discount distributors instead of major brands. They mostly sell women’s fashion items and accessories with prices ranging from about $25 to $55.

Lately, due to the food truck legalization in Korea, the amount of food trucks will increase along with their popularity so it's likely that fashion is the next big thing to be considered by the truck industries . Furthermore, with the rise of building rents and long-term recession in America, it is beginning to look more promising for new businesses to start there on the road too. Fashion trucks have proved to be successful, but they might even improve more in the future so we should be on the qui vive and looking forward to its future.

The second one is all about the location. Not only fashion trucks, but also food trucks are derived from this strategy. According to Stacey Steffe, “It goes back to ideas of location, location, location.” She could take her mobile boutique to different cities within Los Angeles. Being able to be at the right place at the right time has turned out to be a huge advantage. To make sure, though, that the customers

Fashion trucks in trend / © Photos provided by JiEun Jung 7

Amazon Offers Employees $5,000 to Quit Writer: Ji-In Park Editor: Hui Yeon Lim Amazon is offering its warehouse employ- 10% of the employees took the offer and left the ees up to $5,000 to quit their jobs, even as the company. company is in the process of adding workers and Bezos’s idea originates from Zappos, the locations. online footwear and clothing retailer which AmaThe "Pay to Quit" program, which was an- zon purchased in 2009. Zappos continues to opernounced by CEO Jeff Bezos in his letter to share- ate as a separate unit from the main Amazon site. holders late Thursday, is an effort to make sure that Amazon is in the process of adding warethe Internet retailer's employees really want to be houses so that it can reduce delivery times to custhere, working passionately for the company. tomers. Currently, Amazon has 96 of such locaThe CEO Bezos mentioned, “The goal is to tions. Company filings show that there were encourage folks to take a moment and think about 117,300 full-time and part-time employees last what they really want. In the long-run, an em- year, nearly one third of its employment level a ployee’s staying in a place they don't want isn't year before. healthy for the employee and the company." Amazon keeps aloof to say how much it Bezos said that the offer is made under the pays its warehouse workers, although it says the headline "Please Don't Take This Offer." Amazon workers are paid 30% more than a regular retail will suggest its associates to quit once a year. The worker. company has tested this program in recent years, According to the data gathered last year by but rolled it out to its 40,000 warehouse employees the career website, Glassdoor.com, Amazon pays in January, according to the company spokesits warehouse workers an average hourly wage of woman. New employees are offered $2,000 to about $12, about $25,000 for a full year. Amazon quit. The plan is to increase that offer by $1,000 also announced that its full-time workers get stock each year until the amount hits $5,000. Less than grants that are about 9% of the employees' pay.

Day Marketing Writer: Eunyoung Lee Editor: Nayoung Oh ‘Day Marketing’ is a marketing technique that shows the presence of customers by giving special meaning to a specific date, thus by naturally creating the demand for the product. Throughout the year, there are a variety of anniversaries celebrating many different things. Utilizing these anniversaries well, the power of Day Marketing can be enhanced. Because of the strong ties between wellused Day Marketing and the increase in sales, companies voluntarily make special days that are associated with their products. This tendency has caused the number of meaningless anniversaries to grow in number, without any actual use.

ginning, the anniversary is clearly beneficial to the founding companies, but once they get sympathy, an unexpected element begins to appear. The anniversary created by the company gets out of the category of corporate assets and brings along negative effects. Starting from this moment, the selection between a hard-edged management and a lasses-faire attitude to the consumer market is needed.

Still, there are some cases when the anniversaries specified by the companies or brands are not always beneficial to their businesses. At the be-

When communicating with consumers about the anniversary of a brand, companies no longer own it but form another competitive market. Furthermore, even some benefits such as discounts can occur to consumers, which lead to the original meaning of the day being faded due to an excessive commercialization. Amidst this flood of Day Marketing, a wisdom that enables us to consume wisely and not become seduced by deceptive advertisements is needed more than ever.

Does Saving Always Make Extra Money? Writer: Yeojin Shim Editor: So Jin Park When I was very little, my sister and I al- financial market and expects that the price level ways had a competition of saving every extra will go up by 6%. money we get from the bank by giving it to our However, when 2034 comes and Irene goes mother, as we have learnt that it gives extra money to her bank to find her money, inflation rate turns for us if we lend some money to the bank. out to be higher than the estimated rate, and the But, is the statement in my story always price level has risen up to 8%. Irene still gets intertrue? When we put money in the bank, we will al- est of 10% as she had signed the contract. Thus, the ways have more money after all when the entire bank wins in final, as it saves 2% of Irene’s money. interest adds up. To find the truth, we should first look at what the ‘interest rate’ means. Interest rate Nominal Real Expected Interest Interest Inflation basically is a rate at which an interest is paid off by Rate Rate a borrower (or a debtor) for the use of money that they borrow from a lender (also called as a credi10 4 6 tor). Interest rate can be divided into nominal and 2014 real interest rate. Nominal interest rate is a number 12 4 8 that banks actually put on the board outside their 2034 building, and real interest rate is what actually depends on the supply and demand for loanable Saving always does not make profit for the bankers. funds. Thus, nominal interest equals real interest / © Graphics provided by Yeojin Shim plus inflation rate. Shown on the example above, interestingly, How does a bank earn money if it borrows saving a lot forever does not always make extra and then pays the borrower some incentives? The money for you – so we should be careful even main way is that it puts its big chunk of money into when putting our money in the bank, otherwise we bonds, funds and stocks. However, it also plays will lose our money! games on interest rate, depending on the inflation. © FreeDigitalPhotos.net It estimates the change in price levels in the future and sets the interest rate. To make it easier to understand, let’s say our friend Irene puts her money this year, and she is supposed to get it back in 2034. The bank charges her nominal interest rate of 10% as it thinks that it could give her 4% by making money through the 9

Need to Stop Economics Writer: Stuart Ko Editor: Daniel Jung It has been a long belief that we should choose to behave economically under the rational decisions that lead us to the best profit. Here, we can ask whether we can conclude our every purchase will be done well. Is there a perfect precise economic rationality? Of course, we cannot come to a conclusion. Our economic activities are affected by diverse factors i.e. emotions, instance, and often, masses etc. Herbert A. Simon, an economist who was awarded the Novel Prize, has asked a fundamental question on economics. “Are we always rational? If so, how rationally do we behave?” Simon recognizes that human beings are limited in rationality. Human rationality is not absolute; it only functions the best when people have a purpose. People try to behave rationally in order to achieve their purposes. It would be the limited resources that give people purposes and make them try to behave rationally.

The reason of resource distribution in the market is that of the competition, not of our rationality. Mr. Gibson tries to insist that this perspective is true. He says that rationality is not an assumption, but a virtue. According to Daniel Kahneman, a psychologist who received the Novel Prize in Economics due to his challenge on conventional thoughts, people tend to behave partially and not rationally. As a psychologist, he was one of the men who had insight on humans whose every behavior are emotional and he knew the needs to approach the economy emotionally. He says that today’s economic phenomena cannot be explained by only traditional economic methods.

In the recent occurrences such as the Lehman Brothers’ bankruptcy and the financial crises in Greece and Spain, some economists are at a loss on what to do. If assumptions are varied, the theories would vary and the paradigms would eventually vary as well. We need to be more like Copernicus. Most of the great researchers had many chalMeanwhile, Friedrich August Von Hayek, an lenges on conventional beliefs. More complicated economist born in Austria, insists in his book, “Law, economics should be researched. These would lead Legislation, and Liberty,” that the factors such as us to a new paradigm. competitions make people to behave rationally.

Japanese Consumption Tax Rate to Rise – What about in Korea? Writer: Sung Mo Koo Editor: Jae Eun Lee Beginning from April 2014, the consumption of tax rates in Japan rose from 5% to 8%. This increase is projected to raise the Japanese government’s revenue by 5.1 trillion yen in total. Japan has maintained its tax rate at 5% for the last 17 years. The main reason for the change is thought to be the reinforcement of “Abenomics”.

Finance, 2% rise in Korea’s consumption tax will allow the government revenue to increase by 1.2 trillion won. The government plans to take an action after a careful examination of how Japanese economy changes after its change in its fiscal policy.

Korean consumption tax rate is the 4th lowMeanwhile, South Korea has maintained its est among that of the Organization for Economic consumption tax rate at 10% since 1977, when it Co-operation and Development (OECD) countries. first adopted the consumption rate. Following Japan, Korea has been considering an increase of consumption tax rate as well since last year. According to the Ministry of Strategy and 10

Currently, the average consumption tax rate among the OECD countries is at 13.8%, which is slightly higher than that of Korea. India tops among the list with 38% and United Arab Emirates (UAE) is at the lowest with 2%. An interesting thing to note about the consumption tax in Korea is that far less people compared to other countries are aware of how much the consumption tax rate is. This happens because products in Korea, unlike the ones in foreign countries, do not specify the price before the consumption tax was added. Due to this, an increase in consumption tax may easily go unnoticed compared to Japan, whose consumption rate is projected to hugely shift the economy. © FreeDigitalPhotos.net

One problem frequently discussed with the consumption tax is that everyone pays an equal amount of consumption tax when he or she consumes a product regardless of wealth. The income tax in Korea remains at 3.6%, which is far lower than the average of OECD countries (8.4%).

Teokbboki Restaurant Addal Retains Undying Popularity Despite Recession Writer: Taeyoon Kim Editor: Jihoon An Despite the recession, Addal, the Teokbboki restaurant, is still making big profits. It is just about to open its 1000th store. Addal opened its business in 2000, and it now owns 970 stores throughout Korea. Addal appeals to rising entrepreneurs because it has proved that starting up successful stores is not expensive at all.

ized food, teokbboki is displaying a positive image of Korean culture and values to foreigners.

CEO Lee of Addal said that he is very happy that Teokbboki, a food that is very familiar to every citizen in Korea, is becoming a global food and that Addal will keep on trying to popularize teokbboki in order to introduce spicy taste to places all over the The reason why Addal is so popular world. amongst the customers is that Addal foods are not only very cheap, but they are also delicious and sanitary. Some people believe that since teokbboki is a street food, it must be dirty. However, Addal has standardized its recipes and focused its attention on improving taste and hygiene in its foods. Addal is not yet satisfied with its success in the Korean market. It has already opened a new store in China and is preparing for another store to be opened in Beijing. Addal’s expansion is very meaningful because just a few years ago, nobody had imagined that the street food teokbboki would lead the globalization of Korean food. As a global-

What is Economic Integration? Writer: Yoo Min Ahn Editor: Jung Hyun Lee In our fast-changing society, a geographical border between countries doesn’t matter as much as before. Advances in technology and transportation have led our world to a phase of “globalization”. These days, everything is connected by the Internet, airways, roads, and phone lines. We, humans, are currently living a highly privileged life that is easier, faster, and more comfortable than ever before.

Customs Union

The Customs Union is a further developed form of Free Trade Agreement. It eliminates trade restrictions at internal level, and expands to external areas by settling a common tariff between members. A great example of Customs Union is MERCOSUR, which is a communal market between Brazil, Paraguay, Argentina, and Uruguay. From 1995, with 200 million populations, it has been genDerived from globalization, the trend in our erating 75 million dollars of GDP in South America. economy is taking on a new aspect. “Economic InCommon Market tegration” is a new movement that is shaping our world. It is a promotion of liberalization of ecoThe third level is the Common Market which nomic activities among multiple countries by get- allows free movement of elements of trade such as ting rid of economic obstacles such as tariffs. There labor force and investment on top of establishment are four major levels of Economic Integration, in- of common tariff. A representative model of comcluding Free Trade Agreement, Customs Union, mon market is the European Economic Community Common Market, Economic Union, and Complete (EEC) established in 1958. It authorized complete Economic Union. external currency convertibility, elimination of exchange fluctuation, liberalization of investment, Free Trade Agreement and future creation of single currency. It is the most basic level of Economic InteEconomic Union gration, which is based on rather regional conditions. FTA is an agreement among member counEconomic Union is the advanced type of tries to abolish trade restrictions such as tariffs, im- Common Market. It performs joint economic poliport quotas, and preferences on most goods and cies in the fields of welfare and finance among services. FTA is originated from GATT (1948-1994), member countries. For instance, the European Unwhich was an economic treaty among capitalist ion is the strongest standard of Economic Union. countries subjected to industrial products. Later EU is a developed form of EEC. EU has not only setfrom 1995 to 2000, WTO was established as the tled single currency (Euro, since 1999) but also cremultilateral negotiations at international level and ated a huge political bloc throughout Europe. its scope had been extended. However, from the 2000s, countries have found that WTO system is Complete Economic Union rather time-consuming, so they have shifted to FTA Complete Economic Union is the ultimate which reduced controversies among members. FTA stage of Economic Integration. It aims to annul inis known to be beneficial for increasing competi- dependent economic policies of each country, options and productivity in national markets. It also erates under unified economic form, and installs a vitalizes foreign investments. Currently, Korea has supranational level of organization among memeffectuated 9 FTAs with 46 countries including: bers. Chile, Singapore, EU, USA, EFTA, ASEAN, India, Peru, and Turkey. Three new FTAs are settled with Columbia, Canada, and Australia.

The Growing Power of Chung Cheong Area in Korea Writer: Yujung Choi Editor: Yugyeong Jeong Chung Cheong area is called the 'Giant connect the central part of the continent. Baby', because it has passed the growth of Honam Chung Cheong's bigger growth will be called area in terms of GDP, total population, etc. From as the "Chung Cheong Belt", because the prospect the survey by the Economic department of Korean of Korea depends on this area's growth. government, the environment and industry of this area are operating systematically. Even many major enterprises the LG Chemistry speak with the one 180 voice that this area is expected to be the global hub 160 of Korean industries. 140

Regarding this, many economists speak with one voice that after experiencing the Global Currency Warming, the economic power of Chung Cheong area will grow bigger and bigger. It is of course, the Chung Cheong area that will major in the manufacturing industry.

120 100 80 60 40

Seoul Daejeon ChoongNam ChoongBuk Kwangju Busan

Even if the prior government of MB was 20 criticized because of the 'Sejong City' in Chung 0 Cheong area, the current government of President GRDP Growth Rate Park is supporting the project that will make it the heart of Korea. With this, the growth of Chung Cheong is expected by the residents of the Chung ÂŠ The TeenBiz / Statistics from Korea Choongbok Statistics Choeng area. Also, it is expected that the area will

Spring of Lot-Solid Apartments Writer: Yujung Choi Editor: Yugyeong Jeong The market of a lot-solid apartment is blossoming. Just during the past winter, the the market itself was in low level. But after experiencing a turbulent era, the market has blossomed just like a blossoming flower. Because of people who want to have their own apartments, the supply of apartments is growing more and more. Now, people's expectation of having their own apartments is growing more than ever, and the market is becoming bigger than ever, too.

own apartments, this is a very good news for all people and the society of real estate. From this, we can expect the growth of real estate and even our economy.

The prospect of this market is good because of its everlasting growth prospect. At this phenomenon, real estate agents are smiling. Moreover, the contracts between the agents and the clients ÂŠ Photo provided by Yujung Choi are also booming. Since 1000 to 4000 people want to buy their 13

Korean Duty-Free Limit Should Be Higher Writer: Ji Hwan Yoo Editor: Ji Eun Seo According to the Korean law, it is illegal for a Korean traveler to purchase more than 400 U.S dollars without paying taxes. If the money he or she paid is more than that, the person should pay 20% of the product and the tax rate becomes higher when the product is categorized as a luxury item, such as an extravagant watch or a jewelry.

duty-free limit. Local duty-free shops have reported that Koreans spend 530$ per year on average and that 44% of local travelers are being caught not paying taxes while spending more money than the limit. It is no doubt that more Koreans will break this law.

This limit has not changed since 1996. Compared to other countries’ duty-free limits, Korea is the third to last country that has the lowest limit among OECD countries. For instance, the duty-free limit of USA is 800$, which is comparably higher than the Korean limit. Korea recently has been criticized for this low

Currently, this 500$-limit policy is not welcomed by most Koreans. The Korean GNP has increased 5 times and so does the price which has doubly increased because of the government policy. People are insisting that it is the time to change the policy. Korean government is considering raising tax allowances from abroad to prevent people from violating the policy and to encourage them to buy domestic duty-free products.

What is Happening in Ukraine? Writer: Sejung Kim Editor: Su Hyun Lee From last November to this April, the situation in Ukraine has been very fluid and volatile. According to the Ukrainian 2011 census, the population was approximately 48 million, whose 77% was ethnic Ukrainians and 17% was Russian. To understand the Ukrainian Crisis, It is important to first comprehend the location of Ukraine. Ukraine is located next to Russia to the East, and Moldova, Romania, Hungary, Slovakia, Poland and Belarus to the West and the North. Thus, Ukraine is sharing borders with various countries, which makes the country easier to communicate from one country to another. Throughout its long and complex history, Ukraine has been associated with domination from the various kingdoms of Russia. With this history of being a divided nation, not until 1922 did it get incorporated into the Soviet Union. Ukraine, known as a “bread basket” country, is one of the largest exporters of wheat in the world due to its great fertile soil. This rich land was one of the reasons why the Soviet Union put in hard efforts to capture Ukraine rather than other East European countries. In 2004, the “Orange Revolution” toppled Viktor Yanukovych from power but he returned to

power in 2006 and 2010. However, in 2013, Yanukovych rejected a deal with the European Union and signed a loan agreement with Russia, leading to protests (primarily in Western Ukraine). In February of 2014, clashes between the police and the protesters grew in violence which resulted in scores of deaths and injuries. Therefore, shortly after, Ukraine’s Parliament voted to impeach Yanukovyh who fled to the eastern part of the country, where pro-Russian sentiment ran high. The Crimean peninsula which is located right under Ukraine, was gifted to Ukraine by the Soviet Union in 1954 and no one did not know that the Soviet Union would collapse. When Ukraine separated itself from Russia in 1991, Crimea joined the country, which made tension with Russia. However, many Crimeans felt more loyal to Russia, and many ethnic Russians made homes in Crimea. Because of this, Russia has recently sent thousands of troops into Crimea, and this has created conflicts with Ukraine. On March 6, Crimean politicians voted to rejoin the Russian Republic but the decision was rejected by Ukraine. Due to this, the riot is being held in the capital and tension between Ukraine and Russia is far more unsettled than ever. 14

“Cherry Blossom War” Writer: Hajin Hyun Editor: Hawon Lee As pink clouds of cherry blossoms paint the street and tiny petals blow along with warm breeze, spring has officially arrived after long months of cold winter. Every year, flower festivals in different regions of South Korea attract many tourists who are hoping to appreciate the true beauty of nature. This year, apart from news for upcoming spring, an interesting controversy has accompanied blooming of cherry blossoms: they originated from Korea and not Japan. Ever since the Imperial Japan Era, Koreans have disapproved of cherry blossoms because of the perception that it originated from Japan. Indeed, “sakura”, the Japanese word for cherry blossom, takes up a huge part of Japanese traditional culture and stands as an icon of the country’s scenery. The Japanese government has even been using cherry blossom trees for diplomatic purposes, presenting them as a token of amity.

tional Forest Service has proved that cherry blossoms actually originated from the Jeju Island. Specimens of purebred cherry blossoms tree were discovered in the island, while none turned out to exist in Japan. DNA analysis revealed that the Japanese cherry blossom is a product of breeding of several different species. Because of the pride and value Japan places on its national flower, the country has refused to admit the results of the study. In addition to the already intensifying hostility between the two Northeastern Asian countries, the claim over cherry blossom origin has risen as the new subject of dispute, so called “the Cherry Blossom War”. © Free DigitalPhotos.net

However, it seems like the status of cherry blossoms as symbol of the nation will come under debate. A research conducted by the Korean Na-

The More You Have, the More Disease Will Greet You Writer: Young Jin Lee Editor: Stephanie Yang According to the recent statistics, people ple. However, statistically, rich-people are more who have high socioeconomic status have greater prone to have depression and other diseases. probability of getting depression and diverse diseases than general people do. Before, we have believed that because of the low socioeconomic status, people are peculiarly prone to disease and depression, or by getting these kind of mental disease, they become poor. Even though there were no evidences, such has been the way we have believed Also, there is a report of depression that people who are in low socioeconomic status feel, as researched by the Korea Institute for Health and Social Affairs. The report indicated that the number of depressed people in the low socioeconomic status is more than double the number of rich peo-

According to the researches of the National Health Insurance Corporation, by the 2012 standards (per one hundred thousand people) in case of Seoul,Seocho-gu(1750 people), the number of patients who suffered from depression took first place and Gangnam-gu (1683 people ) followed the next (where so-called rich people are living.) Experts insist that the reason of rich people's depression is relative to the deprivation. As the wealth of these people are more plentiful, rich people are more exposed to depression and disease.

Kwon Jun Soo, Professor of Psychiatry at the Seoul Nat'l Univ. Hospital, said "a man who has great ability and success has his own standards. And this standards are much higher than others. At this point, when the things go wrong, they feel a great sense of relative deprivation. Therefore they are vulnerable to depression and other diseases.”

Purchasing Directly Through International Online Site Writer: Na Hyun Lee Editor: Yoojeong Lee Have you ever thought that imported foreign products in Korea are expensive? This is because the products go through lots of markets and merchandises, but if ‘something’ removes these processes, what would happen?? The prices of products will fall and customers will be able to buy the same products at cheaper prices. That ‘something’ is “purchasing directly through an international online site.” “Purchasing directly through an international online site,” means buying products through foreign online sites just like an open market (a system which makes it easy to buy and sell goods in other countries, because there are few restrictions) and a garment brand. Recently, the scale of online sites increased almost 50% to 70%. People use it so much as it is much cheaper than buying products in national markets. Moreover, the rare designs of products that are not in Korea attract the customers. The products worn by celebrities that eventually become popular are usually imported goods. However, if people purchase directly from a foreign online market, they can get products of rare colors and designs. Furthermore, there are so many unknown brands selling high-quality products. With the online sites, customers will be able to buy them to use them while it’s extremely hard to get them in Korea. However, international online sites also have their disadvantages. First, the delivery of product takes a long time because it comes from a 16

foreign country. If fast enough, the delivery will take 3 to 4 days. If it is slow, it takes almost a month. Second, when a product is damaged and lost during the delivery, it is hard to be compensated. When a customer wants to be compensated, he/she should send the defective product to the online market or the company itself. After they identify the product, they are able to send a new, undamaged product to the customer. However, this entire process is more of a hassle, as it consumes both time and money. What’s more, in many cases, it’s actually hard to get compensations. Still, despite their disadvantages, more and more people are buying products through online sites. In Korea, there is so much price bubble. When a customer buys a product, merchandises unavoidably lower the price of the product. In this way, it will make the price fall and make the price bubble to pop. Also, as the scale of buying products through online site increases, the usage of flight industries will increase by 20%, thus it will have a good effect on flight industries as a whole. As days pass, more and more people around the world will use the method of “purchasing directly through an international online site”. When a customer uses it, he/she will gain more knowledge of how to ‘smart shop’.

[Opinion] What Would Happen to Economic Status If South and North Korea Became One? Writer: Jee Won Lee Editor: Minsung Kim There has been much controversy over whether South Korea and North Korea can unite into one country as they were before, after a long fight of sixty years. Some might see this as a cultural unification that would lead our nation as one socialized group, while most economists see this as a disaster.

Even when South and North are unified, the problems we face afterwards will be even bigger. How can we overcome the gap of 60 trillion dollars of budget and separation of the cultural national band? Most economists speak out that this dangerous trial has a predictable ending: a total breakdown of Korea's economy. And many more scholars ask how the government can come up with a solution for the problem with the North Koreans losing their jobs through unification. Sociologists predict that they may be the potential criminals caused by an unsettled economy.

We all know that North Korea currently has the economic status which South Korea had in the 1960s. The gross domestic product (GDP) of South Korea is twice that of North Korea's. We can know for sure that North Korea's economy will be submitted to the South's economy. In this situation, can No one can be certain how Korea would we help the country that has the economic system turn out in the near future when the two countries of sixty years ago? unite. However, it is sure that this is a national problem that needs to be overlooked cautiously.

Where is South - North Korea's Relation Going? Writer: Hye Kyoung Jang Editor: Hye Won Jang In March, South Korean President Park revealed the 'Dresden Announcement', a speech made in Dresden, Germany that promised North Korea to help them unify. However, the next day, North Korea sent several missiles to South and South responded to them in the same way. Also a few days later, some drones were also found in South Korea and people have guessed that they are

from the North. Eventually, in April, North Korea officially announced that they will refuse President Park's promises. It is because they think the 'Dresden Announcement' is saying that South Korea will molder North's system and unify just like the past Germany. Regarding this dangerous relationship, countries all around the world are anxious about the fact that this may threaten world peace.

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Is It Problem of the Inner or the Outer?: Nationsâ&#x20AC;&#x2122; Disgrace Concerned with NHRC Writer: Youree Kim Editor: Heewon Jung Korea's NHRC (National Human Rights Commission of Korea) underwent dishonor after the notification from the ICC was reported. that ICC has mentioned it will re-rate the current NHRC status (which was a 'A' rating) to a 'B' rating. NHRC, which had been the "wannabe" of other nations due to its clean operation, is now in danger of losing its title.

and knowledge, the organization could not exert its power correctly.

The three main reasons of the ICC's decision to re-rate the NHRC is due to: lack of transparency in appointment, absence of diversity among commission members and its employees, and deficiency in exemption clauses to guarantee liberal activities.

But the problem is getting much more serious with the current Chairperson Hyun Byung-chul. Looking at his previous actions, Hyun did nothing for the unprivileged people and it was found that he had abused public funds. For instance, when six people were killed in Yongsan because of the police crackdown, Hyun kept on being silent with the issue. Additionally, Hyun is in double trouble with the problem of his son's military draft.

It is true that NHRC is not actually exerting its power perfectly after the decrease of the body Activists see that current situation has per- and the incorporation under the Chung wa da since sisted for a few years. Former President has filled the former President, Lee. the position of the committee with his aides and has put it under the Chung Wa Dae, to exercise diWhile public's voices are going after Hyun, rect control. Due to the Chair's lack of experience the Chief, to resign, NHRC is truly running a risk.

Reduction in Labor Hours; Is It Necessary? Writer: Gue Jeong Jeong Editor: Stephanie Yang A new storm is blowing hard in the industrial world. A draft bill to include holiday work into extended work hours and to reduce labor time from 68 hours to 52 hours came out in April 4, 2014. Korean labor hour amounts to 2092 hours a year, taking third place in OECD, as having one of the longest labor hours. Until now, many workers have improved the productivity and gotten much payment by a bonus for extended labors, but some people are criticizing that too much work has made them tired and to live imbalanced lives, thus having a low standard of living. While labor unions are welcoming this new suggestion by appealing that this has to be done sooner or later, many companies are claiming that these two big strikes- a wage raise and a reduction in labor hours as fixed by law, will affect the overall running system, resulting in a total loss. If the new 18

draft is passed, the laborers can get a bonus for working on holidays by as much as 100% of their wage; however, the representative of the Korean Executive Association insists that in the future, companies must afford at least 759,000,000 won if the new bill is passed. As for conglomerates, they claim that it is irrational and unrealistic to control labor hours by law because there are still many workers who work under a flexible system. One CEO said, "The reason Samsung Electronics and Hyundai have succeeded was because the workers have displayed all their abilities into their jobs night and day." He also claimed that diminishing the labor time will soon discourage these kinds of work, thereby lowering productivity and desire to work harder. As it seems to burden the big companies, one minor-enterpriser complained that the law will put smaller companies at an end, which are still suffering from labor problems.

As there are still many interests that have to be dealt with, all including parties agree that it is necessary to have a 'buffer' before this new rule is truly accepted. As for Japan, which now has a labor system of 40 hours a week, has been allowing an extension on the limit of labor hours if capital and labor reach an agreement. Toyota, for example, has made it possible for its workers to work 720 hours a year through a labor-management cooperation, although it is regulated by law to limit labor hours to 360 hours a year.

A law for a good purpose does not always have a very good ending. It is certain that lessening labor hours can make workers feel more relaxed and satisfied in a variety of ways, but we should not forget that most Korean companies are still struggling in a global market, being in an infancy. The companies should first consider improving their international competitiveness amid other international companies. It is still a long way to go for an agreement for all.

Who Will Win the Smartphone War? Competition between Samsung and Apple Writer: Jiyun Choi Editor: Euiyoung Kim With the creation and development of smartphone, Samsung and Apple, the two major smartphone companies, have been competing against each other intensely for the past few years. It is no secret that Samsung has made a significant dent to Apple’s standing as the leading manufacturer of smartphones. According to the data published by Strategy Analytics, Samsung has shipped 86 million smartphones worldwide compared to Apple’s 51 million.

but Samsung has grown much more rapidly.

However, according to a survey of 500 consumers who have bought a mobile phone in the past three months, conducted by Consumer Intelligence Research Partners (CIRP), Apple did a better job of getting Android users to convert to iOS as 20% of its customers are from Android whereas only 7% of Samsung customers are from iOS. On the other hand, 37% of Samsung’s customers are coming from a non-feature phone while Apple has Samsung and Apple went head-to-head un- only 26% of its customers who are using smarttil 2011 as IDC estimated that Samsung has shipped phones for the first time. 94.2 million smartphones against Apple’s 93.1 milRecently, on April 2, Samsung Gulf Electronlion. ics launched its Galaxy S5 in the UAE. Apple is preThe change happened in 2012 when Sam- paring for the release of iPhone 6 in September as sung galloped ahead with 215.8 million smart- well. As both companies are popular and influenphones compared to Apple’s 136.8 million. This tial, the upcoming smartphone war is expected to shows that both companies have grown massively be as intense as ever.

Samba Rice Price Ceiling Writer: Minjee Kim Editor: Seunglee Lee The Sri Lankan government has introduced limits on price of the most popular kind of rice, samba. Consumer Affairs Minister, Bandula Gunawardena said that selling price above the price ceiling is "prohibited under the Consumer Protection Act." This implementation was due to the recent food price rise in Asia, causing many consumers in Sri Lanka to be unable to afford the rice. They

officially set the price limit at 70 rupees per kilo ($0.65). The ceiling price will only be effective when it is set below the market equilibrium because it will have no effect at all on the market above the equilibrium. Before the government’s imposition, the equilibrium price of samba rice per kilo was at Pe. 19

The majority of samba rice producers as well as a few trade organizations expressed their helplessness toward the situation. The president of the Old Moor Street Traders' Association, Palaniandi Sunderam said, “the government has taken a hasty decision without consulting us.” He added, "We can't sell at the price that the government is imposing because we have bought the rice already at a higher price." Rising food price in Asia and price limit yield very low revenue for most rice producers. Therefore, they cannot help but to lower their supplies. Furthermore, the supply is even reduced due to the country’s civil war as there is a restriction in transporting bags of rice from the rice paddies to other parts of the island, shown in the diagram as shift from S to S1. This low supply of samba rice in the market leads to the debate over its distribution. As there is a price limit, producers have to look for other ways After the price limit, the supply has conto raise the price: tracted from Pe to point A. At point A, there is a marginal benefit (MB) at Q1, showing that the price First, a black market may exist. With the consumers are willing to pay for additional rice. shortage and the increasing demand of samba rice, When supply contracts to $0.65, the ceiling price, producers would then sell the grain at a higher the quantity demanded is greater than the quantity price illegally. The legal price is $0.65, but if somesupplied, creating excess demand (shortage) for the one is willing to pay $1, then the seller can make samba rice, equal to quantity Q1-Q2. The lack of extra $0.35. Consumers are willing to pay the extra supply and the excess demand cause scarcity. Be- price, since rice is the irreplaceable staple in the cause production is discouraged and supply is de- diet of the people of Sri Lanka. creased, unable to reach the consumer's demand, Secondly, the price limit creates queues of this market inefficiency leads to a deadweight loss. consumers in a ‘first come-first served’ basis. ProFurthermore, there is decrease in producer revenue. The original producer revenue before the im- ducers might "prefer" certain consumers who are position was Pe*Qe. After, the revenue decreases willing and able to buy more bags of rice, and unto 0.65*Q1. Therefore, this policy gives loss of reve- fairly distribute the scarce good only to those. This nue for the producers of samba rice by ((Pe*Qe)– is against the original intentions of the price limit, which is to make the rice more affordable and (0.65*Q1)). available. This might cause people with the most need for the rice to not have their needs met. Market forSamba Rice / © Graphics provided by Minjee Kim

Thirdly, in the long run, rice producers might respond to the price limit by reducing its quantity. Thus, the size of one bag of rice might become smaller at the same price, meaning the customers need to purchase more bags of rice. Therefore, there is the need for government authorities to monitor the effective implementation of the price limit, which will not always be easy.

In order to mitigate the impacts, the Sri Lankan government can offer subsidies to the rice producers to encourage the production of the samba rice. In the diagram, this will increase the supply by shifting the supply curve to the right and forming new equilibrium at B. The government would, however, incur an opportunity cost, as they might have been able to use the budget for other activities. The government can also increase the supply by producing the rice themselves, although it would be very unlikely and is an unprecedented phenomenon.

Severe Drought Hits California - Wine and Agricultural Industry Directly Hit Writer: Seonyong Kim Editor: Minsung Kim “Water, please.” It is the most common phrase anyone can hear at the restaurants nearby the Silicon Valley in the United States these days. It is hard to find restaurants that serve water before customers demand in California, the largest farm-productproducing state in the United States, as it is suffering from a serious drought for 3 years. On April 7, the Financial Times reported, “As California’s precipitation (since December, 2013 to February, 2014) fell short 20% of their average, all of the local economy as well as agriculture and stockbreeding industry are faltering.”

domestic market and ranks number one in wine and dairy production for domestic consumption. In this area, 80% of the water resources are consumed for farming. Though the largest agricultural area in California, Fresno County’s fallow land is 800~1200 ㎢, exceeding the size of Seoul (605 ㎢). Napa Valley, the biggest wine-producing area, is also suffering from a heavy blow. Besides, ranchmen are trying to sell their livestock. There is less grass and food to eat, so if cow’s milk were not served, mother cows will not be able to bring up their young.

After 54.2% of the US territory suffered from drought, food prices are skyrocketing these California uses rainwater collected in the days. Not only the price of beef but also the prices rainy season from December through February. of dairy products, such as milk and cheese, are goHowever, precipitation this year is just one-fifth of ing up. the average. In February, California gave drought In 2009, California had suffered a loss of warning signals and recommended citizens to reduce water consumption by 20% of the average. $340 million and had lost almost ten thousand ocThe state is suffering from continuous fires due to cupations. the dry weather-800 cases of forest fire were reported, three times more than last year. Moreover, due to this serious drought, California‘s agricultural and stockbreeding industries, of which size is 45 billion dollars a year, were directly hit. California is the region that produces almost half of the fruits, nuts, and vegetables for the

Buyout of Oculus VR Writer: Larry Jeon Editor: Annie Song Facebook is buying another company, this time, for the future of virtual reality. Oculus VR was a company that was started by Kickstarter, a fundraising system where supporters from all over the world basically donate money to support a promising company and its business. The value of the companyâ&#x20AC;&#x2122;s stock has risen rapidly; however, a number of customers seemed to be unpleasant about the fact that Oculus VR will now serve in the world driven by ads and social services. Despite the doubts, Palmer Luckey, the creator of the Oculus Rift headset, seems very optimistic about the Facebookâ&#x20AC;&#x2122;s decision. Why did Mark Zuckerberg, the Chief Executive of Facebook, decide to buy Oculus VR? Mark believed that within another decade, the virtual reality will be ubiquitous and affordable to everyone who uses internet network. As the display technology and processing power necessary to operate the real virtual feelings are already present, Oculus VR will support the essential technology that is a part of Facebook, which lacked in comparison to the different mobile markets created by Google.

While getting financial support from Facebook, Oculus VR will be able to devote to developing technologies revolutionary enough to erase the doubts casted by pessimistic viewers on buyout of Oculus VR. Before too long, with the experiences that go beyond the current internet social interaction, Facebook will be equipped with the strongest weapon of cyberspace. Many of those who are not in agreement with this purchase were developers who thought that they would become the first people to build shocking games and new entertainment experiences. Moreover, as Oculus VR was initially funded by the Kickstarter campaign, some of the investors, who purely believed in the development of Oculus, showed deep disappointment on their SNS webpages. This may sound like a betrayal for the people who have donated to Oculus in Kickstarter, but this could mean a chance for Oculus to take another leap towards the most influential development of virtual reality, together with Facebook.

Personal Information Leakage: A Vogue? - Loan Companies Struck by Information Leakage Writer: Wooseok Kim Editor: Stephanie Yang A specter is haunting South Korea- the specter of personal information leakage. As humorous as it sounds, it is, as a matter of fact, an obvious truth that one cannot possibly deny. Indeed, South Korea was struck with an overflow of news concerning personal information leakage in recent days. Numerous credit card companies and foreign banks in South Korea had to go through a tough ordeal due to their incidents of personal information leakage. This led to the general public's resentment over such institutions' overall carelessness and aroused skepticism over their ability to manage personal information safely. In the midst of these circumstances, loan companies have now become the new target of personal information leakage, 22

and naturally, the target of the public's criticism. The reported targets are City Capital and IBK Capital, with 34000 people's personal information having been leaked in total. According to the Financial Supervisory Service's final analysis, 55000 people from City Capital and 22000 people from IBK Capital had their personal information leaked, but ruling out previous leakages in the past and uncertain ones, the numbers come down to 34000, still a big amount. However, the real, more severe problem lies in the fact that IBK Capital's leakage seems to have come from the inside.

According to investigation results, the state of affairs currently points to an insider as a conspirator of the information leakage, even though the suspect is denying all his associations to the leakage. The Financial Supervisory Service announced that strong restrictions will be put upon these loan companies as a strong warning.

the loss of public confidence at this points seems even more critical. However, a spilled water is a spilled water. What's already happened can't 'undo' itself, and what these institutions need now is to work on ways to regain their trust back from the public. Accepting their previous failures and a sustained effort for a more thorough supervision among the institutions are the keys to the reclamation of public trust. Living in the 21st century, it should be noted that information leakage is more dangerous than any time in the past, and it is now high time that these institutions take the initiative to do their work in a more careful, deliberate manner.

Credit card companies, banks, and now loan companies. The recent chain of information leakages has greatly decreased the level of confidence the public puts on these institutions. The fact that there was a series of past leakages fueled the fire of public resentment even more. Since credibility is a vital source in the existence of such institutions,

Tornado Alert in the States Writer: Ji Eun Jung Editor: JiOh Yoo and South Carolina were expected to be threatened by severe weather. According to numerous meteorologists, something strange is happening with tornadoes recently in the United States. The tornadoes are unusually quiet or deadly active. Until last weekend’s outbreak, there had been 20 tornadoes and none of them was that deadly. Meanwhile, the search for survivors in the regions which were smashed by huge tornadoes continues in United States. U.S President Obama dispatched FEMA (Federal Emergency Management Agency) to Arkansas while he was on a visit to Philippines. He called their governor for local government’s support. After his official trip abroad, he declared the regions which were smashed by tornadoes as emergency disaster area. President Obama promised aid to those affected by the © Photos provided by Ji Eun Jung storms, announcing federal emerThe National Weather Service's forecasted gency officials will be on the ground to help. He that there is a high possibility of a deadly tornado said "Your country will be there to help you recover outbreak across the central USA. After three days and rebuild, as long as it takes," of powerful storms, severe weather condition On the other side, 250 people lost their lives threaded 73 million Americans in the eastern states in ferry disaster from South Korea. It’s unavailable and killed 35 people. to compare South Korea’s human-made disaster to Tornadoes caused a great amount of death America’s natural disaster. However, U.S nation and destruction throughout the southern US states shown confidence on government’s emergency during May 4th and May 5th. The storms had flat- plan which are completely different compared to tened buildings, overturned cars, and left thou- South Korea. Many of the countries including U.S sands of residents without electricity. More than pointed that Korea should upgrade their emertwo million people in parts of Alabama and Missis- gency systems . sippi were reported to be at risk of tornadoes and high winds. As the storm moves towards eastern regions, parts of Florida, Georgia, North Carolina

Where is the State of National Support System for Seniors? Writer: Youngju Kwon Editor: JiOh Yoo The number of the senior citizens who reside in Korea has been increasing since the last few years. As a result, one of our government's hot issues nowadays is lacking in support for senior citizens. Furthermore, numerous candidates for the presidency have shown “welfare for senior citizens” for the presidential election pledge. However, even though many people have suggested that our country needs new effective policies in welfare for senior citizens, none of our government’s policies in welfare systems had changed.

about welfare for the seniors. The obligation of senior support was written in the Korean Constitution since 2013. However, the Basic Senior Pensions Act has innumerable flaws that most of the senior citizens were not given enough support. The Basic Senior Pensions Act only gives a maximum of 96,800 won every month, which is insufficient for basic living. With that amount of money, seniors may have enough to survive; however they will not be able to join the Korean society freely. They are one of the fluent work sources for economic development. That is the main thing on which the KoKorea is famous for the high rate of suicide rean government needs to focus. Seniors are the by senior citizens. By this, we can know that the Korean societies’ important factor. Thus, we must Korean government needs a change in its policies help them too.

One Cup of Coffee, More than 10,000 Won? Writer: Seryeong Lee Editor: JiOh Yoo If you look around, you will find countless coffee shops surrounding you. What this mean is that coffee has become an essential beverage to modern people. Coffee, which is an interesting topic to modern people, let’s learn about it more. Luxembour 30 g, 28.4 25

not quantity. Premium coffee shops which appeared recently, sell coffees which cost more than 10,000 won just for a cup. Advanced coffee is a survival strategy of the coffee shop industries. In Seoul, more than 60% of the coffee shops are gathering sales growth rate that had reached 23.5% in 2008 is stepping 2% level in 2010 or later.

While the coffee shops are increasing exponentially, coffee vending machines are also disapFinland,Denmark, 12.1 15 Switzerland, pearing rapidly. There were approximately 400,000 9.5 Norway, 9.28 10 vending machines across the country about 10 Korea, 2.1 5 years ago. On the other hand, only 50,000 ma0 chines remain now. Even though the number of coffee vending machine has decreased, the price of Amount of Coffee Consumption per Person / © The coffee did not change. However, in spite of the TeenBiz, Statistisc by Dongseo good price, the reaction to the coffee vending maThe amount of coffee that one adult Korean chines is still cold. drinks is about 368 cups a year. In other words, cof11.6 billion pieces of paper cups are used fee has become an essential drink to modern peoevery year in Korea. Rather than to take mugs to ple. From this, it seems that people in Korea may the coffee shop, most of the people choose to just not drink a small amount of coffee, but if compared use paper cups which are given for free from the to other countries such as Luxembourg, it is still a stores. very small amount. 20

Coffee Consumption/Pers on

Coffee lovers emphasize coffee's quality and 26

According to the Ministry of Environment, if Another side protests about the cost. you drink coffee with mugs instead of paper cups "Just for one cup of coffee, you have to once a day, it is possible to save 56,000 won per more than 10,000? That is too expensive!" year. Getting together 12 people, the effect of planting one tree can be seen. "Because of costly distributions, coffees are becoming more expensive!" Even though most of the recent people are big coffee lovers, people need to limit drinking coffee for their health and money. People should try to follow the maximum daily recommended amount of caffeine. Furthermore, there are people who have to drink coffee even though they need to starve their meals. However, this is not beneficial to their health. There are two aspects of high-priced coffees. One side of people understands the price of costly coffees. "Well, there are reasons why coffees are too expensive. So, we have to bear with the high price."

"Not only is the price of coffees increasing but also every product is becoming more expensive!"

South Korea’s Worst Disaster in Decades Writer: Jiyun Choi Editor: Nayoung Oh Parents of high school students sacrificed in the South Korean ferry disaster marched to the office of President Park Guen-hye, holding photos of their children in Seoul on 10 May. They asked for a meeting with Park, claiming that her government’s tardy and bumbling responses increased the number of deaths in the disaster drastically.

“We are not criminals!” Kim Byong-kwon, whose daughter died in the sinking of the ferry Sewol on 16 April shouted through a loudspeaker. “We have come here not as protesters but to make an appeal to the president”

As of 10 May, 273 people were found dead in the disaster where vast majority of them were They also demanded that the government student. Divers are still searching for the people dismiss the top news editor at the Korean Broad- still missing. casting System (KBS), who had made an insulting The entertainment and broadcasting indusremark to the victims, since the government has an try has joined in on paying their respects to the vicindirect influence in appointing its top managetims of the ferry disaster. Also, major hotels in cenment. Media quoted that the editor said the numtral Seoul said that at least seven business conferber of the dead in the ferry was “not many, comences and many room reservations were cancelled. pared to the number of people dying in traffic accidents each year”. However, some are worried about the impact these incidents are having on the domestic Hundreds of parents and supporters staged economy. “Many companies are putting their busia sit-in near the Blue House for nearly 12 hours unnesses on hold. It is not a good sign. The slowdown til Kil Hwan-young, the head of the KBS came and in business operations may result in a temporary apologized for the editor’s inappropriate remark. economic slowdown,” a market analyst said. 27

On the other hand, the sign of brewing political trouble for Park is shown by the parents’ sitin and the government’s intense media coverage. Her approval ratings have dropped sharply with some South Koreans claiming her resignation. Investigations have revealed that more passenger cabins built on the third, fourth and fifth decks had altered the balance of the ship. According to the prosecutors, there was a warning from the regular captain of the ferry Sewol to the ship operator, Cheonhaejin Marine Company for the serious stability problems after the ship was refurbished. However, the warning was ignored and the ship passed the safety inspections by the Korean Register of Shipping in 2012 and 2013.

the Korean Register, a trade group of shipping companies and owners that certify cargo safety, saying that there are malpractices and corruption in the entire shipping industry. According to reports, all heads of the Shipping Association and eight of the register’s ten Presidents had been government ministries before. Park ordered the officials to wipe out corruption only last year. Investigations into the ferry disaster have proven that corruption may be entrenched in more than one sector.

Increasingly, South Koreans are questioning the effectiveness of Park’s efforts with dealing serious disasters and are raising suspicions on whether the government is playing its role to protect its own Prosecutors recently raided the offices of people.

Severe Decrease In Price of Crops Writer: Taeyoon Kim Editor: So Jin Park Nowadays, price of various crops is plummeting. People consume fewer crops while there is an over-supply of crops. In many farms, there are numerous vegetables left behind. Since last winter was exceptionally warm, crops grew well. Crop yield increased and price of the crops decreased.

This problem has been exacerbated because people knew there would be an over-supply of crops but did not prepare any methods to control the food price. Prices of crops dropped at least 25% compared to that of last year. In addition, because of Sewol perry crisis, people tend to spend less outside these days.

Even though there are lots of crop yields, unless the customers demand those crops, they are To overcome this problem, government is useless. Unfortunately, since consumers are spend- trying to provide subsidy for those farmers who are ing less, most of the crops are being dumped. facing financial problem.

Korea's Highest Credit Card Use Per Capita Writer: Hwisu Kim Editor: Daniel Jung It has been thirty years since Korea started to take the system of 'credit card' and now, 2014, every person, no matter whether male or female, young or old, is indulging in using the credit card to fulfill own satisfaction. This is too much of a comfort to stop, and too much of a benefit, which card companies give, to throw away.

lowed by Canada (89.8 times), and the United States (83.5 times). Money spent on credit cards per capita in Korea also rated the third pending $8,625 following Australia ($11,000) and Canada ($10,000). © FreeDigitalPhotos.net

The credit card usage per capita during ten years (2003~2012) in Korea was ranked the highest among the eighteen countries of BIS (Bank for International Settlement), which means that a person in Korea had used the credit card 147 times a year (2012), as many times as no other countries, fol28

However, despite this great increasing tendency of credit card usage in Korea, the companies did not seem so happy. In January, a tragedy befell the public trust, which resulted in 100 million people’s private information being leaked, including sensitive factors like the ID card numbers and card passwords. The companies thus are now trying their hardest countermeasures not to miss the profits as much as they can but to recover their reputation by reinforcing the security programs and suggesting a change in passwords. Also, companies like the KB, NH, Lotte are advertising for positive company image by promoting social contribution activities.

The credit card system easily makes a naive person achieve the status of 'wasting 'nice spending'; We hardly see how much money should be spent on how to, what for, and where, distinct from cash which is totally visible for control. The more we use the credit cards, the more they lead us a phase where a sense of 'danger' starts to diminish. This is where credit cards, in contrast to their names, eat up our credits until there is none left. It does not mean that people must not take the whole advantages of the technology, but it is recommended that people use check-card or cash, which once again, are naturally visible, controllable, and trustworthy.

Decrease in Quantitative Easing in the United States Writer: Sung Mo Koo Editor: Jae Eun Lee Quantitative easing is an expansionary monetary policy that increases money supply in the field of economy through central bank’s purchase of various assets, especially when a decrease in interest rate is not effective anymore to increase aggregate demand. It has been a popular economic policy adopted by many different nations.

amount of world exports. Some claim that this change in policy will lead to a deficit in the net export of Korea In return, the currency value of Euro, mainly used by developed nations, is expected to rise. Mario Draghi, the President of the European Central Bank, declared to adopt quantitative easing in order to avoid excessive increase in the currency value of Euro. This policy is expected to aid Korean exports by relatively increasing currency value of the US Dollar and decreasing currency value of the Korean Won.

Federal Reserve System of the United States announced that the nation’s quantitative easing will end by upcoming October. It believes the rate of GDP of the United States will return to the stable 3%. Gradual tapering, or a decrease in the purchase of assets, has already begun last June. Such change in policy is expected to damage the economies of developing nations which had been relying on capitals of the United States. Tapering leads to a decrease in the value of currencies of developing nations. Last year, Argentinean, Indonesian and Turkish currency values dropped by 34%, 20% and 19% respectively due to tapering. While these countries have raised their interest rates to alleviate impacts, a decrease in investment is still unavoidable. Whether Korea will be affected by tapering is controversial. Although Korea may not be directly affected due to its high value of foreign exchange holdings, exports to developing countries will sharply fall. Last year, major developing nations (China, Russia, Vietnam, Indonesia, Turkey, Uzbekistan, Brazil, India, etc.) accounted for 41% of the 29

Bitcoin Craze Writer: Taeju Kim Editor: JiOh Yoo The world is in a bitcoin craze. Bitcoin is a peer-to-peer payment system introduced in 2009 by a developer named Satoshi Nakamoto. Bitcoin is not a real currency that is not controlled by a single entity, like a central bank. Bitcoins can be transferred directly from one person to another. They are also known as “digital cash.”

better than one that does. One of the biggest problems that it has is that it can be reused over and over again, as it can be duplicated. However, this problem can be resolved by entrusting transaction books to a neutral third party which each side can trust, such as a banking institution. Then, would Bitcoins be able to take the place of the "new currency" as its followers wish? We cannot know for sure, but it does not seem easy, since there is the problem of jump in prices. In order for Bitcoins to become an actual currency, their values need to stop rising, as people will only try to keep the currency rather than use it when the value is expected to continue to rise.

At the beginning, Bitcoin did not draw much interest. However, in 2011, Bitcoin met its tipping point. In February 2011, its value exceeded 2 dollars, and in June, its value exceeded again to more than that of 10 dollars. In 2013 November, its value was over 1000 dollars. The great jump in prices is what we call a 'finance bubble'. Bitcoin is a nominal currency without a physical entity. Yet, it has been able to record a higher profit than stocks. Furthermore, Bitcoin possesses a very sensitive reaction to media, which is a very common feature of financial speculation. Thus, many experts are saying that the 'bitcoin bubble' is even comparable to the 'tulip bubble', the greatest finance bubble in history.

Even though its usage might not last for a long time, it cannot be denied that Bitcoin is definitely a unique phenomenon.

It seems clear that the bitcoin craze relies greatly on the speculative desires of people. However, we cannot just see this occurrence as a mere financial bubble, as this bitcoin craze is definitely a currency differentiated from others. It has shown that although this is a currency without actual shape, it can conduct business transactions even

Reasons Behind Joseon Dynasty’s Disdained Commerce Writer: Stuart Ko Editor: Jung Hyun Lee There was a word, 士農工商 (Scholars, Farmers, Craftsmen, and merchants). It reflects the Joseon Dynasty’s hierarchy. During the Joseon Dynasty, scholars were treated the best, farmers and craftsmen the next, and then the merchants, who were treated as the lowest class. People living in the modern world would obviously take this as strange, considering the fact that many of the children today dream of becoming a businessman. This concept of hierarchy comes from the Chinese Warring States Period. Chinese classified their people into four standards: scholars, farmers, craftsmen 30

and merchants. This classification is called 四民, which means “four types of people.” However, during the Chinese Warring States Period, 四民 did not continue to remain hierarchical; it only remained as a standard to divide people. It is simple to understand this concept, considering that we also have such standards that divide people into primary, secondary, and tertiary industries.

During the Joseon dynasty, however, this classification continued to remain as standards of hierarchy and became a cause of so many social backgrounds. First of all, unlike wheat, rice is balanced in nutrients, so Koreans were able to be selfsufficient. People did not feel big necessities in trading and that was the reason why commerce did not develop during the Joseon Dynasty. Indeed, even the periods when commerce began to rise, peddlers stopped short of visiting the nobles and selling the items. Second, as Joseon Dynasty’s currency reforms failed, the concept of economy did not arise. In 1401, the first king published a paper money called, “Jeohwa.” However, Joseon Dynasty was a newly established country. Unlike China, people did not trust the money assured by the government. China and Japan and many other civilizations also failed to reform their currency systems. However, during the 16th century, many countries started settling their silver standard currency systems successfully. However, Joseon Dynasty once again failed at reforming the currency system due to the Japanese invasion at that time. After the war, Joseon Dynasty made many attempts to reform their currency, but with all those moments Joseon Dynasty could not avoid wars with Manchu and China. With so many crises happening to the Joseon Dynasty, the first currency that settled was ‘Sang Pyeong Tong Bo,’ which appeared in the middle of the 19th century. With the increase of trade between Japan and China, Japanese silver got exhausted, so Japanese determined to adopt a cop-

per-based currency instead. Fortunately, ‘Sang Pyeong Tong Bo’ was made with copper and with the inflow of great amount of copper from Japan, Joseon Dynasty could succeed in coining a stable currency. However, this new Joseon Dynasty’s currency reformation did not end successfully here. It was the time when China fell from the Opium War, and regent Heungseon, Joseon Dynasty’s ruler decided to build up armies and his palace to show off his authority. Joseon Dynasty was in lack of currency, so Regent Heungseon published the ‘Dang Baik Jeon,’ the money that equaled one hundred ‘Sang Pyeong Tong Bo.’ Of course, with the overflow of currency, there were severe inflations, so the currency system eventually ended up being crushed. Joseon Dynasty had no chance to establish its economy with the absence of currency. Furthermore, with the absence of currency and economy, merchants’ roles did not take enormous parts in Joseon Dynasty’s society. To think about such historical backgrounds, it was not strange that commerce did not settle in Joseon Dynasty. With the small importance the commerce had, it was obvious that commerce was disdained in Joseon Dynasty. Joseon Dynasty might have realized the importance of commerce in the late 16th century, but the surroundings did not allow commerce to prove its importance. To think about Joseon Dynasty’s inside stories, it is so sad that Joseon Dynasty’s currency reformation might have needed more time.

“Sewol Ferry Shock” Must be Recovered Writer: Yoo Min Ahn Editor: Yugyeong Jeong On April 16th, 2014, the Sewol ferry sank in the Sea of Jindo, and the whole nation is stagnant. As Korea went through a mournful lamentation for innocent deaths, our national economy has also entered the stage of depression. Korean consumer confidence fell because of the tragedy of the Sewol Ferry, which worsened domestic business conditions in Korea. Various economic indicators including: culture, leisure, and tourism industry have proven “Sewol Ferry Shock” as a definite fact.

was 25.0%, however, right after the accident in 16th~20th, it decreased to 6.9%. Even worse, on the fourth week of April, it dropped to more than 1.8%.

In addition, major department stores, convenience stores, home shopping malls, and other distribution enterprises are also experiencing the “Sewol Ferry Shock” as well. As for department stores, sales in the fourth week declined to 0.2%, although it increased to 4.5% over the same period Primarily, credit card usage, which shows in the previous year. At the same time, discount the general flow of consumption trend, drastically store’s sale dropped to -4.7% from an increase of dropped. Just before the accident, April 0.2%. 14th~15th’s rate of increase in approved amount 31

Of course, business aggravation in tourism industries is inevitable as well. After the disaster, the Ministry of Education announced the banning of school trips, which brought massive cancellation of school trips. In total, 5476 reservations were cancelled and a net loss of whole industry is estimated to be at about 26.7 billion won. Moreover, utilization of cultural facilities has also declined. The number of weekend moviegoers has decreased 28.8% comparing to same period in the previous year. Along with the low utilization of cinemas, amusement park visitors reduced 68.3%, sharply comparing to last year. The situation is even worse in Ansan in Gyeongi-do and Jindo in Jeollanam-do which are directly related to the disaster. As for Ansan, where Danwon High School is located, according to cancellation of recreational events, company gettogethers, restaurants, karaokes, taxies, and other related business sales have been dropped to more

than 50%. As for Jindo, oil leak of Sewol ferry polluted 839 hectares of fisheries and aquafarms. B&B, fishing tourists in Jindo have reduced drastically as well. As for the countermeasure to relax the tension in national economy and to avoid long term weak domestic demand, currently, the Korean government is focusing on the revival of stagnant economy shocked by the Sewol ferry accident. On May 9th, President Park hosted a private and public joint emergency council of public welfare. According to this meeting, the Korean government has agreed to increase first half year’s execution of financial affair to 57% from 55%, which helps to raise 0.2% in national economic growth of second quarter. Furthermore, the Bank of Korea is early executing 2.9 trillion won to support financial support plan.

Won-Dollar Exchange Rate Drops to Ground Writer: Yeojin Shim Editor: Paul Schaaf Recently, the Korean ‘won’ has reached the extion. change rate of average 1025.5 won (per dollar). Corresponding to this circumstance, the trade prices have reached the lowest peak in the recent six and a half years according to the statistics reported on May 14th, 2014. In addition, the export and import price index of last month by the Bank of Korea shows that in April, the index has fallen by 2.5% compared to March. Not only can this be explained by a stable global economic sustainability and dollar liquidity being rich in its domestic market, but it could also have been caused by the Korean government's policy changes, or the possibility of an exchange rate war between China and the United States. This may have caused harder access to the market, which resulted in the fall in won-dollar exchange rates. Once the exchange rates have fallen down, Won-Dollar Exchange Rate / © Korean Economy firms and households are forced to decrease their total demands, which leads to a further contraction Right now, especially in the car industry, of the economy. Japanese companies have risen up and become quite competitive due to the weakened Yen curAs currencies go up and down countries, see rency. To face them, a better economic policy will their opportunity to join the market and competibe needed. 32

As Korea is one of the most tradedependent countries in the world, it is very sensitive to global situations and other information such as exchange rates, which can have a tremendous impact on the economy of the “land of the morning calm.”

To overcome the current situation, the Korean government has bought a bunch of dollar currency. It stated that it will keep the won currency exchange rate over 1020, but it seems that the rate will go far lower as experts are estimating that the won-dollar exchange rate will gradually fall until it reaches about 1000.

EU Rulings about “The Right to be Forgotten” and their Impacts Writer: Hyo Jung Kwon Editor: Ji Eun Seo On May 13th, the European Court of Justice has ruled against Google. This ruling will provide people with a right to protect their private information online by forcing search engines to delete unwanted references. The Europe’s highest court stated that the privacy rights of European citizens are more important than those of companies’ businesses.

The ruling insists that search engines must listen to demands to remove some links. Those links are mostly outdated and the court hasn’t given specific ways when they make judgments. Google has maintained its stance that it is the people who should take care of their unwanted information from websites. However, as it is uneasy to persuade the websites to delete the information, the ruling insists that it is what search engines should do. The major problem is that companies of search engines use algorithms and automatic crawler programs to gather information on search requests. The fact that search engines are those that can post and delete information empowered them to become the arbiters of those information.

This ruling has no direct effect on the way Google and other search engines display their results in the USA or other nations outside Europe. Moreover, as most of Google’s earnings are from its online advertisements which are not affected, the ruling will not have much harm on its profits.

Other than whether this ruling will trigger What we can be sure for now is that this any negative influence on Google, this ruling itself ruling will make quite a big difference in the Interis quite controversial among many people. Some net world, and that there should be consideration support it, as it protects citizen’s privacy, while in further enforcements. there are concerns that this may turn into some kinds of online censorship.

Title: Abenomics and Japanese Firms Deep in Slump Writer: Larry Jeon Editor: Dylan Park Abenomics has always been the topic of controversies since Abe Shinjo, the current Prime Minister of Japan, has inaugurated to the center of the power. His policies reflected his will to ‘perk-up’ the long-lasting recession of Japan’s economy and to escape from the deflation which Endaka, which indicates the value of the Japanese yen being high compared to other currencies, created. As the neighboring country with similar exporting goods, Korea corporations that targeted business partners outside Korea were alerted that the low value of yen could bring a negative influence, as lower yen 33

values enforce the trading power of Japanese firms. However, it seems that Abenomics will not meet its expectations. According to the investigation carried out by the Bank of Korea, the Japanese products lack elements to foresee bright prospect of future as the international preference of ‘Made in Japan’ has declined with Samsung’s outstanding performance in the field of mobile electronic devices, and Hyundai’s development in automotive technologies.

Sony has been losing its place in electronic market to brands like Apple and Samsung. With the accounting presentation from 2013 ~ 2014, Sony could only hover around its stagnation that has lasted in the recent 3 years of mostly dead loss. Its investors, worried about their profits, showed disappointment in that Sony, which should be desperate for the ways to success, is only busy with cleaning up their failures. Hirai Kazuo, the current CEO of Sony, presented that the business plans will proceed to center focuses on its three strong fields; game, imaging technology, and mobile devices. However, Abenomics and Sony could break away from the dreadful situation.

who managed design sector of Audi and Volkswagen. Although a big part of the global automotive market recognizes Toyota and Honda to be superior to the Korean brands, Hyundai, Kia, and even GM Korea have displayed enough possibilities for international buyers to perceive potentials of their products. Abenomics has certainly improved the trading power of Japanese firms as shown in the increased profit of their business. The problem is that the amount by which the value of yen was diminished did not reflect how many Japanese products have been exported to other countries. When the recovery rate of world economy strengthens with even more dwindling of yen value, the Japanese company will need to under-adjust prices of their products, which will invalidates the effect of Abenomics. Under such condition, Japanese corporations will need prior preparation to immediately response to the changing economy.

In the automotive industry, the Korean tide has been rising, which filled showrooms with quality cars backed by moderate prices and compatible technologies. Hyundai is plotting a leap towards market with its luxurious Genesis series, while Kia has set up a global standard for exclusive styling by recruiting Peter Schreyer, a renowned designer

Unseasonable Heat Divides Joy and Sorrow in the Distribution Industry Writer: Jihwan Yoo Editor: Su Hyun Lee As the heat came earlier compared to ordinary years, the distribution world tasted a bittersweet time. There has been a noticeable increase in the sales of soda and Bibimmyeon (Korean spicy noodles).

tal revenue over 20% reached a boiling point. Furthermore, since April 1st 2014, the sales volume of iced beverages increased 63.2% in relation to April 1st 2013.

According to the National Weather Service, On the contrary, spring wear markets has the average temperature of Seoul has been 14℃, been showing a falling trend. Hypermarkets are dis- but it will be 28℃ this year. playing summer fruits like watermelons, ingrediThere are many companies that made a ents for ice water and cool mat, and have kicked off large profit but there are some companies that did their summer sales. not. Drinks like fruit drink, soy milk and tea tended In addition, top-selling summer products to decrease in sales. Since the weather has become have changed a lot depending on the hot weather, hotter, sodas and natural water are demanded even though they are all the same summer items. more. Therefore, the That is the reason why distribution industries have sales analysis team paid sharp attention to the temperature change. leader of CU said: "This year is expected The sales of summer products surged rapto be hotter than idly at big marts and convenience stores. From last other years, so we month to this month, the sales of mineral water plan to put emphasis increased 14.6% compared to last year. Also, the on drinks and pop- © FreeDigitalPhotos.net sodas sold 7.8% higher at E-mart. Convenience sicles.” stores whose beverage sales contributed to the to34

Farewell Park Ji-Sung Writer: Ha Yeon Kim Editor: Hawon Lee The legendary soccer player, Park Ji Sung, announced his retirement on May 13, Wednesday at JS Football Center in Suwon. Park said, “Today is the day of calling an end to my career. There have been many gossips about my retirement during this season. I have been considering it since February, and I concluded I cannot play anymore with the severity of my knee injury. I don’t regret about the decision.”

During his career, hardships and sufferings he endured were paid back with his great achievements. He participated in three consecutive World Cups, the 2002, 2006, and 2010 World Cup, and scored 3 goals in total. In the 2010 Germany World Cup, he played as a captain and carried the team to the top sixteenth league. Furthermore, during the hundred games in the A match, he scored 13 goals, for which he was honoured with a membership of Century Club. Park also has helped many of his junMany soccer fans were grieved to hear the ior athletes to play in the European Champions news. However, Park finally took a load off his League. mind. “I sincerely thank God for granting me a life as a soccer player. I savored the time and I earned Unfortunately, during this season, his knee more than I expected. That is why it leaves me no injury was aggravated, forcing him to face the regret,” said Park with a smile. tough decision of retiring. During the press interview, Park also announced his marriage to Min-ji To all soccer fans, Park has been special. He Kim, a former television broadcaster. His future was the most famous soccer icon, a pride of Korea tracks will continue to draw attention of many socand Asia. He was among the first Korean players to cer fans. be appreciated by not only his own nation but also European countries.

Reunification Investment Writer: Young Jin Lee Editor: Stephanie Yang During New Year's press conference, President Park said that it is time to prepare for a reunified Korea and she expressed about her feelings for REUNIFICATION.

months of preparation, the 'Sin-Young marathon unified Korea' achieved market dominance in investment in the unified Korean Peninsula. Even though there were skeptical responses, Only after two months of its release, the fund hit the jackpot Also, the President pledged to normalize in the investment market. Rate of return was abnormal practices in society and lay the founda4.58%. and Korea Composite Stock Price Index extion for a strong economy by starting with reforms ceeded 1.27%. in the public sector, and continue her push for a creative economy. The area of finance and investThe Vice President expects that the government took a note of two key words: 'ECONOMY' ment-initiated civil engineering and construction and ‘REUNIFICATION'. and other social overhead capital (SOC) investments will be increased. After an improvement in Sin-Young Asset Management firstly took its the consumption of North step toward reunification investment. Sin-Young Korean residents and healthAsset Management made the investment fund 'Sincare system , the economic Young marathon unified Korea' in March. The Vice scale will be getting benefits President of Sin-Young Asset Management said, from the financial industry. "We think that the President's statement about the reunification is not extempore. It was a hint that means those two things are the most important facts of the new government policy."After 2 © FreeDigitalPhotos.net 35

New Business Company "Newdongne" Aims To Share Houses And Lands Among Tenants Writer: Ji Su Lee Editor: Yoojeong Lee With his illustration in the TEDxSeoul To overcome the abnormal situation in the (http://www.youtube.com/watch?v=wcuRTEhhBa0 field of housing, Jaejun Lee suggests the best ), Jaejun Lee justified his suggestion perfectly. method of solving the lack of a reasonable house and increasing the quantity of a rental house. There were two people named Choelsu and Younghui. Both were born in the same region, In this process, private sectors like landowngraduated from the same high school and college, ers, architects, and banks are more efficient than and got the same job in a company. Choelsu spent public sectors such as SH corporation. While carryhis money just like how his friends did, while ing out this project, some small land and money Younghui saved most of her money and did not en- will be needed to complete it. However, in order to joy her precious life. construct a big apartment complex, tremendous space area will be needed as it will take a lot of Now here comes the question. While time time to supply a living house. In Lee’s project, there continued to pass by, which person had a better is no need to construct a big apartment complex. time and enjoyed his or her life? The answer is Choelsu. Then, what makes Another good point to keep in mind and the life of Younghui not good? The difference is the carry out is the following point in the next senproperty list between them. In this case, it is a tence. house. Choelsu had a house, which was what made In practicing this fair housing project, if the him different. That fact shows the enormous effect rental price were 500,000 won, citizens would have of property list in Korea. to pay for it. For 10 years, the sum would be 60million won per 1 house. For 20 years, the sum would But this situation is so absurd in that the be 120 million won per 1 house. As usual, Fair total price of house lending is more than what any- housing consisting of 6 family amounts to 720 milone can think of. lion won. As opposed to a traditional rental pay, The supply rate of houses in Seoul is 98% this method is not wasteful, but saves a lot of while in Korea as a whole is 101.9%. money. If citizens pay for it for 20 years, then the The following status quo makes this phe- total sum will be saved into account and you will nomenon absolutely outrageous. The number of get the right to live in the supplied house by this empty houses which no one lives in is no less than Fair housing program for another 20 years. 800,000 houses, of which 5/8 belongs to the provIn fact, after 20 years, a house will be availince of Seoul and the metropolitan area. able free of charge for another 20 years.

Ferry Sewol Sunk Writer: Sejung Kim Editor: Hye Won Jang On April 16th, the ferry Sewol sank while going to the Jeju Island, Korea. Because of this accident, 284 people were sacrificed and 20 people are still missing. Most of the passengers aboard the ferry were students. President Park-Geun Hye expressed her deep regret over the tragedy of Sewol, claiming that the incident occurred due to the ‘evils 36

long accumulated in many corners of the country.’ Koreans are now protesting against the Korean government with vengeance because of its weak and careless measures which eventually lead to a national tragedy.

Continuous social corruption has eventually led people to acknowledge the fragile Korean safety system, such as disregarding and overlooking safety rules for the sake of profits and having collusive ties between regulators and businesses. The Sewol tragedy was not the first victim of the fragile safety system. A ferry had sunk in 1993, in the area of the Western sea, and the incident took 292 lives. Also, the collapse of the Seongsu Bridge in 1994 lead to 32 deaths, and the Sampoong Department Store had collapsed in 1995, claiming 502 lives.

the poor civil service reformation unfit for the 13th economically developed country - Korea. It is time for Korea to overhaul its government system to bring it into line with its economic success. It is essential to make a change by redressing the closed personal management scheme to redesign the perception and the citizens' attitude of their government. Also, making a decision of senior appointment not by their ability, but by their working term should also be reformed to fill the government into rising power, to boost up creativity and blow in a sense of public service into the bureaucracy. More After going through all of this, Koreans are opportunities should be offered for the private secoutraged more than ever. They are disappointed at tor experts to become civil servants.

"IT'S NOT THEIR PROBLEM. IT'S EVERYONE'S PROBLEM" Writer: JiHo Kim Editor: Heewon Jung The current situation of women rights in South Korea is generally fine compared to other nations in Middle-East Asia and Africa. According to Thompson Reuters Foundation poll, Afghanistan, Congo, Pakistan, India, and Somalia were dishonored as the world's five most dangerous countries for women. But the thing is, the problems are not limited to the listed countries. The rights of women are seriously threatened in other nations as well such as Iraq, Egypt, Saudi Arabia, Syria and Yemen.

women's lives is not war, but birth. According to U.N. figures, one woman dies for every 100 live births, which is one of the highest rates in the world. What we can infer from this is that there are still many places that have terrible environments for pregnant women. When they need to be safe and sound, concentrating on their own health, women in these countries meet the dangers of death.

The UN states in its declaration (Article 1) that 'To achieve international co-operation … in promoting and encouraging respect for human rights and for fundamental freedoms for all without distinction as to race, sex, language, or religion.'

Up to this day, there are women do not have any necessary protection from numerous dangers. Evil customs such as honor killings definitely infringe upon women rights; murder is not something that can be justified. “At least 943 women were killed in the name of honor, of which 93 were minors,” wrote the Human Rights Commission of Pakistan in its annual report. Honor killing is not even written on the Kuran; the extreme terrorists are the ones who 'propagate' such inhumane acts. Strong political wills and efforts are desperate in order to solve the problems that are occurring, but unfortunately, many people do not know how serious the states are. We definitely have to realize the fact that, the shortest answer is doing.

Thus, although there are international declarations and efforts to guarantee women rights like the UN's declaration (above), the world today still has numerous unsolved problems that are not being regarded as major issues in international conferences. In Somalia, the women’s minister, Maryan Qasim stated that being pregnant is the biggest danger for the country’s women. According to an article from the Reuters, "The most dangerous thing a woman in Somalia can do is to become pregnant," Qasim said. "When a woman becomes pregnant, her life is 50-50 because there is no antenatal care at all ... There are no hospitals, no healthcare, no nothing." Somalia has been involved in conflicts for 20 years. But the greatest risk for 37

What's the True Role of Press? Writer: Jeewon Lee Editor: Insik Jang, Yugyeong Jeong Recently, the whole country has been shocked by the unpleasant accident. Many people are criticizing the press for not reporting the truth, but reporting the incorrect information. The press has the duty to be the true friend of the citizens and to report the fact. However, the authoritities have made the press a tool for controlling the citizens. Once again, more curiosity has been incurred by this accident whether the press is really on the citizens’ side. Actually, no one knows. However, we know that the press must do their jobs: to become the messengers of sending right information.

What is a Check Card? Writer: Yeon Je Sung Editor: Stephanie Yang A Check Card is a financial card that allows financial authorities took a part. one to spend money as much as saved in one’s Observing this phenomenon, one person check card. from the Financial authorities said, “Last year was Last year, in South Korea, the average num- the last era that one person held numerous cards,” ber of credit cards held by each person dropped and continued, “Credit cards, too, give more fringe under four. It is the lowest number in five years benefits when used itself alone, so not many peosince 3.7 cards per person in 2007. ple would choose to have lots of credit cards.” This year, as Check Cards became popular Truly, this phenomenon can be described and people avoided using credit cards due to the with the change in ideology and wisdom of the personal information leakage, the number is ex- people of this generation. One worker of the cards pected to increase further. points, “While in the past, people utilized credit cards indiscriminately, these days, consumers tend In addition, as the slogan ‘Do not get into to buy necessary products only.” the red’ propagated, the rate of lump sum payment exceeded over 70% and amount of payment While the era of check cards rose, there was through check cards approached 90 trillion Won in a side effect of the great reduction in use of credit total. cards: Sinhan Cards and Kuk Min cards, too in hurry to clear their stocks, were blamed for selling their Therefore, credit cards companies have insurance products to consumers without giving commenced to look for other ways to sell their card detailed explanations about them. products. The Financial Committee attributes the reduction not only to vitalization of check cards, but also the additional services and fringe benefits that failed to please the customers. Also, the clearance of all credit cards in dormancy (not in use) by the 38

Agflation- How Much Do You Know? Writer: Gue Jeong Jeong Editor: Yoojeong Lee In human history, it was not an earthquake, a typhoon, a war, or a disease that took the largest number of human lives- it was starvation. On average, famine kills from millions to thousands of people at one swoop. In 2004, the secret document of the US Department of Defense prospected that within 20 years, there will be a possibility of an outbreak of worldwide calamities such as natural disasters caused by abrupt climate shift or wars, and securing foods, water, and energy will be the most difficult problem. Concerns about the global food crisis have also been arising since there have been lots of protests and mob scenes in Haiti and Somalia in 2008 claiming for foods.

ness is heating up, the inflation in overall price breaks out. Farm products are easily affected by a liquidity crisis and interest rate, and they are very connected to other raw materials, causing them to have difficulty shifting alone. Experts anticipate this inflation will not be a temporary one, because we are having a high frequency of the outbreaks of earthquakes and droughts. After 2006, the rapid increase in implied volatility for farm product price occurred 4 times.

However, this is not a problem only focused toward the past events. The price of major raw materials like coffee, wheat, and pork is increasing rapidly. According to Financial Times (FT), the price of the ten major agro-livestock products has increased to 33% on average: 38% on pork, 37% on sugar, 24% on corn, and 112% on coffee, being the largest increase during the same period. There is a possibility that the inflation on farm-products can cause inflation on food prices in general. Multinational companies like Unilever, P&G (Procter & Gamble), and Nessler, which use these products on production processes, are increasing the prices of their products. They are complaining that if they do not increase the prices of products, then they will not be able to make any profit in their market.

El nino is also a huge problem. It affects energy and food market because El nino has attendant problems including above-average temperatures. Korea has to recognize the seriousness of this situation as it imports 70% of the cereal consumption, taking the position of 27th among 30 countries of the OECD. Other materials like oil or steel can be used less, but food is the indispensable factor in our life. There are a few farmers nowadays, and not many people want to work on farms. Millions of farmers in India are committing suicide annually. We need to admit it. Current situation is very serious, and the world is not ready for it, only trying to accomplish an economic growth. Without food, only death will come.

Jim Rogers, a famous investor, said “The socalled agflation - compound of agriculture and inflation, is already being progressed due to the farm prices. The grain price is growing, and it will not cease in the short future.” One of the biggest factors contributing to this phenomenon expects to be the abnormal climate and contagion epidemic. Coffee bean price increased on account of the severe drought in Brazil, which is the world’s biggest producer of coffee bean. PED, or Porcine Epidemic Diarrhea, in USA causes a rapid decrease of the pork production. There are also many odd phenomenon occurring at so many other places at the same time.

FT points out that because the crop busi39

What is “Modisumer”? Writer: Eunyoung Lee Editor: Annie Song With the high consumers' desires to diverModisumers are also in the cosmetics marsify products, individualized consumption patterns ket. Some consumers use their own blusher creare becoming common in markets. The so-called ated with a mixture of foundations and lipsticks. "Modisumer” is leading today’s industry marketing. Sales of cosmetics to suit consumers’ individual tastes have been steadily increasing since their Modisumer is a portmanteau of consumers launch. and their modifications. It is called a consumer who develops a way of consuming products by his own As the number of Modisumers rises, compataste, and not just following the way presented by nies recently are trying hard to do various marketthe manufacturers. ing for them. One industry official said, "Not to miss the needs of the ever-transforming consumers, Representatively, there are lots of product launches and marketing for Modisumers Modisumers among ramen consumers. They enjoy seem to be a boom this year." While consumers are it according to their own recipe by changing the always seeking personality on products, Modisumer given recipe or adding different ingredients. One of marketing is to be focused even more. the ramen companies opened a blog to share more than 90 different recipes for Modisumers, and since then consumption of its ramen has increased.

Is Fair Trade Really a Fair Trade? Writer: Yoo Min Ahn Editor: Stephanie Yang Our human civilization has shared a strong connection with trade, since the beginning. From prehistoric ages, humans were able to trade with others through bartering. The earlier practice of bartering has transformed into current currency system that builds up our modern economy. In our economic system, trade is inevitable in our human lives. In the 21st century, while underscoring necessity of free trade, people are paying attention to elements of social equalities and human rights. This tendency is shown in the fair trade movement which is coming to the front slowly, but effectively. However, there are still doubts and questions remain about fair trade’s lack of information, unethics, and concerns of economic inefficiency.

sically getting ripped off. It is because they do not know if their money is helping the Third World farmers. In order to solve this dispute, fair trade retailers must open their pricing information to the public and fair trade organizations must establish a firm monitoring program to improve the system.

First of all, secretiveness of fair trade leaves doubts for consumers. The retailers and importers do not know whether they are paying an adequate money to the fair trade cooperative, because there is no efficient controlling of fair trade. They provide guidelines for retailers, yet there is not any institutional strategy to prevent these loopholes. As a result, consumers who buy these fair trade products with the expectations of social contribution are ba41

This is a successful marketing strategy indeed, but an unethical one. Moreover, fair trade can cause damages to the Third World farmers, rather than bringing benefits. Since retailers and importers deal with producers directly, they are apt to buy products in low price. After all, this is also a competition for fair trade farmers as well; so they have to follow unfair pricing measurement by buyers. Furthermore, profits are only focused on middle income country farmers than truly poor ones. The importers will be likely to deal with producers that are efficient enough to handle paper works and make the best products in a short period of time.

The richer farmers are the ones who can meet all these requirements because they are relatively educated and skillful. On the contrast, poor farmers who lack education and mostly reside in geographically remote areas will have lower chances to win the competition against richer farmers. As the statistics of Fair trade Labeling Organizations International show, two thirds of premiums go to middle income countries in South America and Caribbean, leaving little benefit for poor countries in Africa and Asia. For example, countries like Mexico have 70 times the Gross National Product per head of Sierra Leone.

lead fair trade farmers into larger dependency which only locks them up in poor improvement for future. Moreover, the market is healthy when there is a diversity of products, so customers have a variety of choices to choose from. However, fair trade prevents rather than vitalizing the diversity. It restricts the niche market such as specialty products. Since customers believe that buying fair trade product is more ethical, it causes them not to buy a high priced product. This naturally leads to undervaluation of their brand image. Indeed, fair trade is a great way to promote human rights and social equality in our world, however, it still carries concerns in terms of its confidentiality, unexpected damages, and possibilities of economic inefficiency. In this regard, free trade is still the most beneficial and pragmatic method in our society that encourages peaceful agreement between partners through consensus, catalyzes nation’s economic growth, and opens all the information to consumers.

Lastly, fair trade may upset world’s economy, including: a decrease in world commodity price and restriction of diversity. Supporters often voice that fair trade guarantees a minimum price for cooperatives, nevertheless it can be abused very easily. Furthermore, by ensuring minimum profit, it encourages oversupply, which directs to a drop in global commodity prices. This can easily

World Cup in Brazil and its Turmoil Writer: Sejung Kim Editor: Stephanie Yang Brazil will be the host for the second time in the 2014 FIFA World Cup. The very first match will begin on June, 10th. Brazil seems to have a good incentive by playing on the home ground against Croatia. Many economists insist that Brazil will not experience immediate economic benefits but will undergo long-term benefits, which are 'priceless.' It is viewed that Brazil, by hosting the 2014 World Cup, will raise its global status as well as its reputation, which can result in an increase in the field of tourism and investment from foreign countries. Brazil can follow the path of South Korea and China, as both countries significantly increased outside investments and global images by hosting World Cup, each in 2002 and 2008.

curred in Sao Paulo and Rio de Janeiro as workers protested at the government to raise their labor wage. San Paulo halted the strike now but declared that they will continue as a negotiation with the government break down. This ongoing turmoil situation in Brazil should be stopped as soon as possible, as hosting the World Cup is a very significant opportunity for one country to boost up its economy and improve the image of the country to its outsiders.

However, Brazil’s ongoing unsettled situation can and will dramatically offset possible benefits. More than 9 laborers who worked for the Brazil World Cup construction died from fast-paced construction. On June 10th, a support fixture made by concrete collapsed at a monorail construction site in Sao Paulo where the opening ceremony is going to be hosted, leaving 1 people dead and 2 workers in serious injuries. Also, metro strike oc42

Rash Guard: New Trend of Swimsuit Writer: Seryeong Lee Editor: Euiyoung Kim The long sleeve swimsuit "rash guard" (Rash 3.5 times those of the bikini. Sales of bikini in a Guard) has ruled the bikini swimwear market in the situation that is contrary to last year were 37% summer of this year. higher than the rash guard. A rash guard is a long sleeve swimsuit worn in order to protect the skin from ultraviolet light, friction, harmful substances, and cold. It is often long-sleeved, in the case of water sports activities such as surfing and scuba diving. Rash guards were generally thought of as swimsuits for professionals, but recently they are popularly worn by people playing the water.

According to AK Mall, the interest of the rash guard is growing because "celebrities say that product design and color variety were released one after another to improve the figure," another factor of popularity.

The rash guard is popular in the summer this year, recording highest sales of swimwear department, the online shopping mall AK Mall revealed. According to the swimsuit sales situation from May 8 - June 8, UV-blocking functionality swimsuit sales volume increased 91% from the same period last year. Among them, rash guard sales have increased 164% and sales of children's rush guard jumped 785%. Sales of bikini of the same period were only 7%. Sales volume of rash guard reached about

SEWOL TRAGEDY’S ECONOMIC IMPACT Writer: Yeojin Shim Editor: Euiyoung Kim Recently, the atmosphere of South Korea has turned grey and gloomy. This is because of the tragic accident that happened in Jin-do, Paeng-mok bay: the Sewol cruise ship incident. This incident has affected the whole nation, causing people to cancel some events and ban school trips for a while. The surprising thing is, these affects also include the change of flow in the Korean economy. According to the announcement in June by the Monetary Policy Committee under the Bank of Korea, the disastrous incident of Sewol cruise ship has caused a sudden decrease in spending which is negatively affecting the economy. Looking from the ‘direction for the currency policy’ that the Bank of 43

Korea has presented on June 12th, in the domestic economical status, the Sewol incident has stopped the pace of reviving Korean economy. The government is trying to get back on by investigating the incident in more detail and having a look at other countries’ cases. Thus, looking at the present circumstances from the economic point of view, the GDP of South Korea will continue to have a minus status quo but will gradually reduce the gap between the rich and the poor, and the price level will be rising soon, even though it is now at a quite lower rate compared to the economy at its usual normal pace.

Wide Gap between Employees and Employers Writer: Shiyoung Kim Editor: Euiyoung Kim increasing every year. “The ratio was 20-to-1 in 1965 and 29.9-to-1 in 1978. It peaked at 382.4-to-1 in 2000, and has been climbing since the end of the Great Recession.”(Economic policy institute) Lawrence Mishel, the EPI president said, “The fact that CEOs make almost 300 times what workers make should set off alarms. CEO pay has outpaced worker pay, the stock market, and even the wages of other top earners. CEOs are makCEO-to-worker Compensation Ratio / © CNN.com ing more and more while workers are making less—even when worker productivity is According to the Economic Policy Institute’s skyrocketing”, adding, “It’s clear that this is not report about the pay chasm between employees simply CEOs being fairly compensated for making and employers, the average CEO compensation firms more productive.” came to be at $15.2 million, while the employees’ payment was about $52,100. It appeared that CEOs We clearly need to come up with a way to make 296 times more than average workers. solve this increasing gap. The report also showed that the pay gap is

Chinese Mobile Devices Arising in Korea Writer: Stuart Ko Editor: Hye Won Jang One of the largest telecommunication companies in Korea is now the first pioneer to settle the world’s first cross border VoLTE roaming services. VoLTE is a short term for “Voice over Long Term Evolution.” Considering that the so-called 4th generation mobile communication systems, such as LTE and Wibros, were focused on the transmissions of data, these systems had to depend on 3G systems when calling each other. Thus, the VoLTE technology is expected to transform the current flow, shifting its phone call services from 3G technologies to internet based systems. VoLTE technologies received the limelight worldwide, but the first country to settle the system was Korea, because its technologies were hard to be commercialized.

with KT’s expansions to China, now almost every Chinese mobile device is applied with KT corps’ services. It is necessary to focus on the characteristics of KT Corps, which is providing its telephone communication systems, and not manufacturing its own devices. Therefore, KT Corps’ expansion to China would mean re-importation of Chinese mobile devices to Korea.

However, China is where the upcoming technologies would be introduced. With the help of KT Corps, it would be able to eliminate the technological barriers between Korea and China. Recently,

Why are Watermelons So Delicious? Writer: Taeyoon Kim Editor: Dylan Park The quicker the summer comes, the sweeter the watermelons are. Moreover, cheap price of watermelons also tempts consumers to buy them. But what is the main factor that affects watermelons’ sweetness? Consumers are both satisfied and confused with these unusually sweet watermelons.

nowadays and these watermelons spend more time receiving sunlight. Second reason is that modern technology contributed to improving watermelons’ quality. Generally, watermelons grown inside are sweeter than watermelons grown outside. This is because of difference in temperature and humidity. Mark Twain, an English writer, claimed that watermelons are the best food in the world. This is largely due to watermelons’ coolness that can relieve one's thirst. In fact, watermelons contain many precious minerals and anti-cancer nutrients.

In the past, in order to increase the sweetness of watermelons, people injected sugar into the watermelons. However, with modern technology, farmers no longer have to make those efforts. Some farmers spray sugar as a fertilizer but it is a rare case.

In addition, professors in Texas A&M University claimed that eating watermelons can faciliThere are two main reasons for increase in tate relaxation of blood vessel. Moreover, seeds of watermelons’ sweetness. First reason is that water- watermelons contain extremely large amount of melons grow in condition of higher temperature protein.

Problems of Online Newspaper Advertisements Writer: Na Hyun Lee Editor: Hawon Lee Recently, people read more online newspapers than traditional newspapers because of the Internet’s accessibility and interactivity. Not only do online newspapers cover news more quickly than traditional newspapers, which are published only once a day, but online newspapers cover wider subject than traditional newspapers. As online newspapers continue to gain popularity, the market for online newspaper advertisements is also expanding.

fects. In case of the advertisements on online newspapers, however, the ads aim to drawing consumers’ attention with sexual images and expressions. These advertisements not only provoke displeasure, but also effect children negatively.

Although carrying advertisements can be understood in the context of complementariness of online newspapers and thus their need for income source, excessive and sensational advertisements are hindering the quality of newspapers. It is reAlthough it is inevitable for online newspa- quired for online newspapers companies to keep an pers to incorporate certain measure of advertise- eye on quantity and contents of their advertisement, the excessive amount of ads is disrupting ments. subscribers. The heavy degree of advertising makes it difficult for subscribers to focus on news article. Nowadays, most of the online newspapers are dubbed with advertisements that even a professional program was developed to eliminate them. Another problem with the advertisements is their obsceneness. The most common advertisements found on online newspapers are those of adult products. Traditional newspapers did incorporate advertisements of adult product, but they mainly focus on its ingredients and scientific ef-

Korea Under Severely Unbalanced Income Rate… No Sign of Alleviation Writer: Yeon Je Sung Editor: Hawon Lee A number of international organizations such as the International Monetary Fund (IMF), the Organization for Economic Cooperation and Development (OECD), and the Asia Development Bank (IDB) are expressing their concerns about the polarization of wealth in several countries. Among the developed countries, Korea has ranked high on the level of income polarization

should abolish tax exemption policies that provide too much benefit for the rich, and should instead reinforce taxation on real estate and financial assets. ADB also pointed out that, although Asia’s economic development is relatively favorable, if the distribution problem exacerbates, it may pose an obstacle in continuing the growth. According to the report by ADB, Korea ranked 5 among 28 Asian countries on the aggravation rate of unbalanced distribution over last 20 years. China ranked the first with the increase of Gini Coefficient by 1.6% on average, and Indonesia, Laos, Sri Lanka followed it. Korea’s Gini Coefficient turned out to have increased by 0.9%, making it the eighth highest in Asia.

IMF recently reported that the disparity of income may hinder the growth of the nation, and emphasized the need for measures to redistribute income in order to sustain the development. IMF suggested taxation as an example, providing examples of countries whose income disparity decreased by one-third after employing the method. IMF is not the only one concerned about the issue.

Many Korean economics professionals recommend that, in addition to taxation, the employers should ameliorate the quality of workplace and that the government should support the preparation for citizens’ later years and establishing their personal assets.

In its recently published report, ‘Income Distribution and Poverty’, OECD stated that the polarization has been worsened over a few years. It emphasized that countries must reform their taxation policies, in the same context with IMF’s suggestion. More specifically, OECD contended that countries

2014 Brazil World Cup: All in One Rhythm! Writer: Seong-Soo Kim Editor: Ji Eun Seo world pay attention to the World Cup. It is a big chance for players to introduce their own abilities and show potential in front of the world citizens. The very first World Cup was held in 1930 and this upcoming © Photosprovided by Seong-Soo Kim Brazil World Cup is World Cup, one of the biggest festivals in the 20th festival. Interestingly, Brazil had the most the whole world, is going to open in Brazil on June chances to be a winner of the World Cup (total five 12th. When this season begins, all the people in the times) preceding Italy, which won for four times. 46

Let’s see what is SPECIAL in this Brazil World Cup.

2) Brazuca

1) Goal control 4-D

‘Brazuca’, the official ball of the 2014 Brazil World Cup, has some distinct points when it is compared © Photo provided by Seong-Soo Kim to those of other World Cups. Until 2002 (Korea-Japan World Cup), pieces of the official balls were 32 pieces. After then, the numbers started to decrease to 14 pieces in 2006 (Germany World Cup’s official ball-‘Fivernova’). ‘Jabulani’, an official ball of South Africa World Cup in 2010 had 8 pieces while Brazuca currently has 6 pieces, which is in the same shape. Why is that? It is said that less the ball’s pieces, the more the player is able to kick and pass the ball accurately.

I still remember the ball dropped inside the goal line during the first round tournament of Germany and England in 2010 South Africa World Cup, after the England’s kick hit the cross-bar. It was an obvious goal, however, the judge said ‘No Goal’. Because of his wrong decision, England was defeated by Germany. Goal control 4-D is introduced this time to prevent the situation above. Goal control 4-D works through 14 high-speed cameras located in each goalpost being fan-shaped. When these cameras capture the images, the computer composes these images in a three-dimensional manner. This system automatically judges whether Are you ready to get on a bus which is about to dethe goal has succeeded. If the ball crosses the line, part to Brazil? Let’s sink into the Brazil World Cup together! it sends the message ‘goal’ to the referee’s watch.

An Unavoidable Dilemma, Growth or Distribution? Writer: Jeongyun Hong Editor: Paul Schaaf The dilemma of increasing the pie or distributing the pie has been a controversy in the Korean society since its democratization was settled. Free marketers, associated with neo-liberalism, are against the economic regulations by the government and are heading toward the growth. On the other hand, there are capitalists focused on distributing the pie most equally. Welfare and equal opportunity is what they aim for. Recently, the dilemma of distribution or growth has come to the surface. Carrying out a cabinet reshuffle, Choi Kyung-Hwan has been nominated as the commerce secretary. As a former financial official, Choi is a typical free marketeer who has an emphasis on growth. His past statements 47

and works show the recognition that problems of Korean economy such as polarization of wealth and income bipolarization could be solved by a higher growth of the economy. In 2008, in an interpellation while he was a lawmaker in the Grand National party, Choi criticized that being dominated by a distorted ideology called equality and distribution, Roh Moo-Hyun's administration has lost its dynamic and wasted potentiality of growth. Moreover, he mentioned that “Growth and distribution are like two sides of the same coin. If distribution means an acceleration of growth, economy books should be rewritten at all.” Although he does consider ‘distribution’, growth should be prioritized anyway.

Ahn Jong-Bum, a presidential secretary for economic affairs who supports Choi pursues a balance of growth and distribution. He believes though that the government has to remove restrictions for the economic growth and refresh the market by reducing taxes. Particularly, he thinks relaxing the restrictions against real estate and the service industry is necessary. He admits the necessity of protection regulations for the weak such as mi-

nor enterprises, but warns the nation against reverse effects. Splitting the government with dichotomous thinking is dangerous, but it is their work to evaluate what should be weighted and how much each aspect should be weighted. Korea should not lose its core of democracy and forget the problem we face. That is our sole work.

Who will Laugh at Last? –World Cup, Paradise for Global Marketing Writer: Gue Jeong Jeong Editor: Jung Hyun Lee Many are cheering, laughing, and being ex- this tactic with a campaign about the 'Red Devils', cited about this event. Koreans, with the represen- beating their No.1 rival firm, KT. tative color of red, are also turning into a scene of The marketing strategies have been changwild excitement. What do you think this is all ing annually. In Germany, the 2006 World Cup, about? That’s right. World Cup is about to begin. mass media like TV and blogs were widely used. In This global soccer warfare held every 4 South Africa, 2010, social media like Facebook and years is now being held in Brazil. World Cup is Twitter were used, having expanded participation where players are eager to participate - a dream rate of general customers. Social media can be stage to every soccer player, which does not only used by ordinary corporations which are not official help them to raise their worth, but also provides a sponsors because their promoting tactics in social chance of broadcasting their names to the public. media cannot be limited that easily by FIFA, the International Football Federation. However, there are also 'some people' who have been waiting for this event- the companies. Because of the tragedy happened few World Cup, on which 71 billion people are focusing, months ago, many corporations are trying their is a battlefield without gunfire to upgrade its brand best not to do splendid and lavish festivals and power for every company. events. However, this quadrennial event is a tremendous chance not to be missed by the whole World Cup marketing is a marketing techworld. So, why don’t you enjoy this fancy event, nique to promote productivity or to broadcast the while watching the companies having a craze to company’s own products using the event. Accordpromote themselves? It will truly be a big show. ing to the related analyses, the official sponsor corporations are expected to earn 10 to 20 times as much as their investment comparisons. This year, the main corporations sponsoring Brazil include: Adidas, Coca Cola, Sony, Visa, and Hyundai&Kia Automotive Group. The commercialization of World Cup first started in West Germany in 1974. The official sponsoring corporations can use World Cup logos and billboards in the stadiums. Other unofficial companies cannot use the World Cup logos, but they can indirectly promote themselves just by using World Cup’s atmosphere. This is called “ambush marketing”. In 2002, SK Telecom Co. made a good use of

FIFA Writer: Hajin Hyun Editor: Stephanie Yang The global soccer tournament that heats up the whole world every four years has finally begun on June 13th, 2014. The elaborate opening ceremony at the Arena de Sao Paulo officially marked the beginning of FIFA World Cup 2014. From its grand scale and amazing performance, it becomes a wonder how FIFA can host such a huge event.

animosity, could not stop the entertainment that an international soccer match could bring. Currently, there are 209 national associations. World Cup has a huge impact on the global economy. It attracts sponsors from all over the world, including large corporations such as Adidas and McDonald’s. Also, the investment made for organizing the event and developing the facilities to host the World Cup are paid off by the economic benefits from ticket sales and national exposure that can bring further success in tourism and increasing its role in the global market. So let us enjoy the Brazil World Cup 2014, and wish for the best for our players.

FIFA stands for the first letters of “International Federation of Association Football” in French. It was created in the early 20th century by countries in Europe. It soon began to expand as countries in the North and South American continent became members of the organization. Interestingly, it survived through World War I. Thus, even war, with its deadly weapons and supposed

Would Brazil’s Economy Benefit from World Cup? Writer: Jiyun Choi Editor: Jae Eun Lee World Cup, the championship tournament of the world’s most popular sport, has started and the hosting country, Brazil is facing various impacts of the game bubbled to the surface. World Cup has brought millions of tourists and mega corporate sponsors to Brazil, and to capitalize the spotlight, the country has spent an estimated $11.5 billion on a new stadium, transportation and airports.

However, many economists are predicting that hosting the World Cup would not be able to pull out the country’s economy out of its current funk. Inflation and joblessness are considered as big problems in the country, and two-thirds describe the economic situation as bad.

In recent quarters, Brazil has been suffering from the elevated inflation which has forced the With a few weeks to go until the World Cup, central bank to hike rates several times. Also, Brathe country has been beset by a series of strikes as zil’s Bovespa stock market index has dropped more workers demanded rise in payment and new bene- than 7% in the past year. fits. Some people said they were upset with lavish According to a report by Moody’s Investors spending on sports events at the expense of the Service, Brazilians who doubt the economic benesocial safety net in a country beset with inequality. fits hosting the World Cup were right. The credit Also, in the survey done by the Pew Research Cenrating agency reported that the new infrastructure ter, 61 percent of the respondents said that holding spending associated with the event is too small for the competition in Brazil is bad for the country bethe national economy and there will only be minicause it takes resources from schools, health care mal benefits to businesses. Moody says, "We see and other public services. Just 34 percent of the little impact on Brazil considering the limited durarespondents, whose events will be held in 12 cities, tion of the World Cup and the size of the country's said hosting World Cup would create jobs and help economy," the economy. To justify the huge expenditures, the politicians promised that the event would benefit the economy largely and help to improve infrastructure. 49

Clouds over FIFA World Cup 2014 Writer: Sung Mo Koo Editor: Daniel Jung The football World Cup is an event which occurs once every four years to gather all the ebullient soccer fans in the world. Just like the past World Cups, 2014 World Cup held in Brazil is also gaining a huge interest worldwide. However, some raise voices on whether the event will truly be successful, although Brazil had won the bid for the World Cup as early as 2007,

Cup, the first World Cup held by an African country, was expected to stimulate the economy of the Republic of South Africa immensely. Nonetheless, gain of foreign currencies was less than one-third of what was expected, and tourists used less than one -tenth of the budget the government had invested in the event. 2006 World Cup also did not gain as much profit as the German government had expected. Although this does not directly imply that That not only World Cup but also internainterest of people toward World Cup is diminishing. tional events in general are effective in stimulating Brazilian government is deliberate on its optimistic the economy of a host nation is a general consenexpectations of 4.5 billion USD. sus. For instance, Republic of Korea had spent approximately 0.8 billion USD to promote 2002 World One economic problem that has arisen in Cup, receiving more than 5 billion USD from tour- Brazil is that the government is over-investing the ists and so on in return. Adding up the figure with budget in the World Cup. What should have been various positive externalities strongly insinuated allocated to public education or medical service is the skyrocketing growth of the economy due to the instead spent on building stadiums. The economy single event. Such economic gain, along with public of Brazil, which had shown a sharp rise in 2000’s, support, has been one of the most important rea- remained stagnant for past few years. Criticisms sons for a nation to host such a costly event. toward Brazilian government’s excessive spending are made by both Brazilians and foreigners. It is not However, whether the notion is still applicadifficult to find ongoing strikes in Brazil, even when ble in modern days is questionable. 2010 World football games are happening in stadiums nearby.

BREAKING THE GLASS CEILING Writer: JiHo Kim Editor: So Jin Park tinuing to linger at 1.2, concerns about low birth rates and aged society have come to the surface as data proving that these problems are directly associated with the economy are emerging from everywhere. The S&P has lowered Japan's sovereign credit rating a few years ago, and one of the main reasons was the population. The social environment of Korea does not give any help for the coexistence of work and family; 'breaking' the glass ceiling is not something easy in the current circumstances. As stated in Facebook CEO Sheryl Sandberg's TED-WOMEN conference, of all the people in the parliaments around the world, 13 percent are women. In the corporate sector, women at the top, C-level jobs, board seats barely reach a number of 15, 16 percent.

While the total fertility rate of Korea is con50

Sandberg is not saying that staying in the workforce is the right thing for everyone, but she does assert three messages for the future generations. First, sit at the table. Second, make your partner, thus husband/wife, a real partner. Third, do not leave before you leave. “Sit at the table,” means to get engaged, whoever, wherever you are. “Make your partner a real partner” applies equally to men and women. In addition to being morally and ethically sound, it is a brilliant strategy for happiness and success. And “Do not leave before you leave” means staying in the game, in the process, in the flow, and in the struggle right through its conclusion.

conducted by the Ministry of Strategy and Finances, 56.4% of unmarried women replied that the reason for postponing marriage was because of the fear of getting fired.

The President of Malta, Marie-Louise Coleiro Preca, also pointed out that not all women own the 'luxury' of choosing between going out to work and becoming a housewife. If we take a look at Sweden, the government provides deep support for parents to get the best of both worlds: family and career. As a result, even though individualism is now prevalent among other European nations, Sweden possesses a high total fertility rate of 1.9, according to a research by the World Bank in 2010. Businesswomen in Korea usually have no We should remember that change will not come if choice but to put their jobs ahead of family com- we wait for some other person, or if we wait for mitments in order to be successful in a male- some other time. dominated corporate world. According to a survey

Diversity Shines Here!!! Writer: Ji Hwan Yoo Editor: Nayoung Oh This year Incheon, a port city in The city spent roughly 2.2 billion US dollars northwestern Korea, is gearing up to host the 17th preparing for the Games. Asian Games this fall. Although it was a big financial burden for Followed by the Seoul Asian Game in 1986 the city and hosting such a high profile event comes and the Busan Asian Game in 2002, finally Incheon with risks, the institute for Interntional Economy was chosen to be the third Korean host city seven Policy says that the Incheon Asian games has the years ago. potential to generate an economic impact which is worth 1.3 billion US dollars and it will create 270 Having about 100 days to go before the big thousand new jobs. event, the city is getting prepared for the games step by step. Asiad Main Stadium, the city's new The Incheon Asian Games Orgnising Comlandmark, was completed last month. Sixteen of mitee is trying to make this big event the most ecothe 49 stadiums which will be used for the Asian nomical, efficient and eco-friendly one. Games are newly built, while the rest have been Not only the IAG Commitee but also whole remodeled. citizens of Incheon want to host it successfully, and Plus, they came up with a few promotions, wish it to contribute to boosting the Asian econwishing for a successful event. First, under the omy. name of 'Fun Run', promoters are touring around the participating countries in order to advertise the © Photo provided by Ji Hwan Yoo Asian game to the locals in those countries. Second, they selected some bloggers called the IAG Crew for advertising the event online. Smart Torch Relay, which is an event of giving out Asian Game torches to people using SNS or NFC functions with their cell phone App, is also being run. 51

Terror Occurs in Baghdad, Iraq Writer: Ga Yeon Lee Editor: Hui Yeon Lim On July 15th, AFP communication reported that there was a large terror in the center of Baghdad, Iraq's capital city. According to the Iraqi government, the bomb exploded among small shops. Cops have decided that it was a suicide terror. At least 9 people died and 23 had been injured.

lowed to the site.

The Iraqi government was getting prepared for counterattack to ISIL, but this terror occurred even before they were able to make it. The Iraqi government and ISIL have been fighting for months. ISIL almost took over the northern site of For now, no one knows who made this mis- Baghdad, however, these days, the Iraqi governerable terror, however, most citizens of Iraq guess ment has counterattacked and regained many part that it must be done by 'ISIL' (Islamic State of Iraq of taken sites. and the Levant). For now, the Iraqi military force is preparing Victims of the terror were moved to the for another counterattack in Sammarra, 100km nearby hospitals to receive treatment. According to away from Baghdad. the accident spot staff, only ambulances are al-

XiaoMi Writer: Larry Jeon Editor: Stephanie Yang For any firms that devote to manufacturing industries, China displays various qualities that may satisfy the required features of environment, which has led its market to become a stage for passionate competition among IT firms, especially the smartphone industry. Apple, Samsung, and LG have long been putting up new products with innovative technologies with somehow lavish functions to meet the expectations of tech-maniacs. While the foreign companies strive to gain reputation inside the broad market of Chinese potentials, Xiaomi participated in the competition as a native innovator that will suppress the ambitions of those technology tyrants. When looking at a Xiaomi product, one can associate the square and simple design with a certain brand; Apple. For the Chinese buyers, Xiaomi has been an affordable digital device that satisfies the needs of those who became sick of buying another Apple product with skyrocketing price. On May 2014, Xiaomi released its Chinese version of iPad, MiPad, which precisely demonstrated the intention of targeting the market Apple has been occupying since the early age of smartphone items. The difference that supports Xiaomi to become a new champion is its obvious low price marketing skills through minimizing the advertisement costs 52

and limiting the amount of goods on sale for rarity. Moreover, Xiaomi has its store only on the internet with social networking services as commercials, which helped bring down the usual high cost of smartphone devices.

ÂŠ VR-Zone.com

In addition to such national market strategies, Xiaomi, including other Chinese smartphone companies have been literally absorbing global talents from other foreign firms. Hugo Barra, a former executive vice president of Google Android Department, has transferred to Xiaomi as its Executive Vice President in Global Business Development in August, 2013. Although some reports say that the job change was due to a private conflict between Barra, his ex-girlfriend, and Sergey Brin, Xiaomi has shown its will to prepare itself for the market beyond China by recruiting men of global experiences with smartphone knowledge.

Even though some of Xiaomi’s product was only sold in the Chinese market, the statistics of global smartphone market have shown that the two of Xiaomi phones, MI3 and RedMi Note have ranked the 5th and 7th place, which brought up the world sales ranking of 30th place for MIT technology review’s 50 smart companies. Counterpoint research stated that “For RedMi to have successfully ranked high in the global market proves that the Chinese market takes one major part in the smart device industry.”

Park Geunhye Administration's Cabinet Reshuffle - Prospects for Choi Gyeonghwan as new Deputy Prime Minister of Economic Affairs Writer: Woo Seok Kim Editor: Stephanie Yang The 6.4 local elections have been completed. The results show that no party has actually 'won', though the ruling party, Saenuri Party, is considered to have done well, bearing in mind the fact that the country is still suffering from the ramifications brought by the Sewol Ferry Disaster. As the focus is now on the 7.30 by-elections, the Park Geunhye Administration has recently carried out a Cabinet reshuffle. Among the newly appointed ministers, the biggest focus is on the new Deputy Prime Minister of Economic Affairs, Choi Gyeonghwan. He is the representative of Saenuri Party and the former Prime Minister of Ministry of Knowledge Economy(current Ministry of Trade, Industry and Energy). So, with him having been selected as the successor to Hyun Ohseok, what are the prospects? Overall, the domestic economy is expected to gain some momentum as the Park Administration's second Cabinet sets sail. Still, the prospects of specific economic policy tasks differ, some being promising while others being not. Seemingly promising economic areas include real estate and the reform of public institutions. Concerning real estate, it seems that the emphasis is on easing real estate regulations such as LTV (Loan to Value) and DTI (Debt to Income) rates. LTV and DTI rates are the percentages of the housing property value and one's income, respectively, to which one can borrow money from a bank. Considering that Choi has

previously implied the alleviation of real estate regulation policies, comparing LTV and DTI to summer outfits in the winter season, it is highly likely that appeasement policies will be applied to the real estate market in order to normalize the housing market. The reform of public institutions is also expected to take a boost in the form of deregulation, with it being one of the Park Administration's main goals and Choi being positive about it.

When it comes to household debts and currency rates, on the other hand, the prospects do not seem quite promising enough. Currently, domestic household debts go over 100 billion won, and they are considered one of the main culprits of the economy's slow progress. Since household debt problems are very complicated and severe, it seems difficult to make a optimistic presumption. It will be important to lower interest rates to a certain extent and adjust them carefully in order to cope with this particular problem. Currency rates are also a very sensitive field. Choi was once a supporter of high currency rate (devaluation of won) policies as a means to boost exports, but it seems that he has now turned to a more cautious position, saying that there is a growing public recognition that more exports caused by high currency rates don't necessarily benefit the people in daily economies. Moreover, the prospects of economic democratization, which was one of the main issues

during the previous presidential election, seems unpromising. Choi has mentioned that he supports economic democratization as long as it concerns the betterment of unfair transactions, but disagrees in any other regulations that put too much pressure on companies. In summary, the drive towards deregulation will be accelerated, especially in areas of real estate and public institutions, while housing debt problems and the upkeep of appropriate currency rates are expected to come as a difficult mission. There is no doubt that we're currently going through hard times, as the economy makes slow progress and the polarization of income aggravates. In times like this, we can only hope for the economy sector of the government, with Choi in lead, to make rational decisions that can revitalize the economy, lower the income gap, and most of all, really benefit the people.

2014 SUMMER EVENT SPOTLIGHT Researched by: Jaesung Lee

Korea Enterprise

Date: June 13th - 15th, 2014 Hosted by: Global Enterprise Challenge Location: Cheongshim International Youth Center Web: www.geckorea.org

Challenge

Financial Security Awards

Housing Finance Contest

Email: geckoreakec@gmail.com

Date: Advertisement - May 26th - June 5th, 2014, Awards: Mid-July Journal - July 15th - July 31st, Awards: Mid-September Hosted by: Financial Security Agency Web: https://www.fsa.or.kr/Event.do?com mand=eventView&eventIdx=18

Date: May 12th - June 27th, 2014 Hosted by: Housing Finance Invited: Everyone (Individual / Team) Web: http://www.hf.go.kr/hindex.html