Apple’s move to reduce Samsung parts to have limited impact

An Apple Inc. iPhone 4S is displayed at an electronics shop in Seoul. (Yonhap News)

Apple still chooses to go with the Korean tech giant on application processors


Samsung Electronics is unlikely to suffer heavily Apple’s alleged move to pressure the Korean tech firm by cutting down its orders for components in its iPhone 5, which is expected to be released next Wednesday, analysts here said on Friday.

According to industrial sources, Apple is on the move to depend less on its biggest rival Samsung as the U.S.-based firm did not put in orders for some of its parts such as the mobile dynamic random access memory and NAND Flash memory.

Apple’s action is seen as an apparent retaliation in the two companies’ patent infringement battle staged in nine different countries.

Apple asked SK Hynix and Elpida for mobile DRAM, SK Hynix and Toshiba for NAND Flash and LG Display, Japan Display and Sharp for its displays, said industry sources. But Samsung is still providing the application processors to Apple.

Samsung declined to confirm the news reports.

Although Apple has stopped using Samsung’s displays since 2010, the Suwon-based company has supplied about 30 percent of NAND Flash and mobile DRAMs that go into the making of its flagship iPhone until now.

Apple is known to be the biggest parts buyer for Samsung with it purchasing around 10 trillion won in subparts last year.

Analysts, however, say Apple’s actions will have a limited impact on the world’s top smartphone maker.

“It won’t have a big influence on Samsung’s earnings because Apple’s pricing (of parts) is not so profitable,” said Noh Geun-chang, a senior analyst at HMC Securities.

He said Apple’s move will have about a 7 percent impact on Samsung’s total sales, but only a 2-3 percent influence on its profits.

“Samsung supplied Apple’s demanded parts up until this point because the move itself had a great meaning even with the unfair pricing policy, but the firm is now getting orders for mobile DRAM from many other companies worldwide,” said Noh.

“Apple’s reduced orders will impact the firm in the short term, but will have limited effect in terms of profit.”

Nam Dae-jong, an analyst at Hana Daetoo Securities, also stressed that Apple is not a profitable customer for Samsung and that it was the reason Samsung is not so active in attempting to supply parts like memory chips, batteries and displays to the U.S. firm.

However, it remains as a mystery as to whether Apple could really produce its new iPhone 5 without the help of Samsung as Sharp, for instance, is reportedly having problems in its mass production of displays.

There is also a rather short list of players which could supply components to Apple, excluding Samsung, such as SK Hynix and Elpida in mobile DRAM and SK Hynix, Toshiba and Micron in NAND Flash memory.

“Apple will not be able to totally exclude the option of using Samsung’s parts,” said Noh.

By Cho Ji-hyun (sharon@heraldcorp.com)

Blackmail claim stuns politics

Ahn’s associate claims Saenuri official pressed the popular professor to give up presidential ambition


A ruling party official threatened to disclose bribery and an extramarital affair controversy surrounding professor Ahn Cheol-soo if he runs in the presidential election, Ahn’s aide said Thursday,

The bombshell allegation by Geum Tae-seop, a lawyer and advisor to Ahn, threw the ruling Saenuri Party into commotion prompting it to rush to its defense.

Despite the party’s immediate denial, the revelation is likely to deal a blow to the Saenuri Party’s presidential candidate Park Geun-hye and her campaign centered on reform and transparency.

In a news conference, Geum claimed that Jeong Joon-gil, a former prosecutor and member of Saenuri’s communications team, called him on Tuesday and threatened to leak Ahn’s alleged bribery and affairs with a woman if he joins the presidential race.

(left) (Yonhap News) (right)(Kim Myung-sub/The Korea Herald)

Ahn, though yet to officially decide whether to run in the December election, leads polls among potential candidates.

“Such an act by the Saenuri Party ahead of the presidential election is beyond imaginable. This is a clear challenge against the democracy and a threat against the people who long for a new change,” Geum said, accompanied by fellow associates of Ahn, including Democratic United Party lawmaker Song Ho-chang.

Thrown off the loop, the Saenuri Party immediately looked into the matter as Jeong flatly denied the allegation.

“I just told him that Ahn should be well prepared against many suspicions. I sought his understanding that as a public relations official of the Saenuri I will have to speak about them,” Jeong said at an emergency press conference soon afterward.

“It is extremely regretful that (Geum) would blow this up as if there is some sort of an organization behind me, or (say) that there was political surveillance,” Jeong said.

Park Geun-hye dismissed Geum's claim as groundless. “He is not in a position capable of making such a threat and put such a pressure. I can’t understand this at all,” she told reporters while attending the opening of Gwangju Biennale.

Jeong, who was named to the PR post just last week, offered to resign over the controversy and is considering taking legal action against Geum.

The Saenuri Party also held an emergency meeting of the communications team to discuss countermeasures.

“We would like to ask back whether Ahn, who has started to face questions of his quality by the media, is using the personal conversation with a friend politically,” Saenuri spokesman Lee Sang-il said.

Meanwhile, observers suggested the strapping announcement by Ahn’s side may signal that he has reached a decision to join the presidential race.

Ahn has been a close second to Park in various popularity polls for the past several months despite his hesitancy to formally enter politics.

They ranged from questionable investment and home purchases in the past to his drinking habits.

According to Geum, Jeong threatened to expose an allegation that Ahn bribed a Korea Development Bank manager in 1999 for investment, and that he was “having an adulterous relationship” with a woman in her thirties with a musical background.

“After checking with Ahn, all of these allegations have been confirmed to be completely untrue,” Geum said.

Geum also raised suspicion that the latest series of questions and rumors about the software mogul-turned professor may have been carefully orchestrated by the authorities.

“Based on recent circumstances, it is seriously suspected that the authorities are conducting an organized background check (on Ahn) and that the information is being passed over to the Saenuri Party,” Geum said.

The main opposition Democratic United Party was quick to use the claim to attack the Saenuri Party, indicating that it could seek to launch a parliamentary probe into the case and run an in-house fact-finding committee.

The DUP’s presidential contenders pressured the ruling party’s presidential candidate Rep. Park Geun-hye to “unearth the truth behind it,” underscoring that she may have to take responsibility should the claim prove to be true.

“If it is true, it is like we are seeing the revival of the dictatorship and the reign of terror,” said Yun Kwan-seok, spokesperson for the DUP’s leading contender Rep. Moon Jae-in, referring to the period from the 1960s to 1980s when general-turned-presidents ruled the country.

“Rep. Park should ascertain the truth and if that turns out to be true, she may have to take responsibility for that.”

Kim Yoo-jung, spokesperson for Sohn Hak-kyu, called for the ruling party’s immediate apology.

“If it is true, it is what makes us all appalled. In addition to the Saenuri Party going backwards in time, it seems to use the shameful (political) method of threatening somebody,” she said.

Jeon Hyeon-hee, spokesperson for Kim Doo-kwan, said that the alleged threat to Ahn reflects the Saenuri Party’s fear about the possible defeat in the upcoming presidential election.

By Lee Joo-hee (jhl@heraldcorp.com)

Quick start at Kingsmill

WILLIAMSBURG, Virginia (AP) ― Shin Ji-yai was in the middle of a solid round when a rain delay halted play at the LPGA Tour’s Kingsmill Championship for 2 hours.

Facing a tough chip shot when she returned to the course, Shin spent the break worrying about how to handle it.

When she got the chance, she showed that she shouldn’t have worried at all.

“I left with a tough chip shot, like 20 yards to the hole,” Shin said after shooting a tournament-record 9-under 62 in Thursday’s first round. “I’m really worried. ... How can I practice? In my mind, it was really hard. When I went back to there, I chipped it in.”

The LPGA Tour initially said it would not count the round as a tournament record because the players were allowed to lift, clean and place their ball because of already soggy conditions. But when tournament director Wayne Nooe said he would count it, the LPGA agreed.

Korea’s Shin Ji-yai hits her tee shot on the ninth hole on Thursday. (AFP-Yonhap News)

With 33 players still on the course when play was halted by darkness, the 24-year-old Shin, from South Korea, was two shots ahead of the field. Her round matched the lowest on tour this season, and eclipsed the previous mark of 63, shared by seven players.

Shin had nine birdies in her bogey-free, career-best round.

Ranked as the No. 1 player in the world for 16 weeks in 2010, Shin is chasing her first LPGA Tour victory in more than two years. She won the Women’s British Open in 2008 before it was a major, and is 13th on the money list with a third and two ties for third her best finishes. She missed two months for wrist surgery and recuperation.

“Finally, I can say golf course is not too hard,” said Shin, who is breaking in a new caddie this week. “My plan was no bogey. The rain helped make the greens softer, so I hit more aggressive on the back nine, too.”

Dewi Claire Schreefel of the Netherlands could get to 62, too, or lower. She used an eagle on the par-5 7th hole (her 16th) to reach 7 under before play was suspended for the day. Paula Creamer, Sweden’s Maria Hjorth and Spaniards Azahara Munoz and Beatriz Recari are at 6-under 65. Four others, including local favorite Christina Kim, finished at 66.

The tournament marks the return of the LPGA Tour to Kingsmill’s River Course after a two-year absence.

BMW Championship

CARMEL, Indiana (AP) ― Tiger Woods and Rory McIlroy seem to be spending a lot of time together lately. That includes the top of a busy leaderboard at the BMW Championship.

The biggest star in golf and his heir apparent put on a dazzling show Thursday at Crooked Stick, where the gallery caught a glimpse of the best players in the world for the first time since the 1991 PGA Championship.

McIlroy, flawless with his irons, birdied his last two holes for an 8-under 64 and was part of a four-way tie for the lead with Indiana native Bo Van Pelt, U.S. Open champion Webb Simpson and Graham DeLaet, the Canadian who is quietly becoming the Cinderella of these FedEx Cup playoffs.

Just three days after McIlroy won the Deutsche Bank Championship, he looked just as impressive in the opening round at Crooked Stick.

“He hits it great, putts it great and top of that, he’s just a really nice kid,” Woods said in some of his strongest praise ever for another player. “The game of golf is in great hands with him, and he’s here to stay.”

Woods, who finished two shots behind Monday in Boston, isn’t going away quietly. He was only sharp when it came to scoring, making enough birdies to stay in the game, including a 30-foot chip-in on his last hole for a 65.

McIlroy had every reason to be a little flat because of the short turnaround from the Labor Day finish. But that wasn’t the case at the BMW Championship, not with fans lined three-deep down the entire 10th hole to see him and Woods in the same group for the second time in three weeks.

KLM Open

HILVERSUM, Netherlands (AP) ― Graeme Storm of England shot a course record 7-under 63 to lead the KLM Open by two shots in the opening round on Thursday.

Storm birdied three of his closing four holes on the Hilversumsche course. His effort was three shots fewer than his previous best score in the premier Dutch event.

“I made the birdies when I gave myself the chances, and I managed to get up and down when I missed the greens,” he said.

Storm teed up in the Netherlands ranked 353rd in the world. He wants to end the season inside the top 115 to retain full European Tour membership next season.

Martin Kaymer, Frenchman Raphael Jacquelin and Paraguay’s Fabrizio Zanotti also surpassed the previous course record with their 5-under 65s to tie for second place.

Kaymer handed playing partner and Europe Ryder Cup captain Jose Maria Olazabal a reminder of his capabilities before heading to the cup at Medinah outside of Chicago.

Kaymer, who won the KLM Open two years ago, capped his round with an eagle at the 12th where he holed a 20-foot putt.

Europe teammate Peter Hanson of Sweden also produced a 68 in his last event before the Ryder Cup.

Obama says U.S. on road to recovery

CHARLOTTE, North Carolina (AP) ― Barack Obama urged wavering supporters not to give up on their dreams of change ― or on him ― as he accepted the Democratic Party’s nomination for president in what promises to be a tough race against Republican Mitt Romney.

Obama used his nationally televised speech on Thursday closing out the Democratic National Convention to try to revive the excitement that powered his first run for the presidency.

With just two months before election day, Obama needs to win over undecided voters, especially those who had been swayed by his inspiring message of hope and change in 2008, but now feel disillusioned after years of economic weakness and persistent political bickering.

“The election four years ago wasn’t about me. It was about you,” he said. “My fellow citizens ― you were the change.”

President Barack Obama and first lady Michelle Obama joined by their children Sasha (left) and Malia walks across the stage after President Obama’s speech to the Democratic National Convention in Charlotte, North Carolina on Thursday. (AP-Yonhap News)

He said the American people were the ones responsible for accomplishments on his watch, such as overhauling health care, changing immigration policies and ending the ban in gays in the military.

If they turned away now, he warned, “you buy into the cynicism that the change we fought for isn’t possible.

“Change,” he said, “will not happen.’’

Obama built on the message Democrats delivered throughout the convention: that America is on the road to recovery while Romney would revive failed policies, cutting taxes for the rich and slashing programs that give regular Americans a chance for a more prosperous future.

“If you reject the notion that this nation’s promise is reserved for the few, your voice must be heard in this election,” he said.

Republicans, who nominated Romney last week, argue that America’s high 8.3 percent unemployment rate is proof that Obama’s policies have failed and that the president’s spendthrift, big-government policies have hurt business and caused the federal deficit to soar.

The two candidates are locked in tight race. Polls show that Romney, a wealthy businessman and former governor of Massachusetts, is seen as the better candidate for improving the economy, while Obama is viewed as more likable and having a better understanding of everyday Americans.

Obama’s speech marked the climax of the three-day convention. First lady Michelle Obama highlighted the first day, talking about her husband’s humble roots and compassion for those living through tough times. Bill Clinton, the popular former president who led the United States during years of prosperity, gave a rousing speech Wednesday, vouching for Obama’s economic policies and urging Americans not to turn back to Republicans.

Preceding Obama was Vice President Joe Biden, who was formally re-nominated Thursday. Biden proclaimed in his acceptance speech that “America has turned the corner” after experiencing the worst economic crisis since the Great Depression.

Apple ups offensive against Samsung in Korea

Watchdog probes Korean firm’s alleged 3G patent abuse


The nation’s antitrust watchdog is looking into whether Samsung Electronics’ patented wireless networking technologies could violate a fair licensing agreement within the industry, following a complaint filed by Apple Inc. in June.

The investigation by the Fair Trade Commission is expected to cover the two companies’ market shares in the smartphone market, competition structure and the dominance of Samsung’s patents essential to the third-generation wireless networking.

A Samsung Electronics Co. Galaxy S III smartphone (top) and a Galaxy Nexus smartphone (bottom) are arranged for a photograph next to the Apple Inc. logo in Seoul. (Bloomberg)

“It is true that we have launched an investigation into the case. We are following our usual probe proceedings. But we cannot elaborate further on an ongoing investigation,” said Noh Sang-sub, an official at the FTC’s anti-monopoly bureau.

A Samsung spokesperson declined to comment on the antitrust probe, citing a company policy.

The widening legal fight between Samsung and Apple began last year when the Cupertino, California-based company sued the Korean tech giant over various patent and design right infringements.

And Samsung fought back with patent infringement lawsuits of its own, many of which involved the 3G technologies.

Apple has criticized the licensing fees offered by Samsung for being “too high,” claiming it is ready to pay for the patent use based only on fair, reasonable and non-discriminatory standards, or FRAND.

Before filing a complaint in Korea, Apple had already brought the issue to the European Union last year, prompting an antitrust investigation by regulators there.

Authorities both in Korea and Europe will focus on whether Samsung’s strategy of using the patent rights in lawsuits has abused its market dominance to discriminate its competitors.

Under the FRAND commitment, companies are obliged to offer their patented technologies in a fair way when they are considered “standards-essential” within the industry.

Samsung vowed to follow the legally binding FRAND in 1998.

After winning a crucial victory over Samsung in a U.S. court on Aug. 24 which included $1.05 billion in damages, Apple is intensifying its offensive against the Korean rival, including a request for a permanent ban of eight Samsung mobile devices in the U.S.

Industry watchers say the ongoing patent battle between the world’s top two handset makers will take a long time, with the first ruling unlikely to come out before late next year.



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

Samsung hits 20 million Galaxy S3 sales

Tech giant’s products to ‘come out strong’ despite legal challenges with Apple, analysts say


Samsung Electronics, the world’s largest tech company by revenue, saw record sales of its flagship Galaxy S3 in a short period of time, despite recent difficulties over legal issues with its rival Apple.

The company said Thursday that it sold more than 20 million Galaxy S3 smartphones globally in 100 days since its introduction in late May.

In the first 50 days, Samsung sold 10 million Galaxy S3 smartphones ― an average of 200,000 units per day. Some 6 million units were sold in Europe, 4.5 million in Asia, 4 million in North America and 2.5 million in Korea.

Samsung employees hold up Galaxy S3 smartphones displaying “20,000,000” following the newest model’s record sales worldwide. (Samsung Electronics)

Galaxy S3 beats the record of its former model Galaxy S2, which surpassed the 20 million mark in 10 months. The original Galaxy S achieved that in 17 months.

Two industry sources attribute this milestone to Samsung’s global marketing and brand power, as well as its smartphone’s unique and enhanced features, which had a strong impression on consumers.

Samsung’s smartphones have “come out strong” and will continue to do so given its global presence in the tech markets, said a source in the mobile industry.

To this end, its products are expected to receive continuous attention despite legal challenges with Apple, which recently won in a court battle over key patents and design in the U.S.

Samsung was the center of both media and public attention at the IFA consumer electronics trade show in Berlin, which, the source noted, shows that the tech company’s branding and product features still are perceived as innovative.

The Korean company showcased its all-new Galaxy Note 2 at the Berlin tradeshow where Samsung mobile chief Shin Jong-kyun said the new phone will achieve success beyond its previous model.

He added that the company will not give into adversity, and will continue to provide consumers with innovative products.

Rapid sales of Galaxy S3 have helped Samsung maintain its top position in the global mobile phone markets, it noted.

By Park Hyong-ki (hkp@heraldcorp.com)

Park-Ahn battle shapes up fast

Park Geun-hye, Ahn Cheol-soo

Consensus seen building among parties on probe into blackmail allegation

The race for the presidency is fast shaping up as a showdown between Saenuri Party’s Park Geun-hye and popular venture business guru Ahn Cheol-soo following a claim Thursday that Park’s camp blackmailed Ahn to block him from politics.

Consensus appears to be building among rival political parties toward a parliamentary investigation into the allegation raised by Geum Tae-seop, lawyer and adviser to Ahn.

The inquiry, if it happens, would be a double-edged sword for both presidential frontrunners, observers say.

If the claim is true, it could deal a blow to Park, reminding voters of the iron-fisted rule by her father, former President Park Chung-hee. Her association with the dictatorial regime is still dogging her campaign.

On the other hand, as the investigation proceeds, Ahn’s political capital largely depending on his integrity can be damaged if he is found to be involved in an irregularity, howerer small.

On Thursday, Geum told a news conference that Jeong Joon-gil, member of Saenuri’s communications team, threatened to unveil “bribery and woman problems” involving Ahn if he runs in the presidential election.

The main opposition Democratic United Party demanded a thorough probe into Saenuri and the government accusing them of illicit surveillance of Ahn.

“(The alleged threat made by Park’s camp) was like a dj-vu of the military dictatorship in the old days,” said DUP floor leader Rep. Park Jie-won in the Supreme Council meeting on Friday. “We must clear all doubts on a parliamentary level.”

Party chief Rep. Lee Hae-chan pledged to kick off a fact-finding committee.

Rep. Song Ho-chang, a DUP lawmaker and close aide to Ahn, also called for a parliamentary investigation.

“If proven true, the threat would be a violation of constitutional order, as well as an act of political terrorism,” Song said in a radio interview.

Saenuri officials, too, said they are willing to look into the developments, but with different intentions.

“The parliamentary investigation, if implemented, will not only clear the illicit surveillance allegations but also reveal the truth about Ahn,” said Baik Kee-seung, another member of the Saenuri communications team.

The professor has recently come under fire for negative rumors that contradict what he has said in books and in public.

The ruling camp, however, is not so willing to face a full-scale probe as the aftermath may deliver a blow to presidential hopeful Park.

“The issue is not subject to a parliamentary probe as Ahn is not a public official,” said Lee Sang-don, a member of the Saenuri political reform committee.

Rep. Park cautioned against escalating the dispute.

“It seems to me that (Geum and Jeong) are long-time friends and they had personal conversation over the phone,” she told reporters on Friday.

“I do not understand why (Geum) would exaggerate the meaning of their talk.”

Jeong claimed that he was only delivering his personal advice to Geum, that Ahn should be aware of the ongoing suspicions and prepare himself.

Geum, however, accused the right-wing of playing a political game to cover up the truth.

“The conversation was no ordinary small talk between friends,” he said.

“(Jeong) listed a series of false rumors against Ahn and threatened him not to join the presidential race.”

The professor himself has largely remained out of the mudslinging, saying little about the issue.

“The Saenuri Party is to make its explanations and I have nothing more to say about this,” said Ahn’s spokesperson Yoo Min-young.

“The judgment is the people’s to make.”

Despite his silence, observers speculated that Ahn would soon make his presidential bid, displaying his determination to stand against the Saenuri camp’s offensives.

“We take this as a sign that Ahn confirmed his plan to challenge the presidency,” said DUP spokesperson Jung Sung-ho on Friday.

By Bae Hyun-jung (tellme@heraldcorp.com)

US experts argue Apple is innovation killer

US experts argue Apple is innovation killer

Apple CEO Tim Cook This is the first in a series of articles analyzing and forecasting how the ongoing patent dispute between Samsung Electronics and Apple will unfold down the road. ― ED. Experts say US firm resorts to frivolous litigation to smolder smart creativity By Kim Yoo-chul Even U.S. officials and patent experts now see Apple's bid to ban the sale of Samsung Electronics smartphones as detrimental to keeping the information and technology industry innovative. Against this background, U.S. Judge Lucy Koh is being asked by Apple to triple the $1.05 billion in damages the jury in San Jose, Calif., told Samsung to pay the American firm in the patent suit. Her ruling is due on Sept. 24. However, there is growing evidence that suggests Apple is not as much of an innovator as has been believed with an internal memo showing it may have copied Samsung and LG products for its first iPhone. Government officials and patent experts in the United States argue that a complete sales ban on Samsung products will hurt innovation. On Thursday, John R. Read, chief of the antitrust division at the U.S. Department of Justice (DOJ), admitted that there was a possibility the verdict could be overturned. Usually, jury verdicts are difficult to overturn, though some adjustments are possible. Koh is currently in the process of reviewing a variety of related issues along with Samsung’s demand she overturn the jury’s verdict in the next several weeks. Read clarified that the verdict shouldn’t prohibit Samsung from selling its products in the United States as he believes innovation comes from healthy competition. ``For an important company such as Samsung Electronics, it can sell its products through competition and that will actually spur innovation. I hope Samsung Electronics can sell its products in the United States despite the verdict,’’ Read said at the Seoul International Competition Forum (SICF) organized by the Fair Trade Commission (FTC) in Korea. Right after the decision in California, Apple filed a new complaint against 17 Samsung’s Galaxy line devices, including its latest Galaxy S3 smartphone. It is aiming to get not only Samsung’s Galaxy S3 banned, but also targets Galaxy Note tablets and the company’s Galaxy Tab 10.1. A hearing regarding this ban has been scheduled for Dec. 6 by Koh. Read stressed his remarks were personal and did not represent the top US legal authorities’ views on the issue. Read is not the only senior US official that has expressed an opinion about the ongoing Samsung-Apple dispute, which is the biggest technology legal tussle in a history. Willard Tom, a general counsel at the U.S. Federal Trade Commission (USFTC), pointed out patent disputes are hard to decide on in court, but apparently defended the current jury system in the United States. ``In some specific legal cases such as issues relate to intellectual properties, verdicts from non-experts could raise controversy. There were debates 30 years ago. But any jurors who are reasonable can make decisions,’’ said the USFTC official. The jury foreman Velvin Hogan may have sold patents to Apple, while the jurors paid little attention to checking documents filed by Samsung that said the iPhone was influenced by Samsung and LG phones, said officials from Samsung and other patent experts in Seoul. Then there were the ``confident statements’’ by Hogan. He reportedly told the court that the jurors had filled out all of the 700-question form without needing to read the jury instructions. Critics say there’s nothing wiser than a clever engineer, however this might smack of an excess of confidence. Samsung still insists the Apple victory could limit consumer choice as it believes consumers don’t make mistakes. ``These are the key things that the presiding Judge Koh should consider before making her ruling that will come soon,’’ said an unnamed Samsung executive. Seoul Central District Court previously ruled Samsung didn’t infringe on Apple’s design patents, while the Tokyo District Court also sided with Seoul by dismissing Apple’s request for an infringement of its patents by Samsung. Cross-licensing? Albert A. Foer, the president of the American Antitrust Institute (AAI), stressed it’s not desirable for the Samsung-Apple dispute in the United States to bring a result that bans Samsung products. ``Stricter punishment for Samsung could hurt market competition and negatively impact consumers,’’ said the president, adding the company should have access to the United States to help companies accelerate product innovation. Samsung was asked by Apple to pay $30 for each Samsung device using Apple patents, which the Korean firm refused to accept. Samsung is also seeking a 2.4 percent royalty for each Apple device for using Samsung’s mobile patents. Reiterating Samsung Electronics’ earlier commitment to the fair, reasonable, and non-discriminatory terms or FRAND principle, Apple is saying that Samsung’s request is unacceptable and offered to pay less than a dollar for the patents as it believes they are standard essential patents. Foer said the two consumer electronics giants may settle the global disputes by paying royalties to each other or updating cross-licensing agreements, though he declined to elaborate further. He also defends the current jury system in the United States. ``In patent disputes, we have appeals courts. Also, we have experts who are highly knowledgeable in specific issues and themes. Whether it’s wrong or right to use common sense from reasonable jurors in rulings, that’s difficult for me to judge,’’ Foer said. ``The remarks by the influential government officials in the United States may mean the jurors siding with Apple is controversial,’’ said an official from the Korea Patent Attorneys Association by telephone. The Hague court will review a Samsung-Apple patent lawsuit, later today, while there will be four more cases heard in Mannheim between mid-September and mid-October. Two design-rights-related hearings are also to be held by the Dusseldorf Regional Court ― the first court in the world to ban the Galaxy Tab 10.1 ― in late September and late October.

Psy performs horse-riding dance at U.S. music awards ceremony

Psy performs horse-riding dance at U.S. music awards ceremony

Korean rapper-singer Psy performed the horse-riding dance of his hit single "Gangnam Style" during a U.S. music awards ceremony. Psy, whose real Korean name is Park Jae-sang, did the famous dance with comedian Kevin Hart on stage at the 2012 MTV Video Music Awards ceremony held in Los Angeles on Thursday night (U.S. WST), which was broadcast live. The singer has been the talk of the media in the last few weeks for the music video for "Gangnam Style" that has spawned various online parodies. The music video broke the 100 million mark in YouTube views on Tuesday. Questioned how he feels about the record number of views from Hart, the host of the ceremony, Psy answered in Korean that he feels really good and happy. "I wanted to describe my feeling in Korean once on this stage... It's knocking me dead," he said. He then performed the horse dance one more time before making his exit to great applause. On the back of the song's explosive popularity on the Internet, Psy signed a contract on international publishing rights with Universal Republic Records, a label owned by Universal Music Group, and a separate management contract with a label run by Scooter Braun Project, a company founded by Justin Bieber's manager Scooter Braun. Psy is on his second trip to the U.S. in a month to promote his new album to media and discuss details of the deal with Braun. He is scheduled to return home after staying in the country for about two weeks.(Yonhap)

Political mudslinging

Political mudslinging

Blackmail claim should be thoroughly investigated In a prelude to the fierce battle before the Dec. 19 presidential election, aides to the leading presidential candidate and her potential close rival traded barbs for the first time Thursday. Keum Tae-sup, a lawyer who now serves as an aide to software mogul-turned-scholar Ahn Cheol-soo, claimed that an official with the ruling Saenuri Party threatened to divulge dirty secrets about Ahn, including an extramarital affair, if he declares his candidacy for president. At a news conference, Keum said that Jeong Jun-gil, a public relations official from the election campaign of Park Geun-hye, the governing party’s candidate, called him early Tuesday morning and urged him to persuade Ahn not to run for the presidency. Keum said Jeong also threatened to disclose a bribery scandal implicating Ahn. But Jeong immediately denied Keum’s allegations as groundless, arguing he was quoted out of context and that the phone call was nothing more than a chat between friends. The two studied law together at Seoul National University. ``Keum and I have been friends for 20 years so I informed him of rumors circulating in the town. I just speculated that if Ahn enters the race, these things will come out and Saenuri will have no other choice but to raise the suspicions,’’ Jeong said, adding that Keum was clearly exaggerating his remarks and spinning them as evidence of attempted blackmail. At this point, we are not prepared to judge which side is right because their allegations conflict in many respects, but what’s clear is that Jeong acted carelessly. Since Keum and Jeong belong to rival election camps, the latter’s comments, especially on circulating rumors, could be interpreted as a threat to Ahn who has not announced his official bid yet. Therefore, it is necessary to get to the bottom of this incident, regardless of the real intention of Jeong’s remarks. If he is found to have made threatening comments during the phone conversation, the Saenuri Party should apologize to Ahn, the 50-year-old dean of the Graduate School of Convergence Science and Technology at Seoul National University, and the people and take measures to prevent similar incidents. Given that the Ahn camp tried to portray the phone call as a threat from the Park campaign, it seems almost certain that he will throw his hat into the ring sooner or later. Noteworthy is that Keum raised the possibility that police or other intelligence agencies may have provided the ruling party with information obtained through illegal surveillance, citing the way Jeong made the comments. If his suspicions turn out to be true, it will become a grave issue that could shake the whole presidential election. However, considering that Keum didn’t suggest any grounds for his suspicions, he may have gone too far. The Saenuri Party raised suspicions that the Ahn camp may have exaggerated light conversation between friends to divert attention from details of the IT mogul’s past that have surfaced recently. We don’t know the truth at this moment but Ahn, the founder of local anti-virus software company AhnLab, and his aides should know that verifying presidential candidates is certainly a necessary process to satisfy the people’s right to know and help voters make the right choice in the president poll. Nevertheless, verifications should not degrade into indiscriminate mudslinging or unfounded slander. Now voters hope to see the candidates face off over policies, particularly on how to let ordinary people live peacefully and safely.

Fitch ups Korea’s rating to AA-

Fitch ups Korea’s rating to AA-

Fitch Ratings, dual-headquartered in New York and London, elevated Korea's credit rating to AA- on Thursday. By Kim Tong-hyung Ratings agency Fitch elevated Korea’s credit rating to a par with Saudi Arabia and a notch above China and Japan, Thursday, citing the country’s economic strength and the stability of its financial market. The decision to raise the country’s long-term foreign currency issuer default rating (IDR) from ``AA-“ to “A+” came just weeks after Moody’s, a rival agency, elevated its rating on Korean government bonds from A1 to AA3. ``The upgrade reflects Korea's continued economic and financial stability in a volatile global environment and a strong macroeconomic policy framework including sustained fiscal discipline,’’ Fitch said in a statement. ``It also takes into account strong structural fundamentals including income levels and social and political stability.’’ As with Moody’s upgrade, Fitch’s decision came as a relief to Korean policymakers, who have been desperate for good news because they continue to struggle to cope with a blizzard of bad data on exports, consumption and household debt. Although Korea’s export-dependent economy has been rattled recently due to worsening global conditions, Fitch observed that the country’s economic stability is buttressed by the scope of monetary and fiscal policy flexibility. "Korea's ability to sustain fiscal prudence and to lower the general government debt-to-gross domestic product ratio would support the sovereign's ratings and help to head off longer-term fiscal pressure associated with population ageing. In contrast, a sharp deterioration in the banking sector's liquidity or asset quality, given the high degree of exposure to both leveraged households and small and medium-sized enterprise sectors, would be a negative development for Korea’s ratings,’’ Fitch said

Public firms’ assets largest in OECD, but debts alarming

When it comes to public firms’ net asset value, Korea is No. 1 in the OECD with a total of $177.7 billion, according to data from the organization. Korea was followed by France ($157.7 billion), Norway ($131 billion) and Italy ($105.4 billion).

Despite their growing, crucial roles in the nation’s economy, however, there are also concerns that their bigger size may undermine the nation’s fiscal stability because their debts are growing at an alarming level.

The combined debts of 286 state-run firms amounted to 464 trillion won ($409.2 billion) at the end of 2011, up 35 percent compared with three years earlier, according to the Finance Ministry.

Analysts who say public firms’ debts may threaten liquidity are urging them to slim down their business projects.

By Park Min-young (claire@heraldcorp.com)

Highlights of Obama's convention speech

Barack Obama on Thursday accepted his party's nomination to run for president in November. In a prime-time address he set out his view of the last four years, Republicans' record and offered a glimpse of a second term.

Here were some of the highlights:



ON HIS RECORD
"Hope has been tested by the cost of war, by one of the worst economic crises in history and by political gridlock that's left us wondering whether it's still even possible to tackle the challenges of our time."

"I won't pretend the path I'm offering is quick or easy. I never have. The truth is, it will take more than a few years for us to solve challenges that have built up over decades."

"Four years ago I promised to end the war in Iraq. We did. I promised to refocus on the terrorists who actually attacked us on 9/11, and we have. We've blunted the Taliban's momentum in Afghanistan and in 2014, our longest war will be over. A new tower rises above the New York skyline, Al-Qaeda is on the path to defeat and Osama bin Laden is dead."


ON THE ELECTION
"When you pick up that ballot to vote, you will face the clearest choice of any time in a generation."

"You know, in a world of new threats and new challenges, you can choose leadership that has been tested and proven."


ON HIS RIVAL MITT ROMNEY
"You don't call Russia our number one enemy -- not Al-Qaeda, Russia -- unless you're still stuck in a Cold War mind warp. You might not be ready for diplomacy with Beijing if you can't visit the Olympics without insulting our closest ally."

"Our friends down in Tampa at the Republican convention were more than happy to talk about everything they think is wrong with America. But they didn't have much to say about how they'd make it right. They want your vote, but they don't want you to know their plan.

"That's because all they have to offer is the same prescriptions they've had for the last 30 years. Have a surplus? Try a tax cut. Deficit too high -- try another. Feel a cold coming on? Take two tax cuts, roll back some regulations, and call us in the morning."


ON A SECOND TERM
"We can create a million new manufacturing jobs in the next four years."

"We can cut our oil imports in half by 2020 and support more than 600,000 new jobs in natural gas alone."

"(We can) recruit a hundred thousand math and science teachers within 10 years."

"(We can) help give two million workers the chance to learn skills at their community college that will lead directly to a job. Help us work with colleges and universities to cut in half the growth of tuition costs over the next 10 years."

"My plan will continue to reduce the carbon pollution that is heating our planet, because climate change is not a hoax. More droughts and floods and wildfires are not a joke. They are a threat to our children's future."

"I want to reform the tax code so that it's simple, fair and asks the wealthiest households to pay higher taxes on incomes over $250,000."

"My plan would cut our deficit by $4 trillion."


ON FOREIGN POLICY
"Europe's crisis must be contained."

"Our commitment to Israel's security must not waver, and neither must our pursuit of peace."

"The Iranian government must face a world that stays united against its nuclear ambitions."

"The historic change sweeping across the Arab world must be defined not by the iron fist of a dictator or the hate of extremists, but by the hopes and aspirations of ordinary people who are reaching for the same rights that we celebrate here today." (AFP)

Park and Ki among 25-man Premier League rosters

South Korean football stars Park Ji-sung of Queens Park Rangers and Ki Sung-yueng of Swansea City have made it to the 25-man rosters for the 2012-2013 season of the English Premier League.

The Premier League Board announced the 25-man squad lists of 19 out of the 20 top flight clubs Monday on its website.

Stoke City is the only squad that has not confirmed its list as it awaits a go-ahead from the board over its move for free agent Michael Owen.

Park is captain of QPR in his eighth season in Premier League.

Park Ji-sung

Ki Sung-yueng

Ki, a debutant in the league this season, was among the Swansea City’s 25 players for this season.

A 25-man roster lists the first-tier players whom each club confirms early in the season to use until next January.

The roster system was adopted last season in a bid to bring up English native players, after the English national team marked unsatisfactory performances in high-profile international events such as the World Cup and the European Championship.

Each club’s squad should have a minimum of eight homegrown players who regardless of age or nationality have spent three years in the youth system of a club in England or Wales before they reached the age of 21.

A club can have fewer than eight homegrown players, but this would reduce the size of its senior squad. Only 17 foreign players are permitted.

Clubs can use an unlimited number of under-21 players in addition to their 25-man roster.

Meanwhile, Park and Ki were evaluated by a U.K. sports news channel as outstanding additions to their new respective clubs.

Sky Sports, which classified 20 Premier League clubs into winners and losers in transfer terms Wednesday, placed QPR and Swansea City among winners including Manchester United and Stoke City.

Arsenal, which South Korean footballer Park Chu-young left for Spanish club Celta Vigo, was among the losers along with Manchester City and Liverpool.

By Chun Sung-woo (swchun@heraldcorp.com)

Big hallyu bash to take place in Gyeongju

Beast (Cube Entertainment)

‘Hallyu Dream Festival’ to gather Korean singers and amateur dancers from around the world for three days

Celebrating the “2010-12 Visit Korea Year,” Korea Entertainment Producers’ Association, Visit Korea Committee, and Gyeongju City are co-hosting the annual “2012 Hallyu Dream Festival“ from Sept. 21-23.

With events including “Family Dream Concert,” “K-Pop Cover Dance Festival” and “Hallyu Dream Concert,” the three-day festival will be held at Gyeongju Citizen Stadium in Gyeongju, North Gyeongsang Province.

The festival is expected to attract more than 20,000 audience including 5,000 fans from overseas.

Several trot, ballad and rock singers such as Bobby Kim, Nam Jin, Maya, Can, M4, Tae Jin-ah, Yurisangja, and Kim Do-hyang will perform on the the first day under the title ”Family Dream Concert.“ Popular singers from the ’70s, ’80s and ’90s will provide entertainment for the whole family.

The second day will be an international dance competition for K-pop fans from all around the world. ”The Cover Dance Festival,“ which invites K-pop fans from around the globe, will be held at the Gyeongju Arts Center. More than 1,750 amateur dance teams from 70 countries have submitted their video entries and the selected teams will be invited for the final competition on Sept. 22, according to the Korea Entertainment Producers’ Association.

Sistar (2012 Hallyu Dream Festival)

KARA (2012 Hallyu Dream Festival)

The last day’s “Hallyu Dream Concert,” will feature performances by 26 K-pop groups including Beast, KARA, 4 Minute, Afterschool, T-ara, Sistar, Secret, B1A4, BtoB, EXID, Davichi, Rainbow, Infinite, MBLAQ, A Pink, U-KISS, and Ailee.

In addition, the last day of the festival will also include hallyu stars’ fan meeting event.

“This year’s event will focus on narrowing the cultural gap between different generations,” said Kim Young-jin, president of Korea Entertainment Producers’ Association.

“Family Dream Concert” and “Hallyu Dream Concert” will air on Mnet on Oct. 4. Broadcasters KBS and Arirang TV will air “The Cover Dance Festival” at a date yet to be set.

For more information about the festival, call (053) 950-3333 or visit the website at www.hallyudreamfestival.or.kr.

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

Blackmail claim stuns politics

Ahn’s associate claims Saenuri official pressed the popular professor to give up presidential ambition


A ruling party official threatened to disclose bribery and an extramarital affair controversy surrounding professor Ahn Cheol-soo if he runs in the presidential election, Ahn’s aide said Thursday,

The bombshell allegation by Geum Tae-seop, a lawyer and advisor to Ahn, threw the ruling Saenuri Party into commotion prompting it to rush to its defense.

Despite the party’s immediate denial, the revelation is likely to deal a blow to the Saenuri Party’s presidential candidate Park Geun-hye and her campaign centered on reform and transparency.

In a news conference, Geum claimed that Jeong Joon-gil, a former prosecutor and member of Saenuri’s communications team, called him on Tuesday and threatened to leak Ahn’s alleged bribery and affairs with a woman if he joins the presidential race.

(left) (Yonhap News) (right)(Kim Myung-sub/The Korea Herald)

Ahn, though yet to officially decide whether to run in the December election, leads polls among potential candidates.

“Such an act by the Saenuri Party ahead of the presidential election is beyond imaginable. This is a clear challenge against the democracy and a threat against the people who long for a new change,” Geum said, accompanied by fellow associates of Ahn, including Democratic United Party lawmaker Song Ho-chang.

Thrown off the loop, the Saenuri Party immediately looked into the matter as Jeong flatly denied the allegation.

“I just told him that Ahn should be well prepared against many suspicions. I sought his understanding that as a public relations official of the Saenuri I will have to speak about them,” Jeong said at an emergency press conference soon afterward.

“It is extremely regretful that (Geum) would blow this up as if there is some sort of an organization behind me, or (say) that there was political surveillance,” Jeong said.

Park Geun-hye dismissed Geum's claim as groundless. “He is not in a position capable of making such a threat and put such a pressure. I can’t understand this at all,” she told reporters while attending the opening of Gwangju Biennale.

Jeong, who was named to the PR post just last week, offered to resign over the controversy and is considering taking legal action against Geum.

The Saenuri Party also held an emergency meeting of the communications team to discuss countermeasures.

“We would like to ask back whether Ahn, who has started to face questions of his quality by the media, is using the personal conversation with a friend politically,” Saenuri spokesman Lee Sang-il said.

Meanwhile, observers suggested the strapping announcement by Ahn’s side may signal that he has reached a decision to join the presidential race.

Ahn has been a close second to Park in various popularity polls for the past several months despite his hesitancy to formally enter politics.

They ranged from questionable investment and home purchases in the past to his drinking habits.

According to Geum, Jeong threatened to expose an allegation that Ahn bribed a Korea Development Bank manager in 1999 for investment, and that he was “having an adulterous relationship” with a woman in her thirties with a musical background.

“After checking with Ahn, all of these allegations have been confirmed to be completely untrue,” Geum said.

Geum also raised suspicion that the latest series of questions and rumors about the software mogul-turned professor may have been carefully orchestrated by the authorities.

“Based on recent circumstances, it is seriously suspected that the authorities are conducting an organized background check (on Ahn) and that the information is being passed over to the Saenuri Party,” Geum said.

The main opposition Democratic United Party was quick to use the claim to attack the Saenuri Party, indicating that it could seek to launch a parliamentary probe into the case and run an in-house fact-finding committee.

The DUP’s presidential contenders pressured the ruling party’s presidential candidate Rep. Park Geun-hye to “unearth the truth behind it,” underscoring that she may have to take responsibility should the claim prove to be true.

“If it is true, it is like we are seeing the revival of the dictatorship and the reign of terror,” said Yun Kwan-seok, spokesperson for the DUP’s leading contender Rep. Moon Jae-in, referring to the period from the 1960s to 1980s when general-turned-presidents ruled the country.

“Rep. Park should ascertain the truth and if that turns out to be true, she may have to take responsibility for that.”

Kim Yoo-jung, spokesperson for Sohn Hak-kyu, called for the ruling party’s immediate apology.

“If it is true, it is what makes us all appalled. In addition to the Saenuri Party going backwards in time, it seems to use the shameful (political) method of threatening somebody,” she said.

Jeon Hyeon-hee, spokesperson for Kim Doo-kwan, said that the alleged threat to Ahn reflects the Saenuri Party’s fear about the possible defeat in the upcoming presidential election.

By Lee Joo-hee (jhl@heraldcorp.com)

Lawmakers rapped for jacking up own salaries

Lawmakers rapped for jacking up own salaries

By Lee Tae-hoon Netizens are taking collective action to address the “brazen act” by lawmakers of increasing their salary by about 20 percent. The move came a day after Rep. Lee Hahn-koo, floor leader of the ruling Saenuri Party, revealed that there has been a hike in lawmakers’ pay. In 2010, then National Assembly Speaker Park Hee-tae proposed a pay hike, which was accepted by Reps. Kim Moo-sung and Park Jie-won, floor leaders of the ruling and the main opposition Democratic United Party, respectively. “Lawmakers of the 19th National Assembly are receiving 20 percent more in salary compared to those of the 19th Assembly,” he said in a meeting of senior party members. “We will be likely pressured to return our pay checks if we fail to do our job properly during the regular parliamentary session.” As of Wednesday afternoon, some 2,000 people signed up for an online petition that urges the public to voice concerns over lawmakers’ serving their own interests rather than those of the people in Daum’s Agora forum. Nearly 200 netizens left comments on the forum, many of which denounce the hypocritical behavior of parliamentary members and their failure to live up to a pledge to give up their privileges granted to them as lawmakers. “As always, lawmakers remain preoccupied by their own interests,” said a netizen with the ID “flying bird.” Another netizen pointed out that excessive authorities bestowed to lawmakers are allowing them to exploit tax payers’ money for their own benefits. “A new measure should be introduced to prevent lawmakers from handling legislation concerning their own interests,” said the netizen with the ID “River, Mountain and Ocean.” A different netizen lamented that he is puzzled by reluctance from legislators to hike the country’s minimum wage, which is currently 4,320 won ($3.9) per hour, while secretly raising their pay by two digits. “I demand to hike the minimum wage by 20 percent,” the netizen said. The majority of Saenuri lawmakers gave up their June salary after the leadership of the conservative party decided to lay down the "no-work, no-pay" principle, as a part of reform measures. An official of the National Assembly Secretariat says this year’s annual salary of lawmakers will be 147.4 million won, up 24 percent compared to 118.44 million won in 2010. The official noted that it will cost at least 638.6 million won of tax payers’ money each year to keep a lawmaker this year. “Lawmakers are allowed keep nine staff members, including two interns, to whom the government pays 393.1 million won per year,” he said. “On top of it, the government hands out 98.2 million won to each lawmaker in subsidies to assist their legislative activities, including 17.5 million won set aside for the running of a luxury car.” A civic group, Citizens United for Better Society (CUBS), expressed their disappointment over the pay hike, saying “the country has sent the fox to keep the geese.” “We find it lamentable that the lawmakers pledge for reform was a political show,” CUBS said in a statement. Apart from the paycheck, lawmakers are allowed to collect campaign funds of up to 150 million won per year that they can use to support legislative activities and other expenses required for running their office. Lawmakers can collect up to 30 million won of campaign funds during an election year.

leeth@koreatimes.co.kr

Copycats!

Copycats!

Apple’s memo indicates it copied products of Samsung, LG By Kim Yoo-chul Apple sued Samsung Electronics for copying its iPhone and a U.S. jury made a “patriotic” ruling ordering the Korean firm to pay $1.05 billion in damages. Now, what appears to be an internal memo from Apple appears to show it was the other way around ― the U.S. firm copying designs from Samsung and LG Electronics. The San Jose verdict was made without key evidence being shown to the nine-member jury. The evidence rejected by the judge for its late introduction concerned Samsung’s F700 smartphone model and LG’s Prada-branded phone, both cited in the Apple memo in question. It remains to be seen how this latest revelation will affect a ruling in the Netherlands and a ruling by U.S. Judge Lucy Koh on the San Jose verdict. The “3GSM Congress Trade Show Report” was written just after the Mobile World Congress (MWC) in 2007 by Apple’s marketing executives; a copy of which was obtained by The Korea Times. Apple’s first iPhone was introduced in June 2007, after the F700 had been released on the market. The MWC the premier smartphone show is held in the Spanish city of Barcelona and the 2007 congress drew a lot of attention. Apple never attends conventions, however, that year it showed up as everybody was talking about the iPhone. Its internal report is very descriptive and compares the specifications of its first iPhone ― thickness and length to screen size ­ with its competitors including LG’s Prada. Also the document includes the release dates for South Korean companies’ mobile phones. ``Apple benchmarked the surface designs of Samsung and LG phones for its first iPhone,’’ said a Samsung executive. Samsung submitted the internal Apple document to the trial in California and it was accepted by the U.S. federal Judge Lucy Koh; but the nine jurors apparently paid little heed to it. ``The Apple document could be crucial evidence that Samsung didn’t copy the iPhone in an appeals court or even the upcoming ruling by Judge Koh,’’ said another executive. However, according to Florian Mueller, a German-based intellectual property expert, it’s highly-unlikely that Koh will overturn the verdict of the jury, though some adjustments are possible,. As the jurors said some of Samsung smartphones including the Galaxy S, Galaxy S 4G, Showcase and Vibrant diluted ``trade dress,’’ the document could take on more relevance, he said. Trade dress is the design and appearance of a product together with the elements making up the overall image that serves to identify the product presented to the consumer. Apple alleges that Samsung intentionally confused customers, ``diluting’’ the former’s brand and connection to consumers. ``The latest document shows Apple’s first iPhone was somewhat influenced by Samsung and LG smartphones. Apple also blocked Samsung’s request to bring a former designer Shin Nishibori to testify. Some evidence is emerging Apple also copied from others,’’ said another Samsung executive. Nishibori had earlier said the iPhone was influenced by a Sony design. In other news, Samsung had a 43.6 percent share in the Western European smartphone market in the second quarter of the year, followed by Apple with 19 percent, according to data from market research firm International Data Corp. (IDC). Samsung sold 12 million phones, while Apple sold 5.2 million, IDC said. A year ago, Samsung’s share was 22 percent, while Apple had 21.1 percent. Another court ruling in the Netherlands is set for Sept. 7. Samsung has higher hopes of a win at the Hague court as rulings related to design patents are shared by other European countries. In the United Kingdom, Apple was ordered to publish statements in major newspapers there admitting that said Samsung didn’t copy Apple.

Super Junior reigns supreme

Super Junior reigns supreme

This is the 11th in a 15-part series on the stars and trends in “hallyu” or Korean wave, which is gaining global popularity in Southeast Asia and Latin America. The Korea Times produces this special project in cooperation with the Korean Foundation and CJ E&M. — ED. By Kim Ji-soo, Rachel Lee Young K-pop fans may have killed for the chance that we’ve had: to walk backstage on M Countdown, a popular cable television music program. Stepping inside Thursday, we saw immaculately-styled Sung Min, a member of Super Junior, whiz by us. Then up ahead, in the room with a paper sign showing the group’s name on the door, there was Shin Dong having his violet-colored hair styled up, as Si Won stepped out and with a manner worthy of a world star said hello to his interviewers. With its 10 members executing dance moves and addictive tunes in perfect unison, Super Junior is topping the charts in Korea, Taiwan and China, and selling out seats in the Tokyo Dome. But that hasn’t stopped the group and its talented members from evolving. When they debuted seven years ago, they were still veyr much music and fun loving boys with the youngest Ryeo Wook in his late teens. But up close in 2012, after the July release of their sixth album, the Super Junior we met were confident, suave young men evoking the album’s title, “Sexy, Free & Single.” “Yes, we thought about slowing down on activities like appearing on entertainment programs, or acting or other things. But it’s our appearances that have propelled us, in a synergistic way with our music, to our current popularity,” said Lee Teuk, the leader of the group. “We want to be able to continue as Super Junior for a long time to come; we would like to be national idols so I don’t think we will be slowing down on non-music activities.” In Korea, young popular K-pop stars are known as “idols” (pronounced ai-dols) in reference to their cult-like popularity. Super Junior commands some very devoted fans not only in Korea but throughout much of Asia. “Allow me to speak frankly. We have no rivals in Southeast Asia, and in particular in China,” said Ye Sung with a deadpan look. There is however a glint of humor in his eye, making one wonder if he’s partly laughing and joking about his own success. “I think the fans like our approachability and our good looks,” said Lee Tuek. “I’ve read a lot of what foreign fans write on Internet. That’s what they said, that we’re good looking,” Eun Hyuk chipped in. It’s at this point that they make it obvious that they are joking and bantering among themselves, having a good time in knowing that their hard work over the past several years has paid off. Since their debut in December 2005, they have worked doggedly not only in music but appearing in popular entertainment programs to increase the group’s exposure. They also performed in Southeast Asian markets, where other big-name groups like TVXQ were cautiously knocking on doors. “In the early 2000s, not many Southeast Asian nations were open to K-pop concerts. But after our performance, things changed. You can say that K-pop grew as we grew,” Lee Tuek said. Where does this confidence come from? It doesn’t only stem from knowing when Super Junior visited Thailand in 2006, they wreaked havoc at the airport which their fans deluged to prompt a near-“emergency” crisis. The power of the universality of music, heightened interest in Korea and collaboration with leading world musicians and choreographers also helps. “We also work with the world-class talent on our music,” the leader added expanding on how the group’s songs gain fame worldwide. The choreography for “Sorry Sorry” was created by Nick Bass and for “Sexy, Free & Single,” the choreography was done by Devin Jamieson. The fact that they have the most members — a total of 12, but currently only 10 are active as Hee Chul is serving his military duty while Ki Bum is focusing on acting — works to their advantage. The vivid individual activity of each member is what keeps the fans focused. By pursuing different interests, the members are showing to fans qualities that can get buried in the group. Members like Lee Tuek, Eun Gyuk, Kyu Hyun and Shin Dong frequently appear in entertainment programs as emcees and also as guests. “I would like to be a next-generation MC,” Lee Tuek stated boldly, only to laugh sheepishly when we noted how his eyes were burning with ambition. In a separate email answer, Kyu Hyun also did not hide his ambition of becoming the same. Members such as Si Won, Dong Hae and Ye Sung are focusing or want to focus on acting. Sung Min is nurturing dreams of starring in more musicals. “I would like to represent the face of Korea; so that people know there is a Choi Si-won in Korea,” Si Won said. Kang In, who has just returned from military service, said he would like to further grow in musicals and music writing, which was also the dream of the youngest member, Ryeo Wook in the separate email interview. However, they are not hanging up their coats on music in any way. They will perform in Jakarta on Sept. 22 as part of the “SM Town Live World Tour.” For more, visit visit www.enewsworld.com. Who is Super Junior By Rachel Lee With a straightforward, confident character, Super Junior is known for hits such as “Sorry Sorry” and “It’s You.” Formed by SM Entertainment in 2005 the K-pop boy band debuted with 13 members — Lee Tuek, 29, Ye Sung, 28, Kang In, 27, Shin Dong, 26, Sung Min, 26, Eun Hyuk, 26, Dong Hae, 25, Si Won, 25, Ryeo Wook, 25, Kyu Hyun, 24, Hee Chul, 29, Ki Bum, 25 and Han Geung, 28, Currently the group consists of 10 members. Hee Chul has been serving his military duty since last September. Ki Bum is on a temporary leave to focus on his acting career. He had appeared in tvN’s drama “I Love Italy” with actress Park Ye-jin. Other changes of the group members included Kyu Hyun joining in 2006 and Chinese member Han Geung, 28, officially leaving as of September 2011. Each member is truly passionate about music and has taken a variety of training programs including dance and emcee classes to improve themselves and pursue other career opportunities. Lee Tuek and Shin Dong have emceed a number of television shows — Lee for MBC’s “Jewelry House” and tvN’s “5,000 Questions” while Shin took the microphone for Mnet “The Beatles Code Season 2”and MBC’s “Show Champion.” They made a successful debut in December 2005 with the studio album “Super Junior 05.” Since their first release, the boys have endeavored to become a leading group by setting trends and constantly trying new things. Last year the boy band topped various music charts in Korea and overseas with their 5th album “Mr. Simple.” The most recent studio album titled “Sexy, Free & Single,” released in July, attracted much public and media attention for their soulful house music. The idol group has also proved popular in many Asian countries including Japan, Taiwan and China. Super Junior-M, a subgroup branched off from Super Junior, made a debut in April 2008 with the release of the studio album “Me.” A modified version of the album was released in Hong Kong, Singapore, and Taiwan in May 2008. Since the debut, the group has swept numerous awards including “Asia’s Most Popular New Group” at the Music King Awards in 2008, “Most Popular Group” at the China Music Festival in 2010 and Popular Group” at the Taiwan HITO Music Awards in 2012. Other accolades include the grand prize at music awards such as the 24th Golden Disk Awards in 2009 and the 21st Seoul Music Awards this year. A world tour “Super Show 4” in cities worldwide — including Seoul, Osaka, Taipei, Singapore, Macau, Bangkok, Paris, Shanghai, Jakarta and Tokyo — began last November for six months. Super Junior will perform in Jakarta on Sept. 22 as part of the “SM Town Live World Tour.”

janee@koreatimes.co.krrachel@koreatimes.co.kr

How car importers are ripping buyers off

How car importers are ripping buyers off

A businessman visited a Mercedes-Benz dealer in Gangnam in southern Seoul to ask about an E-Class model. Not happy with the price, he went to another outlet nearby to be told that he can pick it up 4 million won ($3,600) cheaper. He said, “It ‘s difficult to understand how an identical model can be priced at a difference of a few million won. It is ot like you can visit all the dealers in town.” Another potential customer in a large provincial city was interested in a Golf model from Volkswagon and wrote up the initial purchase contract Not convinced about the price, he went to another dealer and was told that it was 1 million won ($900) cheaper. He immediately called the initial contractor and said he wanted to call off the deal, only to be threatened that he could not do so. Foreign cars first made their existence felt about 25 years ago and you can see them even on the roads of provincial cities. The current estimate is that 120,000 units will be sold for a domestic market share of 10 percent, meaning one in every 10 new cars will be foreign. While this should indicate that imported vehicles are generally-traded products, the luxurious showrooms provide a different feeling. But many people who actually make purchases complain of regrets. With the implementation of the Free Trade Agreement with the European Union, prices initially fell by about 0.5 percent but those of popular models by companies like Mercedes-Benz increased by an average of 5 percent in each of the past two years.

2,014-pound burger sets world record

CARLTON (UPI) -- A Minnesota casino said it set a Guinness World Record by cooking up a 2,014-pound (913-kilogram) bacon cheeseburger.

The Black Bear Casino Resort near Carlton said the burger concocted Sunday handily defeated the previous record of 881 pounds, 13 ounces and a Guinness adjudicator was on hand to verify the record, the Duluth (Minn.) News Tribune reported Tuesday.

“What I saw today was a feat of remarkable teamwork that resulted in a world record burger that actually tastes really good,” Guinness adjudicator Philip Robertson said.

The burger was topped by 60 pounds of bacon, 50 pounds of lettuce, 50 pounds of sliced onions, 40 pounds of pickles and 40 pounds of cheese.

People examine a bacon cheeseburger measuring 10 feet in diameter and weighing more than a ton at Black Bear Casino Resort near Carlton, Minn., on Sunday. (AP-Yonhap News)

Psy signs a contract with U.S. record label

Singer Psy signed a contract with a major U.S. record label, according to his local agency YG Entertainment.

The 34-year-old, who recently created a sensation with his latest hit “Gangnam Style,” will be working with Island Def Jam Recordings, the agency said.

Upon the contract, the U.S. label is given the exclusive international publishing rights and management over Psy, YG Entertainment said. The label’s artists include Bon Jovi, Mariah Carey, Justin Bieber, Jennifer Lopez and Ryan Star.

Psy, whose title track of his latest album “Gangnam Style” has received enthusiastic reviews worldwide since its release in July, flew to Los Angeles on Aug. 15. There, he reportedly had a personal get-together with Island Def Jam Recording’s Scooter Braun, who also works as Justin Beiber’s manager.

Psy returned to Seoul on Aug. 25, but did not reveal anything about his meeting with Braun at the time.

However, it appears the contract was signed during his visit to the U.S. last month. YG Entertainment on Tuesday posted video footage of Psy and Braun drinking soju together in celebration of the moment of “making new history together.”

“We’ve been hanging out in California for four days becoming friends and we’ve come to an agreement to make some history together,” says Braun in the video.

Psy is scheduled to leave for the U.S. on Thursday, to attend the MTV Awards. He is the second Korean singer to be invited to the MTV Awards, after Rain in 2005.

Psy, virtually unknown outside of Korea, rose to international stardom with his YouTube music video featuring his signature “horse-riding dance.” The video has attracted 95 million views as of Monday night and is expected to break the 100 million mark soon.

2012 MTV Video Music Awards will air live at 8 a.m. on Friday.


By Claire Lee and Lee Hyun-jae
(dyc@heraldcorp.com (lhj137@heraldcorp.com)

Seoul City to continue to restrict large stores

Seoul Mayor Park Won-soon said Monday that the city government would continue to restrict the operation of so-called super-supermarkets and large retail stores run by conglomerates.

He said on a radio program that the city would restart the compulsory holidays for SSMs and large retailers again from November, after revisions to related bills by each district office are finished.

“The court rulings did not completely nullify the restriction on the operation of SSMs and large stores on the second and fourth Sundays,” Mayor Park said on the radio program.

The Seoul Administrative Court ruled in June that the city’s ordinance was a measure that jumped the gun as it did not seek consensus with the retail industry and provide a chance for them to have a say. Many large stores resumed their operations after the ruling.

“The bill is undergoing revision and will be announced in September. The compulsory shutdown will restart as early as November,” Park said.

He also emphasized the necessity of banning large stores from selling 50 items, such as cigarettes, soju and trash bags.

These are thought to be high-selling items since they are cheap or everyday necessities.

“The collapse of small business owners and merchants at traditional markets could cause social conflicts and enormous social cost. Co-prosperity is the trend of this era,” the mayor said.

Mayor Park recently met lawmakers in Seoul City’s districts and asked for support to revise the related SSM laws such as the Distribution Industry Development Act and the “Co-Prosperity Act” between large conglomerates and small and medium-sized enterprises, according to a city official.

When the proposed bill is passed, the right to review and to give permission for business operation, which is currently held by the Small and Medium Business Administration, will be given to the city mayor and local governors, according to the city official.

Large markets and SSMs will have to submit their plans a month before the start of their businesses to the city government and district offices in which they operate.

If their businesses are deemed to likely affect nearby small businesses, they will have to adjust their location and opening date, too.

If there is an objection to the adjustment, the SMBA will review the business plan.

The proposed bill will expand a registration system, currently run in traditional markets in the city to ban big businesses from buying the ownerships of others, to other markets nationwide.

Violators will be punished with one-year imprisonment or a fine of less than 50 million won ($44,000).

By Kim Young-won (wone0102@heraldcorp.com)

Assembly passes special probe into Lee’s retirement home scandal

The National Assembly on Monday approved the launch of a special probe into the controversy surrounding the now-scrapped plan to build President Lee Myung-bak’s retirement home.　

Lee’s son and aides had been accused of violating real estate laws and misappropriating taxpayers’ money in the purchase of a plot of land located in Naegok-dong, southern Seoul. They were cleared of charges by prosecutors.

The motion led by the main opposition Democratic United Party to open an independent counsel’s probe was approved at the Assembly’s plenary session. Of the 238 attending lawmakers, 146 voted in approval, while 64 opposed the bill and 28 abstained.　

Based on the bill, the DUP will recommend two candidates for the special prosecutor’s post, one of whom will be chosen by the president.

As a way to resume parliamentary schedule, the leadership of the two parties agreed provisionally last month to form the special investigation team. The Saenuri members, however, protested that giving the DUP the authority of selection was unconstitutional.

The probe will last for 30 days following a 10-day preparatory period. The investigation can be extended once for 15 days upon request.

President Lee’s son Lee Si-hyung and six others were accused of using about 1 billion won ($884,000) of government funds to buy the land.

The project was later scrapped upon elevated public criticism of the project that involved a joint purchase of the land worth 5.4 billion won by Lee’s son and the presidential office.

The prosecutors dropped all charges raised by the DUP in June, citing the lack of evidence of any illegal activities.
By Lee Joo-hee (jhl@heraldcorp.com)

Korea world’s 5th-largest arms exporter

South Korea was rated the world’s fifth-largest conventional arms exporter in 2011 with transfer agreements worth $1.5 billion, according to a report released last week by the Congressional Research Service of the U.S.

Between 2004 and 2011, the nation ranked 10th in the world in arms sales with $9.2 billion. It was the eighth-largest importer with $7.3 billion.

The U.S. continued to dominate the global market topping the list with $66.3 billion in weapons transfer agreements or a 77.7 percent market share.

Developing nations continued to be the primary focus of foreign arms sales activity by weapons suppliers. During the years 2004-2011, the value of arms transfer agreements with those nations comprised 68.6 percent of all such agreements worldwide.

(From news reports)