[Editorial] Disastrous data breach

Citizens are seething with anger as they confirm that their financial information has been leaked by their credit card companies. They are also gripped by apprehension as the leaked information could be used by financial scammers. In the nation’s worst ever data breach, more than 20 million people ― virtually all of the nation’s economically active population ― had their sensitive financial information leaked. The leak occurred due to lax personal data management by the three credit card compani

Jan. 21, 2014

[Editorial] Korea-Russia ties

The United States, Japan, China and Russia are often referred to in Korea as the “neighboring four superpowers.” Generally, the four countries that have the strongest influence on the Korean Peninsula and the region are mentioned in the above order.But even without that order, one would not deny that South Korea’s relations with Russia are weaker than its ties with the other three, in terms of political, economic and civilian interactions. For instance, about 167,000 Russians visited Korea and 9

Jan. 20, 2014

[Editorial] Fostering software sector

Samsung Electronics chairman Lee Kun-hee said recently that the firm should work hard to enhance its software competitiveness. Company officials said Lee told top executives that measures to strengthen its software prowess should include M&As. Lee’s comments illustrate how seriously Korea’s corporate leaders take software, even as some of them, like Lee and Hyundai Motor’s Chung Mong-koo, bask in the global success of their hardware products, ranging from televisions and smartphones to automobil

Jan. 20, 2014

[Editorial] Low labor productivity

Labor productivity growth has slowed across the globe in recent years. According to a report published last week by the Conference Board, worldwide productivity, as measured by output per person employed, grew by 1.7 percent last year, down from 1.8 percent in 2012 and 2.6 percent in 2011.Korea’s labor efficiency has improved at a far slower pace. Its annual growth rate averaged 1.26 percent in the past three years compared to the global average of 2.03 percent.The New York-based nonprofit resea

Jan. 19, 2014

[Editorial] Peace offensive

It is unreasonable that North Korea has been strengthening its peace offensive while turning a blind eye to South Korea’s proposal to resume the reunions of families separated in the 1950-53 Korean War.Pyongyang has shown a pattern of issuing a series of peace overtures only to follow with sudden military provocations. It has yet to be seen whether the latest charm offensive will follow this pattern but we should remain cautious about the possibility.President Park Geun-hye took an appropriate s

Jan. 19, 2014

[Editorial] Park’s political slogan

President Park Geun-hye’s “474 vision” is the slogan used to promote her political aims. It befits the definition of a slogan, which is, according to one dictionary, a phrase that is easy to remember and used to attract attention. Her slogan is short and simple ― a cluster of three Arabic numerals and one Koreanized English word. It is drawing public attention, as the deputy prime minister and other top economic policymakers, as well as the president herself, are repeating it over and over again

Jan. 17, 2014

[Editorial] Japan’s humiliation

On Wednesday, the U.S. House of Representatives attached to its spending bill a document that urges the U.S. secretary of state to “encourage” the Japanese government to address issues raised in its 2007 resolution on “comfort women,” a euphemism for those forced into sexual slavery for the Japanese military during World War II. Though nonbinding, it was the first time that the “comfort women” issue had been contained in U.S. legislation.If Japan perceived it as yet another slap in the face, it

Jan. 17, 2014

[Editorial] Steady job growth

The employment data for 2013 released by Statistics Korea is cause for both concern and optimism.The figures raise concern as the employment rate of young people between 15 and 29 has fallen below the 40 percent mark for the first time since 2000, when the statistics agency began to compile the relevant data.Last year, the youth employment rate fell to 39.7 percent from 40.4 percent in 2012. The drop contrasted with the improvement in the employment situation for other age groups. The youth empl

Jan. 16, 2014

[Editorial] Municipal bankruptcy

The chief of the ruling Saenuri Party has triggered a debate on local government finances by suggesting the need to introduce a municipal bankruptcy system as a means of curbing local government debt. In his New Year’s news conference Tuesday, Hwang Woo-yea said his party would consider instituting a bankruptcy system for local governments to prevent them from borrowing excessively to finance ill-advised projects.A municipal bankruptcy system is designed to salvage local governments that cannot

Jan. 16, 2014

[Editorial] Partnership with India

South Korea and India celebrated the 40th anniversary of the establishment of diplomatic relations last year. Three years earlier, the two countries signed a comprehensive economic partnership agreement, setting up a major framework for further boosting trade and investment ties.It can still hardly be said that the third- and fourth-largest economies in Asia have achieved the fullest potential of mutual cooperation. Bilateral trade volume increased from $15.5 billion in 2008 to $20.6 billion in

Jan. 15, 2014

[Editorial] Labor-management tension

A recent survey showed that a majority of local companies were worried that labor-management relations would further deteriorate this year, with thorny issues piling up over wages and working conditions. In the poll of 232 businesses, released by the Korea Employers’ Federation this week, more than 76 percent expected labor-management ties to worsen in 2014. Only 2.7 percent saw a possibility for improvement. This outlook was the gloomiest in five years. The survey cited possible labor-managemen

Jan. 15, 2014

[Editorial] Attracting FDI

The Korean government is stepping up efforts to attract foreign direct investment in its bid to speed up the economic recovery. Next week, President Park Geun-hye will attend the World Economic Forum in Davos, Switzerland, where she will introduce her vision of making Korea a creative economy and pitch the nation to CEOs of global corporations.Last week, Park invited heads of foreign-invested companies operating in Korea to the Blue House to convince them of the benefits of investing in Korea an

Jan. 14, 2014

[Editorial] DP’s reform pledge

Kim Han-gil, chairman of the main opposition Democratic Party, has pledged to drastically reform the unpopular party to increase its chances in the June 4 local elections.With less than five months left before polls open, the party is beginning to feel the threat posed by independent Rep. Ahn Cheol-soo, who has been pushing to set up his own party to change the current political framework. Although Ahn’s party has yet to be created, it has maintained a lead over the DP in opinion polls. Fueling

Jan. 14, 2014

[Editorial] Southeast Asia’s wage hikes

Steep wage increases in Southeast Asian countries have put an increasingly unbearable burden on Korean manufacturers operating in the region to maintain price competitiveness. More than 8,200 Korean companies have run production facilities in a number of Southeast Asian nations to take advantage of their low labor costs.According to industry sources here, the monthly minimum wage for Cambodian workers has more than doubled over the past months, with pay increases reaching 14.9 percent and 22 per

Jan. 13, 2014

[Editorial] Defense cost sharing

Seoul and Washington seemed to have considered the need to consolidate the foundation of their alliance amid the unstable security situation on the Korean Peninsula when they reached a deal Sunday on sharing the cost of stationing American troops here. Under the five-year accord concluded after 10 rounds of negotiations since last July, South Korea is to pay 920 billion won ($866 million) this year to retain U.S. soldiers who help guard against threats from North Korea. The figure represents a 5

Jan. 13, 2014

[Editorial] Curbing household debt

Household debt has been growing at an alarming rate for the past decade. But the previous administrations have turned a deaf ear on warnings that the snowballing debt would push the nation into another financial crisis if no action is taken against it.Now with the household debt assumed to have surpassed the mind-boggling 1 quadrillion won ($942 billion) mark, the Park Geun-hye administration is reportedly working on a plan to curb its growth. Surely, it’s better late than never. But the questio

Jan. 12, 2014

[Editorial] Textbook row worsening

It is not easy to determine what to teach in high school history classes because historical facts are subject to diverse interpretations. The matter becomes even more complicated when considering the argument that all historical facts are themselves subjective.One way to help high schools solve this problem is to allow them to select a history class textbook from among those approved by the National Institute of Korean History. An underlying assumption here is that distortions of historical fact

Jan. 12, 2014

[Editorial] Changing election rules

Those planning to run in the June gubernatorial and other local elections will start to register with the National Election Commission as potential candidates next month. But the election rules have yet to be set, with the ruling party dawdling on the legislation.The key issue of contention is whether or not to continue to allow political parties to nominate those running for election to the posts of municipal mayor and municipal councils. With party nomination doing more harm than good, both th

Jan. 10, 2014

[Editorial] Tightening the screws

It goes without saying that one of the most urgent tasks for the Park Geun-hye administration is to put the snowballing debt of state-invested corporations under control. If no action is taken against the debt, it will be a matter of time until it shakes the foundation of the Korean economy.As of last year, the combined debt of 295 state-invested corporations was near the 500 trillion won ($474 billion) mark. Added to this mind-boggling amount was more than 70 trillion won owed by corporations u

Jan. 10, 2014

[Editorial] Pacifist constitution

Last year, two U.S. experts on international security suggested Japanese Prime Minister Shinzo Abe could win the Nobel Peace Prize by making a grand gesture conceding a group of rocky islets claimed both by Tokyo and Seoul to South Korea. With Japanese historians having raised questions about their country’s claim to the islets, they argued, such a move would transform Korean perceptions of its former colonial ruler and force China and other countries to re-examine their views of Japan.The Japan

Jan. 9, 2014