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Saturday, February 11, 2012

Whitney Houston, superstar of records, films, dies


Whitney Houston, who reigned as pop music's queen until her majestic voice and regal image were ravaged by drug use, erratic behavior and a tumultuous marriage to singer Bobby Brown, has died. She was 48.

Publicist Kristen Foster said Saturday that the singer had died, but the cause and the location of her death were unknown.

At her peak, Houston was the golden girl of the music industry. From the middle 1980s to the late 1990s, she was one of the world's best-selling artists. She wowed audiences with effortless, powerful, and peerless vocals that were rooted in the black church but made palatable to the masses with a pop sheen.


(AP-Yonhap News)


Her success carried her beyond music to movies, where she starred in hits like ``The Bodyguard'' and ``Waiting to Exhale.''

She had the perfect voice and the perfect image: a gorgeous singer who had sex appeal but was never overtly sexual, who maintained perfect poise.

She influenced a generation of younger singers, from Christina Aguilera to Mariah Carey, who when she first came out sounded so much like Houston that many thought it was Houston.

But by the end of her career, Houston became a stunning cautionary tale of the toll of drug use. Her album sales plummeted and the hits stopped coming; her once serene image was shattered by a wild demeanor and bizarre public appearances. She confessed to abusing cocaine, marijuana and pills, and her once pristine voice became raspy and hoarse, unable to hit the high notes as she had during her prime.

``The biggest devil is me. I'm either my best friend or my worst enemy,'' Houston told ABC's Diane Sawyer in an infamous 2002 interview with then-husband Brown by her side.

It was a tragic fall for a superstar who was one of the top-selling artists in pop music history, with more than 55 million records sold in the United States alone.

She seemed to be born into greatness. She was the daughter of gospel singer Cissy Houston, the cousin of 1960s pop diva Dionne Warwick and the goddaughter of Aretha Franklin.

Houston first started singing in the church as a child. In her teens, she sang backup for Chaka Khan, Jermaine Jackson and others, in addition to modeling. It was around that time when music mogul Clive Davis first heard Houston perform.

``The time that I first saw her singing in her mother's act in a club ... it was such a stunning impact,'' Davis told ``Good Morning America.''

``To hear this young girl breathe such fire into this song. I mean, it really sent the proverbial tingles up my spine,'' he added.

Before long, the rest of the country would feel it, too. Houston made her album debut in 1985 with ``Whitney Houston,'' which sold millions and spawned hit after hit. ``Saving All My Love for You'' brought her her first Grammy, for best female pop vocal. ``How Will I Know,'' ``You Give Good Love'' and ``The Greatest Love of All'' also became hit singles.

Another multiplatinum album, ``Whitney,'' came out in 1987 and included hits like ``Where Do Broken Hearts Go'' and ``I Wanna Dance With Somebody.''

The New York Times wrote that Houston ``possesses one of her generation's most powerful gospel-trained voices, but she eschews many of the churchier mannerisms of her forerunners. She uses ornamental gospel phrasing only sparingly, and instead of projecting an earthy, tearful vulnerability, communicates cool self-assurance and strength, building pop ballads to majestic, sustained peaks of intensity.''

Her decision not to follow the more soulful inflections of singers like Franklin drew criticism by some who saw her as playing down her black roots to go pop and reach white audiences. The criticism would become a constant refrain through much of her career. She was even booed during the ``Soul Train Awards'' in 1989.

``Sometimes it gets down to that, you know?'' she told Katie Couric in 1996. ``You're not black enough for them. I don't know. You're not R&B enough. You're very pop. The white audience has taken you away from them.''

Some saw her 1992 marriage to former New Edition member and soul crooner Bobby Brown as an attempt to refute those critics. It seemed to be an odd union; she was seen as pop's pure princess while he had a bad-boy image, and already had children of his own. (The couple had a daughter, Bobbi Kristina, in 1993.) Over the years, he would be arrested several times, on charges ranging from DUI to failure to pay child support.

But Houston said their true personalities were not as far apart as people may have believed.

``When you love, you love. I mean, do you stop loving somebody because you have different images? You know, Bobby and I basically come from the same place,'' she told Rolling Stone in 1993. ``You see somebody, and you deal with their image, that's their image. It's part of them, it's not the whole picture. I am not always in a sequined gown. I am nobody's angel. I can get down and dirty. I can get raunchy.''

It would take several years, however, for the public to see that side of Houston. Her moving 1991 rendition of ``The Star Spangled Banner'' at the Super Bowl, amid the first Gulf War, set a new standard and once again reaffirmed her as America's sweetheart.

In 1992, she became a star in the acting world with ``The Bodyguard.'' Despite mixed reviews, the story of a singer (Houston) guarded by a former Secret Service agent (Kevin Costner) was an international success.

It also gave her perhaps her most memorable hit: a searing, stunning rendition of Dolly Parton's ``I Will Always Love You,'' which sat atop the charts for weeks. It was Grammy's record of the year and best female pop vocal, and the ``Bodyguard'' soundtrack was named album of the year.

She returned to the big screen in 1995-96 with ``Waiting to Exhale'' and ``The Preacher's Wife.'' Both spawned soundtrack albums, and another hit studio album, ``My Love Is Your Love,'' in 1998, brought her a Grammy for best female R&B vocal for the cut ``It's Not Right But It's Okay.''

But during these career and personal highs, Houston was using drugs. In an interview with Oprah Winfrey in 2010, she said by the time ``The Preacher's Wife'' was released, ``(doing drugs) was an everyday thing. ... I would do my work, but after I did my work, for a whole year or two, it was every day. ... I wasn't happy by that point in time. I was losing myself.''

In the interview, Houston blamed her rocky marriage to Brown, which included a charge of domestic abuse against Brown in 1993. They divorced in 2007.

Houston would go to rehab twice before she would declare herself drug-free to Winfrey in 2010. But in the interim, there were missed concert dates, a stop at an airport due to drugs, and public meltdowns.

She was so startlingly thin during a 2001 Michael Jackson tribute concert that rumors spread she had died the next day. Her crude behavior and jittery appearance on Brown's reality show, ``Being Bobby Brown,'' was an example of her sad decline. Her Sawyer interview, where she declared ``crack is whack,'' was often parodied. She dropped out of the spotlight for a few years.

Houston staged what seemed to be a successful comeback with the 2009 album ``I Look To You.'' The album debuted on the top of the charts, and would eventually go platinum.

Things soon fell apart. A concert to promote the album on ``Good Morning America'' went awry as Houston's voice sounded ragged and off-key. She blamed an interview with Winfrey for straining her voice.

A world tour launched overseas, however, only confirmed suspicions that Houston had lost her treasured gift, as she failed to hit notes and left many fans unimpressed; some walked out. Canceled concert dates raised speculation that she may have been abusing drugs, but she denied those claims and said she was in great shape, blaming illness for cancellations.

Why is K-pop going to America?

Although Asia-centric, major entertainment companies seek to reap U.S. benefits


Since Girls’ Generation appeared in two major U.S. talk shows and Wonder Girls launched their TeenNick television movie, “The Wonder Girls,” last week, the buzz has been overwhelming.

Yet, underneath all the hype lies a question: Why is Korean pop looking to America?

“Insofar as America is the world’s biggest music market, we, as a company and for our artists, want to take it on,”said an S,M. Entertainment representative.

“If we succeed, it is a market which can earn us massive side benefits,” the representative explained via e-mail. A significant boost in the name value of a musician or group internationally once they achieve success in the U.S. market is an obvious example.

For YG Entertainment, the collaborative work with The Black Eyed Peas’ will.i.am on a forthcoming English album is not solely about broaching the U.S. market.

“We decided that we need (an official U.S. album) because English is the most effective language to convey the message of 2NE1’s music to overseas fans who want to understand it but who do not know Korean,” said YG Entertainment PR team leader Hwang Min-hee.

Right now, S.M. Entertainment’s Girls’ Generation and YG Entertainment’s 2NE1 are still in the fledging stages of entering the American market.

After releasing their U.S. debut single “The Boys” last December, the nine-member Girls’ Generation appeared on “The Late Show with David Letterman” and “LIVE! With Kelly Ripa” last week.

Meanwhile, 2NE1 started working with will.i.am in 2010 on an album whose release date has yet to be set.

JYPE’s Wonder Girls were the first Korean group to make foray into the United States in 2009, touring with Disney Channel-stars, the Jonas Brothers, and made history by being the first Korean act to get on the Billboard Hot 100. The following year, the group launched a 20-show tour in the United States.

2NE1 performs at the MTV Iggy’s Best New Band 2011 concert which was streamed live in Times Square, New York in December. (YG Entertainment)

Last month Wonder Girls launched the original soundtrack single, “The DJ is Mine,” for the TeenNick TV movie in which they star. The first episode of the movie aired last week.

Patrick St. Michel, a journalist who wrote an online piece, “Does Korean Pop Actually Have a Shot at Success in the U.S.?,” for American publication The Atlantic, thinks Wonder Girls is on the right track by “trying to woo one of the most profitable pop-music demographics, tweens and early teens.”

“Considering how fragmented the American pop market is, turning attention to the tween market is extremely smart,” St. Michel said in an e-mail interview.

“We see it as a demographic that is the least likely to have formed many biases,” a JYPE representative said on why Wonder Girls is targeting the tween demographic.“Also it is a market that really knows how to enjoy music and culture and avidly consumes pop music.”

Having started off by touring with loved-by-tween hotties, the Jonas Brothers, Wonder Girls is now targeting their market more aggressively with the eponymous TeenNick movie.

“From a tween/teen perspective, I think it would be a success,” said St. Michel of the movie.“The movie introduces the group, establishes personalities and loads up on song-and-dance scenes.”

“More importantly, it treated Wonder Girls like real protagonists,” he added.

In regards to Girls’ Generation’s U.S.-based activity, he said, “They got a big boost from landing on ‘The Late Show with David Letterman’ last week.”

Girls’ Generation’s U.S. debut single and talk show appearances are, in fact, part of a larger, carefully-planned promotional strategy focused on differentiating themselves from the crowd, according to S.M. Entertainment.

“From the very beginning we planned on carrying out a promotional strategy different from the norm,” said a company representative, emphasizing the successfully heightened awareness of the S.M. Entertainment brand through YouTube, Facebook and overseas concerts like those in Paris and New York,

“One can confirm the influential power of Girls’ Generation and of our strategy through the group’s appearances on major American television network talk shows,” said the representative.

Furthermore, according to the representative, in regards to Girls’ Generation, specifically, the group’s U.S. activity including signing with Interscope Records, is part of a bigger global plan that is primarily focused on Asia, not America.

“Not just for Girls’ Generation but for all S.M. Entertainment artists, the most important market is Asia.”

No doubt, Asia is a crucial market for Korean pop, which is why the unprecedented popularity of S.M. Entertainment artists in Europe made headline news last year.

Given that, one cannot ignore the possibility of K-pop catching on in a major way in America, and in St. Michel’s opinion it will not be so much about how Korean pop groups like 2NE1 and Girls’ Generation style themselves as it will be about the music.

“It will come down to how their English songs sound, whether they embrace the maximalist rush present in their Korean singles that has prompted all this media coverage in the first place or they bend to American trends.”

Friday, February 10, 2012

Ex-envoy to Cameroon summoned in CNK case

Prosecutors said Friday they summoned the former ambassador to Cameroon for questioning on whether he tried to cover up his name when sending an overblown report on the size of diamond reserves in a mine in the African country.

Lee Ho-sung is one of the key figures involved in allegations that senior government officials and CNK International, a resources mining company, engaged in insider trading to boost the stock price of the company, which won diamond-mining rights in Cameroon.

Earlier, independent lawmaker Jeong Tae-keun raised suspicions that Lee used his subordinate diplomat’s name in a diplomatic cable sent to the Foreign Ministry in 2010 that positively evaluated the reserves.

The cable was sent under the name of the first secretary of the embassy, who reportedly hesitated to write the wire because he believed the size of the diamond reserves lacked evidence.

Kim Eun-seok, then energy and resources envoy, led the Foreign Ministry to release a press release on CNK’s winning of the mining rights, based on the wire sent by Lee.

On Dec. 16, 2010, CNK’s joint venture C&K Mining won the bid to develop the diamond mine in Yokadouma in the southeast of the country. Because of the potential economic benefits to Korea, Seoul government officials, including former Vice Minister of Knowledge Economy Park Young-june, had helped the firm win the deal.

On Dec. 17, Seoul’s Foreign Ministry issued the press release, in which it said the mine held an estimated 420 million carats in diamonds. After the announcement, CNK’s stock price jumped fivefold in less than a month.

U.S. to begin full-scale probe into alleged dumping by Samsung, LG


WASHINGTON (Yonhap News) -- U.S. trade authorities on Friday announced a full-fledged investigation into allegations that major South Korean firms Samsung and LG have violated anti-dumping rules here.

"The U.S. International Trade Commission (ITC) has made affirmative determinations in its preliminary phase anti-dumping and countervailing duty investigations concerning certain large residential washers from Korea and Mexico," the agency said in a press release.

The move came after Whirlpool Corp., a Michigan-based home appliance maker, filed anti-dumping petitions regarding washing machines manufactured by Samsung and LG.

Whirlpool immediately welcomed the ITC decision.

"Whirlpool Corporation is pleased with the ITC's preliminary affirmative injury determination,” spokesperson Kristine Vernier said. “This decision by the ITC validates the actions we've taken to protect the U.S. domestic appliance industry, our 23,000 U.S. employees and the communities in which they work.”

Why is K-pop going to America?

Although Asia-centric, major entertainment companies seek to reap U.S. benefits


Since Girls’ Generation appeared in two major U.S. talk shows and Wonder Girls launched their TeenNick television movie, “The Wonder Girls,” last week, the buzz has been overwhelming.

Yet, underneath all the hype lies a question: Why is Korean pop looking to America?

“Insofar as America is the world’s biggest music market, we, as a company and for our artists, want to take it on,”said an S,M. Entertainment representative.

“If we succeed, it is a market which can earn us massive side benefits,” the representative explained via e-mail. A significant boost in the name value of a musician or group internationally once they achieve success in the U.S. market is an obvious example.

For YG Entertainment, the collaborative work with The Black Eyed Peas’ will.i.am on a forthcoming English album is not solely about broaching the U.S. market.

“We decided that we need (an official U.S. album) because English is the most effective language to convey the message of 2NE1’s music to overseas fans who want to understand it but who do not know Korean,” said YG Entertainment PR team leader Hwang Min-hee.

Right now, S.M. Entertainment’s Girls’ Generation and YG Entertainment’s 2NE1 are still in the fledging stages of entering the American market.

After releasing their U.S. debut single “The Boys” last December, the nine-member Girls’ Generation appeared on “The Late Show with David Letterman” and “LIVE! With Kelly Ripa” last week.

Meanwhile, 2NE1 started working with will.i.am in 2010 on an album whose release date has yet to be set.

JYPE’s Wonder Girls were the first Korean group to make foray into the United States in 2009, touring with Disney Channel-stars, the Jonas Brothers, and made history by being the first Korean act to get on the Billboard Hot 100. The following year, the group launched a 20-show tour in the United States.

2NE1 performs at the MTV Iggy’s Best New Band 2011 concert which was streamed live in Times Square, New York in December. (YG Entertainment)

Last month Wonder Girls launched the original soundtrack single, “The DJ is Mine,” for the TeenNick TV movie in which they star. The first episode of the movie aired last week.

Patrick St. Michel, a journalist who wrote an online piece, “Does Korean Pop Actually Have a Shot at Success in the U.S.?,” for American publication The Atlantic, thinks Wonder Girls is on the right track by “trying to woo one of the most profitable pop-music demographics, tweens and early teens.”

“Considering how fragmented the American pop market is, turning attention to the tween market is extremely smart,” St. Michel said in an e-mail interview.

“We see it as a demographic that is the least likely to have formed many biases,” a JYPE representative said on why Wonder Girls is targeting the tween demographic.“Also it is a market that really knows how to enjoy music and culture and avidly consumes pop music.”

Having started off by touring with loved-by-tween hotties, the Jonas Brothers, Wonder Girls is now targeting their market more aggressively with the eponymous TeenNick movie.

“From a tween/teen perspective, I think it would be a success,” said St. Michel of the movie.“The movie introduces the group, establishes personalities and loads up on song-and-dance scenes.”

“More importantly, it treated Wonder Girls like real protagonists,” he added.

In regards to Girls’ Generation’s U.S.-based activity, he said, “They got a big boost from landing on ‘The Late Show with David Letterman’ last week.”

Girls’ Generation’s U.S. debut single and talk show appearances are, in fact, part of a larger, carefully-planned promotional strategy focused on differentiating themselves from the crowd, according to S.M. Entertainment.

“From the very beginning we planned on carrying out a promotional strategy different from the norm,” said a company representative, emphasizing the successfully heightened awareness of the S.M. Entertainment brand through YouTube, Facebook and overseas concerts like those in Paris and New York,

“One can confirm the influential power of Girls’ Generation and of our strategy through the group’s appearances on major American television network talk shows,” said the representative.

Furthermore, according to the representative, in regards to Girls’ Generation, specifically, the group’s U.S. activity including signing with Interscope Records, is part of a bigger global plan that is primarily focused on Asia, not America.

“Not just for Girls’ Generation but for all S.M. Entertainment artists, the most important market is Asia.”

No doubt, Asia is a crucial market for Korean pop, which is why the unprecedented popularity of S.M. Entertainment artists in Europe made headline news last year.

Given that, one cannot ignore the possibility of K-pop catching on in a major way in America, and in St. Michel’s opinion it will not be so much about how Korean pop groups like 2NE1 and Girls’ Generation style themselves as it will be about the music.

“It will come down to how their English songs sound, whether they embrace the maximalist rush present in their Korean singles that has prompted all this media coverage in the first place or they bend to American trends.”

SK-Hynix eyeing chip supremacy


SK-Hynix eyeing chip supremacy

SK Group Chairman Chey Tae-won, center, inspects a product at SK-Hynix’s manufacturing facilities last month. / Korea Times

Chipmaker to boost investment in order to close gap with rival Samsung

By Kim Yoo-chul

Hynix Semiconductor has a new name but its goal remains the same: beating domestic rival Samsung Electronics in the battle for global supremacy in the chip market.

Recently renamed SK-Hynix after being acquired by the SK Group, it plans to significantly increase investment for designing and producing computer memory chips to close the gap with Samsung.

It can ill-afford to be complacent as company officials admit Samsung is at least ``six months advanced’’ in developing chips, not to mention its edge in manufacturing muscle.

Samsung is obviously keeping a close eye on its previously-troubled rival, now with the financial backing of the country’s biggest mobile phone carrier, SK Telecom, by ruthlessly expanding its manufacturing muscle, including the building of its first factories in China.

SK-Hynix sources say the company will be able to respond with big announcements of its own soon. SK Group Chairman Chey Tae-won has promised a big budget to strengthen capabilities in computer memory chips and also boost its position in next-generation segments of non-memory and high-margin products.

``SK Group is preparing a sizable budget for the chip-making business. Although we don’t have exact figures, we can say SK-Hynix’s annual investment will increase by at least 10 percent,’’ said Park Sang-hoon, president of SK Biopharmaceuticals.

``We will be able to justify our investment as a recovery is expected in global demand for electronic goods. We plan to strengthen our position in NAND flash type chips used in mobile devices like smartphones.’’

Park, along with SK Corporate Center President Kim Joon-ho, is leading an SK team of executives to streamline SK-Hynix into SK’s larger business lineup.

Park is managing issues related to manufacturing, research and development (R&D) and marketing, while Kim is the decision maker in finance and human resources.

Another SK source, who declined to be named, was more specific, saying that the group’s investment in semiconductors will be north of 5 trillion won, higher than the chipmaker’s initial plans of 4.2 trillion won.

``The goal for SK is to close the technology gap with Samsung as soon as possible. We are ready to make the necessary investment to do that and make chip-making a major profit engine for the group as quickly as we can, as we have been failing to achieve breakthroughs in global markets with other businesses,’’ said the SK official.

``Our strategy is simple: invest more in profitable non-memory chip segments with money made from memory chips.’’

Samsung controlled 45 percent of the global DRAM market by the end of the third quarter last year, compared to Hynix’s 22 percent.

Samsung’s share in NAND-type memory chips was 39.1 percent, compared to Hynix’s 12.2 percent, according to data from iSuppli.

The wave of consolidation sweeping the semiconductor industry this year, including talks of a three-way blend of U.S. firm Micron Technology, Japan’s Elpida Memory and Taiwan’s Nanya, will benefit the Korean market leaders by reducing competition and mitigating the overcapacity in DRAMs, according to industry sources.

``Good execution could favor Micron over time, but for now we think Samsung and Hynix would see significant shared benefits from less DRAM vendors and possible longer-term net reduction in overall DRAM industry capacity,’’ said Nicolas Gaudois, an UBS analyst.

Future path

It remains to be seen whether SK-Hynix’s efforts to strengthen in computer memory chips will be enough to secure it a lucrative future in this volatile segment. Hogging a larger part of the pie in non-memories is also a priority.

Unlike memory chips, which are basically used to read and store data, non-memory chips are used to control an entire computing system.

They often offer higher margins but have been a tough nut to crack for Korean chipmakers, as their strength continues to be more labor-intensive than technology-intensive.

``SK-Hynix will raise the revenue portion of non-memory chips to 4 percent this year from last year’s 2 percent. Hynix’s outdated M8 chip line will be transformed to produce custom-made chips on a contract basis,’’ said Park.

``By the end of 2015, SK’s chip unit will create 1 trillion won for non-memory chips alone.’’

Samsung Electronics is already supplying its mobile application processors (APs) ― a variant of non-memory chips ― to Apple’s iPhones and iPads via its plant in Austin, Texas.

It is also using its own Exynos-named mobile APs in its Galaxy devices with an aim to better compete with top-tier non-memory chipmakers such as Qualcomm and Texas Instruments, said Samsung officials.

Hynix’s profit structure has so far been cyclical upon market situations because it is mostly focused on memory chips.

SK is considering even transforming Hynix’s line in Wuxi, Jiangsu Province, to both produce both DRAM and NAND chips for a better product mix-up, though Park declined to confirm this. 

Vonage to pioneer unlimited calling in Korea


Vonage to pioneer unlimited calling in Korea
By Kim Yoo-chul

If you've been putting off calling your sister or brother in Canada or your European cousins due to fears of the higher cost of calling from your smartphone, a promotion from Vonage may pique your interest.

The U.S.-based Voice-over-Internet Protocol (VoIP) provider is giving away one free international phone call, at a maximum of 15 minutes, to anyone who downloads its new iPhone mobile application Time to Call, which is also free.

Not surprisingly, the promotion will cost the provider, however it seems evident that Vonage doesn’t care because it believes the market for international calls in Korea is a highly lucrative one considering explosive local demand for smartphones.

``South Korea is important for Vonage. It has a large, sophisticated user base with high smartphone penetration and significant outbound international calling needs,’’ said Marc Lefar, a chief executive from Vonage, in a recent interview with The Korea Times.

Time to Call, a stand-alone mobile application for the iPhone has so far been released in 87 countries.

The chief executive explained the service allows customers to purchase a call and talk for up to 15 minutes to landlines and handsets in 100 countries for $0.99 or $1.99, billed instantly through iTunes.

He stressed it is the easiest way to make low-cost international calls on the go.

Vonage has also been developing mobile applications for smartphones, Android-equipped ones as well as the iPhone that will simplify the calling process and even allow customers to dial from their contact list without entering the access number.

Korea, a nation of 48.6 million, has taken to smartphones relatively late, but has quickly caught up.

Since November 2009, Korea’s smartphone market has taken off, inspired by the then-unexpected iPhone fever.

This has pushed Samsung to migrate into software-focused handsets, bringing the Galaxy S smartphone into a market rivalry with Apple.

The number of smartphone users is expected to surpass 20 million by the end of the year, according to estimates from the nation’s top telecom regulator, with top-tier handset makers such as Samsung and LG Electronics promoting their Galaxy and Optimus brands aggressively.

Another good sign for Vonage and its interest for growth in Korea may be that Korea is now a top spot for Apple, meaning local Apple vendors such as SK Telecom and KT will release the iPhone 5 and iPad 3 at the same time as vendors in Apple’s most-trusted regions of the United States, Japan, Australia and the United Kingdom.

Lefar, a former chief marketing officer (CMO) at AT&T Mobility, said Vonage hopes the service and other forthcoming products could be successful in Korea.

When asked about financial details such as revenue and profit targets, the executive declined to comment. However, he added Vonage will try to claim a larger stake in the world’s most-wired country.

Challenging Skype

Vonage, which is also the biggest U.S. provider of telephone service over the Internet, has recently said it will let users of its home plans make calls with a second device, such as mobile phones.

And the plan is apparently Vonage’s updated strategy for competition with Skype. The Luxembourg-based service is Vonage’s biggest rival.

Skype, which was acquired by Microsoft, allows people to make free calls over the Internet to other Skype users and even offers cheaper calls to landlines.

As of the end of July, the number of Skype users had grown to over 3.5 million in Korea, evidence of Koreans’ steady appetite for low-cost international calls.

``Some mobile carriers have been experimenting with mobile VoIP to provide their own VoIP client offers to compete directly with Skype. But Vonage has one of the largest VoIP networks in the world, terminates a growing share of traffic on VoIP network and has significant expertise in this market,’’ said the executive.

Lefar said he’s aware of the ongoing so-called ``free-riding’’ controversies between mobile carriers and mobile VoIP service providers here.

But he stressed Vonage doesn’t believe that it is a free-rider, as consumers who’ve paid for a fixed-broadband connection and other data streams should have the freedom to use the services that they wish.

``Mobile VoIP on 3G- and 4G-based networks is still nascent, and quality of service varies greatly from carrier to carrier and from country to country. We expect to begin expanding our 3G and 4G services to other areas of the world, including Southeast Asia, as we do more testing.’’

After targeting home-focused users for many years, Vonage is shifting its primary target to mobile devices.

``Consumers want to have the freedom to make calls at great rates from their other connected devices. Approximately 40 percent of all international calls worldwide originate from a mobile phone and that’s why we think this was a good chance to extend our service to customers even in Korea.’’

Vonage, which went public in 2006 at $17 a share in the New York Stock Exchange (NYSE), has seen an 80-percent rise in its stocks so far this year.

Lee’s aide offers to resign over vote-buying scandal


Lee’s aide offers to resign over vote-buying scandal

Kim Hyo-jae
By Park Si-soo

A senior presidential secretary offered to resign Friday, holding himself responsible for a vote-buying scandal that is rocking the ruling Saenuri Party ahead of the April 11 general election.

Kim Hyo-jae, senior presidential secretary for political affairs, tendered his resignation to President Lee Myung-bak, according to Cheong Wa Dae. President Lee is expected to accept it after returning Saturday from a trip to four Arab nations.

“I’m sorry for causing concern to the public,” presidential spokesman Park Jeong-ha quoted Kim as saying. “I will take full political responsibility.”

His resignation came one day after National Assembly Speaker Park Hee-tae resigned from the post claiming responsibility for the cash-for-votes scandal which allegedly took place during the 2008 leadership race of the then ruling Grand National Party (GNP). Park won the race. Kim was the policy monitoring chief for Park’s election camp before being appointed senior presidential secretary last year.

Kim has been beleaguered by suspicions his former aide delivered envelopes of cash to some GNP lawmakers before the party’s convention in July 2008 to seek their votes to make Park GNP leader.

Both Park and Kim have denied their involvement in the scandal.

The two are expected to be questioned by the prosecution in the days to come. Prosecutors have reportedly obtained hard evidence and testimony backing their involvement.

The scandal erupted in early January after Rep. Koh Seung-duk divulged that he was offered a cash envelop from Park’s campaign officer before the party convention.

The incident led the ruling party to launch an emergency committee, which is now pushing forward a set of reform measures to make it transparent and restore public confidence.

Japan’s sovereign risks on par with Korea’s


Japan’s sovereign risks on par with Korea’s
By Kim Tae-gyu

Japan’s sovereign credibility has deteriorated to the level of Korea’s in the aftermath of news that the former suffered a trade deficit last year for the first time since 1980.

The Korea Center for International Finance (KCIF) presented a report Friday that showed Japan’s credit default swap (CDS) premium for its treasury bonds amounted to 138 basis points as of last month, just 12 basis points lower than Korea’s.

The CDS premium measures the credit risks of specific countries or companies. The bigger the figure, the riskier their future.

``The difference of the CDS premium between Korea and Japan was pretty big at 73 basis points in September. But the gap continued to head down to 35 basis points in October and 18 basis points in December,’’ a KCIF official said.

``Last year’s natural disasters, trade deficit and the resultant woes on the possible downgrade of Japan’s credit rating seem to have combined to prompt the difference to shrink.’’

A devastating earthquake damaged exports of the world’s third-largest economy last March while jacking up its dependence on crude oil imports due to shutdowns of the nuclear plants in Fukushima.

Accordingly, the export-driven economy jacked up trade deficits for the third consecutive month last December to see its annual shortfall record 2.49 trillion yen (around $32 billion).

Its current account balance, which includes flows of not only merchandise but also services and capital, posted a surplus of just 9.63 trillion won ($125 billion) in 2011, down 44 percent from a year ago and a 15-year low.

``Japan’s sovereign debt is about twice its national output, which is way too much. In this climate, its outbound shipments, or the pillar underpinning the economy, is showing signs of being shaken,’’ a Seoul analyst said.

``If the yen remains strong and its exports do not rebound in the near future, it might suffer from a downgrade in its credit rating. Then, its CDS premium might surge beyond that of Korea’s.’’

International ratings companies such as Standard & Poor’s and Fitch Ratings have warned of a possible rating downgrade.

Some analysts predict that the downgrade could take place this month at the earliest.

``Because the yen has appreciated against other currencies, the country has lost price competitiveness and things are not likely to improve soon,’’ the analyst said.

Assembly speaker quits over vote buying


Assembly speaker quits over vote buying

Rep. Park Hee-tae leaves his office in Seoul after resigning as National Assembly speaker, Thursday. / Yonhap
Prosecutors to summon presidential aide next week

By Chung Min-uck

National Assembly Speaker Park Hee-tae resigned Thursday taking responsibility for a cash-for-votes scandal during the 2008 leadership race of the then governing Grand National Party, now renamed the Saenuri Party. The former party chairman’s two-year term as Assembly speaker was to end in May.

“I apologize to the people. I decided to step down from the post as speaker holding myself responsible for the matter,” said Park in a statement read by his spokesman Han Jong-tae at the National Assembly. “I will bear everything by myself. I will take full responsibility.”

The announcement came after Park’s former secretary Koh Myung-jin confessed he received money returned by Rep. Koh Seung-duk prior to the party’s leadership election on July 3, 2008. Park’s former aide said he reported it to Kim Hyo-jae, current senior secretary for political affairs to President Lee Myung-bak. Kim was chief campaign manager for Park at the time. According to Seoul Central Prosecutors’ Office, the former secretary also confessed that Kim got angry after being told about the returned money. Kim allegedly ordered him not to reveal the truth during the on-going prosecution investigation.

Following the testimony, prosecutors plan to summon Kim and Park next week for questioning about the case.

The scandal erupted in early January after Koh revealed he was offered an envelope containing 3 million won ($2,685) from Park’s campaign office before the ruling party’s leadership race. Later, he alleged that other party members could have been bribed as well since one of his staff members saw many similar envelopes inside a shopping bag when the incident took place.

Analysts say the widening investigation into the cash-for-votes scandal will deal a severe blow to the ruling party ahead of the April 11 general election as the opposition parties will capitalize on the case.

“Park’s resignation came too late,” said Rep. Park Young-sun, a member of the main opposition Democratic United Party’s (DUP) decision-making Supreme Council. “Kim Hyo-jae should also resign.”

“If the prosecutors don’t find out the truth behind the case involving the Lee administration we will do it ourselves,” said Han Myeong-sook, chairwoman of the DUP.

Concerning the Assembly speaker’s resignation, Rep. Park Geun-hye of the Saenuri Party was quoted as saying, “The resignation came a little late but I am glad that he made the difficult decision.” 

Koreans negative on opposition’s KORUS FTA move


Koreans negative on opposition’s KORUS FTA move
‘New campaign tool to woo voters’

By Park Si-soo

What’s your take on the threat to scrap the country’s free trade agreement with the U.S. (KORUS FTA) by opposition political parties?

As is the case within the political circle, the general public is sharply divided over the matter, with the done deal set to go into effect later this month.

Those opposing the deal claim the KORUS FTA serves American interests and could devastate the lives of ordinary Koreans. They said breaking the deal to prevent any negative impacts was desirable.

In contrast, proponents of the accord criticize lawmakers of the main opposition Democratic United Party (DUP) and the Unified Progressive Party (UPP) for misleading the public with an “unrealistic” plan, which if materialized would cause irrevocable damage to the Seoul-Washington alliance. They also called the move “self-contradictory,” citing the fact that some lawmakers against the implementation of the agreement were directly involved in negotiating the trade deal with the U.S. under the presidency of the late Roh Moo-hyun.

The dispute surfaced only two months ahead of the April 11 general election, spawning speculation that it is to prompt anti-American sentiment to help the opposition solidify their support base, particularly among liberal-minded citizens.

The Korea Times interviewed randomly-selected citizens on the issue Friday and learned that both sides have their own logic, showing little room for compromise.

It appeared that those critical of the DUP’s move outnumbered supporters, although no survey of citizens on the issue has been conducted.

“It’s very contradictory that those who were once avid supporters of the KORUS FTA have suddenly become strong opponents,” said Lee Hwahn-choon. “I don’t see the opposition party’s real intention to nullify the deal. I see this move as a campaign tool to woo voters with the general election only two months away.”

The 38-year-old office worker said if the opposition parties are serious about scrapping the deal, they should let people know how they will cope with its foreseeable consequences ― devastated ties with the U.S.

“For now, I don’t see any measures to deal with the aftermath,” Lee said.

Kim Bum-joon, another middle-class worker in his early 40s, was also skeptical of the move.

“I absolutely object to the move,” Kim said. “The FTA negotiation with the U.S. started during the previous Roh Moo-hyun administration, when lawmakers opposing it were in power. Their collective opposition is obviously politically motivated to gain additional political leverage over the ruling camp.”

Agora, a main online discussion website, was flooded with messages against the move to scrap the FTA.

“Opposition parties listed 10 clauses they want renegotiated. But nine of them were mutually agreed upon during the Roh administration. How contradictory!” a message read. Many other messages echoed the view.

Han Myeong-sook, DUP chairwoman, called the 10 clauses “toxic,” saying this “humiliating, unpatriotic deal is impoverishing our people” at a Wednesday press conference. Han served as prime minister during the Roh administration.

Meanwhile, the U.S. government reaffirmed Thursday that it remains firmly on track to implement the FTA as early as possible despite a fierce backlash from Korea’s opposition parties.

“We believe that the U.S.-Korea free trade agreement is in the interest of the United States, of the Republic of Korea, and of the relationship between our two countries,” a State Department official told Yonhap News Agency. “The U.S.-Korea free trade agreement represents a historic opportunity to increase exports, support job creation, bolster both our economies, and strengthen a vital strategic alliance in the Asia-Pacific.”

The comments were the first official response to letters by the country’s two opposition parties, the DUP and UPP, to President Barack Obama requesting a renegotiation of the FTA, which they now claim is unfair to Seoul.

Earlier this week, the DUP announced that it would seek the nullification of the KORUS FTA if it wins the April general election and the December presidential contest.

Following a joint protest rally with a minor progressive party, the DUP delivered three letters signed by 96 lawmakers from both parties to the U.S. Embassy in Seoul for President Obama, Vice President Joe Biden and John Boehner, speaker of the House of Representatives.

“We would support a trade deal between our countries that would genuinely help to raise the living standards of the people, promote economic growth and stability, create new employment opportunities, and improve the general welfare,” the letters said. “However, the existing provisions of the KORUS FTA are far from meeting such purposes partly because of flaws in specific clauses.”

Recent voter surveys showed the DUP beating the ruling Saenuri Party in the April election. It is also seeking to win the presidency currently held by the conservatives in the December election.

Civic groups back activist retweeting 'pro-NK' messages


Civic groups back activist retweeting 'pro-NK' messages

Civic group members demand the government release Park Jeong-keun, who was arrested on charges of re-tweeting “pro-North Korean” messages, at a press briefing in Seoul, Friday. / Yonhap

By Kim Rahn

Twenty-three progressive groups have formed a committee calling for the release of a man arrested for reposting dozens of pro-North Korean messages via his Twitter account.

Members of the groups said Friday the arrest of Park Jeong-keun, 23, was an anachronistic measure, claiming the government mistook his parodies and jokes about former North Korean leader Kim Jong-il as praise for him.

Park, a photo studio operator, was indicted on charges of violating the National Security Law by retweeting about 100 messages posted on North Korea’s propaganda Twitter account, “Uriminjokkiri.”

“Park’s case showed how the law can be misused to suppress an individual’s political belief and the freedom of expression. This comedic incident shows the government’s rigid attitude toward satire,” a member of the Socialist Party said in a media briefing in central Seoul.

Park is an activist of the party.

The participating groups include Amnesty International Korea, the People’s Solidarity for Participatory Democracy, the Korea Alliance of Progressive Movements and Lawyers for a Democratic Society.

They said it is true Park posted many tweets regarding North Korea. “But his postings include a photo in which one of Park’s friends poses like a nude model in front of the former North Korean leader’s picture, and a painting in which a soldier’s smiling face on the North’s propaganda poster is changed into a tearful face. These were made to satirize the North Korean regime.”

Park used phrases like “Long live Kim Jong-il,” but they were also ironic expressions to criticize the North, they said.

“He is a member of the Socialist Party. This also shows he didn’t mean to praise North Korea because the party openly opposes North Korea’s Workers’ Party and criticized the country’s hereditary power succession over three generations,” the party member said.

The committee also applied for bail for park, and will hold a one-man rally in relays to call for his release and the abolishment of the National Security Law.

Park’s case is gaining international attention. Amnesty International recently issued a statement calling for his release. 

Judge critical of President stripped of job


Judge critical of President stripped of job

Seo Gi-ho
By Kim Rahn

A liberal-minded judge, who tweeted messages ridiculing President Lee Myung-bak, has not been reappointed.

The Supreme Court said Friday that its personnel management screening committee decided not to reappoint Judge Seo Gi-ho to the Seoul Northern District Court after “reviewing” his performance.

Its decision came after Seo criticized the court and the government’s move to regulate judges’ use of social networking services (SNS), claiming it was a restriction on the freedom of expression.

“The government, please monitor my tweets thoroughly. Don’t be intimidated, my fellow SNS friends. Or gakha (his highness, indicating Lee) will give you a big yeot (taffy),” he said on his Twitter and Facebook accounts in December. “Give you a big yeot” is slang for big insult.”

The top court said Seo has shown poor performance, however, he and his supporters claim it was a retaliatory move against the 42-year-old for openly criticizing the Lee administration.

Judges’ performances are evaluated every 10 years. The committee decided that among 180 judges with 10 or 20 years experience, about five, including Seo, were “unqualified” to remain presiding in courts. Those categorized as “unqualified” usually quit voluntarily.

But Seo criticized its assessment of his performances.

“Recalling my career of 10 years, I don’t think I was too bad to continue my duties. My performance rating is not that poor. The committee should present detailed reasons for the disqualification,” Seo said.

He said he will take legal action, such as petitioning the Constitutional Court, to regain his post.

Earlier last month, the committee told Seo that he was in the “unqualified category” as his rating was in the bottom 2 percent. It said he was rated “low” five times during the 10 years.

Responding to the move, he disclosed his performance rating record, which the committee sent him on the court’s Intranet. According to the records, he had 628 new cases in 2010 and made rulings on 670 cases including cases rolled over from the previous year — a higher performance than the national average.

About 93 percent of his cases closed without appeals, also higher than the average. His 2011 performance was slightly lower than the national average.

“The evaluation should not be used to ‘train’ judges, making them voluntarily resign or refrain from expressing opinions critical of the government or the judiciary. Outside pressure on the evaluation will make judges avoid speaking their opinion for the court’s improvement,” Seo said on the Intranet.

He also said the evaluation was carried out unfairly and behind closed doors, adding the process should be transparent, fair and reasonable.

Seo’s supporters claim the disqualification came because he has been critical of the Lee administration and made comments against high-ranking judges.

In 2009 when it was found that then Supreme Court Justice Shin Young-chul attempted to meddle in junior judges’ trials on anti-U.S. beef import ralliers, Seo led junior judges’ collective action calling for Shin’s resignation. Since that year, Seo’s rating was “low” for three consecutive years

Thursday, February 9, 2012

Pilots face random cockpit inspections


Pilots face random cockpit inspections
By Lee Hyo-sik

The government has decided to conduct unscheduled inspections of pilots to more effectively check whether they comply with flight operation and safety regulations while navigating aircraft.

The move comes as pilots have been caught drinking alcohol in cockpits or engaging in other unprofessional conduct. Industry watchers say some aviators often fail to follow flight manuals or abide by safety rules.

However, pilots have shown a lukewarm response toward the government’s latest move, arguing they place top priority on ensuring the safety of airplanes and passengers. They claim the planned random inspection would not achieve its intended goal and only hinder them from performing their duties.

The Ministry of Land, Transport and Maritime Affairs said Thursday that it has carried out unannounced inspections of pilots at the country’s seven airlines — two national flagship carriers and five low-cost carriers — since January.

It said nine aviation safety inspectors have and will randomly board both cargo and commercial aircraft to observe how pilots operate.

“In the past, inspectors had to notify airlines of inspection schedules in advance to check on pilots. So, it was almost impossible to accurately monitor whether they followed flight manuals and abided by safety rules,” said Chang Man-heui, director of the ministry’s aviation safety division. “But nine of our inspectors obtained a special permit from the Ministry of Justice in January, empowering them to enter a cockpit at anytime, just like pilots and flight attendants.”

Chang said the inspectors have been closely examining whether pilots are drunk or not before boarding an airplane, adding three pilots under the influence of alcohol were stopped from operating a plane over the past year.

In June last year, a drunken Eastar Jet pilot was stopped from boarding an aircraft at Gimpo International Airport. The plane was bound for Jeju but due to the incident, it was delayed by more than an hour, with the budget carrier scrambling to find a substitute pilot. The ministry suspended the pilot’s license and imposed fines on the company.

A month earlier, an Asiana Airlines pilot under the influence of alcohol was also caught by inspectors before boarding a plane. In October 2010, a Korean Air pilot was suspended from his duties for drinking before a flight.

“Inspectors can check pilots before they board a plane. But it is not as easy to monitor what pilots do in the cockpit. We think it is necessary to send our personnel into cockpits and examine how they perform their job,” the director said. “Pilots should remain vigilant at all times to ensure flight safety.”

Chang said inspectors looked into three low-cost carries during the Lunar New Year holiday, adding they will soon board both cargo and commercial airlines operated by Korean Air and Asiana Airlines.

“We will compile what inspectors have found by the end of this year and make the findings public. We are positive that the strengthened monitoring of pilots will boost flight safety,” he said.

Pilots are raising doubts about the effectiveness of such measures, insisting it will not help flight safety.

“Aviators need to pay full attention to flight operation. But if an inspector is in the cockpit observing our behavior, we will surely be distracted,” Korean Air pilot Lee Kyu-nam said. He was a former vice president of the Korean Air Flight Crew Union. “But the bottom line is that inspectors have the right to do what they have to do. We respect that. But what I am trying to say is having them in the cockpit does not help improve flight operation and safety.”

Lee then said the government should also pay more attention to the plight of aviators. “We are always tired from flying long hours. We should be given enough break time to become operational again. The government should make more efforts to improve our welfare. This is a more effective way to ensure flight safety.”

Is chaebol reform sustainable or political gimmick?


Is chaebol reform sustainable or political gimmick?

Supporters of the Unified Progressive Party hold a rally at the KINTEX convention hall in Goyang, Gyeonggi Province, Sunday, calling for stronger regulations governing the activities of chaebol, Korea’s family-owned conglomerates. / Yonhap

In election year, parties playing voter-pleasing old tricks and they appear to be working

By Kim Tong-hyung

Korea as a society has become a striking example of Darwinism, where the wealthiest people and companies hog the economic pie like fat kids at a bakery sale.

The rapid enrichment of those at the top in recent years raises serious questions about the feasibility of social mobility in the country and feeds the public’s resentment for big businesses that politicians are desperate to exploit as elections near.

In a nation where many still cringe at the sights and sounds of socialism, it’s interesting to see lawmakers, both in liberal and conservative camps, competing to throw out new ideas to restrain chaebol’s consolidation of economic power.

The plans, which include tax rearrangements and reviving restrictions on corporate equity investment, are precisely the type of proposals their authors might have denounced as anti-business sentiment in any other year.

However, with the parliamentary and presidential polls just months away, massaging the public’s ego is now the top priority for political parties, which are upping verbal attacks on industrial cartels like Samsung and Hyundai in attempting to galvanize voters.

The corporate behemoths, while clearly frustrated by the verbal abuse, seem determined not to step on any toes. Samsung, Hyundai, and LG have all announced their plans to retire bakeries and other small food stores operated by the daughters and granddaughters of their founding families, following fierce criticism that they are encroaching on business territory traditionally occupied by small vendors.

In truth, shutting down a few dozen cake shops doesn’t come close to qualifying as reform.

``The problem is that Korea for too long has been run by governments that act and talk as if the Great Depression of the 1920s never happened, allowing this inequality to grow while talking about a trickle-down effect that never materialized,’’ said a Seoul-based economist.

``Chaebol reform should be more than just a campaign pledge as the health of the overall economy is at stake. Despite the conglomerates piling up record profit and cash, it’s becoming harder to motivate them to use the money to invest. While government officials have been placing all the eggs in the baskets of a very few corporate heavyweights, they should think harder about what the United States did in the early 20th century to break up monopolies across markets to jolt economic growth.’’

The most controversial corporate reform plan currently debated in the political arena is reintroducing restrictions on corporate equity investment, which were retired by President Lee Myung-bak in 2009 to encourage companies to invest more and create quality jobs.

The move clearly didn’t work as prescribed as chaebol families used the freedom to set up their own companies and allow their children to make easy money leaching off group affiliates. Now, lawmakers from the opposition Democratic United Party (DUP) are pushing to restore the equity investment ceiling, banning top-10 business groups from investing in other companies in excess of 40 percent of their net worth.

The ruling Saenuri Party, or the artists formerly known as the Grand National Party (GNP), is against reviving restrictions on equity investment, but is calling for stronger competition laws to restore a sense of parity in the business sector.

The parties are also discussing raising corporate tax rates, strengthening consumer protection on financial products and even empowering unionists to recommend directors on the boards of their companies.

Regardless of which party wins the presidential election, one can expect there will be changes in the way the government governs chaebol and that the changes could be more than cosmetic.

While some would downplay the current discussions as typical chaebol bashing in an election year, it’s hard to deny that there is increasing recognition in the public that what’s good for the business of companies like Samsung isn’t always good for the rest of the economy.

Even as Korea’s growth in gross domestic product (GDP) has pulled back sharply in recent years, the country’s leading business groups have been setting record after record in profits. Despite sitting on historic piles of cash, the companies have used only a tiny proportion of this sum on productive investment, which is the beef of politicians now.

There’s no denying that inequality is one of the biggest issues facing the country as it poses a serious threat to its economic future.
According to data from the Fair Trade Commission (FTC) and the National Tax Service, assets held by the country’s top 30 business groups nearly tripled over the past decade, as the firms successfully exploited weakened competition following the late-1990s economic crisis and leveraged their domestic dominance in global markets.

The top 30 conglomerates held a combined 1,164.4 trillion won (about $1.04 trillion) in assets in 2010, compared with 437.86 trillion won measured in 2001, while the number of subsidiaries they control jumped from 624 to 1,087 in the same period.

The combined market capitalization of the 90 listed firms controlled by the top 10 business groups was measured at 648 trillion won last year, which accounted for nearly 53 percent of the value of the local stock market.

Critics say the widening chasm between the wealthiest firms and the rest indicates the country’s glaring ineptitude in sustaining healthy competition across markets, a problem that has been exposed by the recent downturn.

Korea’s biggest firms have faced little or no regulatory resistance in taking over key business segments merely by brute strength and the compromised vibrancy in domestic markets is a grave concern for a country that needs another growth engine beyond exports.

It’s hard to imagine advanced nations like the United States or those in Europe ever allowing one carmaker to build up an 80 percent market share and raise prices on new vehicles whenever it wants, just as Hyundai is doing here.

Also unthinkable in Western economies would be a mega-sized conglomerate blocking its hundreds of thousands of employees from forming labor unions, while its founding family designs a complicated ownership scheme to control corporate wealth like personal assets, a description that defines Samsung.

The government’s extremely long leash for chaebol has often come at the cost of consumer interest. While the FTC detected over 3,500 cases of price-fixing in 2010, only 66 led to fines and the average penalty amounted to just 2.3 percent of the unfairly earned revenue.

Just last month, Samsung and LG were exposed for fixing the prices of laptop computers and flat-screen televisions in 2008 and 2009, the third time in the past two years the local technology giants have been caught for collusion. Samsung was hit with a 25.8 billion fine, while LG’s 18.9 billion won fine is to be waived due to a leniency clause.

Since recovering from late-1990s financial meltdown, Korea has had a succession of leaders in Kim Dae-jung, Roh Moo-hyun and Lee, whose export-supportive economic policies have consistently favored big corporations. Inequality, the inevitable result of this approach, was considered as something that should be tolerated as the cost of national prosperity.

The strengthening argument is that this polarization has hurt the country’s long-term growth potential and made it more vulnerable to financial downturns like the current one, where exports take a dip from worsening global conditions.

Unequal enrichment among corporations is a problem that is closely connected to issues related to the widening gaps among households which, except for the financial elite, have been struggling mightily to combat historically high levels of indebtedness, stagnant wages and crippling unemployment.

The chasm between the very rich and the rest has taken the life out of consumption, severing an important recovery route for the economy as it attempts to navigate out of the current crisis.

It’s critical that Korea finds a way to boost income more broadly. And this can only be achieved by inspiring entrepreneurship and fostering small- and medium-sized businesses, which would go a long way in leveling the wealth across families, firms and industries.

This would require a dramatic departure from the current environment, where chaebol routinely poach the ideas and staff of start-ups and ruthlessly squeeze the smaller firms that supply them. 

Discount stores face forced closures


Discount stores face forced closures

Cho Ji-hoon, chairman of the Jeonju City Council, stages a protest near an E-Mart outlet in the city, North Jeolla Province, to call for regular closed days at discount stores, in this file photo from last year. The city recently revised an ordinance to have such stores close twice a month. Seoul City is to follow the move. / Korea Times

Once or twice monthly shutdown to be implemented in Seoul

By Kim Rahn

Major discount stores in Seoul will have to close at least once or twice a month from as early as next month in line with the revision of a related law.

Seoul Metropolitan Government (SMG) said Thursday that the forced closure is aimed at boosting businesses for smaller mom-and-pop stores and traditional markets, which have lost customers to the retail giants.

It said that last month it ordered 25 district offices to prepare for ordinance revisions to enforce regular closed days at discount stores.

Seoul is one of several cities and counties complying with the revision of the Distribution Industry Development Law, designed to protect mom-and-pop stores and traditional markets. It has drawn a backlash from discount store operators.

“We ordered each district to investigate the actual conditions of large-scale operations. The Ministry of Knowledge Economy in charge of the law will announce a standard soon and the districts will then finalize revisions to their ordinances,” a city official said.

According to the revised law, local authorities can order discount stores and “super supermarkets” (SSM) to shut their doors up to twice per month, and stores in violation will be fined 30 million won. According to the law, SMG cannot solely enforce the ordinance, so it is making its districts do so.

“Each district will devise independent guidelines on how many times per month and which day of the week the stores will be forced to close. When to implement the closure will also differ from district to district, as each of their councils has different schedules,” the official said.

The city expects some districts to start the measure as early as March.

In Seoul, 64 discount stores and 267 “SSMs” are subject to the revision. SMG is reviewing whether to include Hanaro Club, a national retailer run by the National Agricultural Cooperative Federation, in the regulation.

“Legally, a branch of Hanaro Club is exempt from the regulation when more than 51 percent of its sales come from the selling of agricultural and livestock products. So, the ward offices will inspect the sales of the stores in their districts and decide whether to include them or not,” the official said.

He said most of the 25 districts are likely to comply. “Because the law stipulates each local authority ‘can’ and not ‘should’ order a regular closed day, it is possible for a district to disregard the revision. But we are encouraging all of them to follow it.”

The move is expanding across the country. Jeonju was the first to adopt the rule Tuesday — the city’s discount outlets and SSMs will close every second and fourth Sundays. Other local authorities such as Wonju, Gangneung, Jinju, Iksan, Busan, Mokpo and Gwangju are also complying.

Discount outlet operators oppose the measure — the Korea Chainstores’ Association is considering filing a petition with the Constitutional Court to review the law and related ordinances.

“The forcible closure infringes on operators’ freedom to conduct business and consumers’ right to shop. It is also unfair because televised home shopping programs and Internet shopping malls operate 24 hours a day, 365 days a year,” an official of the association said.  

U.S. faces S&P downgrade again if no budget plan, Chambers says

The U.S., lacking a plan to contain $1 trillion deficits, faces the prospect of another rating cut in six to 24 months depending on the outcome of November elections, according to John Chambers of Standard & Poor’s.

America has had an “AA+” rating with a negative outlook since Aug. 5 when the New York-based unit of McGraw-Hill Cos. stripped the nation of its “AAA” ranking for the first time, citing the government’s failure to agree on a path to reduce deficits. The U.S. has a one-in-three chance of another downgrade, Chamber said Wednesday during an S&P sponsored Webcast.

“What the U.S. needs is not so much a short-term fiscal tightening, but it has to have a credible medium-term fiscal plan,” said Chambers, managing director of sovereign ratings. “That is going to have to say something about entitlements, and that is probably going to have to say something about revenues.”

Bond investors ignored the downgrade, driving Treasury yields to the lowest levels in history, amid concern the U.S. economy was stalling and as Europe’s debt crisis intensified.

Treasuries have returned 3.9 percent since the rating cut and gained 9.8 percent last year, the debt’s best performance since 2008, according to Bank of America Merrill Lynch index data.

“I don’t think anything is going to happen between now and the election in November,” Chambers said.

S&P said in August that political brinkmanship over increasing the government’s debt ceiling year showed the U.S. is becoming “less stable, less effective and less predictable” as the Treasury almost reached its borrowing limit before the government reached a compromise.

The “political brinkmanship hasn’t gone away,” Chambers said today. “That simply doesn’t happen in other ‘AAA’ economies.”

Korean Buddhist temple food to go global

Buddhist group to open temple food restaurant in Paris next year

A Korean Buddhist group will soon bring temple food to the world as a part of its effort to introduce the 1,700 years of Korean Buddhist culture abroad.

“Korean Buddhist temple foods have been drawing attention from the health-conscious in North America and Europe,” Ven. Jihyun, director of Cultural Corps of Korean Buddhism, an affiliate of Jogye Order of Korean Buddhism, told The Korea Herald on Tuesday.

“We will seek ways of both modernizing the recipes and also preserving the traditional style of temple food before entering the market next year.”

The group plans to open the first temple food restaurant on the rooftop at Galeries Lafayette in Paris next year.

“We will build a ‘hanok’ (traditional Korean house) on the rooftop of the well-known department store in Paris and will start to serve temple food there probably next year. The project has been suggested by Lafayette, which is trying to capture the growing number of Parisians interested in nutritious vegetarian food,” Jihyun said.

A joint venture between the cultural arm of the Jogye and Galeries Lafayette, the restaurant was initially planned to open in May this year. But due to some administrative delays, the plan has been postponed to next year, he said.

The temple food project will be taken to other countries too. The religious group will hold a seminar on temple food in the U.S. and also participate in ITV, an international tourism exhibition in Germany this year.

To better develop temple cuisine, a team is working on collecting recipes that monks across the country have kept for hundreds of years.

“It is a tremendous work. But I think it is something that has to be done in order to bring temple food, one of the greatest assets of Korean Buddhist culture, to the world,” he said.

Ven. Jihyun, director of Cultural Corps of Korean Buddhism, an affiliate of the Jogye Order of Korean Buddhism ( Park Hae-mook/The Korea Herald)

Temple food can be best described as food that Buddhist monks eat. Comprised mostly of wild vegetables, roots and husks of trees cultivated in mountainous regions, seasonings are used sparingly to enhance the original taste and flavor of the main ingredients.

Finding the right ingredients for temple food overseas could be a problem.

“We will seek ways to modernize or localize temple food for Europeans. We will probably send the main seasonings made here to Paris, but the rest of the ingredients will be from local markets,” Jihyun explained.

The temple food project is the latest project to promote Korean Buddhist culture. The Jogye Order has been running Templestay, a cultural program that allows people to stay in mountainside temples and participate in Zen meditation, early-morning chanting and daily chores, since 2002.

“The Templestay program has been praised by the foreign press as a good example of a theme-based tourist attraction. It is a cultural experience program designed to help visitors better understand Buddhism in Korea and it has also contributed to enhancing Korea’s image abroad,” he said.

The number of temples offering Templestay programs across the country has surged from 33 in 2002 to 118 last year. About 1.7 million people have participated in the program so far. In 2011 alone about 190,000 people, including 25,000 foreign travelers, joined the program, officials at the group said.

To celebrate the 10th anniversary, the Buddhist group will hold a series of events from May to October. It plans to focus on developing programs to embrace those having difficulties in marriage, family issues and society as a whole.

“Templestay offers people a chance to look into themselves and helps them to build a life of their own by having a moment of meditation in the beautiful temples across the country,” the director said. “Through Templestay program, we will keep listening to people and help them to heal their wounded soul and body.”

FBI releases background check file on Steve Jobs

The U.S. Federal Bureau of Investigation on Thursday released a 191-page file on Steve Jobs that paints an occasionally unflattering portrait of the late Apple founder.


Steve Jobs (AP-Yonhap News)


The report was compiled during a 1991 background investigation of Jobs by the FBI after former president George H.W. Bush recommended his appointment to the President’s Export Council.

It consists of interviews with co-workers, friends, family members and even neighbors of Jobs, who died on October 5 of pancreatic cancer at the age of 56.

The names of the persons interviewed by the FBI have been redacted from the file released following a Freedom of Information Act request by The Wall Street Journal although their places of employment are frequently identified.

The FBI also interviewed Jobs for the background check -- after first being told he would be unavailable for three weeks and could only spare an hour.

Jobs told the FBI he had not used any illegal drugs during the past five years but he had experimented with marijuana, hashish and LSD between 1970-74 while in high school and college.

The report notes that Jobs had been involved in several lawsuits as chief executive of Apple but had never been arrested and was not a member of the communist party.

Jobs, who had left Apple at the time of the background check and was head of NeXT Computer, was described by some of those interviewed as “strongwilled, stubborn, hardworking and driven,” the report said, even a “genius.”

“They further stated, however that Mr. Jobs possesses integrity as long as he gets his way,” the report said.

“Several individuals questioned Mr. Jobs’ honesty stating that Mr. Jobs will twist the truth and distort reality in order to achieve his goals,” it said.

“Appointee is very truthful and straightforwards with people and usually says exactly what he is thinking,” it added.

The report also delved into Jobs’s relationship with his former girlfriend and their daughter.

“In the past, Mr. Jobs was not supportive of (the mother of his child born out of wedlock) and their daughter: however, recently has become more supportive,” it said.

Jobs, in a recent authorized biography by Walter Isaacson, acknowledged both his drug use and that he had not initially been close to his daughter.

One woman interviewed by the FBI said Job’s personal life was “lacking due to his narcissism and shallowness” but he has “far reaching vision.”

“She also stated that his success at Apple... also caused him at times to lose sight of honesty and integrity and even caused him to distort the truth at times to get his way,” the report said.

Another person said Jobs “had undergone a change in philosophy by participating in eastern and/or Indian mysticism and religion.

“This change apparently influenced the Appointee’s personal life for the better,” the FBI said. “The Appointee lives more of a spartanlike and at times even monastic existence.”

While some of those interviewed had reservations about Jobs’s character, all of them said they would recommend him for a “position of trust and confidence with the U.S. government.”

Along with the background check file, the FBI released the report of its investigation into a February 1985 bomb threat against Apple in which an unidentified caller demanded $1 million.

No bombs were ever found and no money changed hands. (AFP)

Assembly approves bill on DDoS special counsel

Also passes media rep bill, rejects Constitutional Court justice nomination


The National Assembly on Thursday passed a bill calling for a special counsel to probe allegations that high-ranking ruling party officials were involved in a hacking scandal during the October by-elections.

It also passed the long-disputed broadcasting advertisement brokerage bill, referred to as the media rep bill.

The nomination of new Constitutional Court justice Cho Yong-whan, however, was voted down.

The individual counsel law, initiated by the opposition members and approved by 183 among 201 lawmakers present, aims to find out whether ruling party members or presidential officials were involved in the cyber attack scandal.

With the passage of the bill, President Lee Myung-bak is to name a leading special counsel and three assistants who will lead the investigation within 60 days from kick-off. The team may extend the period by 30 days under special circumstances.

(Yonhap News)

Prosecutors last month concluded that a former aide to former ruling party member Rep. Choi Gu-sik colluded with a former secretary to parliamentary speaker Park Hee-tae to lead a distributed denial of service, or DDoS, attack on the National Election Commission webpage. The attack was allegedly to discourage voters from turning out at polling stations. Low turnout was regarded as favorable for the ruling party’s candidate for Seoul mayor.

The page was thus paralyzed for two hours on the day of the by-election vote.

Investigators, however, said that no other lawmakers were found to be responsible for the hacking, after which left-wing members claimed that an independent counsel should be introduced to probe the case.

The parliament also passed the media rep revision bill, with 150 lawmakers approving, 61 disapproving and 12 abstaining.

The bill, submitted and revised by the ruling Saenuri Party, involves allocating a single advertising broker for public broadcasters such as KBC, MBC and EBS, and multiple representatives for private stations.

It also allows a private broadcaster to own up to 40 percent of shares in a media rep.

Several new general programming cable channels, which began to air programs in December, last year, will be excluded from the regulations for three years from the day they were given business permission.

The media rep issue has been pending at the National Assembly for over three years since the Constitutional Court ruled in 2008 that the state-run Korea Broadcast Advertising Corporation’s advertisement monopoly was unconstitutional.

While the two bills were passed, the nomination of new Constitutional Court justice Cho Yong-whan was rejected in a secret vote with 115 approvals, 128 disapprovals and 8 abstentions.

This was the first case of rejection since the top court was established in 1988, according to officials.

Leading parties have been in conflict over the Cho’s qualifications, especially concerning his comments on the sinking of the naval corvette Cheonan.

“I cannot say I am convinced of the North Korean involvement in the attack, though I believe in the government’s statement,” he said earlier.

The ruling Saenuri Party had vowed to veto Cho’s nomination after his public hearing last June.

Speaker resigns over bribes scandal


Park Hee-tae, right, leaves the National Assembly speaker’s residence in Hannam-dong, central Seoul, yesterday, after his spokesman announced his resignation to take responsibility for a vote-buying scandal during the Grand National Party chairmanship election in 2008. [YONHAP]

National Assembly Speaker Park Hee-tae resigned yesterday after prosecutors received testimony about involvement by Park and a former aide in vote buying during the ruling party’s 2008 chairmanship election.

Park’s resignation, the first by an Assembly speaker over a bribery scandal, came two months before a general election that the opposition hopes will give it a majority in the 299-member legislature.

“I decided to step down from the post of Assembly speaker, taking responsibility for the matter,” Park said through a statement read by spokesman Han Jong-tae at a media briefing at the National Assembly.

Park, who became chairman of the ruling party, then known as the Grand National Party, in the July 2008 election, has claimed innocence in the scandal. In his resignation statement yesterday, Park said he would take responsibility for the scandal but didn’t concede guilt.

Kim Hyo-jae
An aide of Park’s who was suspected of delivering envelopes of cash to legislators for their votes, Goh Myeong-jin, had refused to talk about other people involved in the bribes. But the prosecution said earlier yesterday that he changed his mind last Friday and testified that he reported the delivery of the cash to Kim Hyo-jae, who was Park’s campaign manager.

Kim, now senior secretary for political affairs to President Lee Myung-bak, didn’t respond to questions from the media yesterday. The prosecution is known to be planning to summon both Park and Kim for questioning next week.

Park’s resignation may defeat the ruling party’s moves to refashion itself as being younger and cleaner. Last week, the party dropped the name it had used for 14 years and changed its logo and even the color with which it is associated.

“It is belated, but we think it is fortunate that he made a decision,” Hwang Young-cheul, the party’s spokesman, told media yesterday after a meeting of the party’s emergency council.

The main opposition Democratic United Party called for a thorough investigation of Park and Kim.

The scandal started when whistle-blowing Saenuri lawmaker Koh Seung-duk claimed on Jan. 3 that an envelope containing 3 million won ($2,700) in cash and Park’s name card was delivered to his office two or three days before the 2008 party convention. Koh said he returned the money to Park’s office.

Park denied being involved and declared he would not run for re-election, taking responsibility for “causing public disruption.” Park, a six-term lawmaker, served as the GNP’s chairman from 2008 to 2009. He gave up his party affiliation in June 2010 to become the speaker.

The prosecution summoned Goh three times to ask where the money he delivered to Koh came from, and, after Koh returned the envelope, where the money went. Goh claimed he spent the money himself.

The prosecution summoned him several times more for unofficial investigation, and he finally testified that he returned the envelope from Koh to Park’s chief secretary, Jo Jeong-man, and reported it to Kim Hyo-jae, indicating that he initially received money from Jo on the order of Kim.

The prosecution summoned Jo yesterday for the first time as a suspect in the scandal. He had been called twice before as a person of interest in the case and said he didn’t know anything about it.

“I made a decision [to reveal this] after seeing that the man responsible was trying to avoid this crisis using his power and by sacrificing a subordinate,” Goh said last Friday, according to the prosecution yesterday.

Late last month, a member of Seoul’s Eunpyeong District Legislative Council told prosecutors that he and four other council members were ordered to deliver money to the party’s 30 chapters in Seoul and they picked up the money from Kim’s office.

It was the first time a National Assembly speaker stepped down without finishing his term since 1993, when Speaker Park Jyun-kyu resigned over a scandal over how he accumulated his wealth. Syngman Rhee stepped down as speaker when he was inaugurated president in 1948, and Speaker Lee Ki-bung died in office in 1960.

A new speaker will be elected in a by-election and will serve through the rest of the term, which ends May 29, when the 18th National Assembly ends. The 16th article of the National Assembly Law says the by-election should be held without delay.

The speaker is appointed by the ruling party from its longest-serving lawmakers. Currently, there are three six-term lawmakers in the party: Chung Mong-joon, Hong Sa-duk and Lee Sang-deuk.