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Saturday, August 18, 2012

K-pop as gateway to Korean culture

Korean pop music is undoubtedly the leading force in the Korean culture boom that is attracting thousands of visitors to the country.

K-pop was the main reason that brought 21-year-old Hungarian Lici Nemczov to Korea in March.

“I first listened to K-pop music and then learned about Korean culture and food on the Internet. And I came to Korea in March this year to learn the Korean language,” said Nemczov at the K-pop dance class at Seoul Global Culture and Tourism Center in Myeong-dong last week.

She was one of the 15 students attending the K-pop dance class last week at the city-run culture center seeking to broaden their experience of Korean culture.

Two sisters from Germany have been participating in various cultural programs that the center offers during their stay in Korea, mainly for a five-week Korean language course.

“We are here to learn Korean. We thought the best way to learn the language is by visiting the country. I visited the center for cultural experiences. I did all the traditional experiences and I thought it’s time to try modern things,” said Finja Schmalz, who was at the dance class with her sister Svenja Schmalz.

“When we registered for the classes, we didn’t know about them well, but we just registered for every course and hoped to experience as much as possible,” said Svenja.

K-pop dance class popular among young foreign students
The K-pop dance class is a 90-minute dance lesson during which participants can learn the choreography of a popular K-pop song. The first run of the program ran in March and the second started in July.

The class starts off by watching the music video of the selected song. Then a dance teacher demonstrates the moves slowly, breaking down the choreography.
A dance teacher shows dance moves to students at the K-pop dance class organized by the Seoul Global Culture and Tourism Center in Myeong-dong in Seoul. (Park Hae-mook/The Korea Herald)

The class has covered songs such as “Twinkle” by Tiffany, Taeyeon and Seohyeon from Girls’ Generation; “Like This” by Wonder Girls; “Electric Shock” by f(x) and “Bad Girl Good Girl” by Miss A.

As the class is popular among girls, male students often ask whether they can join the class, according to a program manager.

In fact, the class has also covered the songs of famous boy bands such as “Be Mine” by Infinite, “Hands Up” by 2PM and “Sorry Sorry” by Super Junior.

After trying the separate moves, students perform the whole choreography rather professionally by the end. The class wraps up with stretching to slow and calming Korean ballads playing in background.

Most of the participants are foreign students attending language courses at universities and language institutes in Seoul, since the center began promoting the programs through such institutes.

But now the center accepts group visitors and can adjust class times according to the groups’ schedules, according to the center’s assistant manager Park Gae-yeon.

K-pop singing class

The singing class can be a bit more challenging than the dance class because students learn both the meaning of the lyrics and the pronunciation, and put them together to sing the entire song.

But it is an optimal learning opportunity for those hoping to learn Korean culture in depth.

The class starts with watching a music video just like the dance class. Then a teacher hands out music sheets with another copy of the Romanized lyrics so that students who cannot read Korean can still sing. The teacher also breaks down the song into several parts and reads each line explaining the meaning. Students follow the teacher who then corrects their pronunciation.
K-pop singing class (Seoul Global Culture and Tourism Center)

The songs are usually fast songs with repeated lyrics because they are easy to sing, according to the teacher Lee Mi-ok.

Lee usually picks the songs that are easy to follow such as Jang Yoon-jeong’s “Oh My” and Park Hyun-bin’s “Shabang Shabang.”

At the Tuesday class last week, she taught girl group Davichi’s slow ballad “Because It’s You,” an original track for the recent TV drama “Big,” because a Canadian student asked her to teach the song before she returns to Canada next month.

“Slow songs are difficult to learn, because there are many words with hidden meanings and not many repeated lines,” said Lee.

Lee experienced the great demand for Korean language lessons when she lived in China for five years.

“I lived in Shenzhen, China, and there were not many Koreans there. But I saw about 500 Chinese people voluntarily gather at a local university to learn Korean. That’s when I felt the popularity of Korean culture and language first hand,” said Lee.

“We have students good at speaking Korean, and also those who barely speak the language, but one thing in common is that they are willing to learn.”

The center accepts registration by email and phone. The class is free for individual participants and 3,000 won to 5,000 won for group visitors.

Registration is available at www.facebook.com/SeoulGlobalCultureTourismCenter or www.seoultourism.kr and at (02) 3789-7961~3.

K-pop boom spreads to other fields
The popularity of K-pop also influences other cultural fields such as beauty, TV dramas and language.

The culture center presented a K-beauty makeup class in April. The class was such a huge hit that the registration closed in just two days. Buoyed by the popularity, the center plans to convene new K-beauty classes in September and October.

The beauty classes, offered in multiple languages, including English, Japanese and Chinese, and include demonstrations of makeup techniques of Korean celebrities using Korean cosmetics.
K-beauty class (Seoul Global Culture and Tourism Center)

“The center created the K-pop programs to promote the contemporary and trendy side of Korean culture to foreigners. We will continue to come up with fun cultural programs like K-beauty and K-culture based on requests and demands of foreign visitors,” said city official Kim Myung-joo, who is in charge of supporting foreign residents in Seoul.

As K-pop is a large part of Korean culture, the Korea Tourism Organization seeks to use K-pop to shed light on other aspects of Korean culture as well.

At a language conference in Cambodia earlier this year, the state tourism agency drew much attention to the Korean language by holding a quiz show on K-pop music, according to Baik Ju-hyun from Hallyu Tourism Team of the KTO.

“We continue to come up with various programs that combine K-pop with other fields to better promote Korean culture to the world,” said Baik.

By Lee Woo-young (wylee@heraldcorp.com)

Applications open for N.Y. K-pop contest


Applications are open for the annual K-pop competition in New York, organizer Korean Cultural Service New York announced on Sunday.

The 2012 NY K-pop Festival, which celebrates its second edition this year, is sponsored by three major entertainment agencies: S.M., YG and JYP. There are three categories this year: singing, dancing, and singing and dancing.

Those interested in participating must pick a song by SHINee, Big Bang or the Wonder Girls, make a demo video of their performance, and upload it on YouTube. A separate application form is available on Korean Cultural Service New York’s website which must be filled out, including the URL of their YouTube video, and submitted online by Aug. 10.

A total of nine teams will be selected for the final competition who will then compete at New York University’s Skirball Center for the Performing Arts on Aug. 31. The top prize winner will be given an opportunity to compete at the World K-pop Festival which will be held in Korea in October, as well as free music CDs by popular K-pop artists.

For more information, visit www.koreanculture.org

By Claire Lee (dyc@heraldcorp.com)

KARA named most popular Korean artist in Japan


KARA (DSP media)
KARA, one of the most popular Korean pop groups in Japan, was ranked 6th in the “2012 First Half Talent Power Ranking” according to Nikkei Entertainment, a Japanese entertainment magazine.

South Korean girl group Kara performs at the MTV World Stage Live in Malaysia, in Petaling Jaya, near Kuala Lumpur, Malaysia, Saturday, July 14, 2012. (AP-Yonhap News)


The five-member girl group proved its popularity, ranking the highest out of hallyu stars in Japan. The result was a pleasant surprise for the group as it ranked after the five members of Arashi, a Japanese boy group, who took the top five spots.

The survey of teenage girls in Japan placed KARA as the only foreign group in the top ten, beating out popular Japanese girl group AKB48 as well.

MTV World Stage Live (AP-Yonhap News)


In addition, the girl group set the record of having sold 1,000,000 copies of its album in 23 months, the shortest time for a Korean artist.

MTV World Stage Live (AP-Yonhap News)


By Lee Hyun-jae, Intern reporter
(lhj137@heraldcorp.com)

S.M. expands into exhibition business


S.M. Entertainment, one of the here three major entertainment agencies, said Thursday that it will jump into the global exhibition business to better promote exports of the country’s entertainment content.

“S.M. Entertainment will not be a company that only manages celebrities, produces music, drama series and theater performances like musicals. It will also become a leading exporter of entertainment content. This S.M. ART Exhibition will also be exported (to countries around the world),” Kim Young-min, CEO of S.M. Entertainment, told reporters at a press conference held at COEX.

The company opened the world’s first interactive entertainment exhibition in Seoul Friday in collaboration with global firms. The S.M. Art Exhibition is aimed at presenting various types of entertainment content visualized through state-of-the-art information technology.
Members of Girls’ Generation pose for photo at a press conference held for S.M. ART Exhibition at COEX, Seoul, on Thursday. (Park Hae-mook/The Korea Herald)

“Our artists such as members of Girls’ Generation have collaborated with leading firms such as Samsung and LG Electronics to promote their latest product at global shows like at CES. This time, we brought our artists to the fore, putting their content at the center of attention,” he said.

The list of programs and shows at the exhibition includes “Fantasy Tree” ― a 13-meter-high circular installation consisting of 55 Samsung LED screens ― that shows super-sized S.M. Town artists performing in virtual space; “S.M. Motion” that offers visitors a chance to experience the 360 degree camera technique that was used in the Hollywood movie “Matrix,” and a media show with Hyundai Motors using projection mapping technology. Among the gamut of IT and entertainment offerings is SHINee’s live performance shown in a 3-D panorama theater. Visitors will also have a chance to make video calls and meet stars, peek into artists’ secretive daily lives and view props used in concerts.

As a sideline event, S.M. is holding “S.M. Town Live World Tour III” in Seoul on Aug. 18, a day before the exhibition ends.

S.M.Art Exhibition takes place at COEX, Samseong-dong in Seoul from Aug. 10 to 19. Tickets are 25,000 won and 85,000 won. For ticket purchase, visit www.ticket.auction.co.kr or call 1566-1369.

By Cho Chung-un (christory@heraldcorp.com)

BMW, Hyundai top in H1 operating margin


BMW AG and Hyundai Motor Co. outperformed other domestic and foreign auto companies in terms of operating margin in the first half of 2012, an auto research institute reported on Wednesday.

According to the study conducted by the private Korea Automotive Research Institute, or KARI, German automaker BMW and Korean automaker Hyundai Motor vied closely with operating margins of 11.6 percent and 11.4 percent, respectively.

Kia Motors Corp., the nation’s second-largest carmaker, won third place with a 9.6 percent operating margin, followed by Volkswagen AG at 6.7 percent, General Motors at 5.2 percent and Toyota Motor Corp. at 4.2 percent.

The KARI report also said that Hyundai and Kia’s operating profit rose by 21 percent and 25 percent on-year, respectively, beating its U.S. and European counterparts, with the exception being Japanese firms which recovered rapidly from last year’s earthquake.

The on-year operating profit of GM and Renault Samsung fell drastically by 17.5 percent and 60.6 percent, respectively.

By Chung Joo-won (joowonc@heraldcorp.com)

Iran, Korea's banks spar over won-based settlement accounts


Iran's central bank has threatened to close its Korean currency-based transaction settlement accounts opened at two South Korean banks following economic sanctions on the Islamic country, calling for higher deposit rates on the accounts, sources said Thursday.

Iran has notified two local state-owned banks -- Woori Bank and the Industrial Bank of Korea (IBK) -- of not using the Korean-currency accounts, estimated at around 5 trillion won ($4.42 billion), any more mainly due to lowly set deposit rates on the accounts and asked the Korean government to find alternatives, according to industry sources.

In 2010, South Korea agreed with Iran to set up a won-based transaction settlement arrangement for bilateral trade, mainly out of the necessity for oil imports, saying the move did not go against international sanctions to punish Iran for its nuclear ambitions.

As part of such efforts, Woori Bank and the IBK were allowed to open won-based accounts through which the Korean won is used to settle payments via Iran's central bank. Korean companies use these accounts to pay out money for oil imports.

Spokesmen at Woori Bank and the IBK said that sustained rises in oil costs snowballed the balance of deposits, but lowly-set deposit rates on the accounts made it difficult for Iran's central bank to earn interest income.

"As far as we know, Iran and (the Korean government) are in talks to find solutions," said a Woori Bank spokesman. "Iran's potential withdrawal is seen as a concern as it could hurt Korean exporters."

A spokesman at the Iranian Embassy in Seoul said, "I have never heard of that," adding that he will check over whether the Iranian central bank decided to do so.

The two banks declined to comment on the balance of the deposits and rates, citing their internal policy. A local media earlier said that the rate on such accounts stands at around 0.1 percent.

Seoul is mulling resuming oil imports from Iran as early as next month after imports have been suspended since July due to a European Union ban on insuring Iranian oil shipments due to Tehran's suspected nuclear program.

Iran is South Korea's third-largest market in the Middle East with exports to the country rising 32 percent on-year to US$6.07 billion in 2011. (Yonhap News)

Psy to meet Justin Bieber’s agency

Psy’s single, "Gangnam Style" album poster


South Korean singer Psy will meet Justin Bieber’s manager Scooter Braun this week, his agency said Monday.

YG Entertainment said Psy will be departing for the U.S. on Wednesday to meet the pop star’s manager. It added that Braun and Psy might discuss possible collaboration.

No other details were released, but some sources have said Bieber’s management seeks to buy the rights to "Gangnam Style," a song from Psy’s recently released album.

Braun reportedly has praised the "Gangnam Style" music video, tweeting “HOW DID I NOT SIGN THIS GUY!?!??!... GANGNAM STYLE!!!! #THEGREATEST”.

The 35-year-old Korean singer’s video, featuring its signature "horse-riding" dance and parody of South Korean night culture, became an overnight sensation upon its release in mid-July. It has been viewed over 27 million times on YouTube, even more than Justin Bieber‘s most recent effort.

Big names in the music industry such as T-Pain, Robbie Williams and Josh Groban have expressed their support for the video via social networking services. T-Pain even tweeted that "words cannot even describe how amazing this video is."


By Yoon Min-sik
(minsikyoon@heraldcorp.com)

Psy to unveil new version of hit music video

Psy
South Korean pop singer Psy will unveil another version of his hit music video “Gangnam Style” this week, his management agency said Monday.

The new video whose title translates into “Oppa, You‘re Just My Type” in English will be put on major online music sites for free on Wednesday, YG Entertainment said.

Psy, whose real Korean name is Park Jae-sang, rose to stardom on YouTube for the video of his new single “Gangnam Style.”

The video in which the singer demonstrates a comical horse-riding dance had attracted 26.9 million views as of Monday morning.

Psy made the new video in token of his appreciation toward his fans who love “Gangnam Style,” the company said.

The music video for “Oppa” has the same melody as “Gangnam Style” but different lyrics written from the viewpoint of women of Gangnam, an affluent area in southern Seoul.



(Yonhap News)

Psy to meet Justin Bieber’s manager


Psy showcases his popular “horseback riding” dance in the music video to his hit single “Gangnam Style.” (YG Entertainment)
South Korean singer Psy will be meeting American pop star Justin Bieber’s manager, Scooter Braun, during a trip to the U.S., according to a representative of Psy’s agency.

“It will be an informal affair,” the YG Entertainment representative said over the phone, explaining that Psy had originally planned to visit America for some downtime and added the meeting to his itinerary approximately a week ago. Psy is slated to depart for the U.S. on Wednesday.

There has been much talk about why Braun, a high-profile talent manager and record label mogul, and the singer would arrange a personal get-together.

Potential outcomes presented by the Korean press run the gamut from a collaboration between Psy and Justin Bieber to Braun purchasing the rights to produce a remake of Psy’s latest hit single, “Gangnam Style.”

No doubt, a tweet from Braun on July 31 about Psy’s single “Gangnam Style” has added fuel to the fire.

“HOW DID I NOT SIGN THIS GUY!?!??!” Braun posted on his Twitter account along with a YouTube link to the “Gangnam Style” music video.

According to Psy’s agency representative, however, nothing has been set in stone.

“Psy has to meet Braun first,” the representative said.

Braun runs his own label, School Boy Records, and a joint label-and-media company, Raymond Braun Media Group, with pop star Usher, in addition to representing prominent artists like Justin Bieber and Asher Roth.

Psy, who attended Boston University and Berklee College of Music, debuted with his first album in 2001 and signed to music goliath YG Entertainment in 2010. The 34-year-old artist released his sixth album in July, which included the explosively popular single “Gangnam Style.”

Following the single’s release, “Gangnam Style” has racked up over 28 million hits on YouTube thus far.

The music video, with its infectious “horseback riding” choreography, has also attracted coverage from CNN and the Los Angeles Times along with tweeted praises from American artists Josh Groban and T-Pain.

Psy’s concert last weekend in Seoul attracted a crowd of over 30,000. Psy followed up the concert with a guerilla performance of “Gangnam Style” at the Gangnam Subway Station intersection in Seoul on Tuesday. A second music video version of “Gangnam Style” with K-pop artist Hyun-a taking the lead is slated to go viral Wednesday

Psy’s agency representative stated the singer will be staying in the U.S. for a week to 10 days.

By Jean Oh (oh_jean@heraldcorp.com)

[Newsmaker] Singer becomes sensation


South Korean singer Psy’s every move is headline news after his new single, “Gangnam Style,” went viral in July.

The tongue-in-cheek, laugh-out-loud music video of the hit song and its infectious “horseback riding” choreography have spawned a global buzz that refuses to die down.

Paparazzi followed the 34-year-old star to Incheon International Airport on Wednesday to catch him before he boarded a plane for the U.S., where he is scheduled to meet pop star Justin Bieber’s manager, Scooter Braun.

No doubt, the press is breathlessly awaiting news of the much-talked-about meeting between Braun and Psy.
Singer Psy performs at his concert last Saturday. (Yonhap News)

In addition to representing American artists like Justin Bieber and Asher Roth, Braun heads his own label, School Boy Records, and runs a joint label-and-media company with pop star Usher.

On July 31, Braun tweeted about Psy’s “Gangnam Style” and posted a YouTube link to the music video.

“HOW DID I NOT SIGN THIS GUY!?!??!” Braun wrote.

Braun’s highly publicized comment came shortly after Psy released his sixth album featuring the single “Gangnam Style.”

As of Thursday, “Gangnam Style” has racked up over 32 million hits on YouTube, another milestone for the popular music video, which has been featured by CNN, the Los Angeles Times and most recently by Time Magazine online. “Gangnam Style” has also been tweeted about by American artists Josh Groban and T-Pain.

Psy’s concert last Saturday reeled in a crowd of more than 30,000 and thousands flocked to his guerilla performance at Seoul’s Gangnam Subway Station intersection on Tuesday.

On Wednesday, a second version of the music video dropped, with K-pop idol Hyun-a taking the reins. The new version has tallied up over four million hits so far.

Without question, Psy’s popularity is at an all-time high.

Over a decade has passed since the Berklee College of Music alumnus first debuted. Now, a husband and father of two, Psy is looking to enjoy some downtime with his family during his trip to the U.S., his agency representative said.

By Jean Oh (oh_jean@heraldcorp.com)

China rapidly narrows industrial gap with Korea


This is the fifth in a series of articles to mark the 20th anniversary of diplomatic ties between South Korea and China. ― Ed.

The technology gap between Korea and China has narrowed over the past decade in the manufacturing industry.

According to data from the Korea Institute for Industrial Economics & Trade, the technology gap in the manufacturing industry between the two countries narrowed to 3.7 years in 2011 on average, from 4.7 years in 2002.

In terms of the countries’ technological levels as of 2011, China needs 4.2 years to reach the level that was reached by Korea’s auto industry, about 3.1 years in shipbuilding and 2.4 years in semiconductors, the report said.

The report is mainly based on a survey of about 600 major companies in 10 core industries such as automobile, electronics, shipbuilding and semiconductors.

“With Chinese firms developing at a frightful speed by means of imitating products of industrially advanced nations, industrial spying or theft of key technologies, the technology gap between the enterprises of Korea and China was found to be narrowing at a fast rate,” said a KIET researcher.

The Korea Automobile Manufacturers Association said that South Korea has been sandwiched between its neighbors.

It observed that China has rapidly caught up with Korea’s output while also striving to narrow the automotive technology gap with Japan.

“China has gained advanced technologies in recent years based on its robust economic growth and a strategy to open up its markets,” a KAMA official said. “We expect China, which is about four years behind Korea, to further narrow the gap with us.”

The Chinese government is carrying out an automobile import promotion strategy. The project is focused on imports of advanced general automobile technologies and equipment and key technologies and parts for energy-saving and new-energy vehicles.

KAMA said in a report that Chinese carmakers, such as Geely Holding Group Co. and BYD Co., could threaten local firms’ exports.

The report said that Chinese carmakers’ increasing exports and technological capabilities are likely to present significant challenges to Korean firms’ sales in foreign markets where they continue to rely on low prices to drive sales.

Chinese firms are still mainly exporting to developing nations in Africa and the Middle East.

“But when Chinese carmakers enter the U.S. and European markets their price competitiveness could put Korean brands at risk of being stranded between cheap Chinese brands and high quality brands from developed nations, unless local firms can establish a more up-market brand image,” the report warned.

The majority of Chinese automobile exports are accounted for by small cars whose prices are more than 20 percent lower than comparable models from established carmakers.

Meanwhile, a Korean executive in the local automotive industry downplayed Chinese firms’ challenge, stressing that “mass production of low-priced cars does not guarantee customer confidence in the global market.”

About 10 years ago, Korea was recognized as a country that makes its living by just selling cheaper-made products in the global electronics and technology markets.

There was no way for Korean tech companies to catch up with Japanese leading tech giants should the country continue to promote itself as a less-innovative, inexpensive manufacturer.

But now the tides have turned. Through rigorous investment in research and development, Korea is now home to tech giants such as Samsung Electronics and LG Electronics, producing and supplying the world with the largest amount of displays, mobile phones, semiconductors and home electronic goods such as washing machines and refrigerators. Samsung, for instance, has edged over Sony, once the world’s leading consumer electronics maker, and Apple and Nokia in mobile phones.

However, analysts say that Korea cannot rest assured just because it has technologically caught up with Japan.

Korea, as Samsung Chairman Lee Kun-hee once expressed out of concern, is still sandwiched between Japan and China. Korea still depends on Japanese high-tech parts for final product assembly, leading the former to post a trade deficit with the world’s third-largest economy.

Meanwhile, China, the world’s fastest economy and Korea’s largest export destination, is rapidly catching up with Korea by doing what Korea used to do ten years ago ― selling cheaper products and at the same time increasing investment in research and development.

“Continuous technological innovation, research and development as well as mergers and acquisitions will sharply upgrade China’s manufacturing over the next 10 years,” said Kwon Hyuk-jae, research fellow at Samsung Economic Research Institute.

“Chinese companies are already pressuring their Korean counterparts in home electronics, telecommunication devices and petrochemicals. This will intensify further.”

China’s IT manufacturing was valued at $523 billion in 2011, accounting for 29 percent of the total in the world, compared to Korea’s $126 billion.

The shipbuilding sector is one industrial area in which Korean companies have maintained the No. 1 position globally, though their Chinese rivals are quickly catching up.

The global shipbuilding industry has suffered from slowing orders since the financial crisis erupted in the U.S. in 2008, coupled with a recent debt crisis in Europe.

In the first half of this year, global shipbuilding orders amounted to 8.77 million tons, down 60 percent from the same period last year.

Korea’s big three ship makers ― Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding & Marine Engineering ― saw their orders decline about 60 percent this year as well.

Their operating profits also dropped as many of the high-margin orders that used to be made before 2008 have been replaced with those for low-cost ships since 2009.

In the meantime, China, armed with strong price competitiveness, outpaced Korea in terms of shipbuilding orders. However, because Chinese firms focus more on relatively cheaper bulk carriers, their profits still lag behind Korean companies.

With the gap between Korean and Chinese shipbuilders narrowing, the two countries now share global shipbuilding orders almost equally.

In a new development plan for 2015 published recently, the Chinese government pledged it would elevate the country’s market share up by to 70 percent within five years.

Industry watchers say it is unavoidable that cheaper deals from Chinese shipbuilders would affect the business of Korean companies, especially small and medium-sized ones.

But they also pointed out that the China factor would not be greater than that of the sluggish global economy.

“The Korean big three, in particular, will continue to maintain their competitiveness based on their years of experience and new technology,” said a spokesperson of Hyundai Heavy Industries, the world’s largest shipbuilder.

“Amid high-flying oil prices, the market for offshore plants and gas development is newly emerging. But Chinese shipbuilders have yet to acquire know-how in the field.”

By Korea Herald staff

No more leniency for chaebol?


Imprisonment of Hanwha chairman draws mixed response from business, political circles


Business circles seem to be perplexed by the imprisonment of Hanwha Group chairman Kim Seung-youn, who was sentenced to a four-year prison term and a 5.1 billion won ($4.5 million) fine for embezzlement and breach of trust on Thursday.

In many economic crime cases involving business tycoons, the Korean judiciary has shown leniency toward them, citing their contribution to the national economy. Even when convicted, most of them have been pardoned by the president.

For Kim, who has been indicted five times over his 31-year tenure at the nation’s 10th largest conglomerate, it was the first time on Thursday he was imprisoned right after the court handed down the verdict.

The harsher-than-expected sentence on the Hanwha chairman, however, is signaling that the nation’s powerful chaebol could be facing heightened pressure amid a recent demand for “economic democratization” for balanced growth.
The headquarters building of Hanwha Group in central Seoul. (Yonhap News)

Ahead of the verdict, the 60-year-old Hanwha chief carried out diverse overseas activities including securing an $8 billion contract to build a housing complex in Iraq ― one of the nation’s largest overseas construction deals.

More recently, he visited London to praise Korean shooters supported by Hanwha. They put on their best Olympics performance by winning three gold and two silver medals during this year’s summer event.

But unlike previous cases, those activities seemed to have failed to be taken into consideration for the court’s ruling.

“Chairman Kim incurred losses to the company by using his power and the status of his family. But he has not shown remorse for his crime,” judge Seo Gyung-hwan of the Seoul Western District Court said in a ruling.

“Documents of Hanwha Group presented by the prosecution show that Kim holds enormous power in making decisions. Kim is almost considered a god inside the group.”

Earlier in July, prosecutors demanded nine years of imprisonment and 150 billion won in fines for Kim, for illegally using company funds to pay back the debts of firms he secretly ran between 2004 and 2006.

Hanwha officials said Kim will immediately appeal to a higher court, while business groups dismissed the ruling as based on politicians’ populism aimed at wooing voters ahead of the December presidential election.

The Federation of Korean Industries, a business lobby group, expressed regret over Kim’s sentence, saying in a statement, “At a time of economic difficulties, it is regrettable that a business leader is imprisoned.”

“The imprisonment of a chaebol chairman could have great influence in the group’s whole management. Some problems are unavoidable in important decision making, which could lead to a negative impact in investment,” said an industry official, declining to be identified.

Despite resistance from businesses, the social atmosphere is expected to become harsher against owners of family-run conglomerates. The judiciary has already tightened sentencing guidelines against crimes committed by them in 2009.

And the landmark ruling on Kim could affect a lot of other pending rulings on business tycoons here, with group officials keeping a low profile.

Chey Tae-won, chairman of SK Group, the nation’s third-largest conglomerate, is on trial for misappropriating nearly 1 billion won from SK affiliates to cover losses from his personal stock investment.

Park Chan-koo, chairman of Kumho Petrochemical, is waiting for a verdict on charges of embezzlement and illegal use of insider information, while Sun Jong-koo, former chairman of electronics retail giant Himart, is also on trial for tax evasion and breach of trust.

On Friday, lawmakers and key presidential candidates, regardless of their political parties, urged strict punishment for business leaders involved in irregularities, denying the judiciary’s indulgence.

Considering the current social atmosphere, coupled with the presidential election in December, industry watchers predict that if the higher court confirms the sentence on Kim, it is unlikely he will be pardoned in the new government to be inaugurated in February next year.

By Lee Ji-yoon (jylee@heraldcorp.com)

Miss China crowned Miss World 2012, in China


Miss China won the coveted title of Miss World on Saturday, triumphing on home soil during a glitzy final held in a mining city on the edge of the Gobi desert.

The mostly Chinese audience erupted in cheers, and fireworks lit up the sky, when it was announced that the home candidate, Yu Wenxia, had been awarded the coveted title.
Newly crowned Miss World Yu Wenxia of China waves after she won the Miss World 2012 beauty pageant at the Ordos Stadium Arena in inner Mongolia, China Saturday, Aug. 18, 2012. (AP-Yonhap News)


Miss World 2012 winner Yu Wenxia (C) of China, second place contestant Miss Wales Sophie Moulds (L) and third place Miss Australia Jessica Kahawaty (R) pose for photos following the pageant's final ceremony at the Ordos Stadium Arena in the inner Mongolian city of Ordos on August 18, 2012. China's Yu Wenxia of China defeated more than 100 other hopefuls at the glittering ceremony held in the Chinese mining city of Ordos, on the edge of the Gobi desert. (AFP-Yonhap News)




Runner-up Miss Australia Jessica Kahawaty, right, smiles after she was crowned by Miss World 2011 Ivian Lunasol Sarcos Colmenares of Venezuela during the Miss World 2012 beauty pageant at the Ordos Stadium Arena in Ordos, Inner Mongolia, China Saturday, Aug. 18, 2012. (AP-Yonhap News)



"When I was young I felt very lucky because so many people helped me, and I hope in the future I can help more children to feel lucky," Yu, a 23-year-old aspiring music teacher said when asked why she should be crowned.

Yu, who became China's second Miss World winner, appeared on stage in a dazzling array of ballgowns during the two-hour final and serenaded the audience with a piercing rendition of a popular Chinese song.

Last year's Miss World, Ivian Sarcos of Venezuela, handed over her crown to Yu, who wore a sparkling blue dress, in the futuristic Dongsheng stadium in the northeastern city of Ordos.

Miss Mexico, Mariana Reynoso, had been the bookmakers' favourite for the title, but failed to make the last seven candidates despite a strong showing in the early rounds of the pageant. Miss Wales, Sophie Moulds, came in second, while Miss Australia, Jessica Kahawaty, finished third.

The final, watched by a worldwide TV audience of an estimated one billion viewers, included a nod to the culture of Inner Mongolia, with a performance by a group of Mongolian musicians playing the erhu, a traditional two-stringed instrument.

Ordos, which sits around 700 kilometers (440 miles) from the nearest beach, was an unlikely setting for the world's biggest beauty pageant.

The city has grown rich over the past decade on the back of a coal mining boom that has transformed it from a sandstorm-afflicted backwater into one of the wealthiest places in China.

The boom triggered a frenzy of building in the city, but the local government has struggled to fill the vast tower blocks that sprung up, earning it the title of China's biggest ghost town.

However, enthusiastic competitors seemed unfazed by the locale, expressing optimism that with the help of the pageant, the city could leave its reputation behind and take its place alongside other global centres of glitz and glamour.

"Ordos could be the next Dubai," Marielle Wilkie, representing the Caribbean nation of Barbados, confidently predicted.

Albanian contestant Floriana Garo chimed in with her own bold statement.

"In ten years, this city will be booming," she said.

Architecture in Ordos, where the city museum is shaped like an undulating blob, is "world class," added Markysa O'Loughlin, representing St. Kitts and Nevis, also in the Caribbean.

Contestants churned yoghurt in a nomad's yurt and donned local dress to climb sand dunes during their month-long stint in China. Video clips shown during the final showed the beauty queens posing in swimwear on desert sand dunes.

A total of 116 contestants -- the highest ever number to take part -- took to the stage during the final in a variety of stunning gowns.

A red ceremonial flag was passed over to representatives from the Southeast Asian resort island of Bali, hosts of the 2013 Miss World Final, during the ceremony.

While the popularity of the contest, first held in 1951, has waned in the West, continued interest in Asian countries ensures that the final rakes in a huge global television audience.

Sweden's Kiki Hakansson was the first Miss World, while Oscar-winning US actress Halle Berry was a finalist in 1986 and Bollywood star Aishwarya Rai took the crown in 1994.

Venezuela has produced the most Miss Worlds, with six winners, while India and Britain claim five titles each. (AFP)