[Editorial] Corporate exodus

In yet another reflection of the negative impact of anti-business policy implemented by President Moon Jae-in’s administration, local companies have drastically increased overseas direct investments, while continuing to reduce domestic investments.South Korean companies’ ODI rose 44.9 percent from a year earlier to $14.11 billion in the first three months of the year, according to data released last week by the Ministry of Economy and Finance. The figure is the highest for any first

June 16, 2019

[Editorial] Rash responses

Recently, Cheong Wa Dae denounced the political community for two days in a row.　Bok Ki-wang, presidential secretary for political affairs, responded positively on Wednesday to a petition calling for the introduction of a recall system to remove lawmakers.　“People can recall the president, governors, mayors and provincial councilors, but there is no system to recall lawmakers. It is unconvincing from the standpoint of common sense,” he said.　“Is a country righteous if its peopl

June 13, 2019

[Editorial] Rare first lady

Former South Korean first lady Lee Hee-ho who passed away Monday at the age of 97 stands out among wives of presidents who ruled the country since establishment of the republic in 1948. Most of all, her life -- since she got married to former President Kim Dae-jung in 1962 when she was 40 -- was closely knitted with her husband’s tumultuous political career that spanned from the darkest dictatorial era to full-blown democracy. Indeed, her name cannot be separated from Kim, whose fight agai

June 12, 2019

[Editorial] Downside risks

In an about-face from its persistent economic optimism, the presidential office has begun to concede that the country’s economy may be slipping into a prolonged downturn.During a press briefing last week, Yoon Jong-won, the senior presidential secretary for economic affairs, said the Korean economy is poised to face heightened downside risks amid deteriorating external conditions. He said the possibility of the risks being drawn out could not be ruled out, as external uncertainties have in

June 11, 2019

[Editorial] Stop dividing people

Cheong Wa Dae emphasizes the unity of the people, but what it actually says causes disunity. In his Memorial Day address on Thursday, President Moon Jae-in mentioned Kim Won-bong, a fighter who was decorated by North Korea for his distinguished service in the Korean War (1950-53).Moon mentioned Kim and several other independence fighters, suggesting they had formed the roots of the Republic of Korea’s (South Korea’s) armed forces and helped to lay the foundation for the Korea-US alli

June 10, 2019

[Editorial] Tough challenges ahead

President Moon Jae-in on Sunday started an eight-day tour of Finland, Norway and Sweden. It is his first trip to the northern European nations since he took office more than two years ago. Summit diplomacy with any country is important, and as the head of state of a country that has maintained friendly and cooperative relations with the three countries, Moon’s task is to use his trip to forge closer ties with them. That doesn’t seem so difficult, compared with other foreign policy an

June 9, 2019

[Editorial] Adjusting pace

A tripartite commission last week kicked off its deliberation to set the minimum wage for next year amid mounting calls to adjust the pace of increase to cushion the fallout from previous steep hikes.The commission, which comprises 27 members, nine each representing labor, business and the wider public, raised the minimum wage by 16.4 percent on-year to 7,530 won ($6.39) per hour in 2018, the steepest rise in 17 years. The hourly minimum wage increased further by 10.9 percent to 8,350 won in 201

June 6, 2019

[Editorial] Excessive sanctions

The government of South Chungcheong Province decided last week to suspend a blast furnace at a Hyundai Steel plant in Dangjin for 10 days.It cited that the plant has emitted pollutants by opening a safety valve -- called bleeder valve -- when it conducted maintenance work on the furnace.The decision will take effect on July 15. Hyundai Steel is considering filing a petition for an injunction.The provincial governments of North Gyeongsang and South Jeolla also recently notified Posco’s Poha

June 5, 2019

[Editorial] It’s inevitable

It seems evident that the government wants to extend the legal retirement age. In many respects, it is a step in the right direction. The most convincing indication has come from Hong Nam-ki, deputy prime minister for economy, who said last week that one of the 10 government task force teams working on demographic changes is focused on the retirement age. He predicted the government will be able to announce its position by the end of this month. Stretching the retirement age, which is now 60, is

June 4, 2019

[Editorial] Negative reversal

South Korea seems set to record a current account deficit in April for the first time since May 2012 in yet another warning sign about the sluggish performance of Asia’s fourth-largest economy.With the Bank of Korea scheduled to announce official data this week, government officials have indicated that the country’s current account balance will tip into negative territory after having been in the black for 83 straight months through March.A statement released Friday by the Ministry o

June 3, 2019

[Editorial] Don’t look away

Shareholders of Hyundai Heavy Industries approved the company’s plan to split up at their extraordinary meeting in a gymnasium at the University of Ulsan on Friday. It marked the first step in the process of Hyundai Heavy’s proposed merger with Daewoo Shipbuilding & Marine Engineering. Hyundai Heavy changed the location of the meeting at the last minute to avoid a protest. The initial venue had been seized by union members of the companies and members of the Korean Confederation

June 2, 2019

[Editorial] No compromise

The cancellation of the license for gene therapy drug Invossa should offer painful, but precious lessons to the country, especially the biopharmaceutical industry and the government that regulates the increasingly sophisticated sector. Most of all, the revocation of the license for what had been hailed as a pioneer in the Korean biotech industry should serve as a grim reminder that ethics and honesty should be the unchallenged principles in the development of new drugs. Obsession with being the

May 30, 2019

[Editorial] Getting poorer

Recent government data showed income earned by the country’s poorest households has decreased over the past two years, in yet another indication that President Moon Jae-in’s misguided economic policy has failed to bring its intended outcome.Since assuming office in May 2017, the Moon administration has pushed for a set of measures aimed at increasing the earnings of low-income households, which it hopes would result in spurring growth by boosting consumption.But the average monthly i

May 29, 2019

[Editorial] Healthy gaming culture

The World Health Organization has classified gaming addiction as a disease like drug or alcohol addiction. The decision is expected to have a great impact on the Korean gaming industry and efforts to prevent gaming addiction.The WHO cited as symptoms of gaming addiction: impaired control over gaming, increased priority given to gaming and continuation or escalation of gaming despite negative consequences. It suggested that abnormal gaming behavior should be evident over a period of at least 12 m

May 28, 2019

[Editorial] Diplomatic secrets

The escalating scandal surrounding the leak of a telephone conversation between President Moon Jae-in and US President Donald Trump earlier this month is yet another case that shows how extreme partisan confrontation damages national interests. The core element of the case is that a diplomat stationed in Washington handed over the script of a telephone conversation between the two leaders to an opposition lawmaker with whom he has a close personal relationship. The lawmaker, Rep. Khang Hyo-shang

May 27, 2019

[Editorial] Tilted ground

The government said last week it would submit a motion to the parliament this fall for the ratification of three of four key International Labor Organization conventions that South Korea has not yet adopted.The move, announced by Employment and Labor Minister Lee Jae-kap, marks an about-face from the government’s position that the ratification should be sought after related domestic laws are revised.The country joined the UN agency on labor in 1991 but has not ratified four out of its eigh

May 26, 2019

[Editorial] Conditions for reform

Cheong Wa Dae, the ruling party and the government unveiled a police reform plan Monday, but it is questionable if this can prevent police from becoming too powerful and secure independence in investigations. The plan calls for the establishment of a “national investigation headquarters” and the expanded test operation of local police agencies to be created and run by provincial governments.The point of setting up the headquarters is to separate investigations from administration and

May 23, 2019

[Editorial] Mend ties

It is a positive development that there are signs South Korea and Japan are working to restore strained relations. The foreign ministers of both countries -- Kang Kyung-wha and Taro Kono -- are to meet on the sidelines of a ministerial conference of the Organization for Economic Cooperation and Development being held in Paris.This is expected to be followed by another top-level meeting between South Korean Defense Minister Jeong Kyeong-doo and his Japanese counterpart Takeshi Iwaya, next week. T

May 22, 2019

[Editorial] Weaker won

The country’s chief economic policymaker pledged Monday to take steps to stabilize the local financial market in case of increased volatility amid the escalating trade standoff between the US and China.However, financial authorities’ position on the recent steep weakening of the won remains ambiguous, as Hong Nam-ki, the minister of economy and finance, did not elaborate on what steps the country would take. The Korean currency lost value against the US dollar by 5.4 percent over the month to la

May 21, 2019

[Editorial] Fiscal health concerns

In a fiscal strategy meeting last week, President Moon Jae-in reaffirmed his plans to continue to expand government expenditure.“It is urgent to solve structural social problems such as low growth, bipolarization, the low birth rate and the rapid aging (of the population),” he said at the meeting. “The government budget must take on a bolder role than ever before to solve these problems.”Government budgets expanded for two straight years after Moon took power -- 7 percent and 9.5 percent for 201

May 20, 2019