Millennium Development Goals: Not there yet

First published in The Korea Herald. The New Year is significant when it comes to the issue of sustainable economic growth and the promises made by world leaders 14 years ago that have not been fully kept. World leaders, in adopting the United Nations Millennium Declaration in 2000, pledged to create a more equitable world by 2015. However, today, more than ever before, it seems that the wealthiest individuals have become wealthier while the relative situation of people living in poverty has improved little. Disparities in education, health and other dimensions of human development still remain large despite marked progress in reducing the gaps. Various social groups suffer disproportionately from income poverty and inadequate access to quality services and, generally, disparities between...

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Korea should rethink trickle-down policies

First published in The Korea Herald. It is no secret that the Park Geun-hye administration and the ruling Saenuri Party are vehemently against raising corporate taxes, arguing that higher taxes could affect economic growth. They instead want to go easy on the corporate sector and the wealthy, all in the name of trickle-down economics ― a theory closely identified with Reaganomics, which states that decreasing tax rates especially for corporations, investors and entrepreneurs can stimulate production in the overall economy. So it may come as a surprise to them that the latest OECD working paper released on Dec. 9 strongly denounced the trickle-down theory while pushing for higher taxes on the rich and policies aimed at improving the lot of the bottom 40 percent of the population. Coming...

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Validity of deflation concerns in Korea

First published in The Korea Herald: With the latest consumer price index showing a further decline in Korea’s inflation rate, the scaremongers are having a field day. While some suggest that the country is staring at deflation, others are going so far as to suggest that Korea has to brace itself for a “lost decade,” similar to what Japan faced. A government report released on Tuesday showed that Korea’s consumer prices grew at the slowest pace in nine months in November. The CPI rose 1 percent last month from a year earlier, slowing from October’s 1.2 percent gain, the lowest rise since March. The Statistics Korea data showed that from a month earlier, the price index also inched down 0.2 percent, the third straight on-month decline. The core inflation, which excludes volatile oil and...

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Korean mortgages reveal tactical shift

First published in The Korea Herald. A lot has been written in recent months about Korea’s soaring household debt and its implications for the economy. Many experts seem to agree that the country is staring at a catastrophe waiting to happen, and call for the debt to be reined in if the country has to strengthen its economic fundamentals. Bank of Korea Governor Lee Ju-yeol is also of the view that efforts need to be made to control the growth of household debt, as it may dampen consumer spending ― even though the central bank’s decision to cut interest rates in August and October has indirectly promoted its growth. In the face of all this, Finance Minister Choi Kyung-hwan has stated that an increase in household debt would have a “limited” impact on the economy and the focus should be on...

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Win-win regional trade pact choices for Korea

First published in The Korea Herald. After dillydallying for several years, China has thrown the cat among the pigeons by aggressively pushing for the Free Trade Area of the Asia-Pacific at the recently concluded APEC summit in Beijing.Threatened by China’s urgency, the United States, which has been driving its own Trans-Pacific Partnership minus China, was seen making backroom maneuvers to dilute any reference to the FTAAP in the Leaders’ Declaration. It did manage to take out the deadline of 2025 that was in the draft and what was finally released had no real specifics, except that a collective feasibility study will be concluded by 2016. The final declaration noted: “we decide to accelerate our efforts on realizing the FTAAP on the basis of the conclusion of the ongoing pathways,...

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Shady projections on Korea-China FTA

First published in The Korea Herald. Now that the dust has settled, and the free trade deal between Korea and China has been sealed, it is time to look at the validity of various claims being made on its economic impact once it is implemented sometime next year. I am not referring to the merits or demerits of the FTA and the bruises to the agricultural sector, but to the economic projections that are being thrown around by the government officials. There is no denying the high expectations for the trade deal compared to the FTAs with the U.S. and the European Union, since China is Korea’s largest trading partner, with a massive market. Moreover, it is bang next door, and offers a definite advantage compared to other economic blocs. Under the deal, Korea will eliminate its tariffs on 79...

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Doing business in Korea ― going beyond ranking

First published in The Korea Herald. A World Bank report released last week ranked South Korea as having the fifth-best business environment among 189 countries this year. Commendably, the country also topped the Group of 20 emerging and advanced countries and came in third among Organization for Economic Cooperation and Development member countries. Between June 2013 and June 2014, “Doing Business 2015: Going Beyond Efficiency,” which measures 189 economies worldwide, documented 230 business reforms, with 145 aimed at reducing the complexity and cost of complying with business regulations, and 85 reforms aimed at strengthening legal institutions. Only Singapore, New Zealand, Hong Kong and Denmark ranked higher than South Korea. Not surprisingly, the Finance Ministry was elated. In an...

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Should South Korea join China-led AIIB?

First published in The Korea Herald. South Korea, Australia and Indonesia were conspicuous by their absence in Beijing on Oct. 24, when China, India and 19 other countries signed a memorandum of understanding to launch the Asian Infrastructure Investment Bank ― set to become one of the Asia-Pacific’s biggest lenders in the years to come. While there is still time for the three countries to make a decision ― the AIIB will be operational only next year ― and they are keeping their options open, there is a real danger that they may not enjoy the same clout as they would have if they had joined the other Asian countries in Beijing. The case is more so for South Korea, whose economy is closely linked to other emerging Asian economies. The Finance Ministry has officially stated that it has been...

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An ‘emotionally richer’ Templestay program

First published in The Korea Herald If you want to experience a Templestay program in Seoul, but do not have the time to venture far, there are four popular places to do so in the area ― Myogaksa Temple and Geumseonsa Temple in Jongno-gu, Bongeunsa Temple in Gangnam-gu and the International Seon Center in Yangcheon-gu. But not included in this list is one of the oldest temples in Seoul, Jingwansa Temple, a smaller but historically rich temple located just to the west of Seoul with a reputation for stellar temple food. The Seoul City government is now trying to raise awareness of its historical value and its importance of being one of the four “great temples” in the city, together with Bulamsa Temple in the east, Sammaksa Temple in the south and Seunggasa Temple in the north. To this end,...

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Unity in diversity: 2014 Incheon Asian Games

First published in The Korea Herald: The 2014 Asian Games, the largest sporting event on the continent, kicked off Friday for a 16-day run in Incheon, a metropolitan city west of Seoul. The event, governed by the Olympic Council of Asia, brings together some 10,000 athletes for a multisport spectacle second only in scale to the Summer Olympics. Korea has had the experience of hosting the Asian Games twice before ― first in 1986 in Seoul and second in 2002 in Busan, the second-largest city. This will be the biggest Asiad ever, with 439 events in 36 sports and disciplines, and the organizers have pledged to stage an impressive event that will showcase Asia’s unity in diversity, with all 45 participating countries marching as one. The official slogan is “Diversity Shines Here,” which represents...

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