[Editorial] Restarting home market

The financial regulator has eased the debt-to-income rule in its latest bid to revitalize the housing market. The step, announced on Friday, seeks to boost demand for homes by allowing young workers and older citizens to take out more loans when they purchase houses. Currently, when a person takes out a mortgage, the maximum loan amount is determined by his debt-servicing ability. For a resident in Seoul, principal and interest payments on a mortgage should not exceed 50 percent of his present a

Aug. 19, 2012

[Editorial] No leniency for tycoons

Was it the court’s signal that it would no longer exercise leniency toward criminall tycoons? A Seoul district court caused consternation among Korean business leaders Thursday by putting Hanwha Group chairman Kim Seung-youn into prison right after handing down a guilty verdict.Kim was indicted in January 2011 without detention on charges of embezzling 320 billion won from group subsidiaries and thereby inflicting damage amounting to 480 billion won on them. The court sentenced him to four years

Aug. 19, 2012

[Editorial] Conscientious voice

Renewed disputes over historical and territorial issues between South Korea and Japan have brought ties to their lowest ebb since the two countries normalized relations in 1965.President Lee Myung-bak’s visit to South Korea’s easternmost islets of Dokdo last Friday sparked a chain of tit-for-tat accusations and actions that showed how deep antipathy stemming from their unfortunate history runs between the neighbors.Brushing aside protests from Tokyo, which has also laid claim to the islets, Lee

Aug. 17, 2012

[Editorial] Being sidelined?

With South Korea seeing its ties with China and Japan sour recently, North Korea is actively reaching out to the two neighboring powers. The North has also been responding to moves made by Russia since Vladimir Putin returned to the Kremlin in May. It is also seen to be trying to activate contacts with the U.S. mainly through a dialogue channel in New York.Pyongyang’s moves to improve relationships with the four major powers come amid signs of the impoverished regime taking a course toward econo

Aug. 17, 2012

[Editorial] N.K.’s path to reform

North Korea has renewed efforts to attract Chinese investment to jump-start its moribund economy. Jang Song-thaek, the powerful uncle and guardian of the North’s young leader, Kim Jong-un, is visiting Beijing cap in hand. He is expected to meet Chinese President Hu Jintao and other leaders today before returning to Pyongyang.One main purpose of Jang’s visit is to press China to invest in the North’s two special economic zones ― Raseon City on the North’s northeastern tip, and Hwanggeumpyeong and

Aug. 16, 2012

[Editorial] A deserted party

As expected, the Korea Confederation of Trade Unions has withdrawn its support for the embattled Unified Progressive Party, accelerating its split into two political groups.In May, the militant umbrella labor group threatened to stop backing the party should it fail to expel Reps. Lee Seok-ki and Kim Jae-yeon, who have been found to have become the party’s proportional representation candidates for the April parliamentary election through a rigged primary.Yet the party failed last month to pass

Aug. 16, 2012

[Editorial] Back to normal

The Constitutional Court has been one justice short for more than a year, leaving its already crowded docket more crowded. The blame should be laid on the ruling Saenuri Party and the main opposition Democratic United Party, which have held the selection process hostage for their partisan interests.But an opportunity to put the court’s operation back to normal is coming soon, with the National Assembly set to hold confirmation hearings on nominees to replace four retiring justices and another to

Aug. 15, 2012

[Editorial] Foibles or tantrums?

It was more saddening than angering to see President Lee Myung-bak go ahead with his earlier decision to appoint one of the least suitable people possible as chairman of the National Human Rights Commission chairman. Which was it that was at work ― Lee’s foibles or tantrums?Persons of integrity with a track record of promoting human rights are eligible for the coveted post. But Lee’s choice was far from known for his integrity or human rights promotion. Instead, his career has been tainted by al

Aug. 15, 2012

[Editorial] Fractious neighborhood

The performance of young South Korean athletes in the 2012 London Olympics, which put the country fifth in the gold medal standings, added to South Koreans’ sense of pride about what they have achieved since liberation from Japan’s colonial rule 67 years ago today.Looking at the area surrounding the nation, however, it hardly seems within our reach to fulfill what Koreans dreamed of when they gained independence ― a prosperous united country at peace with its neighbors.In fact, a longstanding te

Aug. 14, 2012

[Editorial] A corrupt family

Many Koreans think themselves accustomed to all sorts of corrupt practices plaguing society, but they have still been stunned by recent corruption allegations against a mayor and his family.Kim Hak-kyu, the mayor of Yongin in Gyeonggi Province, allegedly had his associates pay for his rent and back taxes worth about 150 million won ($132,000) before he ran in the 2010 local elections. His wife is suspected of receiving 160 million won from seven businessmen to help finance her husband’s campaign

Aug. 14, 2012

[Editorial] Changing tack over Dokdo

President Lee Myung-bak’s visit to Dokdo on Friday was a surprise in light of his consistent efforts since inauguration to build future-oriented ties with Japan. The unexpected visit ― the first ever by a Korean president ― is certain to throw the bilateral relationship into a tailspin as Tokyo views it as a breach of an unwritten understanding between the two nations. Yet it is fully understandable given Tokyo’s repeated sovereignty claims to South Korea’s easternmost territory. During Lee’s te

Aug. 13, 2012

[Editorial] Unaffordable luxury

Many of the public agencies that are to relocate from Seoul and its surrounding Gyeonggi Province to other cities have learned no lesson at all from local governments that ruined their finances by pouring money into exorbitant office buildings.Under a balanced regional development scheme, 147 public agencies are required to move out of the capital zone to local “innovation hubs.” Of them, 121 have decided to construct their own office buildings, while 26 have chosen to rent. Of the 121 not renti

Aug. 13, 2012

[Editorial] Drastic N.K. reform?

Pyongyang is reportedly conducting an experiment of far-reaching economic reform again, this time under the leadership of young leader Kim Jong-un. A lack of information, however, makes it difficult to connect the dots. Moreover, it is risky to read too much into news reports on North Korea’s decision to abandon some of the pillars supporting communist-style economic management, including central planning and rationing. That said, signs were coming that the Swiss-educated Kim was launching an ec

Aug. 12, 2012

[Editorial] DUP’s deepening woes

The main opposition Democratic United Party hopes that more than 2 million people will vote in its presidential primary, scheduled for Sept. 23. But the target may prove to be too high, given the initial lackluster response to the DUP’s call for voter registration. Only 40,365 people registered during the first two days of registration, which had started last Wednesday. Registration will continue until Sept. 4. The low level of registration was disappointing to say the least for the DUP’s leader

Aug. 12, 2012

[Editorial] Rep. Park under siege

Rep. Park Geun-hye of the ruling Saenuri Party, who has her sights on the presidency, looked invincible only a few months ago. She was not just the indisputable frontrunner for nomination but ranked the highest in approval ratings among potential presidential candidates.That is no longer so. Her leadership is under attack. True, her nomination still looks assured, with the party placed under her tight control. Moreover, no rival in the party is putting up an effective challenge against her. In o

Aug. 10, 2012

[Editorial] Passing the buck

The ruling Saenuri Party and the main opposition Democratic United Party have been competing to commit themselves to expanding welfare programs and introducing new ones. Of course, their spending commitments aim to help their campaigns in the December presidential election.A ballpark estimate by the administration puts the additional spending needed to finance the welfare programs for the next five years at 340 trillion won. The administration says yearly additional spending would range from 43

Aug. 10, 2012

[Editorial] Corporate tax hike

The proposal by the main opposition party to raise corporate tax rates should be withdrawn, as it goes against the global trend of giving incentives for businesses to invest more and create more jobs.The draft tax revision announced by the Democratic United Party on Monday calls for, among other things, raising corporate tax rates to 22 percent for companies with annual taxable profits of between 200 million won ($177,200) and 50 billon won, and to 25 percent for firms with profits of more than

Aug. 9, 2012

[Editorial] N.K. flood aid

Seoul officials might have felt somewhat embarrassed by Vietnam’s reported commitment to donate 5,000 tons of rice to flood-hit North Korea. Making the pledge in his meeting with North Korea’s visiting nominal head of state Kim Yong-nam on Monday, Vietnamese President Truong Tan Sang expressed his “deep sympathy” for the deaths and property damage caused by the flooding. Pyongyang’s official news agency said last Saturday floods in the North had killed 169 people since late June, with about 400

Aug. 9, 2012

[Editorial] New governance rules

Corporate governance in Korea is characterized by the circular structure of cross holdings among affiliates of a large business group. Take the Hyundai Motor Group for example. Hyundai Motor owns stock in Kia Motors, which owns stock in Hyundai Mobis. The cross-holding structure comes full circle with Hyundai Mobis owning stock in Hyundai Motor.This circular structure of cross holdings among chaebol affiliates is the target of an attack from the ruling Saenuri Party and the main opposition Democ

Aug. 8, 2012

[Editorial] Blackout threat again

Korea Electric Power Corp. is walking a tightrope, as its electricity reserves frequently fall to dangerous levels these days. It cannot rule out the possibility of a blackout, as demand for power remains unexpectedly high as the nation is gripped by a scorching heat wave.With the summer holiday season entering full swing at the end of July, KEPCO had expected power demand to subside. But a protracted period of scorching days and tropical nights continues to push up power demand, resurrecting th

Aug. 8, 2012