[Editorial] A new growth engine

Until the mid-1990s, major Korean conglomerates had pursued an aggressive diversification strategy, often muscling into fields that were not related to their core businesses. These days, they seldom make the headlines with large-scale investments aimed at foraying into new business areas. 　This is partly because Korean conglomerates have become more cautious after a debt meltdown during the 1997-98 financial crisis. Another reason may be there are not many new business areas left they have not y

Dec. 24, 2015

[Editorial] Third way?

Will Ahn Cheol-soo be able to find a third way for his envisaged party? The ultimate answer to this question will determine not only his fate as a politician with presidential ambitions but also whether Korean politics can overcome the bipolarization caused by the domination of a conservative party largely based in the southeast and a liberal party relying on support from the southwestern provinces. 　Ahn, who broke away from the main opposition New Politics Alliance for Democracy early this mont

Dec. 23, 2015

[Editorial] No longer special

Special economic zones -- whatever they are called -- are supposed to offer incentives unmatched by other areas, thus inducing enterprises -- especially foreign ones -- to make investments there. 　There are about 200 such zones in Korea, under various names like free economic zones, free trade areas, foreign investment zones, corporate cities, innovation cities and R&D special zones. Sadly, none of them perform the roles they were entrusted to do, having only become a byword for inefficiency and

Dec. 23, 2015

[Editorial] Cabinet reshuffle

President Park Geun-hye completed a Cabinet reshuffle to brace for the coming April general election by replacing five more high-level posts including two deputy prime ministers, following her appointment of two new ministers in October.　The shake-up will pave the way for some of the outgoing ministers to run for the nation’s 20th National Assembly election as long as they step down from their posts before Jan. 14. The nominees will also have to undergo parliamentary confirmation hearings.　Needl

Dec. 22, 2015

[Editorial] Remedy for ailing firms

Last week’s rate hike in the U.S. is set to aggravate the interest burdens of Korea’s debt-saddled companies, including some struggling business units in the conglomerate sector. The ailing industrial segments include steelmaking and shipbuilding.　Though a ruling party lawmaker in July proposed a bill to reinvigorate business activities by offering a certain grace period and supporting their voluntary restructuring, it is still pending at the Trade, Industry and Energy Committee of the National

Dec. 22, 2015

[Editorial] For-profit hospitals

The government has approved the establishment of Korea’s first foreign-owned for-profit hospital. The green light, given to a Chinese investor, is expected to encourage more foreign investment in hospital construction in Korea. Foreign-owned hospitals will create many high-powered jobs, but policymakers should ensure that they do not destabilize Korea’s health insurance system.　The first foreign-owned hospital will be set up on Jejudo Island by Greenland Group of China, a state-owned Fortune Glo

Dec. 21, 2015

[Editorial] Timely upgrade

Global rating agency Moody’s upgrading of Korea’s sovereign credit rating last weekend could not have come at a better time for the nation.　Moody’s on Saturday raised Korea’s sovereign rating by one notch from “Aa3” to “Aa2,” the highest-ever rate Korea has received from an international rating agency.　“Aa2” is the third-highest class in Moody’s rating system. Among the G20 countries, only seven other countries, including the United States, Germany and Canada, have been given “Aa2” or higher rat

Dec. 21, 2015

[Editorial] Mutual trust

Mutual trust and confidence are essential for maintaining a robust military alliance like that of South Korea and the United States. The controversy over the U.S. military’s use of some biological warfare lab samples is extremely regrettable in this regard.　The key problem is that the U.S. side apparently lied about such a sensitive issue of bringing in biological samples into the country. It is truly disappointing that U.S. officials hid the fact that its military had been bringing in anthrax s

Dec. 20, 2015

[Editorial] Four years on

North Korean leader Kim Jong-un visited a mausoleum in Pyongyang on Thursday to pay respects to his father, who died four years ago. The abrupt death of Kim Jong-il on Dec. 17, 2011, put the young heir-apparent on the throne in the second dynastic succession of power in the country.　Over his four years in power, the junior Kim has ruled the communist country in a way little different from his father and grandfather, North Korea’s founder Kim Il-sung, as he relied on the legacy of the Kim dynasty

Dec. 20, 2015

[Editorial] Playing the villain

National Assembly Speaker Chung Ui-hwa has been under strong pressure from President Park Geun-hye and the ruling Saenuri Party to play the villain in enacting a set of reform bills. But Chung, a fifth-term lawmaker, is not a pushover. 　On Wednesday, Saenuri lawmakers held a general meeting to adopt a resolution calling on the speaker to directly refer the bills to a plenary session for voting, as the relevant standing committees could not be convened for deliberations due to the split of the ma

Dec. 18, 2015

[Editorial] U.S. rate hike

Investors as well as policymakers around the world are on alert as the U.S. Federal Reserve has finally raised its benchmark interest rate for the first time in nearly a decade.　The U.S. central bank hiked Wednesday the federal funds rate by a quarter of a percentage point to between 0.25 percent and 0.50 percent, putting an end to the era of zero interest rates.　The Fed’s move did not cause turmoil in global financial and commodities markets. In fact, stock markets in Korea and other major coun

Dec. 18, 2015

[Editorial] Alleged cover-up

Deputy Prime Minister for Economy Choi Kyung-hwan has been embroiled in allegations that he exerted influence to get his former intern a job at a state-run corporation. 　The case had already been probed by the Board of Audit and Inspection and the prosecution has taken over the case. And this week, more allegations came out through a newspaper report, this time about cover-up attempts. 　Judging from the report, which quoted the transcript of a conversation between officials of the Small and Medi

Dec. 17, 2015

[Editorial] Wrong dispute

The dispute over hoisting a giant national flag at Gwanghwamun Plaza, which pits the Ministry of Patriots and Veterans against the Seoul Metropolitan Government, goes beyond a policy conflict between the central government and a local government. 　There has been a lot of talk and assertions from both sides, but put simply, the issue at stake is that the ministry wants to hoist a large national flag in the center of the nation’s capital and that the city government opposes the plan. 　The ministry

Dec. 17, 2015

[Editorial] Beating around bush

President Park Geun-hye has been repeatedly urging the National Assembly, particularly the New Politics Alliance for Democracy, to pass pending bills to vitalize the economy and reform the labor market as soon as possible.　The delay in passage of these bills is not due to strong criticism by the NPAD. It is seemingly because they are not the primary concern of the main opposition’s key leaders at the present stage.　If the NPAD assesses the bills as a factor frustrating its supporters, the public

Dec. 16, 2015

[Editorial] Jejudo and Sydney

Land and apartment prices on Jejudo Island have shot up in the wake of active Chinese investments in the nation’s smallest province over the past few years.　The island, with an area of about 1,850 square kilometers, is similar in size to Hongcheon-gun — one of the 11 major districts in Gangwon Province. It is less than 10 percent of the size North Gyeongsang Province.　As a result, it is natural to see a spike in property prices in the wake of aggressive purchases by investors from China, along w

Dec. 16, 2015

[Editorial] Deplorable scholarship

We are struck dumb by the report that 179 professors from 110 universities across the nation have been indicted for a crime that goes way beyond plagiarism -- republishing other authors’ copyrighted books under their own names after only changing the book covers.　As we have never heard of such an outrageous wholesale copyright breach case before, we wonder how the accused professors could commit such an alleged illegal and brazenly immoral act. 　Investigators of the Uijeongbu District Prosecutor

Dec. 15, 2015

[Editorial] New lending rules

The Korea Federation of Banks and the Financial Services Commission have jointly announced new lending guidelines for banks in their bid to curb household debt. The measure is expected to slow the rapid rise of home loans extended by banks, but a soft landing of the worsening debt problem requires more comprehensive solutions.　The new lending guidelines call for banks to assess applications for home loans based on borrowers’ income and ability to repay instead of their ability to provide collate

Dec. 15, 2015

[Editorial] Low carbon age

The historic agreement 195 nations endorsed to curb global warming should be hailed by all on Earth, as it gives hope that the world can do many things to prevent man-made calamites and leave a better environment to our descendants. 　The accord, reached in Paris on Saturday, set a target of keeping warming of the planet to “well below” 2 degrees Celsius by the year 2100 compared to that during the Industrial Revolution. 　The participating countries also agreed to endeavor to limit even to 1.5 de

Dec. 14, 2015

[Editorial] Bad bet

Ahn Cheol-soo’s decision to leave the main opposition New Politics Alliance for Democracy and create his own political party is bad for himself, the opposition and Korean politics as a whole. 　Ahn’s desertion from the NPAD, of which he once was a joint leader, is another typical case of the opportunism that he is now famous for. He said he was leaving the party because he was short on capability and power to change the minds of those with vested interests and those who were content with the stat

Dec. 14, 2015

[Editorial] Unpredictable country

North Korea appears to have simultaneously shut down its political and cultural interchange events with two of its neighbors, South Korea and China, over the weekend.　As expected, there was not much progress in the latest inter-Korean talks. The attention of South Korean citizens was more focused on a Pyongyang-based girl group’s planned performance in Beijing on Saturday.　CNN also carried an online article on North Korean all-girl Moranbong Band’s scheduled visit to China. Its mistake of postin

Dec. 13, 2015