[Editorial] Tax-fueled growth

South Korea’s fiscal deficit soared to a record high in the first half of the year, according to a monthly report released by the Ministry of Economy and Finance last week.Over the cited period, the overall fiscal balance, which is calculated as the difference between a government’s total revenue, including taxes and proceeds from asset sales, and its total expenditure, recorded a deficit of 19.4 trillion won ($16 billion).In particular, the managed fiscal balance, which refers to th

Aug. 11, 2019

[Editorial] Act wisely

Amid the escalating South Korea-Japan conflict, the US is expected to turn up pressure on South Korea over diplomacy and security issues.　Major issues between Seoul and Washington include South Korea’s share of US Forces Korea upkeep costs, the protection of shipping lanes off the coast of Iran and the deployment of US intermediate-range missiles.　US Secretary of Defense Mark T. Esper came to Seoul late Thursday afternoon. He will hold talks with his South Korean counterpart, Jeong Kyeong-

Aug. 8, 2019

[Editorial] Stop politicizing

Japan is primarily to blame for starting a trade war with South Korea over historical disputes, and for the consequent escalation of tension between the two countries. This, however, should not warrant excessive, reckless and emotive responses from our side. In view of the degree of Japan’s provocation -- unprecedented economic retaliation in the form of export curbs -- the rise of anti-Japanese public sentiment in South Korea may be inevitable. The campaign to boycott Japanese goods and r

Aug. 7, 2019

[Editorial] Cool-headed approach

To cope with Japan’s trade retaliation against South Korea amid drawn-out historical disputes between the two countries, President Moon Jae-in’s administration has put forward a set of response measures.Japan last week decided to remove South Korea from a list of nations given preferential trade treatment, an apparent reprisal for a ruling by the South Korean Supreme Court in October awarding damages to South Korean victims of wartime forced labor. In July, Tokyo had imposed tighter

Aug. 6, 2019

[Editorial] Don’t be rash

Controversy has flared up over whether South Korea should discontinue military intelligence-sharing with Japan in response to the latter’s decision to exclude it from the whitelist of favored trading partners.During a meeting with her Japanese and US counterparts last week, Foreign Minister Kang Kyung-wha said she intended to reconsider the bilateral deal, called the General Security of Military Information Agreement. Cheong Wa Dae has made no secret that it views termination of the deal a

Aug. 5, 2019

[Editorial] Economic war

The unprecedented economic war Japan started against South Korea has taken relations between the two countries to the worst level since 1965, when they normalized official ties in an agreement to put the 1910-45 colonial period behind them. It is highly likely that the war may still escalate and continue for some time. All considered, the Japanese government must be condemned for starting the war by putting export curbs on materials needed for chips and displays last month, and then deciding to

Aug. 4, 2019

[Editorial] Stronger deterrent

North Korea has recently sent conflicting messages to South Korea and the US via its renewed provocative acts.The North claimed Thursday that it had tested a new rocket system in launches conducted the previous day, which came less than a week after it fired two short-range ballistic missiles from its east coast into the East Sea in its first provocation since May.After last week’s missile firings, North Korea’s state media said that the launches, supervised by the recalcitrant regim

Aug. 1, 2019

[Editorial] Revive communication

Conflict between South Korea and Japan surrounding Tokyo’s export restrictions on high-tech materials is worsening rather than subsiding.The Japanese government is expected to pass a bill at a Cabinet meeting Friday, removing Korea from a so-called “whitelist” of 27 trusted trade partners.If the Cabinet approves the bill, it will likely take effect late this month or thereabouts.If Korea is removed from the list, Japanese exporters of 1,115 strategic items will have to get perm

July 31, 2019

[Editorial] More risks

South Korea seems under siege, encountering multiple challenges in diplomacy, trade and security. It is further troubling to see US President Donald Trump, who otherwise should help his country’s longtime ally overcome the difficulties, is adding to its risk factors. One of the risks comes from Trump’s order to rid South Korea and other “wealthy” countries of the benefit of having developing nation status under World Trade Organization rules. The order, issued in the form

July 30, 2019

[Editorial] Keep sanctions intact

Data released by the Bank of Korea last week shows North Korea’s economy continuing to contract amid prolonged international sanctions imposed on the recalcitrant regime to choke off funding for its nuclear weapons and missile programs.The North’s gross domestic product is estimated to have shrunk 4.1 percent in 2018 from the year before, marking its worst performance since 1997, when it backtracked 6.5 percent. Last year’s negative growth also follows an estimated 3.5 percent

July 29, 2019

[Editorial] Beef up missile defense

North Korea said that its test launches of “new-type” ballistic short-range missiles last week were “a demonstration of its power” and a “solemn warning to South Korea.”“South Korea’s leader must not make a mistake of ignoring the warning,” North Korean leader Kim Jong-un said, according to the North Korean Central News Agency. The state media outlet said that Kim instructed the missile launches and personally watched them.The general view of

July 28, 2019

[Editorial] Security posture

The intrusions by Chinese and Russian warplanes into South Korea’s air defense zone this week seemed designed to test the robustness of security ties between Seoul, Washington and Tokyo.On Tuesday, two Russian bombers and two Chinese bombers trespassed Korea Air Defense Identification Zone without prior notice. Afterward, a Russian surveillance aircraft committed what the South Korean Air Force described as an “unprecedented violation of the country’s airspace” over the D

July 25, 2019

[Editorial] Closing big loophole

The government has issued a public notice on a legislation bill regarding conflicts of interest involving public officials. There are solid reasons the National Assembly should enact the bill without a hitch. The bill, written by the Anti-Corruption and Civil Rights Commission and made public last week, will be sent to the National Assembly after a 40-day public review. If enacted, it would close a major loophole that has been left out despite the numerous legislative and administrative initiati

July 24, 2019

[Editorial] Gloomy outlook

The country’s economic growth rate for the second quarter of the year, which will be unveiled by the Bank of Korea on Thursday, is estimated to be around 1 percent, according to analysts here.Earlier, the central bank had forecast that Asia’s fourth-largest economy would expand 1.2 percent on-quarter during the April-June period. But a deepening slump in exports and investments has continued to weigh on the economy.South Korea’s exports are expected to decline for the eighth co

July 23, 2019

[Editorial] Prudence matters

Tensions are escalating between South Korea and Japan over historical issues that have led to an unprecedented trade row. Judging from the latest developments, if left uncontrolled, the feud could cause irrecoverable damage to bilateral relations between the two countries. The most urgent thing is that Japan -- which unilaterally imposed export curbs on some high-tech materials used by Korean tech firms -- should refrain from taking the additional retaliatory measures it had threatened. Also imp

July 22, 2019

[Editorial] Dangerous spillover

The escalating row over Japan’s export curbs on South Korea should be prevented from spilling over into the realm of security cooperation.It would not serve the interests of both countries if the unraveling of their security ties, encouraged by the US, results in undermining international efforts toward denuclearizing North Korea.In this regard, the US needs to assume a more active mediating role to help resolve the spat between its two key Asian allies over the issue of compensating Korea

July 21, 2019

[Editorial] Listen to residents

Sejong City Council in South Chungcheong Province announced its unanimous official position that the government should postpone its decision on dismantling the Sejong Weir on the Geum River.　“More than 200 billion won ($169 million) of taxpayers’ money was used to build the weir,” Sejong City Council Chairman Seo Geum-taek said Monday. “The government must think carefully whether it is desirable to spend more to dismantle it.”The council effectively opposed the dism

July 18, 2019

[Editorial] Be frank

Japan is taking steps to remove South Korea from a list of countries being provided preferential export treatment for Japanese-made strategic goods. Tokyo may well stop the move because it lacks legitimacy and would only further worsen the situation. If the Japanese government pushes ahead with the plan, the removal of South Korea from the 27-country whitelist would take effect in mid-August. There is no doubt that the new export control, following curbs already imposed on three key materials fo

July 17, 2019

[Editorial] Adjustments needed

President Moon Jae-in should not feel too sorry for failing to keep his election pledge to increase the minimum wage to 10,000 won ($8.47) per hour within the first three years of his five-year term.Moon offered a public apology through his chief of staff for policy on Sunday, two days after the Minimum Wage Commission decided to raise the wage floor by 2.9 percent to 8,590 won for next year.If the hourly minimum wage had been bumped up to 10,000 won for 2020 as Moon promised during his campaign

July 16, 2019

[Editorial] Lax military discipline

A suspicious man spotted inside a base of the Navy’s 2nd Fleet Command in Pyeongtaek, Gyeonggi Province, turned out to be one of its soldiers.Fortunately, the command had not been infiltrated. But the incident revealed a deplorable lack of military discipline.The Ministry of National Defense said Saturday the unidentified man detected near an ammunition depot inside the command was found to be a petty officer third class, who was on duty at a nearby sentry post.The soldier went AWOL from h

July 15, 2019