Headlines, November 1, 2018

Thursday, November 1, 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.

S. Korea, U.S. sign strategic guideline on combined defense after OPCON transfer

The defense chiefs of South Korea and the United States on Oct. 31, 2018 signed a strategic guideline on how their combined defense mechanism will operate after the planned transfer of wartime operational control (OPCON). The guideline, called "Alliance Guiding Principles," contains a set of commitments to continue to station U.S. troops in Korea, retain the allies' Combined Forces Command (CFC) and the U.N. Command, and have a South Korean four-star general lead the CFC.

Allies to decide on next year's combined exercises before Dec. 1: defense minister

South Korean Defense Minister Jeong Kyeong-doo said Wednesday that Seoul and Washington will make a decision on plans for next year's major exercises before Dec. 1 after a working-level review. Jeong made the remarks after the 50th annual Security Consultative Meeting (SCM) with his U.S. counterpart, James Mattis, where the two sides finalized their decision to suspend the annual Vigilant Ace air exercise originally slated for December.

KEPCO CEO eyes biz expansion abroad

The state-run Korea Electric Power Corp. (KEPCO) is accelerating its overseas presence as part of a move to diversify its portfolio and create new growth drivers, its chief executive said. "KEPCO's business model centers on providing electricity in the domestic market and its overseas business has been an additional source of profit, but we are looking at promising new business opportunities broad," the company's CEO, Kim Jong-gap, told reporters on Oct. 31, 2018.

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

Housing Price Growth in Seoul Slows Significantly

The rate of growth for housing prices in Seoul has slowed significantly compared to last month driven by a string of antispeculation measures announced on September 13th.

According to the Korea Appraisal Board, the price of housing units in Seoul rose zero-point-51 percent this month on average from last month. In September, it grew one-point-25 percent.

Hyundai Asan Seeks to Visit N. Korea for Mt. Geumgang Tourism Anniversary

The South Korean operator of the Mount Geumgang tour program says it is seeking permission from the government to contact North Korea about the upcoming 20th anniversary of the suspended project. Hyundai Asan revealed on Wednesday that it hopes to discuss preparations for an anniversary event with the North Korean side via the joint liaison office.

S. Korea Begins Simulation-Based Military Drill

South Korea has begun an annual command post military exercise. The Joint Chiefs of Staff said the Taegeuk Exercise launched at the Joint Warfighting Simulation Center(JWSC) in Suwon, Gyeonggi Province on Oct. 29, 2018 and will run through on Nov. 2, 2018.

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

Mattis supports inter-Korean military agreement

U.S. Defense Secretary James Mattis on Oct. 31, 2018 threw his support behind a recent inter-Korean military agreement aimed at reducing tensions and preventing accidental clashes, amid reports that Washington opposes some parts of the landmark accord. Mattis and his South Korean counterpart, Jeong Kyeong-doo, held the annual Security Consultative Meeting (SCM) at the Pentagon to discuss alliance issues, including the transfer of wartime operational control (OPCON) and the proposed suspension of a joint air exercise.

S. Korea seeks to loosen regulations to rev up capital market

The government and the ruling Democratic Party (DP) on Thursday discussed ways to revitalize the capital market, including easing regulations on private equity funds (PEFs) and helping startups raise funds more easily. "There is a need to enhance the capital market system to induce funds into promising non-listed companies and venture firms," Hong Young-pyo, the DP's floor leader, said at the start of the meeting.

S. Koreans rank No. 1 in OECD in hospital visits: data

South Koreans rank first among major economies in terms of visits made to hospitals in 2016, government data showed on Nov. 1, 2018. According to the data by the National Health Insurance Service, South Koreans visited the doctor's office an average of 17 times in 2016, much higher than the average of 6.9 times by citizens of Organization for Economic Cooperation and Development (OECD) member countries.

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

Ruling on forced labor poses dilemma to S. Korea

Seoul is facing a tough task of respecting the country’s judiciary while mitigating diplomatic fallout with Tokyo in the wake of the Supreme Court’s decision that a Japanese firm should compensate four South Koreans forced into labor during Japan’s 1910-45 occupation.The Supreme Court upheld on Oct. 30, 2018 the lower court’s ruling that ordered Nippon Steel & Sumitomo Metal Corp. to pay 100 million won ($88,000) each to the plaintiffs, who worked at its steel mills between 1941 and 1943, recognizing the victims’ individual rights for compensation despite a 1965 treaty.

Minister under fire as opposition chokes on NK’s naengmyeon remark

Taking issue with inaction against a remark by a high-ranking North Korea military negotiator, the main opposition Liberty Korea Party submitted a proposal for the dismissal of Unification Minister Cho Myoung-gyon on Oct. 31, 2018.

October timeline for inter-Korean cooperation pushed back

The timeline for a chain of inter-Korean projects is being pushed back with meetings and events planned for October failing to take place, amid Washington’s apparent concerns that the Koreas’ ties may be outpacing its denuclearization talks with Pyongyang. In early October, the two Koreas held high-level talks and drew a rough timeline to carry out the key projects mentioned in the agreement reached between their leaders in September.

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

USFK to station here after OPCON transfer: minister

The United States Forces Korea (USFK) will continue to be stationed here even after South Korea regains wartime operational control (OPCON) of its troops from the U.S. military. Defense chiefs from Seoul and Washington agreed on this at their Security Consultative Meeting (SCM) on Wednesday (local time) as well as the transfer of the leadership of the United Nations Command (UNC) to a South Korean general.

Speaker hopes Kim Jong-un will address Assembly

National Assembly Speaker Moon Hee-sang hopes North Korean leader Kim Jong-un will make a speech at the National Assembly in response to President Moon Jae-in's Pyongyang speech in front of North Korean people. "As President Moon Jae-in also gave his speech in front of 150,000 Pyongyang citizens, I think Kim wouldn't have a problem making his remarks at the Assembly," Moon said.

'Sanctions relief key for North Korea denuclearization'

The United States and international society need to offer interim sanctions relief for North Korea, as such a phased step is essential to keep the regime's dialogue momentum moving forward, according to experts familiar with the inter-Korean affairs."Denuclearization and sanctions relief should not be approached in an all-or-nothing way," Charles Armstrong, professor of Korean Studies at Columbia University, said in a recent interview.

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

Workers Face Earlier Retirement Than Expected

Korean workers face retirement more than five years earlier than they expected, a study suggests. The study was published by Samsung Life Insurance last month. In a straw poll of people aged between 25 and 74, the 500 who already retired said they had expected to retire at around 62 but in fact retired at 57. They mainly retired early due to health problems (33 percent) or because they were laid off (24 percent).

Report: N.Korea Readies Nuclear, Missile Sites for International Inspectors

South Korea's spy agency has observed preparations by North Korea for international inspections at several of its nuclear and missile test sites, the Yonhap news agency said on Oct. 31, 2018, citing a South Korean lawmaker. Kim Min-ki of the ruling Democratic Party told reporters the South's National Intelligence Service observed North Koreans "conducting preparation and intelligence activities that seem to be in preparation for foreign inspectors' visit" at Punggye-ri nuclear test site and the Sohae Satellite launching ground.

Samsung Posts Record Profits in Q3

Samsung posted record quarterly operating profits of more than US$15.4 billion in the third quarter of this year, the company said on Oct. 31, 2018. That is a near 21 percent jump from the same period last year and some $61 million more than its provisional estimate released earlier this month.

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

Supreme Court decision on forced labor tragically late due to judicial corruption

The South Korean Supreme Court has produced a final ruling demanding that a Japanese company compensate victims of forced labor during the Japanese occupation. In an Oct. 30 full bench ruling presided over by Chief Justice Kim Myeong-soo, the court affirmed the original ruling in the second appeal on a case filed by Lee Choon-sik and other victims of forced labor demanding damages from Nippon Steel and Spumitomo Metal Corporation (formerly Japan Iron and Steel Co.), dismissing the Japanese company’s renewed appeal and ordering the payment of 100 million won (US$87,800) each to the plaintiffs.

Government to build massive renewable energy plant in North Jeolla Province

The South Korean government announced its plan to build a vast 4GW renewable energy plant on a tract of reclaimed land on the west coast known as Saemangeum on Oct. 30. The plan calls for 3GW of solar energy and 1GW of wind power. The North Jeolla provincial government applauded the effort as a production measure against climate change and economic stagnation, but regional environmentalists and residents have criticized the project as being “all show” and full of empty promises.

Kim Yong-chol to meet with Pompeo in US next week

A high-level meeting between Workers’ Party of Korea vice chairman and North Korean United Front Department Director Kim Yong-chol and US Secretary of State Mike Pompeo will reportedly be taking place in the US around the later part of next week. Discussions in preparation for a second North Korea-US summit expected to take place early next year appear poised to gain momentum.

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

Seoul, Washington agree to form ‘Future Command’ led by S. Korean military

South Korea and the United States have agreed to a plan to establish the Future Command of Combined Forces, one of the biggest issues in transfer of wartime operational control (OPCON) from Washington. The two allies have reached agreement on the structure of the command, in which the South Korean military will assume the commander of the Future Command of Combined Forces, which will replace the Republic of Korea-U.S. Combined Forces Command that currently commands both the South Korean military and the U.S. forces stationed in Korea.

Park Myung-bae’s traditional furniture exhibition

Cabinet maker Park Myung-bae (age 68), national intangible cultural heritage No. 55, who have devoted his life in making traditional furniture for 50 years, will hold his fourth individual exhibition at the Hangaram Art Museum (exhibition hall No. 7) at the Seoul Art Center in Seocho-gu, Seoul from Nov.2, 2018.

Hyundai, Kia to reveal solar charging system

Hyundai Motor and Kia Motors are heralding a new era of solar-powered cars. Hyundai and Kia on Oct. 31, 2018 unveiled their solar charging system technology via their own media channel HMG Journal and HMG TV. The solar charging system will serve as an auxiliary power supporting the main power source.

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

South, U.S. set up a new consultative body

Seoul and Washington will launch a working group to coordinate their approaches to North Korean denuclearization, sanctions implementation and inter-Korean cooperation, the U.S. State Department announced on Oct. 30, 2018. The two sides made the decision during a trip to Seoul earlier this week by Stephen Biegun, the U.S. special representative for North Korea, who met with Lee Do-hoon, the South Korean Foreign Ministry’s special representative for Korean Peninsula peace and security affairs.

Japan rejects top court’s forced labor verdict

Korea’s top court’s decision Tuesday ordering a Japanese steel company to pay compensation to Korean forced laborers is expected to bring about diplomatic repercussions, especially because the ruling questions the premise of the 1965 Seoul-Tokyo treaty that normalized bilateral ties. Japanese Foreign Minister Taro Kono expressed his government’s “concern” over the ruling in a phone conversation with Korean Foreign Minister Kang Kyung-wha on Oct. 31, 2018.

Nonregular employment on rise

The number of nonregular employees in Korea has reached an all-time high despite President Moon Jae-in’s campaign promise to improve the quality of jobs. According to a Statistics Korea study released on Oct. 30, 2018, nonregular workers in the country totaled 6.61 million as of August. That’s 36,000, or 0.5 percent, more than a year ago. A total of 1.1 million more people are now working under less favorable conditions, including lower wages and fewer benefits, than in 2008.

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

The Unresolved Past Between South Korea and Japan Resurfaces after 53 Years

On October 30, the Supreme Court made a unanimous ruling in favor of the victims of forced labor during the Japanese occupation. South Korea and Japan had failed to completely settle past issues, and restored diplomatic ties after loosely patching things up with the 1965 Treaty on the Basic Relations between the Republic of Korea and Japan. The latest ruling brought the side effects of an incompletely settled past to the surface after 53 years.

"No Collective Action" by Korea Kindergarten Association: Now Towards Restoring Education in Our Kindergartens

The Korea Kindergarten Association held a symposium on strengthening the public nature of private kindergartens to discuss the government's measures for private kindergartens, but reportedly, the group is not considering any collective action, such as a shutdown. It is good to hear that we no longer have to worry about a possible "childcare crisis." However, the association repeated its existing argument claiming that the corruption in the accounting of private kindergartens was due to an insufficient system and that private kindergartens were private property.

An End to Chaebol Intracompany Trade and Gapjil Is the Start of a Fair Economy

In an interview with the Kyunghyang Shinmun, Kim Sang-jo, chairman of the Fair Trade Commission said that he would begin to tackle the problems of internal transactions and unfair subcontracting. Kim said, "These two issues are the two major axes in chaebol reforms," and added, "Based on the investigation so far, we will have these two actions receive the judgment of the Fair Trade Commission." At the same time, Kim cited Samsung and SK of the four major groups as the targets and suggested the implementation of restrictions.

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

Animal rights group to sue entrepreneur for forcing employees to kill hens

An animal rights group threatened to sue a famous venture entrepreneur known for the development of a giant manned walking robot for forcing employees to kill hens with a Japanese samurai sword or a compound bow at a company workshop.

Shinsegae secures final deal to attract investment from foreign firms

South Korea's retail conglomerate, Shinsegae, signed a final contract with two foreign firms to draw an investment of one trillion won ($877 million) into its integrated e-commerce division aimed at nurturing online shopping malls.

LS Mtron develops new 5G antenna for autonomous driving

LS Mtron, a South Korean producer of industrial machinery and high-tech components, developed an omnidirectional fifth generation (5G) antenna that could be used for autonomous vehicles. Commercial production will begin next year.

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

Hyundai Heavy Industries Q3 OP beats market consensus, but shipbuilding biz remains weak

South Korea’s largest shipbuilder Hyundai Heavy Industries Co. returned to operating profit in the third quarter, beating market expectations for loss for four straight quarters thanks to strong offshore plant business, but its mainstay shipbuilding business grappled with loss due to rising raw materials and one-time costs.

LG Electronics hands over administrative tasks to robots

LG Electronics Inc. is actively adopting the artificial intelligence-based automation technology to office work, making software robots handle mundane, repetitive tasks for employees to boost work efficiency in the back office.

Hyundai Department Store opens its first duty-free space in Gangnam

South Korea’s retail conglomerate Hyundai Department Store Group opens its first duty-free store at its branch in Samseong-dong, southern Seoul, on Nov. 1, 2018 as a newcomer into the lucrative duty-free race dominated by two other retail names Lotte and Shinsegae.

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