Tag Archives: south korea

Snap South Korean presidential election points to tough Moon-Ahn race

South Korea’s snap presidential election in May now favors the progressive candidate, Moon Jae-in, but he is facing surprisingly strong opposition. (Facebook)

When Moon Jae-in (문재인) won his party’s nomination last Monday, news outlets across the globe immediately proclaimed that the progressive’s nomination all but assured Moon’s victory in the snap presidential election set to take place on May 9. 

Nevertheless, the next 27 days promise to be some of the most tumultuous in the history of South Korean democracy, with former president Park Geun-hye (박근혜) under arrest on bribery and other corruption charges and with US president Donald Trump’s administration taking an increasingly bellicose line over North Korea’s nuclear provocations. Park’s removal from office brought forward the presidential election previously scheduled for December.

Last week’s primaries among all of South Korea’s major parties have effectively settled the presidential field. Almost immediately, though, Moon’s opponents started lining up behind another progressive alternative — former software engineer and entrepreneur Ahn Cheol-soo (안철수), who kicked off his general election campaign by taking a ride on Seoul’s subways. The hint wasn’t subtle: Ahn is an outsider who understands the problems of everyday Koreans.

It set off an election dynamic that polls say, all of a sudden, is now too close to call.

Once Moon’s ally, former software businessman Ahn Cheol-soo is gaining support from many different corners of South Korean society, united solely by their mutual distrust for Moon. (Facebook)

The sudden Moon-Ahn horse race elevates a long-simmering rivalry that’s defined the South Korean opposition for the better part of the 2010s. Moon and Ahn both hold relatively left-wing views by the standards of South Korean politics. But Ahn is increasingly viewed as more pro-American, given Moon’s skepticism about the US-built Terminal High Altitude Area Defense (THAAD) anti-missile system that North Korea and China view as an American provocation. While both Moon and Ahn previously opposed THAAD, which could deploy within weeks, the two candidates are now voicing at least qualified support for its deployment if North Korea’s aggression continues. But Moon has warned that THAAD’s deployment should be halted if North Korea resumes negotiations and freezes its nuclear weapons program.

More broadly, South Korean business elites like that Ahn comes from an entrepreneurial background. Idealistic voters, meanwhile, consider Ahn an untainted maverick who can break the cycle of corruption that’s dogged several administrations from both the left and the right and the ‘chaebol’ conglomerates than dominate the South Korean economy. (Notably, Samsung CEO Jay Y. Lee (이재용) was arrested in February as a result of the wide-ranging corruption scandal that engulfed Park’s presidency, accused of paying up to $40 million in bribes to Park in exchange for favorable treatment for Samsung).

At a stunningly rapid clip, Ahn has defined himself as the outsider to Moon’s insider. In addition, with the Korean right in shambles after Park’s implosion, many conservative voters — for now at least — seem to prefer a strategic vote for Ahn instead of a more right-wing candidate. Continue reading Snap South Korean presidential election points to tough Moon-Ahn race

Koreans look to 2017 after Park’s governing party loses seats

South Korean president Park Guen-hye met with US president Barack Obama in Washington soon after taking office in 2013. (White House)
South Korean president Park Guen-hye met with US president Barack Obama in Washington soon after taking office in 2013. (White House)

Though it’s only been two weeks since South Koreans upended polls to deliver a shock verdict in parliamentary elections, the country is now pivoting toward its next presidential election — which is nearly 20 months away. northkorea

Taking place nearly two-thirds of the way through the five-year term of president Park Guen-hye (박근혜), the election was an opportunity for Park to solidify her grip on the National Assembly, as well as her own party, the conservative Saenuri Party (새누리당, ‘New Frontier’ Party) by winning a more solid majority in South Korea’s 300-member unicameral legislature, the National Assembly (대한민국 국회). 

Despite poll predictions that Saenuri would take advantage of a split opposition and win an even wider majority, the party instead lost ground, falling further away from an absolute majority, winning just 122 seats, 24 fewer seats in the National Assembly than the party held before the elections. Park, like all South Korean presidents, is limited to a single term in office and, in some regards, she became a lame duck president from the first days of the 2013 inauguration of the country’s first female president. That hasn’t stopped Park from wielding power through a very strong executive branch.

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Saenuri’s defeat, however, and Park’s failures in particular, mean that the country is now shifting towards the posturing among Park’s opponents, including those within other Saenuri Party factions, to plot a path to the presidency in an election that will not be held until December 20, 2017.

The results will give hope to the traditional center-left opposition party, the newly renamed (as of last December) Minjoo Party (더불어민주당), a successor to what used to be called the Democratic United Party, which won 123 seats — one more than Saenuri. That could embolden several top figures within the party to mount a 2017 presidential bid, including Moon Jae-in (문재인), the party’s former leader and its 2012 candidate against Park.

But the results will give even more hope to the newly formed, as of February, People’s Party (국민의당), an alternative liberal party that has pulled supporters away from Minjoo. Its leader is Ahn Cheol-soo (안철수), a software entrepreneur, businessman and academic, who burst onto the political scene as a potential presidential candidate in 2012. He will now almost certainly be a contender in the 2017 election. Though the People’s Party only won 38 seats, it actually won more votes than Minjoo.

So what does South Korea’s election mean for the rest of Park’s administration and for 2017? Continue reading Koreans look to 2017 after Park’s governing party loses seats

Seoul-Tokyo relations at heart of US ‘Asian pivot’ wishlist

abelincolnPhoto credit to AFP / Getty.

Courting controversy for his refusal to issue a formal apology from Japan to South Korea and other Asian neighbors whose nationals were conscripted into service as ‘comfort women’ during World War II, Japanese prime minister nevertheless embraced the United States in a joint address to the US Congress Wednesday:South Korea Flag IconJapanUSflag

My dear friends, on behalf of Japan and the Japanese people, I offer with profound respect, my eternal condolences to the souls of all American people that were lost during World War II.

Though Abe expressed deep repentance for Japanese actions that caused suffering to Asian neighbors, and though Abe said that Japan must not avert its eyes from that, he bluntly noted that ‘history is harsh’ and that ‘what’s done cannot be undone.’ Presumably, that includes the abduction of women forced into sexual slavery by the Japanese army during World War II across much of Asia, chiefly in Korea, which remained under Japanese occupation from 1910 to 1945. Even discussing the issue today is still widely controversial in both Japan and South Korea, but it’s enough of an affront to South Korea that South Korean president Park Geun-hye has only met with Abe once — and apparently, she was less than impressed with Japanese diplomacy.

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RELATED: Japan is once again an essentially one-party country

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Abe’s refusal, and the refusal of prior Japanese prime ministers, to apologize has caused diplomatic tension with China and, more importantly for US purposes, South Korea, which US officials hope can become a closer Japanese ally in their mutual quest to balance China’s growing regional power. Though the US-Japanese relationship is strong today, it’s odd, upon reflection, that a Japanese official would apologize to the country that deployed not one, but two, atomic bombs on Japan while remaining recalcitrant vis-a-vis Korea.

Mike Honda, a Democratic member of the US House of Representatives from California and himself an American of Japanese descent, brought Lee Yong-soo, a Korean woman forced into service as a ‘comfort woman’ in 1944 at the age of 16, to Abe’s congressional address in protest.

Mistrust between the two countries runs deep. Surveys show that Abe is more unpopular throughout South Korea today than North Korea’s leader, Kim Jong-un.

The apology issue was the most contentious of a broad portfolio of policy issues between the United States and Japan, as Abe continues his red-carpet visit to the United States, which included a personal tour of Washington’s monuments with US president Barack Obama (pictured above with Abe) and a state dinner on Tuesday night.
Continue reading Seoul-Tokyo relations at heart of US ‘Asian pivot’ wishlist

Is Lee Kuan Yew’s role in Singapore’s rise overrated?

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The father of modern Singapore, Lee Kuan Yew, died Monday at the age of 91.Singapore Flag Icon

Obituaries, prepared long ago by news outlets for Lee’s passing, will note that Lee presided over Singapore’s economic transformation from an uncertain city on the Malaysian peninsula into one of the world’s wealthiest countries on the strength of a strong central government, a thriving market economy, strict social conformity and a bit of soft authoritarianism.

The deal that Lee offered Singapore in 1965, for the next 25 years of his premiership and the ensuing 25 years of his ‘retirement’ that saw the rise of his son, Lee Hsien Loong, as prime minister in 2004, is simple: the promise of sustained economic growth and a robust social safety net at the expense of real democracy, liberal freedoms of speech and expression and a strong free press. It also entailed a nanny state, enforced by cultural norms as much as by government diktat, that deployed housing quotas to integrate Indian and Malay minorities among the larger ethnic Chinese population, forced retirement savings, compulsory two-year military service for Singaporean men, and strict rules that imposed the death penalty on drug offenses and that nudged (or pushed) Singaporeans to be more polite, learn English, stop chewing gum and self-censor any dissent of Lee and his ruling People’s Action Party (PAP).

As many of Lee’s obituaries will proclaim, it’s a deal that appeared to work — Singapore today has a (nominal) GDP per capita of over US$55,000, slightly higher than the United States, and political and economic experts alike routinely use words like ‘miracle’ to describe Singapore’s rise to become one of the wealthiest, most developed countries in the world.

Central to the Singapore story was Lee himself — indeed, the first in his series of memoirs is entitled simply ‘The Singapore Story.’

But how central was Lee to the modern creation of Singapore? He’s become a beloved figure, especially in the United States in the business-school-case-study-set kind of way. It’s impossible to separate Lee’s life and his role in Singapore’s rise, but it’s not impossible to argue that Lee was shrewd, competent and… very lucky.

Continue reading Is Lee Kuan Yew’s role in Singapore’s rise overrated?

2014 US midterms showcase rise of Asian Americans

CIMG9933Flushing, in Queens, is one of the most Asian neighborhoods in the United States.

Apparently, the swing among Asian Americans between the 2012 general election in the United States and the 2014 midterm elections was a staggering 46%:asia iconUSflag

Note the big swing in the Asian voting bloc, too. In 2012, strong support for the president among Asian-American voters was a surprise. Asian voters preferred the president by 47 points. In 2014, the (low turnout) group split about evenly. It was a 46-point swing.

That still translates to a fairly robust tilt among Asian Americans toward Democrats — just not the overwhelming trend that we saw in 2012 and 2008 and, even to some degree, 2010. Other exit polling shows that Asian Americans still strongly supported Democrats — in Virginia, they favored incumbent Democratic senator Mark Warner over Republican challenger Ed Gillespie by a margin of 68% to 29%, for example.

But why should Asian Americans necessarily lean to the left? The Asian American experience in the United States is extremely varied, and it’s a growing bloc of disparate cultures and experiences. In that regard, Asian Americans are just like Latin Americans, who come from an equally broad range of national and ethnic background. Mexican Americans in California may have different political views that Mexican Americans in Texas, to say nothing of Salvadorans in Maryland, Cubans in New Jersey or Dominicans in Florida.

The same goes for Asian Americans.

So what are we talking about when we say, ‘Asian Americans?’ Continue reading 2014 US midterms showcase rise of Asian Americans

None of us knows anything about Kim Jong-un

It’s possible that North Korea’s leader, Kim Jong-un, was temporarily removed from his position as the head of state of his country of 24.9 million during his 40-day absence from public view, which ended this week when North Korea’s news agency released photographs showing Kim on a ‘field guidance’ trip to a new residential complex. northkorea

It’s possible that Kim was never more than a figurehead, with the real power lying inside the secretive Organization and Guidance Department and with the North Korean military forces.

It’s possible that Kim is a figurehead, but his younger sister Kim Yo-jong is actually holding the true reigns of power. 

It’s possible, as Zachery Keck writes today in The Diplomat, that this entire saga shows that North Korea is becoming more transparent under Kim Jong-un.

It’s possible that Kim wasn’t actually responsible for the purge of his powerful uncle, Jang Sung-taek, last December, along with several other top-ranking officials close to the rule of his father, Kim Jong-il. Instead, Kim’s enemies may have effected Jang’s execution to send the young Kim a message about who really controls the Democratic People’s Republic of Korea (DPRK).

It’s  possible that under Xi Jinping, the People’s Republic of China is weary of making excuses for a regime that much of the rest of the world disregards, except as a potential nuclear nuisance to be contained and otherwise isolated. 

It’s possible that the overweight Kim really was suffering from health problems that caused him to walk with a limp before his disappearance. That explains why, perhaps, he reappeared in photos earlier today, after a 40-day absence, using a cane, and following rumors that he suffered from an ankle injury and/or from gout.

It’s possible that the photos released aren’t even from yesterday, but recycled from a previous event or doctored.

In the depths of Kim’s disappearance, it was even possible that North Korea’s military leadership has staged a coup, and the high-profile trip by Hwang Pyong-so to Incheon for the Asian Games last week was the first step in what could be the process of reunification with South Korea. If and when South Korean reunification comes, it may come suddenly and unexpectedly.

But no one knows for sure what Kim’s absence signifies — and you shouldn’t trust anyone who says that they do know, because North Korea politics are still so incredibly opaque to the outside world. Continue reading None of us knows anything about Kim Jong-un

After two failed efforts, Park turns back to Chung Hong-won as PM

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Six weeks after the horrific ferry accident in South Korea that killed 300 people, and following two failed attempts to find a new prime minister, president Park Geun-hye (박근혜) has decided to retain Chung Hong-won (정홍원) after all.South Korea Flag Icon

Chung (pictured above) previously announced his resignation as prime minister on April 27, taking responsibility for the government’s performance in the aftermath of the Sewol ferry disaster, with the intention of stepping down as soon as Park could appoint a successor.

But along the way, Park ran into trouble.

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Her first nominee, Ahn Dae-hee (안대희), a longtime state prosecutor and a former South Korean supreme court justice appointed by the late former president Roh Moo-hyun in 2006, was nominated on May 22.

But Ahn (pictured abovewithdrew a week later on ethics concerns over the massive amount of money he earned in the months after leaving the supreme court.

문창극 국무총리 후보자 '첫 출근'

Her second nominee, Moon Chang-keuk (문창극), a former journalist and former editor of Joongang Daily, withdrew from consideration on June 24, after making comments at a church that Japanese colonization of Korea between 1910 and 1945 was God’s will, something of a controversial statement where Korean-Japan relations in the early 20th century still cause tensions. 

It didn’t help that many South Koreans felt Moon (pictured above) was unqualified to be prime minister, nor that Moon had often expressed nostalgic admiration for the regime of Park’s authoritarian father, Park Chung-hee (박정희), who ruled South Korea from 1961 to 1979. 

Neither candidate even made it to a vote in the National Assembly (대한민국 국회).

Accordingly, in exasperation, Park announced late last week that she will retain Chung, a novel approach that has the benefit of giving South Korea a permanent government for the first time in six weeks, and it clears the way for the confirmation hearings of nine additional cabinet members. Continue reading After two failed efforts, Park turns back to Chung Hong-won as PM

Quivering for the fourth arrow of Abenomics (and other Japanese policy matters)

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As widely expected, Japan’s Liberal Democratic Party of Japan (LDP, or 自由民主党, Jiyū-Minshutō) surged to an overwhelming victory in Sunday’s national elections in Japan to determine half of the seats (121) in the House of Councillors, the upper house of the Diet (国会).  While the victory wasn’t enough to give the LDP a two-thirds supermajority in both houses of the Diet, it was enough to usher in a new era of continuity, with the government of prime minister Shinzō Abe (安倍 晋三) set to consolidate power after winning election in the lower house, the House of Representatives, last December.Japan

The result leaves the LDP, together with its ally, the Buddhist conservative New Kōmeitō (公明党, Shin Kōmeitō) with a majority in the upper house, and that will give the LDP the ability to push through legislation without needing to compromise in the House of Councillors and it makes Abe the strongest Japanese prime minister since Junichiro Koizumi (小泉 純一郎) in the early 2000s and ends a seven-month period of a ‘twisted Diet,’ with control of the upper house still in the hands of the Democratic Party of Japan (DPJ, or 民主党, Minshutō).

But the LDP looked set to fall just below an absolute majority in its own right:

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In contrast, the LDP holds 294 seats in the 480-seat House of Representatives, and together with the 31 seats of New Kōmeitō, holds a two-thirds majority.  That the LDP doesn’t hold an equally impressive advantage in the upper house is due to the fact that only half of the seats in the House of Councillors were up for election yesterday and, among those 121 seats, the LDP’s dominance is clear:

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That also means that the Democratic Party doesn’t face an immediate wipeout, and it will remain the chief opposition party — in fact, their 59 seats in the House of Councillors is actually more than the 57 seats they currently hold in the House of Representatives.  That will give the DPJ a legislative base from which it can attempt to rebuild itself as a political force and to position itself for 2016, when Japan’s next elections are likely to come.  Banri Kaieda, a fiscal hawk who assumed the party’s leadership after its December 2012 defeat, will stay on for now as leader.

But the Democrats weren’t the only losers on Saturday.  It was perhaps an even more difficult election for the Japan Restoration Party (日本維新の会, Nippon Ishin no Kai).  A merger between the two smaller parties of Osaka mayor Tōru Hashimoto (橋下徹) and right-wing, nationalist former Tokyo governor Shintaro Ishihara (石原慎太郎), it emerged with 54 seats in the House of Representatives in December to become as the third-largest party.  But it won just eight seats on Saturday, and the party now seems likely to split up.  That’s largely due to Hashimoto’s awkward comments suggesting U.S. soldiers in Okinawa should be permitted to use prostitutes and controversial comments that largely defended the ‘comfort women’ system, whereby Japanese soldiers forced women in enemy countries to serve as sexual slaves.  But it’s also due to the fact that nationalist tensions stemming from a standoff with the People’s Republic of China over the Senkaku Islands (Diaoyu Islands in Chinese) have calmed somewhat since last December.

One success story was the Japanese Communist Party (JCP, or 日本共産党, Nihon Kyōsan-tō), which won eight seats on Saturday, bringing its total to 11. Founded in 1922, the JCP has not been a strong force in recent years.  Though it has left its Marxist roots in the past, it has gained a modest amount of strength since the 2008 global financial crisis and it supports ending Japan’s military alliance with the United States.

But beyond the horse-race dynamics of Saturday’s result, what can we expect from Japanese policy in the next three years?  Here’s a look at eight key issues that are likely to dominate the LDP’s agenda, at least in the near future.  Continue reading Quivering for the fourth arrow of Abenomics (and other Japanese policy matters)

Oppa inauguration style

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K-pop star and Internet sensation Psy has a message to South Korea’s new president:South Korea Flag Icon

Heyyyyyy, sexy lady.

Conservative Park Geun-hye (박근혜), the daughter of Park Chun-hee (박정희), the authoritarian leader of South Korea in the 1960s and 1970s widely credited with engineering Korea’s economic growth, was inaugurated on Tuesday as South Korea’s first female president following a convincing victory in the December 2012 presidential election over liberal candidate Moon Jae-in (문재인).

She marked her first day in office with an otherwise somber inaugural address that served mostly as a warning to North Korea to cease its nuclear tests and to dismantle its nuclear weapons program:

“North Korea’s recent nuclear test is a challenge to the survival and future of the Korean people,” Park said outside the national assembly building in the South Korean capital. “Make no mistake, the biggest victim will be North Korea itself.”

Referencing her father’s astoundingly successful economic program, Park also called for a ‘2nd miracle on the Han River’ — Park promised to preside over a happier Korea after a shaking transition period that saw her first choice for prime minister withdraw over a real estate scandal.  Park herself has already met sharp criticism over her own apparent backtracking on her campaign commitment to address economic democratization — essentially, income inequality issues in South Korea.

For one day, though, it seems that a happier Korea began with a performance by Psy, who kicked off a decidedly much less somber start to the Park era.

Park Geun-hye becomes South Korea’s first female president

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Back in July, I suggested that  Park Geun-hye (박근혜) of the Saenuri Party (새누리당 or the ‘Saenuri-dang’, the New Frontier Party) was defying gravity in her race for South Korea’s presidency, and I listed five reasons why:

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  • She’d rebranded her party from the Grand National Party into the ‘New Frontier’ Party.
  • She then led the Saenuri Party to victory in elections for the National Assembly in April despite the unpopularity of her party’s incumbent president Lee Myung-bak (이명박).
  • Even six months ago, she had already co-opted the message of the center-left on ‘economic democratization,’ chaebol reform and income inequality.
  • South Korea’s progressive opposition was largely divided.
  • Mixed feelings (including some nostalgia among older voters) about her father’s authoritarian reign from 1961 to 1979 largely neutralized potentially controversial family ties.

By the time South Koreans went to the polls yesterday, all of those factors contributed to her victory.

She has defeated Moon Jae-in (문재인) of the Democratic United Party (민주통합당, or the ‘Minju Tonghap-dang’) with 51.6% of the vote to just 47.9% for Moon, ending what was always a very close race — albeit one where Park always seems to hold a slight edge.

As we look ahead, all of those factors should equally inform us as to what to expect from Park — the first woman to become South Korea’s president — and her incoming administration.

By rebranding her party as the ‘New Frontier’ Party — and making clear that the new frontier would not include Lee (who narrowly defeated Park for her party’s presidential nomination in 2007) — and then running against Lee’s record as much as against her opponent, she neutralized one of the most significant impediments to her candidacy.  She reinforced the split during the spring legislative campaign — and, by the way, she’ll enter the Blue House with a very friendly parliament as well.  Moon, had he won the election, would have been hampered by a hostile Saenuri majority, but Park will find a largely pliant National Assembly — Saenuri legislators know that they would not have that majority without Park.  So she’ll wield significant power as president in order to push through her campaign agenda.

That agenda, frankly, does not appear dissimilar to the agenda Moon promised.  While the policy details have been less than detailed, Park’s campaign emphasized traditionally liberal themes, and that moderate agenda certainly helped elect Park yesterday.  If Park wants to avoid the unpopularity of her predecessor, she’ll have to produce legislative accomplishments, not only on chaebol reform, but also find a way to reduce Korean income inequality and, ultimately, she’ll probably need to be lucky enough to have robust GDP growth.

On North Korea, too, both candidates agreed that the next president should be more conciliatory to North Korea than Lee’s administration, but they shied away from advocating a full return to the ‘Sunshine Policy’ of the late 1990s and 2000s that increasingly seemed to South Koreans like a series of handouts in exchange for further aggression from North Korea.  So under Park, South Korea will likely retain its firm approach to North Korea, but with relatively more carrots than sticks.

In terms of the geopolitics of East Asia, Park — who assumed the role of first lady during her father’s administration at age 22 when, in 1974, her mother was assassinated by North Koreans — will certainly be no shrinking violet (get set for five years of hearing the phrase ‘the Iron Lady of Asia’).

Indeed, it’s a crucial time for East Asia, given that King Jong-un has been in power for only a year, Xi Jinping (习近平) only last month took over as general secretary of the Chinese Communist  Party (中国共产党) and is set early next year to become the president of the People’s Republic of China, and the hawkish Shinzō Abe (安倍 晋三) only last Sunday won Japan’s parliamentary elections, returning him to power as prime minister.  Park’s immersion in Korean politics since the 1970s and her perceived toughness (she once returned to the campaign trail in 2006 just days after an assailant slashed her in the face with a knife) also likely contributed to her victory yesterday. Continue reading Park Geun-hye becomes South Korea’s first female president

South Korean voters choose a new president

South Koreans voters are now at the polls to determine whether conservative Park Geun-hye (박근혜) of the Saenuri Party (새누리당 or the ‘Saenuri-dang’, the New Frontier Party), the daughter of former South Korean leader Park Chung-hee or progressive Moon Jae-in (문재인) of the Democratic United Party (민주통합당, or the ‘Minju Tonghap-dang’), the chief of staff to former president Roh Moo-hyun – will be its next president.South Korea Flag Icon

Turnout is reported to be running high, and we should know the next Korean president by noon ET.

In the meanwhile, be sure to read Suffragio‘s coverage of the South Korean election here.

South Korean presidential election features talk of chaebol reform from both sides

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For South Korean economic policymakers, their worst nightmare lies just 400 miles away.

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After essentially four decades of massive growth (except for a blip following the 1997 Asian financial crisis), South Koreans worry that their hard-charging economy, which has propelled South Korea into the developed world, could end up like Japan’s — stuck in a lost decade (or two) of nearly zero-growth malaise.

While Shinzō Abe (安倍 晋三) will return as prime minister in an attempt to kickstart Japan’s economy with massive amounts of public spending after Sunday’s parliamentary elections in Japan, tomorrow’s South Korean presidential election has focused on economic issues that involving avoiding many of the mistakes that Japan made in the 1980s, with South Korean growth already slowing (it may be around 2% or 3% in 2012, historically very low for the Korean economy).

In particular, Japan’s economy in the 1980s relied heavily on keiretsu companies — the internationally known champions subsidized and coddled by the Japanese government.  South Korea, likewise, features many similar large government-championed conglomerates, known as chaebol in Korean.  The chaebol, chief among them globally recognized companies such as LG, Hyundai and Samsung, are highly centralized and still controlled in large part by the families that founded them in the mid-20th century.

But both major candidates — Park Geun-hye (박근혜) of the Saenuri Party (새누리당 or the ‘Saenuri-dang’, the New Frontier Party) and Moon Jae-in (문재인) of the Democratic United Party (민주통합당, or the ‘Minju Tonghap-dang’) — have advocated chaebol reform, often while simultaneously pledging to curb widening income inequality and expand ‘economic democratization,’ without really explaining how a more aggressive posture on chaebol reform would result in greater incomes.  It seems likelier that the widening income gap and relatively lower economic growth in South Korea has led many voters, especially small and mid-sized business owners, to look more disapprovingly on chaebol — in the same way small-business owners in the United States might scorn Wal-Mart and Amazon:

The chaebol touch almost every aspect of South Korean life. In the morning, Samsung Electronics salesperson Ellen Jeon leaves her home in Tower Palace, a complex in Seoul’s Gangnam district built by Samsung C&T Corp. She crosses the lobby to Starbucks, a franchise owned by a unit of retailer Shinsegae Group that’s run by Samsung Chairman Lee Kun Hee’s nephew. Wearing Tory Burch flats, bought at a Shinsegae department store, she carries her caramel macchiato to her Renault Samsung Motors SM5 sedan to drive to work.

Near her home is the Samsung Medical Center, where she bore her first son, a year after her wedding at the five-star Shilla Hotel, run by Chairman Lee’s eldest daughter. On her way to Samsung Digital City in the suburb of Suwon, she passes Shinsegae’s Jookjeon outlet, where her husband bought his first suit—a pinstripe from the Galaxy label of Cheil Industries: Lee’s second daughter is vice president. Naturally, Jeon and her husband both carry Samsung phones.

Regardless, it remains true that South Korea’s chaebol hold an outsized influence on the national economy — around 76.5% of GDP can be attributed to South Korea’s ten largest companies, and their leaders often play a cozy consultative role to Korean policymakers.  Incumbent president Lee Myung-bak (이명박), who remains relatively unpopular and tainted with corruption allegations, came to power in 2007 after a three-decade career at Hyundai, including as CEO of Hyundai Engineering and Construction, on a platform of business-friendly policy, not chaebol reform, and his promises of 7% growth from the trickle-down effects of a pro-business government have not come to fruition.

Former candidate, software entrepreneur Ahn Cheol-soo, took an even harsher line by promising to break up the conglomerates altogether.

Moon, in particular, has advocated reforming chaebol ownership to reduce the influence of the families that own them, reducing the family influence to that of a typical shareholder or top executive, and unwinding existing cross-shareholdings among the individual companies that comprise each of the chaebol.  But given that the National Assembly will still be controlled by Park’s Saenuri Party, it remains unclear whether Moon could push such a reform through South Korea’s parliament.

For her part, Park has discussed preventing the individual companies within each of the major chaebol from adding to their shareholdings in each other, though she wouldn’t go as far as Moon.  Park has also called for strengthening antitrust laws and increasing fines for violations of fair-trade laws.

But the surprising aspect of the debate is that South Korea has already taken aim at its chaebol — during and in the aftermath of the 1997 Asian financial crisis, when the chaebol, which already suffered greatly during that crisis after years of mismanagement and bloat, were found to have shoddy accounting practices and to have engaged in bribery and corruption of South Korean government officials.

Continue reading South Korean presidential election features talk of chaebol reform from both sides

Roh Moo-hyun haunts Moon’s candidacy in Korean presidential race

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Although the conservative Park Geun-hye has had to fend off challenges tying her to the worst of massively unpopular incumbent Lee Myung-bak and her father, Park Chung-hee (South Korea’s autocratic ruler from 1961 to 1979), it’s another former South Korean president who may represent the largest millstone in the Dec. 19 presidential race.South Korea Flag Icon

Moon Jae-in, candidate of the Democratic United Party (민주통합당, or the ‘Minju Tonghap-dang’), and a former chief of staff to Roh, has essentially no political identity separate from Roh.  He’s inescapably the heir to Roh, for better and for worse — for Roh’s supporters, Moon is an experienced champion of the policies Roh pursued; for Roh’s detractors, of course, Moon represents a return to the perceived incompetence and disappointment with Roh’s administration.

Park has had her challenges as the candidate of the Saenuri Party (새누리당 or the ‘Saenuri-dang’), the New Frontier Party — and formerly the Grand National Party — the party to which Lee belongs, but voters don’t associate Park with Lee because Park comes from a different wing of the party, has a vastly different management style and background, and, above all, she has campaigned as much against her opponent, Moon, as she has against Lee.  If anything, voters (especially older voters) associate Park’s candidacy with her father, who gained power in a coup in 1961 and pulled South Korea’s economy into the developed world until his assassination in 1979.  Voters will recall that Park (the daughter) was essentially South Korea’s first lady from 1974 onwards, when her mother was also assassinated.  Despite the economic strides that South Korea made in the Park era, it made precious little progress in the area of political rights or democracy.

The campaign for human rights and a more democratic South Korea during the Park years is, in fact, the defining experience of both Roh and Moon — Roh’s emergence in South Korean politics coincided with the rise of the ‘386 Generation,’ a new generation of political leadership educated in the 1960s that came to politics demanding for greater freedoms and democracy.  Moon, a human rights lawyer, was actually imprisoned in the 1970s for his activist efforts against the Park regime.

Fundamentally, the ties that bound Moon to Roh were forged during that fight — against Park’s father.  Park (the daughter) has recently apologized during the campaign for the abuses of her father’s administration, although her father’s legacy probably helps Park among many Koreans nostalgic for what seems to them a golden era of growth and prosperity.

That makes this year’s South Korean election — especially with the withdrawal of popular software entrepreneur Ahn Cheol-soo from the race in late November — very much a prototypical ideological fight between the two major forces in South Korean political life for nearly half a century.

As such, it’s worth reflecting on Roh’s administration, Moon’s role in Roh’s administration, and the scandal that led to Roh taking his own life by jumping off a cliff in May 2009, which tragically elevated Moon in the public eye.

Roh’s suicide came after what many believed were politically motivated allegations of bribery surrounding his family and associates, but those allegations never really touched Moon.  Nonetheless, his suicide elevated the pro-Roh faction within South Korea’s progressive scene, including Moon (shown above at Roh’s funeral), who served as counsel to Roh during the post-presidential investigation and who organized Roh’s funeral.

 

Roh came to office as a bit of an outsider — he served briefly as minister of maritime affairs and fisheries under Kim Dae-jung, hardly the best profile for a 2002 presidential run.  But his conciliatory approach to North Korea and his calls for a more equal relationship with the United States, especially following the acquittal of two American soldiers who hit and killed two teenaged Korean girls with an armored vehicle in an accident in June 2002.

Roh continued Kim’s ‘Sunshine Policy’ toward North Korea to somewhat less than great effect, and turned out to be more conciliatory to the United States than many expected back in 2002.

But the defining aspect of Roh’s presidency was the virulent opposition he encountered from conservatives.   Continue reading Roh Moo-hyun haunts Moon’s candidacy in Korean presidential race

North Korea launches itself into top echelon of issues in Korean presidential race

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With so many other economic issues to discuss in the South Korean presidential campaign, relations with North Korea had not always been at the forefront of the campaign debate, even though it was always more likely than not that the unique foreign relations challenge will eventually rise to the forefront of the  next South Korean president’s agenda in the next five years.

North Korea’s unpredictable passive-aggressive policy with respect to its southern neighbor has continued at a low hum since Kim Jong-un (pictured above) assumed leadership of the ironically named Democratic People’s Republic of Korea following the death of his father, Kim Jong-il, in December 2011.

Today, however, North Korea may have ‘launched’ itself into the presidential race by firing a rocket — literally, a long-range rocket that threatens to make North Korea a dominant issue in the presidential race:

Such developments can influence whom people will support when they go to cast their ballots, although its effects on public sentiments has yet to be determined.

“Experts are divided on the impact, with some predicting the launch will give credence to hardliners and help conservative presidential hopeful Park Geun-hye, while others said people may vote for Moon Jae-in of the liberal opposition party because they do not want an escalation of tensions,” an election watcher said.

He added that because voters are already split between the conservative and liberal camps, the latest provocation by Pyongyang may not really affect the outcome of the race.

“The country as a whole has become ‘indifferent’ having already seen the North test numerous rockets and detonated two nuclear devices,” the expert said. He added that because the launch had been expected people will be less likely to be moved.

For now, with a final presidential debate scheduled for Dec. 16, and with new polls forbidden from publication after Thursday under South Korean election law, it will remain unclear what impact the North Korean rocket launch might have on the campaign until election day.

Ultimately, however, both major candidates in the South Korean election have promised a more conciliatory policy with North Korea than outgoing South Korean president Lee Myung-bak, and many observers believe the rocket launch had more to do with internal North Korean politics than anything else.

While South Korea, with around 50 million people, has a GDP per capita of around $32,000, North Korea’s GDP per capita is something more like $2,400, despite the fact that it has just under 25 million people.  The South Korean economy exceeds $1.15 trillion to just around $45 billion in North Korea (see below a photo of the two Koreas at night from the Earth’s atmosphere).

South Korea split from North Korea after World War II, and the Korean War that began in June 1950 when the North invaded the South ultimately became the first proxy battle of the Cold War, pitting active forces from the United States against Communist forces (with the People’s Republic of China backing the North).  Despite an armistice agreement in 1953, the two Koreas have formally been in a state of war ever since, and the de-militarized zone between the two marks one of the most heavily armed borders in the world.

While it’s expected that the candidate of Lee’s party, Park Geun-hye of the Saenuri Party (새누리당 or the ‘Saenuri-dang’) would take a more hawkish tone, and Roh’s former chief of staff, Moon Jae-in, the presidential candidate of the liberal Democratic United Party (민주통합당, or the ‘Minju Tonghap-dang’) is expected to pursue a renewed variant of the once-ascendant ‘Sunshine Policy,’ the reality may well be more complicated.

Park has advocated what she uniquely calls a ‘trustpolitik‘ policy toward North Korea — more hawkish, perhaps, than previous policies of the Roh and Kim administrations, but decidedly more geared toward discussion and conciliation than the Lee administration, which Park says has failed to stem the aggression of North Korea.

Given the widespread disillusionment with the Sunshine Policy and its perceived lack of results, in addition to the relatively tighter economic conditions in South Korea, it seems unlikely that Moon would either be willing or able to pursue as wide a conciliatory policy to North Korea as the Roh and Kim administrations.

Lee has taken a hawkish attitude toward North Korea, ending the so-called ‘Sunshine Policy’ of his predecessors Roh Moo-hyun and Kim Dae-jung that had been South Korea’s policy for a decade.  Indeed, former president Kim won a Nobel Peace Prize for the policy, which resulted in summits in 2000 and 2007 to discuss further north-south cooperation in greater Korea, but mixed or negative results otherwise. Continue reading North Korea launches itself into top echelon of issues in Korean presidential race

The incredibly shrinking Lee Myung-bak

South Korea’s presidential elections never feature incumbents — the president is limited to a single five-year term — but that doesn’t mean incumbents don’t feature prominently in presidential elections.

In 2007, Chung Dong-young suffered from his ties to president Roh Moo-hyun, under whose administration Chung served as unification minister, and to some degree, Moon Jae-in, the presidential candidate of the liberal Democratic United Party (민주통합당, or the ‘Minju Tonghap-dang’) and Roh’s former chief of staff.

But given that incumbent president Lee Myung-bak, who will leave office as one of South Korea’s most unpopular presidents, garners approval ratings of around 20%, you’d expect that the candidate of Lee’s Saenuri Party (새누리당 or the ‘Saenuri-dang’), formerly the Grand National Party, would be suffering even more, right?

Wrong.  In South Korea’s presidential race this year, one of the reasons that Park Geun-hye has consistently held a lead over Moon has been her successful distancing from the Lee administration (although that lead is narrowing fast, especially after Park made a gaffe in the second presidential debate Monday indicating she wanted to ‘invigorate’ the underground economy).

Moon has consistently attacked Park for her party’s economic record, but the charges have not (so far) erased Moon’s deficit, even after posters surfaced trying to tie the two together as ‘Lee Myung Park Geun-hye.’

If anything, Park has been more successful by hammering away at lingering doubt about the Roh administration and Moon’s ties to it as Roh’s chief of staff.

That’s in part because while Park has attacked Roh’s administration, she’s also shown no compunction in attacking Lee’s record as well:

“The Roh Moo-hyun government wasted a period of prosperity in the world economy by indulging in ideological debates and power struggles, leading to the erosion in working-class living standards. The Lee Myung-bak government put growth before everything and failed to make lives better. I will not be a leader who will repeat the mistakes of previous governments,” Park said at a rally in Seogwipo, Jeju Island.

During the campaign, Park has attacked Lee’s administration for having failed middle class people and for exacerbating income inequality — an issue that both Park and Moon had pledged to make a top priority if elected.  Despite the rhetoric, there’s really no indication that Park’s administration would mark a vast policy difference from Lee’s administration.  If anything, Korean conservatives are incredibly united behind Park’s candidacy — more so than at any other time since the 1987 election.

But Park has long been known as an intraparty rival of Lee — no one would ever accuse Park of harboring secret affection for Lee or his accomplishments. Continue reading The incredibly shrinking Lee Myung-bak