The Korea Times

Financial globalization set in motion

Korea's first hedge fund expected to make a debut this year By Kang Seung-woo When it comes to the globalization of Korea’s financial industry, there has only been talk but little action. The nation’s globalization drive has been stalled in the face of the worldwide financial crisis triggered by the collapse of the U.S. investment banks (IBs). Many argue that it is time to step back and watch how the situation will unfold down the road as it is too risky to foster home-grown IBs to go abroad in times of a global debt crisis. However, the nation’s top financial regulator believes that it is high time for the Asia’s fourth-largest economy to speed up globalization efforts. “The financial business is backed up by the real economy and the Korean economy’s dependence on international trade is more than 90 percent, which translates to the real economy not being sustainable without the financial industry,” Financial Services Commission (FSC) Chairman Kim Seok-dong said in an interview with Business Focus. “For the financial industry to support the economy, it needs to evolve

Oct 7, 2011By Kim Jae-kyoung

Economy

Adam Smith trumps Keynes in Korea

Top financial regulator aims to create a market ruled by the law By Kim Jae-kyoung The world has been undergoing a transformation in its economic and financial systems following the 2008 global crisis triggered by the collapse of giant American investment banks, the icon of neo-liberal financial capitalism. The Wall Street crisis has brought many changes to regulatory policies and financial markets. Among them, what is most conspicuous is that John Maynard Keynes has suddenly trumped Adam Smith on the global scene, indicating that the look of markets is changing toward “bigger government” and “more regulation.” Under the Smith-led “laissez faire” capitalism ― an economic system that espoused minimum government intervention, maximum competition and free flow of capital ― the U.S. economy thrived for 30 years. However, Keynes, the British economist regarded as the father of modern macroeconomics, is all the rage now. Today’s global leaders, from U.S. President Barack Obama to French President Nicolas Sarkozy and German Chancellor Angel Merkel, have suddenly become Keynes

Oct 5, 2011By Kim Jae-kyoung

Economy

How Behrend sells Mercedes

By Oh Young-jin Ask anybody what is the secret of success for Mercedes Benz in Korea and most would first observe that it is not a secret before saying that the German carmaker owes the quality of its products to its status as top automobile maker. Put that question to Harald Behrend, the 51-year-old CEO of Mercedes-Benz Korea, and the chance is that you will notice a fleeting hint of hesitation before he utters “quality.” It is not that Behrend would disagree that the product tops the list of factors consumers would take into consideration in choosing what to buy. He would say that unless the quality of a product is guaranteed, it would be hard to market it. Even if the product is sold once, it can’t be sold on a sustainable basis. He also believes that any marketing strategies that help sell products of inferior quality are nothing but gimmicks. Let’s tweak around the quality-guarantees-sale equation and ask whether all good-quality products sell well. The answer to this new question would be “not necessarily.” And this answer can explain Behrend’s moment o

Sep 30, 2011By Kim Jae-kyoung

Economy

GMAT exercise 14

●Question 1. Sentence Correction Direction: Correct the underlined part Joachim Raff and Giacomo Meyerbeer are examples of the kind of composer who receives popular acclaim while living, often goes into decline after death, and never regains popularity again. A. often goes into decline after death, and never regains popularity again B. whose reputation declines after death and never regains its status again C. but whose reputation declines after death and never regains its former status D. who declines in reputation after death and who never regained popularity again E. then has declined in reputation after death and never regained popularity ●Question 2. Critical Reasoning Many people suffer an allergic reaction to certain sulfites, including those that are commonly added to wine as preservatives. However, since there are several wine makers who add sulfites to none of the wines they produce, people who would like to drink wine but are allergic to sulfites can drink wines produced by these wine makers without risking an allergic reaction to sulfites. Which of t

Sep 30, 2011By Kim Jae-kyoung

Economy

Understanding Northeast Asian Market

Eric Sung Him Wan, 31, is a would-be-graduate of the Yonsei University Graduate School of Business. He is now doing an Internship at Samsung Tesco. He has been exposed to many different cultures throughout his life. He is British but he was born in Hong Kong and pursued his high school education in the U.K. He got his undergraduate degree in Hospitality in Tourism in Switzerland. Why did you decide to take MBA course in Korea? I wanted to travel around the world and work in different places. After I graduated from International Hotel Management Institute in Switzerland, I worked in China for one year and in Los Angeles for another couple of years. After that I decided to do an MBA in Asia. I have always been fascinated by the growth of Korea over the past 60 years from a developing country to one of the world’s top economies. What made you apply to the MBA program of Yonsei University? I found out that Yonsei was one of the first schools to accept foreign students and that was the reason I decided to take the MBA program there. Half of the students are foreigners and a l

Sep 30, 2011By Kim Jae-kyoung

Economy

What’s wrong with the eurozone?

Greater efforts needed to arrest financial contagion By Robert Klemkosky The 17 countries that have adopted the euro as a common currency are now experiencing what the United States did in 2008-09, except the asset classes are different — sovereign debt for the eurozone versus housing in the United States. But the commonality is credit, given to countries versus homeowners. The basic problem with the eurozone from day one is that there is one monetary policy, run by the European Central Bank, but 17 fiscal policies that allow the countries to tax, spend and borrow independently. It is primarily the southern tier of countries of the eurozone — Greece, Portugal, Spain and Italy — plus Ireland that are of concern because of budget deficits and sovereign debt. All of their debt levels relative to GDP are higher than average, so these five countries have gone to austerity programs, a fancy name for cutting the size of the budget deficit. But these austerity programs may have exacerbated the problem by starting a vicious economic cycle for these countries;

Sep 30, 2011By Kim Jae-kyoung

Economy

Creating timeline for success

By Joe Clarkson Despite best intentions, it can be difficult to get sales incentive plans completed and rolled out in time for the new fiscal year. But revisiting your sales strategy and incentive plans regularly is imperative, and keeping a realistic timeline for redesign is key. A typical review and redesign process can take from four to 12 weeks, depending on the scope of responsibility. The number of business units involved, the complexity and diversity of current plans, and the availability and accuracy of pay and performance data must all be considered. You’ll also want to take into account the need, cultural or otherwise, to engage multiple stakeholders to build consensus and buy-in along the way. Realistic timelines The “We haven’t got time for all of this; let’s just come up with some new solutions” trap is a common one. The temptation to dispense with sound processes in the name of action is dangerous. It’s a lot like taking a road trip without an agreed-upon starting point or destination. Instead, before beginning an official review and redesign of your sa

Sep 30, 2011By Kim Jae-kyoung

Economy

Are incentives managing sales force?

Six warning signs on sales management and incentive compensation By Towers Watson Sales incentives are a powerful and invaluable tool in the sales management process, but they can derail effective selling when used inappropriately. What constitutes inappropriate use? Letting incentives do the job of the first-line sales manager. This occurs more commonly than most would think. And it typically happens in organizations where the first-line sales manager abdicates responsibility for managing the field sales force and relies solely on the incentive plan to communicate sales strategy and guide sales representatives’ (reps’) behavior and actions. While this kind of hands-off management can take place in any kind of sales organization, at any time, it is most typically seen in these situations — 1) a top sales rep with insufficient management skills is appointed as sales manager and receives no formal training and 2) a successful, long-tenured manager ‘takes it easy’ letting a seemingly well-oiled machine run itself. Obviously, the mere fact that you have a new first-

Sep 30, 2011By Kim Jae-kyoung

Economy

The best or nothing!

Mercedes-Benz seeking to expand presence in Korean market By Kim Jae-kyoung Over the past few years, the auto industry has been growing very fast both at home and abroad. There has been a rapid change in industry trends and consumer preferences, which has changed the look of the global car market. First of all, global premium brands, such as Mercedes-Benz and BMW, have paid more attention to comfortable, highly-efficient and economic cars, while a growing number of consumers from emerging markets have become able to afford low-priced models manufactured by luxury brands. South Korea is one of the representative markets embracing this transformation. In particular, along with Koreans’ changing attitude toward foreign cars, this trend has created a new market segment for premium auto manufacturers. Against this backdrop, foreign automakers have been in cutthroat competition to win market share in the world’s most competitive market. In the midst of the competition here, Mercedes-Benz, a famous luxury brand, is trying to penetrate into a niche market by modifying its posi

Sep 30, 2011By Kim Jae-kyoung

How Behrend sells Mercedes

Economy

GMAT exercise 13

●Question 1. Sentence Correction Direction: Correct the underlined part As its sales of computer products have surpassed those of measuring instruments, the company has become increasingly willing to compete for the mass market sales they would in the past have conceded to rivals. A. they would in the past have conceded to rivals B. they would have conceded previously to their rivals C. that in the past would have been conceded previously to rivals D. it previously would have conceded to rivals in the past E. it would in the past have conceded to rivals ●Question 2. Critical Reasoning In the United States, of the people who moved from one state to another when they retired, the percentage who retired to Florida has decreased by three percentage points over the past ten years. Since many local businesses in Florida cater to retirees, this decline is likely to have a noticeably negative economic effect on these businesses. Which of the following, if true, most seriously weakens the argument? A. Florida attracts more people who move from one state to another when they retire th

Sep 23, 2011By Kim Jae-kyoung

Kim Jae-kyoung

Read more

Financial globalization set in motion

Adam Smith trumps Keynes in Korea

How Behrend sells Mercedes

GMAT exercise 14

Understanding Northeast Asian Market

What’s wrong with the eurozone?

Creating timeline for success

Are incentives managing sales force?

The best or nothing!

GMAT exercise 13

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