Opinion - The Korea Times

President's Pyrrhic victory

By John BurtonThis newspaper published a story earlier this month with the headline, “Ruling camp feud puzzles foreign diplomats,” referring to the clash between President Park Geun-hye and YooSeong-min, the now former ruling party parliamentary floor leader.The article suggested that some foreign diplomats basically didn’t have a clue why Park and Yoo were fighting because they assumed that since the two leading politicians were from the same party, they would naturally cooperate on pursuing the same government policies.Such an attitude may be understandable, but it ignores the fact that much of Korean politics is driven by personal ambitions rather than by issues or ideology. The Korean media understands this. Its political coverage normally focuses on who’s up and who’s down, with little attempt to explain the underlying political context. No wonder foreign diplomats are perplexed.But the Park-Yoo feud was significant for several reasons. One was that it represented a last-ditch attempt by Park to prevent herself being permanently consigned to lame du

Jul 15, 2015By John Burton

John Burton

Is the Korean media toothless?

By John Burton A colleague asked me the other day an interesting question: How much impact does the Korean media have on government policy?It is frankly a difficult question to answer. To most Anglo-American observers, the Korean news media appears to be beholden to the country’s political and business elite and does not play the same role as the fourth estate in the U.S. or U.K. as an independent referee.The question can also be asked from another perspective: Whether the Korean media can generate creative ideas that lead to policy formation? It is hard for me to think of any recent examples, although I welcome evidence to the contrary.What is puzzling about this situation is that the Korean news media theoretically wields enormous influence. The circulations of the Chosun Ilbo, Dong-a Ilbo and Joongang Ilbo are among the biggest in the world since they are truly national in terms of market penetration.But most of the media is reluctant to adopt a crusading impulse to mount sustained campaigns for social change. With most Korean media dominated by conservative newspapers

Jul 1, 2015By John Burton

John Burton

Samsung's moment of truth

By John BurtonA fight between billionaires can be a great spectator sport and that’s certainly the case between Paul Singer, the head of the U.S. activist hedge fund Elliott, and Lee Jae-yong, the crown prince of Samsung Group.Elliot’s bid to derail the $8 billion merger of Samsung C&T and Cheil Industries, Samsung’s de facto holding company, can be viewed in several ways.Elliot is arguing that the Lee family is taking advantage of outside shareholders by transferring valuable assets from Samsung C&T, the group’s construction arm, to Cheil Industries without appropriate compensation. Elliott is the third largest shareholder in Samsung C&T with a 7.1 per cent stake.This stance is meant to appeal to the deep-seated skepticism and resentment in Korea about the chaebol that is based on fears about the dominance and immense power wielded by their family owners.After all, the merger represents a key step in carrying out the third-generation family succession of the Lee family at Samsung. The deal is meant to strengthen the family’s grip on Sam

Jun 17, 2015By John Burton

John Burton

Korea's debt advantage

By John Burton Good news sometimes is obscured. While there are many worries about the shape of the Korean economy from slowing growth to growing inequality, there is at least one bright spot. While much attention has been focused on Korea’s mushrooming household debt, the government’s financial strength positively shines when compared with other countries around the world from Japan to Greece. Policymakers should be commended for learning the lessons of the past, particularly the near-death experience of the 1997 financial crisis, in protecting Korea from global financial turmoil. Unlike many other countries, Korea has the financial firepower to respond rapidly to domestic risks and external shocks. The government has run a budget surplus since 2010, while its debt burden amounts to 36 percent of gross domestic product (GDP), one of the lowest rates among the rich OECD countries. Compare that with the Japanese government debt of around 225 percent of GDP. The result is that the Korean government’s financing costs are relatively low. The cou

Jun 3, 2015By John Burton

John Burton

Can Korea become an immigrant nation?

By John Burton One of the biggest stories in Europe over the last few years has been the growing popularity of anti-immigrant political parties. Countries once known for their tolerant attitude toward immigrants and refugees, including Sweden, the Netherlands, France and Germany, are now confronting demands by sizeable segments of their populations that the inflow of foreigners should be curbed. In the recent British elections, the anti-immigrant UKIP received 12 percent of the vote, although only one parliamentary seat.There are early signs of an anti-immigrant backlash occurring in Korea as well and for many of the same reasons that are fueling the anti-immigrant wave in Europe, including job insecurity and popular perceptions that immigrants are being financially pampered by the government while ordinary citizens struggle to survive.South Korea has been at the forefront of its Asian neighbors in welcoming foreigners to its shores over the last decade. The primary motivation has to reverse a decline in the population by encouraging the marriage of Korean men with women mainly

May 20, 2015By John Burton

John Burton

Korea's emerging fault lines

By John BurtonOn May Day, I was quietly munching my Big Mac at a McDonald’s on the edge of Insa-dong when a group of about 50 shouting young protesters burst into the restaurant to demand higher wages and better working conditions for part-time workers. At least three busloads of police soon followed and stand-off developed before the protesters dispersed.The small incident underscores the growing anxiety of those between their late teens and early 30s feel about their future job prospects when companies, symbolized by McDonald’s, are increasingly employing part-time workers instead of salary staff to keep wage costs low. Reduced job opportunities for the young are also causing increased tensions with the older generation.This development is not just confined to Korea. Similar worries afflict the young in the U.S. where it is increasingly difficult to find a good job with strong career prospects. One major reason for this is that globalization, of which Korea has been among the biggest winners, has also caused companies to outsource jobs, creating less labor demand in hom

May 6, 2015By John Burton

John Burton

A gloomy economic outlook

By John  Burton On the face of it, the Korean economy is not performing too badly against its advanced industrial peers. Its gross domestic product (GDP) growth rate of 2.7 percent for the fourth quarter of 2014 was slightly better than the U.S. (2.4 percent) and Canada (2.6 percent) and much better than Japan, Germany, France or Italy. Korea compared well even with the British economy, which at 3 percent was the best-performing among the major European countries.Nonetheless, there are reasons for increased gloom about Korea’s economic prospects going forward. Although the government this month predicted that GDP for 2015 will expand by 3.1 percent, economists are privately warning that growth may slow to as low as 2 percent, half of the growth target of 4 percent that President Park Geun-hye said it would be the goal of her administration.To understand why the economy is turning sour, one needs to examines the four factors ― net exports, corporate investment, consumer spending and government expenditures ― that make up economic growth.Start with exports, which are vi

Apr 22, 2015By John Burton

John Burton

Do lead, Madam Park!

By John BurtonThis week was already expected to be an emotional one as the nation marks the first anniversary of the Sewol tragedy, which uncovered a nexus of corruption between government and industry in the maritime sector.Now public anger is likely to be stoked by another potentially damaging corruption scandal, with allegations that President Park Geun-hye’s top aides received illegal campaign contributions during her presidential bids in 2007 and 2012. The tales of corruption have already taken their toll on the nation.The profound psychological impact of the Sewol tragedy curtailed domestic spending as the public grieved last year, contributing to a slowing economy.It also marked the beginning of the decline in public confidence in the Park administration.It is sometimes difficult for foreigners to understand the trauma caused by the Sewol tragedy. Although it cost 300, mostly young, lives, I have had friends overseas ask, “Such tragic accidents happen all the time, why would this have such an enduring impact on Korea?”There are several answers to that. O

Apr 15, 2015By John Burton

Jindo wants to put Sewol tragedy behind

John Burton

Lee Kuan Yew's dangerous legacy

By John Burton Lee Kuan Yew was the Dorian Grey of the global elite. He represented the secret wish fulfillment of many leaders — East and West — who paid him profuse eulogies after the former Singapore prime minister died last month at 91.What appealed to his fellow political practitioners and made them envious was his ability to remain in power for 30 years and then retain considerable political influence after that for another 20 years. “If only I had the same powers that he did” was no doubt the wistful thought of many of his foreign counterparts followed by others:“I wish I was continually elected under a system that had appearance but not the spirit of a democracy. I wish I was blessed with a responsive government bureaucracy that actually performed efficiently. I wish the newspapers and TV stations were state-owned so I could shut up pesky reporters while the courts would always rule in my favor when I sued obnoxious foreign journalists for libel. I wish all the trade unions were under government control so that that labor troublemakers didn&

Apr 8, 2015By John Burton

John Burton

The perils of cheap labor

By John BurtonOne of the bright spots in the beleaguered administration of Park Geun-hye has been the appointment last summer of Choi Kyung-hwan as finance minister. Choi has generally won plaudits from local and international investors for his pragmatic policy in reviving economic growth.His most popular measure among investors has been to increase taxes on retained earnings held by the big business groups so that they spend more in the domestic market and reduce their heavy dependence on exports. An added benefit of the policy is meant to encourage local spending by the chaebol to help the growth of smaller companies, which are also receiving tax incentives to hire more people.The clearest result of this policy has been the decision by companies like Samsung Electronics and Hyundai Motor to increase their dividend payments, which have been notoriously meager, in response to the threat of new taxes.Local and foreign investors believe the measures could lead to a re-rating of the Seoul stock market that has long suffered from the “Korea discount,” which refers to the fact

Mar 25, 2015By John Burton

John Burton

Read more

President's Pyrrhic victory

Is the Korean media toothless?

Samsung's moment of truth

Korea's debt advantage

Can Korea become an immigrant nation?

Korea's emerging fault lines

A gloomy economic outlook

Do lead, Madam Park!

Lee Kuan Yew's dangerous legacy

The perils of cheap labor

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