Korea Focus 2013 10

Table of Contents

- Korea Focus - October 2013 - TOC - Politics 1. Pyongyang’s Motives for Holding Up Family Reunion 2. Wartime Operational Control Requires Long-Range Strategy 3. Mutual Need for Amicable Korea-Japan Relations 4. Eurasian Continent as New Frontier for Koreans 5. Truth about Kanto Massacre and Japan’s Apology - Economy 1. Expand the Horizon for Foreign Direct Investment 2. [DEBATE] Is Corporate Tax Hike Necessary? 3. China and Korea Afflicted with Similar Diseases 4. ‘Japanization’ of Southeast Asia 5. Racial Diversity Key to Creative Economy 6. Perception Gap on Middle Class - Society 1. The ‘Give Up Three’ Generation and New Marriage Process 2. Korean Universities Need to Share Cultural Diversity 3. Country Infested with ‘Heat Wave Zombies’ 4. [DEBATE] Are Free School Lunches Sustainable? - Culture 1. Introducing Korean Culture? No, Share It! 2. Dispute over Pensive Bodhisattva’s Trip to New York 3. Two Faces of TV Family Programs 4. Making Korea a Tourist Attraction for Americans 5. Bureaucrats Discourage Creative App Developers - Essays 1. ‘DMZ International Peace Park’: Significance and Promotion Strategy 2. Consumer Food Prices Rise Faster than Producer Prices 3. Korea’s Employment Situation in Comparison with Major Advanced Countries and Policy Suggestions - Features 1. Korean Film Industry Renaissance 2. U.K. Journalist Discusses South Korea’s Success and Disparate Social Realities - Book Reviews 1. Ceaseless Schemes of Foreign Powers to Keep the Korean Peninsula Divided - Interview 1. Choi Yang-sik: “Gyeongju and Istanbul have a long history of exchange.” - COPYRIGHT

- Pyongyang’s Motives for Holding Up Family Reunion

- Wartime Operational Control Requires Long-Range Strategy

- Mutual Need for Amicable Korea-Japan Relations

- Eurasian Continent as New Frontier for Koreans

- Truth about Kanto Massacre and Japan’s Apology

Pyongyang’s Motives for Holding Up Family Reunion

Koh You-hwan Professor of North Korean Studies Dongguk University

To the dismay of South Koreans who were enjoying a long chuseok holiday period marking their

version of Thanksgiving Day, North Korea abruptly postponed a planned reunion of families

separated in the two Koreas, which was to take place four days later on September 25.

According to a spokesman of the Committee for the Peaceful Reunification of the Fatherland, a front

organization of North Korea, the decision was made because South Korea`s conservative government

was leading a “vicious confrontational racket” detrimental to a climate of dialogue created under

North Korean leader Kim Jong-un`s “resolute and strategic leadership.” Inter-Korean relations thus

plunged into crisis again.

Why would Pyongyang act so perversely? Last May, the new Chinese government displayed its

disgust of North Korea`s nuclear test and military brinkmanship by giving a cold shoulder to a special

envoy sent by Kim. Then Pyongyang mounted a peace offensive, seeking dialogue with South Korea,

and took steps to reopen the jointly operated Kaesong (Gaeseong) Industrial Complex, which it

unilaterally suspended. The family reunion event seemed to be another conciliatory gesture.

The North`s sudden about-face may well be seen as an expression of its discomfort with the direction

of inter-Korean dialogue: the South is dictating the terms. When Pyongyang suspended operations at

the Kaesong complex last April to apply pressure on the South, the Park Geun-hye government did

not budge on its indomitable stance, which finally paid off in quelling North Korean threats. With

strong principled deals with the North based on her trust-building strategy, President Park`s approval

ratings have soared.

Emboldened by the recent developments, Seoul declined Pyongyang`s proposed date for working-

level negotiations on reopening the Mt. Kumgang (Geumgang) resort in the North to South Korean

tourists. Instead, the Park government said it would negotiate a week later. With its peace gestures

outshined by the South, the North now seems to be staging a counteroffensive by postponing the

family reunion event to regain the initiative in future inter-Korean talks.

A second reason must be Pyongyang`s judgment that it would not be easy to restore the Mt. Kumgang

tourism project in full scale, which has been suspended for over five years since the fatal shooting of

a South Korean tourist by North Korean guards.

In its initial proposal on June 6 to reopen dialogue with the South, the North proposed a package deal

that included the resumption of the Kaesong complex, Mt. Kumgang tourism, family reunion

program, and commemoration events for the July 4, 1972 joint declaration and the June 15, 2000

summit statement by the two Koreas. After a tug of war over whether to hold a ministerial meeting,

Seoul pushed through its format, which calls for a series of segregated working-level talks on the

Kaesong complex, family reunion and Mt. Kumgang tourism.

As the South rebuffed its proposal to hold the cross-border tourism talks prior to the family reunion

and even postponed a rescheduled meeting set for the day of family reunion on September 25 to

October 2, the North must have concluded that Seoul was unenthusiastic about restoring Mt.

Kumgang tourism. Pyongyang apparently hoped for a resumption of the Kumgang project

simultaneous with the family reunion because the reunion event would take place at the very resort

area.

Boosting the North`s conclusion as such might be a presumption that the Park administration should

be mindful of the rise of criticism among some South Korean quarters that the hard cash paid by

tourists from the South would only help stuff the Kim Jong-un regime`s coffers. Yet another problem

was a discord between the two sides over the accommodation of separated families, as they insisted

on differing facilities. After all, Pyongyang seems to be trying to link family reunion with the

resumption of Mt. Geumgang tourism.

A third and last reason for readjusting the pace of inter-Korean amelioration must be Pyongyang`s

displeasure with U.S. and South Korean resistance to an unconditional resumption of multilateral

dialogue, including the long-stalled six-party talks. Aside from potential economic gains, the North

wanted to restore inter-Korean relations as a precondition for resuming the six-party talks, through

which it hoped to soften the United States and normalize relations with Japan. But, in light of slim

prospects of creating a “peaceful external environment,” Pyongyang realized its olive branch to the

South was not acting as a springboard to multilateral talks.

Whatever the reasons may be, it is unthinkable to link a valuable humanitarian program with political

leverage. Most of those people anxiously waiting for a rare chance of meeting with their family

members and relatives, separated by the Korean War six decades ago, are in their 70s and 80s and

they are passing away rapidly. Therefore, indefinitely postponing or virtually denying the reunion

program is tantamount to totally violating the humanitarian and moral ethics.

What the North resents most is the claim that it caved in to Seoul`s principled position. In inter-Korea

relations, the notion of “normalization of abnormality” tends to be colored by black and white logic

or right versus wrong, by which North Korea is defined abnormal and South Korea normal. One

essential factor in applying the very notion of normalization of abnormality in our society is to

overcome the temptation to utilize North Korea policies for domestic politics.

[ Kyunghyang Shinmun, September 23, 2013 ]

www.koreafocus.or.kr

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Wartime Operational Control Requires Long-Range Strategy

Editorial The JoongAng Ilbo

The nation was in a festive mood yesterday while observing the 65th birthday of the Republic of

Korea Armed Forces and the 60th anniversary of the Korea-U.S. military alliance, but critical defense

issues surfaced at the same time. The chief concerns are Seoul`s request for another delay in the

transfer of wartime operational control (OPCON) of Korean troops from U.S. commanders and

Washington`s pressure on Seoul to join the U.S. missile defense network. Both sides are also at a

standstill in their negotiations over Korea`s share of the cost of maintaining U.S. forces in Korea.

The Washington Post reported that some U.S. administration officials and members of Congress are

becoming frustrated with Korea`s reluctance to take charge of its own defense. These developments

suggest that debates on how to ensure South Korea`s future security system are somewhat muddled.

The deadline for transferring wartime troop command was originally April 2012 and was pushed back

to December 2015 at Seoul`s request. In May, Seoul secretly asked for a second delay but was met

with immediate resistance. U.S. Defense Secretary Chuck Hagel unilaterally revealed the request to

the public and the 2015 schedule was reaffirmed by both the chairman of the U.S. Joint Chiefs of

Staff and the commander of the U.S. Forces in Korea during their confirmation hearings before the

Senate Armed Services Committee.

More recently, officials at the Korean Ministry of Defense claimed that bilateral working-level talks

had produced an agreement in principle for another delay. But Secretary Hagel said it was still too

early to decide on a possible delay. Although Hagel and his Korean counterpart are expected to

discuss a full range of security issues today during the allies` annual Security Consultative Meeting,

no conclusive agreement is anticipated on the OPCON transfer.

The Washington atmosphere may well be summed up as concern about South Korea`s obvious

inclination to “overly” depend on the United States for its national security, especially at a time of

painful constraints on U.S. defense spending. Short of openly discussing the matters, the U.S.

administration and Congress are apparently uncomfortable with Seoul`s reluctance to join the missile

defense, shoulder a bigger share of the costs for stationing American forces in Korea, and increase its

own military spending.

The “creaking” in the alliance basically stems from South Korea`s failure to consistently implement

medium and long-term security plans. Of course, significant changes have taken place on the Korean

peninsula with North Korea`s steady augmentation of its nuclear weapons capability and

consequential threats, as underscored by its third nuclear test last February. However, in light of the

fact that Pyongyang`s war threats have long been anticipated, the South Korean government can be

accused of failing to adopt sufficient and timely countermeasures.

In regards to the proposed delay in OPCON transfer, the government needs to take the following

steps. First, as President Park Geun-hye stressed in her Armed Forces Day address, it should

resolutely implement a preemptive “kill chain” mechanism and an air and missile defense system to

effectively deter North Korea`s nuclear provocations.

Second, the government should take a flexible stance on the missile defense issue. The approach of

Chun Yung-woo, senior secretary for foreign affairs and national security to former President Lee

Myung-bak, is noteworthy. He insisted that Korea`s participation be considered in terms of protecting

U.S. bases in Okinawa and Guam, vital rear bases for the defense of South Korea.

The Korea-U.S. military alliance may have to continue for another six decades. Nevertheless, we

must get rid of a blind faith that military ties with America would fully address all our security

concerns. What is most important is our firm and unequivocal resolution to safeguard our national

security on our own and to make our best effort to that end. It is also essential to establish and steadily

implement an insightful long-term strategy for national security.

[ October 2, 2013 ] www.koreafocus.or.kr


Mutual Need for Cooperative Korea-Japan Ties

Jin Chang-soo Director Sejong Institute Japan Center

The 21st Korea-Japan Forum of leading opinion leaders drew keen public attention this year as

estranged relations between the two neighboring countries persist. Some 70 politicians, businessmen,

journalists and scholars from both sides participated in the three-day forum in Seoul. In an annual

series sponsored by the Korea Foundation, the forum was designed to review Korea-Japan relations

along with Northeast Asian regional issues in an effort to formulate policy recommendations to both

nations` governments.

In the opening keynote speeches, conflicting views were presented on how to deal with the current

tension between Korea and Japan. The Japanese speaker stressed the need for mutual cooperation to

ensure sustained development in an era of energy issues, low growth, aging societies and

environmental damage, but skipped historical problems related to Japan`s past, which are in dispute.

On the other hand, the Korean speaker pointed out that the Shinzo Abe cabinet`s refusal to follow

previous administrations` expressions of remorse for Japan`s past aggression makes it difficult to

restore cooperative and amicable relations with Japan.

Veteran forum participants noted it was the first time that historical issues had ever been highlighted

at the very beginning of the conference. In previous sessions, the Japanese side largely took a

defensive posture toward the aggressive tone of their Korean counterparts. But this year, the Japanese

were quite bold, as if to punctuate a shift in position. A “reticent Japan” has indeed become an

“assertive Japan.”

With the tone set by the keynote speeches, heated discussions followed on issues related to national

security. Korean participants expressed grave concerns about the danger of Japan`s political swing to

the right as underlined by moves to amend its pacifist constitution and bolster the right to collective

self-defense, as well as the Abe cabinet`s disregard of repentance on the country`s past atrocities.

Japanese delegates responded that their push for the right to collective self-defense is to make Japan

a “normal state” and the time has come for a public debate on the issue. Some of them asserted that

Japan is already being “normalized.”

One Korean delegate mentioned the behavior of some leading Japanese politicians in explaining the

“Asian paradox” ― the disconnection between growing economic cooperation and lack of political

and security coordination. Japanese participants insisted that the paradox stemmed from China`s

attempt to become a superpower. They further argued that the recent territorial disputes and historical

rows between Tokyo and Beijing erupted as China tried to wield its power and influence.

Furthermore, some even stressed the need for Korea to discuss a strategy to cope with China, rather

than focus on Japan`s tilt toward the right.

A more elaborate change in the Japanese attitude was detected during the debate on historical

perceptions of Japan`s past. At the beginning, when the Korean side cited problems derived from the

Abe administration`s rightist turn, some Japanese journalists and opposition politicians concurred.

But, when a lawmaker of Japan`s ruling Liberal Democratic Party cautioned that Korea should not

blindly accept the Japanese news media`s criticism of the Tokyo government, explaining functional

differences between the Korean and Japanese mass media, Japanese support for the Korean speakers

faded away.

Other Japanese participants also complained that Korea does not properly evaluate democracy in

postwar Japan. They noted that self-centered historical viewpoints are wrong and emphasized the

difficulty of consensus on historical issues. Pointed remarks also were directed at former Korean

President Lee Myung-bak`s abrupt visit to Dokdo last year and his incisive remark on the Japanese

emperor, saying they dampened efforts to ameliorate bilateral relations.

However, toward the end of the debate, the Japanese side agreed that the people of both nations must

be properly informed and led to acknowledge that both Korea and Japan need each other to prosper,

a commonality that is pivotal in resolving the prolonged stalemate.

Discord was also apparent in Korean and Japanese views on “Abenomics.” Many on the Korean side

expressed negative views that the Abe cabinet`s economic policies would adversely impact Korea-

Japan relations. On the contrary, Japanese delegates, some of them crossing political lines, were

virtually united in regarding Abenomics as a last chance for the Japanese economy to survive and

expressed their hope for its success.

All in all, the forum underscored differing perceptions and prescriptions. While the Koreans were

emphatic in calling on Japan to have a correct historical perspective, the Japanese sidestepped the

history question and focused on promoting functional cooperation. To end the loggerheads, both

countries should shed their accusatory tone and adopt a strategic conceptual change of “we need each

other.” When the two neighbors become composed and dispassionate with priority placed on serving

national interests, they will find the panacea to better relations.

[ Seoul Shinmun, August 27, 2013 ]



Eurasian Continent as New Frontier for Koreans

Kim Yeon-chul Professor, Department of Korean Unification Inje University

I visited Lake Baikal a few days ago. It took me 68 hours to travel all the way from Vladivostok to

Irkutsk by Trans-Siberian train. I went to Olkhon Island, the heart of Lake Baikal, where I met a

young college student from Ukraine. We made a fire and talked by the side of his tent near the lake.

He left his home two months earlier, traveled through Central Asia, passed through Xinjiang Uyghur,

and crossed China to Shanghai. And then he traveled north. He climbed Mt. Tai, and reached

Vladivostok via Qingdao, Changchun and Tumen.

What surprised me was the way he traveled. He mainly hitchhiked to Vladivostok. From there, he

took the train to Lake Baikal, just as I did. I envied him for his youthful energy. I respected him for

his courage. He said he wished he could visit Seoul via North Korea. I felt sorry for myself living on

the Korean peninsula, where the Ukrainian young man cannot travel through on foot. When the

transcontinental train arrived at Lake Baikal after running through the endless birch forests, someone

in our group lamented lost territory. But I thought of our lost imagination.

The Republic of Korea is not an island. But we have been thinking just like islanders since God knows

when. It`s because of the military demarcation line dividing the Korean peninsula. National division

exists in our heads, too. We have long forgotten that it is possible to cross the inter-Korean border by

car or train. We are unable to think of crossing the continent by walking and hitchhiking as the

Ukrainian young man did.

South Korea will soon sign a visa waiver agreement with Russia. This will help improve Seoul-

Moscow relations by leaps and bounds, many pundits expect. They also predict that there will be

more travel and expanded economic cooperation between the two countries. Is it true?

Of course, we can travel to and from Russia by making a detour around North Korea. But railways

or gas pipelines, two key economic cooperation projects between Seoul and Moscow, should be laid

through North Korea. Any kind of Seoul-Moscow relationship will turn out to ring hollow, unless

backed up by smooth cooperation between Seoul and Pyongyang, as proven during the Lee Myung-

bak administration.

Our future lies in the northern world. We should reach the Eurasian continent by crossing the bridge

called North Korea. That is the only way for South Korea to increase its growth potential. But there

are some people who want to bolt the door and return to the past. They justify national division and

make the most of it to keep their vested interests intact. They are looking at inter-Korean relations

only through the prism of domestic politics. History never remembers politics that incites hatred.

I hope that the Park Geun-hye administration will approach inter-Korean relations from a grander

perspective. The government did well to decide to reopen the joint-Korean Kaesong Industrial

Complex. I hope that the Park administration will have a better understanding of two other cross-

border projects ― the reunions of families separated by the Korean War and the resumption of

package tours of South Koreans to the Mt. Kumgang resort area in the North.

We need to broaden our horizons of thought. The growth engine of the train, called South Korea, is

about to sputter to a stop. The OECD predicted that South Korea`s potential growth rate will be less

than 1 percent in 2031. We need to have a sense of responsibility for the future. How can we reach

China`s northeastern economic zone and Russia`s Far Eastern economic zone by not crossing the

bridge called North Korea? Kaesong is a door to the northern world. The overland road and railway

to Mt. Kumgang are also routes to the Trans-Siberian Railway. We should look at inter-Korean

relations from such a viewpoint.

I met many people at Lake Baikal. They had traveled by various means of transportation. A family

from Poland arrived via Moscow by air. Young people from Yekaterinburg arrived by the Trans-

Siberian train. Office workers from China arrived by the Trans-Mongolian Railway. I`d like to advise

young people in South Korea to think of their own life and the future of their fatherland on the road

to the Eurasian continent. I also want South Korean politicians to allow us to use our imagination

about the continent.

[ The Hankyoreh, August 23, 2013 ]



Truth about Kanto Massacre and Japan’s Apology

News Commentary Yonhap News

A collection of testimonies about the Japanese massacre of ethnic Koreans after the Great Kanto

Earthquake on September 1, 1923 has been published. It contains vivid eyewitness accounts from

Japanese soldiers, police officers and vigilantes who were involved in the wanton slaughter. The

genocide was a typical example of how an atrocity can occur when mass hysteria is combined with

state power in the wake of a natural disaster.

However, the facts about the Kanto massacre, including the exact number of victims, have never been

released publicly, as they have been with regard to the Holocaust, the genocide under the Nazis. It is

the shameful result of Japan`s cover-up efforts and our indifference to the tragedy. It now behooves

us to reflect on whether or not we have treated the past seriously enough, even though we are asking

the Japanese to look candidly at history.

The collection of testimonies was compiled by Masao Nishizaki, a retired teacher who linked up with

a group of Japanese who had excavated the remains of the massacre victims and memorialized them.

Nishizaki visited public libraries in Tokyo for three years to look for records about the massacre. The

three-volume collection carries about 900 testimonies, including some 300 eyewitness stories.

The testimonies are horrible. They say, “Soldiers tied and lined up Koreans by the tens and shot them

with a machine gun. They spread those who didn`t die yet on railways and poured kerosene over to

burn them alive.”; “Vigilantes brought several Koreans, who were tied in knots, to piers of a bridge

and killed them with Japanese swords or bamboo spears. They even stabbed a pregnant woman to

death. As far as I remember, about 30 Koreans were killed that way.”; and “They didn`t even carry

the dead bodies of Koreans on stretchers. Two Japanese men hooked the ankles of the dead bodies to

carry to a police station, as if transporting big fish in a fish market.”

The Kanto earthquake, measuring 7.9 on the Richter scale, killed more than 100,000 people. In the

wake of the catastrophe, the Japanese military and police found an outlet for public unrest and

discontent among Japanese society in the ethnic Korean community. They spread groundless rumors,

such as “Koreans have been poisoning the wells,” and openly massacred Koreans.

It was a case in which Japan`s state power was deeply involved. Some of the testimonies say, “I was

asked by the [Tokyo] Metropolitan Police Agency to alert people about a riot by Koreans” and “Police

officers went around announcing over loudspeakers that ‘there was an attack by Koreans just now.’”

Over 6,000 Koreans are known to have been killed at the time. But the figure is nothing but

guesswork. Data from the German Foreign Ministry, which has been discovered recently, testifies

that about 23,000 Koreans, triple the number that has been so far known, were killed after the quake.

Nonetheless, no Japanese military or police officer has been punished. Korean victims have never

been identified, nor have their remains been collected properly.

This is because the Japanese government has whitewashed the truth. However, the Korean

government has so far done nothing mentionable either. No effort has been made since the Korean

Provisional Government in Shanghai filed a protest and demanded an apology from Japan

immediately after the massacre.

Digging up the tragic history is not aimed at inciting conflict, but seeking healing and awakening.

The Japanese government should take the initiative in finding the truth about the mass murder and

pledge not to repeat a similar atrocity. Covering up and turning away from the truth will never cure

wounds. Tokyo should make clear that it takes responsibility for the massacre and apologize for it.

We also want to ask our government if it will just sit by indefinitely, while leaving the resolution of

the matter in the hands of civilians and academics at home, and Japanese civic groups and

conscientious citizens. It should demand that the Japanese government apologize and identify and

collect the remains of Korean victims. We should bear in mind that nobody will come forward to pass

on the lessons of history unless we ourselves pay attention and exert efforts.

[ August 30, 2013 ]



- Expand the Horizon for Foreign Direct Investment

- [DEBATE] Is Corporate Tax Hike Necessary?

- China and Korea Afflicted with Similar Diseases

- ‘Japanization’ of Southeast Asia

- Racial Diversity Key to Creative Economy

- Perception Gap on Middle Class

Expand the Horizon for Foreign Direct Investment

Ahn Choong-yong Chair Professor, Graduate School of International Studies Chung-Ang University

At a time when the Korean economy needs to create more jobs, it shows few signs of recovery.

Instead, there are signs that it is slipping into a low-growth trap. The economic slump combined with

the languishing property market is making household debt, standing at 1,000 trillion won, a ticking

time bomb.

Deteriorating external conditions compound the woes. The Chinese economy, for which a quarter of

Korean exports are bound, is showing financial weaknesses and its growth has slowed. The United

States has extended its quantitative easing again as recovery is not assured. Japan`s “Abenomics”

adds to the Korean economy`s uncertainty. With its fiscal crisis persisting, the European Union is in

a slow-growth mode.

The Korean economy will be able to pull itself out of low growth by boosting investment. Foreign

direct investment can play an important role in this regard.

During her visit to China, President Park Geun-hye toured the construction site of a Samsung

semiconductor factory in Xian. The construction began with an initial investment of US$2.3 billion

but will cost a total of $7 billion. Samsung`s investment is aimed at underdeveloped inland regions

of China, which have high-growth potential. In St. Petersburg, Russia, Hyundai is building an

assembly plant with an annual production capacity of 200,000 vehicles.

Considering the high labor cost in Korea and the need to establish a borderless chain of supply to

meet global demands, there is no reason to complain about these strategic investments abroad. It is

even desirable for large corporations to go offshore along with small and medium-sized enterprises,

providing employment opportunities to Koreans, and help them globalize themselves.

To compensate for the slowdown in domestic investment, Korea needs to actively induce new foreign

direct investments and encourage foreign businesses having already invested here to make additional

investments.

Last year, Korea`s outbound and inbound foreign direct investment reached $23 billion and $10.3

billion, respectively, creating a deficit of more than $12 billion. The imbalance was the continuation

of a recent trend: from 2007 to 2011, the nation`s inbound FDI amounted to $34.7 billion, less than

30 percent of its investments abroad, which amounted to $117.4 billion.

An increase in foreign direct investments creates additional jobs, boosts growth, helps accumulate

capital, brings in technology and helps globalize the Korean economy. A good example is Solvay, an

international chemical and pharmaceutical group based in Belgium, which is set to open a global

research and development center at Ewha Womans University, employ more than 100 experts and

start work on rechargeable batteries. It plans to provide domestic companies with parts and start

exports. As such, foreign direct investments contribute to the creative economy (that is being pursued

by President Park Geun-hye`s administration) and provide high-quality jobs.

The Korean government has recently designated two new free economic zones, in addition to the six

existing ones, to encourage foreign direct investments. But much of the space in the existing free

economic zones is left vacant because of a variety of regulations and a shortage in the supply of

qualified manpower. For example, it is not permitted to establish for-profit educational institutions

and hospitals. A decision not to permit the establishment of a casino exclusively for foreigners has

also made it impossible to build large-scale resorts as an MICE (meetings, incentives, conferences

and exhibitions) industry.

Free trade agreements with the United States and the European Union will have only a limited impact

on growth if they fail to help bring in $3 billion or more in annual FDI. Even Japan, which has a

competitive edge in manufacturing, is pushing for foreign direct investments under Abenomics by

creating special economic zones. But in Korea, the Fair Trade Act prohibits great-grandchild

subsidiaries of Korean companies from making joint venture investments with foreign companies,

creating a major obstacle to FDI.

A revision bill pending at the National Assembly would remove the barrier to as much as 2.3 trillion

won in 50/50 joint investments, which would create many jobs and provide a great deal of growth

momentum. The National Assembly should place itself at the forefront of job creation by passing the

bill. The ruling and opposition parties will have to take bipartisan action.

[ Korea Economic Daily, September 3, 2013 ]



[Debate] Is Corporate Tax Hike Necessary?

[PRO] Kang Byung-goo Professor, Department of Economics Inha University

[CON] Kim Chung-ho Distinguished Professor Graduate School of Economics Yonsei University

The government`s plan to raise the tax rate on individual income is facing so much resistance from

taxpayers that it may fail to secure enough additional revenue for its social welfare objectives. This

has led to calls for corporate tax hikes. Advocates say that Korea`s corporate tax rates are lower than

those of foreign countries and that increases would help smooth out wealth distribution. Opponents

argue corporate investments, economic growth and the nation`s tax base would be jeopardized.

[PRO] Corporate Tax Should Rise

During Korea`s rapid economic development, family-owned conglomerates (chaebol) spearheaded

investment and employment thanks to government financial support and a business-friendly tax

structure. But export-led growth has not sustained high levels of job creation and economic

polarization has worsened. The number of employed people per 1 billion won in value-added output

fell from 156 in 1970 to 19.4 in 2012.

Despite the nation`s continuous “growth without employment,” the government has stuck to the low

corporate tax rates under the pretext of promoting corporate investments and employment. Some

people say that low corporate tax rates are inevitable due to corporate double taxation, departure of

foreign investment and the high percentage of corporate taxes in government coffers. But double

taxation was offset by a deduction on dividend income and tax incentives are offered to foreign

investors for a certain period of time.

The high level of corporate tax contributions is due to the large tax base of the business community.

The tax base has been enlarged by a swelling concentration of economic power, uneven income

distribution and the difference in the maximum tax rates on personal income and businesses. In other

words, the high amount of corporate taxes that the government collects is not material to the actual

degree that taxes burden companies.

The maximum tax rate on corporations is 24.2 percent if local assessments are included. That is

slightly above Britain`s 23 percent and Sweden`s 22 percent but far lower than Japan (37%), the

United States (39.1%), Germany (30.2%) and France (34.4%). Considering the modest amount that

the chaebol must pay into the national pension fund and various tax exemptions, their tax burden is

much lower than perceived.

According to World Bank data, Korean companies` ratio of corporate tax and social security

contributions to profits was 29.8 percent in 2011, substantially less than the OECD average of 42.5

percent. The corresponding figures for China, Japan, the United States, Germany, France and Sweden

were 63.7 percent, 50 percent, 46.7 percent, 46.8 percent, 65.7 percent and 53 percent, respectively.

Korean companies` total tax expenses are far from high.

Therefore, it is groundless to say that the current corporate tax burden deters corporate investment

and accelerates capital outflows. In fact, there is little evidence that corporate tax cuts of the Lee

Myung-bak government actually led to more investments and employment. But the reductions

certainly weakened the government`s tax base as the Lee administration failed to overhaul the tax

system and overwhelmingly favored large conglomerates.

According to data released by the National Tax Service, the share of large conglomerates in business

tax exemptions and reductions rose from 62 percent in 2008 to 71 percent in 2011. The top one percent

of companies accounted for 78.1 percent of the 9.3 trillion won in corporate tax cuts and exemptions

in 2012.

In contrast, big businesses` contribution in job creation and investment growth was very

disappointing. The share of companies with over 300 employees in the nation`s total labor force

dropped from 8.4 percent in 2009 to 8.3 percent in 2012. Tax breaks have produced cash hoards, not

investments. As of March 2012, the cash held by the 10 largest conglomerates was as much as 183

trillion won.

Chaebol reluctance to increase investments is unrelated to corporate tax rates. They hesitate because

of fragile domestic demand and uncertainty in the protracted global economic slump. It is necessary

to overhaul the entire wealth and income redistribution system to facilitate higher domestic demand

and broader sentiment that the benefits of economic growth are shared evenly.

In reality, gaps are widening between large conglomerates and small and medium-sized enterprises

and between regular workers and non-regular workers. Social bipolarization has been deepening. Tax

increases for large conglomerates and the government`s aggressive wealth redistribution policy are

reasonable alternatives that will boost domestic demand and promote stable economic growth.

[CON] Tax Increase to Deter Investment, Growth

Korea`s tax reform debate has now spilled over into corporate tax rates. Some people argue that the

government should try to meet rising social welfare costs by hiking tax rates on conglomerates and

the rich, instead of increasing the tax burden on the middle class. But such an argument is absolutely

wrong.

Ordinary people may be pleased if large conglomerates alone are forced to shoulder the burden of

financing social welfare programs. But the corporate burden will eventually boomerang on the middle

class and low-income working people. First of all, stock investors and corporate employees will suffer

losses.

Let`s suppose that conglomerates, like POSCO or KT Corp., are hit with more taxes. As a result,

dividends to their shareholders will be cut, with their stocks coming under downward pressure.

Employee bonuses and salary bumps will be lower the following year.

The situation is no different at chaebol, where owners control 99 percent of their conglomerate with

1 percent stake. It means that chaebol owners can claim only 1 percent of corporate profits despite

their managerial control. Likewise, chaebol owners are responsible for only 1 percent of corporate

tax regardless of tax increases. The burden of the remaining 99 percent of tax should be shouldered

by other shareholders and employees.

A much bigger problem is the reduction of corporate investment. Increases in corporate taxes will

gradually reduce investment and productivity, resulting in a drop in job creation and other adverse

effects. In this regard, as department stores and traditional markets are equally vulnerable to the pain

of low growth, ordinary working people cannot avoid the pain of less investment.

Some people contend that corporate tax hikes have nothing to do with investments. But that`s wrong.

Extensive research by economists has confirmed a link. Moreover, the negative effects tend to be

magnified in places of high capital mobility because return on capital is influenced even by minor

changes. The volume of the tax-related investment reduction is particularly large at enterprises that

have a large number of foreign investors and raise capital in the global market.

The phenomenon also applies to a nation. Tax-related decline in business investment tends to be more

pronounced in a small country because of high capital mobility. Such a phenomenon is an important

consideration in designing the tax code. In a small nation, tax revenues should be increased by means

of consumption and income taxes, instead of corporate taxes, to lighten the impact on economic

growth.

Sweden is a good example. The tax rate of the northern European nation was 46.4 percent in 2009,

about 1.8 times more than Korea`s 25.6 percent. However, Sweden and Korea have the same

corporate tax rate: 22 percent, excluding local taxes. The amount of corporate tax collected in Sweden

is smaller. Korea`s percentage of corporate tax revenues to the gross domestic product is 4.2 percent,

compared with Sweden`s 3 percent.

The resources for Sweden`s costly welfare services come from value-added tax and individual income

tax. The maximum rate in Sweden`s income tax is 57 percent, about 1.5 times that of Korea. In the

value-added tax, Sweden`s maximum rate is 25 percent, about 2.5 times that of Korea. The share of

consumption and individual income taxes in Sweden`s tax revenues is high, as the country is well

aware of the negative impact of corporate taxes on investments. If the Swedish people had not

accepted the high consumption and income taxes, the nation`s universal welfare services may have

not been possible.

In Korea, we are calling for universal welfare services and confining tax hikes to conglomerates and

the wealthy alone. But increasing the tax burden of Korean conglomerates will only produce more

adverse economic effects. In a sense, corporate tax hike can be seen as immoral. If we want universal

welfare services, we should accept universal taxation. Otherwise, selective welfare services are

inevitable.

[ The JoongAng Ilbo, August 17, 2013 ]



China and Korea Afflicted with Similar Diseases

Song Hee-young Chief Editorial Writer The Chosun Ilbo

“When they drink from a well, Chinese people do not forget to remember its diggers.” It is a remark

emphasizing the faithfulness of Chinese people ― one that Deng Xiaoping often repeated to Korean

and Japanese politicians and businessmen. It embodies a promise to always acknowledge those who

helped China advance its economy.

Did he think of this virtuous Chinese tradition when he visited Panasonic`s factory in Osaka in

October 1978? After a tour of the renowned Japanese electronics factory, Deng said that he better

understood modernization.

At a plenum of the Central Committee of the Communist Party of China two months later, Deng

declared a policy of reform and opening-up. It did not take long before Panasonic set up a factory in

Beijing to produce cathode ray tubes for color televisions. Since then, the factory has symbolized

Japanese-Chinese economic cooperation.

When dissidents staged protests in the Tiananmen Square, the first democratic movement in China

under communist rule, Western news media chided Panasonic for maintaining operations at its Beijing

factory. Panasonic did not pay attention to the criticism. It appeared to focus only on China as a good

place to do business but nothing else.

However, last fall, 34 years after Deng`s factory visit in Osaka, the well digger became a victim. As

China and Japan feuded over the territorial rights to the Diaoyu Islands, Chinese demonstrators

inflicted heavy damage on Panasonic factories in China.

The Chinese economy has developed at a breakneck pace. China has changed so much that it does

not feel any remorse in throwing indebtedness and thankfulness out of the window. Now, its reform

and opening-up policy is heading for a major challenge. Experts talk about a Chinese crisis. They are

wondering if China will falter as the United States did five years ago or engineer a speedy recovery

from the flu.

The early symptom a bubble economy shows when it is collapsing is unmistakable in any of the

Chinese cities. There are many “ghost towns” in China ― testimony to a deep slump in the property

market. Investments Chinese financial institutions made in tourist resorts and infrastructure projects

with money they borrowed at high interest rates have turned sour. This is a reminder of Korean

savings banks that went bankrupt because they issued loans for too many ill-fated projects.

Hundreds of years of capitalism show that bubbles cannot be avoided. The reason is that no power

whatsoever can corral human desire. It is self-aggrandizing people that are close to the power who

fuel property bubbles.

The Chinese bubble is also a creation of wealthy and powerful people. The Xi Jinping-Li Keqiang

leadership will find it extremely difficult to wield the sword of reform against the family-like forces.

This is not common only among countries that have experienced economic crises due to property and

financial bubbles bursting. When a bubble collapses, all governments repeat policy failures regardless

of their acumen.

Hank Paulson, former U.S. secretary of treasury said that in 2008, when the economy was thrown

into a tailspin in the wake of the Lehman collapse, he prayed that “God save the United States.” The

United States and European countries, which had previously laughed at Japan for its failure to

properly respond to a bubble, had the same failure. It is doubtful that policymakers will keep China

from following in their footsteps.

China is confronted by colossal overcapacity that its reform and opening-up policy has produced for

more than three decades. As such, it will not be easy for China to extricate itself from the maelstrom.

Should it emerge unscathed from the crisis this time, there will be a strong popular demand for

democracy. Given a wide income gap and fierce labor strife in China, the days appear to be numbered

for the country`s one-party rule.

During the past 25 years, Koreans have learned the price of democracy firsthand amid constant

political struggle. Japan joined the ranks of industrialized nations when it turned itself into a

democracy and opened up its economy in the 1960s and the 1970s. But Japan has been stuck in a

slump for the past 20 years because it has not completely opened up its financial and foreign exchange

markets. It has yet to surmount the high yen that the 1985 Plaza Accord engendered.

Korea and Taiwan are neck and neck in promoting democracy and opening up their economies. Their

processes are not finished. It is the same with Japan. No country can become truly advanced when its

democracy or economic openness is half-baked.

China has only started now to follow in the footsteps of the Asian early starters. Few would claim

that China could join the ranks of advanced countries by treading on a different path than its

neighbors. Korea will continue to be afflicted, at least for some years, with a disease similar to one

China is suffering. It will have to prepare to meet the menacing waves that will rush to its shores from

China.

[ August 24, 2013 ]



‘Japanization’ of Southeast Asia

Park Jai-hyeon Chief Editorial Writer The Maeil Business Newspaper

Amid growing concerns about Japanese Prime Minister Shinzo Abe`s right-wing political agenda, his

latest acts of economic diplomacy are also noteworthy. Abe appears to harbor an ambition to turn

Southeast Asia into Japan`s “economic territory.” In fact, he went to Southeast Asia soon after his

Liberal Democratic Party won an overwhelming victory in the upper house elections on July 21. He

visited the Philippines, Malaysia and Singapore from July 25 to July 27.

It was Abe`s third trip to the region since he took over as Japan`s prime minister in December last

year. His trip was aimed at extending tens of billions of yen in special loans to help the Southeast

Asian nations rebuild their roads, ports and other infrastructure destroyed by natural disasters. His

real intention was to help private Japanese enterprises wishing to participate in the infrastructure

projects, including Malaysia`s water supply and sewer system refurbishment and high-speed rail link

with Singapore.

Abe also helped Southeast Asia build its foreign exchange safety net by taking advantage of Japan`s

foreign currency reserves of about US$1 trillion. He offered helping hand to Southeast Asian

countries concerned about a sudden exodus of foreign capital when the U.S. Federal Reserve ends its

quantitative easing.

Japan has concluded new currency swap deals worth several billions of dollars with Malaysia,

Singapore and Thailand. Japan and Indonesia agreed to double the volume of their currency swap

arrangement to $24 billion. The Philippines` currency swap arrangement with Japan has also risen 8

to 9 percent to $10 billion.

The deals mean that Japan will lend sufficient dollars to the Southeast Asian nations to help them

stabilize their foreign exchange rates if they slip into a foreign exchange crisis. Japan has established

a direct foreign exchange supply system with the region, in addition to the Chiang Mai Initiative, a

multilateral currency swap arrangement among the 10 members of the Association of Southeast Asian

Nations (ASEAN), Korea, China and Japan.

It is bitter to see such massive currency swap deals between Japan and Southeast Asia less than one

month after Seoul and Tokyo agreed to end their bilateral currency swap contract that had once

reached $60 billion. Abe is calling for Asian support for a major U.S.-led trade pact known as the

Trans-Pacific Partnership, or TPP. The TPP aims to create a regional free trade agreement involving

12 Asian and Pacific Rim countries by the end of this year. Japan`s strategy is to seize the initiative

in the new Asian economic bloc and at the same time win the favor of the United States.

Abe`s diplomacy is also aimed at helping Japan realize its dream of becoming a military power by

winning over Southeast Asian countries. He revealed such intentions during his latest overseas trip.

While meeting with leaders of Southeast Asian nations, Abe stressed the need to revise Japan's Peace

Constitution and exercise its right to collective self-defense.

Japan has agreed to donate 10 patrol boats to the Philippines, which is locked in a territorial dispute

with China. Southeast Asia is a strategically significant place where the economic interests and

foreign policy strategies of the United States, China and Japan clash. U.S. President Barack Obama`s

first overseas destinations after his reelection last year were Myanmar, Thailand and Cambodia.

While global leaders are crisscrossing Southeast Asia, Korean leaders appear to be too complacent.

President Park Geun-hye should also embark on a swing through Southeast Asia. She reportedly plans

to visit Britain in November. Economically, however, Asia is more important. Asia is Korea`s second-

largest export market after China. The share of 10 ASEAN members in Korea`s export topped 15

percent, or $130 billion, last year, compared with North America`s share of 11.5 percent.

Korean investment into Southeast Asia is also rising rapidly. The share of ASEAN in Korea`s foreign

direct investment (FDI) stood at 17.3 percent, far higher than China`s share of 14 percent. Asia holds

the key to Korea`s goal of reaching $2 trillion in annual trade by 2020. It is natural to pay growing

attention to Asia, which is geographically close and has enormous growth potential.

Japan is pouring money into Southeast Asia, as European enterprises have been crippled by the

eurozone debt crisis. About $400 billion worth of Japanese capital is estimated to have recently

flowed into Asia’s emerging countries. Japan is rapidly expanding its economic influence in Southeast

Asia by means of loans and FDI, rather than stock holdings. In response to the spread of hallyu, or

the Korean Wave, Japan is also seeking to revive its cultural glory of the past epitomized by the

success of “Pocket Monsters,” a popular television cartoon.

There is another reason for Korea to pay greater attention to Asia. That is because Asian countries

will be at the greatest risk if the U.S. Federal Reserve begins to taper its stimulus activity. In 1997,

Korea paid a dear price after being unexpectedly infected by the Asian financial crisis. We should

build firewalls to prevent a repeat. If Asia suffers another financial crisis, we should try to seize

opportunities to acquire viable Asian enterprises through mergers and acquisitions. It is hoped that

President Park will embark on economic diplomacy in Southeast Asia to counter Abe`s Asian

diplomacy.

[ August 8, 2013 ]



Racial Diversity Key to Creative Economy

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

Cupertino, a Californian city, is home to the headquarters of Apple. Indian and Chinese engineers

who are at the vanguard of Silicon Valley`s technological revolution are working and living together

there. The city is also close to Stanford University, where an interesting mix of Californian nature

and Asian culture can be found.

Silicon Valley, the technology mecca, has been built by talented engineers from all over the world

competing and cooperating with each other. More than half of Silicon Valley startups, including Intel,

Yahoo, eBay and Google, were established by immigrants. Cultural diversity can be found throughout

the city`s schools, stores and streets, as well as its enterprises.

The circumstances are similar in Israel, a role model of creative economy. Following the collapse of

the Soviet Union in the early 1990s, Israel admitted about 850,000 new immigrants. More than 40

percent of the new arrivals were college professors, scientists and engineers, who had abundant

experience in research and development. They have eventually played an important role in Israel`s

economic development. Besides Hebrew, many foreign languages can be heard on the streets of Tel

Aviv, the capital of Israel.

It is surely no accident that Silicon Valley and Israel have become global hi-tech hotbeds. They

opened their doors to an international array of talented people. Above all, an atypical socio-cultural

ecosystem, a culture of respecting the value of diversity, is alive in Silicon Valley and Israel.

In the United States, diversity is an important criterion in college admission screening and corporate

hiring. Of course, basic knowledge and skills are prerequisites. But Americans seem to firmly believe

that having a variety of backgrounds and experiences can help hatch new ideas and innovative

technologies. That`s why they say that culture accounts for 90 percent of the innovation in products

from Silicon Valley, with technology claiming just 10 percent.

Scott Page, a professor of economics at the University of Michigan, says in his book, “The

Difference,” that progress and innovation may depend less on lone thinkers with enormous IQs than

on diverse people working together and capitalizing on their individuality. He insists that diversity

yields superior outcomes in solving difficult problems, in particular. The American scholar says that

the power of diversity is essential to improving enterprises, schools and society.

A separate study conducted in Germany also proved that regions boasting a higher level of cultural

diversity produce higher levels of innovation and research and development outcomes.

The Korean people should also change their perception of differences and the value of diversity.

Foreign workers should be no longer be regarded simply as human resources. They should rather be

viewed as an important asset who will eventually bring about innovations by promoting the cultural

diversity of Korean society. It is a very urgent but difficult task to secure diversity in Korean society,

which is long accustomed to the notion of a single-race nation.

Recently, the number of foreign students and professors is rising at Korean colleges and universities,

while Korean enterprises are actively hiring foreign professionals. The Korean government is now

opening its doors to foreigners, though in limited numbers, and has selected multiculturalism as one

of its key policy objectives. But Korean colleges and universities are striving to lure more foreigners

because university ranking agencies regard the ratio of foreign students and professors as a key

criterion of school internationalization.

The Korean government`s multiculturalism policy is largely focused on assimilating foreigners into

Korean culture and systems. Foreigners account for nearly 3 percent of Korea`s population, but they

are seldom regarded as a valuable asset, although the importance of Indian engineers has been

growing recently.

Reports say that one of the biggest challenges facing foreign residents in Korea is the lack of

understanding in Korean society about their food, religion and culture, not technological or language

problems. It is unlikely that talented people would flock to problematic enterprises and countries that

are unable to embrace differences in skin color and culture. Under these circumstances, even if some

foreigners happen to be hired, they may not be able to fully display their ability.

A nation`s global competitiveness can hardly be upgraded, if its society is reluctant to respect

differences and understand other groups. Colleges, in particular, should help their students experience

the power of diversity through their regular education curriculum and extracurricular activities.

Colleges are the best places where various groups of students can meet, produce new ideas and mix

with each other. It is no accident that many innovative information technology ideas associated with

Microsoft, Yahoo, Google and Facebook were all born out of U.S. college campuses, where diversity

is embraced.

Diversity should be added to the curriculum of natural sciences and engineering colleges. In addition,

empirical researches should be carried out to examine how cultural diversity can bring about

technological innovations in Korean society. Based on the outcomes of such empirical studies, the

government and private enterprises should prioritize diversity in personnel hiring and pursuit of new

projects. They should also systematically support the value of diversity.

An appropriate ecosystem should be hurriedly built in order to help the Park Geun-hye government`s

creative economy initiative succeed. Creativity and innovation can hardly be expected, as long as

pure bloodedness and sense of cohesion bound by regionalism and school ties are prevalent. The key

to the creative economy ecosystem lies in the creation of a flexible culture of accommodating a broad

spectrum of talents, as well as the creation of an environment where diverse talents blend together to

generate innovations.

[ The Dong-a Ilbo, August 27, 2013 ]



Perception Gap on Middle Class

Kim Kyun-mi Deputy Managing Editor The Seoul Shinmun

Do you consider yourself middle class? Do you belong to seomin (low-income working people)?

These were probably among the most frequently asked questions after the Korean government on

August 8 announced a tax reform plan for 2014, which effectively called for increasing taxes on high-

and middle-income earners.

The controversy has somewhat died down, as the government raised the baseline annual income

dividing the top and mid- to low-income earners from 34.5 million won (US$31,900) to 55 million

won the following day. Despite the change, however, the government and the public seem widely

divided in their perception of income groups.

I don`t have the slightest intention to reignite a debate over the definition of middle class that gripped

the nation over the past week. I would rather focus on the perception gap in the criterion of middle

class that has yet to be narrowed despite the upward adjustment of the baseline income.

In a poll of 215 citizens conducted by the Seoul Shinmun and recruitment information agency Job

Korea on August 12-14, 31.2 percent said 55 million won is the dividing line between the high- and

middle-income brackets. Another 20.9 percent of the respondents cited 70 million won, while 8.8

percent pointed to 80 million won. Asked about their own income level, the majority of the

respondents said people earning less than 60 million won a year are considered seomin. They also

responded that people earning more than 60 million won annually belong to the middle class.

The survey results were in line with the outcomes of a separate poll conducted last year by an

economic think tank, which found 50.1 percent of the Korean people put themselves in the low-

income bracket. In contrast, the government said that 67.7 percent of people belonged to the middle

class as of 2011.

It is generally believed that society becomes more stable and achieves sustainable development, when

the middle-class population, the backbone of society, increases. That`s why the incumbent Korean

government aims to lift the ratio of the middle class to 70 percent by 2017. Korea`s middle class ratio

had fallen from 75.4 percent in 1990 to 71.7 percent in 1998, when the nation was hit by a foreign

exchange crisis. In the aftermath of the credit card debt crisis in the early 2000s and the 2008 global

financial crisis, the ratio dived to 67.7 percent in 2011.

It won`t be easy for the government to attain the 70 percent middle class goal, as the economic slump

has been protracted and household debts are now snowballing. Global management consulting firm

McKinsey & Company said in a report issued in April that 55 percent of Korean middle-class families

are having a tough time making both ends meet as they are saddled with debts. McKinsey then warned

that the Korean economy will be trapped in a long-term slump unless its household debt and private

education expense problems are resolved.

Regardless of government statistics on the size of middle class, the nation`s “poor” middle-income

families can hardly make ends meet without the aid of overdraft account. The government`s tax

reform is largely aimed at increasing its tax revenues to finance social welfare projects. But the

government`s obsession with numbers seems to reflect its insensitivity to public sentiment.

The sense of belonging to the middle class and the happiness index are comparative and subjective.

The gap between government statistics and the public perception of middle class seems to be related

to people`s sense of relative deprivation. The nation`s income gap has widened after several economic

crises. Korea`s Gini coefficient, which is commonly used as a measure of income inequality,

improved slightly from the previous year to reach 0.30 last year but the figure was still at a high level.

A recent report released by the Organization for Economic Cooperation and Development (OECD)

showed that Korea`s top 10 percent group earned 10.5 times more than the bottom 10 percent in 2010.

Korea`s income inequality was higher than the OECD average of 9.5 times and ranked ninth among

the organization`s 34 members. In contrast, Korea ranked 24th among the OECD members in terms

of the happiness index. In a similar United Nations survey, Korea ranked 56th out of 156 member

states.

Some people say that Korea`s definition of middle class is overly confined to monetary levels, noting

that France, Britain and the United States among others attach importance to the individual`s ability

to enjoy various activities such as culture and voluntary service. Though it may seem unrealistic for

now, the perception of middle class can be changed if the sight of Korean families dining together

and spending weekends together is seen as routine, not a luxury.

The government`s comprehensive measures that call for creating more quality jobs to increase the

middle class, strengthening social safety nets for distressed middle-class households and revitalizing

social dynamics seem to be more daunting than expected. One of the solutions is to gradually resolve

realistic problems facing the low- and middle-income brackets. And sky-high private education costs

and household debt are among the major problems.

[ August 17, 2013 ]



- The ‘Give Up Three’ Generation and New Marriage Process

- Korean Universities Need to Share Cultural Diversity

- Country Infested with ‘Heat Wave Zombies’

- [DEBATE] Are Free School Lunches Sustainable?

The ‘Give Up Three’ Generation and New Marriage Process

Hahm In-hee Professor of Sociology Ehwa Womans University

The young generation is called a “give up three” (sampo) generation, as many of those in the group

are said to easily give up employment, marriage and having children. During an interview with a

young man in his late 20s, I heard an interesting story about those in the group who want to marry.

A man and a woman, when thinking about getting married, arrange an introductory meeting for their

parents. If they are favorably regarded by each other`s parents, the man proposes. The new process

may look strange to those who are familiar with a process in which a marriage proposal is followed

by a meeting of parents. But seen from the perspective of the young generation, it is the best and

wisest method. Pragmatism works when they decide they will not get married if there is parental

opposition.

Many of those in the young generation cannot afford to pay for the wedding expenses and rent a home

without assistance from their parents. Therefore, they have to respect the opinion of their parents as

much as possible. So, a marriage proposal comes only after the parents meet.

Parents who will pay almost all of their child`s marriage expenses may feel safer with an introductory

meeting preceding a proposal. Instead of speculating and worrying what kind of family their

prospective in-laws are, they can find out about them through an introductory meeting. Those who

cannot afford to help with marriage expenses cannot have much to say about the prospective marriage.

It is noteworthy that a marriage proposal that follows an introductory meeting of parents is evolving

into an expensive and luxurious event. It costs hundreds of thousands of won per hour to those who

wish to rent a romantic place in which to make a marriage proposal.

Those who got married with no formal, pompous marriage proposal may be irked by the “unbearable

lightness” in their children, who come up with all types of celebratory day from the moment they

meet their prospective spouses.

In addition to observing Valentine`s Day, White Day and other celebratory days of dubious origin,

some young men and women celebrate the day marking one month of their meeting, the 100th day of

their meeting and even the 22nd day of each month. They hold festive events as if they represent their

deepening relationship. But, in reality, they may be afraid of being deeply involved with each other

as they do not know how to develop their romantic love into mature mutual trust.

Many of them, who confess they harbor no firm belief that they will remain married with one person

“till death do us part,” may have all the more desire to give a special meaning to their relationship

with their loved one and confirm that it is based on a solid foundation. Yet, it is undeniable that the

meaning and value of their love are shaped by the value of material that is exchanged and that the

level of influence parents may exert on their children is determined by the amount of wealth they can

provide.

In these difficult times, the relationship between loved ones, a husband and a wife, and parents and

children take on a special meaning, probably because they are the foundation for altruism,

unconditional love for others and sacrifice and devotion for the minorities. It may not be necessary to

give too much meaning to a marriage proposal that comes after an introductory meeting of parents.

But we will have to guard against excessive materialism lurking in the new marriage process.

[ The Segye Ilbo, August 12, 2013 ]



Korean Universities Need to Share Cultural Diversity

Rennie J. Moon Professor of Research Methods Underwood International College, Yonsei University

I grew up in an environment where people had different looks and cultures from mine. My family

was the only Asians in our neighborhood, mostly inhabited by whites, and at school, whenever I met

new teachers and friends I had to explain that I came from Korea. Raised and educated in the United

States but working in Korea now, I`m having still new experiences as a minority.

As a Korean-American, I look similar to Koreans but the cultural differences I`m experiencing are

not ignorable. As such, I suppose the sense of heterogeneity felt by foreign residents in Korea, where

people have long cherished the notion of racial homogeneity, would be much greater than mine.

Each semester, I have several foreign students in my class. However, most Korean students don`t

show much interest in them. As a professor, I am very happy to have foreign students in my class.

From them, I can find new perspectives and different opinions from those of Korean students.

For example, when we discuss Korea`s immigration policy in class, Korean students mostly talk about

Korea. However, with students from Singapore, Hong Kong and Vietnam participating in the debate,

their perspectives are widened because they can discuss the issue from diverse comparative points of

view, including their own experiences. In this way, I think, they can learn how to share different

opinions.

Yet, Korean universities` understanding of cultural diversity is far from enough. Cultural diversity

can be divided into the following four types.

The first one is structural diversity, which means universities admit more students with diverse

personal backgrounds (learning methods, experiences, and so on) and social differences (birthplaces,

races, etc.). Next is the diversity of curriculum, which requires more regular courses to deal with the

theme of diversity or teaching methods to promote diversity. Thirdly, interactive diversity is to

encourage exchanges among people with different cultural backgrounds. Lastly, institutional diversity

refers to the institutionalization of programs which can enhance the value of diversity.

For the past 10 years, Korean universities have achieved remarkable growth as far as structural

diversity is concerned. The number of foreign students attending Korean universities, which stood at

only 12,314 in 2004, soared to 86,878 in 2012 and this is largely attributable to the “Study Korea”

program implemented by the Korean government.

However, diversity in the other three types still lags far behind. It is not enough to enhance structural

diversity alone for cultural exchanges to be carried out properly at universities. Only when the above-

mentioned four types of cultural diversity interact and harmonize with each other, students can acquire

the ability to communicate with people of different cultures, which is essential in this globalization

era.

To this effect, research on cultural diversity needs to be further invigorated with related regular

curriculums and extracurricular programs expanded as well. In addition, continued interest and

support by the government and universities are required for these initiatives to be institutionalized.

Attracting foreign students is not enough to achieve the globalization of higher education in a genuine

sense. Now is the time for Korean universities to pour more energy into fostering global talents

capable of successful communication with people of diverse cultures.

[ The Dong-a Ilbo, August 9, 2013 ]



Country Infested with ‘Heat Wave Zombies’

Kwon Seok-cheon Editorial Writer The JoongAng Ilbo

Drops of sweat roll down the forehead and beneath the chin, and the heat wave stifles my neck. Now,

everything bothers me so much that I am even sick of Crayon Pop`s “Bar Bar Bar” or their so-called

“series five-cylinder engine dance.” Yet, we have to endure and finally survive. Anyway, this is not

the first time that we have been asked to confront a national crisis with our indomitable patriotism

and willpower.

So, it was last Sunday (August 11) that the “war on power shortage” was declared. Trade, Industry

and Energy Minister Yoon Sang-jick gave a news conference after finishing an emergency meeting

to discuss ways of tackling the potential power shortage at the headquarters of Korea Electric Power

Corporation (KEPCO) in Seoul. At the news conference, Minister Yoon announced, “Now, we are in

a very dangerous situation. With only one of power generators going out of order, we would have to

cut off the power supply by rotation.”

He went on, “Whenever the nation was in a crisis, the Korean people always trusted the government

and provided help. Today I urge you to pull together once again and overcome this crisis.”

As such, the “dreadful Monday, Tuesday and Wednesday” began. Power switches of air conditioners

at about 20,000 government offices were turned off. In darkened rooms, government officials blink

their sunken eyes toward computer monitors and then stagger along dark hallways in search of airy

spaces. Large corporations, which joined hands for the nationwide power-saving drive to overcome

the crisis, are also enduring delays in production. Office workers` dress shirts became soaked in sweat

long ago.

Social network services (SNS) have also turned into “heat piercers,” instead of “snow piercers” as

one famous film`s title goes. They are overflowing with pathetic pleas such as “Hot, sore eyes and

can`t focus on work,” or self-deprecating messages like “zombies, who got prostrated by the heat and

became speechless” and “violations of human rights.” Some others try to cool down the heat with a

cynical call, “Restrict ads for air conditioners, which make us desire cool air!”

This is definitely a situation in which the state is controlling not only the bodies but also the souls of

its people. Then, where on the earth did the “largest power crisis of this summer” (as Minister Yoon

Sang-jick put it), which instantly turned workers into “heat wave zombies,” stem from?

The biggest responsibility lies with the government, which failed to estimate changes in the demand

for power accurately. At the end of 2006, the government estimated the maximum demand for electric

power in 2012 at 67.12 million kW, but it was actually 74.29 million kW. However, the main culprit,

which aggravated this 11 percent miscalculation into the crisis of a blackout (massive power outage),

was the corruption related to nuclear power plants.

As it was revealed that thousands of substandard parts with forged safety certificates were installed

in reactors, three nuclear reactors including Shin Kori reactors 1 and 2 were shut down. If these

reactors had been in operation and produced 3 million kW of electricity, we wouldn`t have had to be

so anxious about the power supply. So far, prosecutors have indicted about 90 people for irregularities

concerning the nuclear power plant scandal and of them 26 were arrested.

About 600 million won of cash was found at the houses of a senior official of Korea Hydro and

Nuclear Power Co. (KHNP) and his acquaintances, and some former and incumbent officials of

Hyundai Heavy Industries were arrested on charges of offering a bribe of 1 billion won to the KHNP

official. Moreover, as suspicions are being raised about the possibility of their illegally lobbying Park

Young-joon, former vice minister of knowledge economy, the case shows signs of expanding into a

political scandal.

The question is how to punish them. Their penalties will be determined according to the degree of

impact the scandal has made on society, but basically there are limits. Recently, the Supreme Court

gave prison sentences of 10 months to eight years to former senior officials of KHNP. Are these

penalties really appropriate for the crimes they committed to strike the whole nation with terror and

cause an immeasurable amount of damage?

I’m not reacting emotionally to relieve our stress. As the economy advances and the social network

gets tighter, a crime committed by an individual or a group can sometimes bring about an

unimaginably fearful result. Chances are high that if their irregularities had led to accidents, it could

have resulted in a great catastrophe. On crimes that could be fatal to public safety, we need to establish

a system to prevent their recurrence by strengthening punishments.

This is the very reason why American courts sentenced the man who kidnapped and raped three

women for about 10 years to life and 1,000 years in prison, and the former CEO of Enron to 24 years

in jail for shaking the national economy by committing an accounting fraud. It doesn`t make any

sense that individuals or companies are criticized for not saving enough energy and they feel guilty

about it. And what about the patients whose lives are threatened by the energy crisis?

We are paying taxes, even though we are being compared to “geese being plucked,” because we

believe that the state will protect our lives, property and minimum civilized living. I hope that the

Park Geun-hye administration will at least live up to this expectation.

[ August 14, 2013 ]



[DEBATE] Are Free School Lunches Sustainable?

[PRO] Kim Gyu-won Professor, Department of Sociology Kyungpook National University

[CON] Yim Dong-wook Professor, Department of Public Administration Korea National University of Transportation

The debate about whether or not school lunches should be free has started again. Those who contend

that it is fiscally unsustainable lost two years ago. Now, they are on the offense, having seen Gyeonggi

Province slash its future budget allocations for school lunches and other local administrative bodies

consider following suit. The opponents argue that the school meal program needs to be overhauled

but advocates say that it is a necessary investment in the next generation.

[PRO] Responsibility of the Current Generation for the Future Generation

The school lunch debate is back. When Gyeonggi Province announced that it would slash all spending

on free school lunches from its 2014 budget for fiscal reasons, the Incheon metropolitan government

said it would keep its next year`s budget for free lunches at this year`s level.

Whether to provide free lunches may become a major political issue during the run-up to the 2014

local elections. All the more so because the Gyeonggi governor is from the ruling Saenuri Party and

the Incheon mayor is a member of the opposition Democratic Party.

Those who oppose the lunch program have two main arguments. One is economic and the other is

ethical. The economic reason is that the program will place a fiscal burden on local governments,

divert resources from investments in other sectors and eventually hamper long-term regional

development. The ethical reason is that free lunches create a moral hazard because it encourages the

younger generation to think some things can be taken for free. As such, it is not a proper school policy.

Some of the opponents also claim that providing free school lunches is an irresponsible and populist

idea, adding that only a few countries in the world have such a policy for all students from primary

though high school.

I would not say that their claims are totally groundless. Nonetheless, the demand that lunches should

be free for all students also is based on economic, ethical and social grounds.

From an economic perspective, free school lunches help ensure a steady supply of environment-

friendly, organic and local food to the consumer market. This cannot be ignored. In addition, the

lunches can help increase households` income and purchasing power as well as create jobs in food

production, processing and safety.

Seen from the ethical perspective, providing free lunches is a responsibility of the contemporary

generation. In the past we have discussed who would benefit the most from economic development

and what investment should have priority in the future. Now, it is time to talk about how to promote

happiness.

How much economic development is needed for free lunches to be feasible? There is no single correct

answer. We do it because we can manage to do so. In the 2040s, four economically active people will

have to support one retired senior citizen. Providing free lunch is one way to express gratitude in

advance for their future sacrifice. It is the contemporary generation`s ethical investment in the future

generation.

Advocates and opponents are the same insofar as both are concerned about the future of the nation.

Their conflict arises from the absence of a social consensus on tax rates and spending. For instance,

which should come first, the prevention of floods from the four major rivers and the improvement of

the quality of water in the rivers, or the raising of birthrates and human resources development?

Social polarization creates social conflicts. It is fortunate that not all advocates are from the low-

income class and not all opponents are from the high-income class. I hope that the pro-con debate

arises from a difference in political views, instead of reflecting generational and regional cleavages.

The different political views should be directed toward determining policy priorities and scrutinizing

how taxpayers` money is allocated, rather than toward whether or not school lunches are free. The

debate should be about whether it is right to provide a free lunch, not whether or not to provide it.

Lunch must be provided free of charge for all students. It’s a philosophical value rather an object for

a policy debate.

[CON] Provincial Governments Overhaul Provision as Free Lunch Proves Not a Freebie

On August 24, 2011, the Seoul metropolitan government conducted a public referendum on whether

or not it should finance free lunches for all students in every public school. Mayor Oh Se-hoon

opposed the idea and staked his tenure on voter support.

The outcome was a debacle for the mayor. The voter turnout was below the minimum of 33.3 percent

and the ballot boxes were not opened. The mayor resigned. Opinion about him was divided ―

sangfroid and courage on one side and obsession and reckless bravado on the other.

The world has completely changed since the referendum. Free school lunches are regarded a norm.

As of now, 94.6 percent of primary schools in the nation provide free lunches to all students, and 75

percent of middle schools do so.

Gyeonggi Province has recently declared it cannot afford to continue to give every student a free

meal. South Gyeongsang, Daegu and North Gyeongsang are considering overhauling their free school

meal programs because they are fiscally burdensome. Other local governments are coming out to

express their opinion on the issue.

The fiscal sustainability of free school meals has come to the fore again two years after they began.

This issue, together with a commitment to expanding welfare without increasing taxes, has taken

center stage in the debate on welfare.

People are watching with a different perspective than in 2011, when the debate was largely confined

to whether or not a free lunch should be given. Now, it is a matter concerning how to provide it. When

the Seoul mayor staked his position on the issue, the idea of a phased implementation was hidden

from the debate.

The debate that is going on now may look different from the one in 2011, but they are the same in

nature. Everyone actually agreed on free lunches in 2011. The real issue was whether to introduce

them in one fell swoop or in phases. That was the truth.

The reason we are going through the same travail is simple. We have neither firm philosophy nor a

social consensus on the issue. There are a few deranged people who regard free lunch as a freebie.

Behind the provision of free lunch is a heavy burden someone has to shoulder. Advocates are covering

up this dreadful truth.

Coming from the budgetary disputes at local governments over the school lunches is a message that

universal welfare is an illusion when it is not based on an increase in taxes. “Free” should be dropped

from “free lunch.” Instead, its meaning would be made clearer if it were replaced by tax-provided

lunch or obligatory lunch.

Each of us may have to take on an additional burden and pain for the sake of all of us. A debate is set

to start when we are given specific choices regarding welfare. We tend to be selfish when an increase

in taxes or the reallocation of fiscal resources is forced upon us. The criterion in making a decision is

how much more tax we should pay and the acceptable level of tax burden. It is necessary to build a

social consensus when a conflict of interest becomes fierce.

A consensus helps resolve a conflict and solve a problem. It is the driving force in uniting you and

me into us. Paying taxes “without resistance,” if not willingly, symbolizes a social consensus. Welfare

based on a social consensus is long-lasting and sustainable. Deliberative democracy helps produce a

consensus. It also helps start sustainable welfare. Earnest efforts for persuasion minimize resistance

to taxation.

The provision of welfare based on fiscal conditions and an economic outlook guarantees fiscal

prudence. The level and quality of welfare should be determined in consideration of the South Korean

society becoming super-aged and the cost of unification with North Korea and maintaining national

security. When fiscal sustainability is in place, there is no room for anything like an “implementation

in one fell swoop” or a “free-provision series.” We need incremental welfare in which we continue to

pay for benefits.

[ The JoongAng Ilbo, August 24, 2013 ]



- Introducing Korean Culture? No, Share It!

- Dispute over Pensive Bodhisattva’s Trip to New York

- Two Faces of TV Family Programs

- Making Korea a Tourist Attraction for Americans

- Bureaucrats Discourage Creative App Developers

Introducing Korean Culture? No, Share It!

Robert J. Fouser Professor, Department of Korean Language Education Seoul National University

Almost every August I spend my summer holiday at my sister`s house in the United States, and I

often take short trips around the country. This year I joined a group tour of the Washington, D.C. area,

organized by the New York-based Korean Art Society. Headed by Robert Turley, the non-profit

educational organization was established in 2008 to promote appreciation of Korean art and culture.

Turley owns a Korean art gallery in New York. He organizes guided tours of Korean art exhibitions

and collections annually. The excursions include visits to museums and galleries in the U.S. Northeast

that have Korean art works, and participants have a chance to talk with curators and experts of Korean

art. This year, we toured museums and galleries that belong to the Smithsonian Institution.

On the first day of the tour we visited the Freer Gallery of Art for an in-depth viewing of Goryeo

celadon and Joseon buncheong ware. The history of Charles Lang Freer, a U.S. entrepreneur who

founded the Freer Gallery, is an intriguing story of an Oriental art connoisseur and collector in the

19th century.

In the Smithsonian American Art Museum, participants were welcomed by the curator, who designed

and organized the special exhibition of the much-celebrated Korean-American pop artist Nam June

Paik (Paik Nam-jun). There, we had a rare viewing of Paik`s video art work made in the mid-1960s.

The second day of the tour included a group visit to the National Museum of Natural History. Guided

by the museum`s Korean exhibition curator, we were invited to take a close look at photographs of

pottery-making in South Korea during the early 1970s.

I asked other members of the Korean Art Society how they became so interested in Korean art and

culture. They said it stemmed from their own initiative, especially from their encounters and

appreciation of Korean art works in galleries and museums. Rather than relying on recommendations

by other people, they tended to be led by their own artistic interests and cultural instinct without prior

knowledge about the scope of Korean art and culture.

After being intrigued by Korean art pieces, they then looked for publications for more information

and visited other galleries that had Korean art collections. In short, they tended to be self-learners

rather than being consumers of ready-made educational material. It was an interesting discovery for

me to know that they clearly had ownership of their knowledge in Korea, accumulated by their own

initiatives and efforts.

The ways they taught themselves about Korean art and culture highlights an important distinction

from the Korean government-led efforts to “introduce” or “promote” Korean art to “foreigners.”

These public cultural campaigns inevitably resemble the approaches of the Enlightenment Age by

attempting to provide a “correct understanding” of Korean culture to the uninformed “foreign public.”

I believe that this type of effort will very likely backfire because they end up separating “us” and

“others,” which makes it utterly impossible to “introduce Korea” to the global audiences.

In order to end this impasse, it is necessary first to overcome the psychological separation between

“us Koreans” and “others foreigners.” The first step could be to employ people who have a well-

rounded sense and understanding of global culture, and help nurture their area of expertise, to do the

job. Many tend to misunderstand that a good command of English would suffice to communicate

globally, which is only the most basic prerequisite.

The most crucial part of these efforts should be an attitude to communicate with non-Koreans.

Communication, by definition, is a mutual exchange, and it requires having two sides that are equally

willing to deepen their understanding of each other. The tour program by the Korean Art Society is

an effective example to emphasize the importance of mutual communication.

As long as the “communication” element has a pivotal role in the government’s efforts, the “sharing”

of Korean art and culture is possible. The globally popular interest in Chinese and Japanese culture

is less a result of those countries` promotional campaigns than the effective “sharing” of those cultures

with the international audience. The first step in laying the groundwork is to attract attention and

spontaneous interest from the international community.

The shift of paradigm from “introducing” to “sharing” also encompasses efforts to generate

opportunities to access Korean culture internationally. The Korean art tour to Washington, D.C. could

not be possible if the museums did not possess Korean art collections. For instance, the Freer Gallery

began to publish its Korean art catalogue only this year thanks to financial assistance by the National

Museum of Korea. With the publication of a new catalogue, a larger number of people would enjoy

better access to Korean art.

As our tour program drew to an end, I had a chance to talk with an American couple in their 60s, who

live in New York. They said they looked for and participated in activities organized by the Korean

Cultural Service in New York. They befriended Koreans there, and continue to self-study Korean

culture and art. Their experience demonstrates an impressive intellectual and cultural journey towards

greater appreciation and understanding of Korean culture, which also helped stimulate my own

interest in Korean culture. I think this shows the “sharing” approach to Korean culture in the truest

sense.

[ JoongAng Sunday, No. 336, August 18, 2013 ]



Dispute over Pensive Bodhisattva’s Trip to New York

Ye Jin-su Culture Editor The Munhwa Ilbo

Gilt-bronze Pensive Bodhisattva (National Treasure No. 83), Ritual Vessel in the Shape of Warrior

on Horseback (National Treasure No. 91) and Jar with Applied Figurines (National Treasure No. 195)

are all cherished treasures from the Silla Kingdom. They are national treasures whose prices are hard

to name. The Metropolitan Museum of Art in New York is planning a special exhibition, titled “Silla:

Korea`s Golden Kingdom,” from October 29 this year to February 23, 2014, and has asked the Korean

government to lend 26 pieces of national treasure-level cultural relics from the Silla period (57 B.C.

– A.D. 935).

The Cultural Heritage Administration should consider how much the cultural treasures can help

promote Korean culture overseas and improve foreign relations. At the same time this government

agency is tasked with the preservation and management of cultural heritage. It also must review any

possibilities of damage to the invaluable treasures if they are sent abroad.

Currently, there is a dispute over whether the Metropolitan Museum of Art`s request should be

fulfilled. In April, the Cultural Heritage Committee, the top advisory body to the Cultural Heritage

Administration, conditionally approved shipment of all 26 requested items to the U.S. museum.

However, the administration`s head Byeon Yeong-seop overturned the decision in a rare split between

the head of the government agency and its advisory body.

Upon hearing the news, the Metropolitan Museum of Art made a second request, which again faced

a deadlock. As of now, 23 items have been approved, but three items, including Gilt-bronze Pensive

Bodhisattva, have been withheld. [Editor`s Note: The Cultural Heritage Administration finally

rescinded its ban on August 9, so all items will be shipped for the exhibition.]

Article 39 of the Cultural Properties Protection Act stipulates, “No National Treasure, Treasure,

Natural Monument or Important Folklore Material shall be exported or taken out of the Republic of

Korea.” An exception to the provision reads, “This shall not apply where any person obtains

permission from the Administrator of the Cultural Heritage Administration on condition that a

property is shipped abroad for the purpose of international cultural exchange, such as an overseas

exhibition of cultural heritage, and repatriated within two years from the date on which it leaves the

Republic of Korea.”

The current controversy need be reviewed from a fundamental perspective. It is difficult to find fault

with the decision of the head of the Cultural Heritage Administration that there is possible risk of

damage on a national treasure due to frequent exhibitions abroad, thus disallowing its overseas

shipment. However, it is deplorable that she did not respect the decision of the Cultural Heritage

Committee. Due process must be followed before making a decision, and the professional decision

made by an advisory body must be respected.

The issue of lending cultural relics for exhibition at the world-renowned museum could have been

carefully considered under stricter conditions. The Pompidou Centre in Paris was very active in

loaning its artifacts for overseas exhibitions while the museum was closed in 1997. It introduced the

concept of “moving museum” by holding large-scale modern art exhibitions in New York and Kyoto.

Preservation and damage are like the two sides of a coin when cultural artifacts are sent abroad.

Making replicas could be a compromise solution. A replica can be another artifact that conveys the

soul of the original piece. Loaning replicas may help to iron out differences between countries as well

as concerned agencies at home. Protecting cultural heritage is not all about keeping valuable artifacts

in a safe place. A more proactive stance is needed to effectively utilize the functions of cultural

heritage.

[ August 9, 2013 ]



Two Faces of TV Family Programs

Kim Sun-young Popular Culture Critic

During an economic downturn, TV programs inject family-oriented messages, because the more

uncertain people are about their future, the more they tend to rely on their families as a last resort.

This is clearly shown in the types of TV programs that appeared in the first half of this year.

In the drama category, the highest ratings were recorded by a KBS family drama series, “My Daughter

Seo-yeong,” which was about a daughter reconciling with her father. In the documentary category

where it is very difficult to get double-digit ratings, a special episode of “KBS Panorama” marking

the family month of May caused quite a stir. In the advertising category, the commercial that received

the grand prize in the Consumers` Advertisement Awards was an ad that displayed family values.

The strong focus placed on family ties was much more pronounced in the entertainment variety

shows. The biggest hit was MBC`s “Dad, Where Are We Going?” on Sunday evening. Other family-

centric entertainment shows that debuted in the first half of the year included MBC`s “I Live Alone,”

KBS`s “Happy Sunday – Mama Mia” and “Family`s Dignity – Full House.” The list lengthens if

cable and general service channels are included.

If you look closely, you will notice that not all of the shows are therapeutic. Contradictions lie within;

they have two faces. Such dual features of the shows manifest themselves better when you compare

shows with similar themes but with the gender of the cast reversed. Let`s compare “Dad, Where Are

We Going?” which is about the dad`s child-rearing experience, with the female version, “Moms on

Heels,” and also “Honey – Awkward Guest,” which depicts the relationship between a son-in-law and

his mother-in-law against its counterpart, “Gobu Scandal.”

The programs outline possible changes in the traditional gender roles. “Dad, Where Are We Going?”

shows the adventurous experiences of fathers who take their children on a trip without their mothers.

It is a rediscovery of the value of child care and household labor that was considered a female-only

job in the past. “Honey ― Awkward Guest” is a program about a man who lives in his mother-in-

law`s house. It tries to switch the narrative from the cliché conflict between mother-in-law and

daughter-in-law to that between mother-in-law and son-in-law.

The two programs were favorably received in the Korean Institute for Gender Equality Promotion

and Education`s mass media monitoring division. But a deeper look reveals that these programs

underscore the inability of men to function without their wives. In that sense, they seem to discreetly

perpetuate traditional attitudes about gender roles.

The strict patriarchal father has thawed into a friendlier image but the TV entertainment programs

ultimately reproduce the stereotypical image of an authority figure whose duty is to protect his family.

This is no different from the traditional role the father plays. More serious is the female counterpart

versions of these programs. “Moms on Heels” and “Gobu Scandal” are not subtle; their messages are

very direct in reproducing the traditional gender roles.

In comparison to the amateurish child-rearing by the father in “Dad, Where Are We Going?,” “Moms

on Heels” plays out the world of “mom schooling” in defiance of the established schooling system

and displays a mother`s prowess in professional child education. The program only moves to highlight

the ever so familiar mother figure.

The same is true for “Gobu Scandal.” It attempts to spotlight the greater seriousness of conflicts

between mothers-in-law and daughters-in-law (the relationship is called gobu in Korean) over that

between a mother-in-law and a son-in-law in “Honey ― Awkward Guest,” but in the process merely

brings out the provocative side of the conflicts and is not much different from previous dramas in

which the characters shamelessly displayed their raw feelings.

The limitations of these two programs are repeated in “Happy Sunday ― Mama Mia” and Channel

A`s “Welcome to Si World.” (The former is notably a female version of “Dad, Where Are We Going?”

Si means “in-laws” in Korean.) It is unfortunate that the female cast-led family entertainment

programs are solidifying the age-old perception of gender roles.

In summary, the family entertainment programs, supposedly with the “healing code” for the tired

souls of the economically trying times, have dual faces. One is the traditional father, who has turned

friendlier but whose authority remains unapproachable, and the other is the woman who still remains

locked behind the anonymous face of someone`s wife, daughter-in-law and mother. Apparently two

different faces, they merge to form one conservative portrait of today`s Korean society.

[ Kyunghyang Shinmun, August 24, 2013 ]



Making Korea a Tourist Attraction for Americans

Oki Kang Executive Director, Los Angeles Office Korea Tourism Organization

While working abroad, it often strikes me that we have learned quite a lot about world history and

geography. Unlike Koreans who have a certain amount of knowledge about other countries,

Westerners generally do not know about the location and history of a foreign country to the point of

being ignorant. For Koreans who have been appropriately educated, it is frustrating.

After considerable time passed, I realized that Westerners have learned history from their own

perspectives, and they have a certain degree of knowledge about Japan and China with which they

had early exchanges. For Americans who also see the world from a U.S.-centered perspective, Korea

is not a familiar country.

Recently, it seems like a growing number of Americans want to know about Korea. For example,

some people want to cook Korean dishes, some others want to learn Korean because they want to

watch popular Korean dramas in the native language just like Koreans who studied French at the

French Cultural Center in Seoul in the past, and still others are well versed in many Korean pop

singers, humming the K-pop lyrics.

It is a far cry from the 1990s when I started to work abroad. Back then, before we could generate

interest in visiting Korea, we had to show Americans where Korea was located on a map, saying, “I

come from South Korea.”

Inter-regional travel comes first in tourism. Korea`s largest tourism market is Japan and China and

for the United States, the largest market is Mexico and Canada. U.S. immigration officials have

separate statistics for these countries. Given this, luring to Korea those Americans who think of Korea

as a distant destination requiring at least 12 hours of flying and thousands of dollars has a greater

significance beyond mere figures. It`s because it is gathering people who like Korea a lot and are

eagerly anxious to visit.

Fortunately, the annual number of Americans visiting Korea amounts to 700,000, the third largest

after Japan and China. Of course, the number is still small. However, they are surely Korea

aficionados that other Asian countries would envy. The task before us is how to turn the budding

interest into a substantive stride. The most effective way is through word of mouth by maximizing

the satisfaction of those who have travelled to Korea.

Fortunately, Korea has an endless list of attractions, besides delicious food, dramas and K-pop. To

cite a few instances, it has the eaves of old palace buildings creating charming silhouettes against

mountain ridges that can be seen in the downtown of Seoul; the winding alleys amid traditional

Korean houses in a well-preserved old neighborhood in the midst of skyscrapers; the fascinating

nature of the mysterious island of Jeju with its unique history of women divers; and Gyeongju, an

ancient historic city dubbed “a museum without walls.”

Numerous historical places and stories created through five thousand years of history are priceless

heritages that can look awesome in America which has a relatively short history of 250 years. Lately,

many Dodgers fans in Los Angeles ask about Ryu (referring to Ryu Hyun-jin, a Korean pitcher of the

Los Angeles Dodgers) when they meet Koreans. Now, I look forward to watching Ryu Hyun-jin, who

was recently appointed “Korean tourism ambassador” on Korea Day in Los Angeles, record his 15th

win. That would prompt numerous ardent Dodgers fans to join in the move to know about Korea.

[ Korea Economic Daily, August 26, 2013 ]



Bureaucrats Discourage Creative App Developers

Mun So-yeong Editorial Writer The Seoul Shinmun

Professor Choi Young-joon of the Department of Digital Arts at the Seoul Institute of the Arts is a

jazz pianist and leader of the traditional Korean music band “Oriental Express,” which has released

three albums. He developed a traditional Korean music application named “Gayageum” (traditional

Korean 12-string zither) in 2010 and introduced it to the free public domain.

Indeed, if you download the app to your mobile phone and pluck the 12 strings, you can enjoy a

silvery sound that is quite pleasing to your ears. The application was so popular it became the second

most downloaded free application of 2010, following KB Kookmin Bank. Later, Professor Choi, the

first developer of traditional Korean music app, followed up with gayageum and samulnori

(traditional Korean percussion music) apps for Galaxy.

Professor Choi also caught the attention of people by performing a concert with mobile phones

equipped with the apps he developed. For future development, he put the sound sources of geomungo

(traditional Korean six-string zither), piri (double reed oboe) and haegeum (a two-stringed vertical

fiddle) in his Gayageum app.

In light of his international academic credentials as well as his enthusiasm and talent, Choi may be

described as a model of creative talent. After graduating from the electronics department of Myongji

College, he worked in broadcast music and software development. Then, he went to the United States

to obtain a bachelor`s degree at the Berklee College of Music in 1997, and subsequently went on to

get a Master`s degree in media arts from Brown University in 2000.

There is another traditional music app developer. Park Je-rok, a graduate of the Composition

Department of Seoul National University, where he is currently serving as an instructor, developed

and put on the market his own gayageum app in 2011. While the traditional music apps of the two

musicians resemble each other, Park`s seems to be better than Professor Choi`s. Park`s app gives

users additional pleasure as if they are playing the instrument personally since it is loaded with the

scores of “Arirang” and other traditional folk songs.

As the first developer of a gayageum app, Professor Choi did not get a copyright for it. He did not

think that copyright would be effective in preventing theft since the app registration is to simply

register a program unlike ordinary copyright registration. A hefty registration fee of 2 million won

(approximately US$ 18,000) made him reluctant, but the primary reason in forgoing a copyright was

that the app could be an impetus for more traditional music apps.

Therefore, when Park`s app which is almost the same as his was put forth, Professor Choi welcomed

it. He believed that well-intended competition would be possible with increasing interest in traditional

music. He even expected that there would be a chance to introduce real Korean music to the world,

breaking away from the hallyu craze for K-pop.

Then, last year, the Korea Creative Content Agency announced a three-year plan to invest a total of

600 million won (US$ 553,000) for development of “Gugak” (traditional Korean music) app, and in

March this year it released a gayageum app, its first outcome.

The project, part of a scheme to digitalize and develop traditional Korean music apps, has been

included among the government-sponsored R&D projects. The Korea Creative Content Agency has

undertaken the project at the commission of the Ministry of Culture, Sports and Tourism, in

cooperation with the Arts Science Center of Seoul National University`s College of Music.

Before the project was launched, Professor Choi received a request to conduct a technology demand

survey. Then he suggested that since traditional music apps developed by private individuals were

already on the market, the project should be awarded to them. His suggestion was not accepted. Park

Je-rok participated in the project as a team member not a leader.

Ideas are the key to the so-called “creative economy,” and the passion and capability to put the ideas

into action are important. While the Korean economy has achieved rapid growth for the past four

decades by becoming a fast follower to catch up with advanced countries, it now has entered a stage

asking for first movers like Bill Gates or Steve Jobs to make a leap forward. That is why we put an

emphasis on the creative economy.

As shown in the case of traditional music app development, the government should refrain from

converting the ideas and products of individuals into a state project. It should not belatedly jump into

the territory of private developers under the pretext of offering policy and budget support, thereby

disturbing the market. It is nothing but an abuse of power, taking advantage of a superior position.

A media outlet has recently raised suspicion that KT Telecop, a security arm of Korea Telecom, has

pirated software developed by a business partner for 10 years. Also, Chung In-mo, a KAIST student,

appealed to Deputy Prime Minister Hyun Oh-seok that the Seoul Metropolitan Office of Education

has stolen his app, Letters-to-Parents·Notices.

In a country where the government, public enterprises and large businesses steal good ideas of

individuals or smaller businesses and transform them into their own achievements, the creative

economy cannot succeed.

[ August 10, 2013 ]



- ‘DMZ International Peace Park’: Significance and Promotion Strategy

- Consumer Food Prices Rise Faster than Producer Prices

- Korea’s Employment Situation in Comparison with Major Advanced Countries and Policy Suggestions

‘DMZ International Peace Park’: Significance and Promotion Strategy

Son Gi-woong President, Korean Association of DMZ Studies Senior Research Fellow, Korea Institute for National Unification

I. Introduction

The Demilitarized Zone running across the waist of the Korean peninsula was where some of the

fiercest battles of the Korean War occurred. Left virtually undisturbed since an armistice agreement

was signed six decades ago, the forbidden strip of land has returned to its natural state. It is an

ecological haven, home to rare species of flora and fauna living in pollution-free water, air and soil.

On the other hand, the DMZ will always be where physical contact between the two Koreas takes

place. It is the byway for cooperation and exchanges, involving not only political and military issues

but economic, social, cultural and environmental interests. For example, railway and highway

connections were established in an extremely limited scale to facilitate the Kaesong (Gaeseong)

Industrial Complex and the Mount Keumgang (Geumgang) tourism project. Under these

circumstances, an inter-Korean agreement on the peaceful use of the buffer zone can be a stepping

stone to peaceful coexistence.

This study analyzes the significance of the “DMZ International Peace Park” proposal that President

Park Geun-hye unveiled in her address to the U.S. Congress on May 8. It also explores the theoretical

background to the proposal, examines Seoul`s strategy for its promotion, and suggests policy

approaches on inter-Korean and international levels.

II. Significance of the ‘DMZ International Peace Park’

The significance of the DMZ International Peace Park can be summarized as: 1) a peace gesture; 2)

a tangible step in President Park`s call for trust building on the Korean peninsula; 3) a move to thaw

the strained relations with Pyongyang; 4) a nod to “green détente” with the North; and 5) the start of

building a new Korean peninsula and a new Northeast Asia.

Under the proposal, “peace” applies to people-to-people relations and the interaction between people

and nature. The DMZ International Peace Park would be designed to provide a stage for exchanges

and harmony between rival states and for all of mankind wishing to live in peace. The plan also

envisions turning an area that had been destroyed by war into a site for nature`s power of healing.

The park would be a place where war will be condemned, where the Koreas can reconcile, where

nations can cooperate, and where people can express their commitment to restoring the environment.

Second, the main issue in inter-Korea relations is the denuclearization of the North. It won`t be

resolved without a long-term process. The Park administration believes building mutual trust and

ensuring peaceful coexistence are requisites to making progress. The peace park can play a vital role

along the way.

Third, the North`s provocations in recent years, including the sinking of the Cheonan patrol craft and

artillery shelling of Yeonpyeong Island, have occurred in the seaward extension of the DMZ.

Pyongyang will not likely apologize and Seoul will not make any concessions. A DMZ project could

be an alternative approach.

Both sides could demonstrate sincerity in improving mutual ties by leaving the maritime issues

unsettled and going ahead with a DMZ peace park. This in turn could lead to negotiations to resume

the Mt. Kumgang tourism project. Furthermore, another inter-Korean economic cooperation model

can be contemplated in the form of a second joint industrial complex located close to the southern

boundary of the DMZ.

Without a basic and firm agreement on the peaceful utilization of the DMZ, any inter-Korean

cooperation project could be a pavilion built on sand, vulnerable to adverse political and military

developments as seen with the Kaesong and Mount Kumgang projects.

Fourth, the DMZ peace park would boost “green détente,” advocated by President Park to establish

a “joint South-North environmental community” and a “joint economic community.” In short, more

tangible features would be added to the ideas of green economic cooperation, such as joint

environmental study of border areas and a renewable energy complex, which were suggested for inter-

Korean environmental cooperation.

Fifth, the peace park demonstrates our desire to achieve peace and co-prosperity of all nations through

reconciliation, mutual trust and cooperation. Timed with the 60th anniversary of the end of the Korean

War, the plan envisions the involvement of all 67 nations that provided wartime support to the South

in addition to the foes ― North Korea, China and Russia. The peace plan would be the first step

toward building a new Korean peninsula in a new Northeast Asia.

III. Theories on the ‘DMZ International Peace Park’ and Examples

1. Theoretical Background

The DMZ International Peace Park is based on the concept of a “limited peace zone in the DMZ.”

The idea is to display the return of peace in a limited space and then expand the area over the mid to

long term amid efforts to spread peace throughout the Korean peninsula.

A peace zone is an area on the border between belligerent countries to prevent military clashes or war,

and to restore, maintain or expand a state of peace between them. Its aim is to help establish a

sustainable peace regime ― the procedures, rules and institutions for ending hostile relations in a

cooperative atmosphere.

While a peace regime involves entire territories, a peace zone acts as a measured step toward a full-

scale peace regime. The Korean DMZ did not become a peace zone. Instead the heavily-fortified zone

became the scene of ceaseless conflicts and confrontation. The DMZ International Peace Park could

serve as a peace zone that can eventually cover the entire DMZ and then lead to a peace regime on

the entire Korean peninsula.

2. International Examples

The Morokulien Peace Park may be regarded as the first international peace zone. After Norway

defeated Sweden in the battle of Langnes Skanse on August 9, 1814, the two countries maintained

peaceful relations until 1905, when their union was dissolved. Then, deepening conflict between

conservatives and nationalists underscored tension throughout the Scandinavian Peninsula.

Under these circumstances, the Nordic Peace Conference decided in July 1910 to erect a peace

monument in Eda, on the Norway-Sweden border, to commemorate a century of peace between the

two countries. The Morokulien Peace Park was thus established in August 1914. Since then, the park

has been a stage for numerous peace movements. It was where the “Across All Borders” radio station

began its broadcasts, with joint investment by Norway and Sweden. The park is used as the venue for

the wedding ceremonies of many Norwegians and Swedes nowadays. Morokulien passports are

issued to visitors, making them honorary citizens of the peace zone. Joint tree planting events are held

by the citizens of the two neighboring countries who also jointly operate a tourist information center

and convention facilities. The peace park has thus earned the nickname of “Republic of Peace” with

more than 100,000 people visiting annually.

IV. Purposes of the ‘DMZ International Peace Park’

1. Serving Bilateral Interests

Considering the two Koreas have different positions on political, military, economic, cultural and

environmental issues, the peace park plan should be drawn up to serve the best interests of both sides.

Its promoters should make utmost efforts to publicize its merits.

First, they should emphasize that the peace park would be an exceptional opportunity for each side to

demonstrate its political and diplomatic capabilities and dedication to peace. Second, both sides

should be convinced that the peace park would not undermine their security. Third, mutual economic

benefits should be noted, as the park would offer historical, cultural and environmental tourism

opportunities. Fourth, the park would help discover and preserve valuable cultural assets within the

DMZ. Fifth, awareness of the environmental value of the DMZ would be raised.

2. Serving International Interests

The DMZ in Korea is a matter of interest for the United States and China, which were the signatories

to the 1953 Armistice Agreement, and more broadly for the United Nations and the international

community as a whole. Therefore, in order to promote the peace park, it is necessary to gather global

support by publicizing the political, military, economic, cultural and environmental merits the park

would have for the whole world. Furthermore, we will have to tell the world how the park will

generate reconciliation and cooperation between the two Korea as well as advance peace and co-

prosperity in Northeast Asia and increase international friendship.

3. Principles of the Peace Park

The International Peace Park in the Korean DMZ should be built under the following principles:

First, the DMZ, a symbol of conflicts and disputes, is turned into a place of trust and harmony.

Second, the peace park should be a showcase of mutual accommodation between man and the

environment.

Third, the park should contribute to the improvement of inter-Korean relations and preparations for

reunification.

Fourth, the park should balance the peaceful use and preservation of its habitat.

Fifth, the park should contribute to the region`s economy, balanced development of territory and

overall growth of the nation.

Sixth, the park should help promote international understanding.

4. Formation of Promotion Committee

A promotion committee should be formed to manage all facets of the peace park plan. The committee

should be placed under the direct control of the president because it will be a national priority project

reflecting the president`s political will. The Ministry of Unification should play the central role, since

the ultimate aim of the peace park would be restoring trust and improving bilateral relations in ways

to encourage North Korea to shift its policy direction.

The civil society, the government and the military should all have roles in the project. Therefore, the

promotion committee will hopefully consist of leading figures from political, bureaucratic, financial,

academic and religious communities and the media. Overseas communities, NGOs and international

organizations, including the United Nations, may be invited to dispatch their representatives to the

committee.

The promotion committee will have the primary task of producing a theoretical basis for the peace

park in order to generate international consensus. The committee will then arrange consultations and

information exchanges between the civic, governmental and military components to reflect the

government`s policies on unification, security, North Korea and diplomacy in their work. Next, it will

aid the government in its communication with the United Nations and other international

organizations to help promote an international network for the project.

The president will be the honorary chairperson of the committee. The general assembly will include

leaders and experts from all walks of life, while the board of directors will have figures representing

diverse social sectors. The board will be headed by the prime minister, who will also assume

chairmanship. A vice chairman, an auditor, chairpersons of working subcommittees, and a general

secretary will also be appointed.

There will be subcommittees for planning and coordination, research and advisory affairs, and support

and public relations. A diplomatic support team will assist external contacts with the U.N. and other

international organizations and an inter-Korean affairs team will support contacts with North Koreans.

The secretariat will have administrative personnel to execute decisions made by the general assembly,

the board of directors, executive officers and subcommittees.

The committee will be funded with the government`s special account budget, related funds and

subsidies, international contributions, membership fees, public donations and other incomes.

V. Plans for the ‘DMZ International Peace Park’

1. Scale and Form

Considering the present state of inter-Korean relations, the North probably would not agree to a large

park. A modest size of one square kilometer is suggested. Anything larger could cause military

concerns for each side and may also lead to environmental and ecological problems.

A round or rectangle-shaped area covering one square kilometer would be about twice the size of the

Panmunjom truce village in the western sector of the Demilitarized Zone. When tree planting is

necessary, it will be done simultaneously by people from the South and the North.

2. Facilities

Memorial monuments that convey the desire for peace and reflections on the past war will be erected

in the peace park with minimum auxiliary facilities. The design of the main monument will be chosen

through international competition so that the significance of the project is globally publicized. The

monument will feature a concept that will be acceptable to all the countries that fought in the Korean

War. It will also be used as a venue for conventions on peace and environmental issues.

Other facilities may include structures necessary to promote inter-Korean cooperation, such as a

research institute for “green détente” in joint efforts for the scientific development of energy, forestry

and agriculture. A medical research institute is recommendable for joint study with the North and aid

for it.

As inter-Korean relations improve, the scale of the peace park may be expanded to include facilities

for large-scale international conventions on peace and the environment and even an educational

institute on such subjects, possibly named the “U.N. Research College.” All these facilities, including

approach roads, should be built in a way that best preserves the surrounding nature in the DMZ.

3. Location

Ideally, the peace park would straddle the Military Demarcation Line (MDL) running through the

DMZ, with roads to the park built by both Seoul and Pyongyang. The peace park should be in an area

that has the easiest access. It should 1) symbolize relaxation of tension and yearning for peace on the

Korean peninsula, 2) be environmentally-friendly, 3) provide easy access from existing population

centers, 4) take advantage of existing infrastructure, 5) be appropriate for balanced regional

development, 6) serve as a connection between the South and the North, 7) contribute to the future

development of inter-Korean economic, social, cultural and environmental cooperation and

exchanges, and 8) have promising potential as a center for Northeast Asian and global

communications.

With these prerequisites we may consider a site on the west coast, western flatland, western

mountainous zone, central hilly area, eastern mountains and the east coast. First considered is the

western flatland around Jangdan on the Seoul-Sinuiju route. The rail and highway lines of Paju-

Munsan-Kaesong axis, Euijeongbu-Dongducheon-Yeoncheon axis and Yangju-Pocheon-Cheorwon

axis pass through or near this area, which was developed extensively before the war. Especially, the

Paju and Yeoncheon areas are being planned by the government as the future center of North-South

exchange and cooperation ahead of unification. Jangdan on the Seoul-Sinuiju railway is also close to

Kaesong in the North and Ilsan in the South with good geographical potential for international and

inter-Korean exchanges in the future. Despite its other advantage of being close to both Seoul and

Pyongyang, North Korea`s acceptance is doubted because the area lies within the most sensitive

military zone, which contains the North`s potential main invasion route.

The second candidate is the hilly central region around Cheorwon on the Seoul-Wonsan route.

Cheorwon, which formed the “Iron Triangle,” is where some of the fiercest battles of the Korean War

were waged. It has good tourism potential with easy access to the Peace Dam and Paro Lake in

Hwachon, Mt. Yonghwa, the Suip River and Mount Kumgang to the east. If the peace park is built

here, it would significantly contribute to balanced regional development. When inter-Korean relations

are improved, the Gyeongwon rail line may be connected with the Mt. Kumgang line in the North.

Also, the area between the Peace Dam in the South and the Mt. Kumgang Dam in the North is known

to have relatively less concentration of military facilities, hence the possibility of turning the DMZ

land into an ecological model in the future. Yet, Cheorwon is farther from both Seoul and Pyongyang

and the hilly terrain makes the construction of urban infrastructure to support the park difficult.

The third candidate site is the eastern coastal region. Situated between Mt. Seorak in the South and

Mt. Kumgang in the North, the region has the best natural scenery. It features high mountains, long

beaches and blue water. While it is farthest from Seoul and Pyongyang, it could cause less social

impact on the rest of the territory when it becomes a center of inter-Korean exchanges. This area has

already been used for the inter-Korean tourism to Mt. Kumgang. The high mountains make it easier

for both sides to put the area under military surveillance. The impact of operating peaceful facilities

inside this section of the DMZ would cause less security concerns.

If the peace park is built at this place, it would greatly serve regional development but there could be

environmental repercussions. The remoteness from Seoul calls for improvement of land and air

access, including better utilization of the Yangyang International Airport and construction of high-

speed transit systems from Seoul to the northeastern coast.

The location of the park should be decided through careful consideration of the abovementioned

conditions. Multiple candidates should be chosen for agreement between the two Koreas with

opinions of other interested parties also considered. If the North responds positively, more than one

peace park may be considered for simultaneous construction or as future projects.

4. Link to Historical, Cultural and Tourism Programs

The peace park can be linked to existing historical, cultural and environmental resources in the

adjoining areas in the South and the North, in order to heighten support from North Korea. If visitors

to the peace park can be guided to other places of interest in the North, Pyongyang may consider it

as an opportunity to increase its foreign exchange income, and the South may expect the same effect.

This factor should therefore be examined when selecting the site of the park.

5. Management

The two Koreas could share the rights and responsibilities attached to the peace park, with the consent

of the United Nations Command – represented by the United States – and China. Or management

may be given entirely to the United Nations, which has both Koreas as members. The most feasible

method will be having the U.N. control of the DMZ peace park but entrust the two Koreas to jointly

manage it. This would strengthen mutual trust and the park could be a template for unification.

Assuming the withdrawal of the U.N. Command from South Korea after a formal peace treaty

officially ends the Korean War, the existence of the U.N.-managed international peace park inside the

DMZ will have great significance for maintaining peace on the Korean peninsula.

VI. U.N. Role in Creating the ‘DMZ International Peace Park’

1. Support of the Permanent Security Council Members

The support of the five permanent members of the Security Council is essential to secure U.N.

assistance in realizing the peace park idea. Diplomatic initiatives are necessary to win the support of

the United States, China, Russia, Britain and France, possibly through the opportunities of bilateral

summits; direct correspondence or telephone conversation will be useful. Korean War veterans in

each country can play important roles in this effort. With the support of the five permanent members,

the U.N. Security Council can adopt a resolution for the creation of the peace park or the UNSC

president may issue a statement to that effect.

2. Support of the U.N. General Assembly

When the Security Council`s support has been obtained, the U.N. General Assembly would discuss

the project, proceeding to a resolution or a presidential statement in support of the peace park

proposal. A notable precedent may be the signing of the Southeast Asian Nuclear-Weapon-Free Zone

Treaty at the ASEAN ministerial meeting in Bangkok on December 15, 1995, which followed the

U.N. General Assembly`s resolution to support the pact three years earlier.

3. South Korean President’s Visit to the U.N.

It is recommended that President Park visit the United Nations after the Security Council or the

General Assembly extends support to the project to explain to the world the significance of

establishing an international peace park inside the DMZ and to call for global support.

4. Support of U.N. Specialized Agencies

It is important that Seoul seeks the support of U.N. specialized agencies engaged in activities related

with North Korea for the international peace park project. They are UNDP, UNEP, UNFPA, UNICEF,

FAO, WFP, UNIDO, ESCAP, UNITAR and UNIFAD. The government may arrange a meeting of the

representatives of these organizations in Seoul to brief them on the peace park project as well as

President Park`s trust-building offer to the North and her government`s unification policy. A tour to

Panmunjom and nearby DMZ can familiarize them with the present status of Korean division.

5. NGO’s Support

The government needs to contact NGOs worldwide to explain the need and importance of a DMZ

peace park and to get their supporting statements, which will be useful in winning U.N. support. A

peace festival may be held near the DMZ, in Gyeonggi or Gangwon Province, with the participation

of these NGOs in order to increase international interest.

VII. Roadmap

1. 1st Stage: 2013

1) Inaugurate the Promotion Committee

2) Select the site of the park

3) Seek North Korea`s participation

4) Elicit support from the international community

5) Hold an international peace festival

2. 2nd Stage: 2014

1) Strengthen internal preparations

2) Finalize site selection

3) Encourage the North to join in the project

4) Continue to seek global support

3. 3rd Stage: 2015-2017

1) With eventual consent of North Korea, the two Koreas, the United States, China and the United

Nations finalize plans for the location, scale, form and facilities of the DMZ International Peace Park

and approach routes to it. A ground-breaking ceremony is held with all interested parties attending.

Construction of a peace park should ensure the most optimal utilization of natural environment in a

perfect balance between sustainable development and preservation.

An environmental impact assessment should precede all stages of construction. North Korea should

be asked to respect this principle if the park straddles the Military Demarcation Line to include the

northern side of the DMZ. Material and technological help would be provided when necessary.

Finally, on June 25 or July 27 in 2016, the anniversaries of the start of the war and the signing of the

Armistice Agreement, respectively, the DMZ International Peace Park will be dedicated in a

ceremony attended by representatives from both Koreas and the international community.

2) The two Koreas hold talks on additional facilities for the peaceful use of the DMZ.

VIII. Conclusion

Peaceful use of the DMZ was first proposed during the 1970s, but the idea drew little response. While

political and military conflicts continued, there were strong voices against opening any part of the

DMZ in the absence of mutual trust between the two Koreas. Since the 1990s, objections have further

grown as the cause of the peaceful use of the DMZ lost ground amid the prolonged dispute on North

Korea`s nuclear armament.

It was convincing that cooperation with North Korea might be increased only gradually in accordance

with any changes in the attitude of the North. While such arguments continued, there has been no

change in the overall security situation and the DMZ remains a formidable military barrier. Now, it

is time to change our thoughts to try to make an opening in the wall, however small it may be at the

beginning.

If the DMZ had performed its original function as a peace-making device, there would be no need for

a debate on its peaceful use. The reality was the heavy militarization of the DMZ by both sides to

make it a source of ceaseless conflicts. Military and political confrontation dashes any hope for peace.

But the DMZ International Peace Park is an idea that can sow a seed for trust and peace in a small

portion of the buffer zone. If small peace zones of various forms are established inside the DMZ, they

will help promote a sustainable peace regime between the two Koreas.

The peace park is an idea to turn the space of confrontation and conflicts into a place for trust and

cooperation through mutual consent. Without a basic and firm agreement on the peaceful utilization

of the DMZ, any inter-Korean cooperation project can crumble under adverse political and military

developments as the Kaesong and Mount Kumgang projects have demonstrated.

Since President Park unveiled her initiative for an international peace park in the DMZ, many cities

and counties adjoining the zone are moving briskly in a bid to have the park built in their vicinity.

They mostly are communities where industrial development has been slow due to their distant

locations or proximity to the DMZ. They should understand that the peace park will be established

with domestic and international consensus and, wherever it is built, they should all join in efforts to

make the project viable with full public support. And projects for the peaceful use of the DMZ will

multiply when the first small one becomes successful.

If we fail to secure nationwide support for the peace park, it will be hard to win the consent of North

Korea and the international community. Now that the DMZ, created by the Armistice Agreement, is

60 years old, it is time for all of us to make sincere efforts to turn the scene of fierce battles into a

place of peace where reconciliation is achieved between man and man and between humans and

nature. Preparations should be made step by step in all prudence.

[ Unification and Law, No. 5, August 2013, Ministry of Law ]



Consumer Food Prices Rise Faster than Producer Prices

Baek Da-mi Researcher Hyundai Research Institute

1. Introduction

Throughout the global financial crisis, overall consumer prices have been stable but the prices of

food-related items, a key determinant in living costs, have been volatile. From 2007 to 2012,

Korea`s domestic consumer price index increased by an annual average of more than 3 percent.

However, the price indices for food and non-alcoholic beverages and for agriculture products rose

by an annual average of more than 6 percent during the same period.

A rapid increase in food costs naturally puts more pressure on household budgets. The lower-

income bracket is especially vulnerable because basics such as food account for a larger share of

their spending.

With abnormal weather expected to constantly destabilize the supply and demand of agricultural

products and their prices, there are worries about volatility in the retail prices of food and non-

alcoholic beverages.

Through an international comparison with OECD member countries, this paper examines the price

stability of Korea`s groceries and non-alcoholic beverages and suggests policy moves.

This study is based on the price indices released by the Food and Agriculture Organization (FAO) of

the United Nations. Since the latest data released by the FAO are the Agricultural Producer Price

Index of 2010 and the Food Price Index of 2012, the analysis is limited to the price indices from

2007 to 2010. There can be some differences with the producer price indices and consumer price

indices released by the Statistics Korea and the Bank of Korea.

First, the growth rate of consumer prices of food and non-alcoholic beverages was analyzed. The

FAO Food Price Index indicates the changes in retail prices. The index includes agriculture, stock

farm and fishery products, processed food, and non-alcoholic beverages.

Then the growth rate of the producer prices of agricultural products ― the raw materials of food

and non-alcohol beverages ― was analyzed and compared with the consumer prices of food and

non-alcoholic beverages. The FAO Agricultural Producer Price Index tracks changes in the market

prices that farm households get paid. The index aggregates the producer price indices of individual

farm and livestock products.

2. Growth Rate of Consumer Prices of Food and Non-alcohol Beverages

The 2007-2010 growth rate of Korea`s consumer prices of food and non-alcoholic beverages was

20.1 percent, the third highest among the 29 OECD member countries at that time. This was much

higher than the 10.7 percent increase of consumer prices during the same period.

Lower price growth than Korea in food and non-alcoholic beverages was posted in several major

industrialized countries, including Japan (2.5 percent), France (6.2 percent), Germany (7.2 percent),

U.K. (18.7 percent), and the United States (8.2 percent). If consumer price growth is subtracted

from consumer price growth of food and non-alcoholic beverages, the difference was 9.4

percentage points in Korea, the second highest after the U.K.`s 10.5 percentage points.

From 2007 to 2010, the producer prices of agricultural products grew 6.5 percent. This means that

Korea`s consumer prices of food and non-alcoholic beverages increased 13.6 percentage points

faster than its producer prices of agricultural products.

The 13.6 percentage point difference was the fourth highest among the OECD member countries.

From 2007 to 2010, the producer price growth of agricultural products was relatively lower in seven

countries, including the United States and Japan. In the other 22 countries, including Korea, the

consumer prices of food and non-alcoholic beverages rose at a faster pace. In terms of consumer

price growth of food and non-alcoholic beverages minus producer price growth of agricultural

products, Korea ranked fourth.

3. Policy Suggestions

Since the growing prices of food and non-alcoholic beverages may put more pressure on

households` living cost, there should be some efforts to stabilize the prices of food-related items.

Compared to other OECD member countries, Korea has steep upward trajectory in food-related

consumer prices. This means that the escalating prices are more likely to become a swelling burden

on household spending. Also, unlike other industrialized countries, Korea`s food-related consumer

prices increase faster than its producer prices of agricultural products. This implies that the pressure

of rising prices of agricultural products is directly passed on to consumers.

First, price stabilization policy should focus on “managing the market” to promote competition

rather than on “managing prices” to control prices. Price controls cannot fundamentally remove

price growth factors, thus it may possibly result in greater price instability in the future. Rather than

trying to manage price indices, it is necessary to create a price decision system in which

competition and a lid on price collusion naturally stabilize prices.

Second, pre-emptive measures should be adopted to curtail the effects of supply distortions caused

by frequent occurrence of abnormal weather conditions and volatile energy prices. For example,

agricultural forecasting should be improved and linked with supply and demand policy making.

Such steps will help soften food price escalation due to supply instability of agricultural products.

Also, it is necessary to improve the efficiency of stockpiling. Regular stockpiling and

modernization of storage sites is needed. Expanding contract farming will help increase the

market`s ability to stabilize supply and demand as well as prices. It is also necessary to encourage

forward transactions for agricultural products and to raise the number of disaster insurance policy

holders to reduce risks in the supply chain.

Third, excessive passing of agricultural product prices on to consumer prices must be prevented by

correcting inefficiencies in the distribution system of agricultural products and strengthening

consumers` monitoring of the market. To improve efficiencies in distribution, small-scale

production should be complemented by scaling and systematizing. Efforts may include improving

harvesting and sorting as well as enlarging and standardizing products. It is necessary to resolve the

information imbalance among producers, distributors and consumers, and strengthen consumers`

monitoring by providing swift and accurate information on distribution.

[ Issues and Tasks 13-36, August 7, 2013, Hyundai Research Institute ] www.koreafocus.or.kr


Korea’s Employment Situation in Comparison with Major Advanced Countries and Policy Suggestions

Jeon Hae-yeong Senior Researcher Hyundai Research Institute

The Park Geun-hye administration has set its employment rate target at 70 percent, drawing broad

public attention. Raising the employment rate can help overcome the low growth trend caused by the

slowing global economic growth and population aging, resolving uncertainty about people`s right to

work and livelihoods, and eventually allowing Korea to joint the ranks of advanced nations. However,

it does not seem easy to achieve the 70 percent target, considering that the nation`s employment rate

has hovered around 63-64 percent for the past 10 years. This paper analyzes Korea`s current

employment situation in comparison with 13 major advanced countries that have achieved 70 percent

employment.

National Employment Rate

Korea`s employment rate in 2012 was 64.2 percent, while the average employment rate of 13 major

advanced countries stood at 73.9 percent. There was a 16 percent gap with Iceland, whose

employment rate is 80.2 percent, the highest among the 13 countries. The speed of employment

upturn is also stagnant in Korea. From 2004 to 2012, the nation`s employment rate increased only by

0.6 percentage points from 63.6 percent to 64.2 percent, while the average employment rate of the 13

countries rose by 1.1 percentage points from 72.8 percent to 73.9 percent. Particularly, the

employment rate in Germany, Austria and the Netherlands increased by 7.8 percentage points, 4.8

percentage points, and 4.0 percentage points, respectively.

Labor Demand

The share of manufacturing in total employment is relatively higher in Korea compared to the 13

advanced countries, whereas that of the service industry is lower. Based on 2012 figures,

manufacturing accounts for 16.6 percent of total employment in Korea, which is higher than the

average ratio of 12.8 percent in the 11 advanced countries where the relevant statistics are available.

In Korea the share of manufacturing dropped from 18.5 percent in 2004 to 16.6 percent in 2012, while

the average share fell from 15.8 percent to 12.8 percent in the 11 countries during the same period.

Meanwhile, the service sector`s share in total employment is 69.3 percent, lower than the average

ratio of 74.6 percent in the 11 countries. Still, the employment share of Korea`s service industry

increased from 64.7 percent in 2004 to 69.3 percent in 2012, whereas the average ratio of the 11

countries rose from 72.2 percent in 2004 to 74.3 percent in 2012, showing faster growth.

Labor Supply

Korea`s youth employment rate is particularly low. The employment rate of the 25-34 age group

stands at 70.9 percent, far lower than the average rate of 80.5 percent in the 13 major advanced

countries. Korea`s youth employment rate increased by 1.5 percentage points during the period of

2004-2012, higher than the average increase rate of 0.5 percentage point of the 13 countries, but lower

than Germany (4.6%p), Japan (2.4%p) and Austria (1.6%p).

Women`s housekeeping and childcare burdens are among the main factors behind Korea`s low youth

employment. More specifically, employment rate of Korean women falls sharply to 54.8 percent

among those in their early 30s from 68.0 percent among those in their late 20s, whilst, in the 13 major

advanced countries, the average employment rate of women in their late 20s is 74.4 percent and

continues to rise to reach 80.5 percent among those in their late 40s.

The supply and demand imbalance, created by many highly-educated young people seeking stable

jobs at large conglomerates and state enterprises, is also contributing to the low youth employment

rate in Korea. The share of college graduates among the 25-34 age group amounted to 49.1 percent

in 2004, which increased to 65.0 percent in 2010, whilst the comparable average ratio of the 13

advanced countries rose from 36.2 percent to 41.7 percent during the same period. Oversupply of

highly-educated human capital has resulted in an increasing number of young people failing to find

jobs due to the gap between the quality of jobs available and that of jobs desired.

Labor Policy

Korea`s labor policy support is inadequate compared with other advanced countries. The enforcement

of active labor market programs such as vocational training and operation of job placement centers

to assist job seekers to enhance their competitiveness can help elevate the employment rate. The 12

major advanced countries [except Iceland where relevant statistics are unavailable] spent an average

of 0.7 percent of their GDP on labor market programs for the past 10 years, whereas Korea`s

expenditure for the same purposes was merely 0.11 percent of GDP in 2004. Although the expenditure

rose to 0.33 percent of GDP in 2011, it still remains far below the average level of the 12 countries.

Policy Suggestions

Based on the analysis above, we want to make the following policy suggestions:

First, more jobs should be created in the service sector by promoting high value-added and fast-

growing industries. Business services, health, and social welfare services are prime examples of rising

industries in the age of globalization and population aging, and will help create jobs particularly for

women and young people.

Second, more effort should be made to minimize the decline of employment share of the

manufacturing sector by improving investment environments and expanding infrastructure

investment as well as easing of regulations to stimulate employment.

Third, women-friendly working conditions should be provided to encourage women`s participation

in economic activity. The government should extend policy support to encourage employment of

women, and businesses should spare no effort to create a corporate culture that is favorable to women,

such as offering flexible job assignments for various stages in life and workplace childcare facilities.

Fourth, employment assistance programs should be improved to encourage young people to enter the

labor market, such as career guidance and counseling, worksite experience and vocational training,

as well as expansion of overseas internship projects. There is the need to change young people`s

perception of small and medium-sized businesses by improving their working conditions and housing

and childcare support programs. In the long term, the government should set up a strategic plan for

effective human resources development through the rationalization of the education system,

invigoration of meister high schools and improvement of recruitment systems.

Lastly, the government should expand the budget for labor market programs to strengthen vocational

training, upgrade employment information services, and offer tax and financial incentives to

businesses to stimulate employment.

[ HRI Monthly Economic Review, Vol. 2013-09,

September 2013, Hyundai Research Institute ] www.koreafocus.or.kr


- Korean Film Industry Renaissance

- U.K. Journalist Discusses South Korea’s Success and Disparate Social Realities

Korean Film Industry Renaissance

Song Gwang-ho & Im Mi-na Staff Reporters Yonhap News

1. Local Blockbusters Pack Theaters

It was the middle of the day at a movie theater in downtown Seoul on August 26. Despite the time,

the theater was packed with moviegoers. What was surprising was that nearly all of the movies

screened were locally produced with the exception of “Now You See Me,” a Hollywood hit.

“I come to see a movie once a week. Even though ticket prices have gone up by 1,000 won, I don`t

feel too burdened or bothered by it,” said Choi A-reum, 20, a college student who was with her

boyfriend. She added, “When I`m chatting with my friends, we usually talk about novels and TV

dramas, but my favorite things to talk about are films. These days, Korean blockbusters are my go-to

choice for movies.”

Despite a recent increase in ticket prices (see below) by major multiplex cinemas, eight local movies

have had more than 4 million viewers so far this year. As of August 26, the total ticket sales amounted

to 143.61 million.

Boom Sets Attendance, Sales Records

The audience turnout this year is sustaining a renaissance in the Korean film industry that began after

movie attendance sank to a record low of 147.75 million in 2010. The number of movie tickets sold

reached an all-time high of 159.72 million in 2011 and last year it surged to 194.89 million, a 21.9

percent year-on-year increase.

Given that a monthly average of 18 million viewers have seen local films so far this year, it is expected

that audience numbers will easily exceed the 200 million mark by the end of the year for the first time

in the history of Korean film industry.

The annual total ticket sales hit the 1 trillion won mark for the first time in 2009 and have stayed up:

1.157 trillion won in 2010; 1.236 trillion won in 2011; and 1.455 trillion won in 2012. This year box

office figures are projected to easily reach 1.5 trillion won. After all, Korea`s top three multiplex

chains ― CGV, Lotte Cinema and Megabox ― raised weekend ticket prices from 9,000 won to

10,000 won on July 25 and it had no effect on attendance. In fact, August ticket sales increased by

more than 7 million over July.

Driving Force behind the Boom

The solid performance of the film industry compared to most other sectors of the arts and culture

industries amid the economic slowdown makes the drastic increase in filmgoers that much more

conspicuous.

According to an analysis of the performance of 79 major local publishing companies, conducted by

the Korea Institute for Publishing and Copyrights, major publishing houses recorded 5.6 trillion won

in sales in 2012, a 4 percent drop from 5.9 trillion won in 2011.

The local animation industry also saw its turnover fall by 3.8 percent to 205.8 billion won (based on

listed companies) in 2012 from 216.4 billion won in 2011. Sales for the pop music industry slightly

rose, but the reported numbers are regarded as a marginal improvement compared to those of the film

industry.

Nevertheless, overall consumer spending on arts and entertainment has been on a steady rise.

According to the Korea Creative Contents Agency, the average amount of money Koreans spent on

arts and entertainment amounted to 143,000 won during the first quarter of this year, up 3.3 percent

from the same period of last year.

Still, the noteworthy increase in the amount of money spent on films can be attributed to the relatively

affordable ticket prices compared to other artistic performances. Admission prices for other culture

and arts performances are much more expensive: a musical performance costs between 50,000 won

and 140,000 won, a play between 30,000 won and 60,000 won; and a concert 100,000 won.

In addition to its price competitiveness, another factor in the Korean film industry`s strong box office

performance lies in the quality of the locally produced offerings, which can stand up to Hollywood

blockbusters.

“Korean films, characterized by interesting stories and attractive characters, have been praised as

being as good as Hollywood blockbusters. Notably, from the beginning of this year, the local film

industry has seen multiple movie releases in a variety of genres, which also affects the rising

popularity of Korean films,” said Lee Si-yeon, president of the public relations agency Heungmijinjin.

2. Tearjerkers to Global Productions

The quality comes through in a wide variety of genres. Not only highly anticipated films such as

global productions but also unexpected sleeper hits, one after another, have made an impact on the

local box office. This has enriched the local film industry in terms of diversification and

sophistication.

Success of Global Production Projects

The most highly anticipated film of the year has been “Snowpiercer,” a dystopian sci-fi thriller by

director Bong Joon-ho. Expectations for Bong`s English-language debut, made with an astronomical

production cost of 45 billion won and A-class Korean and international actors, have been high. Bong

first attracted global attention with his 2006 blockbuster, “The Host.” The cast of “Snowpiercer”

includes Hollywood action star Chris Evans of “Captain America,” Britain`s Tilda Swinton and John

Hurt, and famous Korean actor Song Kang-ho.

The movie has raked in approximately US$20 million, the equivalent to half of the total production

cost, from overseas sales so far. In fact, even before its premiere, the movie`s distribution rights were

sold to a total of 167 countries, a record for a Korean film.

In Korea, the movie has drawn almost 9 million viewers so far. The number of tickets that would

allow the film break even in terms of its total production costs are thought to be somewhere between

5 and 6 million.

Genre Films and Sleeper Hits Steal the Spotlight

Since the beginning of this year, genre films, which had previously failed to draw the interest of local

moviegoers, continued to perform surprisingly well at the box office. A primary example was the

slapstick comedy “Man on the Edge” starring Park Shin-yang. Director Jo Jin-kyoo`s skillful

depiction of a wacky gangster-turned-shaman added a new twist to the time-tested formula of the

Korean gangster comedy genre, sparking 3.89 million ticket sales.

The crime drama “New World” heralded the resurrection of the Korean noir genre, also exceeding

expectations by attracting 4.68 million cinemagoers, and “Miracle in Cell No. 7,” a heartwarming

comedy about a wrongfully incarcerated mentally challenged father, generated stunning interest.

The latter attracted 12.81 million viewers in its initial release, ranking as the third most popular movie

in Korea`s film history. Specifically, it earned 91.4 billion won in ticket sales, more than 15 times the

initial production cost of 6.1 billion won, making it one of the most profitable films of the year.

“The Berlin File” which stars A-list actors Ha Jung-woo and Jun Ji-hyun, and was shot overseas, was

widely acclaimed for its unconventional interpretation of inter-Korean conflicts. The action thriller

drew 7.16 million viewers.

“Covertness Comics Slumber,” also known as “Secretly Greatly,” which is a popular webtoon,

attracted 6.95 million viewers, making it one of the biggest box office hits of the year. The film`s

popularity was largely attributed to actor Kim Soo-hyun`s star power.

The mystery thriller “Hide and Seek,” starring veteran actor Son Hyun-ju, drew more than 4 million

viewers. The movie combined the stories of two families who believe strangers are living in hiding

among them, a topic with timely social resonance.

Rookie Directors and Veteran Filmmakers

“Cold Eyes,” a remake of a Hong Kong film, revolves around a tense showdown between a veteran

police officer and a criminal. The story lacked any romance between the male and female leads but

sold 5.5 million tickets. The collaboration between director Kim Byung-seo, a former

cinematographer, and director Jo Ui-seok is worthy of mentioning as an important factor in the film`s

box office success.

Director Heo Jeong achieved box office success with his first commercial feature film “Hide and

Seek.” One of the keys to his success was the brilliant way he merged a strange-but-true story with

sticky social issues such as Koreans` difficulties in owning their own home and unreliable public

safety.

Despite the fact that “The Terror Live,” director Kim Byeong-woo`s debut feature film, was set almost

entirely within the confines of a broadcasting studio, the thriller maintained a high level of suspense.

The thriller movie, produced with 3.5 billion won, amassed 5.5 million admissions. The film

attempted to touch on political and social issues, including the outcries of the underprivileged over

government corruption.

The participation of veteran producers such as the president of the film production company Cine

2000, Lee Chun-yeon (“The Terror Live”), and the president of Studio Dream Capture, Kim Mi-hee

(“Hide and Seek”), along with talented first-time feature film directors, resulted in higher quality

films.

Film critic Kang Yu-jeong said, “The emergence of talented rookie directors who are eager to reflect

their critical social views in their filmmaking has given a boost to the local film industry.”

There have also been some misses. “Mr. Go,” a film about a baseball-playing gorilla directed by Kim

Yong-hwa, was an all-time flop. The movie cost about 30 billion won to produce but sold only 1.32

million tickets. Although this film deserves credit for its technical achievements, the loose narrative

was considered a major reason for its disastrous box office performance.

“Mr. Go” showed not only upgraded CG (computer graphic) technology in the creation of the gorilla

but it did well at the box office in other parts of Asia. It grossed 20 billion won in ticket sales in China

and is the highest grossing film of the year in Thailand so far.

Film critic Jeong Ji-uk said, “Chinese viewers have shown their growing interest in 3-D movies.

Against this backdrop, enhancing Korean films` 3-D technology competitiveness could be leverage

to attract global projects.”

3. Small Production Studio ‘NEW’ Causes Commotion

“NEW,” a small local company that handles film investment and distribution, has been a major driving

force behind the rapid expansion of Korea`s film industry in the past few years. Although ordinary

moviegoers are likely to be unfamiliar with the company, NEW`s unprecedented success story has

been a hot topic.

When viewers are informed that the company was responsible for the investment and distribution of

movies such as “Miracle in Cell No. 7,” “New World,” “Cold Eyes” and “Hide and Seek,” they will

certainly say “Aha! That’s it.”

If the local film industry was still dominated by the top three film companies ― CJ E&M, Korea`s

most influential film investment and distribution company, also owning a cinema chain; Lotte

Entertainment, a late comer emulating CJ E&M; and Showbox/Mediaplex, the traditionally strong

Orion Group`s subsidiary ― the Korean cinema market would likely be the same size as in past. The

advent of newborn film distributor NEW, however, has led to the reorganization and subsequent

market expansion of the local film industry.

A Five-year Meteoric Rise

During the second half of 2008, NEW started its business as a distributor handling imported films

such as the Hollywood vampire movies “Twilight” and “The Twilight Saga: New Moon.” Since 2010

when the company drew 3.02 million viewers with the comedy “Hello Ghost,” it has continued to

increase its presence in the local film industry.

For the next two years, the company continued to show solid performances at the local box office

with a series of films, including “Late Blossom” (2010), “Blind” (2011), “Marrying the Mafia IV:

Unstoppable Family” (2011), “Unbowed” (2011), “Gone with the Wind” (2012), “All About My

Wife” (2012), and “Love 911” (2012). This year NEW hit the jackpot with the runaway box office

success of “Miracle in Cell No. 7,” followed by “New World” and “Cold Eyes.” NEW’s latest release,

“Hide and Seek” is expected to reach the 5 million viewer mark soon.

All of these films are low budget productions that cost less than 5 billion won. Nevertheless, these

movies outperformed, one after another, blockbuster films produced by large studios in head-to-head

competition. In short, David has defeated Goliath in every battle to emerge as a small-but-powerful

key player in the local film industry.

NEW was involved in the distribution of 15 films (11 local ones) last year, taking the fourth-largest

market share after CJ E&M, Showbox/Mediaplex and Lotte Entertainment. As of August this year,

however, the company topped the market share list, surpassing the three production giants.

This year, NEW has been involved in the screening of a total of 11 films to date, gaining a 22.5 percent

share in sales. Its performance at the box office has outdone CJ, taking 21 percent sales share with 31

films screened, Lotte Entertainment, at 12.3 percent with 24.5 films screened, and

Showbox/Mediaplex, at 11.8 percent with eight films screened.

What has enabled this small company with a starting capital of 2 billion won and a total of 27

employees to turn into a giant? It is simply the superior quality of its movies.

Quick Decision Making and Orderly Operation

NEW was founded by Kim U-taek, who previously led Showbox and Megabox, leading film

distributors in Korea. When Kim was in charge of Showbox, his nickname in the film industry was

“Midas.” Successive box office hits such as “Marrying the Mafia,” “Welcome to Dongmakgol,” “The

Host” and “D-War” earned him such a moniker.

By highly valuing individual employee`s enthusiasm and readiness to seize opportunities, Kim has

all of his 18 employees in the film business division vote on which films the company should invest

in. He tries to select films that the majority recommends. In this way, he believes that employees can

feel motivated and therefore will dedicate themselves to whichever film they are working on.

Jang Gyeong-ik, who is in charge of the company`s film business division, explains the process. “Our

company`s strength is unmatched by the big players because it is derived from an incomparable

system that works organically. To produce a film, every employee from the highest to the lowest rank

in the company`s hierarchy works enthusiastically as if the film they are working on is their own. Our

company can be likened to a social club in which people work based on close relationships and freely

exchange their opinions. Over the past five years, our company has evolved into a larger organization,

but we don`t feel any difference between the past and the present. That’s because we work as if we

are a close family.”

As for the employees` work efficiency, Jang explained, “It is quite different from what other

companies call efficiency. When we have to make a decision, we discuss it thoroughly until everyone

can be satisfied with the decision. I know this will sometimes lead to a detour instead of a shortcut.

But when everyone comes to consensus, we can take action more promptly. If there are some members

who can`t accept the decision and as a result work like robots, we aren`t able to make rapid progress

and gain the desired results. Our employees do their own parts on their own accord, which, I think,

helps us make fast progress.”

NEW is preparing to be listed in the stock market next year. Its core principles remain firm. “There

will be no difference between before and after a planned IPO. Whenever we are working on a film,

we`ll do our best to make a higher quality work than in the past. As more capital flows in, we`ll have

more options. But there`ll be no difference in the way we work,” Jang said.

Breathing Fresh Air into the Local Film Industry

“NEW`s streamlined organization makes it possible for the company to make quick decisions and the

company is very good at finding films worth investing in,” said Shim Jae-myung, president of Myung

Films, who is one of the most influential filmmakers. “Also, they have excellent ability to market and

distribute films that moviegoers can favor. NEW`s quantum leap attests to the fact that if a movie has

quality content with competitive advantage instead of other visual and technical attributes, it will be

able to achieve a strong performance at the box office.”

She added, “The local film market shouldn`t be dominated by two heavyweights CJ and Lotte. In this

sense, the emergence of NEW, which can act as a force to keep the two big companies in check, is

symbolic and significant. The company also deserves praise for its bold marketing strategy to

distribute films with sensitive topics like ‘Hide and Seek,’ ‘Unbowed,’ and ‘Mobius,’ which was

directed by internationally acclaimed but locally unpopular director Kim Ki-duk. This is something

large distributors can`t do.”

“Most of the films that have been produced by NEW don`t have star-studded casts or box-office

directors. The company explores projects that are less likely to be picked up by large companies and

develops them into unexpectedly high quality films,” said Nam Dong-cheol, a film programmer at

the Busan International Film Festival.

Choe Yong-bae, vice president of the Korean Film Producers Association, said, “NEW`s rapid growth

is wholeheartedly welcomed. It`s undeniable that up until now the company has achieved outstanding

results by making sensible moves within the well-ordered framework built by large companies. So,

from now on, the company needs to work together with other filmmakers to build a new framework

for the local film industry.”

4. Screen Monopoly and Oligopoly Needs Resolution

Experts attribute the Korean film industry`s stellar growth this year to the production of films from a

diverse range of genres and the emergence of a wealth of talented young directors. However, they

share the view that sustainable growth requires the resolution of the industry`s screen monopoly and

oligopoly.

“Unlike last year when films with higher chances of box office success were produced in large

quantities with many of them heavily dependent on a large cast of actors, many movies that have been

screened this year include socially critical views created by talented young directors. This means that

quite a few movies have staked their success more on the strength of the screenplays rather than

technical finesse,” said movie critic Kang Yu-jeong.

She added, “Given that directors, who are well aware of the importance of commercial viability, are

putting more emphasis on a film`s ability to communicate with audiences over their artistic value, the

Korean film industry`s strong box office performance is expected to continue for some time.”

“However, the booming industry also shows a shortcoming in that there are few movies that deal with

thought-provoking themes, a phenomenon found in the industry`s earlier renaissance in the 1990s

and 2000s. This is the dark side of industrialization,” she said.

Film critic Jeon Chan-il said, “Producers` improved planning capabilities have allowed such movies

as ‘The Terror Live’ and ‘Hide and Seek’ to come out. And as films with a certain degree of quality

are expected to be released one after another, we may assume the industry will continue to enjoy the

ongoing boom for a while.”

Choe Yong-bae, who also heads the production company Cheongeoram and was in charge of the

production of “The Host” in 2006, cited the improved market structure that was built after the industry

went through difficult times and the revival of ancillary services as the major forces driving the

Korean film industry`s current renaissance.

He added, “The stabilization and invigoration of ancillary services businesses driven by the IPTV

market have contributed to the increased availability of production funds. One thing that should be

noted is that the amount of funds invested into film production has increased in return for ancillary

rights for the service provision of contents. A growing number of investors offer 30 to 40 percent of

the total production cost in exchange for secondary rights to provide IPTV or cable TV services. As

the ancillary services market has become stabilized in terms of profitability, investment risk has

declined significantly.”

As many experts point out, however, if the local film industry wants to make the current boom

sustainable, it is necessary to build a firm foundation that can allow films of various genres to be

produced.

“With large companies` marketing campaigns having a powerful impact on the market and the

polarization between box office hits and box office flops intensifying, harmful consequences from

the screen monopoly and oligopoly exploited by big companies are too many to enumerate,” said film

critic Jeong Ji-uk.

He added, “Excessive focus on films that can guarantee a higher likelihood of box office success can

lead to producing movies of a similar genre and style, thus giving rise to another dark age in the local

film industry that happened after 2006. Filmmakers should work with talented young directors to

constantly generate screenplays from a variety of genres, improve domestic sales, and develop global

projects suited to overseas markets.”

Shim Jae-myung lamented the current market conditions by saying, “There is a wide gap between the

largest to fourth-largest box office figures and below the fifth-largest box office figures. With local

cinemas screening only commercially viable movies, the phenomenon of the rich getting richer and

the poor getting poorer is intensifying.”

She stressed, “Contents per se matter, but the logic of distribution and competition among distributors

matter more. Only when a market structure in which diversity can take root is established, the Korean

film industry will really be able to grow.”

Choe Yong-bae insisted, “A film`s commercial success is one thing and the issue of how to divide the

profits is another. Right now there are unfavorable conditions that were created during the difficult

years when local films were unpopular; these conditions remain unchanged. The problems are getting

serious. They stem from the monopolistic practices carried out by large companies in the areas of

production, distribution and screening. To resolve the problems of monopoly and oligopoly in the

market, the government should take the initiative in drawing up a new institutional framework.”

[ August 28, 2013 ]



U.K. Journalist Discusses South Korea’s Success and Disparate Social Realities

Kim Gyeong-eun Staff Reporter The Chosun Ilbo

Last November a British journalist contributed a critical essay on South Korean beer to a local

newspaper, calling it “tasteless” and saying it is inferior to Taedong River beer produced in North

Korea. His provocative comments caused heated debates among South Korean beer consumers and

breweries alike.

Shortly after his polemic, Munhakdongne [Literary Community] Publishing Corp. released a

translation of his book, “Korea: The Impossible Country.” Its Korean title can be literally translated

as “A Country that Achieved Miracle and Lost Happiness.” The author is Daniel Tudor, 31, who until

recently has been working as a Seoul correspondent of The Economist.

In an interview with him which took place in Gwanghwamun, central Seoul, on August 5, Tudor

recalled the reaction to his beer assessment with a smile. “Many people got really mad at me, even

calling me a communist,” he said.

He explained, “Actually, the North-South comparison comes from my real experience. I did taste

North Korean beer in Pyongyang when I was dispatched as part of the media corps accompanying a

South Korean delegation to the North under the Roh Moo-hyun government. Ever since I`ve been in

Korea, I have been quite unhappy about the limited range of beer choices provided by local brewery

companies.”

Perhaps his discontent motivated him to team up with two Korean friends and open “The Booth,” a

beer bar in Gyeongridan-gil, Seoul, in May. The bar offers its own beer, which is overseen by a

brewing specialist. A branch also has opened near the bustling Gangnam subway station.

Born in Manchester, England, Daniel Tudor read philosophy, politics and economics at Oxford

University. As he puts it, he “fell in love with” South Korea, after witnessing the country`s enthusiasm

and festivities when he visited during the 2002 FIFA World Cup, co-hosted by Tokyo and Seoul. “On

the street, strangers could easily become friends by playing football together and they ended up

drinking together as well. That was something so uniquely energetic, and I started to think South

Korea has a special vibe and dynamism,” he said.

In 2004 he came to stay for a long sojourn in Seoul, teaching English at private language institutes.

He also worked at a U.S. securities company, and a global business division of Mirae Asset, a Korean

financial firm. In 2010, he became the Seoul correspondent for The Economist.

In his book, Tudor points out that “the Western media tend to have a condescending attitude when

dealing with issues in South Korea.” He elaborates, “Managing editors in New York or London

headquarters do not have sufficient knowledge of South Korea. Instead of trying to understand the

country`s specific geopolitical context, they are prone to amplify a remote possibility of ‘a fanatic

North Korean dictator to stage a war with nuclear weapons.’ When I argue that a war on the Korean

peninsula is very unlikely to happen, they are disgruntled, saying ‘Daniel, you are just talking like a

Korean.’”

When asked about his opinion on the ways in which popular Western media describe the dispute on

Dokdo island [Takeshima as known in Japan] between Korea and Japan, he said, “Foreign journalists

lacking knowledge of East Asia`s historical context easily dismiss South Korean claims as

nationalistic naivety, and they throw an easy conclusion that the two countries should reconcile.”

In a similar vein, he was also critical about the latest remarks by Japan's Finance Minister and Deputy

Prime Minister Taro Aso, who suggested that Japan should follow the Nazi example of making

changes in the country`s constitution without transparency or public oversight. “Oh···. I think he is

insane···. I do not understand why postwar Japan and Germany had to tread such different paths in

terms of making sincere apologies.”

He also critically reflects on his own country`s colonial past and the problems of distorted historical

writing. “In fact the British Empire also caused a lot of pain to China and India,” he said. “At school,

however, I did not learn much about Opium Wars. Instead, history classes emphatically taught us that

Britain has been a benign international actor. These distortions in historical writings should be

corrected.”

As he maintains deep affection toward South Korea, Tudor says he wished to make known the realities

of South Korea to the global audience. In a sense, his book follows “The Koreans,” written in 1998

by Michael Breen, a British journalist and consultant. Tudor finds raison d`être for his book in

comparing it to Breen`s. “Fifteen years is a long time. During these years a sea change can take place.

Especially for a country as dynamic as South Korea, 15 years may well be equivalent to a time span

of a century elsewhere.”

To write the book, Tudor interviewed nearly 70 Koreans in different parts of society. They included

Yi So-yeon, Korea`s first astronaut; and Hong Myung-bo, the legendary captain who led the nation`s

2002 FIFA World Cup team. He also met with taxi drivers, office workers and housewives, whose

stories added breadth. Quite surprisingly, he even interviewed a shaman priestess (or “mudang” in

Korean).

“Seoul is a futuristic urban space. However, Korean people in Seoul do not hesitate to ask a shaman

to conduct a purifying ritual when they open a business. What also struck me is the fact that well-

educated college graduates also tend to go ask fortunetellers when they are stuck with personal

problems or making important decisions. From these examples, I learn South Korea`s flexibility.

South Korea is a highly dynamic society. For another instance, in the past decade, South Koreans fast

graduated from their traditional preference for sons over daughters. Now people tend to favor a baby

daughter than a baby boy. Japan can`t make such a drastic change, but Korea can.”

As seen from his mixed feelings shown in the title of his book translated in Korea, “A Country that

Achieved Miracle and Lost Happiness,” Tudor discuses not only the country`s successes but also its

wounds resulting from cut-throat competition in tandem with high-speed economic growth. “It was

important to be honest about both losses and achievements,” he says.

According to him, the South Korean government and people are overly concerned to show a

“beautiful” story about the country. For example, despite the fact that many expats living in Seoul are

big fans of budae jjigae (army camp stew), South Korean people often seem to feel ashamed to talk

about the popular dish. This implicit rejection comes from the fact that they relate the origin of the

stew to the country`s memory of U.S. military bases and its impoverished past after the Korean War,

Tudor points out.

Similarly, Tudor says that the public tourist agency does not promote restaurants specializing in barley

rice as they could be reminiscent of Korea`s erstwhile poverty when people could not afford to

consume their traditionally preferred white rice. “I wanted to say to South Koreans: I admire your

country, and your country is brilliant. Thus, you do not need to compare your country to others all the

time. Believe in yourself and don`t be depressed by underestimating and comparing yourself with

others,” Tudor says.

“Statistical figures show that Korean people on average live longer than people in the West. The

country`s crime rate is lower and the education level and employment rate higher. Its history runs as

long as five millennia,” he says. “Despite all these rich assets, Korean people are busy looking for

chances to study in the U.S. and they are obsessed about learning American English. Where do we

find serious efforts to keep and nurture South Korea`s own identity?”

On August 6, Tudor returned to Britain for a month-long vacation, after tendering his resignation to

The Economist in July. Upon his planned return to Seoul, he will begin to write a novel about Yi

Seok, a singer and the last prince of the Korean Empire, focusing on his life story that parallels the

checkered history of modern Korea.

[ August 8, 2013 ]



- Ceaseless Schemes of Foreign Powers to Keep the Korean Peninsula Divided

Ceaseless Schemes of Foreign Powers to Keep the Korean Peninsula Divided

Jang Dong-seok Publications Critic

“The History of the Division of the Korean Peninsula”

By Lee Wan-beom, Academy of Korean Studies Press, 942 pages, 48,000 won

Although the Korean War is probably the first thing to come to mind when discussing the “division

of the Korean peninsula,” the origin and the truth behind the division go a long way back. China`s

Ming Dynasty and Japan tried to divide Joseon during the Japanese Invasions of Korea in 1592-1598

and there was yet another attempt to split the peninsula during the Russo-Japanese War in the early

20th century.

However, most of us are unaware of these facts because “the division was not actually realized” or

“there has not been enough study on the subject,” as the author states in the preface of the book.

The book covers the period from the Japanese Invasions to the Korean War. It tracks the schemes of

surrounding foreign powers and presents future outlook. On one side were China and Russia, dubbed

the “continental powers.” The other consisted of Japan and the United States, namely the “maritime

powers.”

During the Japanese Invasions, Ming and Japan engaged in multiple rounds of peace talks through

which they maneuvered to divide Joseon. The writer delves into the 16th century war, saying it was

the first attempt by foreign powers to split the Korean peninsula. Ming tried to take over Joseon,

which had been an annoyance in many ways. Japan opted to wage a war “to seize Joseon`s land” in

an attempt to expand its territory and to put internal disorder to rest. Toyotomi Hideyoshi had realized

that it was unrealistic to invade Ming. He tried instead to seize four provinces of Joseon, including

Jeolla and Gyeongsang, at all costs.

The next attempt at dividing the Korean peninsula occurred in the late 19th and early 20th centuries,

when the maritime and continental powers collided. Japan defeated China and Russia one by one and

eventually seized the Korean peninsula.

In the process, the Korean Empire “discussed the possibility of neutralization in order to maintain

independence from not only Japan but also Russia.” King Gojong sent secret envoys to identify the

intents of other countries, including the United States. Russia suggested to Japan that Korea be

divided along the 38th parallel, but Japan rejected the idea.

The book mostly discusses the division along the 38th parallel, which was conducted under pressure

from Western powers. The author argues that “the historic circumstances right before the liberation

on August 15, 1945 should be explained,” in order to explore the truth behind the division. He says,

“The foreign powers decided to divide up the peninsula and on top of that, Korean independence

movement had not been successfully integrated. Thus the internal and external structures of division

were almost determined at this period.”

Even before Korea`s liberation, the United States executed plans to occupy Japan and the Korean

peninsula while seeking to “end the war before Soviet intervention.” The Soviet Union sought to keep

Korea from being dominated by the United States or any other country. As a result, the 38th parallel

plan was finalized at the Potsdam conference, weeks before the war ended. Thus the peninsula

remains divided until today.

The division, however, did not resolve problems concerning the peninsula. During the Korean War,

the United Nations forces advanced north of the 38th parallel and Chinese entered the war. Why did

the maritime powers and the continental powers persistently seek to divide the Korean peninsula?

The answer obviously lies in history and it is closely related to the future of the peninsula as well.

The author describes the Korean peninsula “a beachhead for making inroads into the continent for

the maritime forces and a passageway to the ocean for the continental powers.” As for its future, he

says, “The peninsula bears both the maritime and continental aspects. Therefore, it can be guaranteed

independence when it serves as a buffer between the continent and the ocean. Peace can be secured

if friendly relations can be built with both the continental and maritime powers surrounding the

peninsula.”

“The History of the Division of the Korean Peninsula” is a meaningful book in that it analyzes the

present and the future of Korea, where the war has still not ended, by looking into history. To illustrate

the ambitions of the powers over the peninsula, the author provides evidence from “The Annals of

the Joseon Dynasty” as well as diplomatic documents exchanged between Japan and Russia during

the 19th and early 20th centuries and classified documents that were kept at the U.S. National

Archives and Records Administration. The book presents a frame of reference and basis for judgment

of history based on objective facts.

[ The Hankyoreh, August 19, 2013 ]



- Choi Yang-sik: “Gyeongju and Istanbul have a long history of exchange.”

Choi Yang-sik: “Gyeongju and Istanbul have a long history of exchange.”

Jang Seung-gyu Staff Reporter Hankyung Business Weekly

Gyeongju, capital of the Silla Kingdom for a thousand years, will be transported to Istanbul, Turkey,

with the Seventh Gyeongju International Culture Expo. This will be the second time the expo has

been held overseas, following its opening at Ankor Wat in Cambodia in 2006. Accordingly, the 20-

day event this year has been renamed the Istanbul-Gyeongju International Culture Expo 2013.

The basic design motif of the Korean Pavilion, to be set up in the downtown area, has two railings

named Cheongungyo and Baegungyo (Blue Cloud Bridge and White Cloud Bridge) adorning the

stairway leading up to Bulguk Temple. It will be as if the temple were transported to Istanbul.

“The expo will serve as an opportunity to promote Gyeongju as a city of history and culture and a

stepping stone for the opening of the ‘New Silk Road Era,’” said Gyeongju Mayor Choi Yang-sik,

61, when we met him in his office on August 6. This year`s expo, he said, has drawn the participation

of some 10,000 culture and art figures from 40 countries, and is expected to attract more than 2.5

million visitors.

Q. What kind of event is the Gyeongju Culture Expo?

A. The expo was launched in 1998 and has been held six times so far, attracting more than 10 million

visitors in total, including some 1.08 million foreigners. There are all kinds of expositions held all

over the world, but ours is the only one built on the theme of culture. It was a choice that shows great

foresight. My predecessors left behind a wonderful event for the city. The expo is not confined to any

one genre but encompasses all fields of culture and the arts. It transcends time as well, covering

ancient times to the present.

Q. Why is the expo being held overseas this year?

A. This is the age of globalization. Culture too has to reach out to the world and the people of other

countries. One thousand years ago Gyeongju was an international city, open to the world. It is our

goal to open the city up to the world once again. Our first instance of exporting culture was the expo

held in Ankor Wat, Cambodia in 2006. Some 450,000 people visited the expo over a 50-day period.

Q. What kind of city is Istanbul?

A. Gyeongju and Istanbul have a long history of exchange. They stood at either end of the Silk Road,

the route of exchange for the civilizations of the East and the West. Attesting to this history are a

number of relics, such as the stone figure of a Western man discovered in the royal tomb named

Gwaereung and the Roman glass cup found in the Tomb of the Heavenly Horse. There are few cities

in the world that lasted as capitals for a thousand years, as Gyeongju and Istanbul did.

Q. Did you have any problems in organizing the event?

A. There are many variables in holding an event overseas. We once planned to hold the expo in

Thailand, but that fell through because of the internal situation in the country. Istanbul is a global city

of 15 million people, much bigger than Seoul. At first the city did not show much interest in

Gyeongju. But former President Lee Myung-bak handled the issue on a diplomatic level when he

made a state visit to Turkey. The government provided active support for the expo, including funding.

Q. Could you tell us about the event to be held in Istanbul?

A. The Korean Pavilion, which fuses traditional culture with information technology, will be set up

in Eminonu Square, the old city center, which has a floating population of two million people. The

pavilion is divided into five theme sections: “Mi: Graceful Beauty” highlighting the gold culture of

Silla and Korea in modern times; “Heung: Exciting Gaiety” featuring a multimedia performance

combining traditional Korean culture and information technology; “Yeon: Ties of Destiny” tracing

the connection between Korea and Turkey via the Silk Road; “Gi: Energetic Spirit” showing Korea`s

economic development; and “Jeong: Affection” featuring a documentary on the friendship between

Korea and Turkey. We will also be holding street parades three times a day from Istiklral Street to

Taksim Square, a busy part of Istanbul comparable to Myeong-dong in Seoul. The K-pop Concert is

attracting a lot of attention thanks to featured acts such as Super Junior and FT Island. The novelist

Lee Mun-yeol will participate in the Korea-Turkey Literature Symposium, and leading photographers

such as Kim Jung-man and Koo Bon-chang will be featured in the Korean Photography Exhibition.

Q. What is the expected economic effect of this year’s expo?

A. We have set our target at 2.5 million visitors. Aside from an estimated 20,000 Korean tourists, the

remainder of the visitors will all be from other countries. The expo is a good opportunity to give them

a good impression of Korea and the city of Gyeongju. The expected economic effects, direct and

indirect, include production worth 120.8-409. 2 billion won, value added worth 125.6-182.5 billion

won, and employment of 5,219-4,092 persons. Turkey is a nation with great growth potential,

marking the highest economic growth rate among OECD countries in 2010 and ranking as the 17th

largest economy in the world in 2012. It has a great domestic market of 74 million people. Thanks to

the Korea-Turkey Free Trade Agreement, which went into effect in May this year, we hope to see

results in varied areas such as exports and investment.

Q. Turkey is also a “brother nation” which sent troops during the Korean War.

A. The fact that we are holding a cultural expo in a country that sent troops to help us during the

Korean War is an indication of how much we have grown. The surviving veterans in Turkey call

themselves “Koreli” (Turkish for “Korean”) and take great pride in their participation in the Korean

War. We have prepared various events to express our gratitude to them, including a special seating

section in the opening event and a luncheon.

Q. How many tourists does Gyeongju attract these days?

A. Last year Gyeongju attracted 12 million tourists. The number is rising every year. I caught a taxi

this morning and the driver said there seemed to be more tourists this year compared to last year. We

are aiming for 15 million within the next three years and 20 million in the next five years.

Transportation to Gyeongju has been radically improved and that has made the greatest difference. In

2010 the high speed rail (KTX) opened and by the end of next year the Ulsan-Pohang expressway

will be completed. Moreover, expansion of the Eonyang-Yangcheon section of the Seoul-Busan

expressway from four lanes to six lanes is now under way. The transportation situation keeps getting

better.

Q. Gyeongju Donggungwon opens this September. What kind of place is it?

A. Gyeongju Donggungwon, located at the entrance of Bomun Resort, combines a large botanical

garden, a bird park featuring all kinds of flowers and birds, and agricultural activity center. Donggung

(meaning “East Palace”) is the name of a royal palace of the Silla Kingdom, west of Anapji pond in

Gyeongju. Records show that state banquets were held at the palace on ceremonial occasions and

when distinguished foreigners came to visit. “Record of the Three Kingdoms” (Samguk sagi) states

that in 674 (14th year of the reign of King Munmu), a pond and artificial mountain was installed in

the palace and all kinds of rare flowers, birds and animals were raised. Gyeongju Donggungwon can

be seen as a modern interpretation.

[ No. 924, August 12, 2013 ]



COPYRIGHT

Korea Focus is a monthly webzine (www.koreafocus.or.kr), featuring commentaries and essays on Korean politics, economy, society and culture, as well as relevant international issues. The articles are selected from leading Korean newspapers, magazines, journals and academic papers from prestigious forums. The content is the property of the Korea Foundation and is protected by copyright and other intellectual property laws. If it is needed to reprint an article(s) from Korea Focus, please forward your request for reprint permission by fax or via e-mail. Address: The Korea Foundation Seocho P.O. Box 227, Diplomatic Center Building, 2558 Nambusunhwanno, Seocho-gu, Seoul, 137-863, Korea Tel: (82-2) 2151-6526 Fax: (82-2) 2151-6592 E-mail: [email protected] ISBN 979-11-5604-031-6

Publisher Yu Hyun-seok Editor Lee Kyong-hee Editorial Board

Choi Sung-ja Member, Cultural Heritage Committee Hahm In-hee Professor, Ewha Womans University Hong Chan-sik Chief Editorial Writer, The Dong-a Ilbo Hyun Jung-taik Professor, Inha University Lee Charm CEO, Korea Tourism Organization Kang Byeong-tae Chief Editorial Writer, The Hankook Ilbo Kim Hak-soon Professor, Korea University Kim Yong-jin Professor, Ajou University Peter Beck Korea Represetative, Asia Foundation Son Ho-cheol Professor, Sogang University

ⓒ The Korea Foundation 2013 All rights reserved.


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