Economic impact of terrorist strikes

First published in The Korea Herald. The recent dastardly terrorist attacks in Paris shocked the world, with countries scampering to tighten security in preparation for any eventuality. Even countries like Korea that have had no terror attacks from Islamic jihadists have gone on high alert, and the administration is tightening measures to make sure that no untoward incident happens. While the nation’s security, human casualties and material losses are important aspects of these inhumane attacks, what should also be considered is the economic impact of a terrorist strike -- especially on countries like Korea, which are highly dependent on a few sectors. A study released last month by ratings agency Moody’s shows that terrorist attacks significantly weaken economic activity, with long-lasting...

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Take gov’t projections with truckloads of salt

First published in Korea Herald. A recent media statement issued by the Seoul Metropolitan Government that got wide coverage had me in splits. According to the note that was issued to mark the 10th anniversary of the Cheonggyecheon Stream Restoration Project -- which removed an elevated freeway and transformed it into a lush walkway through the heart of Seoul -- which was faithfully picked up by all of local media without any question, 190 million tourists annually visit the landmark. “Some 190 million Koreans and tourists are estimated to have visited the stream since its restoration by former President Lee Myung-bak on Oct. 1, 2005. The number is expected to exceed 200 million by early next year.” These figures were obviously cooked up by some government official and can be understandable...

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Does Korea benefit from FTA with EU?

First published in The Korea Herald.  July 1 marked the fourth anniversary of the EU-Korea free trade agreement, which entered into force in 2011. It was touted as the first of a new generation of FTAs, going further than any previous agreements in lifting trade barriers. Being also the EU’s first trade deal with an Asian country, Korea was expected to benefit immensely.The agreement eliminated duties for industrial and agricultural goods in a progressive, step-by-step approach. The majority of import duties were removed already when the FTA entered into force. On July 1, 2016, import duties will be eliminated on all products...

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Pros and cons of Korea’s minimum wage law

First published in The Korea Herald. The minimum wage in Korea has been set at 6,030 won ($5.30) for next year after weeks of debate, although the labor unions boycotted the government-led talks on the final day. Labor union representatives walked out of a meeting of the Minimum Wage Council ― a trilateral committee of employers, employees and labor market experts to set the minimum wage through discussion ― on Wednesday. They were upset with the suggestion that there should be a cap on the increase in the minimum wage. However, the council went ahead and finalized an increase on the following day. The Minimum Wage Act stipulates that at least one-third of all representatives on the council can decide on the rate if any party refuses to attend the negotiations more than...

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