[Editorial] Challenges for Park

The current tension created by North Korea’s nuclear test and long-range missile launch and the South Korean government’s decision to pull out of the Gaeseong industrial park shows how volatile and unpredictable the situation on the peninsula is. 　Some even say that the effective closure of the Gaeseong complex, the 12-year-old symbol of inter-Korean economic cooperation and reconciliation, has taken relations between South and North Korea back to the Cold War era. 　Indeed, the current situation

Feb. 15, 2016

[Editorial] Election populism

With the April 13 general election drawing closer, major parties are rolling out election pledges, which -- not surprisingly -- are focused on the expansion of welfare programs and pork-barrel projects.　The parties’ rush to announce new welfare benefits show that politicians have not learnt their lesson. Think about the child care crisis that has been gripping the nation for months due to the partisan, ideological standoffs involving political parties, central and local governments and education

Feb. 15, 2016

[Editorial] Citizens’ question

The possibility of additional provocations by North Korea appears rising in the wake of the South’s closing of the Gaeseong industrial park, as the Saenuri Party cited in a report from the National Intelligence Service.　The NIS reportedly predicted that Pyongyang would conduct partial military attacks in inter-Korean border districts or other South territories. It also reportedly notified the ruling party of the North’s feasible cyberterrorism activities or assassination of a high-profiled North

Feb. 14, 2016

[Editorial] Rate cut is gamble

More and more securities firms are raising the possibility that the Bank of Korea’s Monetary Policy Committee will lower the benchmark interest rate in March after signaling a cut in its upcoming gathering this week. A minority even predicts a monetary easing — from the current 1.5 percent to 1.25 percent per annum — on Feb. 16.　Those forecasting the BOK’s cut highlight the negative factors such as Japan’s below-zero rate policy and China’s noteworthy slowdown. They domestically cite the weaker-

Feb. 14, 2016

[Editorial] Blind opposition

One of the key mandates and missions of the opposition is to watch over the government in power, criticize it and offer alternatives if it does something wrong. 　But the Korean opposition often sticks to opposition for the sake of opposition without offering options. The opposition is holding on to such a habit even in a time of a grave security crisis. 　The main opposition The Minjoo Party of Korea said it is opposed to the government’s decision to pull South Korean businesses out of the Gaeseo

Feb. 12, 2016

[Editorial] Different this time

China becomes a focus of international attention whenever North Korea escalates tensions by nuclear tests or long-range missile launches.　It is because the international community looks to China, the sole socialist ally and economic patron of North Korea, for reining in the world’s most notorious rogue state.　But one knows what China has done in the past 10 years -- since North Korea’s first nuclear test in 2006. It failed to -- or did not -- pressure or persuade the leaders in Pyongyang to aban

Feb. 12, 2016

[Editorial] Peninsular tensions rise

There is no time to cry over spilled milk. The Park administration has taken retaliatory action against North Korea’s long-range missile provocation following a nuclear test. It chose to close down the Gaeseong industrial complex.　The government announcement Wednesday was a surprise to the South Korean public, whose opinion is divided as to whether it is an effective countermeasure or a needless action adding to inter-Korean tensions.　Initially, the primary issue should be the security of the So

Feb. 11, 2016

[Editorial] Short-selling divide

South Korea’s small investors are expressing their anger at some securities firms for reportedly cooperating with corporate investors over their short-selling practices.　A recent move to transfer their stocks to the accounts of other securities firms is gaining support from more and more individuals. The brokerage houses, which have faced retaliatory moves by individuals, included Kiwoom Securities, Mirae Asset Securities and NH Investment & Securities.　Data showed that the three firms accounted

Feb. 11, 2016

[Editorial] 'One-shot' law

After many twists and turns, the Corporate Vitality Enhancement Act has been finally enacted. The legislation is aimed at revitalizing Korea’s major industries, such as shipbuilding and steelmaking, which have been suffering from oversupply. 　The so-called “one-shot” law is designed to help companies engaged in ailing sectors eliminate excess capacity and improve productivity. Firms will be given regulatory relief and tax breaks, if their restructuring plans win approval from an evaluation commi

Feb. 10, 2016

[Editorial] Sanctions with teeth

Ignoring repeated warnings from the global community, North Korea has launched a long-range rocket. Pyongyang claimed the launch was part of its scientific space program, but it was a thinly disguised ballistic missile test.　In any case, the rocket launch Sunday, which came a month after a nuclear bomb test on Jan. 6, was a flagrant violation of the multiple U.N. Security Council resolutions banning the rogue state from using ballistic missile technology.　Now, the international community should

Feb. 10, 2016

[Editorial] Vacation risks

Lunar New Year vacation will be from Saturday to Wednesday for most Korean citizens, a large portion of whom will meet with family and relatives.　Some Koreans will make trips abroad while there is also an expected influx of inbound tourists to Korea, in particular from China. 　Economic policymakers are pinning high hopes on a rapid rebound in sales in some industries, such as tourism, air carriers, cosmetics, hotels and other consumer segments. 　Despite the potential positive impact on the econo

Feb. 5, 2016

[Editorial] TPP pressure

Some trade-related agencies and businesses in South Korea seem to be ill at ease over the nation’s absence from talks for the Obama administration-initiated Trans-Pacific Partnership, a kind of regional economic bloc.　Concerns are being raised after 12 potential members — including Japan, Vietnam, Australia and the U.S. — on Thursday signed a deal to launch the TPP. 　Officials from some local agencies cited research predicting that Korea will see its exports and gross domestic product decline 1

Feb. 5, 2016

[Editorial] North Korea ups the ante

North Korea has demonstrated its determination to up the ante in its confrontation with the United States and the world community by deciding to push ahead with a long-range missile test later this month.　The North has notified international maritime and telecommunications agencies of its plan to launch an “earth observation satellite” between Feb. 8 and 25 pursuant to its space development program. 　Yet the satellite launch is widely seen as a cover for another long-range missile test, as it in

Feb. 4, 2016

[Editorial] Performance culture

As part of its labor reform campaign, the government is set to launch a drive aimed at transforming the wage systems of domestic financial institutions. As a first step, the Financial Services Commission is pushing to introduce performance-based pay to the nine state-invested financial institutions, including Korea Development Bank and the Industrial Bank of Korea. 　Currently, the nine institutions only apply a performance-linked pay system to their executives. For other employees, they use step

Feb. 4, 2016

[Editorial] Enemy within

On Tuesday, Rep. Ahn Cheol-soo and his supporters officially launched the People’s Party, a breakaway group from The Minjoo Party of Korea, the main opposition party. 　The party put forward many nice words -- like political reform, politics for the people and a healthy and strong third party. But one undeniable fact is that the party is the consequence of a severe factional strife between two rival factions in the predecessor of the Minjoo Party -- one which was close to the late President Roh M

Feb. 3, 2016

[Editorial] Caviar bill

It is not rare for our public officials and executives of commercial firms to use their corporate cards for wrong purposes. Yet the case of the former CEO of Arirang TV-Radio channel leaves us speechless. 　Bang Suk-ho stepped down as CEO of the nation’s sole English-language channel after a series of allegations that he misappropriated company funds during overseas trips. 　Bang visited New York in September last year, leading a team of Arirang staff who were assigned to broadcast President Park

Feb. 3, 2016

[Editorial] Shady conglomerate

A revelation from the Fair Trade Commission on Lotte Group is embarrassing the public again, following last year’s feud between the group founder’s two sons over taking the reins of the conglomerate.　A noteworthy point was that founder Shin Kyuk-ho and his friendly powers — including families and relatives — have effectively controlled the conglomerate with only a 2.4 percent stake for decades.　It was possible because of multiple layers of cross-shareholding, entangled with each other, according

Feb. 2, 2016

[Editorial] Upgrade legal services

South Korea is destined to open up its legal services market as mandated by the free trade agreements with the European Union and U.S. -- which took effect in July 2011 and March 2012, respectively -- within five years of their implementation.　Last month, the issue came to the fore again as a group of local lawyers raised the worn-out sovereignty matter. They denounced U.S. ambassador Mark Lippert and some others for calling on Korea to ease some conditional barriers in its scheduled opening pro

Feb. 2, 2016

[Editorial] Same kind of politics

First thing that Kim Jong-in did after he became the interim leader of the main opposition party Thursday was to breach a bipartisan agreement. 　The Minjoo Party of Korea agreed with the ruling Saenuri Party on Jan. 23 to pass two bills, one on revitalizing the economy and the other on North Korean human rights. But Kim decided to break the deal.　It was disappointing, given that he had sharply pointed out the deep-rooted problems of the main opposition party after taking over the party’s leaders

Feb. 1, 2016

[Editorial] Regulatory barriers

Under the vision of making Korea a “creative economy,” the government has been striving to foster new businesses based on creative ideas and emerging technologies. Yet the government’s efforts are seriously hampered by Korea’s regulatory backwardness.　The Korean Chamber of Commerce and Industry recently released a report showing how outdated regulations or the absence of proper regulations are stifling efforts to start a business using such new technologies as the Internet of Things, 3-D printin

Feb. 1, 2016