Haven’t blogged about them in a bit.
South Korean
businesses have suffered losses of up to ten trillion won (US$8.3 billion) from
the cutbacks in inter-Korean economic cooperation under the Lee Myung-bak
administration, figures show.
The losses taken by
South Korean firms are fives times the 1.8 trillion won (US$1.7 billion) North
Korea’s estimated losses. The results show an unintended effect of Seoul’s May
24 sanctions, which were meant to punish North Korea economically for the
shooting death of a tourist at the Mt. Kumkang resort, the sinking of the
Cheonan warship, and the shelling of Yeonpyeong Island. North Korea has offset
these losses with increased cooperation with China. …
According to
Unification Ministry figures, some 319 of the 1,106 companies involved in
inter-Korean economic cooperation, or 28.8%, have shut their doors since the
Lee administration took office in 2008.
Chung Yang-geun,
chairman of the Committee to Promote Inter-Korean Economic Cooperation, said an
independent study in March 2011 showed more than 400 of the 1,017 participating
businesses, or 39.3%, as either having closed down or being out of contact.
Thirteen of the 32 business operating in the Mt. Kumkang tourism zone, or
roughly 40%, have also closed down.
Lee Jong-hong, vice
chairman of the council of businesspeople working in the Mt. Kumkang zone, said
an independent study found the 32 businesses there suffering losses of 208
billion won through the end of May after investing a total of 134 billion won.
“With the government
providing loans for just 12 billion won, which is 9% of the investment, we’re
having a tough time keeping the businesses going,” Lee said.
Unification Ministry
exchange and cooperation bureau director Hwang Bu-gi said the government had
never encouraged businesses to take part in economic cooperation projects in
the first place.
“These economic
cooperation efforts with North Korea were the participants’ own
responsibility,” Hwang said. “They have to bear that risk.”
But Ahn Gyo-sik,
former chairman of the Kumkang businesspeople’s council, said the businesses
invested after receiving government approval for their North Korea efforts,
including tourism at the resort, and ended up suffering losses after the
government blocked their efforts.
“The risk occurred
because of changes in government policy, not any kind of management errors from
the businesspeople themselves,” Ahn said. “The government owes them
compensation.”
The government is partially subsidising trade with a country
it must put sanctions on because it is communist, war-like and completely
untrustworthy. South Korean businesses aren’t taking crazy pills at this point;
they’re taking stupid pills.
A reunified Korea
would be capable of joining a select group of countries with a per-capita
income of over US$30,000 and a population of 80 million, some pundits believe.
…
To reach that level,
Korea would have to rely far more than it does now on domestic consumption and
reduce its dependence on exports. Domestic consumption accounts for 70 to 80
percent of the U.S. and Japanese economies. "If the economy gets bigger
due to a growth in the population, it would become less vulnerable to external
shocks despite trials and errors as it pursues innovative steps," said Kim
Hyung-joo at the LG Economic Research Institute.
But a unified Korea
would have a long road ahead boosting per-capita GNI to $30,000, since North
Korea's was a mere $720 or 1/20 of the South’s last year. Even in the case of
unified Germany, it was not until the mid-2000s for the index to reach that
level again even though the gap was much smaller. The per-capita income of East
Germany was around one-third of West Germany's before reunification.
"We could end up
mired in problems without ever nearing the $30,000 per-capita GNI level if we
fail to prepare for reunification," said Yoon Chang-hyun at the Korea
Institute of Finance.
Korea needs to bolster
its capital reserves for reunification, develop its industrial base and take
other economic preparatory steps, as well as strengthening diplomatic efforts
for such a scenario, pundits said.
In early May in front
of the New York Maritime Museums along the Hudson River in Manhattan, dozens of
people were queuing up in front of a tiger-striped truck. Bearing the name Korilla BBQ, it offers a peculiar
fusion cuisine and is run by three second-generation Korean-Americans.
Edward Song, who
majored in finance at Columbia University, and his two friends offer Porkinator, a taco made with pork and
kimchi, and Wonder Bird, a taco with chicken and kimchi. Korilla BBQ has over
18,000 followers on Twitter.
Korean cuisine was
first introduced to the U.S. by first-generation Korean immigrants, and now
their children are having fun reimagining it. Many of these successful
second-generation Korean cooks are young, business-minded graduates of
prestigious universities. They strictly try to approach Korean food from
American point of view and reinvent it to appeal to the taste of local people.
(kamsahamnida)