Category: Korean Government

The economy is continuing to slump in South Korea and President Moon appears to be trying to show he is doing something to address it:

President Moon Jae-in sacked the finance minister and his chief policy adviser Friday after the two top economic policymakers openly displayed a serious rift over how to handle the slumping economy.

Moon named Hong Nam-ki, an economic technocrat who is currently serving as chief of the Office for Government Policy Coordination under the Prime Minister’s Office, to replace Kim Dong-yeon as finance minister and deputy prime minister for economic affairs, Cheong Wa Dae said.

Moon also sacked Jang Ha-sung, presidential chief of staff for policy, and named his senior social affairs secretary Kim Soo-hyun to succeed him. Jang is the architect of Moon’s trademark “income-led” growth policy.

Kim and Jang have publicly displayed wide differences over how to revitalize the sluggish economy, with Kim voicing a need to alter the “income-led” growth policy and Jang insisting on sticking to the distribution-centered policy.

Their replacement was seen in part as aimed at revamping the economic team as they failed to produce tangible results in revitalizing Asia’s fourth-largest economy. Their sacking was also seen as a measure to hold them responsible for failing to work in concert with each other.  [Yonhap]

You can read more at the link.

Could you imagine the precedent this would set for the tech companies if they have to pay taxes to every country where citizens use its services?  Users are already paying a fee to the Internet provider in the country that is being taxed:

South Korea is considering launching probes into global tech companies that have come under suspicion for not paying their dues, the government here said Wednesday.

The move comes amid growing criticism that global tech giants, including Google Inc. and Facebook Inc., have not properly paid their taxes to local authorities while generating profits every year.

“The government is aware that it is a problem that needs to be more actively addressed,” ICT Minister Yoo Young-min said during an annual audit with lawmakers. “The ministry is mulling over the launch of a joint investigation with the Ministry of Economy and Finance, the Financial Services Commission and the Fair Trade Commission.”

The lawmakers at the gathering argued that the government should come up with countermeasures to properly deal with alleged wrongdoings by the multinationals if they do not follow local regulations.

“It is vital that an organization should be set up to come up with joint countermeasures against global companies that may not be paying their taxes here,” said Rep. Kim Kyung-jin, adding that it’s important to find out how much foreign companies make.  [Yonhap]

You can read more at the link, but I think Dr. Tara O may be on to why the ROK government is looking at going after the tech companies:

Park Kwang-on, Deoburreo Minju Party, “asked” Google to remove 104 YouTube cases. When Google didn’t, he called Google Korea head for questioning re alleged tax evasion& alleged fake YouTube. High pressure tactics to suppress voices for freedom, rule of law, pro-ROK-US alliance https://t.co/QKZcsRkRaY

— Tara O (@DrTaraO) November 6, 2018

You can read more about the Moon administrations’ attempt to suppress conservative critics in South Korea at the below link.

https://www.rokdrop.net/2018/10/gordon-change-gives-address-to-the-national-press-club-on-south-korean-governments-attacks-on-freedom-of-speech/

I'm sure it happens all the time in the Middle East and in former Soviet republics, but I never really put South Korea in the same category until recently.
This is the hallmark of an authoritarian state. Democracies don't behave this way. https://t.co/nYABICUFPs

— Joshua Stanton (@freekorea_us) October 27, 2018

Sure he is sorry (insert eye roll):

Unification Minister Cho Myoung-gyon held meeting with defectors in Seoul on Wednesday where he apologized for his controversial decision to prevent a defector-turned-journalist from covering recent inter-Korean talks, a participant said.

Cho had a lunch meeting with representatives of three North Korean defector groups at a Seoul restaurant to explain his position on the controversy and listen to defectors’ opinions on pending inter-Korean issues.

One participant said after the meeting, “Minister Cho said sorry and made an apology for excluding a defector-turned-journalist from the coverage of inter-Korean talks.”

The minister recently caused a stir by excluding a defector-turned-journalist of the conservative Chosun Ilbo daily newspaper from the pool of reporters covering high-level inter-Korean talks held at the truce village of Panmunjom on Oct. 15.  [Chosun Ilbo]

You can read more at the link, but this is just another example of how the Moon administration has been stomping out conservative media coverage in South Korea.

#SouthKorean PM Lee said "He was great, but frugal, frugal, but great. He loved his subjects & he received the love of his subjects. I become endlessly small & ashamed when faced with the life of 'juseok." (A term used for a communist leader)" when visiting Ho Chi Min museum. https://t.co/pbDeQq6jGd

— Tara O (@DrTaraO) October 3, 2018

It looks like the Moon administration has found another governmental figure from the former Park government timeframe to go after:

President Moon’s approval rating is still high, but has dropped by 23 total points since May.  The drop is largely due to the economic woes caused by the increase in the minimum wage.  If his North Korea engagement policies fail that will likely be what drops him well below 50%.  Remember President Moon was only elected President with 41% of the vote.  He has been given a lot of goodwill for his North Korea engagement by the ROK public that could quickly shift if real results don’t happen:

President Moon Jae-in’s approval rating continued to drop last week amid worsening economic conditions, a poll showed Monday.

Moon’s approval rating came to 55.2 percent in a survey conducted by Realmeter, down 0.8 percentage point from the week before.

The weekly survey was conducted Monday through Friday, involving 2,507 adults throughout the nation.

The reading was the third consecutive week the rating had dropped and was a record low since the president took office in May 2017.

Moon faces strong criticism for his iconic income-led growth strategy that seeks to boost the income of wage earners, which he says will lead to a rise in domestic consumption, revitalizing the whole economy.

Apparently swayed by the new government strategy, the tripartite commission on the minimum wage hiked it by 16.4 percent to 7,530 won ($6.75) per hour at the start of this year. The minimum wage is again set to jump 10.9 percent to 8,350 won per hour in 2019.

Such a steep increase, however, is believed to have forced local businesses to cut back on jobs instead.  [Korea Times]

You can read more at the link.

It looks like President Moon is responding to declining approval ratings and increasing criticism to his economic policies by increasing welfare spending:

Starting this month, basic pension payments will rise and more families will be eligible to receive childcare subsidies.

The Health and Welfare Ministry has increased the monthly basic pension from 200-thousand to 250-thousand won for people 65 and older who fall in the bottom 70 percent income group.

Most families raising a child aged five or younger will also receive 100-thousand won each month from September. For a household of three, combined income will need to be below eleven-point-seven million won a month to be eligible for the benefit.

Those who are eligible for the childcare stipend can apply at local administration offices or at the Web site bokjiro.go.kr. The first payment will be on September 21st.

Monthly benefits for people with serious disabilities will also rise 50-thousand won to as much as 250-thousand.  [KBS World]

President Moon appears to be doubling down on his policies:

President Moon Jae-in called Saturday for an unswerving reform drive despite a falling approval rating and controversies over his economic policy.

He was speaking at an unprecedented gathering of all ruling party lawmakers, Cabinet members and presidential officials.

It came two days after Moon’s first Cabinet shake-up to replace five ministers, including the defense chief and the top education policymaker.

Late last month, the Democratic Party of Korea picked Rep. Lee Hae-chan, a seven-term lawmaker, as its new leader.

“The task of the times that we have to achieve together is clear,” Moon said at the meeting held at his office Cheong Wa Dae.

It’s to create a fair and just country through strong and constant reform measures, widely dubbed the “liquidation of past malpractices.”  [Yonhap]

I wonder which malpractices is he referring to?  Is the founding of the Republic of Korea one of the malpractices?  It may be considering how President Moon has denied that the ROK was not founded in 1948.

He pointed out that South Korea is at a time of a “grand shift.”

He stressed the need for addressing the gap between the haves and have-nots via an appropriate distribution policy and promoting the co-prosperity between South and North Korea on the basis of denuclearization and a peace regime.

What is an appropriate distribution policy?  The only distribution I have been hearing about is the ROK money expected to be redistributed to Kim Jong-un.  Also notice the term “peace regime” being used by Moon.  That is the preferred term now by ROK leftists to disguise their real intention of forming a confederation with North Korea.

To that end, the president said, Cheong Wa Dae, the ruling party and the government should make concerted efforts.

Moon, in particular, cited negative side effects from South Korea’s growth-oriented approach in the past, such as widening income disparity and misconducts by some vested powers.

Inter-Korean relations were once broken and the cloud of war was cast over Korea, he said.   [Yonhap]

President Moon does not like South Korea’s growth oriented economy that has brought remarkable affluence to South Korea in an incredibly short time? Also by vested powers is President Moon referring to the United States?

You can read more at the link.

A ROK Air Force general will now being taking over as the ROK Defense Minister.  This is the first time a ROK Air Force veteran will be defense minister in 24 years.  I wonder if this pick is to counterbalance the influence of the ROK Army that may not be as supportive of removing South Korean defenses along the DMZ as President Moon may like?:

South Korean President Moon Jae-in on Thursday nominated the head of the Joint Chiefs of Staff as defense minister.

Jeong Kyeong-doo, 58, a former fighter pilot, would take over the ministry as the government seeks to reduce tension and build trust with North Korea, and at a time of uncertainty over relations with main ally the United States.

Jeong, who is set to replace incumbent Song Young-moo, does not need parliament’s approval but must attend a hearing and answer legislators’ questions.

He would be South Korea’s first defense minister with an air force background in 24 years, media reported.  [Reuters]

You can read more at the link.