Headlines, August 6, 2019

The Korean daily media headlines and humor

Tuesday, August 6, 2019

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.

N. Korea fires two short-range ballistic missiles into East Sea: JCS

North Korea fired two projectiles believed to be short-range ballistic missiles into the East Sea on Tuesday, South Korea's military said, in an apparent show of force against the ongoing joint military exercise between Seoul and Washington. The projectiles were fired at 5:24 a.m. and 5:36 a.m. from North Korea's southwestern county of Kwail in South Hwanghae Province, and both flew around 450 kilometers across the peninsula before splashing into the East Sea, the Joint Chiefs of Staff (JCS) said.

Japanese funds show no unusual signs despite trade row: watchdog

South Korea's financial watchdog said Monday it has found no indications of unusual behavior among Japanese investors in the South Korean capital market despite an escalating bilateral trade row. The neighboring countries have been locked in a trade dispute since Tokyo imposed curbs on exports of high-tech materials to Seoul on July 4, in apparent retaliation against a Seoul court ruling ordering a Japanese firm to provide compensation for wartime forced labor.

Moon touts 'peace economy' to overcome trade pressure from Japan

President Moon Jae-in stressed the need Monday to promote economic growth based on inter-Korean peace in order to counter external pressure, such as Japan's retaliatory trade restrictions. He said the so-called peace economy is a way for South Korea to catch up with Japan economically.

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

S. Korea Holds Emergency Meeting to Discuss N. Korea’s Projectile Firing

South Korea’s presidential office held an emergency meeting of security ministers to discuss North Korea's latest launch of unidentified projectiles early Tuesday. Presidential spokesperson Ko Min-jung said the meeting was led by National Security Office chief Chung Eui-yong in an underground bunker at the presidential compound at 7:30 a.m.

US Designates China As Currency Manipulator Amid Escalating Trade War

The United States has designated China as a currency manipulator, the latest salvo in an escalating trade war between the world's two biggest economies. The U.S. Department of the Treasury announced the decision in a statement Monday, saying the designation was made by Treasury Secretary Steven Mnuchin under the auspices of President Donald Trump.

S. Korean Stocks Open Lower Following China's 'Currency Manipulator' Designation

South Korean stocks opened sharply lower on Tuesday as Washington's designation of China as a currency manipulator raised global financial market volatility. The benchmark Korea Composite Stock Price Index(KOSPI) shed nearly 49 points or two-point-five percent, falling to one-thousand-898-point-41 in the first five minutes of trading.

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

S. Korea to take steps to stem market volatility

South Korea said Tuesday it will take bold steps to stabilize its financial markets in case of increased volatility, signaling Seoul's possible intervention in the foreign exchange market. The move came after the United States designated China as a currency manipulator in an escalating trade war between the world's two biggest economies.

Korea's current account surplus surges to 8-month high in June

South Korea's current account surplus reached an eight-month high in June on a goods account surplus and record high returns from foreign investment, central bank data showed Tuesday. The country's current account surplus came to US$6.38 billion in the month, the highest since October when the country posted a $9.35 billion surplus, according to the preliminary data from the Bank of Korea (BOK).

Imports from Japanese beer, cars dip in July amid boycott

South Korean imports of Japanese beer and cars tumbled in July due to a boycott of Japanese products here amid a bilateral trade spat with the neighbor, data showed Tuesday. Imports of Japanese beer nose-dived 45 percent on-month to US$4.34 million last month, according to the data from the Korea Customs Service (KCS). From a year earlier, the amount was down nearly 35 percent.

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

Korean won dips further amid looming currency war

The South Korean won continued to sink to new lows against the US dollar Tuesday amid escalating trade tensions between the world's two largest economies that now appear to be set to include a currency war.

US designates China a 'currency manipulator' as trade war rages

The United States on Monday formally accused China of manipulating its currency, marking the second major escalation in the two countries' spiraling trade war in just 24 hours. Washington's sudden move came the day China allowed the yuan to fall below 7 to the dollar for the first time in about a decade -- provoking US President Donald Trump's ire and sending global equities markets diving into the red.

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

US labels China a currency manipulator

The U.S. Treasury Department labeled China a currency manipulator Monday after Beijing pushed down the value of its yuan in a dramatic escalation of the trade conflict between the world's two biggest economies. The decision, which came hours after President Donald Trump accused China of unfairly devaluing its currency, marks a reversal for Treasury: In May, it had declined to sanction China for manipulating its currency.

Korea to take steps to stem market volatility

Moon urges efforts to outdo Japan

President Moon Jae-in continued to hit back at Japan's growing trade offensive against South Korea, stressing that attempts to impede the country's growth will fail. "Japan can never get in the way of our economic leap," Moon said at the start of a weekly meeting with senior presidential secretaries at Cheong Wa Dae, according to a press pool report, Monday afternoon. "If anything, it will only stimulate our determination to become an economic superpower."

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

Stock Market Reels as Trade Wars Intensify

Financial markets in Korea reeled Monday as the U.S.-China trade dispute flared up again and Japan struck Korea from a whitelist of preferred trading partners. Foreigners and other investors dumped Samsung Electronics, LG Chem and other blue-chip Korean stocks, sending the Korea Composite Stock Price Index below the key 1,950 points level, while the won weakened to a three-year low of over W1,200 against the U.S. dollar.

Moon Argues for Pan-Korean Economy to Surpass Japan

President Moon Jae-in on Monday proposed stepping up economic cooperation with North Korea to generate a counterweight to Japan's economic might and become more independent of the regional giant. "If the South and the North can create a peace economy through economic cooperation, we will immediately be able to surpass Japan's [economic] superiority," Moon claimed in a Cabinet meeting.

Chinese, Taiwanese Firms to Benefit from Korea-Japan Row

China has begun taking advantage of an escalating spat between Korea and Japan now Korean manufacturers are faced with a halt in supplies of key components. China's largest display maker BOE hopes to supply OLED panels to Apple to replace Samsung Display in the event of a shortage due to curbs on materials from Japan.

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

[News analysis] The Abe-nomics clock is ticking towards decline

South Korea-Japan relations appear headed into a long-term crisis of confrontation between equally matched powers after Japan fired an opening salvo of economic warfare with its decision to remove South Korea from its “white list.” While Japanese Prime Minister Shinzo Abe and hardline associates who have joined him in his “Korea-bashing” agenda appear to have the aim of dealing a blow to South Korean industry and bringing about a political capitulation from Seoul, analysts say the economic situation in Japan suggests that Abe himself is facing a ticking clock.

S. Korea officially decides to pursue “corresponding measures” against Japan

The South Korean government’s official decision on Aug. 3 to pursue “corresponding economic measures” against Japan, including its removal from South Korea’s “white list” of countries receiving expedited export reviews, has observers watching to see what specific response plan emerges. While Seoul is currently weighing response measures that extend beyond strategic items into areas such as tourism, food, and waste, analysts are calling for a practical and carefully calibrated approach to avoid a potential boomerang effect on the South Korean government and businesses.

ARF chairman issues statement cautioning against protectionism and disrupting free trade

A chairman’s statement containing the results of an ASEAN-related multilateral meeting in Bangkok on Aug. 1–3 included a message warning about protectionism and stressing the importance of free trade. The inclusion is seen as reflecting the results of an international public relations campaign by the South Korean government, with a focus on spreading the word with the international community regarding Japan’s economic retaliation measures against South Korea.

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

Moon calls for ‘peace economy’ to counter Japan’s retaliation

President Moon Jae-in has stressed the “urgent need to create a peace-driven economy” to counter Japan’s trade restrictions on exports. “The Japanese government holds advantages over the Korean economy in terms of the size of its economy and the domestic market. The realization of a peace economy through inter-Korean economic cooperation will allow us to immediately catch up with Japan’s advantages.”

Precision machine industry predicted to be hit hard by Japan’s trade restrictions

Japan’s export curbs against South Korea are expected to hit the precision machine industry the hardest, while automobile, chemicals, and steel industries have a higher chance of surviving the trade restrictions with enhanced competitiveness over time, industry watchers said.

Cicada noises make people hard to sleep at night

Cicadas’ singing in the summer in Korea is nothing new but they have become louder and are making noises both in the day and at night for the recent years. This is because Korean blackish cicadas (picture), which originate from Southeast Asia, have rapidly increased in number in urban areas since 2000. Unlike robust cicadas, which are usually active at temperatures below 27 degrees Celsius, Korean blackish cicadas make noises as loud as 75-95 decibels at temperatures above 27 degrees Celsius. This is much higher than the noise standard of residential areas (65dB during the day and 60dB at night).

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

[Editorial] U.S. Mentions Deploying Missiles to Asia a Day After Withdrawing from the INF Treaty

On August 3, U.S. Defense Secretary Mark Esper announced U.S. wishes to deploy ground-based medium-range missiles to Asia. Secretary Esper shared such thoughts during his trip to Australia and added that he wanted to see the deployment within “months,” hinting at wishes of early deployment. The New York Times reported that the medium-range missiles were likely to be deployed to Japan or South Korea. The U.S. mentioned the deployment of medium-range missiles to Asia the day after pulling out from the Intermediate-Range Nuclear Forces (INF) treaty, which bans the development and deployment of medium-range missiles. The U.S. is quickly executing its strategy to besiege China. South Korea, which already faces a pile of diplomatic and security issues including disputes with Japan, is forced to remain alert.

[Editorial] Departure from Japanese Parts, Materials, and Equipment Should Be Done Fast and Effectively

On August 4, the government, Cheong Wa Dae and the Democratic Party of Korea held a meeting of senior officials and decided to use all policy measures available, such as the budget, legislation, taxes and finances to strengthen the nation's competitiveness in materials, parts and equipment. They plan to increase the government budget to expand investment in technology development, ease regulations, and reduce the burden on corporations to foster a hundred specialized companies, which will be included in the Global Value Chain (GVC) over the next five years. They promised to revise related bills to constantly support companies developing materials, parts and equipment, to form a committee on the competitiveness of materials, parts, and equipment at a government-wide level, and to promptly promote relevant policies. The latest measures were timely, covering a full range of support measures that the government can turn to in the short and medium term.

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

Kosdaq falls below 600 for first time in almost 3 yrs, kicking off sidecar

South Korea’s secondary Korea Securities Automated Quotation (Kosdaq) market fell below the 600 mark on Monday for the first time in nearly three years on worsening trade conditions with renewed tariff war between the United States and China and escalated tensions between Korea and Japan.

Ssangyong Motor to go into self-dieting amidst worsening sales and liquidity woes

Ssangyong Motor Co., South Korean unit of India’s Mahindra & Mahindra Ltd., is readying to carry out a massive organizational restructuring, including shedding up to 20 percent of its senior executive workforce, to turnaround its business suffering from mounting losses and slumping sales.

S. Korean gov’t to seek advice from conglomerates on measures to cope with Japan’s trade curbs

Kim Sang-jo, presidential chief of staff for policy, will meet with senior executives of South Korea’s top five conglomerates as early as this week to discuss measures to deal with possible fallout from Japan’s trade restrictions on exports to Korea.

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Lee Kyung-sik edt@koreapost.com