Headlines, October 29, 2018

Monday, October 29, 2018

Round-up of important news from major Korean dailies and from international media today:

The Korea Post media (www.koreapost.com) in English, (www.koreapost.co.kr) in Korean.

U.S. nuclear envoy arrives in S. Korea for N.K. nuke talks

U.S. Special Representative for North Korea Stephen Biegun arrived in South Korea on Sunday to discuss cooperation with South Korea over North Korea's nuclear disarmament, Seoul officials said. He was accompanied by Allison Hooker, a National Security Council official who specializes in Korea affairs, and Kevin Kim, a senior advisor at the Department of State.

Supreme Court reaffirms prison term for ex-Hanjin Shipping chairwoman for insider trading

The Supreme Court on Oct. 29, 2018 finalized an 18-month prison term for a former head of the now-defunct Hanjin Shipping Co. for selling off her family's stake in the firm using insider information. Choi Eun-young, 56, was convicted in December last year of unloading the stakes held by her and her two daughters after she learned that Hanjin's creditors decided against the additional liquidity support. She avoided about 1 billion won (US$875,270) of possible losses.

S. Korea's suicide rate dropping but still highest among OECD states

South Korea's suicide rate remains the highest among developed nations despite declines in recent years, comparative statistics from welfare authorities indicated on Oct. 29, 2018. An analysis of health data from the Organization for Economic Cooperation and Development (OECD), conducted by the Ministry of Health and Welfare and the National Health Insurance Service, showed that as of 2016, 25.8 out of 100,000 South Koreans committed suicide.

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KBS (http://world.kbs.co.kr/english/news/)

'Police Didn't Investigate Jang Ja-yeon Scandal Properly'

The prosecution said a police team which probed a 2009 sexual abuse case involving the late actress Jang Ja-yeon did not investigate the case properly. A special independent panel at the prosecution looking into past controversial cases said on Oct. 28, 2018 in a news release that a number of important evidence showing Jang's schedule and acts were not seized during the police search of Jang's house and vehicle in March 2009.

S. Korea Ranks Near Bottom in OECD in Rate of State Preschoolers

South Korea ranked near bottom among advanced nations in the rate of children using state-run kindergartens and other pre school institutions. According to the minor opposition Justice Party's analysis of a report by the Organization for Economic Cooperation and Development (OECD), 21-point-one percent of South Korean children, between the ages of three and five, attended state-run preschool institutions in 2016.

Education Authorities to Hold Meeting on Kindergartens' Possible Shutdown

Education authorities will hold an emergency meeting on Sunday afternoon to discuss measures to deal with a possible shutdown of private kindergartens amid calls for efforts to address irregularities in preschool facilities. In the meeting, the Education Ministry and education offices of 17 cities and provinces will check the situation of private kindergartens moving to suspend operations or refusing to admit new students in protest of a set of government measures aimed at improving their transparency.

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Yonhap (http://english.yonhapnews.co.kr)

Gov't to set up 500 bln-won fund to stabilize bourse

The government will actively work to stabilize the equity market by setting up a 500 billion-won (US$438.4 million) fund that can be injected into local stocks, the country's financial regulator said on Oct. 29, 2018. Kim Yong-beom, vice chairman of the Financial Services Commission (FSC), made the remarks at a meeting with senior executives from brokerages, as he sought to reassure investors amid a sharp decline in stock prices.

Heads of brokerages to hold emergency meeting on market volatility

Chiefs of South Korean securities firms will hold an emergency meeting on Oct. 29, 2018 in the wake of the recent stock market rout, a local investment association said. The heads of major brokerages will gather later in the day "to assess recent market situations and discuss ways to better respond," the Korea Financial Investment Association said in a release.

ABS issuance falls 13.5 pct in Q3: data

The issuance of asset-backed securities (ABSs) in South Korea fell 13.5 percent on-year in the third quarter, hit by a decline in sales of government-led mortgage funds, data showed on Oct. 29, 2018. The value of ABS issues totaled 10.9 trillion won (US$9.5 billion) in the July-September period, compared with 12.6 trillion won for the same period last year, according to the data from the Financial Supervisory Service (FSS).

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The Korea Herald (http://www.koreaherald.com)

South Korean seniors tighten purse strings as life expectancy rises

A growing number of seniors in South Korea spending less than before, as the focus is shifting toward savings in preparation for a longer retirement. According to a new government report released by the National Assembly Budget Office on Oct. 28. 2018, South Korean elders are spending considerably less of their incomes than their American and Japanese counterparts.

Despite hurdles, preparations needed for NK resources development: experts

Despite uncertainties stemming from UN sanctions against the North, preparations should still be made for resources development in North Korea, such as setting up an inter-Korean cooperative body, personnel exchanges and joint research, South Korean mineral experts have said. Speaking at a forum last week, they said approaches to North Korea for co-development should focus on persuading the North of its benefits.

‘US, South Korea falling for Kim Jong-un’s tricks’

South Korea and the US are falling for North Korean leader Kim Jong-un’s “tricks,” a US expert said, warning of “emerging gaps” between the allies amid ongoing negotiations with the reclusive country. His warning comes amid concerns over South Korea’s efforts to expand cross-border exchanges at a time when North Korea-US talks aimed at moving forward on the denuclearization of the Korean Peninsula appear to be at a standstill.

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The Korea Times (http://www.koreatimes.co.kr)

N. Korea official visits Moscow to possibly discuss summit

North Korean Vice Foreign Minister Sin Hong-chol arrived in Moscow, on Oct. 27, 2018, to meet Russian Deputy Foreign Minister Igor Morgulov this week, according to the Russian foreign ministry, on Oct. 28. Sin's trip comes after several Russian diplomats hinted at North Korean leader Kim Jong-un's visit to Moscow in line with Russian President Vladimir Putin's invitation.

FSS strives to create favorable fintech ecosystem

Fierce competition is ongoing among firms in the nation's rising fintech industry. Not only are financial firms starting to apply related technologies to attract more customers but also IT firms and startups are tapping into the financial market utilizing their knowhow. Online auction website and shopping mall Interpark has continuously expressed its interest in establishing an internet-only bank.

Skepticism prevails in US over North Korea's denuclearization

While the South Korean government is eagerly pushing forward with inter-Korean diplomacy, there is a prevailing sense of skepticism in the U.S. over Pyongyang's intentions, analysts said. "U.S. President Donald Trump and South Korean President Moon Jae-in provided a number of concessions to North Korea and got little to nothing tangible denuclearization in return,"

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Chosun Ilbo (http://english.chosun.com)

2 Koreas Complete Disarmament in Joint Security Area

North and South Korea are set to open the Joint Security Area in the border village of Panmunjom to civilians and tourists as the area is now disarmed. The Defense Ministry here said on Oct. 28, 2018 that the two Koreas and the UN Command completed the joint verification of disarmament in the JSA and confirmed faithful implementation on Oct. 27.

Access to Daycare Centers Encourages Having More Kids

More local daycare facilities may be the country's best chance of increasing its chronically low birthrate, a report suggests. The National Assembly Budget Office last week released analysis of surveys between 2009 and 2013 of 2,150 households who had a baby in 2008 asking if they intend to have more.

Stranded Korean Tourists Start Returning from Typhoon-Hit Saipan

Korean tourists trapped on typhoon-hit Saipan are returning home safely. The Pacific resort island was hit by typhoon Yutu on Oct. 24, 2018, causing the local airport to halt operations and stranding many tourists from around the world. The government sent military transport planes to the island on Oct. 27 and Oct. 28 to fly 491 Korean tourists to the neighboring island of Guam, from where they flew back to Incheon International Airport aboard chartered flights.

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HanKyoReh Shinmun (http://english.hani.co.kr)

An elderly woman’s terrifying memories of being tortured by soldiers at 12 years old

“When the rats came into the cellar looking for rice, the cat would run over my back after them. While it was scary enough just being in that cellar without any electricity, what was even more frightening was the rats and cat running around on top of me. It made me shudder, as I hunched down there by myself.”

A campaign by Jeju residents for proper food

“Imagine how famished the people of Jeju were at the time of liberation. There wasn’t any food to eat on Jeju Island. We needed the US military administration to give us rations to survive, and what we got from them was Western snacks. So we blocked the chocolate and demanded the distribution of food rations.”

Trump, The Elections, and Korea

On November 6, U.S. voters will go to the polls in the first nation-wide opportunity to support or reject Donald Trump, his party, and his policies. Until recently, it looked as though the opposition Democratic Party would win back the House of Representatives and have a good shot at seizing the Senate as well.

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The Dong-A Ilbo (http://english.donga.com/)

U.S. Treasury discloses photos of N. Korea’s illegal oil transshipping

The U.S. Treasury Department has put increasing pressure on North Korea by revealing photos of its vessels illegally transshipping goods. It warned that Pyongyang would pay a hefty price for its illegal cyber activities as well. The Bureau of International Security and Nonproliferation of the department released on Friday (local time) on its twitter account nine photographs of North Korean vessels transshipping illegally on the sea this May and June.

Korean companies lead artificial marble market

International airports are a battlefield where interior design finishing material businesses fiercely compete against each other to win contracts. Airports determine the first image of countries or cities, which is why they are extremely picky when it comes to finishing materials. A business insider said, “Materials used in main airports of advanced countries are regarded as quality products.”

KAIST launches research science rocket Woorisae-2

A small and nimble rocket with the length of 2.2 meters and the diameter of 0.2 meters soared into the sky at 10:43 a.m. Sunday in Saemangeum, Jeonbuk province (photo). The rocket belched fire for around seven seconds and rose to 900 meters high with the engine turned off before releasing a parachute and coming down to the coastal waters of Saemangeum. It was Woorisae-2, the science rocket (sounding rocket) developed by KAIST.

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JoongAng Ilbo (http://koreajoongangdaily.joins.com/)

Koreans start their return from Saipan

Of the 1,600 Korean tourists stranded on Saipan last week after a super typhoon swept the Western Pacific island, at least 141 returned home over the weekend. The rest are expected to come back via multiple flights through today, according to Korean authorities. A Korean military plane was dispatched to the U.S. territory on Oct. 27, 2018 to transport Korean tourists to nearby Guam, the Ministry of Land, Infrastructure and Transport said, as Saipan’s airport may not start normal operations anytime soon.

Incheon to get on-arrival duty-free store in May

The Incheon International Airport Corporation is planning to open Korea’s first on-arrival duty-free store in May next year. The airport operator announced on Oct. 28, 2018 that it has commissioned a study to look into how it can optimize the duty-free service, which will be concluded by the end of the year. The study will focus on deciding the location and size of the shops in order to maximize customer experience by reducing congestion.

Former court affairs deputy arrested over abuse of power

Lim Jong-hun, the former deputy head of the National Court Administration, the Supreme Court of Korea’s administrative affairs body, was arrested Saturday for allegedly assisting the former chief justice as he abused his power and delivered rulings that curried favor with the previous administration. The Seoul Central District Court, which issued his arrest warrant, said that Lim may destroy evidence. Lim was questioned by the prosecution on Oct. 28, 2018.

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The KyungHyang Shinmun (http://english.khan.co.kr/)

Boldly Promote Measures Strengthening Accountability and the Public Nature of Kindergartens

On October 25, the government and the Democratic Party of Korea announced measures to strengthen the public nature of kindergartens in order to end corruption in private kindergartens. The measures focused on two main points. First, the government will increase the number of public kindergartens and second, enhance transparency in the accounting of private kindergartens. The measures also include ways to prevent actions that go against educational principles, such as the unilateral closure and suspension of private kindergartens by the interest group.

Ratification of Pyongyang Declaration: An Issue to Be Resolved by Dialogue, Not by Legal Battle

As President Moon Jae-in ratified the Pyongyang Declaration and the inter-Korean military agreement, the main opposition Liberty Korea Party (LKP) is looking into legal actions, calling the president’s ratification an ‘act beyond the constitution.’ In an emergency press conference, LKP Floor Leader Kim Sung-tae said, “The Panmunjeom Declaration is waiting for the National Assembly’s consent for ratification. In this context, it does not make a juridical sense that the ratification of the Pyongyang Declaration and the inter-Korean military agreement does not require the consent.”

Short-term, Makeshift Job Plans Cannot Solve Unemployment

The government announced its ‘support plan for innovative growth and job creation’ on October 24. To sum up, the plan largely has two main ideas. One is to spend 15 trillion won for small and medium enterprises (SMEs) and High and Potential Enterprises (HPEs) to achieve innovative growth. The other is to create 49,000 customized jobs by the end of this year, in various forms including the internships at public agencies. It seems that the government came up with this additional employment measures recognizing the gravity of current unemployment.

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AJU Business Daily (http://eng.ajunews.com/korea)

Hyundai Motor agrees with Chinese institute to set up hydrogen fund

Hyundai Motor, a frontrunner in the development of hydrogen fuel cell electric vehicles, agreed with a Chinese research institute to set up a $100 million hydrogen fund for investment in startups in South Korea and China. Hyundai Motor said on Oct. 29, 2018 that a memorandum of understanding on the Hydrogen Energy Fund was signed in Beijing with Tsinghua University, a top Chinese school known for research in engineering and computer science, and the Beijing-Tsinghua Industrial R & D Institute.

SK Telecom checks Gangnam and Ansan as first areas to commercialize 5G service

Candidates for the first fifth-generation (5G) commercial service of South Korea's top mobile carrier, SK Telecom, include Gangnam, a finance and fashion district in Seoul, and Ansan, a southwestern industrial city. South Korean companies hope to complete preparations for 5G services by the end of this year. SK Telecom has successfully carried out the so-called "First call" to check if data is being normally transmitted or received.

Woongjin buys back Coway water and air purifier brand

South Korea’s second-tier conglomerate Woongjin Group will buy back Coway Co., a water and air purifier maker which was sold to a local investment firm five years ago when the group was reeling from financial woes caused by rapid business expansion. Woongjin ThinkBig, the group's education service unit, said in a regulatory filing Monday that it would buy a 22.17 percent stake in Coway for 1.685 trillion won ($1.478 billion). The acquisition will be completed on March 15 next year.

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Maeil Business News Korea ( http://www.pulsenews.co.kr/)

SK E&C wins additional order for Yau Ma Tei road project in Hong Kong

South Korea’s SK Engineering & Construction Monday said that its consortium has won an order to build a road in Hong Kong in Yau Ma Tei West, Kowloon in a follow-up order after its winning bid for the eastern part of the Yau Ma Tei project valued at $1.08 billion in total. SK E&C owns a 49 percent stake in the consortium formed with Build King Construction, a Hong Kong construction company.

JW Pharm buys 25 stake in U.K.-based Argonaut Therapeutics

South Korea`s JW Pharmaceutical Corp. has become the second largest shareholder of Argonaut Therapeutics, a British developer of next-generation of anti-cancer drugs based on epigenetics. JW Pharmaceutical said Monday that it entered into a strategic investment agreement with Argonaut Therapeutics after the Korean company took up 25 percent stake in the British lab at 2 million pounds ($2.6 million) to become the second largest shareholder after Oxford Sciences Innovation, a British venture capital investment firm.

Doosan Infracore to supply small G2 engines to China’s Baoli

South Korea’s construction heavy equipment manufacturer Doosan Infracore Co. announced on Oct. 28, 2018 that it will supply 12,000 small-sized diesel engines to China’s KION Baoli Forklift Co., a subsidiary of the world’s second largest forklift maker KION Group based in Germany.

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