Korea Focus 2013 09

Table of Contents

- Korea Focus - September 2013 - TOC - Politics 1. A Lawmaker Charged with Plotting Rebellion 2. Crucial Questions on ‘Denuclearization of the Korean Peninsula’ 3. A Guide to Discern Pyongyang-Beijing Relations 4. ‘Reevaluation of the Korean War’ by Seoul, Washington, Beijing - Economy 1. Concern about Obama’s Return to Protectionism 2. Future of Nuclear Power Plants 3. Exit of HSBC from Korea 4. Park Geun-hye’s European Dream 5. Let’s Speed Up Korea-China FTA Talks - Society 1. Meaning of U.S. Monuments to ‘Comfort Women’ 2. [Debate] Strengthening Chinese Characters Education in Elementary Schools 3. Portals Killing Internet Korea 4. Caution Advised on Immigration as Solution to Population Aging 5. What Should Korean Scholars Research 6. Korean History and National College Entrance Exam - Culture 1. Neo-Confucian Learning in Korea Forgotten Origins of Modernity and Platform for the Future 2. Musical Stands at Forefront of Culture Industry 3. Writing in the Age of the Smartphone 4. The Welcome Storm ‘28’ by Jeong Yu-jeong 5. Nepalese immigrant Worker Realizes Korean Dream - Essay 1. Convergence of Information Technology and Art 2. Estimation of North Korea’s Nominal Per Capita GDP in 2012 3. Kaesong Industrial Complex as Key to Peace on Korean Peninsula - Features 1. Jasmine Lee’s First Year as First Naturalized Korean Lawmaker - Book Reviews 1. Art Historian Says ‘Koreans and Japanese are Twin Brothers’ - Interview 1. Park In-bee “My life as a golfer seems to have just passed springtime to enter into summer.” - COPYRIGHT

- A Lawmaker Charged with Plotting Rebellion

- Crucial Questions on 'Denuclearization of the Korean Peninsula'

- A Guide to Discern Pyongyang-Beijing Relations

- ‘Reevaluation of the Korean War’ by Seoul, Washington, Beijing

A Lawmaker Charged with Plotting Rebellion

Editorial The JoongAng Ilbo

The National Assembly has overwhelmingly waived the parliamentary immunity of Rep. Lee Seok-

ki to allow his arrest on charges of plotting to overthrow the government. The opposition Unified

Progressive Party (UPP) member is the first sitting parliamentarian in the nation`s constitutional

history to be accused of promoting an insurrection. He will be interrogated by the National

Intelligence Service (NIS) after his arrest. The investigation will focus on his objectives in setting up

a clandestine cell called the “Revolutionary Organization” (RO) within his party, its activities and his

remarks made to the group. His motives will be the basis of the verdict on the case.

If the court accepts a tape-recording of a RO meeting as evidence and Lee is found guilty, the small

leftist party`s legal status will be placed in a grave juncture. Lee Jung-hee, head of the UPP, and other

leading figures of the party claim that the RO session in question was a regular orientation meeting

for party members, held at a religious retreat center in Seoul last May. If the claim is true and a guilty

verdict is rendered, the party should be seen has having conspired against the state at a regular activity.

A petition also has been filed with the Ministry of Justice calling for dissolution of the progressive

party by means of a ruling by the Constitutional Court. But apart from the judicial process, the UPP

should have apologized to the nation and censured its members by now if it was a normal political

party. To the contrary, the party is mounting an all-out defense of the accused and denouncing law

enforcement authorities.

UPP chairwoman Lee Jung-hee has asserted that the May meeting had 130 participants but only one

or two of them mentioned stealing guns and blowing up key government facilities. The remarks were

“nothing more than jokes and were laughed away,” she said. She also claims that the tape recording

in question, which is in the hands of the NIS, was made at one of seven side discussion meetings after

Lee addressed the full session.

The UPP is the third largest party in terms of the National Assembly seats occupied and annually

receives 2.7 billion won in state subsidies. Is it permissible for such a political party to joke about

attacks on key state installations at its formal orientation session? If that is the case, the party should

not be regarded as a normal political entity serving the public interest. In both Lee Seok-ki`s address

and at the side discussions, party members were allegedly told to make political and military

preparations for an inevitable war between the two Koreas and for attacks on key state and industrial

infrastructures in South, such as telecommunication stations, data processing centers and oil storage

facilities. The UPP leadership is engrossed in glossing over these deplorable activities under the guise

of making jokes.

Lee Seok-ki and his sect are believed to be making up the progressive party`s core force. The UPP

leadership`s recent behavior raises speculation that the party may be engaged in activities of even

graver consequences. We cannot help worrying about whether a political party dominated by such a

perilous force should be paid a state subsidy and about the party`s raison d’etre itself. If the UPP

wishes to continue to function in state politics, it must explicitly apologize to the nation for the

controversy it has ignited and clearly state that it will abide by our constitutional values and free

democratic order.

[ September 5, 2013 ]

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Crucial Questions on ‘Denuclearization of the Korean Peninsula’

Jee Hae-bum Editorial Writer The Chosun Ilbo

The Seoul-Beijing summit held in late June was considered successful in general, but it failed to get

A`s in all sectors. Among other things, it seemed difficult to achieve much on the North Korean

nuclear issue, the matter of gravest concern in the international community. This is because China

maintained a rigid attitude toward this issue. China adamantly opposed the use of the term “North

Korea” in the “North Korean nuclear issue” section of a “joint statement on the future vision for

Seoul-Beijing relations.” As a result, the joint statement ended up being full of vague expressions,

such as “denuclearization of the Korean peninsula,” instead of “denuclearization of North Korea,”

and “related nuclear weapons development,” instead of “North Korea`s nuclear weapons

development.”

When she met chief editorial writers from major media companies on July 10, President Park Geun-

hye said, “We decided to accept such expressions in full consideration of China.” In a meeting with

members of the Kwanhun Club, a fraternity of senior journalists, in Seoul, Foreign Minister Yun

Byung-se also said, “Chinese leaders used various expressions to clarify their firm intention to

achieve the denuclearization of North Korea.” He suggested that the “denuclearization of the Korean

peninsula” is in fact the “denuclearization of North Korea.” But this issue is too grave a matter for

Seoul to interpret from its own self-centered angle.

Some researchers warn that the term “denuclearization of the Korean peninsula” could prove

disadvantageous only to South Korea. In its summit agreement with Beijing, Seoul locked itself into

the “denuclearization of the Korean peninsula,” thereby ceding the possibility of using bargaining

chips, such as reintroduction of U.S. tactical nuclear weapons or its own nuclear arms development,

in its diplomatic dealings with Pyongyang, Beijing, or Washington, while the North`s nuclear arsenal

threatens to completely annihilate the South`s achievements over the past six decades, the researchers

argue.

“China got what it wanted. It succeeded in stopping ‘a nuclear domino effect in Northeast Asia,’

which it had been so much worried about,” said Kim Han-kwon, a researcher at the Asan Institute for

Policy Studies.

The “denuclearization of the Korean peninsula” is linked to Beijing`s strategy for gaining advantage

in its dealings with Washington by strengthening relations with both Seoul and Pyongyang. It is

difficult for Beijing to seek the denuclearization of the Korean peninsula and stability of the North

Korean regime simultaneously. Beijing wants Pyongyang to abandon nuclear weapons, but has no

intention of putting heavy pressure on the reclusive country, including suspension of food and energy

supplies, to achieve its goal. This is because Beijing does not want the regime to collapse or its society

to become unstable.

In an interview with Foreign Affairs for its May issue, Chinese Ambassador Cui Tiankai in

Washington said that his country has been continuing to offer humanitarian aid to Pyongyang even

after the latter`s third nuclear test. The North would never abandon its nuclear weapons program in a

situation where its closest ally keeps giving aid to it. To attain its two conflicting goals, Beijing is

giving Pyongyang breathing space and helping Seoul save its face. Everybody knows this is a strategy

aimed at holding the Washington-Tokyo alliance in check.

There is some speculation that since the Xi Jinping administration took power, Beijing has been

giving greater importance to denuclearization in its North Korea policy. At the Kwanhun Club forum,

Foreign Minister Yun said, “China has changed its Korean peninsula policy priority order from

‘stability of North Korea, denuclearization, and dialogue’ to ‘denuclearization, stability of the Korean

peninsula, and dialogue.’”

But Professor Han Xiandong of China University of Political Science and Law said, “Since 2009,

China has given priority to the ‘maintenance of stability of the North Korean regime’ in its Korean

peninsula policy.” He suggested that there has been no change in China`s basic strategy, even though

it has become a little tougher in its dealings with the North Korean regime.

All this shows is that it is very unclear whether Beijing has any strong intention of seeking North

Korea`s denuclearization and how it could achieve the goal. The problem is Beijing`s ambivalent

attitude to achieve denuclearization while maintaining the North Korean regime. If it is to make any

progress in the North Korean nuclear issue, Beijing should come off the fence, and clarify its position

on the “denuclearization of North Korea” and reconsider giving free aid to the North. This should be

the next goal of Seoul`s diplomacy vis-à-vis Beijing.

[ July 17, 2013 ]



A Guide to Discern Pyongyang-Beijing Relations

Lee Hee-ok Professor and Director Sungkyun Institute of China Studies Sungkyunkwan University

Before it decided to reopen dialogue with Seoul, Pyongyang must have closely watched the Beijing

summit between South Korea and China last June with two focal points in mind. One was the intensity

of Beijing`s resolve to bar North Korea`s nuclear program, and the other the reliability of China as

its closest ally and patron. In the end, the North should have acknowledged the newly-installed

Chinese leadership`s firm commitment to press for its denuclearization, as anticipated, while finding

no coercive preconditions placed on it for resuming the stalled six-party denuclearization talks. On

that understanding, following the summit, the vice foreign ministers of North Korea and China held

strategic talks on the sidelines of the ASEAN Regional Forum in Brunei.

Subsequently, North Korea began working-level talks with South Korea on reopening their joint

Kaesong (Gaeseong) Industrial Complex, which it had arbitrarily closed last April. Pyongyang also

maneuvered to have dialogues with the United States and Russia, as suggested by China. In an unusual

move, Beijing had previously made public its wishes to see the Kaesong issue resolved through inter-

Korean talks. Although North and South Korea are expected to wage a “war of nerves” for some time

over the border-area industrial park and other pending issues, it may be widely accepted that the two

Koreas have now entered into a “stage of dialogue.” Noteworthy are some background developments

that have led to the stage.

First, notwithstanding its nuclear capacity, North Korea desperately needs a breakthrough to deal with

its pressing economic constraints and underfed people. Upon seeing China joining South Korean and

U.S. intolerance of its nuclear development, the Pyongyang regime should have concluded that an

intransigent approach of confrontation and provocation will no longer be effective. To be sure, Beijing

might have drawn a sort of “red line” for Pyongyang in light of the possibility that its unrestrained

nuclear threat may ignite a low-level regional conflict.

On the other hand, China seems to be paying attention again to the strategic value of North Korea in

its “anti-access strategy” against America’s new military and diplomatic “pivot” or “rebalance”

toward Asia. Especially, Beijing remains stuck to its notion that a fundamental resolution of the North

Korean nuclear issue is difficult because it is intertwined with developments between Pyongyang and

Washington as well as inter-Korean relations. North and South Korea will continue to be engaged in

fierce diplomatic battles, with Seoul taking an advantageous position with its respect for universal

values and international norms.

However, these circumstances do not make up a necessary and sufficient condition for resolving the

severely strained relations between the two Koreas. As noted by Zhang Dejiang, chairman of the

Standing Committee of China`s National People`s Congress, who met with President Park Geun-hye

during her visit to Beijing last June, a resolution of the North Korean question requires “three essential

states of mind: generosity, patience and action-orientedness.” Generosity in deed brings about victory

to the offender and, at the same time, safety to the defender.

The situation on the Korean peninsula is so complex and volatile that the impending inter-Korean

dialogue should not be wasted again to invite yet another phase of hostile confrontation. The North

has probably experienced a great deal of painful hardship and isolation due to its stubborn adherence

to nuclear arms. What is crucial at present is timing, which falls in the realm of political wisdom.

[ The Kyunghyang Shinmun, July 15, 2013 ]



‘Reevaluation of the Korean War’ by Seoul, Washington, Beijing

Oh Seung-yul Dean Graduate School of International and Area Studies Hankuk University of Foreign Studies

On July 27, the 60th anniversary of the armistice that ended the Korean War, Seoul, Pyongyang and

Washington held grand ceremonies, respectively. Seoul celebrated the “U.N. Forces Participation

Day” for the first time in 60 years, with the presence of President Park Geun-hye. In Pyongyang,

Chinese Vice President Li Yuanchao watched a massive military parade, alongside North Korean

leader Kim Jong-un, on the “Victory Day,” which was held for the first time in 20 years.

In Washington, D.C., U.S. President Barack Obama shed new light on the Korean War, saying, “Here,

today, we can say with confidence that war was no tie. Korea was a victory.” He said the armistice

“ended” the war and laid the groundwork for new development of South Korea. We took notice of all

the events. It seemed the Korean War has now found its position in history; it even felt as if tensions

surrounding the Korean peninsula since North Korea`s third nuclear test in February have prompted

“political spectacles,” which occurred all at once.

The North Korean regime has celebrated the Armistice Day as the “Day of Victory in the Fatherland

Liberation War.” But Seoul has considered “armistice” a “technical continuation of the war,” as well

as roots of “painful national division” and “unfinished business of national reunification.” This is

why Seoul marked the Armistice Day silently until recently.

This year, however, Seoul hosted a massive celebration by inviting government representatives from

27 countries in a bid to express its self-confidence in dealing with the North and to look squarely at

history, stitching up wartime wounds. Washington, in the meantime, shed fresh light on the war to

show off the solid Seoul-Washington alliance, thereby emphasizing the legitimacy of its intervention

in Northeast Asia by linking the “victory” of the U.S.-led United Nations forces to South Korea`s

development.

China has so far divided the Korean War into the “Chaoxian (Korean) War” waged by North Korea

and the “War to Resist U.S. Aggression and Aid [North] Korea” after its participation in October

1950. In October 2010, on the 60th anniversary of Chinese troops` participation in the war, then Vice

President Xi Jinping called the war a “just war for China to resist the aggression of the U.S.

imperialists.” But China did not hold any celebration this year. It only sent its vice president to

Pyongyang and stressed that the war was North Korea`s business by using the term “Chaoxian War.”

Beijing apparently did not want to see its conflict with Washington flare up.

Since the North`s latest nuclear test, China has obviously been trying to redefine its relations with

Pyongyang. In Beijing`s eyes, the North is a “chicken rib,” something that is of little interest, but one

still hesitates to give up readily. North Korea has now become a “pain in the neck” for China; it can

neither abandon the North because of its value as a bargaining chip, nor afford to keep embracing it

for fear of souring relations with Washington or Seoul.

To all outward appearances, nothing seems wrong as far as the atmosphere in Seoul, Washington, and

Beijing is concerned. It looks as if dark clouds of war are receding slowly for the first time in 60

years. At last, it seems we can look squarely at the sad history. However, it was also true that watching

the political climates in Seoul, Pyongyang, Washington and Beijing on the Armistice Day this year,

we couldn`t help but despair over the inter-Korean relations that have changed at a snail`s pace for

the past six decades, achieving virtually nothing.

I felt sad about the lingering legacies of the Cold War while I watched the Chinese vice president,

who was all smiles attending a mass military parade in Pyongyang in which North Korean soldiers

were seen carrying backpacks with a radioactive symbol; the United States., which showed off its

self-confidence in reassessing the past war; and South Korea, which commemorated the U.N. Forces

Participation Day for the first time in 60 years. Was I too sensitive? I hope that the Park

administration`s policy vision for the “trust-building process on the Korean peninsula” won't prove

to be a vain slogan, with the Armistice Day ending up a mere “anniversary of national division” by

granting strategic privileges to the regional powers.

[ The Munhwa Ilbo, July 30, 2013 ]



- Concern about Obama’s Return to Protectionism

- Future of Nuclear Power Plants

- Exit of HSBC from Korea

- Park Geun-hye’s European Dream

- Let’s Speed Up Korea-China FTA Talks

Concern about Obama’s Return to Protectionism

Cheong In-kyo Professor, Department of Economics Inha University

The patent battles that Samsung Electronics and Apple started in April 2011 entered a new phase

when U.S. President Barack Obama overturned a U.S. trade panel`s ban on the sale of some older

iPhone and iPad models.

Witnessing a biased verdict in the U.S. District Court for Northern California last year, I was very

concerned about the problems that the U.S. judicial system posed and the impact the “patent monster”

would have on the Samsung-Apple disputes.

But I was relieved two months ago when the U.S. International Trade Commission issued a

professional and objective ruling, which favored Samsung over Apple and banned the importation of

some older iPhone and iPad models into the United States. Because ITC decisions had customarily

been enforced during the past 26 years, President Obama`s veto did not seem conceivable.

The protection of patents and other intellectual property rights has been one of the trade areas of

greatest interest to the United States since the 1980s. Under the “Super 301” provisions of the Trade

Act, it has monitored violations of U.S. intellectual property rights by other countries and retaliated

against offenders.

Moreover, the protection of intellectual property rights was one of the most prominent features of the

1994 North American Free Trade Agreement. During negotiations on the trade pact, the United States

demanded the highest level of protection on intellectual property rights, and most of the demands

were incorporated into the agreement. As such, it defied easy understanding for the United States to

nullify the ITC decision when it needs to solidify the foundation of the Korea-U.S. free trade

agreement for its effective implementation.

It was older iPhone and iPad models that violated Samsungs` patents, and they were sold in low-end

or education markets. The enigma that drew attention was why the United States decided to allow

their sales at the risk of being blamed as a protectionist country. Many U.S. industry insiders and trade

experts say the Obama administration`s decision had more to lose than to gain.

Is Apple so vulnerable to international competition that the president has to erect a trade barrier for

it? There may be certain industries and business enterprises that need government support. But Apple,

a leading-edge company, does not belong to them.

Moreover, the U.S. administration`s use of a veto will have a substantial effect on the promotion of

its trade policy in the years ahead. President Obama, who has emphasized fair trade, is promoting a

Trans-Pacific Partnership Agreement, an accord which, among others, aims at strengthening the

protection of intellectual property rights.

Potential in the pact have seen the United States demand that intellectual property rights be protected

by trade acts and free trade agreements. Now they have seen a presidential veto against an ITC

decision when it was deemed necessary for U.S. business interests. What action would they like to

take in their negotiations on the TTPA in the years ahead?

The use of a protectionist veto did not go along with what the Korea-U.S. free trade agreement

basically aimed at. The preamble of the agreement refers to the need for “removing obstacles to trade

through the creation of a free trade area and to avoid creating new barriers to trade or investment

between their territories that could reduce the benefit of the Agreement.”

It was said the veto was used after consultations with U.S. trade policy agencies and industry

representatives. But there was no indication that the Korea-U.S. free trade agreement and Korea as a

party to the agreement were taken into consideration. Given that the application of “fair, reasonable

and non-discriminatory” (FRAND) terms was stressed in the settlement of disputes over “standard

essential patents,” there is a growing concern that the rights of their holders would be weakened.

Expressing concerns about the effect of a veto used by President Obama, the Ministry of Trade,

Industry and Energy said it would closely watch what the ITC decides in Apple`s patent violation

claim against Samsung and how the U.S. administration reacts. But the ministry`s statement was too

mild. It should have called on the U.S. administration to take the spirit of the Korea-U.S. free trade

agreement into consideration in dealing with trade disputes with Korea and pursue a consistent and

predictable trade policy.

[ The Munhwa Ilbo, August 8, 2013 ]



Future of Nuclear Power Plants

Choi Ki-ryun Professor Emeritus Department of Energy Studies Graduate School, Ajou University

Nuclear power generation is emerging as a new source of social conflict, particularly after revelations

about widespread corruption in the administration of local nuclear power plants. A disastrous accident

at Japan`s Fukushima Daiichi Nuclear Power Plant two years ago already had undermined the

reputation of nuclear reactors as the “cheapest and safest” energy source. Now, the revelations, along

with chronic power shortages and nuclear plant accidents, have amplified public distrust of atomic

power generation, making its future outlook in Korea increasingly uncertain.

The scandal, which involved the alleged use of uncertified parts in the construction of nuclear plants,

obviously is very serious. It has caused direct costs of about 500 billion won (US$449 million),

including alternative electricity generation expenses and corporate power-saving subsidies. On top of

that, the scandal caused enormous social expenses by making people feel colder during freezing

winter, for instance. At present, the economics of a nuclear power plant, if measured by its life cycle,

is quite unsatisfactory.

Accordingly, the prosperity of nuclear power generation is an almost impossible task under the current

technological structure. In Japan, the Fukushima nuclear plant was permanently closed after a full

review of accident costs. Germany and Switzerland are considering phase-out plans for their nuclear

power stations, while France is planning to reduce the number of its nuclear power plants by a third.

China and developing countries are very carefully resuming their nuclear power plant construction,

as their demand for electric power surges.

The demand for safer next-generation reactors is increasing in both developed and developing

countries. At the same time, Korea has been under mounting pressure to heighten its standards for

reactor operations, ultimate waste disposal and reflection of future accident-related expenses. Seoul

is said to lag behind other advanced nations in those standards. Unfortunately, the evaluation criteria

are different and a fierce debate over various nuclear reactor issues has yet to be settled. While the

authorities are intent on preventing a nationwide blackout and rationalizing their existing investments,

criticism of nuclear power generation has spread rapidly.

Therefore, many pending issues, such as reactor life extension and permanent disposal of wastes,

have remained unresolved. Even the public consensus that nuclear power generation is a necessary

evil for energy-poor Korea is now being shaken. With a new government launched earlier this year,

the following special measures are urgently needed to help widen social understanding and

acceptance of nuclear power generation.

First, an independent nuclear power cost verification committee should be established for the nation

to terminate a longstanding debate on the economics of nuclear reactors. The competitiveness of

various power generation sources should be closely analyzed in terms of life-cycle cost and short-

term competition cost so that nuclear power generation can become part of the new government`s

creative economy policy goals. Public consensus should also be created on the issue.

Second, socio-economic factors should be reflected more in nuclear power-related policies.

Accordingly, the closed decision-making system by the interested parties should be overhauled.

Third, the efficiency of the Lee Myung-bak government`s policy of expanding the share of nuclear

power generation should be reviewed in order to help reduce social conflict. In my personal judgment,

it is most desirable to maintain the current level of nuclear power generation in view of economic

feasibility and social consensus. The government should actively review its energy policy, as the

nation can secure cheaper alternative energy sources in the future, due to the mass-production of shale

gas. Moreover, the fear of a nationwide blackout will be sharply reduced starting late next year with

the dedication of new facilities.

Fourth, the nation should push to develop the next-generation nuclear power plants as part of its

creative economy policy. A fierce global competition is now under way to develop a new nuclear

reactor that can be approximately 100 times safer than the current models. Korea`s system-integrated

module advanced reactor, or SMART, needs to further upgrade its economics and capacity. A strategic

alliance is desirable in order for Korea to be responsible for manufacturing, building and exporting

the soon-to-be-developed American-style reactor.

Such an alliance will be an advanced form of its nuclear reactor export to the United Arab Emirates.

In this case, pending bilateral issues, including the revision of Korea-U.S. nuclear pact, will be

resolved and a new economic growth strategy centered on facility exports will be introduced.

Lastly, the vertical integration structure between atomic energy technology development and the

nuclear energy industry should be overhauled. Instead, the two sectors should compete against each

other under the creative economy policy. The technology development division should be pushed for

long-term value creation, whereas the nuclear energy industry should be promoted in the short term

to bolster public welfare and foster global industrial players.

The nation`s nuclear energy technology development has already moved beyond improving imported

technologies. The two divisions should be differentiated in order to actively push to rationalize the

distribution of resources.

[ Maeil Business Newspaper, June 29, 2013 ]



Exit of HSBC from Korea

Yun Chang-hee Business News Writer The JoongAng Ilbo

In 2004, there was enormous interest in Citibank, when the global banking giant took over KorAm

Bank. The arrival of the world`s largest bank with a red umbrella logo was watched in the local

financial sector with both fears and expectations. At that time, all details about Citibank Korea,

including its launch of special deposit products and interest rate cuts, made headlines in the business

sections of daily newspapers.

Nine years later, Citibank Korea is now merely one of the nation`s small and medium-sized lenders.

According to the company`s labor union, its market share tumbled by half from 6 percent at the end

of 2004. Standard Chartered Bank, another global banking giant which took over the 84-year-old

Korea First Bank in 2005, also appears to be quite helpless in the Korean market. Standard Chartered

was hit hard by a two-month-long strike in 2011, while its employees have been reportedly frustrated

by allegations of high dividend payments and irregular operations and even rumors of an equity sell-

off.

Finally, we have seen one of the global banking giants withdrawing from Korea. It is HSBC. HSBC

has been at odds with Korea`s financial authorities after withdrawing bids for Korea Exchange Bank

and other lenders. It has finally decided to end retail banking and wealth management services in

Korea.

In some way, it is natural that global financial companies are struggling in Korea. That`s because of

their insufficient understanding of the Korean market and shortsighted management style. The foreign

banks have not made sufficient efforts to reinforce their comparatively weak business networks and

seek new sources of income among small and medium-sized enterprises. They have instead engaged

in easy operations, like lending to individuals through mortgage brokers.

Salaried people frequently receive phone calls from loan brokers after lunchtime and are given flyers

touting loans from foreign lenders at the entrance of subway stations. Their steady downsizing of

branch networks has triggered labor-management conflicts and the severance of business relationship

with small and medium-sized companies has resulted in their zero percent share of the local retirement

pension market. In some cases, foreign financial institutions were caught by the local watchdog

agency while engaging in irregular business practices under a profit-first policy, angering domestic

consumers.

The story is not limited to banks. In the asset management sector, eight of 28 entities that suffered a

loss last year were foreign-owned. Goldman Sachs recently announced its withdrawal from the

Korean asset management market, while ING has sold its investment management business in Korea.

Foreign asset management firms have only tried to earn commission revenues through the sale of

indirect funds related to famous overseas funds, instead of trying to introduce new attractive financial

products to Korean consumers. In the insurance sector, ING once triggered a boom in life insurance

planners among male college graduates but it is preparing to withdraw from Korea.

Foreign financial companies` successive withdrawals from the Korean market are not good news. It

is desirable and necessary that leading global financial firms create a number of good jobs here and

stimulate Korean banks through the introduction of advanced financial know-how. If so, foreign

financial companies should be more faithful to the basics. They should break away from shortsighted

management style focused on high dividends and maximum short-term profits. Instead, they should

improve communications with local consumers, build up public trust, increase investments and

expand domestic business networks.

Foreign financial firms should have a longer-term approach to the Korean market and reflect on the

public nature of a financial company. They should listen to a local bank executive who said, “It is as

if Korean commercial banks turned into savings banks after being taken over by foreign capital.”

[ July 17, 2013 ] www.koreafocus.or.kr


Park Geun-hye’s European Dream

Lee Ha-kyung Senior Editorial Writer The JoongAng Ilbo

President Park Geun-hye seems to have an outstanding virtue: she simplifies her policy objects and

then implements them with consistency. The Park government`s ambitious goal of lifting employment

from a stagnant 64 percent to 70 percent by 2017, her fifth and last year in office, is one example.

The Prime Minister`s Office and all government ministries and agencies have put forward all kinds

of initiatives to reach the objective.

The policy is primarily focused on reducing the nation`s annual average working hours from 2,092

hours to 1,900 hours and increasing the number of part-time jobs by 930,000. It means that the

government is determined to seek a paradigm shift toward fewer working hours and more job-sharing

because economic growth alone cannot increase employment. In the longer term, the government

aims to bring down the average annual working time to less than 1,800 hours by 2020. If we read

between those numbers, we can find an interesting code. It is the so-called “European dream.”

Koreans` working hours are the most in the Organization for Economic Cooperation and

Development, and an employment rate of 70 percent would duplicate the European Union’s level.

Park studied in France in her early years. That`s probably why she seems to sympathize with

American economic and social theorist Jeremy Rifkin`s view that the “European Dream,” which

values the quality of life over the accumulation of wealth, is the best future for mankind. Indeed, Park

has the Netherlands and Germany in mind, as the two European countries that have raised their

employment rates by about five percentage points to 70 percent through social compromise. Park was

particularly impressed by the Netherlands, which she visited in 2011 as a special envoy of President

Lee Myung-bak.

The Netherlands produced the “Wassenaar Agreement” through a compromise between labor unions,

employers and the government in 1982. The agreement called on the unions to help restrain wage

growth in return for employers` efforts to reduce working hours by five percent and create more jobs.

As a result, the Netherlands, formerly a problem nation beleaguered by negative economic growth

and double-digit unemployment rate, has become a strong country.

If Korea is able to reduce its working hours and create 2.38 million new jobs over the next five years,

or 476,000 jobs annually, in accordance with Park`s promise, the nation`s quality of life and happiness

index will rise and its national competitiveness will change. The problem is that the feasibility of her

promise is low because there is no trust between management and labor.

The employment rate goal can be achieved only when labor unions accept wage cuts and corporations

increase the provision of quality jobs. But both parties are passive. A strong leadership capable of

persuading labor unions and employers can hardly be seen. An employment rate of 70 percent is an

angel`s sweet whisper, but the task of persuading labor and management risks political demise. If the

president cannot directly assume the task, the prime minister or the deputy prime minister is supposed

to make all possible efforts even at the risk of their jobs. But such a move can hardly be spotted.

The Korean Confederation of Trade Unions (KCTU), a militant labor umbrella group led mostly by

unions of large conglomerates, is keeping distance from the Economic and Social Development

Commission, a presidential advisory body formerly named the Korea Tripartite Commission. We`ve

never heard that anyone attempted to persuade the KCTU members to cooperate on the employment

issue. Of course, few labor leaders have attempted to persuade fellow union members to make a

concession at the behest of the national economy because it would risk being called a traitor. An

attractive employment goal has been set but there are no clear subjects to carry it into practice.

Let`s review the 1982 situation in the Netherlands envied by people in the Park administration. The

leading character was then Prime Minister Ruud Lubbers. The 43-year-old center-right politician

defined the negative effects of excessive welfare expenses on the state finance as “Dutch Disease.”

Lubbers announced a pay cut for civil servants, vowing that his government would set an example.

In a separate hard-line move, Lubbers warned that his government would intervene if labor and

management failed to compromise over the employment issue.

Only two days later, the chairman of the Confederation of Netherlands Industry and Employers

invited the leader of the Federation Dutch Labor Movement to his home. The two leaders struck an

agreement. The labor group agreed to accept wage cuts, while enterprises reduced working hours

from 40 hours to 38 hours a week in order to hire more people. Thus was born the Wassenaar

Agreement, which eventually paved the ground for the so-called “Dutch Miracle.”

The leaderships of the Netherlands 31 years ago and today`s Republic of Korea are quite different.

The Korean government appears to be lacking in cool-headedness needed to analyze the situation and

detect a crisis, as well as the aggressive tactics to resolve problems. In fact, President Park may find

it uncomfortable to have straightforward talks with the labor circles. She could be haunted by clashes

between labor activists and her father, President Park Chung-hee, during his iron-fisted rule.

That`s probably why her inaugural address in February never touched on “labor,” although relevant

words such as employment and welfare were often mentioned. But the president should overcome

her personal trauma, if she truly wants to rescue the nation from economic difficulties. That will truly

be a resolution befitting her.

In fact, it is difficult to expect the incumbent government`s top officials to persuade the estranged

labor circles to agree on ways to attain its employment rate target. Another daunting task is to secure

cooperation from domestic enterprises. We may have to pay dearly if the negotiations with the hard-

line labor circles to raise the employment rate to 70 percent are taken lightly. The European Dream

will never come easy.

[ July 3, 2013 ]



Let’s Speed Up Korea-China FTA Talks

Lee Keun Professor of Economics, Seoul National University Director, Center for Economic Catch-up

Last week, I visited Shanghai to attend an international conference on China and the middle income

trap. To my surprise, Hongqiao International Airport`s outdoor car stop was fully air-conditioned.

The scene is a sharp contrast to that of Korea, which is applying energy conservation rules due to

power shortages. In its early years of opening and reform, China had a severe power shortage. But

now the positions of Korea and China have been reversed. It is only a matter of time before the same

fate occurs in manufacturing competitiveness.

Korea should take the changing reality into consideration as it pursues a free trade agreement (FTA)

with China. What is worrisome is a statement issued after President Park Geun-hye held summit talks

with Chinese President Xi Jinping in Beijing on June 27. The two leaders said they agreed to sign a

“high-level FTA at an earlier date” with a goal of achieving US$300 billion in annual bilateral trade

in 2015.

For the past 10 years, I have steadily called for accelerated FTA negotiations with China. I have also

warned of a situation in which Seoul may voluntarily give up a free trade deal with Beijing as China

further strengthens its competitiveness. Now it is feared that we are approaching such a situation.

The scope of Korea`s China-bound investments has already reached parts and components in

intermediate goods beyond the final assembly process. Should the bilateral FTA have been enforced

much earlier, Korean companies may have chosen not to set up a number of manufacturing plants in

China and shipped their exports to the Chinese market from their home plants. While the bilateral

FTA talks were delayed, many Korean plants have been relocated to China.

Despite past objections and concerns, Korea`s free trade agreements with the United States and the

European Union are now considered successful, as they have posed few problems. But the Chinese

economy is different from the mature, advanced economies. China is a high-speed catch-up economy

that improves its competitiveness day by day. It already is the world’s largest manufacturing nation.

Korea has not conducted sufficient studies on the long-term impact of its rapid integration with

China`s gigantic economy, which could turn out to be an enormous black hole. Even worse, it is

difficult to make any judgment on the long-term effects of free trade with China. The deal may offer

a tremendous opportunity to the Korean economy. At the same time, however, it is feared that Korea

could be incorporated into the Greater China economy.

Then, what is an alternative? There are two types of FTA. One is the American style in which a

comprehensive and high-level opening is agreed upon at one time. The other is the Chinese style in

which sensitive issues are excluded initially and the scope is gradually expanded through follow-up

negotiations. Considering long-term uncertainties, the latter is a practical alternative for Korea and

China. In other words, the two countries should first pursue a narrowly focused FTA that only includes

bilaterally beneficial areas.

The Economic Cooperation Framework Agreement (ECFA), a China-Taiwan FTA signed in 2010, is

a typical example. In adopting the so-called “early harvest” method, both sides agreed to open up the

manufacturing sector first and defer the opening of the sensitive service fields to a later date. The

ECFA was initially dismissed as meaningless, but it now has expanded to include service sectors.

Regardless of the scope of market opening, Korea can become the first advanced manufacturer to

conclude a free trade accord with China. Some market preoccupation effects can be expected. FTA is

not a one-time event. It is rather a platform to implement additional market opening. The selection

criteria for industrial sectors and products subject to opening should be approached from a long-term

perspective. Negotiations should be conducted from the standpoint of future competitiveness, instead

of the current industrial competitiveness.

Taiwan`s circumstances are different from those of Korea. But there are growing concerns among the

Taiwanese about Chinese influence expanding in various fields, regardless of the economic effects of

the ECFA. The situation on the Korean peninsula has rapidly changed over the past decade. As far as

a bilateral FTA is concerned, China set its sights on political gains in the past, while Korea primarily

aimed for economic benefits.

In today`s viewpoint of Korea, the outlook for economic benefits has become uncertain. In contrast,

the proportion of international politics, including the North Korea problem, has become bigger.

Against such a backdrop, a “speedy yet narrowly-defined FTA” appears to be the proper choice.

[ The JoongAng Ilbo, July 11, 2013 ]



- Meaning of U.S. Monuments to ‘Comfort Women’

- [Debate] Strengthening Chinese Characters Education in Elementary Schools

- Portals Killing Internet Korea

- Caution Advised on Immigration as Solution to Population Aging

- What Should Korean Scholars Research

- Korean History and National College Entrance Exam

Meaning of U.S. Monuments to ‘Comfort Women’

Cho Hae-joang Professor, Department of Cultural Anthropology Yonsei University

The Korean women`s movement is deemed quite successful in the global history of feminist

movements. One reason is the campaign on behalf of “comfort women,” spearheaded by the Korean

Council for the Women Drafted for Military Sexual Slavery by Japan (“Chongdaehyup” in Korean

for short). When the campaign began in the early 1990s, some devoted activists lived with former

“comfort women” in their shelter to help them speak about their painful memories and heal their

scars.

Director Byun Young-joo was one of the initial activists. She had the women film themselves and

created a documentary movie, titled “The Murmuring,” thereby helping them be reborn as “social

speakers.” Finally opening their mouths, the former victims of Japan`s World War II sexual slavery

became human rights activists. The “Wednesday Rally of Comfort Women,” which has been held

every week by former “comfort women” and their supporters for 22 years, has become a living class

of history and a hub of global citizens wishing for peace. Their activities also led to the United Nations

denouncing imperial Japan`s operation of military “comfort stations” as a wartime crime.

During a recent trip to the United States, I learned that their crusade has germinated another flower.

On July 30, a ceremony was held to unveil a monument to “comfort women” at a public library in

Glendale, California. In the event, organized by the City of Glendale government, the president of the

Korean American Forum of California and members of the Glendale City Council excitedly described

how the monument project evolved. Although there were harsh protests from some citizens of

Japanese descent and the Japanese consul general, they said, they were happy because they had done

what they had to do.

The monument is a replica of the “Girl of Peace” statue that sits across from the Japanese Embassy

in Seoul. Kim Bok-dong, a former “comfort woman” who traveled to the United States for the event,

spoke at the ceremony. She called the replica a “half-success” and said that the statue will continue

to be set up all over the world unless Japanese Prime Minister Shinzo Abe as well as the mayor of

Osaka, the governor of Tokyo and others express sincere remorse about their nation`s past

wrongdoings. She received a big round of applause.

On the eve of the ceremony, there was an emotional gathering in which Kim Bok-dong met a Jewish

woman, who had survived Holocaust, and a Philippine woman, who was formerly a human trafficking

victim. The gathering, intended to soothe the wounds of history that should never have happened,

was also attended by Christian pastors, Buddhist monks, Catholic priests and Jewish rabbis.

In the library yard, where the monument was unveiled, a Chinese American held a sign with a Nazi

symbol put on the portrait of Japanese Prime Minister Abe, and members of a civic group named

“Nikkei for Civil Rights and Redress” rallied to show their support. At the ceremony, Kathy Masaoka,

NCRR co-chair, recounted how the U.S. government violated the constitution by incarcerating

Japanese Americans in camps during World War II but issued an official apology in 1988. Teaching

the truth to future generations should not be neglected, she said.

In 2007, a U.S. House of Representatives resolution defined the case of “comfort women” as the

“largest-scale human trafficking incident in the 20th century.” Rep. Mike Honda played a leading role

in getting the resolution approved. A former teacher, he is a third-generation Japanese American who

spent his childhood in one of the wartime internment camps.

There are already six monuments to “comfort women” in the United States and many others are being

promoted. The movement has greater meaning as a political practice of immigrant groups taking root

in the United States, rather than as a test of wills between Korea and Japan, as some mainstream

media have described it. An individual can become a full member of society only by participating in

efforts to establish “common value” of the community. Erecting a monument is an act of

communication to rewrite and remember history.

Actually, those who devoted themselves to this project seem to be members of a new generation, who

cooperate with one another to realize the ideal of coexistence, unlike the first generation of

immigrants who have settled down in the United States with their hearts still lingering in their

homelands. Will Korean Americans, who are establishing themselves as full members of American

society, also start to talk about the 1992 Los Angeles riots sooner or later? When such a movement is

ripe, won`t it be a welcome gift to Korean society, which seems to be sliding back into a “time of

forgetfulness?”

Now, I wonder if and when a monument to the U.S. act of dropping a nuclear bomb in downtown

Hiroshima will be set up within the United States. After all, the trip reminded me of the need for a

global platform to remember history.

[ The Hankyoreh, August 7, 2013 ]



[Debate] Strengthening Chinese Characters Education in Elementary Schools

<PRO> Jin Cheol-yong Teacher, Songhwa Elementary School Seoul

<CON> Song Hwan-woong Vice-president National Association of Parents for Cham Education

There are many arguments under way for and against the Seoul Metropolitan Office of Education

(SMOE)`s policy to strengthen Chinese characters education in elementary schools. On June 25, the

SMOE announced its decision to organize the Chinese Characters Education Council, which will

draw up measures to promote Chinese characters education with its focus on words appearing in

elementary and middle school textbooks, and discuss ways to develop educational materials.

However, voices of dissent are not few, either. Hangeul (Korean alphabet)-related organizations such

as the Hangeul Society and People`s Solidarity for Hangeul Culture (Hangeul Munhwa Yeondae),

and 36 parents union, including the National Association of Parents for Cham Education, are

demanding the effort be dropped, claiming, “Strengthening Chinese characters education will

encourage private education and destroy the Korean language education.”

<PRO> Useful for Enriching Students’ Vocabulary and Understanding of Korean

Words

A while ago, when I was giving a lesson on the theme of “Meanings and Kinds of Disaster,” I read

students a sentence, “Today, a lot of man-made disasters such as traffic accident, fire, explosion and

collapse are occurring.” When I tried to explain the sentence more specifically, a student asked me to

define “man-made.” I wrote two Chinese characters, “人人 ” (in wi), on the blackboard and asked

students about the meaning of the first character. Many students answered that the character signifies

“person.” “Really? Then, what does the second character mean?” I asked. No answer was returned.

So, I explained, it means “do” or “make.” Then, students said here and there, “Oh, then it means what

a person does or makes.”

I quite often get questions about the meanings of words while giving lessons. Young children often

ask questions about words that we grownups take for granted and believe they also know. At these

moments, I realize that children have a smaller vocabulary than adults assume. There could be many

ways to teach the meanings of words, but since we can`t spend much time on explaining the meanings

of words and still make progress in class, using Chinese characters is a very effective method.

I recently heard about the government`s decision to strengthen Chinese characters education in

elementary schools. I welcome it. I support giving lessons on Chinese characters in elementary

schools, because it will be of great help in guiding students to understand Korean words properly.

Chinese characters can be taught in elementary schools in diverse ways. You can place the focus on

teaching each Chinese character, or helping students understand Korean words through Chinese

characters, or pursuing character education through Chinese sentences. Up to now, most parents have

had their children study the individual logograms for Chinese characters proficiency level tests, and

some interested teachers have also given lessons in similar ways.

Speaking of Chinese characters education, some people still recollect the scenes at ancient village

schools, or seodang, where boys studied classical Chinese primers. Therefore, they regard Chinese

characters education as a separate subject from Korean vocabulary education. However, it must be

understood clearly that the primary purpose of teaching Chinese characters is to help students

comprehend Korean vocabulary more accurately. It is closely connected to improving elementary

school students` vocabulary.

Vocabulary can be assessed on the basis of quantity and quality: how many words children are aware

of and how accurately they understand their meanings. We adults usually view vocabulary in terms

of quantity and believe our children know enough Korean words and have no problems in using them

in their daily lives. But from a quality perspective, there are a lot of cases in which they use words

without properly understanding their meanings. Knowledge of Chinese characters will be very useful

for children to understand precisely or analogize the meanings of words.

Therefore, it is desirable to strengthen Chinese characters education to improve children`s Korean

vocabulary. Yet, there is no need to teach Chinese characters for all Korean words appearing in

textbooks or too difficult characters. If the focus is put on words that are essential to understand

textbooks, those appropriate for elementary school students to learn and those whose meanings can

be analogized with knowledge of Chinese characters, students will be able to improve their

vocabulary without feeling too much burden.

I believe it would be more effective if you teach the meaning of “ta in” through two Chinese

characters “人人 ,” meaning “another” and “person,” respectively, instead of simply telling them it

refers to “another person.” In this sense, I keenly feel the necessity of teaching Chinese characters in

elementary schools more actively than now.

<CON> Students to Suffer from Heavier Academic Burden amid Increasing Private

Education

The Seoul Metropolitan Office of Education reportedly plans to recruit volunteer lecturers to provide

lessons on Chinese characters as an after-school program at elementary schools in the capital city

beginning this fall semester, so that students can better understand Sino-Korean words in their

textbooks.

The office also released a plan to organize the Seoul Chinese Characters Education Council to

improve students` Korean language skills and reduce the burden of private education for low-income

families, and conduct a survey on the current situation of and the demand for Chinese characters

education. If there is a great demand for Chinese characters education, they will recommend schools

start giving additional lessons on Chinese characters during their creative-activity classes in the first

semester next year. However, this will not be compulsory instruction but optional for individual

schools, the office added.

No policy or educational objective can produce fruit without considering the culture of our

educational scene, or the circumstances of students and their parents who are driven into the war for

college entrance exam that begins as early as in their children` infancy. So far, numerous projects

have been carried out for educational reform, only to cause negative impacts on households and

students, as well as to the nation.

English is included in school curriculum from the third grade of elementary school but if financially

affordable, we parents can`t help but pour all our resources into our children`s private education as

soon as they are out of the cradle. When the SMOE`s intent to include Chinese characters in the

elementary school curriculum is made public, some school principals will boost demand for education

in Chinese characters, delivering a clear message to other regional education offices.

Furthermore, under the present circumstances where mother`s information-searching ability

grandfather`s wealth are considered to be the crucial factors determining a student`s college entrance,

the private education market will surely put out irresistible new products. Eventually, Chinese

characters education will spark fresh demand for private tutoring, far from serving the proclaimed

goal of alleviating the financial burden of private education.

The problem is that Korean students are engaged in “academic labor” to manage their performance

records, instead of enjoying their studies. Even elementary school students can watch TV only after

9 p.m. and can barely have routine conversations with their families, to say nothing of learning table

manners at home.

As a result of pushing our children into harsh competition for scores from an early age, the nation`s

secondary education is on the world`s highest level. Results of PISA (Program for International

Student Assessment) show this clearly. However, the competitive edge of our higher education, which

is deemed crucial in a knowledge-based economy and society, is nearly embarrassing. Moreover, in

regards of the spirit of team work, communication ability and spontaneity, which the 21st Century

Commission cited as the three most essential qualifications for survival in the global community, even

the employment support center of the nation`s most prestigious university has admitted that its

graduates lack these abilities the most.

More problematic is our young people`s sense of morality. According to a survey conducted by the

Transparency International Korea on 1,031 youths (aged between 15 and 30) and 981 adults (aged 31

and over) for four months from July in 2012, 41 percent of the youths said they are reluctant to report

to police when they recognize corruption and 78 percent said they will not report because they fear

they won`t be protected or get any satisfactory result even if they did.

However, when it comes to matters directly connected to their personal interests, the problem gets

even more serious. As many as 40.1 percent of youths, far higher than 31 percent of adults, said they

believed “it is more important to become rich even by lying or committing illegal acts than to live

honestly.”

Whether a child or an adult, everyone nurtures his/her lifetime values through daily lives. Our children

do not grow up as their teachers say in classes or during the morning assemblies, or as it is written in

textbooks. They develop themselves watching their parents` appearances from the back, our daily life

and culture, and behaviors of so-called celebrities and leaders of our society.

However, due to our anxiety about survival itself in the absence of social safety nets, we parents can`t

help but drive our children into the abyss of fierce competition. We call education a long-term national

program but our education always flounders. It wouldn`t be easy to solve the fundamental problems

of our education. Yet, we should not leave our children in this miserable state, waiting for the

problems to be solved.

At least during their elementary school period, we should help our children enjoy learning and

studying in fields they find interesting, and nurture their dreams and talents through trial and error

they may repeatedly make in the process. At a time when life-long education and creativity are being

discussed, coercive cramming-style education can no longer be effective.

Children will actively take part in fields they like, no matter how hard they are, and only in fields

where they find joy, their creativity will vividly come to life and demonstrate its power. Only when

young people in this country, who are our future, discover their own dreams and talents and are able

to enjoy what they do, will we be able to recover happiness in our homes, society and nation.

[ Kyunghyang Shinmun, July 12, 2013 ]



Portals Killing Internet Korea

Kim In-sung Professor, College of Computer Engineering Hanyang University

Nine out of every 10 Korean Internet users log into portals for information searches and news, and

eight of the nine go to Naver. It can be said that Internet use in Korea starts with Naver and ends with

Naver. NHN, short for Naver, expects its turnover will be 3 trillion won this year.

Has Korea`s Internet grown in parallel with the portals? Not really. It is correct to say that growth in

the portal turnover is slaying small and medium-sized Internet sites. When Kakao Talk became

popular as a free mobile messenger application for smartphones, Daum created mypeople and Naver

established Naver Talk for similar services.

Promising ventures should be given opportunities to be taken over so that their creators can realize

profits and move on to develop other services. But a venture accelerates its own demise when it starts

to provide a popular service. Here, the portals are accountable.

No less serious is the problem concerning the portals` keyword search advertising. The portals derive

most of their revenue from ads. In the case of Naver, its game division generates 600 billion won in

turnover while its ad revenues amount to 1.7 trillion won.

Each portal may look like “The Giving Tree” because Internet users can get free access to it for news

and searches. But hidden behind the portals are so many people shedding tears because of their

ruthlessness. More traffic means more ad revenue for the portals. That is the reason why they use a

variety of strategies to keep visitors occupied with their services for as long as possible.

But the problem is that content thefts are committed in the process. When people conduct a search,

they are given access to content that is kept in the portals before anything else. The portals do not

care whether or not the material kept in their blogs, cafes and others are illegal copies of contents

from other Internet sites.

There may not be easy access to content that people have developed at a high cost and posted on their

sites. But the same content illegally taken from their original developers and posted in a portal`s blog

may draw many visitors simply because they are posted in the portal`s blog. This benefits the portal

as well as the blogger.

When protests are lodged against the portals, they say they are not held accountable, claiming illegal

copying is a matter to be contested between the copyright holder and the copier. A blogger is tempted

to put a copy in his blog at the expense of its original developer when he believes it will increase

clicks to his blog.

That is not all. The portals often exploit their dominant positions in drawing up exclusive contracts

with content providers. Under the contracts, the portals keep an encyclopedia and other contents in

their entirety themselves.

If one is searching for information contained in an encyclopedia, for instance, he is directed by the

portal to the encyclopedia it keeps under an exclusive contract. The person is denied the kind of access

to diverse sources of information that he would be permitted if numerous independent sites kept

different encyclopedias. But the exclusive contracts make it difficult for content developers to stand

on their own.

As the processes of vertical keiretsu proceed at the portals, various services that used to be

independent are being incorporated into portal services. Webtoon services are a case in point.

If some websites had grown strong enough to specialize in a webtoon service from the beginning,

they could now be developing webtoons as world-renowned products by tailoring their versions for

subscribers in foreign countries or devoting themselves to creating diverse types of added values

based on their webtoons.

At least, webtoonists could earn more if their webtoon pages were to run ads on products produced

based on their webtoon characters. But the portals are not interested in such business. The portals are

reluctant to make any more investments, claiming their webtoon services are losing money. Actually,

those running webtoon series in the portals live lives little better than subsistence.

Some argue that tightening regulations on the domestic portals in the free Internet environment would

benefit their foreign competitors only. But the domestic portals, placed in dominant positions, are

killing Korea`s Internet.

[ The Dong-a Ilbo, July 16, 2013 ]



Caution Advised on Immigration as Solution to Population Aging

Lee Keum-soon Senior Research Fellow Korea Institute for National Unification

It is common for us to encounter “immigrants” from around the world these days. Now that freedom

of cross-border movement is being institutionalized as a universal value, it is no longer possible to

tightly control borders.

According to 2012 government figures, there are 1,114,000 foreign-born people aged 15 or older

residing in Korea. They include 574,000 people with employment visas, 160,000 ethnic Koreans,

73,000 people with permanent residence visas, and 129,000 people married to Korean nationals. But

the total number is assumed to be much larger, when unregistered, illegal sojourners are taken into

consideration.

As is often seen in Western countries, the discontent of immigrants, fueled by prejudices and

discrimination, may turn into a time bomb. To address this problem, it has been proposed that an

integrated immigration law be enacted and the office of immigration administration be established so

that the government will be able to streamline its immigration policy.

If so, is it desirable to push for immigration as a means of addressing the problems of low birth rates

and population aging and securing growth momentum? Some argue it is necessary to push for

immigration because marriage is not a must for Korean women any longer but only a choice. Some

others also suggest that regulations be eased on the issuance of permanent resident visas so that highly

skilled manpower can be retained by permitting Southeast Asians and others who have studied in

Korea to settle down here.

But there is one critical thing that must not be overlooked. Immigrants are allowed to bring in their

families and illegal sojourners are allowed to reside in their host countries in respect to international

human rights protection.

Western experiences show that it would prove to be a great social burden to take in immigrants as a

means of making up for a manpower shortage in the absence of a long-term immigration strategy. In

this regard, it is necessary to take a variety of measures to encourage more women to participate in

economic activities.

Korea`s ratio of working women to the total female population is substantially low among members

of the Organization for Economic Cooperation and Development. Western experiences have proved

that maternity and childcare leave, and other institutional and financial support has eased the conflict

between women`s economic participation and childbearing since 1990.

Women`s unemployment reduces household income, which leads to a delay in childbearing or the

avoidance. At a time when growth in labor input is slowing it is possible to spur economic growth

and ease population aging by raising the ratio of women`s economic participation.

Last week, I met a 12-member family who deserted North Korea and came to the South in March this

year. They decided to come to South Korea at the request of a female relative, who had come here in

2011. It is no news any longer that North Korean defectors strive to bring in their families and relatives

from the North. Still, the fact that such a large family came to the South at a time was a noteworthy

event. So far, some 25,000 North Koreans have defected to the South, and a substantial number of

them are seeking to bring their families from the North.

It may sound meaningless to talk about the exchange of people between South and North Korea, given

the standoff in their relations. However, to promote happiness on the Korean peninsula from the mid-

and long-term perspectives, South and North Koreans will eventually have to be permitted freedom

of cross-border movement.

In this regard, a strategic consideration should focus on the mid- and long-term prospects for national

unification, instead of encouraging immigration to supply manpower for growth momentum. In the

same vein, it is worthwhile for South Korea to help North Korea lower its maternity and infant

mortality rates and improve the health of infants and children.

[ Kyunghyang Shinmun, July 22, 2013 ]



What Should Korean Scholars Research?

Lew Seok-choon Professor of Sociology Yonsei University

What is research? It begins with observing how a certain phenomenon exists in time and space. It is

a study on what has caused the phenomenon and what it will bring about. We call people doing this

type of work “scholars.” The object of their observation can be a natural phenomenon or a social

phenomenon. So, what should our nation`s scholars research?

A phenomenon that is happening in our nation may be the same or differ from that found in another

country. Phenomena may appear to be different but may be the same in nature. Conversely, they may

seem to be identical but different in nature.

In our country, it is not possible to observe a natural phenomenon taking place in the Arctic or the

Antarctic. An interested scholar would have to go there to conduct research. But scientific knowledge

gained from this research can be applied to the study of a natural phenomenon happening in our

nation. That is the reason why our country maintains a research station in the Antarctic area.

On the other hand, our country has four distinct seasons. It is a good place to do research on the

impact of seasonal changes in the ecology. A scholar from a country where it is cold or hot throughout

the year may gain knowledge from his research in our country that will prove to be applicable in his

country.

Assessment on the relative values of research objects cannot be limited to natural science. Their

relative values are even more pronounced in social sciences.

For instance, scholars studying modernization, or industrialization and democratization put together,

have to focus on Western Europe, North America and Japan for their research. Few other countries in

the world can be the objects of their observation because the phenomenon of modernization has not

fully progressed yet. Hence, knowledge about modernization is mostly an accumulation of

observations and analyses of its processes in advanced nations.

The phenomenon of modernization, a combination of industrialization and democratization, in our

country has a great value as an object of research. The reason is that Korea is one of the most dynamic

countries in the world and one of the very few countries that have completed industrialization and

democratization in a short period of time. This is evidenced by a comprehensive welfare system that

has recently been introduced in our nation. As such, the modern history of Korea is an object of

research in social sciences that has an assured comparative advantage.

Nonetheless, our scholars ignore the importance of Korean history as an object of research. Our

scholars refuse to observe, analyze and explain a success case that is unprecedented in world history.

Instead, they are preoccupied with the 200 years of industrialization and democratization in Europe.

While belittling Korea, which has implemented a sweeping welfare system within a short period of

30 years, they turn their attention to the social democratic welfare system that Sweden developed

over 100 years.

Moreover, the dominant research objects of Korean social scientists have been “problems” that are

found in Korea`s modern history. Typical of the themes that have been popular since the 1980s are

“deepening dependency” and “strengthening monopoly.” Had Korea been a society where

dependency was deepening and monopoly was strengthening, she would have become a failure case,

not a success story, in the 1990s or 2000s.

Accordingly, the reality was that dependency continued to weaken and that monopoly has been

mitigated to achieve economic democracy. Korean scholars turn a blind eye to this reality.

But other countries are watching our country as a valuable object of their research. U.S. President

Barack Obama has repeatedly emphasized that Americans should learn from Korea. Scholars and

public officials of developing countries are coming to Korea to learn about the Saemaul (New

Community) Movement. Just as we are maintaining a research base in the Antarctic to advance

natural science, they are coming to do research on Korea to get help in developing their countries.

Korean scholars, on their other hand, devote themselves to criticizing Korea for its problems although

it has achieved world-renowned success. This is not to say criticizing Korea`s problems is worthless.

But it cannot explain Korea`s success. It is an irony that our scholars ignore the value of Korea`s

modern history as an object of research. This irony itself should be another object of serious scholarly

research.

[ The Chosun Ilbo, July 1, 2013 ]



Korean History and National College Entrance Exam

Hong Chan-sik Chief Editorial Writer The Dong-a Ilbo

As political and educational circles argue about making Korean history a required part of the national

college entrance exam, teachers of other social studies subjects are resisting the move. Currently,

students are required to choose two out of 10 social studies subjects, including Korean history, for

their college entrance exam. Therefore, making Korean history a prerequisite would reduce the

choices to one and ultimately lead to declining interest in other subjects and weakened social studies

education overall.

For example, students could be exposed to only 18 hours of classroom instruction in economics

throughout the six-year period of middle and high school unless they enroll in an economics class in

high school. On the other hand, there would be 170 hours of history lessons in middle school and 85

hours of Korean history lessons in high school. Last week, President Park Geun-hye said, “History is

like the soul of people,” emphasizing the necessity to include Korean history in evaluation standards

for college entrance. Definitely, Korean history stands very high on our educational priority list, and

yet you can`t neglect or ignore other social studies subjects, either.

Last year, 620,000 students took the national college entrance exam and a similar number of students

are expected to take the exam this year. People seem to expect that if Korean history is designated a

required subject for the examination, students will study the subject it harder. It is totally

understandable. However, the national college entrance exam is nothing but a tool to measure the

performance of education. The approach to elevate historic awareness through the means of binding

students to an exam is tantamount to exposing the incompetence of Korean education.

In fact, whenever a problem has occurred with education, there has been an attempt to solve it through

a change of the national college entrance exam. It is quite a deep-rooted belief that the national college

entrance exam is almighty. Making exam questions easy to reduce private education spending has

been a regular policy choice of each government. Afterwards, if the exam is deemed to have lost its

assessment function, they make the questions difficult again, perplexing test-takers. Also introduced

is a system in which grades instead of specific scores are given as test results in an attempt to reduce

the gravity of the exam in college entrance.

The Park Geun-hye government is stressing creative and humanistic education. Creative education

requires education on culture and arts, which boosts imagination. And for humanistic education,

ethics education should be reinforced. However, this doesn`t mean that you have to designate culture

and arts, or ethics, as compulsory subjects for the national college entrance exam. It will only

aggravate the academic burden of students and have little effect. Basically, the priority should be

placed on providing quality education related to these subjects.

Since 2000, measures to strengthen history education have been announced at least once by each

administration of Roh Moo-hyun, Lee Myung-bak and Park Geun-hye. At the end of 2003, when

China`s Northeast Project, an attempt to incorporate the ancient Korean kingdom of Goguryeo as part

of Chinese history, was made known to Korea, anti-Chinese sentiments exploded among Koreans. In

summer 2005, when the prefecture of Tokyo adopted a middle school textbook that glorified Japan`s

imperialist occupation of its neighboring countries, the Roh Moo-hyun government decided to

strengthen Korean history education and organized the Commission on the Development of Korean

History Education. The commission announced an array of measures in December 2006. Then, in

April 2011, the Lee Myung-bak government also unveiled measures to strengthen history education.

Consequently, history was separated from other social studies subjects to increase the number of its

classes, and was designated a required course in high school. Considerable efforts have been made,

but producing few visible results. Adolescents still remain ignorant of many historical facts or hold

negative views of the nation`s democratization. There is a need to examine carefully whether our

history education was insufficient or there was a problem with the history education itself.

I am highly skeptical of what differences another measure can make to strengthen history education.

Reinforcing Korean history education can give rise to another negative side effect. History seen only

from the perspective of your nation inevitably creates exclusive perceptions of surrounding countries

and self-centered nationalism. Korea has formed its history through exchanges with China and Japan

for thousands of years. Today, international exchanges have become far more frequent than in the

past, and we can`t help but live amid closer relations with these countries.

Even if China and Japan have set out for nationalistic history education, it is not desirable for us to

follow the same path. In history education, teaching the value of coexistence and mutual

understanding is also important. Our young people should be guided to increase their understanding

of East Asian and world history as well as Korean history. Their ignorance and lack of awareness of

history are related to the predominant phenomenon in our society of evading literature, history and

philosophy. Or it could be the characteristic of the Internet generation.

History education should be strengthened in ways to bring back young people`s attention to these

subjects. Korean history is usually known as a boring subject, which requires a lot of memorization.

Efforts to revamp history lessons into interesting classes are urgent. As far as history education is

concerned, we should avoid makeshift measures but look for fundamental solutions.

[ July 17, 2013 ]



- Neo-Confucian Learning in Korea Forgotten Origins of Modernity and Platform for the Future

- Musical Stands at Forefront of Culture Industry

- Writing in the Age of the Smartphone

- The Welcome Storm ‘28’ by Jeong Yu-jeong

- Nepalese immigrant Worker Realizes Korean Dream

Neo-Confucian Learning in Korea: Forgotten Origins of Modernity and Platform for the Future

Emanuel Yi Pastreich Professor, College of International Studies Kyung Hee University

There is a powerful myth that dominates Korean society today, one which severely undermines

Korea`s cultural potential because it labels a tremendous chunk of the Korean cultural tradition as

irrelevant. This makes it seem the intellectual achievements of Korean intellectuals before the 20th

century were misguided. You can find this argument in high school textbooks, or even in the

introductions written in English for foreigners about Korean culture.

The myth concerns Korea`s intellectual tradition and the importance of the Neo-Confucian tradition

in Korea. Neo-Confucianism is a general term for the philosophical system codified by the Southern

Song Dynasty scholar Zhu Xi (1130-1200), which formed the basis for much of the state ideologies

of later dynasties in China and Korea. Neo-Confucianism was a synthetic approach to epistemology.

It combined early Confucian teachings with metaphysical terms developed in Buddhism to create an

overarching perspective that embraced the natural world, governance and ethics.

The Neo-Confucian vision of the world as a moral whole in which the scholar had the most privileged

position by access to the Confucian classics became the basis for literally all formal education in the

Joseon Dynasty (1392–1910). As Korea strove to modernize in the 20th century, during the colonial

occupation by Japan, a myth about Neo-Confucianism took root that remains powerful to this day.

The myth goes something like this:

In the Joseon period, Korean scholars of the yangban class were lost in abstract theories and

impractical ideas about self and society drawn from the fuzzy thinking of Neo-Confucian tradition.

Lost in the abstractions of Neo-Confucian discourse on “virtue” and “filial piety,” scholars lost all

interest in practical studies: the know-how for administrating a country and the technology for

improving the lives of the people. These noblemen spent their days reading books and made no

contribution to society. Because of their failures, Korea fell far behind in modernization and only

made progress when Western science was introduced in the 20th century, sadly through the Japanese

colonization.

Although it is true that a small group of decadent and self-interested aristocrats in the 19th century

used Neo-Confucian learning as an ideology to justify their rule and to reject Western learning, the

overall story is a misleading and damaging myth. This story was product of Japanese scholars during

the colonial period. They strove to convince Koreans, and the world, that Koreans had fallen so far

behind that they needed Japan to save them.

What is odd about this myth is that it has had such power over Korean thinking, even today. Perhaps

it is because it combines with another myth, the idea that Korea had to jettison its past in order to

modernize and become an advanced country. That myth remains very powerful among older Koreans

in their fifties and forties.

But the age of rapid modernization is over. We will face new global challenges for which traditional

Korean ideas, and not the practices of modernization, will be critical.

Many Koreans assume that Neo-Confucianism is opposed to science and technology, but in fact the

opposite is the case. Zhu Xi`s thought was the basis for Chinese and Korean scientific discourse; the

“investigation of things” (gewu) and this system of science was more advanced than its rivals in the

West until the 17th century in many fields.

According to Korean textbooks, Neo-Confucianism was attacked by the group known today as

proponents of Silhak (practical studies) and such figures as Pak Ji-won and Jeong Yak-yong argued

that the scholar should turn away from Neo-Confucianism. This story is not accurate. In fact, the

Silhak movement was squarely within the Neo-Confucian tradition and was rather an argument for

greater engagement of intellectuals in contemporary issues, not an alternative to Neo-Confucianism.

To take the hostility of some Korean intellectuals in the 19th century to Western learning as an excuse

to dismiss Neo-Confucian learning is a terrible mistake. Many thousands of insightful Korean

scholarly and literary works were written in the Joseon period and they have much to offer modern

society. Unfortunately, Koreans have dismissed that tradition as being “Chinese” ― and not “Korean”

― and made little effort to introduce it to the world.

The Korean culture that is commonly introduced to the world is the rather simplistic novels, “Tale of

Chun-hyang” and “Tale of Hong Gil-dong.” These simple morality tales lack the complexity which

distinguished the Joseon intellectual tradition. The sophisticated writings of Joseon, for the most part,

have not been translated and are unknown even to educated Koreans.

The result is that it appears to the world as if Korea had no serious intellectual tradition before the

20th century. Confucianism is misunderstood as simplistic set of rules for being good by following

rules: respect old people; be sincere; follow orders because that is what Confucius says. This popular

interpretation is quite distant from the complex arguments advanced by thinkers of the Joseon period.

What might be a first step to reclaim the Neo-Confucian tradition? Perhaps one step is for Koreans

to include more of that tradition in their contemporary culture. Most Koreans, however, can only

imagine Neo-Confucianism in terms of respect for teachers and old people, so attempts to modernize

that tradition so far have not been all that successful.

But what if you took the teachings of the remarkable thinker Yi Hwang (1501-1570, pen name

Toegye) and presented them in a manner that related to daily life and the problems that young people

face? What if the essential truths were transmitted in a manner that ordinary people could understand

in terms of their own experience? That was the approach used in introducing Zen Buddhism from

Japan in such books as “Zen and the Art of Motorcycle Maintenance,” a best-selling novel from the

1970s that relates in a lively manner the principles of Zen teaching without any reference to the texts

of the original classics.

Yi Toegye`s arguments are not old ideas that belong in a museum, but are about the issues of the

current day. For example, it might be a good idea to produce a popular play dealing with young

people`s experience of alienation, competition, suicide and the dangers of an obsession with surfaces.

Much of Yi Toegye`s thought about human experience and the distraction of surfaces could be in that

accessible context. The young people watching the play, or TV show, would see that Neo-Confucian

tradition in an entirely new way.

Also, we must recognize that Korea`s remarkable modernization in the 20th century could not have

taken place without the strong intellectual tradition of Neo-Confucianism that gave intellectuals the

ability to think strategically about development and government. The government officials and CEOs

who led the Korean miracle were not successful because of their enthusiasm and their hard work

ethic. That is a solipsistic argument one often hears in Korea, something like: Koreans work hard

because they work hard.

Rather it was the tremendous richness of the Neo-Confucian tradition and its emphasis on the merging

of abstract principles and concrete practical action that allowed Korea to both set up lofty, seemingly

impossible, goals while also having the tenacity to engage in the daily struggle for markets and

technology without losing sight of the ultimate goal.

Korean Neo-Confucians have much to offer to us, and to offer to the world. Imagine if you could find

complete satisfaction in the moment in your home reading books and writing. It may seem boring

from the outside if you are lost in a consumer culture, but if you understand this world from the inside,

it has tremendous appeal.

In traditional Korea, there was stress on eating only what one needs and avoiding consumption for

show. That Korean tradition of humble living and modest consumption was despised by many in the

process of modernization when it seemed that bigger was better. But in this age, when Korea can best

be a leader in that it presents models to the world of living with less, that tradition of modest living,

in which the greatest minds of the 17th and 18th century lived extremely modestly as scholars — has

much to offer us. We must reinterpret that tradition in a manner that can be readily understood by

young people.

[ The Chosun Ilbo, July 11, 2013 ]



Musical Stands at Forefront of Culture Industry

Ko Hee-kyung Professor, Graduate School of Performing Arts Hongik University

The aggregate sales of the live performance industry totaled 340 billion won (US$ 3.06 billion) last

year, according to a ticket office, and roughly half came from musicals. Assuming the ticket offices

account for 70 percent of the market, ticket sales of the domestic musical productions would be about

250 billion won. Inclusive of corporate investments and sponsorships, Korea`s musical market is

valued at about 300 billion won. Compared to the film industry nearly approaching 1 trillion won, its

scale is not large, but the growth potential is not small.

Led by musicals, the live performance market has grown 20 percent annually over the past decade.

With “The Phantom of the Opera,” a licensed production, having a 10-month run, the strength of

musicals in the live performance market has started to become visible. New productions of New

York`s Broadway and London`s West End have been imported to the domestic market two or three

years afterwards. Now, the market has expanded to European musicals which are mostly introduced

from Austria and the Czech Republic.

In spite of ticket prices far surpassing 100,000 won, this unique genre in which performers express

their emotions in songs and exciting dances has become so familiar to the public that it has been

parodied in a popular military promotional video. However, as the audiences overwhelmingly prefer

licensed foreign productions which are performed in large theaters, foreign productions has taken up

80 percent of the sales, and the competition among local producers to secure licenses has led to a rise

in royalties.

Considering that more than 15 percent of the sum the domestic audiences are paying goes to the

copyright owners abroad, regardless of box-office results, the market is not free from criticism that

the flourishing market is turning out to be good for foreigners only.

Interestingly, the competition has become a big stimulus for the creative musical market. While

licensed foreign musicals dominate the domestic market, some 120 creative musicals have been put

on stage annually for the past two years. The figure represents more than 70 percent of the total annual

production, which is comparable to that of New York or London.

In Japan with a market valued at 53 billion yen (about 593 billion won), which is twice larger than

that of Korea, more than 90 percent of the musicals are created under license deals. Japanese

producers are expressing wonders at the latecomer Korea`s creative musical production capabilities

and the high standards of the productions. Early this year, a theater exclusively for Korean musicals

opened in the heart of Tokyo, and 28 Korean musical productions are to be staged this year.

Recently, Japanese producers` involvement in Korean productions has become increasingly active,

as shown in the cases of investment from the early production stage, while an increasing number of

Korean musicals are presented in China. However, there are too many problems to be excited over

the burgeoning creative enthusiasm and the reactions of the Asian markets. Like the K-pop market

which is led by a handful of young idols, Korea`s creative musicals are heavily relying on star powers.

Programs for new creations are diverse. They include the Daegu International Musical Festival, a

support program sponsored by CJ Group and the Seoul Musical Festival. Nevertheless, the

environment for new creations to settle in the market is simply poor. Lurking behind the brilliant

stage are such structural problems as instable supply of dedicated theaters; the undeveloped

compensation system for copyright owners including playwrights, composers, directors and

producers; the pay gap between stars and chorus members; and low-paid staffs.

A double-edged sword from the inflow of foreign capital, including from Japan, should not be

overlooked. Unlike a movie which is completed in the format of a printed film, the value of a live

performance product such as musical can be secured only after the work has survived on the stage for

a long period of time with proven music, story and directing abilities. A musical is not completed in

a single performance, but approaches perfection in the course of surviving and evolving on stage.

Therefore, creation of a healthy environment in which a work can survive for itself is crucial to a

genre like musical. But the scale and nature of support for musicals is inevitably limited since it has

yet to define its exact position between “cultural industry” and “basic art,” unlike video, pop music,

animation or game.

Discussion about whether government support is necessary or not for the commercial art depending

on box office performance is meaningless. A musical crosses boundaries to fuse and integrate art and

industry. Its future cannot be guaranteed any more with the pure and blind desire to produce a

successful work alone. I am looking forward to the growth of the second-generation or third-

generation creative musicals which can survive and develop in a structurally stable ecosystem.

[ Korea Economic Daily, July 17, 2013 ]



Writing in the Age of the Smartphone

Lee Keun-mi Novelist

Since the launch of the Park administration, “creative economy” has become the most discussed

catchphrase. Not being much of an economist, I had little interest in the term, but I jumped at the

chance to interview a creative economy guru. After all, the catchphrase is one of the so-called “three

mysteries” along with the new politics proposed by Ahn Cheol-soo and the true intentions of Kim

Jong-un.

My interviewee started by using the metaphor of “chasing a cloud” to define creative economy as

doing things to generate value that can benefit people`s lives. Therefore, he emphasized, we must be

imaginative and creative every day. For a while I thought creative economy would forever remain a

mystery. With further explanation from the expert, I gradually grasped the concept and the fact that I

am already surrounded by it and that in some ways I am participating in it.

To roughly summarize, a creative economy is realized when creativity directly leads to wealth

generation, and when ideas result in production without huge investment in manufacturing facilities.

Korea, my interviewee noted, was about a decade behind other developed nations in embracing the

concept, but in the past few years has advanced considerably by using its competitiveness in

technology and convergence.

He also said that given our transition from an economy in which everyone was hungry to one with a

wide gap between the haves and the have-nots, it is best we leave the task of saving the middle class

to the government and concentrate our collective intellect — a key factor of production in the creative

economy — to become pioneering entrepreneurs like Steve Jobs.

While the idea of a creative economy may remain a mystery to some and there are those who dismiss

it as meaningless, it seems that we are already living in a creative economy. I look back on my college

days that began with a typewriter, which was later replaced by a word processor, and how hard I had

worked to buy the latest laptop. Those days seem like the Stone Age now. It was in 1996 when I

bought my first mobile phone, and by 2007 I had switched to a smartphone. In 2010 there was a

dramatic surge in smartphone penetration, and today about 33 million Koreans use it.

In this “smart” world the population of “writers” has naturally multiplied. Most people today share

their sentiments and snippets of their lives on Facebook, Twitter and Kakao Talk. We blog about our

views and the books we have read. The more passionate go so far as to create their very own media

or contribute as a journalist to an Internet media outlet. Some agencies are now promoting the idea

of “one man one book” urging people to write and publish. Dozens of colleges now have creative

writing departments training prospective authors, as are countless private institutes that offer classes

in writing. More people write than ever, and they are dominated by and/or benefiting from this new

environment brought on by the smartphone.

Heartened by the overwhelming access to information and convenient IT infrastructure, more and

more people are writing and their works are everywhere. I remember how, after publishing two books

in 2008, I had a few years of respite and came back with my three new books, successively released

from September 2012 and onwards. The change in landscape in terms of promoting books was

dramatic to say the least. First and foremost, my books were sent out to far more people than before

to include the big guns on the SNS scene.

In the age of the ubiquitous smartphone, influential Facebook and Twitter users have the power. They

are in great demand everywhere, including, of course, the numerous corporate-sponsored events to

which they are often invited. I remember sending my book to a power blogger who had been a guest

at an imported car launch held at a posh hotel. I even had to do a podcast interview, although I am the

kind of person who is embarrassed by having her photos appear in newspapers.

Despite the larger variety of channels to promote books, the publishing industry complains of being

in a deeper recession since the advent of the smartphone. Take the subway for example. Before the

smartphone, many of the passengers would read, but today most have their eyes glued to their devices.

In the middle of the interview I pointed this out to the creative economy expert and said, “Since the

advent of the smartphone, the tipping effect has gotten stronger. The books that don’t do well don’t

sell at all.” He responded: “You should disseminate summaries to a wider audience and try different

ways of attracting the potential readers. Collaborate with a webtoonist for example. Expose your work

in a trendy way. Try different tools.”

Citing Psy and the success of Korean pop culture, he expounded the value of the cyber infrastructure

and urged me to take a stronger initiative. Furthermore, he emphasized that people who crave creative

works tend to become passionate supporters when they see works of excellence. He then advised, “If

you wish to be the beneficiary of the tipping effect, you need to work harder. The market has

mushroomed. What a hundred million people would have viewed in the past is now viewed by 400

million. Ride on that wave to that market.”

Creative economy — I`m still not quite sure what it is. Well, whatever it is, the world is not the same,

and it will be better for the one who adapts to it. I`m still amazed that I can now download a full

feature film in one second. In 20 years, we will have a smartphone capable of storing all the works

created during the 30,000 years of human history, and it will take a mere 15 seconds to download

them all.

With conviction the expert said, “The key to the creative economy is to be a step or two ahead of your

peers by leveraging the enormous amount of data that`s available.” Perhaps the most memorable of

what he said was this: “Even when you are using someone else`s experience, you must have

something of your own. The law of give and take still applies. Therefore, each person should fully

develop his or her competency.”

Despite the answers provided by the expert and the fact that Korea has probably one of the best

infrastructures for the so-called creative economy, my head has a lingering headache. When your

head is about to burst with mixed thoughts, the only option is to sort them out in the simplest terms

and just march ahead.

[ The Munhwa Ilbo, July 12, 2013 ]



The Welcome Storm: ‘28’ by Jeong Yu-jeong

Uh Soo-woong Arts & Culture Reporter The Chosun Ilbo

In only about two weeks, “28,” a novel by Jeong Yu-jeong has soared to the top of best-seller lists. It

is No. 1 at Aladin, an on-line bookstore, and was No. 2 on the best-seller list based on data from the

Korea Publishers Society (KOPUS), Yes24 and Kyobo in the last week of June.

With the exception of a few of the so-called screen-sellers — books that have become bestsellers due

to the success of their screen or TV versions — we have not seen novels gaining such popularity in

recent years. It is true that not all bestsellers are good books, and there is no telling how long this will

go on, but it is nevertheless a fresh breath of air for Korean literature, which has hardly produced a

buzz since “Please Look After Mom” by Shin Kyung-Sook.

There is another reason why this excitement over Jeong`s new work is welcome news. If literature

also has some kind of an ecosystem, it is sure to benefit from the success of Jeong`s new book. And,

of course, the definitive factors that make a work of literature a work of art are in the story, the style

of writing and the soul-searching it arouses.

Korean literature has often been critiqued for its obsession with writing style. While one cannot deny

that the finesse of beautiful prose is one of the strong appeals of our pure literature, many have pointed

out that the bias towards emphasis on style and the prose itself has caused an imbalance between style

and story and between style and thought. In the same vein, others have noted with concern that our

young writers with a creative writing degree but lacking in worldly experience are invariably delving

into the inner being and self-consciousness with a meticulous attention to style.

A well-known fact about Jeong, 47, is that she did not receive formal training in writing, having

graduated from college with a nursing degree. She watched as her mother passed away in the intensive

care unit of the hospital where she worked. She has professed that she educated herself in literature,

but that life has taught her more than books.

Indeed, she is a true teller of stories grounded solidly in reality. One of her favorite writers is Cheon

Myeong-gwan, 49, the author of “The Whale,” “The Aging Family” and “My Uncle, Bruce Lee.” He

has only a high school diploma. In his twenties, he worked as a golf club salesman and an insurance

agent. In his thirties, he started working odd jobs in the film industry and later became a screenwriter.

Cheon, who is far from being part of the literary elite, is lauded today as one of the greatest storytellers

in Korea.

The American novelist Joyce Carol Oates, who is considered a promising candidate for the Nobel

Prize in Literature, has written a book titled “The Faith of a Writer: Life, Craft, Art.” In this book, the

75-year-old writer argues “Without craft, art remains private. Without art, craft is merely hackwork.”

She is in essence emphasizing “balance.” Such a balance is what I would like to see in the Korean

literary ecosystem where neither one nor the other is belittled or dismissed.

I wish to see works that extend beyond the league of their own that excludes the masses, and beyond

the league of moneymaking that blindly chases after the masses. We need more of works which are a

harmony of the good story and exquisite style.

[ July 2, 2013 ]



Nepalese immigrant Worker Realizes Korean Dream

Ha Do-gyeom Curator National Folk Museum of Korea

The National Folk Museum of Korea opened a speakers program this year for international regional

experts to address public officials. In the first half of the series, week-long educational sessions on

Asia and Europe were conducted. Sessions on Africa/Middle East and America/Oceania are

scheduled for the latter half. Among the guest speakers was a 38-year-old Park Roy. His speech on

the Himalayan country of Nepal, on April 18, received ecstatic applause from the attending 80-odd

public officials.

Park Roy is named after his wife`s surname. Roy is an English name he used while working as an

English instructor in Korea. His Nepalese original name is Dawa Sherpa. “Sherpa” means “people

from the East” and “Dawa” refers to a person born on Monday in Nepalese. Dawa Sherpa is a very

common name in Nepal. He was born in Kathmandu, the capital of Nepal, on May 23, 1978 as the

second boy among two sons and one daughter. When he was a child, an ordinary family couldn`t pay

much attention to children`s education in Nepal, a developing country which is still receiving aid

from the international community.

Fortunately, Roy`s middle-class parents had extraordinary enthusiasm for education and had their

children finish the best schools in Nepal. Thanks to his parents, after graduating from the Dipendra

Police Boarding High School in Nepal, where he was a football player of the school, he was able to

study at the Department of Business Administration of the prestigious University of Delhi in India, a

privilege reserved only for the upper class of Nepal.

While studying in India, he met his wife in 2001 while backpacking and got married in 2003. The

next year, he came to Korea on the advice of his wife and was naturalized as a Korean citizen in 2006.

He has been living in Seoul for eight years. Even though he has graduated from a prestigious

university and is a foreign language expert who speaks five languages including Nepalese, English,

Indian, Korean and Pakistani, he had to do anything available to earn a living. Jobs he had in the past

eight years range from selling Nepalese souvenirs to teaching English at private institutes and

elementary students after school.

He has briefly worked at an information booth for foreigners of the Immigration Office as a foreign-

language counselor and the Nepalese Embassy in Seoul as an administrative clerk in charge of labor

issues, but these were not stable jobs. Indeed, while a lot of foreigners are acquiring Korean

nationality every year, most of them find landing a stable job as hard as plucking stars from the sky.

I believe the Ministry of Gender Equality and Family should come up with more measures for married

immigrant men who have families to support.

Park is the only man who was employed as a contract worker by the Industrial Bank of Korea through

its first open recruitment for members of multicultural families in Korea. He got the job through

competition that had 7:1 odds of winning. He was immensely grateful to the bank for saving him

from the brink and was able to expand the wings of his dreams again that had been left folded.

“Migrant workers still face prejudices. If you become more open-minded, Korea would become a

better country,” he said wishfully.

While working at the IBK`s West Yeoido branch for the past year, he has succeeded in opening 2,000

new accounts every month. Incoming foreign industrial trainees, including those from Nepal, can see

him at their training program, which lasts three days at the Korea Federation of Small and Medium

Businesses. Sympathizing with them over the difficulties they face in Korea and going anywhere to

help resolve their problems, he became friends with the migrant workers, who gladly became his

clients.

Park`s nine-year-old son also has a peaceful school life without experiencing any discrimination. But

he said that he feels sad because his son and children of his Nepalese friends speak only in Korean at

home and have no understanding of Nepal`s language and culture.

While serving as an instructor at a project named “The Korean Dream Implanted in Nepal,” hosted

by NamasteKorea, a private non-profit organization, under the sponsorship of the Ministry of Security

and Public Administration, last year, Park stressed the need to teach the children of multicultural

families the native language and culture of their immigrant parents.

His suggestion has borne fruit as the NamasteKorea`s program for the children from multicultural

families has received a funding from the Ministry of Gender Equality and Family this year. It was

also thanks largely to his efforts that a “Nepalese cultural school” opened at Beomnyun Temple, the

administrative headquarters of the Korean Buddhist Taego Order, the nation`s second largest Buddhist

denomination.

In the IBK`s personnel reshuffle conducted on July 11, Park became a fifth-grade regular worker. It

is extremely rare for a contract worker to gain regular staff status in 15 months. Park has demonstrated

outstanding performances in international business, including arranging an exchange transaction with

the Nepal Investment Bank. He expressed his hope to work at IBK`s Indian branch and help more

Korean small- and medium-sized companies to advance into the Indian market.

Park recalls with a bitter smile that he failed to get a contract worker position at the Seoul

Metropolitan Government`s support center for foreigners a few years ago. Among those employed at

that time was Lee Jasmine, a Filipino woman who was elected to the National Assembly last year as

a proportional representative the ruling Saenuri Party. “Just imagine if I got that job,” Park said

jokingly.

Lee Jasmine is a dream-come-true of foreign migrant workers in Korea. The presence of Lee who

acquired Korean nationality in 1998, eight years earlier than Dawa Sherpa, makes me feel proud in

that she represents Korea as a woman leader along with the nation`s first female president.

The “Multicultural Package,” a research project to address social problems stemming from a rise in

the multicultural families in Korea, which the National Folk Museum launched in 2009 with a

program about Mongolia, has been expanded to cover Vietnam, the Philippines and Uzbekistan.

Especially, the “Package for Korea” which was completed this year, is drawing a lot of interest since

it is effectively utilized in overseas public relations activities.

Lee Eun-mi, the museum`s curator and one of chief organizers of the project, affectionately dubbed

the “moving mini magic box,” said she was grateful to Jasmine Lee for her enthusiastic participation

as an instructor in spite of her busy schedule.

It is heartwarming to see a large number of foreign immigrants who have come to Korea for work,

marriage or other reasons stand on their own two feet in Korea. However, it still is a pity that Korea,

with half a dozen political parties and more than 300 National Assembly members, has only one

lawmaker who represents immigrants. I am looking forward to the day when the immigrants become

the leaders of Korean society and contribute to making Korea a clearer and brighter community.

[ Newsis, July 19, 2013 ]



- Convergence of Information Technology and Art

- Estimation of North Korea’s Nominal Per Capita GDP in 2012

- Kaesong Industrial Complex as Key to Peace on Korean Peninsula

Convergence of Information Technology and Art

Lee Kyo-gu Professor Graduate School of Convergence Science and Technology Seoul National University

Korea really is an impressive country. This tiny peninsula stuck on the end of the East Asian continent,

and cut in half, is frequently described as an “XX Powerhouse” or the world`s leading “XX Country.”

This is most apparent in sports such as archery, speed skating and golf, but in recent times the words

that “XX” most often stand for are information technology. Of course, this depends on precisely

which IT field we`re talking about, but since Korea took the lead in semiconductor production in the

1990s the country has placed first and second in mobile phones, wired and wireless communication,

and high-tech electronics. In that respect, Korea is truly an IT powerhouse.

When I went to the United States in the early 2000s, I recall that the best spaces in the big discount

chains such as Best Buy were occupied by Sony televisions from Japan, Nokia phones from Finland,

and GE refrigerators from America. These products also fetched the highest prices. But just over 10

years later, these premium brand spots are now occupied by Samsung and LG products. For us, this

is a great advance indeed.

Such fantastic development in IT is not only exerting great influence on other fields of industry but

also on fine arts, music and the arts in general. In music, in particular, IT is affecting the whole process

from production to sales and distribution, and even influencing consumption patterns. This is

illustrated in the typical day of Park, a 20-year-old university student:

It`s 7 a.m. Park wakes up to the sounds of the song that serves as his cell phone alarm. As he eats

breakfast, he listens to his selection of “good songs for the morning,” which is played

automatically by his music service program. As he leaves home, he uses a streaming application

to listen to the latest tunes on his way to the subway station. After he gets off the subway train and

walks to school, a song coming from a café catches his attention. He`s never heard the song before

and he likes it. So he stops and uses a music identification app on his smart phone to record 3-5

seconds of the song. Moments later, the app tells him that the song is Cho Yong-pil`s latest hit,

“Bounce.” With the touch of a button Park purchases the song from a music download site.

Morning lectures are over and it`s now lunch time. Park wants to listen to the song that he heard

that morning. But while he can hear the melody in his head, he can`t remember the title of the

song or who sings it. As his smart phone music library already contains more than 1,000 songs, it

is impossible for him to quickly find the song. So he puts another app to use. He puts his mouth

to the microphone on the phone and hums a few bars from the song. It doesn`t matter that he

doesn`t know the lyrics. Soon the app tells him that it is Cho Yong-pil`s “Bounce.”

After lunch Park heads for a campus club called “People Who Make Music.” The members drift

in one by one and get ready to play. But there`s something wrong with the scene. There`s not a

single musical instrument in the room. The members gather round and each takes out his/her smart

phone and turns on a certain application. Park plays his favorite smart phone instrument — the

finger bass. The day`s rehearsal is a great success. Choi, the girl who plays the drums, has

improved immensely. If things go well, the group will be able to hold the first “Phoncert” as

planned next week. Park feels good as he heads home listening to songs recommended by his

friends from an online music community.

The day in the life of Park as described above is not a futuristic scenario from a movie. Twenty years

ago, no, even 10 years ago, this would have all sounded like a dream. But now such scenes are found

easily enough in ordinary everyday life.

In the past, Park would have woken up to the sound of the alarm clock, and fiddled with the radio

dial to find a song that he liked. On the move, he would listen to music on his Walkman. Hearing a

song that he likes while walking down the street, he would have headed into the shop, asked the name

of the song, and wrote it down in his notebook. Later he would have purchased the CD or album.

When he couldn`t remember the name of a song, he would have called a friend knowledgeable in

music and hummed a few bars over the phone to learn the name of the song and the singer. With

friends who like to play music he would have formed a band and they would have practiced together

in a campus club room or studio. Park would have recommended songs that he liked to friends and

acquaintances.

Certainly this was the way we did things not so many years ago. Indeed there is little difference

between the past and present scenarios in that both all activities are related to music. The greatest

difference is that Park of the present does everything on his smart phone, or using social network

services via his smart phone.

The scenario described above would be impossible without advances in IT. First, the music

identification service works by taking an “audio fingerprint” from a song`s audio signals and

matching it with the millions of audio fingerprints in a music database. While this may not sound like

a big deal, it is actually very difficult to sort through the sounds of human voices and other

miscellaneous sounds that come through the smart phone along with the audio signals.

Moreover, like human fingerprints, it takes the latest technology to extract the audio signal that will

distinguish a song from all the others in the world and match it on a database of millions of songs in

just a matter of seconds. It is even more difficult to identify a song from the humming of a few bars

of the melody because it cannot be taken for granted that all users will hum in tune. Hence high-tech

algorithms are necessary to work with incorrect tone, pitch and beat.

Then there is the service that recommends songs according to individual tastes. In the past, this could

only be done by people who are very familiar with your tastes, for example, a friend with similar

musical preferences or the owner of your favorite record shop, who acted as a sort of personal curator.

Today, this kind of service is available through “collaborative filtering” or “collective intelligence”

algorithms, which gather useful bits of information from millions of users to create “big data” for

analysis. In this way a “social curator” is created to replace the “individual curator.”

Information technology has thus deeply infiltrated every aspect of the way we enjoy music and is

taking care of tasks that formerly could only be performed by humans. However, the basis of music

lies in creation. Is it possible that information technology will be able to replace humans in that area

as well? The history of computerized music can be traced back to Mozart. His method of throwing a

die and changing a few bars of a composition according to the number shown is perhaps the origin of

algorithmic composition. But the creative function is still the domain of human beings, and hopefully

that will never change. Nevertheless, it is not uncommon to see the latest information technology

being employed in the creation and performance of music.

In 2011, this author happened to attend an event titled Seoul Digital Forum, which was hosted by a

certain broadcasting company. Every year world-renowned figures come to speak at this event and

join seminars and debates under a set theme, which for 2011 was “The super-connected society.” The

speech that impressed me most, however, was not that by American TV talk show host Larry King,

who was visiting Korea for the first time; nor that of Dennis Crowley, CEO of Foursquare, an

innovative social network service; nor that of Peter Schreyer, chief design officer of Kia Motors Co.,

who has managed to take Kia cars to a whole new level. No, it was the conductor and composer Eric

Whitacre who moved me most.

It was evident that he was truly a person putting super-connected technology to good use by adopting

it for the creation of art. Whitacre`s composition “Virtual Choir: Sleep” features some 2,052

musicians. Surely there is no concert hall or opera house in the world that can accommodate so many

performers at the same time. So how did Whitacre make this super choir happen? The answer is

simpler than you might think.

First, Whitacre posted on YouTube a video of himself conducting his composition at the tempo he

wanted, but with no sound. This video on YouTube, which is used by hundreds of millions of people

every day around the world, sparked the interest of many amateur vocalists. Finally, each participating

performer sang his/her part according to Whitacre`s conducting, and shared their recorded files. In

this way a super-choir of 2,052 voices was born. When all these voices were put together, the grand

performance of this super-choir was available for anyone to hear. It`s hard to find a better, more

creative example of the use of high-speed Internet infrastructure and the collaborative intelligence of

IT in the creation of art.

Let`s look at another example of the application of IT to art. There is a highly unusual orchestra at

Stanford University in the United States. It`s called MoPhO, short for “mobile phone orchestra.” The

only instrument the members use is the mobile phone. Though we all know that mobile phones and

smart phones can do a lot these days, it is still hard to accept the idea of an orchestra without

instruments.

But if you closely examine a smart phone, the crystallization of the latest information technologies,

you`ll realize that such concerns are unfounded. The CPU, the brain of the device, and the memory

of smart phones has long surpassed those of the average desktop computer. In addition, it is possible

to input dozens of different touch gestures on the large touch screen. In music, this means that a

variety of musical inputs can be made with sensitive movements of the fingers. This can be compared

to the superlative pianist who is able to easily control the pressure and movement of his fingers across

the keyboard to produce richly creative music.

The smart phone also has an assortment of high-tech sensors such as speed sensors, microphones,

location sensors and direction sensors, which enable it to express in the sound the various movements

and activities of the performer. However, the key to the smart phone as a musical instrument lies in

connectivity. Connected by wireless technologies such as the voice network, Wi-Fi and Bluetooth,

my performance on the smart phone can influence another person`s performance and vice versa,

thereby maximizing interaction with one another.

Such examples of the convergence of cutting-edge IT and art are not confined to the field of music.

The application of IT can easily be found in visual art, particularly media art, which, as the name

indicates, makes use of various media. Naturally, the mention of media art brings to mind the video

art of the late Paik Nam-june.

Video art is a departure from the stillness of paintings, an expression of moving images on multiple

monitors. Initially, it was an art of secession that surpassed the expressive possibilities of traditional

painting and sculpture, and represented a new art genre that would not have been possible without

the invention of television. In recent times, thanks to ground-breaking IT advances, another new art

genre has emerged — interactive media art, or interactive art. The aforementioned mobile phone

orchestra can be considered a form of this new art genre.

As the name implies, interactive art introduces into art for the first time the concept of interactivity.

In existing works of art, the artist`s message or intentions are expressed only once in painting,

sculpture or other form, and cannot be changed. The viewer`s response to the artist`s intention in the

work depends on the viewer alone; the artist is not responsible in any way. In other words,

communication between the artist and the viewer is in one direction. But the situation is very different

in interactive art. Of course, the motif and basis for any work of art is entirely up to the discretion of

the artist, but in terms of expression and response the role of the “audience” is very important.

Communication between the artist and the viewer is therefore two-way.

Interactive art is also distinctive in that the art work changes in response to surrounding conditions

such as the voices and movements of viewers, which means each viewer plays a part in making his

or her own unique works of art. So the artist abandons brush and paint and adopts high-tech sensors

and actuators, computer graphics, and visual and audio recognition technology, making interactive

art the true fusion of high technology and art.

From the examples discussed above, it is evident that cutting-edge information technology not only

makes our lives easier and enables products to be made faster; it already has had a major influence

on art. Critics may argue that art is the province of human creativity and that using information

technology as a means of prosthesis or augmentation to one`s abilities is meaningless, or even say

that it damages the integrity of artistic creation.

But if we look back, is it too far-fetched to argue that Van Gogh, who experimented over and over

again to find the colors that he wanted, and Paik Nam-june, who maximized his expressive potential

by adopting moving images, both sought solutions in technology? I am not saying that paintings made

with brush, paint and canvas or music made with acoustic instruments and human voices must give

way to “high-tech art” created with the latest information technology, not by any means. Rather, I am

one of the many who love and support “old fashioned art.” But if technology enables an artist to

convey something that could not be expressed before, that is, if the barriers of expression are lowered

thanks to technology, this would surely go a long way toward reducing aversion to the use of

technology in art.

The word for “art” in Korean is “yesul,” made up of the characters for “skill” (ye) and “technique”

(sul). The Latin root for “art” is “ars,” which means “skill” or “craft.” Ultimately, doesn`t art fall

under the umbrella of technological development sought by all human beings; or creative activity?

As mentioned in the beginning, Korea is undeniably a world leader when it comes to information

technology. But we are now being accused of concentrating only on quantitative growth and ignoring

qualitative growth. For this reason, the emerging keywords are “soft,” “creativity” and

“convergence.” We look up to the late Steve Jobs not only as an icon of the IT industry but also as an

icon of this age. Perhaps the most important message that he left behind is the significance of the

crossover of art and technology. No one would deny that this spirit is the driving force behind Apple`s

innovative products. When we are able to create art from the perspective of a technician and look at

technology with the eyes of an artist, that`s when Korea will become a true IT powerhouse.

[ Quarterly Philosophy and Reality, Summer 2013,

published by the Philosophy and Reality Co. ] www.koreafocus.or.kr


Estimation of North Korea’s Nominal Per Capita GDP in 2012

Kim Cheon-koo Research Fellow Hyundai Research Institute

I. Overview

Understanding North Korea`s current economic situation and its changes helps the government set

up reasonable and appropriate North Korea policies and prepare for a unified economy. If North Korea

achieves sustainable economic growth, improves its standard of living and narrows the gap with South

Korean economy, it will also have positive effects on the South. For example, unification costs will

be lower. On the other hand, if a major setback in North Korean economy leads to political turbulence

it could pose a serious threat to South Korea.

In order to evaluate North Korea`s economic development level and compare it to those of other

countries, Hyundai Research Institute has calculated the country`s nominal per capita GDP every

year. The institute`s method of calculation uses correlations between the country`s economic growth

and its various welfare indexes, its yearly grain production and infant mortality rate. The latter is

believed to be the most reliable indicator to measure North Koreans` income level, as it responds

sensitively to aggravated individual hygiene, insufficient nutritional intakes, reduced medical care

benefits, and exacerbated health environment resulting from economic fluctuations.

II. North Korean Economy in 2012

1. Domestic Situation

In 2012, North Korea`s food production increased and state construction work expanded. The food

production benefited from favorable weather conditions and support from the Food and Agriculture

Organization (FAO). According to the FAO, North Korea`s grain production in 2012 totaled 5.03

million tons, an increase of 5.9 percent from 4.75 million tons in 2011. Rice production increased 8.2

percent to 2.68 million tons compared with 2.48 million tons in 2011, and corn production also grew

9.9 percent, from 1.86 million tons in 2011 to 2.04 million tons in 2012.

State construction of power plants, housing and other infrastructure facilities expanded under the

North`s push to become a “strong, prosperous country” and Kim Jong-un`s “people-first” politics in

his first year in office. In the utility sector, North Korea completed the construction of Hwachon

Power Plant, and expanded its investment into building and repairing power stations. The North also

started the construction of skyscraper apartment buildings in Mansudae district, a core housing project

in Pyongyang. In addition, it erected homes in Pyongyang and border cities and built and repaired

roads and parks in these regions.

2. External Situation

North Korea`s trade with China and South Korea increased and the support from the international

community rose to the highest level in eight years. North Korea-China trade totaled $5.93 billion in

2012, up 5.4 percent from $5.63 billion in 2011. In 2012, North Korea`s export to China rose 0.9

percent to $2.49 billion from $2.46 billion in 2011, while its import from China grew 8.9 percent,

from $3.17 billion in 2011 to $3.45 billion last year. North Korea`s trade deficit against China widened

from $700 million to $960 million over the cited period.

Trade between the two Koreas amounted to $1.98 billion in 2012, up 15.3 percent from $1.71 billion

in 2011. North Korea`s export to South Korea totaled $1.07 billion, up 17.6 percent from $900 million

in 2011, while the North`s import from the South totaled $900 million in 2012, recording an increase

of 12.7 percent from $800 million in 2011. North Korea`s trade surplus with South Korea widened,

from $110 million in 2011 to $170 million in 2012.

The international community`s support for North Korea sharply increased in 2012 to record the

highest level since 2004. It reached $120 million in 2012, an increase of 32 percent from $89.23

million in 2011 and a hefty four-time jump from 2010. A total of 20 countries, including South Korea,

Norway, Switzerland, Canada, Russia and Brazil, provided humanitarian support for North Korea in

2012, marking an increase from six nations in 2010 and 17 in 2011.

III. Estimation of Nominal Per Capita GDP in 2012

This report analyzed correlations between infant mortality rates and per capita GDP on the basis of

data in 198 countries, and estimated North Korea`s GDP by taking into account the peculiar situation

of the communist country.

This report employed the regression analysis method by adopting a fixed-effect model. It used per

capita GDP as a subordinating variable, and infant mortality rate as an independent variable. The

logarithm-applied value of infant mortality rate was used as an independent variable, based on child

mortality and U.N. data. It also used the logarithm-applied value of per capita GDP as a subordinating

variable, with data supplied by the International Monetary Fund (IMF).

North Korea`s grain output was taken into account in addition to its infant mortality rate released by

the United Nations. The yearly infant mortality rate was calculated by using grain output as weights

on the country`s infant mortality rate released every five years.

North Korea`s grain production has shown modest increases in recent years, ending the type of steep

declines seen in the 1990s. To determine the grain output, this report relied on a survey of North

Korean crops conducted by the Food and Agriculture Organization at the end of each year. North

Korea`s grain production showed continuous growth between 1970 and the early 1990s, but

plummeted during the “March of Tribulation” period in the mid-1990s. The lowest point was in the

late 1990s. Production has slowly recovered since 2000.

North Korea`s infant mortality rate also has recovered from the depths of the 1990s and is beginning

to improve little by little. The infant mortality rate, which sharply rose during the “March of

Tribulation,” has since shown a slow decline.

Hyundai Research Institute`s regression analysis estimated North Korea`s nominal per capita GDP in

2012 at $783, up $63 from $720 in 2011. North Korea`s per capita GDP reached its peak at $986 in

1987, but turned toward a steady negative growth to fall to the mid-$600 range in the early 2000s.

The North Korean economy has improved a little upon the turn of the 2000s but has yet to recover

the late-1980s` level when its economic power reached its peak. Recently, its economic power has

continued to improve from $688 in 2010 to $720 in 2011 and to $783 in 2012.

North Korea`s nominal per capita GDP was lower than those of other communist countries, and

accounted for a mere 3 percent of South Korea`s. It stood at a lower level than those of China ($6,076),

Vietnam ($1,528) and Laos ($1,446). It was also far lower than those of countries with similar

population sizes, such as Malaysia ($10,304) and Romania ($7,935). Among Asian countries,

Bangladesh ($850) and Myanmar ($835) have similar income levels to North Korea.

Although North Korea`s nominal per capita GDP was up in 2012, it still remained at South Korea`s

mid-1970s level, and accounted for only 3.4 percent of the South`s nominal per capita GDP, which

amounted to $23,113 in 2012.

IV. Policy Implications

North Korea still suffers from food shortages with its economic development nearly 40 years behind

South Korea. Therefore, it is necessary to help the North develop a self-reliant economy by

reinvigorating inter-Korean economic cooperation, continue to provide humanitarian aid to the North,

and narrow the wide gulf in economic power between the two Koreas.

North Korea`s current economic level makes self-sufficiency unattainable. It is necessary for South

Korea to help the North develop self-reliant economy by revitalizing economic cooperation in

proportion to improvements in the overall inter-Korean relations. Investment is needed in social

infrastructure, energy, resources development and logistics network, which will provide the industrial

foundation prerequisite for jumpstarting the North Korean economy. For example, South Korea will

need to invest in the basic industries of steelmaking and oil refining, the construction of infrastructure,

including power plants, roads and ports, and the creation of industrial complexes for small- and

medium-sized enterprises.

South Korea will need to continue to provide humanitarian aid through the United Nations and other

international organizations, to help the North`s most vulnerable people, including children, who suffer

from low income levels and food shortages. Although increased crop production in 2012 has

improved the overall food situation in North Korea, the stunted growth and malnutrition of North

Korean children is still evident. South Korea should act in purely humanitarian concern and continue

to provide grain, food and medicine regardless of political and military conditions between the two

Koreas.

The widening income gap between the two Koreas is swelling the cost of future unification to an

increasingly burdensome level. Therefore, South Korea needs to mount efforts to bridge the gulf. It

should help the North resuscitate its economy and establish an economic system capable of delivering

stable, sustainable growth. To maximize the return of unification expenditures, the South should also

make pre-unification investments in North Korea`s industries and regions that produce bigger

synergic effects than others.

[ Issues and Tasks 13-29, July 11, 2013, Hyundai Research Institute ] www.koreafocus.or.kr


Kaesong Industrial Complex as Key to Peace on Korean Peninsula

Yang Moon-soo Professor University of North Korean Studies

I. Introduction

The Kaesong (Gaeseong) Industrial Complex, the pilot economic cooperation project between South

and North Korea, is in a state of “temporary closure.” This marks the complete suspension of inter-

Korean economic cooperation projects, which began with the so-called July 7 Declaration in 1988. It

follows restrictive steps by the North, starting with barred entry of South Korean managers and

materials into the complex and ending with the withdrawal of all North Korean workers from the

special zone. Thus, nine years after South Korean manufacturers began operations in Kaesong across

the border, the joint industrial complex is empty.

After the conservative Lee Myung-bak administration took over in 2008 and adopted a hard-line

approach toward Pyongyang, provocations and reactions raised doubt about the fate of the complex.

In July 2008, the Mount Kumgang (Geumgang) tourism project was suspended after North Korean

guards fatally shot a South Korean tourist. Two years later, after the sinking of a South Korean Navy

patrol craft in the West Sea, the South suspended merchandise exchanges and bonded processing.

Nevertheless, the industrial park remained open until recently.

This study examines the history and significance of the complex and its future prospects as part of

the debate over strategies for restoring peace on the Korean peninsula. The final section explores

policy tasks for the South Korean side.

II. Background and History of Kaesong Industrial Complex

1. Background and Initial Blueprints

The Kaesong Industrial Complex developed from the West Sea Industrial Development Plan that the

late Chung Ju-yung, head of the Hyundai conglomerate, proposed during his visits to Pyongyang in

December 1998 and February 1999. Chung envisaged a complex covering about 6,500 acres on the

west coast of North Korea, which Pyongyang authorities generally accepted.

Hyundai Group initially suggested Haeju, a port city near the South-North border, but North Korean

leader Kim Jong-il preferred Sinuiju, near the Chinese border. After the June 2000 summit between

South Korean President Kim Dae-jung and the North`s Kim Jong-il, relations between the two Koreas

rapidly improved. The two sides eventually agreed on the construction of a large-scale industrial

estate near Kaesong, about 16 km north of the border separating the two Koreas.

At the outset, the Kaesong project envisaged an industrial zone and residential town covering 66

square kilometers in Kaesong City and Panmun County of North Korea and South Korean enterprises

operating manufacturing facilities and North Koreans manning assembly lines. South Korean

developers were to secure 50-year land leases along with other business rights from North Korean

authorities and distribute parcels to South Korean and international investors.

The project zone of the complex, situated 160 km from Pyongyang and 70 km from Seoul, is to

consist of 6,400 acres of industrial plants and 9,600 acres of residential town. The industrial section

is to be developed in three stages: 800 acres in the first stage, 1,200 acres in the second and 2,800

acres in the third stages. (After the initial agreement, the second and third stages were revised

downward from 1,600 acres and 4,000 acres, respectively.)

Upon completion of all three stages, a total of 2,000 firms are to be operating in the complex,

employing as many as 350,000 North Koreans and producing US$16 billion worth of manufactured

goods annually. The master plan called for labor-intensive small manufacturers in the first stage,

followed by export industries linked to the financial market of Seoul and logistics systems based in

Incheon, South Korea, which has large air and sea transportation facilities. The third stage is expected

to feature heavy-chemical and high-tech industries, including multinational businesses, making

Kaesong an economic hub in Northeast Asia.

The project was seen as a great opportunity for win-win cooperation with the promise of huge

financial returns after the three stages are completed: 24.4 trillion won ($21 billion) in total value

added and 104,000 work positions for South Korea, and $600 million income through 725,000 jobs

for North Korea annually.

2. Bottlenecks and Twists in the Progress

The Kaesong project has faced numerous problems in the course of its implementation. In the early

stage, financial difficulties at Hyundai Asan Corporation delayed the ground-breaking and the two

Koreas haggled over investment conditions for South Korean businesses. The mercurial security

situation on the Korean peninsula also has affected progress. For example, the North`s missile

launches and its first nuclear test in 2006 led to the postponement of the distribution of plots for

individual investors and a number of them withdrew from the project.

An even bigger problem erupted in the autumn of 2008 when the North began to pressure the Southern

businesses for more financial rewards. In December 2008, the North drastically reduced the number

of South Korean vehicles and personnel allowed into the complex. In March 2009, when South

Korean and U.S. forces conducted their annual Key Resolve joint exercise, North Koreans blocked

traffic between the complex and South Korea three times without prior notification, and they

arbitrarily detained a Hyundai- Asan employee for several days, accusing him of making unfriendly

remarks about the North.

Pyongyang upped the ante in the following months by unilaterally declaring a review of the wages

for its workers and the rent for the distributed land. They abrogated regulations and contracts and

unveiled new contracts. South Korean investors generally ignored the North`s action. However,

purchase orders fell and suppliers were reluctant to send shipments, fearing payment problems. The

North finally eased the pressure in August 2009.

After the North`s sinking of the Cheonan patrol craft and artillery shelling of Yeonpyeong Island in

2010, the South imposed economic sanctions, including a ban on new investments in the Kaesong

complex. Pyongyang again mentioned the possibility of closing down the complex as inter-Korean

relations plummeted.

3. Progress of the Project

The chronology of major events in the project include: the signing of a business agreement between

Hyundai and North Korean authorities in August 2000; ground-breaking ceremonies in June 2003;

land leveling work in April 2004; and release of the first products, “Kaesong kettles,” in December

2004. The leveling work was completed in 2006 and all basic infrastructure for power, water supply,

communication and waste disposal was in place by October 2007, when ceremonies were held to

mark the completion of the first stage project.

Plant sites were distributed to a total of 222 firms on three occasions between 2004 and 2007. Up to

300 firms are expected to be operating in the first stage project zone. When the complex was closed

in May, there were 123 firms.

The number of enterprises has increased from 18 in 2005 to 123 in 2012, with the total number of

North Korean workers rising from 6,013 to 53,448 and annual output soaring from $14.9 million to

$469.5 million during the same period.

III. Significance of the Kaesong Industrial Complex Project

1. Economic Significance

To examine the significance of the Kaesong complex to South and North Korea, it is necessary to

assess its accomplishments so far. The greatest achievement, of course, is that the complex has

successfully established a win-win economic cooperation model. Throughout the 25 years of inter-

Korean economic contacts, the complex was the first and only successful model of cooperation. With

the first stage finished, the complex represents the possibility of establishing second and third

industrial complexes in the form of special economic zones.

The basic concept of the project is for South and North Korea to combine their strongest elements of

production ― capital and technology in the South and labor and land in the North ― to gain increased

competitiveness in a win-win situation.

For the South Korean economy, Kaesong offers a new life to small industries that are struggling with

rising wages and high rent and are unable to move production abroad, and also benefits enterprises

that want to return production onto Korean soil after unsuccessful operations offshore. With these

companies surviving by relocating to Kaesong, the South`s industrial competitiveness will rise and

the seeds of new growth engines can be planted.

The Kaesong complex also built strong business links with home industries. A recent research report

revealed that Kaesong manufacturers on average had supply contracts with 34.4 South Korean firms

and transactions worth 4.79 billion won each in 2010. Between 2005 and 2010 (by September), the

complex created industrial inducement effect for $4.74 billion, value added effect for $1.38 billion

and employment of 19,721 workers.

As for North Korea, the project provides various resources that are necessary for its economic revival.

It offers not only the wages for the burgeoning number of employees in the joint project but also

foreign exchange income. The complex offers opportunities to learn advanced technologies and gain

operational skills while helping the North gain an international image of economic openness.

If the project develops as planned, the overall scale of inter-Korean economic cooperation and

exchanges will be expanded and a relaxation of tensions on the Korean peninsula can be expected.

As a result, international credibility will go up for both the South and the North and help them attract

foreign investment. Thus, the creation of a single economic community encompassing both parts of

the divided peninsula may be expedited.

2. International Competitiveness

To understand the economic significance of the Kaesong complex, it is necessary to assess its

international competitiveness. This study chose a special development area in Shandong Province,

China, and industrial complexes near Hanoi and Ho Chi Minh City in Vietnam for comparison with

Kaesong. The time frame is 2010 but some data are 2007-2009 figures.

First, land costs and taxes in the Kaesong complex are lower than those in China and Vietnam but

plant construction costs are twice as high. It is because firms operating in Kaesong hire South Korean

builders and use South Korean building materials.

The Kaesong complex also has a significant comparative advantage in logistics and customs, in

addition to exemption of taxes, because of its proximity to South Korea. On the other hand, Kaesong

manufacturers cannot procure raw materials from North Korea or sell their products in North Korea.

The wage scale in the Kaesong complex is lower than those of the Chinese and Vietnamese

counterparts. The monthly pay in Kaesong is $60.80 whereas it is $111.80 to $135.50 in the special

development zone in Shandong and $63 to $71 in the industrial complexes near Hanoi and Ho Chi

Minh City. Including the basic salary, the total cost per worker is $129 in Kaesong, much lower than

in China and Vietnam. The amount breaks down to $80 for salary and overtime, and $49 for meals,

transportation, insurance and other benefits. The average worker`s cost stands at 28 to 35.1 percent

of the average cost of $368 to $460 in Shandong Province and 78.7 to 85.4 percent of $151 to $164

in Vietnam.

As for productivity, survey results in the early days of the Kaesong complex are available. In most

items, the firms were more productive compared to Korean businesses in China. North Korean

workers` labor productivity was 8 percentage points higher than their Chinese counterparts, perhaps

because of Kaesong`s low employee turnover and the North Koreans` strong work ethic.

Manufacturing cost was 7 percentage points lower in the Kaesong complex, while product quality

was 2 percentage points higher. Easy communication with the same language and application of the

same production standards used in the sister unit in South Korea are believed to improve productivity

in Kaesong. The average operation rate in Kaesong was 15 percentage points higher than the Korean-

invested manufacturers in China. It was because relatively new facilities were moved into Kaesong

and advanced management methods were adopted.

In other research, enterprises were asked to judge their North Korean workers` productivity. Only 10

percent said they were dissatisfied while 33.8 percent were satisfied or very satisfied and 56.3 percent

rated performance as average.

Overall, the Kaesong complex is inferior to the manufacturing areas in China and Vietnam in terms

of plant construction costs, raw materials procurement and sale of products in the local market. On

the other hand, Kaesong provides favorable conditions regarding land cost, logistics, wage scale and

taxation. It should also be considered that the investment environment in China and Vietnam is rapidly

deteriorating with steep rise in wages and other detrimental business conditions.

South Korean managers of manufacturers in the Kaesong complex generally believe that productivity

there is good or average. Among respondents in a survey asking about competitiveness, 7.4 percent

said “very high,” 54.4 percent just “high,” 33.3 percent “average,” 3.7 percent “low” and 1.2 percent

assessed it “very low.”

3. Political and Social Significance

The Kaesong complex has as strong socio-political significance as its economic significance. First, it

can contribute significantly to improving and developing inter-Korean relations. The construction and

operation of the industrial complex lead to large-scale human contacts and exchanges, which can help

reduce tension on the Korean peninsula. Increased economic dependence between the South and the

North through the complex may also help stabilize relations between the two sides. Indeed, when

inter-Korean ties have tightened, Kaesong has had a calming effect.

Since 2008, Pyongyang has occasionally threatened to close down the Kaesong complex but it has

checked itself. It describes the current shutdown as “temporary” and claims to reserve the right to

decide on an ultimate closure. Seoul, for its part, excluded Kaesong when it decided extensive

economic sanctions against the North on May 24, 2010 for the torpedo attack in the West Sea. Both

the North and the South feel a great political burden when they make any decisions on the Kaesong

complex.

The May 24, 2010 measures were of special significance to the joint industrial complex. As South-

North trade and other forms of contacts were entirely cut off in retaliation for the North`s military

provocations that caused the loss of lives, Kaesong became the only opening between the two Koreas.

Second, the Kaesong complex is promoting reform and openness of North Korea. While carrying out

the joint project, North Korea is learning the mechanisms of a market economy. North Korean

officials involved in the administration of the complex, mid-level managers and workers are

attentively watching how manufacturing plants function in a market economy system. The North

Koreans are especially eager to learn about taxation, insurance and accounting systems of the

capitalist world when negotiating payment arrangements with the South.

North Korea is acquiring know-how for external opening through Kaesong. Beyond simply offering

land and labor for foreign investors, they are trying to improve investment conditions and work

environments though their experiences in Kaesong. It is a valuable model for the North`s opening of

other areas for external economic collaboration.

Third, Kaesong, which was originally a strategic point of military operations in the western part of

the border, has turned into a place of peaceful economic cooperation, thereby helping reduce military

tension in the area. When work started for the industrial complex, North Korean ground forces

deployed there were moved out of the area. It had the effect of redrawing the Military Demarcation

Line some 10 kilometers to the north. The Kaesong-Munsan corridor, a traditional invasion corridor

from the North, now serves as the supply route for inter-Korean economic cooperation.

Fourth, the Kaesong complex has helped change North Korean people`s perceptions of South Korea.

As working in the complex improves the livelihood of local residents through a high salary by North

Korean standards and various welfare benefits, the employees and their neighbors have shed their

enmity toward the South and turned into admirers of South Korean life.

4. Limitations and Problems

The Kaesong complex still has problems. The biggest issues are transportation, communication and

customs clearance. The rigid procedures for entry and exit cause the biggest headaches. Telephone

and facsimile can be used but Internet and mobile communication is not available.

The restriction on “strategic items” and the rules on the country of origin are major obstacles to the

development of the joint industrial complex. South Korean firms face difficulties in installing

production facilities in the complex because they should be inspected for possible use as strategic

goods.

Kaesong products are labeled “Made in North Korea,” so the chances of exporting them is severely

limited due to international sanctions prompted by North Korea`s nuclear and missile tests. Export of

North Korean-made goods to the United States is not banned but is virtually impossible because of

extremely high tariffs. The Japanese market is similarly inaccessible.

Workforce supply is another problem. North Korea, unable to provide dormitories for the tens of

thousands of workers at Kaesong, asks South Korea to build them. Seoul not only needs financial

arrangements to build the additional facilities but also social consensus to do so.

The Kaesong complex has the fundamental problem of entirely depending on South Korean

investment, which is different from special industrial zones in China or other countries. North Korea`s

Kaesong Industrial District Management Committee has a scant source of income and weak

budgetary independence. The complex is more like a large bonded processing park rather than a

special economic zone. It has little connection with North Korean economy as raw materials are not

supplied from the country and products are not sold there.

Lastly, it should be noted that the complex is vulnerable to tensions on the Korean peninsula. When

North Korea`s missile launches and nuclear tests prompted international sanctions, the investment

environment for the complex quickly deteriorated and so it did when the North staged military

provocations against the South that led to Seoul`s own economic sanctions. Buyers withdrew and

production declined on such occasions.

IV. Assessment and Prospects

1. Assessment

The primary reason for the “temporary closure” was the North`s abrupt restrictive measures and the

South`s uncompromising response. North Korea without prior warning blocked the entry of South

Korean personnel into the industrial complex on April 3 and then announced the withdrawal of all

North Korean workers five days later. South Korea repeatedly asked for discussions to resolve

problems (on April 8, April 11, and April 25), but the North ignored the requests. Seoul on April 26

decided to pull out all the Southern personnel from the complex and completed the withdrawal on

May 3.

The North`s actions were extreme and self-destructive for any reason. It is understood that they were

connected to the North`s increasingly provocative stance and the international community`s hard-line

response. Pyongyang used Kaesong as a scapegoat to raise the tension on the peninsula and increase

pressure on the United States and South Korea.

But the North`s steps clearly violated the 2003 agreement on four major economic cooperation

projects and the 2005 accord on entering and staying in the Kaesong complex and the Mount

Kumgang tourism area. Even North Korea`s domestic law on the Kaesong Industrial District enacted

in 2002 stipulates that “investors` rights and interests shall be protected.” As the international

community watched, the North`s arbitrary action must have embarrassed potential investors in China

and other foreign countries.

On the other hand, Seoul`s quick and decisive pullout of all Southern personnel invited mixed

opinions. Supporters said that the South demonstrated its determination not to be manipulated by the

North anymore and did what was needed to protect its people when the North barred food and

medicine for those who remained in the complex.

Detractors said the pullout aggravated inter-Korean relations and shelved the “trust-building process”

that President Park Geun-hye had pushed since her inauguration. Some were particularly critical

about Seoul`s ultimatum of a “grave decision” issued on April 25, giving the North only one day to

reply. In a National Assembly Foreign Relations and Unification Committee meeting, even some

ruling party members expressed regret that the government acted too rigidly. It was pointed out that

the Unification Ministry was unwise to make the move while a South Korea-U.S. military exercise

was still in progress, a time Pyongyang usually stops speaking to Seoul. Besides, April 25 was a North

Korean holiday.

2. Ripple Effect of Closure

An irrevocable shutdown of the Kaesong complex would deal a tremendous economic loss to both

South and North Korea. According to the Unification Ministry, the South has spent 400 billion won

($360 million) in infrastructure construction while private enterprises poured 560 billion won ($500

million) into setting up plants and other provisions. Investors must have recouped part of their stake

already but if the complex is permanently closed, they will lose a business opportunity that originally

was guaranteed for 50 years.

Meanwhile, South Korean enterprises would lose the advantages of relocating in Kaesong. They

would have to compensate customers for failed delivery of Kaesong-made products and return to the

unforgiving business environment of the South, where their survival would be tenuous. Moreover,

some 6,000 suppliers to Kaesong operations would lose a revenue stream.

The opportunity cost in building up Kaesong instead of keeping the investment outlays inside South

Korea may also have to be considered. One study calculated that total investment in the complex as

of 2009 amounted to 730 billion won, which could have yielded net production worth 630 billion

won had it stayed in the South.

On the political front, permanent closure would result in the breakdown of inter-Korean relations and

a return to the era of blind confrontation like decades back. There would be no trace of inter-Korean

economic cooperation and no opportunities for investment in North Korea could be found for a

considerable time.

North Korea`s primary loss would be in wages, which totaled $90 million last year. Some 54,000

North Koreans assigned to Kaesong will lose their income and become unemployed. It is a loss that

the hobbled North Korean economy can ill afford.

The bigger consequence for the North will be the crippling impact on future foreign investment in the

country. The North will lose international trust, leading to much greater hesitation to lend money to

the country or invest there.

Either the North or the South will be held responsible for erasing a symbol of inter-Korean

cooperation and hope if a permanent closure transpires. Pyongyang has been trying desperately to

have the blame pointed at Seoul. It is because the Kaesong complex is part of Kim Jong-il`s legacy

and its closure would betray his lasting authority.

3. Future Prospects

Both Koreas are reluctant to terminate the joint project. The North continuously states that “the

responsibility for the present situation with the Kaesong complex lies entirely with the South.” The

South Korean government and ruling party also maintain that the Kaesong complex should not be

closed down. A further worsening of the situation is possible with the North confiscating all the assets

in the complex and the South cutting power and water supply to it.

However, if the Kaesong complex remains closed too long, it may become irrevocably inoperable

even without a formal decision. Although the situation varies among the manufacturers, if the

complex is reopened within the next two to three months, normal operation will be possible with the

replacement of machinery parts and return of buyers. But after three months, restarting plant

operations would cost as much as the initial investment. Few enterprises would dare risk so much

again.

Both Seoul and Pyongyang have insisted that the other side should change its attitude and make

concessions. Both believe that one concession would lead to another. Both are waiting for the other

side to blink first.

Fundamentally, Pyongyang raised the question of the joint industrial complex in an attempt to secure

a position of strength in future negotiations with the United States and to hold the initiatives in dealing

with the new administration in Seoul. But their scheme seems to have gone awry as the Park Geun-

hye government refused to take a flexible stance toward the North. However, it is unlikely that North

Korea will change its strategy at the moment. Considering the systemic rigidity in the North, it can

hardly be expected that Pyongyang will take steps toward normalizing the complex unless the South

offers them some excuse to do so.

The South Korean government is applying a principled stance on the Kaesong issue. During her

conversation with editors of newspapers and broadcasters on April 24, President Park said that her

government would “end the vicious circle of making concessions to the North upon its intimidation

in brinkmanship tactics.” She stressed that there would be no more compromise just to pass a

stalemate and that Kaesong would be an indicator of how the relations between the South and the

North should develop in the future.

It is the unswerving position of the Park administration that the North should make the right choice

to resolve the Kaesong problem. The door to dialogue is open and the North should withdraw its

unjust and unreasonable measures so the complex will return to normal operations, the Seoul

authorities say. There is little likelihood that the South will take any hasty action to seek the settlement

of the Kaesong problem.

V. Conclusion

The Kaesong complex is the only successful model of joint venture in the entire 25-year history of

inter-Korean economic cooperation. It is a mutually beneficial project that ensures a win-win

relationship. The complex helps improve and develop ties between the South and the North, promotes

reform and openness in North Korea, reduces military tension on the Korean peninsula, and changes

the North Korean people`s perceptions on the South.

For the time being, the South should avoid taking any action to aggravate the stalemate, such as

stopping power and water supply to the complex. Nor should the North attempt to seize the South

Korean assets in the complex as they did at the Mount Kumgang Tourist Region.

It is necessary for both Seoul and Pyongyang to maintain the channel of dialogue, even at the lowest

level, on Kaesong. Working-level contacts should continue to handle such affairs as checking

communication lines, shipment of finished products from the complex, entry of electric and piped

water technicians to the complex, etc.

The South Korean government should make efforts to raise people`s concerns about and support for

the normalization of the Kaesong complex, manifesting strong intent to maintain the joint industrial

project and persuading those with opinions in favor of its closure. It is worth noting that the Lee

Myung-bak administration`s measures on May 24, 2010 to retaliate the North`s military provocations

spared Kaesong from a package of economic sanctions. Unlike trading or bonded processing

facilities, the nature of the Kaesong complex makes it difficult to restore operations once they are

suspended. The government may well not pursue an immediate and unconditional resumption of

operations, but authorities should listen to the concerned voices that its resurrection will be impossible

after a few more months of “temporary closure.”

Kaesong is a sub-issue of inter-Korean relations so any moves to solve it should be undertaken from

the broad approaches on the South-North problems. Government strategists should make deeper soul-

searching on the fundamental problems of inter-Korean relations, listening to the complaints that the

new administration has yet to show a grand roadmap on the question of South-North relations, peace

and reunification of the Korean peninsula.

As an initial step to tackle the complex problem, it may be necessary to offer humanitarian aid to the

North to help change the current confrontational atmosphere. The government has repeatedly stated

its principle that humanitarian assistance will continue regardless of changing political situations.

[ National Strategy 19-2, Summer 2013, published by the Sejong Institute ]



- Jasmine Lee’s First Year as First Naturalized Korean Lawmaker

Jasmine Lee’s First Year as First Naturalized Korean Lawmaker

Lee Sang-hwa Staff Reporter The JoongAng Ilbo

More than one year has passed since Jasmine Lee was elected to the National Assembly to become

the first naturalized Korean citizen to win a parliamentary seat. Before becoming a proportional

representative, the 36-year-old working mother had starred as the Filipino mother of protagonist

Wandeuk in the popular Korean film “Wandeuki,” also known as “Punch,” and was a panelist for TV

programs such as “Love in Asia,” which deals with international marriages.

Due to her entertainment work, she was considered just a puppet lawmaker of the ruling Saenuri

Party. The prediction, however, has turned out to be far off. The Filipino-Korean representative

proposed 13 bills in her first year and three were passed at parliamentary plenary sessions. She never

missed a plenary session or standing committee meeting. This was extraordinary, considering the

reality of Korean politics in which lawmakers fail to completely fulfill their responsibilities.

Opposition Democratic Party lawmaker Jeong Cheong-rae of the Foreign Affairs and Unification

Committee, to which Lee belongs, has expressed hope that she will run in the next general elections

on the Democratic ticket so they can work together again. The ruling Saenuri Party`s evaluation on

Lee`s legislative activities is also taking a positive turn.

Empathy for Pain of the Korean War

On June 25 we met briefly when she was on her way back from a commemoration event for the 63rd

anniversary of the outbreak of the Korean War. She bore a Ministry of Patriots and Veterans Affairs

badge on her blouse. Even though she is a naturalized citizen, it seemed that she felt Korea`s bitter

history as much as other Korean nationals. Lee added that she participated in a documentary dealing

with the Korean War in 2010 and has been in touch with some Korean War veterans. She also said

that only four lawmakers attended the event, including herself and the independent member Ahn

Cheol-soo. Ryu Seung-min, chairman of the National Assembly`s National Defense Committee,

expressed his gratitude to Lee, who has participated in the event for two consecutive years.

On June 27, we met again and I followed Lee for the day. At 9:50 a.m. she stepped into the National

Assembly Members` Offices building at Yeouido, Seoul. Breakfast meetings are usually held at 7

a.m., but there was no meeting scheduled on this day, which enabled her to have breakfast with her

children for the first time in a long time.

A Lawmaker`s Day

While waiting for an elevator, she looked at posters on a hallway bulletin board and told me, “Things

have changed now, but at the very beginning, once a fellow member even asked me if I could speak

Korean.” She recalled the anniversary ceremony of Family Month in May last year, right after the

opening of the National Assembly. The organizers seated an interpreter next to her. “I was really

embarrassed, asking myself, ‘Do they really think they elected a person who cannot even speak

Korean?’”

At that moment she felt a “wall” for the first time. “I thought they knew I can speak Korean and their

perception toward multiculturalism had changed because of my appearances in a film and on TV

programs for the past six years. But my expectation was way off. There was nothing I could do. So I

made up my mind, ‘Okay, to begin with I will actively work to let the public know who I am.’”

At 10 a.m. a meeting of the Domestic Violence Subcommittee, which belongs to the Special

Committee for Domestic Happiness of the Saenuri Party, was held in Lee`s office. She now serves as

chairperson of the subcommittee, responsible for the ruling party`s policies related to domestic

violence, which is among the four social evils that President Park Guen-hye has targeted. With the

ruling party slated to unveil comprehensive measures by the end of August, the meeting ended at

12:10 p.m., far later than scheduled.

During the meeting, Lee took notes in Korean. Although the command of her self-taught Korean is

so fluent that she can translate, she is often confused with some legal terms that contain Chinese

characters. “I couldn`t ask at first even if there was a word that I didn`t know. But now I ask for help

from my colleagues. Sometimes they are also confounded by some words that I ask about,” she

explained.

What Lee asked about during the meeting was the name of an organization, Daehanminguk jaehyang

gyojeong donguhoe, which refers to the Korean Retired Correctional Officers Association. She still

feels unfamiliar with such Chinese character words as jaehyang (人人 ) meaning “retired” or gyojeong

(人人 ) meaning “correction,” the act of rectifying convicted offenders.

That meeting was followed by another. This time it was a luncheon meeting held by a group dedicated

to economic democratization in which Lee is involved. At 1:25 p.m., a general meeting of the

Assembly members of the Saenuri Party was held in Room 246 of the parliamentary building. During

that meeting, lawmakers vigorously exchanged their opinions on the disclosure of a 2007 inter-

Korean summit transcript. Lee intermittently talked to the party`s spokeswoman Kang Eun-hee, who

sat next to her.

Owing to her outgoing personality, Lee has been able to get easily acquainted with some members of

the opposition Democratic Party. Last year she raised 3.8 million won in support funds, the fourth-

smallest amount among the members of the ruling party. Given that the maximum limit of

contributions allowed for each supporter amounts to 5 million won, if she received the maximum

amount from a single supporter this year, she could raise more money than last year. After her

situation became known, senior Saenuri cohorts sent her money this year. She said, “More people

come up and ask me for help. Even so, I can`t hand out money whenever I am asked to do so.

Therefore, I think, the best way I can help them is make effective policies.”

At 2:15 p.m., a parliamentary plenary session began. It was her fourth and last meeting of that day.

During the plenary session, a total of 65 bills were passed, including a bill to revise the Act on

Forfeiture of Offenses of Public Officials. It aims to extend the recovery period of a large outstanding

fine from former president Chun Doo-hwan. Some empty seats were seen. Lee stayed all the way

through until the session ended at 4:50 p.m.

Industriousness is Lee`s trump card. The roll book showed she was absent from one standing

committee meeting last year, but that is because, Lee explained, the roll call took place when she was

out for a while. “As a first-term lawmaker, if possible, I am trying to attend all the meetings for the

whole meeting. Interesting stories are always told to the end.”

Attributable to her efforts, she was selected by a civic group on June 18 as the winner of the grand

prize in legislative performance evaluations. “Whenever I went to forums and ceremonial events, the

lawmakers who attended those events left after their congratulatory speech, which mystified me. Well,

organizers were rather embarrassed to see me staying there to the end. When they quietly asked me

if I was going to dine with them, I realized that as a lawmaker my presence to the end on such

occasions sometimes makes organizers uncomfortable. Even so, I believe that staying through the

end still matters,” she said with a smile.

During the parliamentary plenary session, the ruling and opposition parties were in sharp

disagreement over the disclosure of recordings of the 2007 inter-Korean summit. When some

lawmakers made comments, others jeered. I wondered whether Lee has become accustomed to such

behavior. She was baffled to find lawmakers speak impolitely to ministers during parliamentary

interpellation sessions. She said, “When they asked ministers, ‘What did you say, minister?’ I really

wondered why they talked down to ministers. When I learned to speak Korean, the first thing that I

picked up was the honorifics. So for me, it`s uncomfortable to use crude language even to a child, so

to ministers who come to interpellation sessions, I address them as ‘Honorable Minister.’ I felt

lawmakers` heckling was different from what I saw on TV. Even though they heckled one another at

formal meetings, they let their hair down after the meetings. I think it is necessary to go through the

process of clashing and eventually converging different ideas.”

In the last general election, the presidential election, and the April by-elections, Lee was actively

engaged in campaigns carried out in electoral districts such as Jeolla provinces and Nowon-gu, in

Seoul, that are unfavorable to the ruling party. Amid these activities, she felt what Korea`s regionalism

is all about. “One of the store owners in a market warmly welcomed me, saying, ‘Here comes

Wandeuk`s mother.’ After we chatted on, the store owner asked me, ‘What brings you here?’ So I

replied that I was there to bolster the Saenuri Party`s campaign. At that, the person`s face suddenly

hardened and just told me to get out,” she recalled.

Hardworking, Most Valuable Asset

While Lee was in the parliamentary plenary session, the eyes of her aides in her office were centered

on the session hall. Lee`s office boasts the highest female ratio in the National Assembly building.

The eight people working in her office, except for the chauffeur, consists of five females and three

males. Many of them are outgoing and enterprising, and have resumes that are quite unique.

Secretary Ariong is a Mongolian immigrant woman who worked for the Gyeonggi Provincial Office.

Secretary Lee Min-jeong was engaged in the movement for women`s rights. She said, “The

multicultural issue has something in common with that of women`s rights in the 1960s and 1970s.

The abolishment of the family registry system, which was controversial in those days, is now taken

for granted. The issue of multiculturalism might become as such.”

It was the first day for Boris Ondo, 24, who is from Gabon, Africa, and is on an internship in Lee`s

office. Now studying political science and diplomacy at Hankuk University of Foreign Studies, Ondo

said that while looking for places where he could enhance his work experience and skills, someone

suggested that he join Lee`s staff. Back from the plenary session, the lawmaker had a talk with him

in English. Ondo, who has been in Korea for two years, said that he dreams of becoming the president

of Gabon.

Afterwards, the eight aides and secretaries came in and out of the office and reported back to the

lawmaker. Lee was elected under proportional representation for multiethnic families and now leads

a forum dedicated to multiculturalism. The first member to join the forum was National Assembly

Speaker Kang Chang-hee. The 13 bills that Lee proposed were not designed to reform the subsidy

system for multicultural families or completely overhaul immigration policies. Instead, they aimed to

gradually improve related policies, including reinforcing the supervision of international marriage

agencies and having compulsory multicultural policy education in place.

When asked whether she is preparing an innovative policy, she said she is not because such a bill

could easily backfire. She said, “As my election has been viewed as great progress per se, a radical

bill could shock society.” In August last year Lee submitted a bill to oblige elementary, middle and

high school teachers and government employees to receive education on multiculturalism. After long

discussions, it was amended and passed as a recommendation on the grounds that there has been no

social consensus that Korean society should move forward as a multicultural society, therefore it is

impossible to make it mandatory.

“In the beginning, I considered making a multicultural family support act, but I gave up because there

are a lot of related issues to resolve first,” Lee said. “And also I will not submit a bill to ban

discrimination against foreigners. If I do so, it could be viewed negatively. Instead, I will give aid to

senior lawmakers who take the lead in proposing the bill.”

Lee is listening attentively to the opposition party. Last September she held a meeting with male

victims of international marriage fraud (International Marriage Fraud Complaint Center), which has

taken a pessimistic view of multicultural policies. Without inviting outside experts, only Lee and four

officials from the complaint center were present. In April, she held a joint meeting of female and male

victims of international marriage frauds, the first meeting of its kind. Officials from the Ministry of

Justice were quite impressed that such a meeting took place to share views.

Lee initially wanted to be assigned to the Culture, Sports, Tourism, Broadcasting and

Telecommunications Committee because she had worked in the movie industry and believed that

improvement of public perception toward multicultural families is the most important task in

multicultural policies. But that committee is a political battleground. The party leadership felt it would

be difficult to send Lee who seems to lack a fighting spirit to the conflict-stricken committee.

Thus, Lee was assigned to the Foreign Affairs and Unification Committee. It was a blessing in

disguise. “Koreans overseas who I met while working as a member of the committee often say, ‘Rep.

Lee, who is an immigrant herself, has more empathy for us than any other lawmaker.’ And also I think

that policies for North Korean defectors living in South Korea and multiethnic family policies have

something in common.”

As a member of the Foreign Affairs and Unification Committee, Lee has put considerable work on a

bill to provide assistance for lawsuits filed by “comfort women” who were mobilized by the Japanese

colonial government. On November 2 last year when the plenary session was held, Lee stood for the

first time at the podium of the National Assembly to explain the bill to other lawmakers. A photo that

captured the moment is hanging on the wall of her office. “After my first year went so, the goal of

my parliamentary activity became more and more clear. All I have to do is to persuade people one by

one,” she said.

Immigrant Women Should Not Get Used to Receiving

Lee`s schedule that day ended at 7 p.m. When she goes home early, she spends time with her children,

a high school sophomore son and a middle school freshman daughter. For her, family is what provides

her with a place to rest and find support. “During the general elections last year, I was criticized for

the alleged forgery of academic background. One day, I found my son squabbling with people who

attacked me on SNS. So I scolded him severely. On the other hand, however, what my son did for me

reminded me of my husband, who always sided with me,” she said.

Lee met her husband, a sailor, in the Philippines, and they married in 1995. When their son was born

in 1998, she gave up her Philippine nationality and became naturalized as a Korean citizen. While

raising her son, she often asked herself, “Once you were a girl full of dreams who wanted to become

a doctor. What on earth are you doing here?” That is a frequent question faced by women whose

career is interrupted due to child rearing. Eventually she started to work in TV, therefore becoming a

working mom. Her husband, who always stood up for her even when he was ridiculed, passed away

in 2010.

Last week when she went back home, her son asked her, “Mom, did you oppose the veteran`s extra

point system?” The female parliamentarians group to which Lee belongs disapproved of the

reinstatement of the system. She mumbled, “How did he know about it?”

Her house, in which she lives with nine people, including her mother-in-law and bother-in-law`s

family, is always boisterous. She has an extended family, a household rarely found in Korea these

days. She said she is really satisfied with having such a large family. “People feel sorry for me because

they think I live a tough life because I am a married immigrant woman. But I don`t think so. My

mother-in-law often tells me, “I live with and take care of you, not vice versa.”

In the afternoon on June 23 at the Daejeon Migrants Welfare Center, a migrant woman asked Lee,

who was lecturing to married immigrant women, “How should I react to the criticism that we

multicultural families get too much assistance from the government?” Upon her question, the

audience began to stir, “What? Did we get that much?” Lee calmed the crowd and told them

succinctly, “I know there are some people who are in need of assistance. But I think we should not

get used to getting help. The government is now providing financial assistance to multicultural

families because their numbers are not large. However, as the number grows, the government will

quit. Therefore, we have to find ways to stand on our own feet. That is, we must be able to compete

with other Koreans on an equal footing.”

Beginning in 2011, children from multiethnic families have been required to serve in the army. The

Ministry of National Defense sought Lee`s opinion about forming a separate division of children from

multiethnic families only. She answered with a question, “If so, do you mean they have to fight a war

with two different armies?”

[ June 29, 2013 ]



- Art Historian Says ‘Koreans and Japanese are Twin Brothers’

Art Historian Says ‘Koreans and Japanese are Twin Brothers’

Han Seung-dong Staff Reporter The Hankyoreh

“My Exploration of Our Cultural Heritage” Japan Vol. 1 and 2

By You Hong-june, Changbi Publishers, 14,000 won each volume

The million-seller “My Exploration of Our Cultural Heritage” celebrates its 20th anniversary this year

with the release of two new additions on Japan to the series. Including the sales of two volumes on

North Korea (Vol. 4 and 5) and Vol. 7 on Jeju Island, the entire series has sold 3.3 million copies.

Whether such huge success will be replicated for the author`s account of travels outside Korea

remains to be seen.

At the press conference on July 24, Dr. You Hong-june, the author and professor at Myungji

University, expressed both his excitement and a bit of anxiety over his new books, which he had

worked on for about 25 years as an art historian and a scholar of aesthetics. Given the rising tension

in Korea-Japan relations, he is aware that a bestselling writer`s exploration of Japanese culture may

strike nerves on both sides. Indeed, his two new books on Japan may be quite controversial.

The first volume on Japanese cultural heritages recounts his travels to Kyushu where traces remain

of more than 1,000 Korean potters who were abducted by the Japanese during the Hideyoshi invasions

of 1592-1598. These uprooted craftsmen gave birth to the Japanese art of pottery-making.

As implied by the subtitle “From Korea Came the Light,” the book takes the readers to various cultural

sites such as Yoshinogari, the large settlement for migrants from the Korean peninsula, vaguely

named “toraijin,” dating back to the Bronze Age; Hizen Nagoya Castle in built by Toyotomi

Hideyoshi as a base for his invasions of Korea; Kakarashima, believed to be the birthplace of King

Muryeong of the Baekjae Dynasty; the Water Fortress, also known as Mizuki, constructed by Baekjae

migrants after their defeat in the ancient battle of Baekchon River; and the settlements that had been

occupied by Korean potters and their descendents. Thus the author provides a compelling account of

how the histories of the Japanese islands and the Korean peninsula were intricately and indivisibly

intertwined.

Volume 2, with the subtitle “Flowers of Baekje in the Fields of Asuka,” covers Asuka and Nara.

Asuka is where the ancient Japanese history originated with the migration of people from the ancient

Korean kingdoms of Gaya and Baekjae beginning in the fifth century. Nara, home to famous historical

temples such as Todaiji, is where the building of the ancient Japanese state was completed. The strong

traces of the Korean migrants lead a traveler to forget momentarily that he is in a region in Japan and

not somewhere in ancient Korea.

You`s essays touch upon these historical facts without goading or getting carried away with

nationalistic pride. Rather, he is very cautious to avoid such narrow-minded nationalism. With his

breadth of insight and brilliant writing that never fails to entertain, the author freely and openly talks

about Japanese culture and history, Korea-Japan relations and the broader East Asian history. He

offers that rare combination of expert knowledge and fun, which has made him so irreplaceable and

his books so successful. Even those who disagree with the author`s views will find themselves

marveling at the bold and meticulous observations and appreciation of Japanese culture, and perhaps

even contemplating the questions that he raises, which may be quite controversial.

The frame of the more provocative of his ideas is succinctly put in the sentence, “The Japanese distort

history because of their complex about their ancient history. Koreans, on the other hand, denigrate

Japanese culture because of their complex about modern Korean history.”

He advises the Japanese: “Learn to acknowledge what you owe to the Korean peninsula in your

ancient history. Learn to shed the narrow-mindedness that is often exhibited when faced with Korean

contributions that cannot be denied, when in a petty attempt to minimize that which originated from

the peninsula you claim that Korea only served as a passageway for Chinese culture to enter Japan.

Acknowledge the two major distortions of history (the ancient Nihon Shoki, or “The Chronicles of

Japan,” and kokoku shikan, the emperor-centered historiography). Bigotry and bias will foment

another catastrophe. If you wish to assume leadership in the East Asian region, demonstrate virtue

that is required of a leader.”

He also has advice for the Koreans. “See Japan as is based on historical facts. We should take pride

in passing on the light of civilization to Japan, but to think that all of ancient Japanese culture

originated from Korea is a delusion. The culture that was created by the Korean migrants to Japan is,

strictly speaking, Japanese culture and not Korean. If someone were to claim that the culture that has

entered the peninsula from China and was modified and developed here in Korea is really Chinese

culture, would we accept that as true? The culture that was developed by British migrants to North

America is considered American culture not British. It is about time Koreans shake off the victim

mentality and be proud in the true sense of the word.”

The author agrees with Jared Diamond, the author of “Guns, Germs and Steel,” who wrote in an

article: “Koreans and Japanese are joined by blood” and “they are like twin brothers who shared their

formative years.” In the same article Diamond also asserted: “The political future of East Asia

depends in large part on their success in rediscovering those ancient bonds between them.”

You Hong-june`s new books on Japan stand on these important questions and are filled with his

unique combination of expert knowledge and interesting stories discovered during extensive journeys

to sites in Kyushu, Nara and Asuka. Along the way the reader may feel that Japan is in some aspects

Korea`s surviving past as Korea is another past of Japan. Through research, Japanese scholars have

found that an estimated 70 percent of contemporary Japanese have genetic traits matching those of

Koreans. Could we not conclude then that Koreans and Japanese who renounce each other are in

essence denying their own being?

[ July 29, 2013 ]



- Park In-bee “My life as a golfer seems to have just passed springtime to enter into summer.”

Park In-bee: “My life as a golfer seems to have just passed springtime to enter into summer.”

Kim Shin-young Staff Reporter The Chosun Ilbo

“Dear Inbee. Your performance this season is increasingly surpassing what the world is used to see.

Congratulations on your sixth win of the season, and what you have achieved so far this year, as well

as in previous years.”

Park In-bee (Inbee Park) received that congratulatory note on July 1, a day after she had won the 2013

U.S. Women`s Open as her third consecutive major win of the season. It was from legendary golfer

Arnold Palmer, nicknamed “The King.”

When the South Korean`s ball slid into the 18th hole at Sebonack Golf Club in Southampton, New

York, to win her third major this year, she was the first LPGA player to accomplish the feat since

Babe Zaharis of the United States in 1950. Back then, golf had yet to become a popular sport. Now

competition is much fiercer, making such a feat increasingly difficult.

Describing the calm demeanor of the straight-faced golfer who assaulted one golf course after another,

the U.S. media gave her a chilling nickname “Silent Assassin.” Less than two weeks after Park

engraved her name in the LPGA history, she participated in the Manulife Financial LPGA Classic in

Waterloo, Canada, on July 11-14. A banner at the entrance to the Grey Silo Golf Course, displaying

the 25-year-old golfer`s picture, proclaimed, “The World Comes to Waterloo.”

This interview was conducted before the Manulife Classic kicked off. When asked how she felt about

winning three consecutive majors, she said it was like a dream come true, a dream that she had not

even dared to dream. Entering into the interview venue, she smiles shyly, fidgeting with her hands

like a small girl, a far cry from her lethal nickname. She displays quite a personable image, which

contrasts with the charismatic and hard-working one of Pak Seri, who represents the first generation

of South Korean female golfers in the LPGA.

Compared to the uncompromisingly adamant appearance of Pak, the younger Park, in spite of her

intimidating achievement, looks more approachable. Her nails are trimmed neatly short, but her hands

are rustic and tanned, which is typical of professional golfers. Compared to her tanned hands, her face

looks fair. When complimented about her fair complexion, her laughs rose another key. “My face got

also tanned. In fact, I try to put on as much sun cream as possible to protect the facial skin. After all,

I will have to get married some day, you know. I need to take care of myself for that···.”

Her winning streak is opening a new chapter for the history of women golfers. About her golf career,

she says, “My life as a golfer seems to have just passed springtime to enter into summer. I am so

happy these days. I do the work that I really like, and I happen to be good at it, and I make money by

doing it. Isn’t this fantastic?” (laughs)

‘Silent Assassin’: Her Favorite Nickname

Q. How does it feel to be put on a par with Pak Seri and Tiger Woods?

A. Oh, no···I don`t think I have achieved that much. I feel so strange when people compare me with

such top-notch golfers. Well, this season has undoubtedly been a very good one for me, but when I

compare my past seven years as a pro golfer, I am far behind those excellent golfers.

Q. You have many nicknames. Some call you “Buddha Sculpture,” others “Queen Bee” and

more recently the “Silent Assassin.” What is your favorite among these?

A. My favorite is “Silent Assassin.” When it is translated into Korean, it sounds so aggressive but the

original English phrase conveys a nice feel and a charismatic image. I realized that I could look that

undefeatable on the course. Well, that`s the way I interpret it. I try to think positively about things.

As long as we remain optimistic, anything can have a positive side, I think.

Q. It is true that you are very expressionless on the field.

A. That`s what my parents always point out. They suggest that I demonstrate some nice gestures and

smiles. When I see video recordings of myself playing, I do look quite poker-faced. I sometimes think

“I should have smiled at that very moment” or “I could have looked prettier only if I smiled then.”

Q. Why don`t you do much ceremonial gestures during the competition?

A. I don`t feel comfortable in exaggerating feelings and gestures. If they come spontaneously, then

there`s no problem though. Outside golf courses, I am also very calm and stable, and I think this state

of mind continues on the course as well. When golfing, you are lucky to score a birdie at one hole,

but for the right next one, you may score a bogey. If you react to each birdie and bogey, the mood

fluctuates and it doesn`t help for good play at all.

Q. You also seem to prefer plain golf clothes.

A. Some ask me why I opt to wear white trousers so often. There`s no particular reason for that – I

just find them convenient. Since the game is carried out under the sun, it is pretty warm and I tend to

wear light-hued shirts, which go well with long white trousers. With long trousers, I do not have to

put on sun cream on the legs. I used to wear earrings, but after some hard time, I couldn`t afford to

think about anything else but golf itself. One day I just found out that my earring holes were blocked

already.

Protracted Slump: ‘Selling food on the street seemed to be a better job than golfing.’

The “hard time” Park refers to means the four-year-long slump that shortly followed her astounding

first win at the prestigious U.S. Women`s Open in July 2008, as a 19-year-old rookie. It replaced the

record set by Pak Seri as the youngest champion of the game, a truly amazing start of a career. When

asked how she felt, Park said she was bewildered by the sudden ascent. Nobody back then expected

that such a long difficult slump would be just around the corner for her. For the next four years, she

never won a single competition, while her Korean cohorts such as Shin Jiyai and Choi Na-yeon were

making fast ascents in LPGA championships. Park`s mother recalls that “In-bee used to say she would

quit (golf) every single day during her slump.”

Q. How fortunate that you stopped short of actually quitting golf.

A. I made every possible effort and tried harder and harder to work it out, but they wouldn`t do at all.

I felt miserable because of repeated failures and mistakes, miserable because of golf. I said to my

mother that I would rather sell food on the street than playing golf just to feel better about myself.

When I stood on the tee box, enormous fear overwhelmed me so that I could not even try to swing.

Q. Despite such a severe slump, what kept you from quitting golf?

A. This may sound weird but I think I became accustomed to the state of phobia, which gradually

became a perpetual feeling inside me, and then, the fear kind of ebbed away little by little. Perhaps I

developed some resistance to such fear. At first, whenever the ball went off the path I intended, I felt

as if I would just die. However, after so many failures and experience of severe fear, I kind of got

used to them. For a long time, I could not calmly accept that some balls would fall into the woods.

But after so many of those experiences, I gradually could handle the situation in a better way. I was

greatly helped by Dr. Cho Soo-kyung as well (a Korean sports psychology specialist, who also

provides counseling to other world-famous Korean athletes such as Olympic swimming medalist Park

Tae-hwan and Son Yeon-jae, the nation`s top rhythmic gymnast).

Q. What do you remember as the most helpful advice from Dr. Cho?

A. One of the reasons that I kept trying to escape the slump was the thought that if I quit golf, people

would dislike me and look down on me. That was the lingering thought in me, which kept returning

to me. I thought I would end up being a failure, and people would not love me anymore. I was deeply

suffering from self-criticism and fear, which even caused insomnia. Dr. Cho told me, “Why do you

associate your whole life with golf? Whether you prove yourself a good player or not, people who

love you now will continue to love you anyway.” If she had not told me this, I would have continued

to live in fear.

As the slump prolonged, Park In-bee left the U.S. LPGA for Japan to play at the JLPGA in 2010. Her

mother had to spend an agonizing time as well, seeing her daughter suffer self-inferiority complex

and self-criticism, in comparison to the stellar rises of her Korean peers competing in the United

States. She recalls that the language barriers and the fact that her daughter was less known to the

Japanese public helped the struggling athlete to restore inner serenity and peace gradually. Park

describes her stay in Japan as a time to re-learn her “winning habit.”

Q. For a while you did not have any corporate sponsorship. It could have been quite hard for

an athlete to bear.

A. My hardships were not due to a lack of sponsorship deals but due to my depressing performance.

While your golf record is poor, what is the use of having sponsorships? You would only feel sorry for

them. In fact I did not lack financial means to participate in tours. Those who got more worried about

the lack of sponsorship were people around me, rather than myself. (Park`s father has his own

medium-size enterprise in Korea, and he has been supporting his daughter`s golf education abroad

since she was 12.)

Q. With respect to your affluent family background, would you feel offended if people say you

lack the persevering athletic spirit or a clear purpose that could drive you hard to fight against

all the odds?

A. I was born in a good, supportive family, and I do not deny this. As far as I remain grateful for what

I could afford to continue to play golf, the stable environment should benefit my athletic career. Of

course, if you tend to easily give up on things without making serious efforts, such psychological

dependency on the family would not be helpful to make you a good player.

‘My swing style? I don’t see anything special about it.’

Park credits her swing coach and fiancé Nam Ki-hyeop as the person who helped her out of the long

slump. Nam was playing in the KPGA and they met in an off-season training in the United States.

They met yet again at an LPGA tour event in Gyeongju in 2007, and they got engaged in 2011. Nam

helped Park reshape her swing style, which later developed into the famous “Park In-bee Swing,”

characterized by slow backswing and late setting of the wrists, which allow the club to stand up high

at the top. As her eyes persistently follow the ball from the very moment of impact, she also appears

to be almost “heading up,” which is typically told to be avoided in standard guidelines. Many amateur

golfers nicknamed her swing style as a “laid-back swing,” “pheasant-hunting hawk swing” or rather

simply the “Park In-bee swing.”

Q. Many people say your swing style is quite peculiar.

A. I don`t think so. My fiancé also wonders why people find it so different from what they usually

see. It is probably because my wrists are not very flexible. Even though the arm and shoulder positions

remain in the usual swing area, my wrist setting is different from others. Hence my swing may look

narrower in width than others. I do not care much about what they say about my swing style. I know

what`s best for me and I am the specialist for my golf style.

Q. Some weekend golfers who have adhered to textbook swings which forbid looking up confess

their confusion about your unique swing style.

A. Well, possibly···. In the past, professional golfers also tended to look at where their ball was to the

end. The most flexible people can swing like that. For the majority of golfers, it is too much a twist

of the torso and so it often looks quite unnatural. These days, some people try to keep their head

down, resembling the old style.

Park In-bee denies the popular belief that the best golf positions cannot avoid some unnatural bodily

movements. She puts emphasis on the “natural” aspect of golf movements, under the precondition

that “the golfer should be confident enough to maintain his or her own swing style.”

Nam prefers to stay away from media spotlight. On the same day as this interview, he would just

stand outside, watching his fiancée having another interview with a U.S. golf channel. He would stay

there for a while and leave quietly.

Q. Ideally, we wish Mr. Nam could give us an explanation about your swing style.

A. Well, he does not want to be exposed to media attention. He says he wants to live a quiet life.

(laughs)

Park’s Friends: ‘In-bee, you should practice more.’

Many people marvel at Park`s splendid putting records. This season, Park`s average putts per round

is ranked the second among LPGA pros at 28.43, with 1.702 average putts per green in regulation.

Many wonder why she is so good at putting, about which Park herself is also curious. Some golf

commentators even attribute her putting skills to her childhood piano lessons. Indeed there is no

convincingly scientific analysis for her excellent putting records. At best the secret of her putting

techniques is found in nothing more than “her feel” for the golf course.

Q. When you hear people saying that you make excellent putts due to your good feel, what do

you think? In a way it sounds like you are merely lucky to do so without making any particular

efforts or undergoing specific training for that.

A. Well, actually I don`t know how I could explain it otherwise. I don`t seem to visualize the pathway

to the hole, nor do I measure the precise distance to the hole with footsteps. Perhaps a good “sense”

or a good “feel” could be the most probable explanation to some of the best putts I made this season.

If this “sense” or “feel” is something genetic, then should I be grateful to my parents for giving me

excellent putting genes? (laughs)

Q. Do you agree to the theory that your piano lessons helped develop your putting skills?

A. I can still play Beethoven`s “Für Elise” and a few other pieces but these piano lessons were a long

time ago. Perhaps very remotely, learning to play the piano could have helped me develop good

physical sense and rhythmic movements at the initial phase of learning golf.

Q. Do you also have a putting machine at home? It`s a must-have for amateur weekend golfers.

A. During the season I can always practice on the field, and therefore, I don`t have to carry them

during the tour. In my Korean home I do have one. When I need more putting practice in the winter,

I also use the machine.

Q. Do you practice hard on your swings?

A. I don`t tend to practice too much. I enjoy practicing on the green. Other than on the field, I practice

only as much as I would like to. My colleagues say I do not practice enough, and they ask me why.

Our daily routine is quite similar to that of any other employees: we are on the golf course on a daily

basis from around 9 a.m. to 5 p.m. After field rounds, most pros have a practice session for about one

hour. I just do an half an hour off-course practice. In the morning, friends of mine usually practice for

one hour and a half, (but) I think one hour is enough for me.

Q. Do you intentionally shorten your practice hours? It compares with Pak Seri, who once

mentioned that she had practiced very hard, almost suffering in tears at times.

A. I think every athlete has a different choice of practice schedules. I just want to concentrate on the

smaller number of putts and swings that I do, and I want to make every one of them highly focused

and meaningfully done. Of course when I was struggling and my records were not improving, I

sometimes doubted if I needed more practice hours and harder efforts. What I realized after different

experiments is that I could not improve my performance by extending or reducing the hours of

practice. I don`t think the amount of practice hours is necessarily in direct correlation with

performance levels.

Currently, the world`s golf fans are eager to see whether Park can become the second golfer ever to

achieve a “Grand Slam” of four major wins in a calendar year. Legendary U.S. golfer Bobby Jones

did it in 1930. Park will get her chance for a calendar Grand Slam at the British Open in August. “I

feel honored for this chance to try to bid for a calendar Grand Slam,” said Park, keeping calm.

[Editor`s Note: She failed to win the Women`s British Open, held on August 1-4 at St. Andrews,

Scotland, but looks forward to another chance at the Evian Championship in France, the LPGA`s fifth

major, scheduled for September 12-15, where she will play as the defending champion.]

‘My breakfast on the competition day has to be Korean food.’

Q. Are your parents coming with you to the British Open in August? (Her father Park Geon-

gyu and mother Kim Seong-ja did not accompany her in Waterloo as they briefly returned to

Korea for business purposes.)

A. They confirmed their attendance only last week. It seems to be too late to book a hotel room. Given

the size and importance of the tournament, the rooms are already sold out. They are so determined to

come to see me anyway, and my mother says she would not mind sleeping on the sofa. (laughs) More

than anything else, she would make sure to come and stay with me to take care of my meals.

Q. What is your usual diet on the day of competition?

A. I really don`t like to eat Western food for breakfast. It`s so tasteless. Particularly on the day of

important games, I try to eat Korean food in the morning. When my mother is with me, she prepares

mild soup, and light side dishes with steamed rice. When she is away, I can`t afford to cook in the

busy morning. Instead, I heat up some Korean food takeaways bought the previous night. If neither

of these is the case, I just eat instant rice, mixed with sesame oil and soy sauce, wrapped in dried

laver.

Q. When you return to Korea for a short stay in late July, what do you want to do?

A. Usually my favorite thing to do is just to stay immobile. Since I am always in the flying mode, 10

months a year, I really wish to settle down in one place. When I am home in Korea, I hardly go outside

home. Since Korea has such a wonderful food delivery system, I telephone-order fried chickens and

jajangmeon (black-bean-sauce noodles), get very lazy, and watch TV with my family and my pet dog

Sammy.

Park In-bee decided to start golf when she watched Pak Seri win the 1998 U.S. Women`s Open after

she had waded into the water to hit her ball off a steep rough. The dog was a gift from Park`s

grandfather, who suggested that she try golf. In 2003, when Park entered her third year of golf

practice, her grandfather promised her to buy her a puppy if she becomes one of the top 10 players in

a local competition. She won and got Sammy.

Q. When you are not playing golf, what do you do?

A. I love skiing but I think I should stop it from this year on. When I became a pro, my parents tried

to keep me from skiing but I have managed to keep the hobby secretly. But this year I feel more

responsible, and I think I should refrain from skiing···. I also like watching Korean dramas. Lately I

watched “Gu Family Book” and it was very nicely made. Among Korean TV stars, my favorite is Zo

In-sung.

Q. Sometimes do you think about going on a diet?

A. Sometimes I try to manage my diet. I also consider losing some weight when I want to build

muscles during winter training. Some weight loss is good for looks as well. However, it is

fundamentally impossible for me to lose 20 kilos or 30 kilos. I like eating and I believe one should

eat if there`s something he or she wants to eat. There are certain sport disciplines where weight control

is an absolute must – like gymnastics. I would never do that. I am happy as I am.

Q. Aren`t you afraid when you imagine experiencing perhaps another slump in the future?

A. I know what it is like and I have handled it before. This is quite comforting. Having known and

overcome it at the early stage of career certainly helps me to get rid of the fear about a future slump.

Even if it happens again, I know I can manage it in a more effective way.

[ July 13, 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 979-11-5604-030-9

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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