[Editorial] Diesel price hike

International crude prices have reached nearly $50 a barrel, gaining about 100 percent in about four months. Though the prices may shift downward again amid the supply glut, few will deny that oil prices hit bottom in the first quarter.The simultaneous rebound in gasoline and diesel prices is not good news for ordinary car drivers in Korea.Amid concerns over higher fuel costs, the Environment Ministry is also pushing for hikes in the retail diesel price as part of its efforts to improve the envi

May 27, 2016

[Editorial] Alarming debt growth

South Korea’s rapidly climbing household debt is a key factor hampering the nation’s growth potential.Its significance is evident when we compare the growth of the nation’s gross domestic product and collective household debt in the first quarter. While GDP inched up 2.7 percent on-year during the first three months, the nation’s household debt surged 11.4 percent on-year, or 125.5 trillion won ($106 billion), to reach 1.223 quadrillion won.Korea’s household debt is fast approaching its annual G

May 27, 2016

[Editorial] A rudderless party

Since its humiliating defeat in the April 13 general election, the ruling Saenuri Party has been drifting rudderless. Torn apart by factional strife, the party has not even been able to fill its leadership vacuum, much less make concerted efforts toward reform. Yet it appears to have created momentum for normalizing its operation.The burden to save the party from sliding further into crisis rests solely on the shoulders of Chung Jin-suk, who was elected as the party’s new floor leader early this

May 26, 2016

[Editorial] Unwholesome tradition

Allegations of misconduct are mounting against Hong Man-pyo, a prosecutor-turned-lawyer suspected of having peddled his influence for a CEO of a cosmetics company convicted of illegal gambling.As a prosecutor, Hong was highly competent. He made a name for himself with investigations into high-profile corruption cases involving heavyweight politicians and big corporations. He became a lawyer in 2011 and soon emerged as one of the highest-earning lawyers. In 2013, he earned 9.1 billion won ($7.7 m

May 26, 2016

[Editorial] New groupings

It is not unusual that talks of -- or actual moves to achieve -- political realignment flourish ahead of a presidential election. Yet, this time they come much earlier than in the past. Now speculations are rife about regroupings of political parties and major politicians for the next presidential election slated for December next year. But there is no outstanding possible scenario since there are so many uncertainties and factors.   For instance, there is no strong potential candidate in the co

May 25, 2016

[Editorial] Park in Africa

President Park Geun-hye’s current tour of three African countries -- Ethiopia, Uganda and Kenya -- should be successful in several respects. Most of all, South Korea and Africa had never had greater mutual need to develop close economic relationship than now. The African continent is emerging as a new growth engine for the global economy while the South Korean economy, after decades of stellar growth, is sputtering and needs a boost. In fact, major African countries have been pulling off high ec

May 25, 2016

[Editorial] ATM charges

The issue of bank service charges has come to the fore again as major commercial banks are set to raise the fees on a variety of transactions. The banking sector had slashed them amid public criticism over the charges.Participants in the fee hikes include KB Kookmin, KEB Hana and Shinhan, three of the four biggest first-tier banks in the nation.KB Kookmin is taking the initiative as it plans to raise most service fees next month. They include fees on cash withdrawals and transfers on automated t

May 24, 2016

[Editorial] Talks are premature

North Korea has proposed an inter-Korean dialogue again as a hackneyed rhetorical tactic, and the South’s Defense Ministry has responded in a resolute manner that it would firmly keep the position that the prerequisite for any peace talks is the North’s denuclearization.As the two Koreas have repeated their routine between tensions and talks, there is nothing noteworthy in the recent talks offer and the response. Though Seoul has rejected the proposal, it has not completely disregarded the messa

May 24, 2016

[Editorial] Parliamentary hearings

Relations are cooling rapidly between the presidential office and opposition parties following the passage last week of a bill enabling parliamentary committees to open hearings more frequently.The bill allows a committee to hold hearings on any matter under its jurisdiction if a majority of its members agree to do so. Up until now, a committee has only been able to resolve to hold hearings on “important” matters.The revision effectively enables the two opposition parties -- The Minjoo Party of

May 23, 2016

[Editorial] Jeju peace forum

Jejudo Island is best known as a resort island with many sites of scenic beauty and cultural importance. It attracts more than 10 million tourists from home and abroad every year.Yet the island has another aspect that is less well known to the public. Since the early 1990s, it has hosted many historic summits between Korean presidents and foreign leaders that have contributed to promoting peace on the Korean Peninsula and in Northeast Asia.Located at the center of the three key players of the re

May 23, 2016

[Editorial] Timely boost

One country after another is taking action to add pressure on North Korea which is under the toughest-yet international sanctions over its latest nuclear and missile provocations. Last week alone saw new actions taken by the European Union, Russia and Switzerland. They provide a timely boost to the international efforts to punish the rogue state, which -- through its Workers’ Party Congress earlier this month -- demonstrated its defiance against the U.N.-led sanctions.     The latest action came

May 22, 2016

[Editorial] Greedy pigs

It is not rare for Korean tycoons -- especially those from family-run chaebol –- to be punished for their wrongdoings, ranging widely from embezzlement, operation of slush funds and tax evasion to bribery, offering illegal political funds and insider trading. Of these, the last one -- illegal stock trading utilizing insider information -- has come to the fore again recently in the wake of two prominent cases, which, once again, showed how greedy and shameless some of the wealthy in this country

May 22, 2016

[Editorial] U.S. interest rate

Korea’s financial market is facing another challenge from an unfavorable external factor. Reversing earlier skepticism about a base rate hike in the U.S., an increasing number of market participants are sharing the view that the Federal Reserve has become hawkish.　More people are betting on a hike next month after the Fed’s rate-setters’ minutes of the last gathering -- unveiled Thursday -- hinted at their hawkish stance for the next meeting June 14-15.　Given the record-high household debt in Ko

May 20, 2016

[Editorial] USFK relocation

The Yongsan-based U.S. Eighth Army Command has started its move down to Pyeongtaek, Gyeonggi Province. Most of the U.S. troops will be moved by 2017, according to the Defense Ministry of South Korea.　While the U.S. troops have been located in Yongsan since the 1950-53 Korean War ended in an armistice, the remaining issue is the alleged contamination of surrounding areas near the Yongsan Garrison, the U.S. military base in central Seoul.　Seoul City estimates that 1,870 tons of polluted water have

May 20, 2016

[Editorial] Whither Saenuri?

The escalating factional rift is plunging the ruling Saenuri Party into a deeper quagmire, prompting speculation that the warring factions may not stay together under one roof.   The latest development surrounds the cancellation Tuesday of the national committee -- believed to have been orchestrated by the loyalists of President Park Geun-hye -- which otherwise would have endorsed the launch of an “emergency” leadership panel and a reform panel. The pro-Park members effectively boycotted the nat

May 19, 2016

[Editorial] Literary excellence

Whether a literary work -- or any other art or cultural product -- receives an award should not be the only yardstick for assessing its value. However, the significance of the Man Booker International Prize given to writer Han Kang for “The Vegetarian” is worth noting.  Han is the first Korean writer to win one of the world’s three most prestigious literature awards, which include the Nobel and Goncourt prizes. The novel written by 45-year-old Han beat works by Nobel laureate Orhan Pamuk and oth

May 19, 2016

[Editorial] Paris vs. IS

The head of the European Union police agency has raised the possibility that the jihadist Islamic State group could conduct attacks on the Euro 2016 soccer tournament in France this summer. He said the tournament was an “attractive target” for terrorists.The Europol warning reminds Europeans of the tragedy in Paris last November during a friendly soccer match between France and Germany.Starting from the opening match between France and Romania on June 10, the Euro 2016 finals will run through Ju

May 18, 2016

[Editorial] Pension fund

The National Pension Service has announced it will diversify its investment portfolio by actively targeting overseas markets over the next five years, as part of its efforts to raise fund management profitability.Under its plan for the period 2017-21, the proportion of the state pension fund’s investments that are made in global stocks will rise to around 25 percent in 2021 from 13.7 percent in 2015. The overseas bond portfolio will also increase to 5 percent from 4.3 percent over the period.The

May 18, 2016

[Editorial] Breathing dust

A recent environmental survey released by Yale University and Columbia University shocked us by showing that Korea is one of the most polluted countries in the world.The 2016 Environmental Performance Index places Korea near the bottom of the world in terms of air quality -- 173rd out of the 180 countries surveyed. Korea scored 45.51 out of 100.The index evaluates how countries of the world protect ecosystems and human health from environmental harm based on 20 indicators, including air quality,

May 17, 2016

[Editorial] Fate of HMM

This week is a make-or-break time for Hyundai Merchant Marine, Korea’s second-largest shipper. To stay afloat, the troubled company has to successfully complete its negotiations with foreign ship owners on cutting charter fees.　Last month, creditors agreed to restructure HMM’s debt on condition that the struggling shipper persuaded its ship owners to reduce charter fees by up to 30 percent. The deadline for the negotiations is Friday.  HMM operates a total of 116 vessels, of which 83 have been l

May 17, 2016