Korea Focus 2014 07

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Korea Focus 2014 07

Transcript of Korea Focus 2014 07

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Table of Contents

- Korea Focus - July 2014

- TOC

- Politics 1. Chinese Wind in Seoul, Japanese Wind in Pyongyang 2. Our Choice after Sewol Disaster 3. Renovate the Nation? Let’s Shed Our Hypocrisy First 4. Stability of Civil Servants Threatens Public Wellbeing 5. Post-Sewol Tasks Require Slow, Tenacious Efforts

- Economy 1. Three Threats to the Korean Economy 2. ‘Community of Investment’ will Help Resolve Northeast Asian Conflict 3. Korea’s Patrimonial Capitalism and Creative Economy 4. Urgency of Jet Fighter Program 5. Learn about ‘Frontline Farming’ from Kinmen

- Society 1. Unchanging Moral Requirements for Rulers 2. Society’s Values are Upside Down 3. Yet, What I Want to Say is ‘I Love You!’ 4. Character Education should be Cornerstone of Society 5. Universities Need Market Principles Instead of Red Tape

- Culture 1. Right to Delete Me; Freedom to Protect Me 2. Culture and Arts as Means for Comfort and Healing 3. No Famous Bulgogi Brand ― Why? 4. Is the Korean Church Different from ‘Salvation Sect’? 5. Building a Global Korean Community

- Essays 1. North Korea’s Economic Policies and Unification 2. Germany’s Competitiveness Rises despite Rapid Population Aging

- Features 1. Kevin O’Rourke Dedicated to Translating Korean Literature 2. Kim Jong-hoon Leads ‘Walk Together’ Supporting Blind Musicians’ Orchestra

- Book Reviews 1. Still a Factory Society, Korea should Shed Standardization and Collectivism 2. Exchanges between 18th-century Korean and Chinese Intellectuals

- Interview 1. Robert Fouser: “I love the bright sunshine flooding the courtyard of my hanok house.” 2. Yun Mi-wol: “I wanted to show people the elegant food that Koreans put on the dinner table.”

- COPYRIGHT

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- Chinese Wind in Seoul, Japanese Wind in Pyongyang

- Our Choice after Sewol Disaster

- Renovate the Nation? Let’s Shed Our Hypocrisy First

- Stability of Civil Servants Threatens Public Wellbeing

- Post-Sewol Tasks Require Slow, Tenacious Efforts

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Chinese Wind in Seoul, Japanese Wind in Pyongyang

Kang Chun-seok

Editorial Advisor

The Chosun Ilbo

Chinese President Xi Jinping came to Seoul on July 3. It was the first time that a new supreme leader

of China visited South Korea before North Korea and the first time that Seoul was the exclusive

destination of a Chinese president rather than a stop on a multi-nation tour.

A few hours before President Xi’s arrival, Japanese Prime Minister Shinzo Abe announced that his

government would lift part of its economic sanctions on North Korea. Since the North’s launch of

ballistic missiles in July 2006, Tokyo has been imposing punitive measures. Abe said the North’s

composition of a special committee to investigate its abduction of Japanese nationals makes him

confident that Pyongyang is sincere about resolving the issue.

At the same time, there were reports speculating on Abe visiting Pyongyang this year and on a foreign

ministerial meeting between Japan and North Korea next month. The Japanese wind blew into the

North from the east in the morning and the Chinese wind from the west whipped Seoul in the

afternoon.

China and Japan truly are our close neighbors, so close that they know everything about the Korean

peninsula and make the most of their knowledge. Besides his summit talks with President Park Geun-

hye, Xi delivered an open lecture at Seoul National University. He used the occasion to touch on

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historical sensitivities, noting that “both Korea and China suffered enormously under the Japanese

militarists’ barbaric invasion and encroachment of our territories.” In those days, the two peoples

helped each other in life-and-death struggles, he said. His historical recollection stretched several

centuries back to the Hideyoshi Invasions of 1592-1598. “In critical situations in history, Korea and

China overcame them through mutual help,” he observed.

History is recounted and rewritten constantly to reflect current conditions and needs. Since the

beginning of the Abe administration, the question of historical distortions has stirred Northeast Asia

without a pause. It also has committed Japan to the U.S. scheme to form a containment front against

China. Beijing’s biggest concern is thus South Korea’s stance toward the endeavor.

Xi’s lecture covering the history of relations between Korea and China should be interpreted in

consideration of China’s need to exploit soft spots in the relations between Korea, Japan and the

United States. As we see, China tries to utilize the power of history in order to seek a breakthrough

in present conditions while in Korea, the weight of historical controversies involving Japan delays

the resolution of current issues.

Whereas Xi’s review of the history of bilateral relations between Korea and China was a shrewd but

indirect approach, Abe’s sudden press announcement on the partial lifting of sanctions on the North

was too obvious and transparent an action. It is natural that the Japanese government makes the

turnover of abductees held in North Korea a top priority and that Abe uses the issue to recoup

domestic support for his administration, which has been sliding.

We can only point out that Abe would not have chosen such a time and method for his announcement

if he had improvement of relations with Seoul on his mind. He was totally unaware of Koreans’

displeasure with his July 3 press conference, in which he displayed his overture to Pyongyang in

response to Xi’s visit to Seoul.

On the surface, Park, Xi and Abe were the lead characters on the Northeast Asian stage over the last

few days. But, when closely watched, they were all conscious of someone behind the scene ― U.S.

President Barack Obama. Park did not commit to Xi’s proposal to hold joint memorial events next

year to mark the 70th anniversary of the end of anti-Japanese struggles. She also avoided directly

mentioning Japan in the joint statement and press conference that followed her summit with Xi. That

was done in apparent consideration of Washington’s concerns about sturdiness of the Washington-

Seoul-Tokyo triangle.

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Xi, on his part, did not mention the United States in his public lecture but harshly criticized Japan.

Abe’s relaxation of sanctions on North Korea did not include the U.N. resolutions adopted in response

to its nuclear and missile tests. They were all paying attention to the United States which is a most

important party in the Korea-China, Korea-Japan and China-Japan relations.

A very abnormal situation prevails in Northeast Asia. While Park and Xi have so far met five times,

neither Park nor Xi has held summit talks with Abe. Mutual distrust has grown in the meantime.

Dialogue does not necessarily ensure resolution of problems but it can at least serve as a safety valve

against misunderstanding and miscalculation. Northeast Asia is turning into a minefield without

proper protocols for safety.

The current asymmetrical discourse between the three states of Northeast Asia should essentially be

attributed to Abe. Yet, in international relations, players do not share the consequences of any

development in proportion to their respective responsibility. And, more often than not, all parties

become victims in a conflict regardless of their role in exacerbating the situation.

In Northeast Asia, alliances are changing both in quality and contents. The windows of opportunity

and crisis are constantly opening and shutting as winds blow in all directions. The China wind and

the Japan wind rattled Seoul and Pyongyang simultaneously on July 3. Winds are getting stronger but

we should not let our minds be shaken before our bodies. The Republic of Korea should stand firm

at all times.

[ July 7, 2014 ]

www.koreafocus.or.kr

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Our Choice after Sewol Disaster

Song Hee-young

Chief Editorial Writer

The Chosun Ilbo

Japan’s postwar baby boomers played a major role in rebuilding their country into an economic

power. One of the incidents that shocked them was the “Asama-Sanso hostage crisis” in February

1972. It was like a battlefield. Five armed members of the communist terrorist United Red Army

exchanged gunshots with police for 219 hours after breaking into a resort lodge at the foot of Mt.

Asama in Karuizawa, an upscale resort area, and taking a few hostages, including the lodge manager.

The 10-day gun battle was broadcast live. Ratings for the TV coverage peaked at 98.2 percent. The

URA radicals were arrested, but three people were killed and 27 others wounded. The incident

overlapped with the release of a Sony state-of-the-art color TV and Japan’s GDP per capita reaching

$11,434, higher than the average of advanced European nations.

A Japanese university professor recalled, “I still can’t understand why armed young men, advocating

a communist revolution, took people hostage, though Japan had become a rich country.” After their

arrest, the Japanese were aghast again to find that the radicals had killed 12 betrayers. Many people

contributed articles lamenting the barbarity hidden deep in the Japanese people’s minds. Self-

deprecation was a buzzword among intellectuals.

The United States also experienced a similar shock as it became a powerful nation. Around 1912,

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when the Titanic sank, the Americans’ GDP per capita was $5,300, higher than that of the British. But

the shipping company of America’s JP Morgan was inferior to its British rival. It had no technology

to build a large passenger liner. To beat his British rival, John Pierpont Morgan, the JP Morgan

chairman, placed an order with a British company to build the Titanic and put the ship’s operation in

the hands of the British.

The Titanic, as we know it, is wrapped up with stories about a heroic captain and the heartbreaking

love of a young man and woman. But the reality behind these beautiful stories was no different from

those about the ferry Sewol.

The Titanic didn’t have enough lifeboats. Like the Sewol which sailed through thick fog, the Titanic

sailed in spite of iceberg warnings. The captain ran the ship at full speed to celebrate its maiden

voyage. There was not a single binocular on the ship’s watchtower to look around for any danger.

Aware that something was wrong with the Titanic’s ability to maintain balance and its abnormal

structure, some insurance companies had even denied coverage prior to its sailing.

A total of 1,513 people died. It was discovered that John Pierpont Morgan had a ballroom built and a

tobacco cabinet installed for his exclusive cabin, while paying no heed to the passengers’ safety.

Naturally, he was denounced for his extravagant luxury. During that year’s presidential election, the

entire group of JP Morgan was under fire. John Pierpont Morgan had a hard time at a congressional

hearing.

Around the time of the Asama hostage incident, the Japanese were ridiculed as “economic animals”

in the international community. Japanese tourist groups visiting the Louvre Museum following tourist

guide flags became butts of jokes in European media. Five months after the Asama incident, a

politician named Kakuei Tanaka won elections under the slogan of “Reforming Japan.” Despite the

rising property prices, Tanaka’s honesty and bulldozer style fascinated the voters.

Sony developed the Walkman portable audio cassette player and Toyota built a joint venture plant in

collaboration with GM. In other words, the Japanese advanced into the global market, instead of

fighting each other. Five years later, Japan represented Asia in the G7, a conference of major powers.

The Japanese rose up, overcoming their humiliation from the Asama incident.

When they were still reeling from the Titanic trauma, the Americans had no Federal Reserve Board,

a kind of central bank, yet. It was an immature nation that had no inheritance or gift tax to be levied

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on wealthy people. At the time, many Americans despised themselves, claiming that their country

was inferior to Britain or France. This was fully reflected in many literary works. Many nouveaux

riches fretted over how to express themselves in French at parties.

But the Americans filled the cracks on their path to a mature nation, increased their economic power,

and overcame barriers. The wounds from the Titanic catastrophe were healed as humanitarian and

civic awareness increased.

The Sewol ferry disaster and the accident in Seoul subway system a few weeks later occurred in

sectors that had never been exposed to international competition. Operators of both the ferry and the

metropolitan subway system were “frogs in a small pond.”

We boast about our globalization level, citing K-pop and the Galaxy smartphone. But there still are

many backward sectors. In the wake of disasters and accidents that occur one after the other, we may

lament our own callous disregard for safety and point our finger at others. Instead, we could turn them

into opportunities to fix problems and increase investments in the backward sectors. It is solely up to

us whether we can build our national capacity to overcome the shock and move forward.

[ May 3, 2014 ]

www.koreafocus.or.kr

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Renovate the Nation? Let’s Shed Our Hypocrisy First

Cho Yoon-je

Professor of Economics

Sogang University

Renovating the nation is a hot topic these days. A nation consists of people and systems and both need

to change to have a successful overhaul. Even if proper systems exist, catastrophes like the Sewol

ferry disaster could occur frequently, if the people do not respect them. And if there are problems

with the systems, it is difficult to persuade people to behave properly. As such, the first step toward

setting things right is self-reflection.

The 66-year history of the Republic of Korea is a proud one. We have achieved phenomenal economic

growth and democratization to the amazement of people around the world. Still, the nation needs to

be reconditioned. There is deep public distrust of the government and leaders and dissatisfaction with

overall conditions in society. Widespread unfairness, corruption, irregularity, irrationality and

inefficiency fuel the negativity. The consequential anger and frustration are exacerbating

confrontations, conflicts and antagonism.

To resolve the situation, governance and public behavior need to be revamped dramatically. Above

all, leaders and elites should change first. They currently lack competence, sense of responsibility for

future generations and moral integrity. I include myself in this group.

In many advanced countries, companies, markets and state agencies operate very rationally and

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efficiently. They have well-designed systems and procedures. Highly skillful and diligent workers,

engineers, businessmen, soldiers and bureaucrats have made Korea what it is today. But if we are to

form a truly advanced society, politicians, journalists, scholars and bureaucrats need to equip

themselves with insights, capabilities and rationalities on par with those in advanced countries.

If we fail to create rational and realistic systems, darkness will blanket our systems. Punishment is

needed to eliminate the “bureaucratic mafia,” but government officials should first be given proper

rewards and incentives. At present, the salaries of Korean civil servants are based on their

bureaucratic ranks, regardless of differences in job requirements.

Thus, in the name of fairness and equality, salaries at an economy-related ministry of the central

government are the same as a division of a local government. This differs from many foreign

countries, where civil servants’ salaries vary according to ability and responsibilities. Officials in an

economy-related ministry are comparable to executives of corporations or private financial

institutions, not the head of a village administrative office.

I don’t mean to belittle jobs in terms of importance and substance. All jobs are honorable.

Nevertheless, can we expect prosecutors and judges, to remain satisfied with their low-paying jobs

for their entire lives? As such, after they reach senior posts, they often “parachute” into related

organizations or law firms, eventually forming collusive ties between the public and private sectors

to enjoy benefits of cronyism.

The very existence of such collusion and cronyism proves that systems and laws are not enforced

fairly in our society. After all, even though we are aware that efforts to instill fairness in officialdom

constantly backfire, no remedies are forthcoming. Instead, society demands unwavering sacrifice and

devotion from civil servants.

This is also true in education. As a result of a strictly standardized education system aimed at offering

equal opportunities to all children, the quality of public education has crumbled. Parents and children

are forced to rely on after-school private academies or studying abroad. Hence, the desire for equal

opportunity in the classroom is negated; children from wealthy families automatically have an upper

hand because their parents can afford expensive after-school academies and tutors.

To reform the country, we should first jettison our hypocrisy and restart by introducing more realistic

and rational systems and compensation schedules. Leaders and the people should put their heads

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together to discuss sincerely and earnestly what we really want to change and what steps we should

take to implement it. But the process should not be rushed. Even before we start constructing a small

house, we need to have numerous discussions with the architect.

It will require much more complicated processes to implement national reform. A hastily-formulated,

unrealistic plan will merely end up as another empty slogan. No progress will be achieved without

public consensus and participation. It’s been less than two decades since the nation resonated with

loud slogans for “creating a new Korea” and “rebuilding the country.”

The public should stop asking the president and other leaders to shed tears and start demanding they

analyze the situation and repair the governance system in a cool-headed manner. Only by doing so

can we turn the ferry disaster into a precious opportunity to reset the nation.

[ JoongAng Ilbo, May 24, 2014 ]

www.koreafocus.or.kr

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Stability of Civil Servants Threatens Public Wellbeing

Kim Chan-ho

Lecturer, Faculty of General Studies

Sungkonghoe University

“Only the sound of laughter comes from the hall where officials in full dress hold a meeting. Even

when handling state affairs, they seem to seek their own gains. Very few are really concerned about

the country and public affairs. They make light of their duties and treat government offices like private

taverns. Senior ministers boast of taking the middle path; the three palace agencies charged with

inspection, royal counsel and public relations deem it noble to remain silent. Provincial magistrates

believe that it is foolish to be clean-handed and frugal. The situation has now become irremediable.”

(From Taengni ji [Ecological Guide to Korea] by Yi Jung-hwan)

The “irremediable situation” lamented by the 18th-century scholar obviously continues to persist

today. There has been widespread criticism of Korean society in the wake of the Sewol ferry disaster

in April. But many people still believe that such a calamity can occur again at anytime, because the

causes nearly replicated those of previous disasters. It is hard to expect that the perilous circumstances

will change overnight.

One of the core problems is the inertia throughout the government bureaucracy. Here are some

examples of the invective hurled at civil servants after the ferry disaster: easy-going attitudes,

bureaucratic immobility, dereliction of duties, moral laxity, negligence, tardy reaction,

irresponsibility, incompetence, corruption, irregularities, inefficiency, self-protection, second-

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guessing, confusion, lack of coordination, making excuses, shoddiness, covering up, flip-flopping,

cronyism, collusion, backroom deals, outside pressure, deep-rooted evils, and so on.

A private company in a comparable situation would have dissolved a long time ago. Consumers turn

their backs when they encounter defective goods and services. Companies that grossly underperform

lose so much business that they are forced to shut down.

Of course, government agencies never die easily. No matter how serious its problems are, a public

administration system can hardly be replaced and the public must pay taxes without fail.

The employment status of civil servants is guaranteed by law, unless they are involved in egregious

corruption scandals or make preposterous mistakes. Although civil servants are constantly ridiculed,

their profession is coveted because of the job security. But when government jobs are sought for

personal comfort, they become daily breeding grounds for complacency, incompetency and

malfeasance, repeatedly producing man-made disasters like the Sewol sinking.

The misconduct of the public sector shown by the lead character in “The Square,” a 1960 novel

written by Choi In-hoon, still remains rampant in Korea. In the novel the protagonist says, “Only

backrooms abound, while the square is dead. Each backroom abounds with exploits depending on the

status of its owner. He fills it just as ants store up food. A good father who has sent his child to France

to study and a bad school inspector who has fired an honest teacher ― it is a paradox that these two

are the same person. Nobody stays in the square. The square becomes empty once the needed plunder

and swindling are done. The square is empty. Isn’t this South Korea?”

One preposterous thing after another is occurring in the empty square. Can the public sector be

rebuilt? We should lay the groundwork for a civil society on the one hand and straighten out the

meaning of civil service on the other. To this end, we should set up institutional devices to prevent

civil servants from abusing their power. At the same time, civil servants themselves should reflect on

their own identity.

Young people aspiring to become civil servants and parents hoping their children will become civil

servants should ask themselves the following questions: “Why do you want to be a civil servant?

What kind of civil servant do you want to be?” If young people desire civil service jobs because they

seek personal “stability” without asking themselves these questions, the public’s “wellbeing” will

always be in danger.

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[ Kyunghyang Shinmun, May 10, 2014 ]

www.koreafocus.or.kr

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Post-Sewol Tasks Require Slow, Tenacious Efforts

Kang In-sun

Weekend News Editor

The Chosun Ilbo

Last month the French Senate passed the “Bill Mathys.” Mathys is the name of a nine-year-old boy

who died of cancer. Before he passed away, the boy was able to spend a lot of time with his father

because his coworkers donated their paid vacation days to him.

The boy’s father, Christophe Germain, was an employee of a mineral water company. When his

coworkers heard that Mathys was very ill and may not recover, they decided on the donation and the

company approved the plan. As a result, Germain was able to care for his son for 170 days, without

having to quit or take a leave of absence.

After his son died, Germain sought to return the favor. He launched a campaign to establish a

foundation aimed at allowing workers to donate their paid leave to their coworkers who have children

with serious illnesses. His efforts bore fruit two years later.

The Make-a-Wish Foundation, a non-profit American organization that grants wishes to children with

life-threatening diseases, was initiated by a boy, who died of leukemia, and his neighbors who helped

him. Chris, a seven-year-old boy in Arizona, had wanted to be a police officer. But as his condition

deteriorated quickly, there seemed to be no chance for the boy to fulfill his wish. His neighbors

stepped in. They made a custom-tailored police uniform for him and let him ride in a patrol car and a

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police helicopter. He died soon afterwards. But his name remains with the Make-a-Wish Foundation,

still delivering a message, “Don’t lose hope despite pain.”

Stephen Sutton, a British young man, died of cancer when he was 19 years old. He was diagnosed at

age 15. Because of his poor health, he gave up his dream of becoming a doctor and turned to raising

funds to help teenage cancer patients. A total of 130,000 people from around the world have donated

4.2 million pounds (approximately US$6 million) in response to his message, “Change the world

even a little.” And small, but meaningful changes have since been occurring through them.

It has been a month since the Sewol ferry disaster shocked the nation. In the aftermath, we have been

so ashamed to see the “ugly face” of Korean society revealed by the young victims of the ferry

sinking. Their deaths illuminated the crooked and sick aspects of our society, and we thought we

should not go back to our daily routine without doing anything.

Over the past month, there have been calls for demanding the truth about the disaster, punishing those

responsible, reshaping the country and changing national character. Numerous national reform ideas

also have been debated. The government has vowed to eradicate cronyism and create a new agency

for safety. A 20-year plan may be needed to implement all of the suggestions heard.

However, public attention may soon drift to the next major incident while politicians argue about

grandiose national reforms from their conflicting partisan positions. It is hoped that everyone, whether

politicians, private citizens, or civic groups, will attempt to improve the situation, rather than seeking

something big and grandiose.

Anything, be it a law or a non-profit foundation, will be good enough, only if it paves the way for

rebuilding our country so we can raise our children in a safe environment. I propose pertinacious

efforts to solve the problems that led to the tragic loss of young lives. Let us not hurry but pursue

solutions slowly and painstakingly.

I hope that the young victims will thus be remembered as symbols of hope that made our society a

better place to live in. I hope that their names will remain wherever possible in our society, be it a law

or a charitable foundation or a reform project, as reminders of the painful incident that took place in

April 2014.

[ May 17, 2014 ]

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www.koreafocus.or.kr

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- Three Threats to the Korean Economy

- ‘Community of Investment’ will Help Resolve Northeast Asian Conflict

- Korea’s Patrimonial Capitalism and Creative Economy

- Urgency of Jet Fighter Program

- Learn about ‘Frontline Farming’ from Kinmen

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Three Threats to the Korean Economy

Park Jong-koo

Chairman of the Board

Korea Polytechnic University

A low fertility rate, rapid population aging and declining productivity constitute a three-prong threat

to the growth potential of the Korean economy. In the next five to 10 years, the demographic effects

will magnify into a transformational era. If Korea fails to maintain vitality in the run-up, it could slip

into “premature senility” before reaching advanced nation status, says Choi Kyung-hwan, nominee

for the posts of deputy prime minister for economic affairs and finance minister.

The low birthrate and the rapid population aging are the biggest worries. The 2014 World Fact Book

by the U.S. Central Intelligence Agency puts Korea’s birthrate at 1.25, or 219th out of the 224 listed

countries. The nation’s crude birthrate, or the average annual number of births per 1,000 persons, is

8.26, ranking 220th. Meanwhile, the average life span of Koreans was 81 years in 2012.

These trends already have made Korea one of the most rapidly aging nations. By 2060, it is forecast

to be the most aged nation, with 1.2 economically active persons supporting one senior citizen.

Not surprisingly, workplaces are graying quickly. The average age of blue-collar workers is 48 years.

Those in their 50s account for 19 percent of the workforce at small- and medium-sized corporations.

The rate for those in their 20s has been halved during the past decade. Thus, the share of the most

productive age group of people aged 25 to 49 in the total population is on a downward slope. This

age group accounted for 33.9 percent of the working-age population in 2013, down from 59.2 percent

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in 2007.

Unfortunately, many elderly Koreans are not financially prepared for retirement. Their poverty rate

is 47.2 percent, the highest among 34 members of the Organization for Economic Cooperation and

Development. This has forced an increasing number of senior citizens to return to the labor market,

after being forced to retire while in their mid to late 50s. The employment rate of those in their 60s

was as high as 30.9 percent in 2013.

One remedy to the low birthrate and the fast aging is to raise the portion of women participating in

economic activities. The trend line of women in the workforce is M-shaped. There is high

employment while they are in their 20s and early 30s. However, after their first child is born, they

often must stop working because culture values and lack of infrastructure such as a shortage of

daycare centers prevents a proper balance of work and home. If they ever return to work it is not until

they are in their 40s or older.

Korea’s rate of employment for women was 53.5 percent, 25th among OECD members, as of 2012.

The women whose career was disrupted totaled 1.95 million. It is necessary to minimize career

disruptions for women and actively encourage them to return to work.

Among the men eligible for childcare leave, only 3 percent use it. A mere 1.4 percent of women

whose career has been disrupted take job training courses. Those rates undoubtedly need to be raised.

The glass ceiling needs breaking as well. Women account for 1.5 percent of executives at listed

companies, placing Korea among the nations with the lowest rates.

Korea also needs a drastic change in its immigration policy. In today’s world economy, one highly

talented person can improve the lives of tens of thousands of people. Korea must think globally in

satisfying its needs for exceptional talent.

Thanks to its open-door immigration policy, the United States finds its median age is 39, lower than

43 for China, 44 for Russia, 49 for Germany and 52 for Japan. Germany, the economic powerhouse

in Europe, is concerned about its low birthrate of 1.4. If the trend continues, the French population

will exceed the German population in 2040.

Korean society is becoming multiethnic, with interracial marriages accounting for more than 10

percent of the total. It is following the footsteps of advanced nations, with Japan excluded.

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As for productivity, Korea ranked 28th among OECD member nations in 2012 in per-hour output. It

was lower than that of Taiwan, Hong Kong and other Asian economies. Productivity is low in the

service industries, in particular. It is 44.5 percent of the manufacturing sector’s productivity rate.

Job training needs to be tailored for the needs of workplaces. It is also necessary to supply trained

workforce as soon as there is such a demand. In this regard, Korea needs to emulate the kind of

apprenticeship-type job training that is found in Germany and Switzerland. It is also necessary for

students in vocational schools to balance training and studying.

To produce a new service industry with high added value, it is necessary to combine information and

communication technology with health and medical services.

Flexibility is the key to boosting productivity. It is necessary to reduce the income gap between men

and women and reduce reliance on non-regular workers for both manufacturing and service jobs. It

definitely is time to exert all possible efforts to raise the nation’s growth potential.

[ Korea Economic Daily, June 23, 2014 ]

www.koreafocus.or.kr

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‘Community of Investment’ will Help Resolve Northeast Asian

Conflict

Ahn Choong-yong

Chair Professor, Graduate School of International Studies

Chung-Ang University

Northeast Asia is sinking deeper into political conflict over contentious revisions of history and

territorial claims by its three core countries ― China, Japan and South Korea. Even military tension

is being felt amid competition in naval power.

On the other hand, trade among the three nations remains robust, building on steady expansion over

the past two decades. If economic relations continue to broaden, why can’t the political and military

tensions be eased? One approach would be a “community of investment,” built through large-scale

cross-border transactions that bring high-level talent, new technologies and new management skills.

Actually, the time has come to move beyond exchange of goods.

In this regard, the “Greater Tumen Initiative” in North Korea holds promise. The frontier development

project, sponsored by the U.N. Development Program, involves North Korea, China, Japan and the

Russian Far East. Robert A. Scalapino, a professor of the University of California, Berkley, defined

the resource-rich Tumen area as a natural site for an economic sphere of peace and prosperity,

provided that national logistics networks, finances and human resources are linked.

The Tumen project, straddling the intersection of North Korea, China and Russia, could be expanded

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to involve all of Northeast Asia. Then, South Korea, China and Japan would be able to attain what

they desperately desire ― sustainable growth and common prosperity ― with regional tension

ameliorated.

The three countries’ shared culture and their geographical proximity have facilitated mutual trade for

2,000 years. Around 100 B.C., Sima Qian of China, in his Shiji (Records of the Grand Historian),

described how merchants had amassed fortunes through business relationships built on honesty and

trust. In Japan, Ishida Baigan (1685-1744), well read in Confucianism, Buddhism and other Eastern

philosophical thoughts, taught how labor was a form of self-discipline and helped develop the

philosophy of tradesmen in Osaka, which put customers first.

In Korea, too, Jang Bogo of the ninth–century Silla period established a maritime business hub at

Cheonghaejin in the southern island of Wando for trade with China and Japan. During the latter half

of the Joseon Dynasty (1392-1910), Korean delegations visiting Japan to promote diplomatic and

cultural exchange left messages espousing good neighborly relations on signboards and walls of a

Buddhist temple at Shizuoka, where they stayed before entering Edo.

South Korea, China and Japan have become indispensable trading partners with one another, proving

that trade expands in proportion to gross domestic product and in reverse proportion to the

geographical distance between trading partners. In 2013, bilateral trade amounted to $229 billion

between South Korea and China, $94.7 billion between South Korea and Japan, and $307.8 billion

between China and Japan.

While the supply chains of manufacturing and service sectors are rapidly boosting bilateral trade,

foreign direct investments are substantially one-sided. Last year, South Korean and Japanese direct

investments in China amounted to $5 billion and $7 billion, respectively. But China’s direct

investment in its regional neighbors was a miniscule $200 million apiece. Similarly, Japan invested

$2.9 billion in South Korea, but South Korea’s direct investments in Japan amounted to no more than

$700 million.

Trade in goods can be turned off and on. But a company that has moved operations offshore functions

nearly the same way as domestic businesses of its host country. The purpose of foreign direct

investment, of course, is to lower a company’s operating costs while diversifying its supply chain. In

doing so, the company brings in different technologies, which often spurs local peers to adopt new

technologies and develop new products to sustain their competitiveness.

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South Korea, China and Japan, with their combined population of 1.5 billion, constitute a huge

consumer market. The three countries concluded an investment protection agreement three years ago.

Liberalization for budget air carriers will bolster tourism, which will help nurture good neighbor

relations and travel-related service jobs.

A community of investment would encourage inter-connections among the three countries’

manufacturing and service sectors. At the same time, an inflow of foreign direct investment from

other regions will help establish more supply networks in this region. It will help promote

employment and welfare, surmount military conflict and turn this region into a sphere of peace and

prosperity.

South Korea should act as a catalyst in building a Northeast Asian community of investment by

concluding a bilateral FTA with China, a trilateral FTA with China and Japan, and bilateral FTAs with

other countries of the Pacific Rim. By doing so, South Korea will be able to pry North Korea’s doors

open to the outside world and lay the foundation for a Eurasian community, with the Korean peninsula

positioned at both the starting and ending points of its envisioned 21st century Silk Road.

[ JoongAng Ilbo, May 10, 2014 ]

www.koreafocus.or.kr

Page 26: Korea Focus 2014 07

Korea’s Patrimonial Capitalism and Creative Economy

You Jong-Il

Professor of Economics

KDI School of Public Policy and Management

In the French novel “Le Père Goriot,” a criminal named Vautrin advises that marrying into a wealthy

family is the greatest possible success a man can hope for. Nothing better reflects the reality of Europe

in the 19th century than this story written by Honoré de Balzac, according to French economist

Thomas Pikety. He says that the capital distribution on assets inherited by the top percentile in wealth

was 2.5 times more than the income of the top percentile earned from labor.

This is emblematic of patrimonial capitalism. Greater privilege and fortune are endowed on those

who have inherited wealth than those who have made it through hard labor.

In his best-seller “Capital in the Twenty-First Century,” Pikety warns that the United States and

Europe, with their income inequality ever worsening, are now headed for patrimonial capitalism. He

argues they need to heavily tax capital income to avoid slipping into a horrible situation.

In the United States, return on assets account for 40 percent of the income of the wealthiest 1 percent

and 70 percent of the wealthiest 0.1 percent. With income and wealth inequality aggravating, Pikety

predicts the imbalance will swell further. Capital inheritance is a disaster that defies meritocracy and

democracy.

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Undeniably, Korea is awash with capital inheritance. All but a few of the wealthiest individuals

inherited their fortunes from their parents or grandparents rather than earn it themselves. According

to a survey by chaebul.com, members of families with inherited wealth own 85 of the top 100 holdings

of publicly traded stocks. Moreover, many of them have inherited not just assets but corporate control.

Those inheritors wield unchallengeable power over large groups of business enterprises. Some of

them pursue their own interests in defiance of relevant laws or even have new laws written in their

favor. Few Korean start-ups grow into large corporations as chaebol with inherited wealth have

already built up impregnable fortresses. The Korean economy is very different from the U.S.

economy, which helps start-ups grow into blue chips like Microsoft, Google, Amazon and Facebook.

Ten days have passed since Lee Kun-hee, chairman of Samsung Group, was hospitalized after

suffering a heart attack and losing consciousness. Amid rampant rumors about his condition, public

concern is focused on the power transfer at Samsung. This is a matter of great magnitude, given the

enormous influence Samsung Electronics and other Samsung affiliates have on the Korean economy.

But there is no debate on who is best qualified to manage the entire Samsung Group. It is naturally

assumed that Lee’s only son, Jae-yong, will take the reins. The rumors involving the succession are

solely about how Samsung may restructure to ensure Jae-yong has controlling stakes.

Samsung Electronics is one of the largest corporations in the world. It was 14th in the 2013 Fortune

500. It is extremely abnormal and nonsensical for the control of such a conglomerate to be handed

over from father to son. Its top manager should be selected from among seasoned professionals who

have proven managerial skills. This is all the more important now, with Samsung under pressure to

explore a new path instead of remaining a fast follower.

When the nation’s economy is put under the control of vested rights of inherited capital, there will be

little creativity and innovation. A “creative economy” being championed by the government should

begin with ending hereditary capitalism.

[ The Hankyoreh, May 20, 2014 ]

www.koreafocus.or.kr

Page 28: Korea Focus 2014 07

Urgency of Jet Fighter Program

Kim Kyung-min

Professor of Political Science

Hanyang University

Korea is set to export the FA-50, a light combat aircraft, to Indonesia and Iraq. To achieve its next

aim of becoming a top aerospace exporter in the next 20 to 30 years, Korea has to make a decision as

soon as possible on its jet fighter development program. Code-named the KFX and also known as the

Boramae program, the project has been under discussion for some 14 years. It will cost 6 trillion won

or 8 trillion won, depending on whether the combat plane has one engine or two engines.

The FA-50 is a combat version of the T-50 Golden Eagle, a supersonic jet trainer and light attack

aircraft. It was unveiled in 2006 and has attracted attention for its capabilities and lower cost

compared to advanced U.S. and European jet fighters. The United States considers the FA-50 suitable

for aerial combat training and developing countries are attracted to its price ― $20 million to $30

million versus $100 million for an F-35 fighter.

Korea has high hopes of exporting 1,000 FA-50s to the United States and Peru as well as Iraq,

Indonesia and the Philippines. Yet, it was not easy for Korea to make a decision on the FA-50 program

in 1997, known at the time as the KTX2 advanced trainer program. The cost was estimated at 1.4

trillion won. One policymaker after another postponed making a decision. It was once shelved

following a feasibility study conducted by the government’s think tank, the Korea Development

Institute.

Page 29: Korea Focus 2014 07

Korea wants to develop an aircraft with F-16-plus capabilities by the mid-2020s. The project would

provide a good opportunity to advance the nation’s technology for jet fighter production, which would

strengthen its military self-sufficiency as well as enhance its viability as an exporter of a relatively

inexpensive jet fighter.

Japan is working on a Shinshin stealth fighter. China is developing a J-15 stealth fighter. Eurofighter

Typhoons are produced in Europe. France has a Rafale model. These fighters are so expensive that it

is assumed that developing countries won’t be able to afford them for the next 30 years to 40 years.

As such, if South Korea produces a less expensive jet fighter, it would be well positioned in a niche

market.

Part of the debate about the proposed next-generation jet fighter is whether it should have one engine

or two engines. But having toured the F-35 and F-15 plants in the United States, the Rafale plant in

France, the F-2 plant in Japan and the Eurofighter Typhoon plants, I believe engine technology will

be so advanced in the future that a single-engine model will not compromise pilot safety. It would be

cost-saving and more competitive.

Former Japanese Prime Minister Yasuhiro Nakasone said that a nation needs to overcome two science

barriers to become an advanced country ― nuclear and aerospace engineering. Japan already is an

advanced country in this regard. Korea is catching up with Japan in nuclear engineering and has

started to export nuclear reactors. But its space industry is in an infant stage, and it has just laid the

foundation for an aircraft industry.

Now that it is about to begin exporting the FA-50 attack aircraft, Korea should avoid any disruption

in the growth of its aircraft industry. Companies participating in aircraft assembly have to focus on

technology by pouring resources into research and development.

The jet fighter program also would boost the production of passenger planes. Japan has gained trust

from the international community by producing Boeing 787 Dreamliner wings. Similarly, Korea

needs to develop carbon fiber composites technology. It also needs to develop materials technology

and produce beta titanium alloys that are used to manufacture engine blades.

Leading Korean corporations should invest and assume the accompanying risks to give the next

generation a chance to develop cutting-edge technologies. The business community should be

Page 30: Korea Focus 2014 07

compelled by not only profit but a concern for national security. In this regard, the Boramae project

should be launched as soon as possible.

[ Seoul Shinmun, May 22, 2014 ]

www.koreafocus.or.kr

Page 31: Korea Focus 2014 07

Learn about ‘Frontline Farming’ from Kinmen

Kim Han-ho

Professor of International Trade and Development

Seoul National University

South Korea’s northernmost islands off the west coast ― Baengnyeongdo, Daecheongdo,

Socheongdo, Yeonpyeongdo and Udo ― are vulnerable to North Korean provocations. Residents in

the islands have been more anxious since the North Korean artillery attack on Yeonpyeong Island in

2010.

Kinmen, a small archipelago in the Taiwan Straits, is in a similar situation. Lying only 2 kilometers

from mainland China, the islands were regularly hit by artillery fire from China in the 1950s, but

reduced tensions allowed a return to civilian rule in the mid-1990s. Today, tourists from China can

fly directly to Kinmen.

Kinmen produces world-renowned kaoliang, or sorghum wine, despite severe environmental

limitations to growing sorghum. Most of the 150-square-kilometer island is barren. Only one-third is

arable. Sorghum farms on Kinmen can only produce 10 percent of the needed supply to produce the

liquor annually. The distiller, a corporation managed by the county government, buys the entire crop,

though it can fetch lower prices from other sources.

Sorghum farming on the island cannot be profitable on its own, given the small areas of cultivation

and their low yield. But the local government, agricultural cooperative and Kinmen Kaoliang Liquor

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Inc. collaborate closely to assist the island’s sorghum farmers. Consequently, the price of locally

produced sorghum is 50 percent to 100 percent higher than the sorghum brought to the island.

The county government and farmers sign contracts on the area of cultivation, output and quality. The

cooperative purchases on behalf of the county government, and dries, stores and transports the

sorghum to the distiller, lowering the farmers’ expenses. The kaoliang thus produced is sold in Taiwan

or exported.

Production of high-quality kaoliang by the county-invested corporation raises the county’s revenues

and ensures the financial sustainability of local farmers. In other words, the local government, the

farmers and the liquor company are committed to ensuring sorghum farming continues smoothly.

In frontline areas, it is necessary to support residents so they can make a living from farming or other

types of work. The continued presence of residents in those areas should be a priority in defense

policy. As such, the non-profit production of sorghum in Kinmen may appropriately be called

“defense farming.”

Baengnyeong Island, with an area of 51 square kilometers, is the largest among the five northernmost

islands. Its arable land is 14 square kilometers ― equivalent to one-third of Kinmen. It is the closest

to North Korea among the five northernmost islands, with the distance being 10 kilometers. Of the

5,500 residents, 2,200 are from farming families and another 700 from fishing families.

The island has little manufacturing. The lodging businesses and eateries, both linked to tourism, have

notable presence in the island. In terms of territorial management, however, the farmers are playing

a far more important role. They produce a variety of agricultural goods in small amounts regardless

of their profitability.

Just as the sorghum growers in Kinmen have a kaoliang distiller, so do the farmers in Baengnyeong

Island have a military base. The farmers provide vegetables and other crops to the base, which is a

major source of their income. Yet, the provision amounts to a small portion of the needs at the base.

The farmers on Baengnyeong Island are similar to the sorghum growers on Kinmen in many ways.

Most notably, they too have very little tillable land. On the other, the sorghum growers are better

positioned than the farmers on Baengnyeong Island. They benefit from the production of a world-

renowned liquor while the Korean island offers nothing comparable.

Page 33: Korea Focus 2014 07

It is about time for the agricultural cooperative of Baengnyeong Island to conclude a supply contract

with the military base. It is worth considering the implications of Kinmen’s “defense farming.” It is

not the security threat from North Korea alone that makes livelihood on the frontline islands difficult.

In the aftermath of the Sewol ferry disaster, ferry companies have come under pressure, making it

even more difficult for island residents who rely heavily on ferry service.

Even in the absence of maritime disasters, life on the frontline islands is tough enough. Residents of

the islands need special policy considerations. “Defense farming” can be among the viable programs.

[ Seoul Shinmun, April 30, 2014 ]

www.koreafocus.or.kr

Page 34: Korea Focus 2014 07

- Unchanging Moral Requirements for Rulers

- Society’s Values are Upside Down

- Yet, What I Want to Say is ‘I Love You!’

- Character Education should be Cornerstone of Society

- Universities Need Market Principles Instead of Red Tape

Page 35: Korea Focus 2014 07

Unchanging Moral Requirements for Rulers

Park Sung-hee

Professor, Division of Communication & Media

Ewha Womans University

Koh Seung-duk, a celebrity lawyer and former lawmaker who was leading the race for Seoul’s top

education post in the June 4 local elections, lost his bid after his daughter posted a message on her

Facebook page. After reading it, Koh said, “I was shocked and devastated by her post.” So were

voters. The event brought to light the strained relationship between a father and a daughter from his

ex-wife.

This was a noteworthy event in terms of communication. The speed of the message across

geographical and language borders and the intensity of its impact were simply astonishing. The effect

surpassed the “hypodermic needle theory” of communication, which hypothesizes the mass media’s

ability to trigger desired behavior by “injecting” people with pointed messages.

The daughter, who identified herself as Candy Koh [her American name], claimed in her open English

letter to Seoul citizens, “Candidate Koh Seung-duk, who never partook in the education of his own

children, is not qualified to be Seoul’s superintendent of education.”

There have been sayings related to this type of situation since ancient times. In the 5th century B.C.,

Zisi, Confucius’s grandson, wrote in a chapter of “The Great Learning” (Daxue), one of the Four

Books in Confucianism: “If one cannot teach his own family, he cannot teach others, either.” “The

Page 36: Korea Focus 2014 07

Book of Odes” (Shijing), the earliest collection of Chinese poems, also has an entry that expresses

the same observation.

“The Great Learning” was aimed at noble persons (junzi) who dreamt of ruling the world. It was

written on bamboo strips to be passed around among a small number of intellectuals. Candy Koh’s

post targeted an election, an event that did not even exist in ancient times. She used Internet social

media to inform a mass audience. The message of her post was far from new but her method of

communication was dazzlingly fresh.

Nowadays, when they say even walls have ears thanks to SNS such as Facebook and Twitter, public

exposure of the “private community” of families has become a fixture. Whether one likes it or not, a

front-row view of families has become routine.

As the reality TV show “Dad! Where Are We Going?,” featuring the clumsy childcare of celebrity

dads and their children’s innocence, drew popularity, “Superman Returns” spotlighting a dad and his

child spending 48 hours together gave birth to a cute little star nicknamed “Choovely” (a coinage of

the girl’s name, Choo Sarang, and the English word “lovely”).

“Blissful Life with Children,” a TV group talk show in which parents appear along with their children

to discuss their family lives, “Welcome to In-Laws World,” where mothers-in-law and daughters-in-

law open their hearts to each other, and various other therapeutic programs have been introduced one

after another. Some cast members have become so famous as to be recruited as commercial models.

During election seasons the news media automatically turns toward candidates’ families. In last

month’s local elections, during which the factor of family was especially conspicuous, Seoul mayoral

candidate Chung Mong-joon also found himself in trouble when a short message written by his son

spread via SNS, and Seoul Mayor Park Won-soon had to make a public appearance with his wife in

order to quell suspicion that his wife, who rarely appears in public, went abroad to undergo plastic

surgery. On the other hand, the son of Cho Hee-yeon, Seoul’s another education superintendent

candidate, formed a good contrast with Koh Seung-duk’s daughter by pleading in public, “Please help

my father.”

Thousands of years ago people already regarded moral cultivation and home management as an

inherent virtue of a ruler. They believed that even a person with no prior experience of ruling the state

wouldn’t stumble badly if he has sincerely dealt with every matter. They believed they could measure

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the potential of a would-be ruler through his family. It is feared that such a virtue might now be a

political tool to produce and manage like an election poster. If you don’t open your family to the

public, you may be suspected of being a recluse, but if you are too aggressive in displaying your

family, you may be accused of crass marketing.

Under these circumstances, American political consultant Frank Luntz has advised politicians “to be

simpler, more straightforward, and stay more in touch.” Politics is a life-long occupation. You can’t

act your entire life. Hence, he advises that the best communication strategy is to live naturally as your

desirable self at all times, keeping in mind Abraham Lincoln’s famous saying: “You can’t fool all the

people all the time.”

Now, voters acutely need “media literacy,” with which they can discern whether a candidate feigns

moral self-regulation and successful family management. In the sea of information, there are a lot of

items to verify other than moral virtue. Voters need to know how to actively collect, interpret and

accommodate bits of information with a critical mind. Only then can they prevent politics from being

reduced to an easy lifetime job for thoughtless people.

[ Chosun Ilbo, June 9, 2014 ]

www.koreafocus.or.kr

Page 38: Korea Focus 2014 07

Society’s Values are Upside Down

Doh Jung-yil

Literary Critic; Dean

Humanitas College, Kyung Hee University

It is never easy to correct a pecking order of social values that places money above people. But it

must be set right to have a livable society. To this end, determined, vocal efforts are needed as well

as new ways of functioning that are fundamentally different from business-oriented thinking.

Education must change, too. We remember a young mother who immigrated to other country after

losing her kindergarten son in the so-called “Sealand Tragedy” in June 1999. After watching the

follow-up investigation of the theme park accident, she felt that she could not live in a country like

this anymore. A former field hockey player, she returned all the state medals that she had received

and left a piece of advice that Korean society examine itself.

In the summer of 1999, she was not the only person who could not bear the trauma of a tragic accident.

A father, who lost his daughter to the collapse of the Sampoong Department Store in June 1995,

committed suicide at his daughter’s grave. It was learned that he had quit his job and roamed around

his daughter’s grave before deciding to kill himself.

The Sewol ferry disaster of April 16 is indeed tragic in itself, but we are even more appalled at its

similarity to many previous accidents.

Page 39: Korea Focus 2014 07

Since the catastrophic sinking of the ferry Seohae in 1993, the nation has had dozens of maritime

accidents of various scales. The repetitiveness is truly shocking. Each time we ask ourselves why

such accidents occur over and over. Yet, in the past 20 years, we have failed to change anything. Now,

the investigation into the Sewol disaster presents another opportunity to resolve the causes of this

horrifying repetitiveness.

Why haven’t the causes been neutralized already? After all, they are well known. I think there are

two reasons.

First, there is a basic lack of will to stop longstanding practices, including conflict avoidance, mafia-

type back-scratching alliances and dark symbiotic relationships. In our society, identifying the causes

of problems and resolving the problems are often two separate things.

In the shipping business, for example, people realize the danger of overloading a vessel. Yet, cargo

capacity is ignored too often. Owners simply pay a fine if the violation is detected, or may offer bribes

to inspectors to look the other way. In our society, knowing the causes of a problem doesn’t

necessarily open a path to resolution.

Secondly, our social and political will to find more fundamental root causes of a problem, expose and

analyze them, and search for a solution is virtually paralyzed. The paralysis is deeply related with the

prevailing social unconscious that silences the intellectual and spiritual energy necessary to sustain

our society. As a result, we have a society that does not think.

If we are to earnestly use the Sewol tragedy as a springboard to help stop the recurrence of similar

accidents, I would once again repeat a request that has been made dozens of times since the Seohae

ferry fiasco two decades ago but has never been respected: “Koreans, please renovate the country you

live in.”

In 1999, at the threshold to the 21st century and in the wake of the Sealand tragedy, I wrote a magazine

article that included the following:

“What does the 21st century mean to us? What should we do? As a society, nation and people, what

we should do quietly but adamantly is to ‘renew our society’ for Korea’s 21st century. Just as all

creation rejuvenates in the spring, a society has to be renovated periodically. When a society has

become rotten and decomposed to swarm with death and the stench even reaches the universe to make

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stars cover their nose and hide their face, this definitely means it is time to renovate the society. This

is what our society currently looks like. However, we don’t have the will to completely renovate our

rotten society, which is teeming with death and stench, and the cycle of renovation is too long. And,

above all, we are not aware of the need to renovate our society. Without the awareness, there can’t be

any will or any program for renewal.

“Let’s think. If the 21st century is not for renewal, what would it be for us? Without an action program

for renewal and its implementation, the 21st century would mean nothing to us, but an extension to

another century of death and stench. It has never been so desperately necessary for us to eradicate our

negative traits and have collective determination to build a new house, a new society where human

values are revered and everyone can live like a human being. When we recover our ability to be

shocked at a shocking thing, feel heart-broken at a heart-breaking thing, and reflect on ourselves and

then fix our mistakes ― the power for renewal comes from this ability. Before celebrating the advent

of a new century, we need the time for painful and severe introspection.

“However, the first thing Koreans will face in their self-reflection is the fact that the seemingly simple

task of recovering the ability to become human is the toughest thing in their society today. The reason

is simple: the value order in this society has been reversed. That is, we set a cheap price on precious

things while setting a hefty price on cheap things. The reason why people leave this country is because

they realized that people are treated as cheap objects in this country and that they cannot protect their

loved ones here.”

If the post-Sewol period cannot be a painful catalyst for our renewal, what else does it mean to us?

Should we waste time again? Not only in our society but also around the world today, it is far from

easy to correct values in a society where money is considered more important than man.

Two questions should be at the core of the new method for operating our society: “What causes a

society to fail?” and “What kind of society do we want to build?” A society that always ponders these

two questions is a society that thinks and practices self-reflection. Only this kind of society can secure

the ability to minimize failures.

[ The Hankyoreh, May 9, 2014 ]

www.koreafocus.or.kr

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Yet, What I Want to Say is ‘I Love You!’

Park Bum-shin

Novelist; Chair Professor

Sangmyung University

More than 20 bodies of our sons and daughters and neighbors have yet to be found. They are the

missing victims of the capsized Sewol ferry, lying 40 meters under the surface of the sea. While

washing the dishes, my wife grumbles, “We are living in a world where we can make a trip even to

the moon, but why…?” But, as the head of my family, I couldn’t respond. “Dad, please tell me how

I can protect my children from now on,” asks my daughter who is the mother of two daughters, with

angry tears in her eyes.

Despite being a grandfather responsible for protecting my grandchildren, I could not find anything to

say. Since I live in a society where fathers are in charge of everything, I felt ashamed and sorry for

my family. Nevertheless, I couldn’t even say how sorry I felt. If the household heads and fathers

cannot protect their families, who on earth is going to defend the nation and history?

Right now, every Korean should feel the way I do. Every father and mother in this society has been

buried in the sunken ferry. So has every brother and sister, and uncle and aunt. Hence, I feel this world

is empty. Remaining in this world, striving to pass the blame onto someone else, are the ship’s selfish

crew, incompetent maritime police who saved no one, government officials who ineffectually

responded to the disaster, the head of state who attributed the disaster to the evils accumulated from

the past, manifesting her deluded understanding of reality, the greedy business owner for whom

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financial gains are the number one priority, and a cartel of corrupt people with vested interests

surrounding the greedy owner.

That is to say, it seems that a close-knit network of vested rights that has given top priority to money

is still persistently sticking to this world. How did things end up like this!

I remember feeling uneasy when not too long ago President Park Geun-hye called the reunification

of the two Koreas “daebak.” The presidential office later explained that the word signifies a jackpot.

A jackpot is a large prize typically won by a single person, leaving everybody else with little or

nothing. The fact that the president publicly used a vulgar expression that connotes a selfish desire

suggests that she realizes, subconsciously, that Korean voters strongly yearn for hitting a jackpot with

an attitude of “I only care about my own wellbeing.”

Our shameful greed that has seeped into our DNA while abiding by the ruling elite’s development

ideology has been objectified as a wholesome desire by the president. And then naturally, no Koreans

would hesitate to become the owner of Dapanda, an affiliate company of Chonghaejin Marine, the

operator of the ill-fated Sewol.

When the preoccupation of winning a jackpot, encouraged by the president, converts into a national

attitude of “da panda,” or “sell everything,” there will be no need for introspection or waiting. The

sociology of such a mentality attests to the general public’s blind pursuit of success that places priority

on money over life, even by giving up the last bastion of community that will enable us to build a

world where everyone can live happily together.

Grief turns into thorns that over a long period of time prick into our bodies, while anger develops into

sickness immediately. For this reason, like many other Koreans, I continue to feel sick these days.

There are some sorrows that tears can wash away, and others that tears cannot. The heartbreaking

sadness caused by the Sewol sinking, which cannot be washed away by tears, hasn’t yet turned into

thorns in our bodies. However, the anger over the tragic incident has already manifested into illness.

Nevertheless, I dare to say that this anger should last long. I do not mean that our anger should

continue until the last of the submerged bodies is pulled out from the sunken ship and a long list of

safety measures is drawn up, or until we clarify who is to blame and everyone responsible receives

due punishment. Instead, what I really mean is, our anger should not be subdued until every Korean

is ensured of their safety and can trust that, until we regain a profound insight into how we can achieve

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collective happiness in our society by breaking away from “the idol of selfish satisfaction.”

At this point, I wonder whether I have ever run away like the captain of the Sewol. This is the haunting

question that, as father to my children and as the head of my family, I had to ask myself before offering

my condolences to the victims and their families. We have to turn our sadness and anger into painful

thorns and carry them with us for a long time, instead of letting these feelings fade away with the

passage of time.

I grieved as though I was a “stateless person” while watching the long processions of the victims’

families that stretched from Paengmok Port on Jin Island, to Ansan in Gyeonggi Province, the

headquarters of Korea Broadcasting System, and the Blue House. Perhaps, some must have probably

thought they were “stateless.”

Fortunately, the situation is not entirely hopeless. We still have a strong sense of community, which

has been demonstrated by the long queues of mourners waiting for their turns to pay their respects to

the victims; numerous volunteer workers helping the families of the victims; those brave divers who

are jumping into the sea at this very moment to look for the missing victims, risking their lives; and

the hearts of ours locked up along with the victims in the sunken ship that is lying on the bottom of

the ocean.

During the past World Cup games, with gleeful cheers and challenging spirits, we experienced a

powerful sense of unity. Paradoxically, the sadness and indignation shared by many Koreans in the

wake of the Sewol disaster seems to attest that we have not lost our sense of solidarity as members of

a community. Indeed, we descend from our gallant ancestors who, even after kings and their minions

ran away for the sake of their own lives, fought against the enemies as voluntary militia to defend our

country through generations.

I wonder what this strange sensation is ― that I feel at times, amid deep sorrow, indignation and

hopelessness. I want to run out onto the street, stop anyone I see and cry out, “I love you!” The phrase

“I love you!” was the answer that I eventually gave my wife and daughter tossing me frustrating

questions.

The very words I want to say to the victims and their families are also “I love you!” I believe these

words contain all the sorrows and frustrations of the living, our heartfelt sympathy and a strong sense

of solidarity. This is because I still firmly believe that the strength that enables us to make the world

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a better place comes from love, not from money or power.

[ Kyunghyang Shinmun, May 15, 2014 ]

www.koreafocus.or.kr

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Character Education should be Cornerstone of Society

Editorial

The JoongAng Ibo

Ever since the Sewol ferry tragedy, Koreans have been suffering from the phenomenon of

disintegrating values. The captain and navigators of the Sewol discarded moral responsibility; the

ship owner, who was blinded by money so much that he drained ballast water out of the ship to load

more cargo, betrayed the value of honesty; and government officials, displaying incompetence,

lackadaisical attitudes and pursuit of private interest in the process of handling the case, obliterated

trust.

At this critical juncture, national renovation is under discussion. However, it should not be confined

to structural reforms, such as abolishing or creating certain government agencies. It should focus on

the restoration of core values such as responsibility, honesty, trust and consideration for others, which

have been missing since the ferry accident.

After all, we can’t help but start from education. The older generation should take this tragedy as an

opportunity for thorough self-reflection and infuse the young generations with core values that will

take root to support our society in the future. Elementary, middle and high schools should provide

students with social education so that they can better cooperate and communicate with one another,

instead of engaging in excessive competition to beat others to succeed in life.

In this sense, the bill on the promotion of character education, jointly proposed yesterday by about

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100 lawmakers from the ruling and opposition parties, is timely and desirable as a piece of legislation

reflecting their self-examination. Character development refers to becoming a true human being, or

acquiring the mindset and pattern of behavior based on basic values as a human being.

The bill encourages us to return to the basics. Ruling and opposition lawmakers, who had been sharply

divided over partisan interests, deserve applause for collectively backing this worthy cause. There

can be no difference between the ruling and opposition parties, or between liberals and conservatives,

about the need to cultivate community spirit and values, which will support our society, through

education and instill them into the hearts of the future generations.

Of course, a new law doesn’t solve every problem. Character education can’t be done verbally. Hasn’t

it long been ignored in school, pushed aside by education focused on college entrance? When the bill

passes the National Assembly, the government should display its firm will to act with an appropriate

budget allocation.

The government is advised to reform the current teacher recruitment system based on school grades

and institutionalize the practice of valuing would-be teachers’ character. Metropolitan and provincial

offices of education and schools also should draw up specific educational plans each year and agonize

over how to offer a better character education to students.

[ May 27, 2014 ]

www.koreafocus.or.kr

Page 47: Korea Focus 2014 07

Universities Need Market Principles Instead of Red Tape

Hyun Syng-yil

Professor Emeritus, Kookmin University

Former Chairman, Korean Council for University Education

Universities in Korea are buckling under regulations that hamper their development. An atmosphere

that encourages creativity, which is definitely necessary for education and research, is almost absent.

Nevertheless, there is no dissent coming from the universities so this reality is not known beyond

their campus walls.

A few years ago, claiming to “strengthen the competitiveness of universities,” the Ministry of

Education toughened the evaluation of universities and linked the evaluation results with

administrative and financial restrictions. The main indicators of the ministry’s annual evaluation

include the percentage of graduates who have landed jobs, the number of published research papers

by professors, globalization index, faculty recruitment rate, and procurement rate of school sites and

facilities.

These criteria are faulty and the fact that the Ministry of Education unilaterally controls the evaluation

and judgment process is an even bigger problem. Poor results bring restrictions such as limited

financial aid, reduced student quota, forced merger with other universities, and even closures. Hence

the universities have been diminished to helpless subordinates of the ministry.

Objective evaluation of each university is clearly necessary to compel the schools to improve and to

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give students and parents accurate information to make proper choices. However, instead of the

Ministry of Education with wrong criteria, evaluation should be done by a group of university people

and outside experts who have a deep knowledge of the content and characteristics of each field of

study and research activity.

In the case of employment of graduates alone, it is necessary to consider the quality of jobs and the

characteristics of each major. For example, if an art major gets a job as a company clerk, that doesn’t

mean the school provides better education in art. Besides, an art major doesn’t necessarily have to get

a job with set hours.

Also, private universities should be allowed to manage their own finances, including setting the

tuition, and half-off tuition should be applied only to national and public universities. Whether to

choose private universities or national/public universities is for the students and parents to decide.

The right way for the government to revise its support program for universities is to establish more

scholarships for the sake of equal opportunity in education so that students from poor families can

also go to expensive universities.

The schools that fall behind in competition should decide on their own whether they should merge

with other schools or close down. In this way, the university community will undergo natural

restructuring. As for private universities, it is urgently necessary to open a retreat route for their

investors, including founders, by letting them to donate the school facilities to the nation, convert to

a factory, or sell off in whatever way they want. Due to a decline in university enrollment, about 100

out of the nation’s 202 four-year public/private universities are expected to close down within the

next 10 years.

The Ministry of Education seems determined to restructure universities through administrative and

financial restrictions. On the other hand, poor schools that cannot even meet the half of their

admission quota are managing to survive with the financial aid from the government. I don’t have

faith in how the Education Ministry will implement the restructuring and wonder if the ministry even

has the ability to take on the huge task of restructuring.

For universities to become academic institutions worthy of their names, the right way is to let them

operate on market principles. Regulations on universities that suffocate their autonomy, whether they

are legal, administrative, or hidden measures, must be removed or modified as necessary. Yet, there

is one thing that the Ministry of Education needs to do as a supervisory office: educational

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management and administration. That is, the ministry needs to supervise the operation of universities

and ensure fair competition among them so that market principles work effectively. This is exactly

what the Education Ministry is required to do.

[ Chosun Ilbo, May 7, 2014 ]

www.koreafocus.or.kr

Page 50: Korea Focus 2014 07

- Right to Delete Me; Freedom to Protect Me

- Culture and Arts as Means for Comfort and Healing

- No Famous Bulgogi Brand ― Why?

- Is the Korean Church Different from ‘Salvation Sect’?

- Building a Global Korean Community

Page 51: Korea Focus 2014 07

Right to Delete Me; Freedom to Protect Me

Kim Byong-ik

Literary Critic

In the new novel “Your Shadow Is Monday,” the protagonist, Gu Dong-chi, is a private detective who

serves as a “deleter.” Gu, a former police investigator, erases all traces of his clients, including

documents, records, writings and photographs. A novelist, for instance, asks Gu to delete his

manuscripts, diaries, letters and emails after he dies, noting that his works are the result of numerous

drafts and he wants to prevent disputes over his archives by future researchers. Among other types of

clients are those who want to prevent their records from inflicting damage or criticism on others.

The novel was written by Kim Jung-hyuk, who is known for his curiosity in new things. Although

the story veers from cultural and psychological digging to suspense, the author’s wit in touching on

the blind spots of the digital era calls our attention to the act of “deleting.”

Another book, “Delete: The Virtue of Forgetting in the Digital Age,” says that modern society no

longer realizes the importance of “forgetting” because it is fixated on accumulating memories, and

thus its thinking has been flattened, lacking depth and tenacity of reasoning. The book, written by

Victor Myer-Schönberger, an Austrian-born scholar, emphasizes the importance of the right to delete

information.

Similarly, Han Byung-chul, a Korean philosopher in Germany, says that modern society is

“transparent” and works to “trim and standardize, eventually leading to uniformity and eliminating

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differences.”

I thought that culture is a concept that accumulates, remembers and memorializes, thereby renewing

thought and consciousness. But the convenience of digital civilization and the resultant paradox

named “information fatigue syndrome” has brought on befuddlement. I am forced to use digital

hardware but reject its features.

Actually, I am proud of belonging to the last analog generation, which is more reluctant than lazy to

learn how to operate digital equipment and to be comfortable with new technology. Although I use

computers and smartphones, I have limited their use to writing, Internet searches, phone conversation

and emailing. This notwithstanding, I did not hesitate to describe the advent of the digital age an

epochal event.

Although U.S. authors have some skepticism about this digital civilization, they appear to largely ―

and quite warmly ― welcome humanity’s entry into smart world following its discovery of genetic

engineering. They are generally optimistic about humankind’s future being cultivated by the

unlimited development of science. This is seen in works such as “What Technology Wants,” in which

the author, Kevin Kelly, sympathizes with the dramatic development of science and technology,

suspecting God is the final destination of the evolution of human civilization; and “Cognitive

Surplus,” in which the author, Clay Shirkey, expects humans will be able to create something

enormously wonderful thanks to 1 trillion hours saved by digital equipment.

Western Europeans have a different perspective. They worry about the uniformity spread by the

Internet and wonder if people are losing the patience to read a lengthy epic like Leo Tolstoy’s “War

and Peace.” The Old Continent also criticizes knowledge acquisition, saying it has merely become

externalization of memory. In this view, learning has evolved from the classical “wisdom” represented

by Socrates’ maxim “Know Thyself” to Francis Bacon’s modern “knowledge” epitomized by

“Knowledge is Power,” and to today’s access to “information” summed up by “I click, therefore I

am.”

Underneath the Western Europeans’ fears of digital civilization’s total surveillance system and their

worries about the informatization of humans are their experiences. They are highlighted in literature,

i.e., Jeremy Bentham’s “Panopticon,” in which people design a prison that allows one person to watch

many people simultaneously, and in real events, i.e., George Orwell leering at Stalin and warning of

a totalitarian society controlled by Big Brother; Germany’s holocaust and the Soviet Union’s “gulag

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archipelago”; and former East Germany, which forced people to spy and inform on their neighbors

for police. Europeans cannot easily welcome total surveillance, as seen by the movie “Minority

Report,” which describes a society that detects the possibility of crimes beforehand and prevents

them.

Take a look around and you will find our lives are also leaving various kinds of “digital footprints.”

When you use the Internet to watch videos, send mail, shop, or even ride a bus or take a stroll, your

every move is detected and recorded. This information amounts to the “big data” used in marketing

in modern capitalist societies, where people have forsaken God for money.

Faced with all kinds of PR material and programs coming from numerous websites that I have never

visited, I can only guess how many spying eyes there are to which I am exposed. It is horrible to just

think my personal information and most trifling acts could be sold as bits of data and my scribbles

could outlive me to serve as materials for talks behind my back.

Zygmunt Bauman, a Holocaust survivor and world-renowned media expert, has astonished me with

his vast knowledge of new media despite his advanced age. In his book, “Liquid Surveillance: A

Conversation,” which he wrote jointly with his former student, David Ryan, the 80-something scholar

points out that surveillance is being “produced” not just by people in power but by the very citizens

who are subjected to such controls.

Noting that Bentham’s Panopticon is the transformation of the 19th-century surveillance system,

Bauman introduces “banopticon,” which is aimed at removing unpleasant people and is equivalent to

“identity robbing” or “malicious replies” in Korea, and “synopticon” which refers to a crowd keeping

watch on a small number of celebrities. Through these concepts, Bauman discusses how people

expose themselves and volunteer to serve as surveillance targets by using devices and platforms.

Among such examples are SNS (social networking systems), including Twitter, Kakao Talk, YouTube

and Facebook. In “Transparent Society,” Han Byung-chul, too, sharply points out that “residents

themselves actively contribute to building and maintaining Panopticon by displaying and exposing

themselves.”

The activities of Edward Snowden, who revealed that the U.S. National Security Agency has gathered

information by tapping the phones of ordinary citizens and both unfriendly governments and allies,

constitute a bolder act of whistle-blowing than that of Owell’s Winston Smith who fights against Big

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Brother. Snowden’s revelations help us realize how thoroughly the digital world of the 21st century

controls and spies on us as well as the progress of civilization does not always provide a bright sense

of “wellness.”

In Luke Harding’s book, “The Snowden Files: The Inside Story of the World’s Most Wanted Man,”

the world-famous whistleblower is quoted as saying, “I don’t want to live in a world where everything

that I say, everything I do, everyone I talk to, every expression of creativity, or love, or friendship is

recorded.” This remark comes as the most touching cry that yearns for the right to freedom since that

of John Stuart Mill in “On Liberty.”

The fact that the Washington Post and the Guardian received the Pulitzer Prize this year, 30 years

after Orwell’s “1984,” for their reports on Snowden’s leaks, probably points to the concerns about

“Digital Big Brother” that have become very serious in the United States, too.

[ The Hankyoreh, May 2, 2014 ]

www.koreafocus.or.kr

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Culture and Arts as Means for Comfort and Healing

Lee Jong-deok

President of Chungmu Art Hall

Chairman, Board of Directors, KBS Symphony Orchestra

Not a day passes in May without being reminded of Albert Camus’s words, “If all the world were

clear, art would not exist.” When we think about the victims of the Sewol ferry disaster on April 16,

we feel anger and sadness dozens of times a day. The month of May has started quietly and calmly.

Already 250,000 people have visited and paid their respects at memorial altars and the streets are still

filled with yellow ribbons on which messages of condolences are written.

On April 25, as the recovery of bodies in the sea was under way, the KBS Symphony Orchestra

performed Verdi’s masterpiece “Requiem” under the baton of Yoel Levi at the Seoul Arts Center. The

“Mass for the Dead” rang more somber than usual. Conductor Levi paid his condolences by saying,

“Great sadness is upon us. I would like to dedicate this music to the victims and their families.” The

audience comforted each other’s souls wounded by the tragedy with their muffled cries.

The whole nation is in mourning. There are no more survivors; the numbers just shift from the missing

to confirmed dead. Amid the sadness, the Korean culture and arts community is cancelling or

postponing festivals and performances that had been scheduled in advance as an expression of grief.

The decisions should by no means be easy given the administrative procedures and economic burden.

The almost competitive rush to cancel stage performances is premised on the general perception that

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the essence of culture and the arts is to infuse joy and laughter. However, this is a very narrow view.

The ultimate goal of culture and arts is to comfort and heal. For example, after the Tohoku earthquake

and tsunami of March 11, 2011 in Japan, the world-renowned musician Ryuichi Sakamoto delivered

a message of hope to his fellow Japanese through music.

Sakamoto presented the “No Nukes 2012” concert tour to warn the public of the dangers of the

Fukushima nuclear power plant accident. Many popular Japanese indie bands and Germany’s famous

band Kraftwerk were invited to join the tour to console people’s wounds and raise funds for the

displaced residents of the Fukushima area.

With the whole nation in mourning since the ferry incident, Koreans seem to have forgotten the

healing power of culture and arts. Society is judgmental toward those who express their sympathy by

doing what they do best in their own way. Thus it implicitly enforces silence and solemnity as the

only proper way of mourning. This shows how rigid Korean society is in allowing freedom of

expression.

In the wake of the tragic incident, we need to take the time to make use of the emotional power of art

to purify and cleanse our souls so that we can heal one another’s wounds, share grief, exchange words

of comfort, and discover messages of hope. After the September 11 terrorist attacks in 2001, memorial

concerts across the United States paid tribute to the victims. When the Sampoong Department Store

collapsed in Seoul in June 1995, the popular folk singer Kim Kwang-seok carried on with his concert

to pray for the rescue of the missing along with his audience.

It was culture and arts that touched people’s hearts and quietly comforted them in times of tragedy.

Culture and arts should not hide. We should not overlook its ability to empathize and heal. It is time

for artists to act. They need not remain silent; they should be able to express grief in the way they

know best.

[ Seoul Shinmun, May 9, 2014 ]

www.koreafocus.or.kr

Page 57: Korea Focus 2014 07

No Famous Bulgogi Brand ― Why?

Cho Dong-min

Chairman

Korea Franchise Association

A recent ad for bulgogi in the New York Times, featuring the popular Major League Baseball player

Choo Shin-soo, has made headlines. A U.S. media outlet sneered at the ad for the Korean native beef

dish by saying, “What was with the promotion of a national dish rather than a brand?” It added that

the ad was the equivalent of Justin Timberlake appearing in a British newspaper ad touting the taste

of hamburgers. Not Burger King or McDonald’s or even Wendy’s, but just hamburgers. Ad Week, a

leading U.S. advertising trade publication, criticized the ad as the weirdest advertisement of this year.

In spite of its good intentions, the ad ended up as an international embarrassment. It struck me that

recent efforts to promote Korea’s culinary culture overseas should be viewed in the same vein. Korean

food has recently been drawing unprecedented attention abroad. There also is great enthusiasm to

promote the excellence of Korean food. But there is something that is lacking in promoting it: a

systematic plan based on solid research and development of menu and manpower. Enthusiasm alone

cannot deliver the correct message and flavor. Hence the campaign looks vain.

According to a globalization index of national food, based on five factors of food, image, price,

service and restaurant, Korea (73.2) lags behind Japan (78.3), China (75.8) and Thailand (75.0), and

sits slightly ahead of Turkey (73.1) and Malaysia (72.4). Japanese food has long been recognized as

one of the globally popular cuisines as a result of concerted public and private efforts since the 1964

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Tokyo Olympics. Thai food is also widely beloved as one of the world’s top four ethnic cuisines,

following its 2003 campaign “Kitchen of the World.”

In contrast, Korea still has a long way to go. Above all, it is necessary to create emblematic brands

that can be readily associated with Korean food as well as nurture enterprises that specialize in such

brands. Among the most urgent tasks are fostering specialized manpower, formulating standardized

recipes and raising funds to support initial investments and stable operation of restaurants. These

tasks cannot be undertaken by overseas Koreans and immigrants who operate restaurants to make a

living.

An increase in the number of overseas Korean restaurant franchises will boost exports of domestically

produced food ingredients. A few restaurant enterprises with their own Korean food brands have

recently made remarkable endeavors: “Bibigo” became the first Korean food brand to be introduced

in the Michelin Guide, and Korean home-grown chicken brands like “Kyochon Chicken” and

“Kkuldak” (Honey Chicken Ball) are sensationally popular in China and Southeast Asia.

It is encouraging that foreign media reports highlight health benefits of Korean cuisine and famous

Hollywood celebrities visiting Korean restaurants are captured by paparazzi from time to time. But a

favorable atmosphere and enthusiastic cheers alone do not ensure a good game or a successful

outcome. This is the reason we need to develop successful restaurant franchise brands in order to

promote Korean food as a globally beloved cuisine.

[ JoongAng Ilbo, May 27, 2014 ]

www.koreafocus.or.kr

Page 59: Korea Focus 2014 07

Is the Korean Church Different from ‘Salvation Sect’?

Kwon Dae-ik

Staff Reporter

The Hankook Ilbo

The Evangelical Baptist Church of Korea, which is linked to Yoo Byung-eun, the de facto owner of

the sunken ferry Sewol, faces public outrage. The church, dubbed the “Salvation Sect” and labeled

heretic by conservative Christian denominations, was founded in 1962 by the late pastor Kwon Sin-

chan, Yoo’s father-in-law. It teaches that after a person has been saved by faith, feeling guilty or

repentant constitutes a felony denying faith. Yoo even asserted in his book, “The Shepherd of Soul,”

that neither the Old nor the New Testament says a murderer goes to Hell.

The theological viewpoint of the Salvation Sect is based on the doctrine of predestination propounded

by John Calvin, a French reformed theologian. The sect skillfully distorts the Calvinist teaching that

before the creation of the world, God saves some people, foreordaining them to eternal life, thus it is

impossible for those who are redeemed to lose their salvation.

However, they have ignored an important point. Calvinists argued that “we cannot see whom God

has chosen, but we can guess who has received salvation through ‘internal evidence’ to believe in the

Bible and become enlightened, and ‘external evidence’ to be in lives of holiness and godliness.” In

other words, even though it is impossible for those who are redeemed to lose their salvation, it would

be a mere “illusion” if one does not walk in holiness. Indeed, the Calvinists enthusiastically pursued

purity and holiness in their lives, so they are called “puritans.”

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The “salvation” theory which has served as a platform of Protestantism is under fire in the Korean

Protestant community. The late pastor Oak Han-heum of the Sarang Community Church, who was

widely respected across denominations, repented at a service celebrating the 100th anniversary of the

Korean Protestant church in 2007, by saying, “In our blind pursuit of expansionism, the Korean

church has preached that if you believe in God you can go to Heaven.” He preached that only faith

with action can guarantee entry into Heaven. It was a scathing self-reflection that faith in eternal

salvation has become a modern-day indulgence. However, Oak later confessed that he had been

reproached by several pastors for the remarks.

Unfortunately, the Korean church obviously has more pastors like Pastor Oak’s critics than those like

him. Hence it is not free from blame for providing fodder for heretics like the Salvation Sect to

flourish like deadly mushrooms. Actually, pastors who have committed various crimes, including

embezzlement, sexual harassment and plagiarism, are now active in the church after “self-

repentance.” How do they differ basically from followers of the Salvation Sect, other than

“repentance” performed in an easy way?

As it has become commonplace for the orthodox church to offer indulgences by turning a blind eye

to criminal acts under the pretext of God’s grace, some criticize that “the Korean church has turned

the Gospel into a license to kill.” The increasing number of people who believe in Jesus but do not

go to church should probably have a lot to do with impudence of some pastors.

Religious organizations in Korea enjoy tax benefits in real estate transactions. Korea is the only

OECD member country where employees of religious organizations are exempt from income tax.

These privileges nurture corruption and heresies. It is very simple to distinguish orthodox faith from

heresy. A theologian has said that attachment to things that cannot be taken into the afterlife, such as

money, fame and appearance, is heresy. Those who gather under the name of religion should think

about what this means.

[ May 26, 2014 ]

www.koreafocus.or.kr

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Building a Global Korean Community

Jwa Sung-hee

Visiting Professor of Economics

KDI School of Public Policy and Management

For the past 5,000 years our nation has lived on the Korean peninsula, writing a history of struggles

against aggression from powerful neighbors. As China is rising again, we are now striving again for

a strategy of survival as if walking a tightrope. However, history will likely repeat itself as long as

we are confined to this peninsula. Moreover, the situation will probably worsen given that, amid

populist politics disparaging economic excellence in favor of economic equality, the nation is losing

its economic vitality that once grabbed the world’s attention.

Above all, it seems to be the inevitable course of history that the Pax Americana is nearing its end.

Throughout human history, no civilization or economy has maintained its No. 1 position forever.

Great Britain had spearheaded the Industrial Revolution by replicating the success know-how of

Spain and the Netherlands. Likewise, the United States became the undisputed sole superpower in

the 20th century by replicating the success of the Great Britain. As such, the road to superpower status

opened with free riding on the success of predecessors.

Now, the U.S. economy finds its superpower position threatened by free replication by any other

country. China was a third-class country for 150 years after its defeat in the Opium Wars. But it has

built a strong foothold in the global market by duplicating Korea’s success over the past 30 years.

Whether China will overtake the United States depends on how hard it will continue to pursue

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economic excellence, diligently learning from America’s success but raising its guard against the

failing populism of social democracy.

What about the future of Korea in the next 5,000 years? It would be difficult to envision a bright

future which ensures self-esteem, if the nation fails to go beyond its territorial boundaries of the

Korean peninsula and grows into one of the world’s strongest economies. A state cannot get out of its

territory, but its people can go beyond their border. The key is to push for national restructuring toward

a vision of “global Korean community.”

Think about the remarkable success stories written by Korean immigrants in the past century. There

is no reason why the Koreans, who are as brilliant as the Jews and capable of adapting to a new

environment wherever they are, will not be able to construct a diaspora for global management. If

more and more Korean immigrants occupy important positions in politics, economics, finance and

science in the world’s leading countries, they can influence global trends. Korea would then have an

advantage in the global competition for political and economic hegemony.

As a journey of a thousand miles must begin with a single step, I want to suggest the following steps

to start a “global Korean community” project.

First, I suggest the government create a department in charge of the Korean diaspora network to draw

up a long-term project. The method of promoting the project should be highly strategic in

consideration of international attention. Second, I suggest the government encourage overseas

emigration and grant double citizenship to all ethnic Koreans abroad. Korean immigrants abroad

should no longer be discriminated against in order to protect the vested interests of people at home.

Third, domestic educational institutions should open their doors wide and offer programs for second-

and third-generation overseas Koreans to become familiar with Korean culture. The Jeju Global

Education City may be expanded to serve as a contact point for overseas ethnic Koreans. Fourth, the

paradigm of economic management should be changed to economic excellence, not economic

equality, and join the ranks of the world’s major economies.

Looking forward to a bright future for our nation over the next 5,000 years, let us try to build a

worldwide community of Koreans beyond the geographical boundary of the peninsula.

[ Chosun Ilbo, May 21, 2014 ]

Page 63: Korea Focus 2014 07

www.koreafocus.or.kr

Page 64: Korea Focus 2014 07

- North Korea’s Economic Policies and Unification

- Germany’s Competitiveness Rises despite Rapid Population Aging

Page 65: Korea Focus 2014 07

North Korea’s Economic Policies and Unification

Lee Yong-hwa

Senior Researcher

Hyundai Research Institute

Hong Soon-jick

Senior Research Fellow

Hyundai Research Institute

I. Debate on Unification

Envisioning the economic potential that a unified Korean peninsula would have on national, regional

and global levels, President Park Geun-hye has predicted a “unification bonanza.” Coupled with signs

of change in North Korea’s economic policy, Park’s prognostication has spurred debates on how to

improve inter-Korean relations in order to lay the foundation for unification.

Since the start of Kim Jong-un’s reign, North Korea has ratcheted up economic reform and openness

to improve its standard of living and build a prosperous nation. First Secretary Kim Jong-un declared

in his first public address on April 15, 2012 that he would make the livelihood of ordinary citizens

the foremost priority so they would not have to further tighten their belts.

Accordingly, the responsibility of the Cabinet has been emphasized and new reforms have been

adopted, giving farms and enterprises wider autonomy and fatter incentives. To promote foreign

investment, the North Korean government announced it would create 13 economic development

zones in November 2013, on the basis of the Economic Zone Development Act enforced six months

earlier.

Building a foundation for national unification is one of the four pillars of President Park’s

administration. At her New Year’s press conference Park defined unification as “a great opportunity

for our national economy to take off,” thus reshaping the economic vision for inter-Korean relations

and eventual reunification. A few months later, during her official visit to Germany, Park stressed the

need to assist economic recovery in North Korea and offer practical aid to North Korean people. A

“unification preparation committee” is expected to be launched soon to lay the groundwork for

reuniting the divided peninsula.

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This study examines how well the North’s economic policies will mesh with the South’s efforts and

their prospective impact on the unification process.

II. Characteristics of North Korean Economic Policies

1. Enlarged Authority of Economic Agents

Pyongyang has increased the power and responsibility of the Cabinet ministries in charge of economic

affairs in hopes that the country’s overall economic performance and the living standards of people

will improve. The ministries are a virtual “command center” to better the living standards of people,

which is Kim Jong-un’s first economic goal. In his address on April 6, 2012, the new supreme leader

emphasized the need for the Cabinet to control national finances and execute economic policies

steadfastly.

Kim Jong-un’s late father, Kim Jong-il, also called on the Cabinet to steer the economy but he

prioritized the military industry. Kim Jon-un reinstated economic reformist Pak Pong-ju as prime

minister. Pak had served as prime minister from 2003 to 2007 before being pushed out. Most of the

economic and technology bureaucrats who assisted Pak during the 2000s also were re-employed.

Pak’s reappointment was decided in the 2013 session of the Supreme People’s Assembly. Among the

new appointees were Ro Tu-chol and Kwak Pom-gi, who played central roles in formulating the

“Economic Improvement Measures” of July 1, 2002. Pak’s inspections of industrial sites have been

reported by the state media; during the past Kim Jong-il era, the prime minister’s activities had been

largely ignored.

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2. Introduction of Competitive Market System

The North Korean government partially injected market economy measures and competition in the

operation of industrial enterprises and collective farms in order to increase productivity.

An agricultural reform measure was announced on June 28, 2012, aiming at increasing the harvests

of collective (cooperative) farms. Production units were reorganized and given greater autonomy in

distribution of harvests. The size of production units was reduced to four to five members from the

previous 10 to 25 members, with harvests distributed according to the productivity of individual units.

The portion for autonomous disposal by cooperative farms was drastically increased under the new

measures announced on July 3, 2012. Those farms which produced surplus above their production

quota were allowed to share 30 percent of harvests; the rest went to the state.

On December 1, 2012, North Korea adopted more reforms for industrial enterprises. Factories and

other enterprises were given autonomy in deciding production, distribution and profit sharing. The

power of general managers was significantly increased, enabling new programs for production,

manpower and equipment acquisition to be introduced.

These reform measures also included an incentive system to reflect work hours and amounts of

contribution.

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3. Promotion of Foreign Investment

North Korea has recently rearranged its legal provisions with a view to promoting foreign investment

and expanding exports, with a special emphasis on the Economic Zone Development Act. A new

agency was formed to oversee foreign investment affairs and special economic zones.

Laws and regulations concerning the establishment and operation of SEZs have been newly

introduced or revised. As many as 14 statutes were newly enacted or amended to attract foreign

investment.

From the middle of the 1980s, when the downfall of the East European communist bloc began to

squeeze the North Korean economy, Pyongyang started establishing laws and systems to handle

foreign investments. But the North’s backward infrastructure and worsening external credibility

constrained the early efforts. Recent legislations and revisions of laws and systems have been aimed

at providing protection for the property of foreign-invested enterprises and freedom in transportation,

communication and customs clearance. They also have ensured the protection of intellectual

properties and personal safety of foreign investors within North Korea.

The lightning rod is the Economic Zone Development Act, which went into effect on May 29, 2013

to establish SEZs across the country. This is the first single law to have comprehensive provisions for

the designation of SEZs to accommodate foreign investment. It has provided the legal foundation for

not only the central government but local party and administration authorities to take initiatives for

the designation of special economic development areas with various incentives to attract foreign

investment.

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4. Overhaul of State Agencies for Introduction of Foreign Investment

The National Economic Development Commission and the Choson (Korean) Economic Development

Association were founded to promote foreign investment through SEZs.

1) Reorganization of the Existing Economic Development Agency

The National Economic Development Bureau, which was launched to execute the “10-year Strategic

Plan for National Economic Development” became the National Economic Development

Commission on October 16, 2013. This upgrading implied efforts to ensure a stronger implementation

of the 10-year strategic plan which expires in 2020. It was learned that all external economic projects

controlled by the Joint Investment Committee were transferred to this commission.

2) Launching of New Economic Development Organization

The Choson Economic Development Association was founded on October 17, 2013 to manage SEZs

in provinces and assist foreign enterprises. It is expected that the association will help attract foreign

investment by arranging international forums, exchanging information and offering consulting

services.

5. Expansion of Special Economic Zones

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On November 21, 2013, the Standing Committee of the Supreme People’s Assembly issued an edict

for establishment of 13 small-scale economic development zones, each tailored to special features in

their respective provinces. These zones are primarily aimed at earning foreign exchange, introducing

new technologies needed for regional development and raising living standards. Five are located on

the North Korea-China border, three along the west coast and five along the east coast. They are

mostly designed to specialize in agriculture, tourism and export processing in accordance with their

local circumstances.

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III. Assessment of North Korean Economic Policies

North Korea’s recent economic measures are focused on speeding up domestic reform and external

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openness.

1. Stronger Economic Management

The current emphasis on a Cabinet-controlled economy suggests a desire to maintain policy

consistency. Many economic technocrats have been appointed to key Cabinet posts in a move to have

the central government ministries function as the country’s “economic command center.” The state

finances, separately managed by the party, military and the administration previously, have been

aggregated into the Cabinet. This obviously exhibits separation of the economy from politics to lay

the cornerstone for shifting the national priority to the economy.

If the Cabinet-focused system continues, more production resources will be put into economic sectors,

which will help expedite economic recovery. North Korea’s continued efforts for economic

improvement will help reduce the economic gap between the two Koreas. Thus the “unification cost”

to be borne by South Korea will be reduced as the North Korean economy will need less investment

from the South when the two Koreas are reunified.

2. Market Economy Buildup

A market economy system is expanding in North Korea. Worker incentives and autonomy have

broadened to overcome the limitations of a centralized planned economy. If this expansion continues,

productivity and output will increase further, strengthening the overall economic viability. In the near

term, agriculture and light industry will recover faster and in the long term, the North’s industrial base

will be ready for takeoff.

Gradual systemic changes will prepare the North for full conversion to a market economy. This will

help relieve the “unification cost” that the South will have to bear in merging the two Koreas’

economic systems if reunification occurs.

3. Attracting Foreign Investment

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With the enactment of the Economic Zone Development Act and designation of the SEZs tailored to

the particular features of local areas, North Korea has made active and realistic efforts to attract

foreign investment in recent years.

These unprecedented moves guaranteeing unfettered transportation, communication and customs

clearance ensures consistent policies in the SEZs. The launching of new central coordination bodies

for economic development proves that bureaucratic rigidity is waning. The shift from large-scale

SEZs for integrated industrial development to smaller locally-adjusted special zones increases

practicality of development policies.

Expansion of external openness will contribute to the entry of North Korea into the global economic

community and further to the creation of the infrastructure for reunification of the two Koreas. As the

North brings its legal system up to global standards, conditions will become more favorable for

smoother introduction of foreign investment and for its integration into the world economy. Smaller

SEZs across the country will help boost regional production capabilities while improvement of

industrial infrastructure through foreign investment will be instrumental in establishing the

underpinning for reunification.

IV. Implications

First, a steady expansion of economic cooperation between the two Koreas is necessary if South

Korea wishes for stable and wider economic opening up in the North driven by foreign investment.

The South should act more aggressively to support moves in the North toward external-oriented

changes. Strategic, step-by-step approaches are needed to expand inter-Korean economic cooperation

so that the manpower and natural resources in the North can effectively be combined with the capital

and technology of the South during the reunification process.

Secondly, South Korean initiatives are needed to assist North Korea’s efforts to attract foreign

investment for infrastructure construction. South Korea’s earnest approaches will help arrest

Pyongyang’s dependence on China. Meanwhile, economic cooperation with the North will give the

South a new growth engine and also curtail unification costs.

Thirdly, humanitarian assistance to the North needs to be expanded and inter-Korean social and

cultural exchanges increased in order to restore mutual trust and common identity. Food and other

necessities for infants and pregnant women in the North can engender amicable feelings among North

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Koreans toward the South and will improve conditions for eventual reunification.

In addition to promoting joint cultural and academic programs, the two Koreas may consider forming

a single team for the 2018 Winter Olympics to be hosted by South Korea in Pyeongchang. More

immediately, the two Koreas could march together in the opening and closing ceremonies of the 2014

Incheon Asian Games. Such sports events will reawaken the sense of oneness on both halves of the

peninsula.

Lastly, diverse avenues for national integration should be explored to reduce conflicts between the

two sides. In order to avert inter-Korean conflict and animosity, the projected “unification preparation

committee” and other governmental and non-governmental organizations may study the experiences

of Germany along its path to unity.

Page 75: Korea Focus 2014 07

[ VIP Report 14-18, No. 569, May 19, 2014,

Hyundai Research Institute ]

www.koreafocus.or.kr

Page 76: Korea Focus 2014 07

Germany’s Competitiveness Rises despite Rapid Population Aging

Cho Ho-jung

Senior Researcher

Hyundai Research Institute

I. Growth Formula defies Population Trend

Three advanced nations now have a super-aged population: Japan, Germany and Italy. Japan is the

“oldest” country with 25.1 percent of its population at age 65 or older as of 2013, and the comparable

proportion in both Germany and Italy is 21.1 percent. The levels are well above the OECD average

of 15.9 percent.

The three countries reached “aging population” status between the mid-1980s and mid-1990s, and in

the mid to late 2000s, moved into the “super-aged” category, which is when people aged 65 or older

exceed 20 percent of a nation’s population.

During the demographic transition, Germany’s economic performance has outstripped that of Japan

and Italy, where the aging population effects on consumption and fiscal budgets have been more

pronounced. Since becoming a super-aged nation, Germany’s average economic growth rate has been

2.1 percent versus Japan’s 1.1 percent and Italy’s 1.7 percent. It also has maintained high growth

potential at 1.9 percent on the average (except for 2009), compared to Japan’s 1.4 percent and Italy’s

-0.6 percent.

According to the International Institute for Development Management (IMD), Germany’s national

competitiveness ranking rose from 16th place in 1997 to ninth in 2013, while those of Japan and Italy

fell from 17th to 24th and from 39th to 44th, respectively, over the cited period. Rapid population

aging exacerbated Japan’s prolonged recession and Italy’s fiscal crisis.

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Germany’s fiscal deficit has declined and the growth rate of its national debt has slowed since the

country became a super-aged society. Germany’s fiscal deficit against its GDP stood at -2.9 percent

when it became an aged nation but narrowed to -1.3 percent after its population became super-aged.

Meanwhile, those of Japan and Italy widened from -6.0 percent to -7.1 percent and from -2.9 percent

to -3.7 percent, respectively.

Germany’s fiscal debt to GDP also remained at relatively low levels of between 57.8 percent and 77.1

percent on the average, while those of Japan and Italy soared from 142 percent to 212.2 percent and

from 107.3 percent to 120.3 percent, respectively.

Germany has also maintained high international competitiveness, with its foreign trade surpassing $2

trillion in 2006, aided by its automobiles, chemicals and general machinery that are the world’s

strongest. Germany’s foreign trade surged from $98.7 billion in 1995 to $2.6 trillion in 2013, marking

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an annual average growth rate of 5.6 percent, while the comparable rates of Japan and Italy remained

at 3.9 percent and 4.6 percent, respectively, during the same period. Particularly, these countries’

growth tempo has fallen since the mid-2000s, widening their gap with Germany.

Germany’s economy grew at an annual average of 1.7 percent between 1995 and 2013 (with the

exception of 2009), thanks to not only domestic demand but also net exports, with the latter

accounting for 0.7 percentage points of economic growth, higher than the comparable figures of Japan

and Italy.

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II. The Key to Germany’s High Competitiveness

This study divided Germany’s measures to cope with population aging into labor and capital,

productivity, and government, and compared them with those of Japan and Italy at each stage of

population aging.

1. Labor Input

1) Expansion of Employment

Germany expanded the entry of the elderly and female workforce into the labor market through

employment reform and adjustment of pension payments. It enhanced hiring flexibility by increasing

part-time jobs and raising the pension eligibility age to extend the working lives of older people.

The number of part-time jobs in Germany steadily increased from 7.78 million in 2003 to 10.39

million in 2012. To keep elderly workers in the labor force, the pension eligibility age was raised to

65 from 63 in 2007, and since then one month has been added annually. This process will ultimately

lift the pensionable age to 66 by 2023 and to 67 by 2029.

As a result, the employment rates of older people and women in Germany have continued to rise,

contributing to its workforce utilization. Germany’s employment rate rose 6.8 percentage points, from

64.9 percent during the aged society stage to 71.7 percent during the current super-aged stage. That

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is more than double the increase of Italy’s 3.1 percentage points and Japan’s 1.7 percentage points.

Particularly, the increase in Germany’s employment rate is attributable to the “Hartz reforms,” which

sharply enhanced hiring flexibility. Consequently, the employment rates of older and female workers

rose 19.5 percentage points and 11.2 percentage points, respectively.

2) Population Inflow

In order to cope with the decrease of economically active population resulting from its falling

birthrate, Germany has encouraged the inflow of immigrants. The share of immigrants stood at 13.1

percent of total population in Germany in 2010, more than twice higher than 7.4 percent in Italy and

1.7 percent in Japan.

Germany has implemented the “EU guidelines for facilitating the migration of highly-educated

persons” since August 2012, and is maximizing efforts to attract foreign professional workforce

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through its “Qualified Professionals Initiative.”

2. Capital Input

Despite its aging population, Germany has maintained high levels of investment capacity among

households and businesses, and also experienced an increasing inflow of foreign investment capital.

1) Improvement of Investment Capacity

Germany has secured stable investment capacity by maintaining a high level of household savings as

a major source of investment capital as well as increasing corporate capital. Net savings rate of

German households has hovered around 9 to 10 percent since the country became a super-aged nation.

In contrast, the comparable ratios of Japan and Italy have plunged since 2000 to hit 0.8 percent and

4.3 percent, respectively, in 2013.

The ratio of owners’ equity at German businesses also jumped 8.5 percentage points, from 19.0

percent in 2000 to 27.5 percent in 2012, helping them to maintain stable investment capacity in the

long term.

2) Expanded Inflow of Foreign Capital

Germany is the largest market in Europe and its manufacturing and R&D competitiveness also has

consistently improved, helping to attract foreign direct investment into the country.

The average annual foreign direct investment that flowed into Germany increased by 6.2 percent,

from $27.04 billion to $28.72 billion, as it transitioned from aged to super aged nation status. In

contrast, those of Italy and Japan fell 5.7 percent and 52.9 percent, from $11.23 billion to $10.58

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billion and from $15.5 billion to $7.3 billion, respectively, during their transitions. From 2000 to

2012, the accumulated FDI amounted to $627.4 billion in Germany, more than three times higher

than Italy’s $228.5 billion and Japan’s $173.8 billion.

3. Productivity

In order to prevent the fall of productivity resulting from population aging, Germany has expanded

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investment in R&D and manpower training while attaining systemic improvements, including the

improvement of its investment environment.

1) Enhancement of Technological Competitiveness

Germany increased its R&D investment at an annual average of 2.3 percent while it was an aged

nation, and further expanded it to 2.7 percent after becoming a super-aged nation. But the R&D

investment by Japan and Italy dropped from 2.5 percent to -0.1 percent and from 1.5 percent to -0.3

percent, respectively.

In 2003, Germany’s Federal Employment Agency stepped up support for on-site vocational training

through employment reforms. Accordingly, the country’s labor productivity (real GDP per working

hour in terms of dollar-based PPP) increased at an annual average of 2.1 percent while it was an aged

nation, higher than Japan’s 1.9 percent and Italy’s 1.1 percent, and it further increased by 0.4 percent

a year on the average after the country became super-aged.

2) Systemic Improvements

Germany lowered its corporate tax rate from 39 percent to 29 percent in 2007, and eased employers’

financial burden by lowering the unemployment insurance premium rate from 6.5 percent to 3.3

percent. It also improved its business infrastructure and innovative capacity as well as its systems

related with human resources and financial services.

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4. Government

1) Improvement of Welfare System

The German government has consistently pushed for employment and pension reforms since 2003,

creating a virtuous circle of enhanced welfare policy efficiency and fiscal soundness. Reform of

employment and pension systems curtailed undue welfare benefits and differentiated pensionable

ages, facilitating efficient implementation of welfare policies.

The German government’s welfare spending against GDP rose only 4.1 percentage points from 22.1

percent in 1980 to 26.2 percent in 2009, while those of Japan and Italy jumped 12.0 percentage points

and 10.4 percentage points, respectively, over the cited period. By sector, Germany’s welfare

spending on the aged people edged down 0.6 percentage points, from 9.7 percent of its GDP in 1980

to 9.1 percent in 2009, while those of Japan and Italy rose by 7.4 percentage points and 5.8 percentage

points, respectively. To effectively cope with its low birthrate and population aging, in particular,

Germany has increased welfare spending to support families and active labor market programs.

As a result, despite its rapid population aging, Germany’s tax burden ratio has remained at a stable

level of 30 percent since the 1980s, while the comparable burden of Italy soared 14.7 percentage

points from 29.7 percent in 1980 to 44.4 percent in 2011, and that of Japan also climbed 3.8

percentage points during the same period.

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2) Creation of New Demand

As the biggest advocate of the European Union’s integration, Germany has continued to expand its

export potential by pushing for a unified currency and increasing EU membership. Germany’s exports

to EU members rose 86 percent from 335.2 billion euros in 1999 to 623.4 billion euros in 2013, thanks

to the introduction of euro currency in 1999 and the expansion of the EU in the 2000s.

Germany’s exports to 17 eurozone countries jumped 70.8 percent from 235.7 billion euros in 1999 to

402.5 billion euros in 2013, and its shipments to non-eurozone countries also expanded 2.2 times

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from 99.6 billion euros to 220.9 billion euros during the same period.

In 2005, Bonn introduced a “silver economy,” regarding it as an opportunity to improve the quality

of living, facilitate economic growth and enhance competitiveness for Europe as a whole.

In this context, the silver economy is seen as a job creator and catalyst for corporate competitiveness

in providing innovative products and services for aged people. For example, manufacturing industries

can expand their R&D investment in sectors that can supplement older people’s convenience of living

and health, such as robots, fully automatic cars and health care, while service industries can focus

their R&D spending on areas that can maximize life convenience for the elderly by linking these

services to the information and communication technologies (ICT) industry.

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III. Policy Implications

Korea is aging at the most rapid pace in the world. It should benchmark and make the most of the

German experiences in maintaining national competitiveness in major sectors.

Germany has coped with population aging from both supply and demand sides to maintain its growth

potential. The German government expanded jobs and raised the efficiency of its welfare policies by

reforming employment and pension systems. At the same, it encouraged EU integration, regarding it

as a creator of demand, and introduced a “silver economy.”

Korea’s aged people accounted for 12.2 percent of total population in 2013, but it will become an

aged nation by 2018, when the proportion is expected to exceed 14 percent, and a super-aged nation

by 2026, when the proportion surpasses 20 percent. After 2040, Korea will become the world’s

second-oldest country.

In the face of rapid demographic transition, Korea will have to make the following policy efforts to

ensure necessary inputs.

Labor Input: In order to extend the job retention of the elderly and female workforce, the nation will

need to diversity employment patterns and streamline its policy on importing highly-skilled,

professional manpower. To help older people and women remain in the labor market longer than now,

the government should expand part-time jobs and enhance matching service with public sector jobs.

Capital Input: The government has to reinvigorate corporate investment to enhance the overall

economy’s investment capacity and improve the infrastructure for investment by domestic and

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foreign interests. If businesses with sufficient financial resources increase their investments, it will

lead to higher household income and savings, which will help boost investment capacity. In order to

induce steady investments by both local and foreign businesses, the government should continue to

sharpen competitiveness. Corporate taxes, infrastructure, human resources, R&D capacity and

financial services should be examined to lay the groundwork for these efforts.

Productivity: To cope with the fall of labor productivity due to population aging, the nation will need

to enhance the efficiency of technological development while diversifying vocational training for

aged and female workers. Although Korea’s R&D spending in comparison to its GDP is among the

highest in the world, the nation’s technological competitiveness remains at a low level. Accordingly,

the government will have to strengthen the technology transfer system and the cooperation between

the industry, academia and research community. Also, it has to diversify vocational training to

heighten the expertise of aged and female workers.

Secondly, Korea has to make efforts to expand the existing markets and create new ones in order to

boost demand.

Expansion of Existing Markets: As the EU’s integration has led to the expansion of markets for

Germany, Korea should also continue to develop overseas markets by making the most of bilateral

FTAs and regional FTAs, including the Trans-Pacific Partnership. As a small, open economy, the

nation will have to enlarge its economic territory by actively taking part in bilateral and regional free

trade agreements.

Creation of New Markets: Given that population aging is a global phenomenon, the nation will have

to create a “Korean silver economy” model, which makes the most of population aging as a new

growth opportunity. It should increase employment opportunities by creating aging-related jobs, and

secure domestic and overseas markets by expanding investment in aging-related products and

services.

Thirdly, to enhance the role of the government, there must be efforts to create social consensus on

improving welfare systems, boosting job creation and reducing tax burdens.

Improvement of Welfare Systems: The government should secure fiscal health by enhancing the

efficiency of its welfare policies. The size of welfare spending and priorities naturally will need to fit

with the rate of population aging. In particular, the government should try to prevent fiscal waste by

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continuously monitoring expenditures.

Creation of Social Consensus: It is also necessary to forge a social consensus on the proper levels of

job creation and tax burdens in accordance with population aging. It will be most desirable for Korea

to expand fiscal spending through sustainable economic growth. In view of the rapid growth of

demand for public welfare in the foreseeable future as well as the wide gap in tax burdens with other

aged societies among OECD members, it is time for the nation to research the proper levels of welfare

spending and gain public understanding through persuasion. Social agreement is also needed on the

appropriate retirement age because the longer the job retention period, the lighter the government’s

welfare burdens.

<Appendix 1> OECD Countries’ Population Aging and their Future Outlooks

<Appendix 2> Major Contents of Hartz Reforms in Germany

Germany Implemented labor market reforms called the “Hartz Reforms” in four stages between 2003

and 2005. The major contents of the reforms included enhancing labor market flexibility to reduce

unemployment, strengthening job matching service by the Federal Employment Agency, and cutting

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back unemployment benefits and welfare benefits to prevent fiscal problems.

< References >

Bank of Korea, “Analysis of the sectorial spending capacity in aged countries,” BOK Issue Note, February 2013

Hyundai Research Institute, “Germany’s secrets to attaining 73 percent employment rate,” Weekly Economic Review, Vol.

548, July 2013

________, “Core factors behind the German manufacturing industry’s competitiveness,” VIP Report, Vol. 543, October

2013

Institute for International Trade, “Korean exports’ competitiveness as seen by its global market-leading products,” 2013

Kim Mi-suk et al., “Social and economic problems of aged society and policy measures to cope with it,” Korea Institute

for Social and Health Affairs, 2003

Korea Institute for International Economic Policy, “Research on major countries’ growth strategy amid low birthrate and

population aging, and their policy implications,” Research Paper 10-25

[ Weekly Economic Review 14-20, May 16, 2014,

Hyundai Research Institute ]

www.koreafocus.or.kr

Page 91: Korea Focus 2014 07

- Kevin O’Rourke Dedicated to Translating Korean Literature

- Kim Jong-hoon Leads ‘Walk Together’ Supporting Blind Musicians’ Orchestra

Page 92: Korea Focus 2014 07

Kevin O’Rourke Dedicated to Translating Korean Literature

Kim Mun

Senior Reporter

The Seoul Shinmun

“A mountain monk coveted the moon; he drew water, a whole jar full; only when he reached his

temple did he discover, tilting the jar meant spilling the moon.” This is from “Song to the Moon in

the Well,” a Zen poem by Yi Kyu-bo, one of the greatest classical Korean poets from the Goryeo

Dynasty. Our meeting with Kevin O’Rourke, professor emeritus at Kyung Hee University, began with

Yi Kyu-bo’s poetry.

O’Rourke came to Korea in 1964 at the age of 24. A Catholic missionary for the Missionary Society

of St. Columban, he became deeply interested in Korean poetry. In 1982 he received a Ph.D. in Korean

literature from Yonsei University ― the first foreigner to earn such a degree.

His doctoral thesis was “The Influence of Korean Poetry from the 1920s” and his master’s, “The

1920s Short Stories and Naturalism.” As to why he studied for a doctorate in Korean literature, he

said, “I couldn’t teach at a university without one.” He added that a degree does not help much in the

classroom, though, because the subject of one’s thesis and what one teaches differ.

We met at his home in Hoegi-dong, Dongdaemun-gu, not far from his school. O’Rourke was

appointed to the board of directors of the Literature Translation Institute of Korea in 2012. He has

since been ever more committed to introducing Korean literature to the world. When I told him I had

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a difficult time getting his telephone number, he said, “I don’t know why they (Literature Translation

Institute of Korea) have to make a big fuss over it. What’s the big deal about telling a reporter my

number?” The day we met was the morning after a four-day weekend that included Children’s Day

and Buddha’s Birthday. He joked that I must have drunk a lot.

Professor O’Rourke stressed that Yi’s poems are some of the finest in Korean poetry in terms of

imagination, scale and outlook on life, which transcends worldly desires. They surpass the works of

Chinese poets Du Fu or Su Dongpo. If Yi were alive today, O’Rourke says, he would be a strong

candidate for the Nobel Prize. He added that most poetry works from the Goryeo period are

outstanding, and that masterful works by Jeong Ji-sang and Buddhist priest Hyesim have elevated the

standards of Korean poetry.

O’Rourke has translated over 1,000 pieces of sijo (traditional Korean three-line poem) from the

Joseon Dynasty, including “The Fisherman’s Calendar” by Yun Seon-do, and over 600 gasa (simple

form of verse), including those by Jeong Cheol. He published an English translation of a poetry

collection from the Silla Kingdom in 2006, and a translation of modern poems in 2004. He is planning

to publish another poetry anthology from the Joseon Dynasty this autumn. As for the significance of

his work, he said, “It is probably the first time Korean poetry from the Silla period to the present day

has been translated into English by a single person.”

O’Rourke has published a total of 25 books (poems and novels) so far, and has translated around

2,000 poems. His translations of modern Korean fiction include Choi In-hoon’s “The Square” and Yi

Mun-yol’s “Our Twisted Hero.” More recently he has published a book titled “My Korea: 40 Years

Without a Horsehair Hat,” about which he said with a laugh, “A horsehair hat used to be a symbol of

a classical scholar. In the 1960s, when I first came here, there were few foreigners in Korea, and it

wasn’t easy for a ‘big-nosed’ Westerner to study Korean literature. I guess I wanted to be

acknowledged as a ‘scholar’ in Korea.” When asked how he could have attempted such a massive

undertaking, he replied laughing again, “I have plenty of time on my hands since I don’t have a wife

or children to take care of.”

His answers were clear-cut and revealed a deep philosophy about Korean literature. He has also

translated 60 hanshi (Korean poems written in Chinese characters) by the wandering minstrel Kim

Satgat [Alias of the 19th–century poet Kim Byeong-yeon who wandered around wearing a bamboo

hat called satgat]. “It’s as if I can almost see Kim Satgat walking between the red and white pines

and rocks, and the very moment he lost himself in the wonder of the world,” he said. Kim Satgat was

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a playful genius. The fact that this Irish priest scholar delved deeply into the mind of the great poet

and rendered his poems in English is a remarkable feat.

I took a look at his business card and noted something odd. It read “O Rok (吳鹿), Professor Emeritus,

Kyung Hee University.” The name was given by Korean poet Cho Byung-hwa. “It means a deer (鹿)

from Wu (Chinese pronunciation of 吳),” he explained. “The Chinese character 吳 also means

barbarians, so ‘O Rok’ also refers to a deer of the barbarians. When I visited China and showed my

card, people seemed puzzled, so I had to explain the meaning. Since I’m from Ireland, which was

once ruled by the Vikings, I am a descendant of the Vikings, so you could say I’m a descendant of

the barbarians. The poet Cho Byung-hwa came up with that name with such a meaning in mind and

I willingly took it. I guess he thought of deer because it’s cute.” (laughs)

He recites “Portrait of a Trumpet Shell” by Cho Byung-hwa. “You may live / with the wisdom of the

world, / but I, in my own way, / have found the clothes that fit me.” He met poets Park Mok-wol and

Park Du-jin at a lecture in college, and goes a long way back with So Chong-ju (pen name Midang).

He recites one of Midang’s poems: “So hushed / the sky / an orchid wondering why opened its petals

wide.”

O’Rourke was particularly moved by Midang’s early works, which he said are comparable to

Baudelaire. He also discovered the renowned Irish poet William Butler Yeats in some of Midang’s

poems. He once asked Midang what foreign poems influenced his works, to which the poet replied,

“None whatsoever.” O’Rourke said, “Midang wrote some of the finest poetry, which are worthy of a

Nobel Prize. But his pro-Japanese tendencies during the colonial era and the political mistakes he

made during the Chun Doo-hwan regime are most unfortunate.”

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O’Rourke has fond memories of the time he spent with Midang in Ireland. “Midang, me and my

grandfather got together at a Chinese restaurant in Dublin. We were there for the publication of

Midang’s poetry anthology. My grandfather was 90 at that time, and Midang, 80. We talked in English

and Korean for three hours without an interpreter. Although my grandfather and Midang didn’t fully

understand each other, we talked for a long time. It’s still vivid in my memory,” he said.

Among the Irish writers who have received the Nobel Prize, there are Yeats and Samuel Beckett. I

asked which Korean poems or novels he thought were the most worthy candidates for the Nobel Prize.

He replied, “We shouldn’t put too much focus on the Nobel Prize, especially writers, although I do

think the Korean government and literary circles should provide support. In Ireland, there are around

10 poets and around five or six novelists who are in the spotlight, but no one anticipates a prize.”

As for Korean poetry today, he commented that they tend toward the abstruse rather than offer insight

into the true nature of things or provide illumination. I asked him what a poem is. “A poem is a

mélange of emotions and sensibilities that lie deep inside your heart,” he said. “It is an expression of

such in words. But you don’t need many words. Korea is a country of words, but when it comes to

poems, the fewer the words, the better. Ultimately, a poem is a symbol. There are many great Zen

poems in Korea. If you go back and read a poem that you read 10 years ago, it will come across as

fresh and different. I think we should teach and learn poetry based on morals.”

O’Rourke pointed out that Confucianism has had an enormous influence on Korean literature, which

could have led to its decline, but that Seo Geo-jeong, Kim Si-seup and Great Master Seosan offset

some of that influence. I asked him about Hwang Jin-i. He replied, “She composed around 12 poems,

mostly about love. Love may be important in the real world, but it’s not everything in literary works.

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I think Seo Geo-jeong and Kim Si-seup’s poems are ahead of hers.” But he soon added that

comparisons are meaningless and that great poems are great in themselves. He personally thinks “The

Fisherman’s Calendar” by Yun Seon-do is one of the finest achievements in sijo and is outstanding as

a sijo cycle.

He continued with some harsh comments about the current literary climate in Korea. “Literature has

become more of a business in Korea than about literary value. We should share and make known

great literary works. But you can’t even buy Kim Satgat’s poems in Yeongwol County or Andong.

You can see many poems on the walls of subway platforms, but not one of them is sijo or hanshi.

High officials don’t give poetry collections as gifts, and Korean people in general do not give Korean

poetry books as gifts to foreigners. To promote Korean culture, we need to start with such small

things.”

O’Rourke said that in the past, when a literature collection was published, he was eager to embark on

an English translation, but not anymore. The process has become more complicated, with an agent in

the middle and the approval of the publisher being required. He said that in order to be able to produce

a quality translation, you need to be moved to tears by just reading the writer’s draft, but that there

are no publishers willing to give the go-ahead in advance. Also, there are no poets that measure up to

great masters in the past like Midang or Park Mok-wol.

I asked him about the future of Korean literature. “Until just 20 years ago, Confucian ideology was a

dominant force in Korean literature. But things have changed with the rise of young writers like Kim

Jung-hyuk. His short story ‘The Glass Shield’ mocks Confucianism. It is full of wit. Compared to the

more serious style of Korean writers in the past, works by writers today are more light-hearted, and

so rendering them in English has become easier. It is relatively easier when compared to works by

Kim Tong-ni or Yom Sang-seop. In a way, the style has become closer to English. You need to abide

by many rules if you want to write in English, whereas in Korean the writers define their own rules

as they wish. I believe the future of Korean literature is very bright.”

It’s been 50 years since Father Kevin O’Rourke set foot in Korea. He is approaching 80, but his

passion for Korean literature and ardent desire to make Korean literature known to more people

around the world are stronger than ever.

[ May 14, 2014 ]

www.koreafocus.or.kr

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Kim Jong-hoon Leads ‘Walk Together’ Supporting Blind Musicians’

Orchestra

Kim Ji-yeong

Staff Reporter

Monthly Shin Dong-A

The Heart Blind Chamber Orchestra (Heart Orchestra, hereafter) gave a concert at the Olympus Hall

in Samseong-dong, southern Seoul, on April 23. Even though the majority of the musicians were

visually impaired, and the conductor was absent, the performance was impeccable. It deeply moved

the audience as the musicians on a dimly-lit stage created sublime harmony through their united

hearts. After the concert, the audience was unanimous in saying that they had a “healing” experience

because the music consoled their wounded souls.

The Heart Orchestra, founded in 2007, received the grand prix at the Fringe Festival held in parallel

with the 2008 Tongyeong International Music Festival. The orchestra also performed at the Carnegie

Hall in New York City, drawing international attention. However, ensuing financial difficulties

crippled the orchestra, pushing it to the brink of dissolution. At that critical moment, Walk Together,

a social welfare foundation, extended a helping hand.

Established in March 2010, the philanthropic organization is funded by donations from employees of

HanmiGlobal Co., Ltd., a construction management services provider. In the autumn of that year,

Walk Together formed altruistic ties with the Heart Orchestra by inviting the group for a corporate

concert.

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Kim Jong-hoon, chairman of both HanmiGlobal and Walk Together, says, “We have been supporting

the orchestra by providing it with a space for rehearsals and funds to purchase musical instruments,

and helping them lay the groundwork to become an independent social enterprise. We work to ensure

that the highly talented musicians can concentrate on music instead of having to work as a massage

therapist for a living.” The orchestra was registered last year as the first social cooperative under the

Ministry of Culture, Sports and Tourism.

Walk together is jointly funded by HanmiGlobal and its employees. Employees donate 1 percent of

their salary, and the company matches their contribution. When Kim founded the construction

consulting and management firm in 1996, he said that all employees would have to donate 1 percent

of their salary to charitable causes and that regular community activities would be a mandatory

element of their corporate life. In the mid-2000s, employee donations were formalized in the work

contracts.

“At first there were some staff who opposed this policy, but they soon changed their minds after

spending some time at facilities for severely disabled persons,” Kim said. “Through these activities,

our employees feel grateful even for their physical capacity to speak and move freely. Such rewarding

experiences create healing effects on their own minds, and they feel proud to be a part of our

organization.”

When he was younger, Kim said, he wasn’t aware of the beauty of helping and sharing with others.

It was in his late 30s when he was working as an employee at Samsung C&T that he found the need

for charitable activities and the ensuing psychological rewards. When Samsung was building Seoul

National University’s Hoam Faculty House, he helped the elderly living in deprived hilly areas near

the construction site. HanmiGlobal is the first construction management services provider in Korea.

It has participated in high-profile projects such as Tower Palace and World Cup Stadium, and also

operates overseas offices.

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Every month, all HanmiGlobal’s employees donate their time to build, renovate and repair homes for

the disabled. Nationwide more than 50 welfare facilities benefit from these efforts. Walk together has

spawned several social enterprises as its subsidiaries, and it plans to apply both locally and globally

HanmiGlobal’s experience in social contribution programs. As part of these efforts, Walk Together

opened an eponymous architectural engineering firm last year, and plans to launch a social enterprise

for jobless disabled persons. It has been providing costly cutting-edge assistance devices for the

disabled, and is preparing to build an academy to foster leadership potential among people with

disabilities.

“The ultimate goal of welfare programs for the disabled lies in job creation. The disabled are invited

to gain independence and engage in social participation rather than be treated as underprivileged

members of society,” says Kim. When asked to define the meaning of sharing, he says that he believes

it is a human duty and a corporate mission. “I believe that companies can change the world into a

more beautiful place. If companies engage in sharing activities with a right spirit and genuine good

will, they can illuminate the dark side of society and contribute to fostering a culture of peaceful co-

existence.”

Kim has been saying he will resign at 65 and his post-retirement life will be dedicated to promoting

social and corporate contribution to charitable causes. In contrast to the usual practices of local

corporate founders passing down their companies to their children, he has already selected an heir to

the top management from among the firm’s insiders. However, even though he turns 65 this year, his

mandate has been extended for the next few years as the company currently needs him to stand on a

better footing for further development.

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Kim has been donating royalties from his book, titled “We Go to Work in Heaven,” to the charities,

as well as any financial gains accruing from his activities outside the company. As a contemporary

epitome of the virtue of noblesse oblige, he says, “Based on the organizational platform of Walk

Together, I would like to expand my welfare agenda into a higher level and actively engage in efforts

to address our nation’s low birthrate and prepare for the reunification of the two Koreas.”

[ No. 657, June 2014 ]

www.koreafocus.or.kr

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- Still a Factory Society, Korea should Shed Standardization and Collectivism

- Exchanges between 18th-century Korean and Chinese Intellectuals

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Still a Factory Society, Korea should Shed Standardization and

Collectivism

Choe Hyeon-mi

Staff Reporter

The Munhwa Ilbo

“Reductive Modernity”

By Kim Deok-yeong, Gil Publishing Co., 384 pages, 28,000 won

There is a longing for a critical examination of today’s reality. It is manifested in the call for soul

searching following the Sewol ferry sinking as well as in the widespread acclaim for the book “Capital

in the Twenty-First Century,” which claims that we are returning to patrimonial capitalism.

Kim Deok-yeong, a sociology professor at the University of Kassel, suggests that “incomplete

modernity” is the biggest issue and deficiency in Korean society. Twenty years ago discussions on

not just “modernity” but “post-modernity” began. Now we are in heated debate on the radicalism of

contemporary capitalism and neo-liberalism, but Kim claims that we have barely laid the foundation

for modernity.

In the foreword, the author explains how a void in academia led to his book. “When I concentrated

on theoretical studies, I was expecting someone else to provide excellent research on the

modernization and modernity of Korea. “However, in the Korean sociology academia it has become

difficult to find discussions or research with long-term insight that encompasses various fields in life

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that are universally historic from the viewpoints of integrated science.”

The author’s analysis is encapsulated in the book’s title. He contends that Korea has “economy-

reductive modernity” in which modernization is equated with economic growth. He incorporates

sociologist Marx Weber’s “concept of universal history” and Emile Durkheim’s “moral individual”

to support his view.

Weber’s concept is derived from examinations of many institutions, including the state, civil society,

law, city, market, religion, arts, science, and Eros. In contrast, Korean modernization focuses solely

on the economy, committing a cognitive fallacy that economic modernity will be followed by

modernity in non-economic areas as well, Kim says. Even this unilateral focus disregards various

economic aspects, such as a rational market, financial system, work ethics, corporate culture, and

labor conditions.

Durkheim argued that due to the modern division of labor, the mechanical solidarity based on the

“homogeneity of individuals” shifted to an organic solidarity based on the “disparity of individuals,”

and simultaneously, values and norms became individualistic. Durkheim’s individualism is moral. It

stresses dignity and autonomy, consideration of others, and responsibility towards one’s community.

But in Korean society, where “growth of the nation and conglomerates” equals economic growth and

modernization, the individual is not entitled to enjoy rising wealth. Instead, he is merely considered

a tool to that end. Once an X amount of GDP is achieved, workers are mobilized once again for an

X+1 amount.

This process has spilled over from the workplace to produce Korea’s factory society, Kim asserts.

That is, the theories and methods of manufacturing are applied to aspects and realms of life. Thus,

productivity, efficiency, standardization and uniformity are sought. Individuality, diversity and

pluralism ― significant indicators of modernity ― are either repressed or obliterated in this wrongful

application of assembly-line thinking, Kim argues.

The book traces key policies of successive governments from the Park Chung-hee regime to the

current administration, and criticizes a wide array of institutions. The author claims the seeds of the

nation’s factory society were sown by the Saemaul [New Community] Movement in the 1970s, which

rapidly modernized the rural communities. Today, the standardization that underpinned the rural

village campaign can be seen in a host of institutions and workplaces, i.e. apartments (housing

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factory), universities (degree factory), churches (faith factory), plastic surgery (beauty factory), and

K-pop and idol groups (performing arts factory).

Kim says it is time for a new paradigm in which moral individualism replaces collectivism and Korean

society becomes a “society of individuals” rather than “individuals of society.” This will translate into

a cultural spirit of consideration that stresses the dignity of the individual in everyday life, a

philanthropic spirit towards the underprivileged class, and the realization of internal social justice for

unbiased relations.

[ May 16, 2014 ]

www.koreafocus.or.kr

Page 105: Korea Focus 2014 07

Exchanges between 18th-century Korean and Chinese Intellectuals

Lee Han-Su

Staff Reporter

The Chosun Ilbo

“Republic of Letters of 18th-century Korean and Chinese Literati”

By Jung Min, Munhakdongne [Literary Community] Publishing Group, 720 pages, 38,000 won

Professor Jung Min of Hanyang University was a visiting scholar at the Harvard-Yenching Institute

in the United States for one year beginning in July 2012. At the Harvard-Yenching Library, a

repository of ancient East Asian books, he came across the name of a Japanese scholar: Fujitsuka

Chikashi (1879-1948), professor at Keijo Imperial University (today’s Seoul National University)

and a researcher of Kim Jeong-hui (pen name Chusa, 1786-1856).

Fujitsuka gratuitously returned to Korea Kim Jeong-hui’s painting “Sehando” (A Winter Scene) in

his collection. When he went back to Japan upon his retirement from Keijo Imperial University in

1940, his collection of books and other materials was so vast that they took up several freight cars of

a train. Fujitsuka accumulated just about everything he could about exchanges between Korean and

Chinese literati. It was by chance that Professor Jung stumbled across one of the old books from his

collection at the Harvard-Yenching Library.

One book led to another. Books related to Korean and Chinese literati belonged, without exception,

to Fujitsuka’s collection. The majority came from the collection that his son had sold in financial

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hardship after Japan’s defeat in World War II. Fujitsuka left countless memos in those books.

Professor Jung confesses, “Rummaging through his collection made me feel like Son Goku inside

Buddha’s palm. Fujitsuka clearly indicates which book to refer to for additional information on which

subject. Tracking his memos made me feel mysterious at times, as though there were some kind of

connection between us.”

Jung restored the images of exchange between Korean and Chinese literati in the 18th century through

Fujitsuka’s collection and related materials. The exchange was first initiated by Hong Dae-yong

(1731-1783), a Joseon scholar. He met and befriended Chinese literati Yang Cheng, Lu Fei and Pan

Tingjun in Beijing, and left records of these encounters. Other scholars, including Yu Geum, Yi Deok-

mu, Bak Je-ga, Yu Deuk-gong and Bak Ji-won, followed his path as members of diplomatic missions,

leading to livelier exchanges among the literati. Bak Je-ga gained a reputation in literary circles for

his excellent poems and calligraphy. Forged writings claiming to be his were displayed at bookshops

of Liulichang Street in Beijing.

According to the Hojeo jip, in the collection of Fujitsuka, compiled by Bak Je-ga’s son, Bak had

exchanges with 110 of China’s best literati, including Ji Yun, Weng Fanggang, Yuan Ruan and Luo

Ping. Such exchanges continued in the 19th century through Kim Jeong-hui, laying the foundation

for the grand “Republic of Letters.”

The term “Republic of Letters” from 18th century Europe refers to the academic community where

European humanities scholars would communicate with one another in Latin. This imaginary republic

was formed simultaneously in East Asia as well, by writing in Chinese. The national policy of Joseon,

which was formerly set on “northern expedition” against Qing China to drive out the “barbarians in

the north,” was amended to “northern learning” through the exchange of intellectuals.

The intellectual exchange of contemporaries resulted in a world where communication was made

with words and writings, rather than guns and swords. Hence, the relations between Korea, China,

the United States and Japan unfolded like an epic drama, starting with exchanges between Korean

and Chinese literati of the 18th century and compiled through the collection of materials by a Japanese

scholar in the early 20th century, to be discovered in a U.S. library and restored by a Korean scholar

in the 21st century.

When Professor Jung Min gave a lecture at Harvard University on the “Fujitsuka Collection,” the

Chinese librarian in charge commented that a great scholar had arrived (“da xue zhe lai le”). The

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passage in this book providing detailed historical evidence even on the materials’ plagiarism and

authenticity makes one believe that the author’s research is headed towards a path of its own.

[ May 16, 2014 ]

www.koreafocus.or.kr

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- Robert Fouser: “I love the bright sunshine flooding the courtyard of my hanok house.”

- Yun Mi-wol: “I wanted to show people the elegant food that Koreans put on the dinner table.”

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Robert Fouser: “I love the bright sunshine flooding the courtyard of

my hanok house.”

Choe Hong-ryeol

Staff Reporter

The Chosun Ilbo

Once you step into the alley hidden behind the main road next to Gyeongbok Palace, you will

encounter a scene that is so far removed from its surroundings that it is hard to believe you are in the

heart of the city. Exploring the windy alleyways lined with beautiful hanok (traditional Korean

houses), you will feel like you are transported back in time. Dotted in between the houses are artist

workshops, small restaurants, cafes and art galleries.

This area of Seoul wedged between Mt. Inwang and Gyeongbok Palace is called Seochon (meaning

“Western Village”). Unlike neighboring Bukchon (“Northern Village”), which has a dense

concentration of around 1,200 hanok, Seochon is a mix of modern buildings and around 500 to 600

urban-style hanok that were built after the 1930s. The administrative area encompasses Chebu-dong,

Cheongun-dong, Hyoja-dong, Tongui-dong and Ogin-dong in Jongno-gu.

Robert Fouser, 53, a native of Michigan and a professor in the Department of Korean Language

Education at Seoul National University, lives in a hanok in one of these narrow alleyways. Dressed

simply and with a genial smile, he looks like just another neighborhood resident. He exchanges hellos

with the owners of the local cleaner’s, rice store, mom-and-pop store and snack bar. The residents

call him “Professor Pa.”

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When we entered a small restaurant selling mung-bean pancake, the owner welcomed us warmly and

served up makgeolli (unrefined rice wine). She said, “When Professor Pa says ‘hello’ and ‘thank you’

in Korean, he pronounces each letter clearly like an elementary school student. It sounds so friendly.”

Professor Pa’s commute is the same as the route of the Seochon Hanok Village walking tour, which

he sometimes guides. “This month, we looked around the house of the genius writer Yi Sang, poet

Noh Cheon-myeong’s house, the house of Eastern-style painter Yi Sang-beom that still retains the

original form and style of urban hanok, and walked around Suseong-dong Valley and art galleries in

Tongui-dong,” he said.

Fouser’s love for hanok, which most Koreans today would find uncomfortable to live in, led him to

settle in Seochon. He completely renovated an old and dilapidated hanok in Chebu-dong, and moved

in early last year. It is a small house with a total floor space of 40 square meters and land area of 70

square meters. “I love the bright sunshine flooding the courtyard and the view of Mt. Inwang from

my small window,” he said proudly.

Being a linguist, Fouser named his newly renovated house “Eorakdang,” which means “a house filled

with the joy of words.” He explained, “I thought of a name that conveys my wish to truly feel the joy

of learning and using words, and to achieve genuine communication.”

All the neighbors gathered for the topping-out ceremony in October 2012. For the ritual to make

offerings to spirits, a pig’s head was placed on the table, and Professor Pa celebrated with his

neighbors with rice cakes and rice wine. He also wrote an “invocation” to put on the main beam.

Traditionally the writing on a hanok’s main beam tells the construction history of the house, the names

of the builders and well-wishes for the home and its occupants. But he wrote about his deep

connections to Korea, his academic background and work experience, and ended with words of

gratitude to his parents.

♦ ‘Uncomfortable but Feeling Refreshed’

Fouser discovered the charm of hanok 26 years ago. It was autumn 1988, and he had just begun a

one-year English teaching job at Korea University. The young man rented a room in a small hanok in

Hyehwa-dong, Jongno-gu. It was a house where briquettes were used to heat the floors and one toilet

in the yard was shared by all. It was not easy adjusting at first. The briquettes would break easily, and

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each time he had to go to a nearby store and buy embers to relight the coal bricks. Since there was no

bathroom, he had to heat water and bathe in the kitchen. He was not yet ready to brave the

awkwardness of a public bath.

But he soon grew accustomed to the new and unfamiliar surroundings, and that is when he discovered

the inner beauty of hanok. When he woke up in the morning, the first warm rays of sunlight would

softly light up the whole room and he felt refreshed. He loved the gentle breeze in the yard carrying

the smell of trees. It was a new experience.

Q. When you came to Korea in 1988, did you purposely look for a hanok to stay because you

wanted to experience one?

A. No. I was looking for a place to stay in Seoul, and the hanok happened to be close to the school

and the price was reasonable. I didn’t really think much about it at first, but soon fell in love with the

charm and beauty of hanok. I went back to the house after a few years, but sadly it was gone. It was

torn down during the redevelopment boom in the early 1990s. It’s a shame that a house with a history

had to be destroyed like that.

Q. What sparked your interest in Korea and prompted you to learn the language?

A. Right after World War II, my father resided in Kyoto, Japan, for two years designing buildings for

U.S. military bases. He used to tell me stories about Japan when I was young, and so naturally I

became interested in East Asia. I took a language course in Japan in my junior year of high school,

and majored in Japanese language and literature at the University of Michigan. In college, I developed

a keen interest in Korea, the cultural roots of Japan, and decided to learn Korean.

Q. Learning Korean must have been quite a challenge for a native English speaker.

A. It wasn’t that difficult since I already knew Japanese. Both languages have similar word orders

and have many words originating from Chinese characters. In 1983, right after college, I studied

Korean for a year at Seoul National University’s Language Education Institute. I became friends with

an architecture major from Japan, and we explored hanok villages like Bukchon. I think my father

had a lot to do with my developing an interest in architecture. He designed my grandparents’ house

himself.

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♦ New Building in Front of Hanok Forces Him to Move

Thereafter, Fouser went back and forth between Korea and Japan. In 1987, he came to Korea and

taught English at KAIST and Korea University, and in the mid-90s, went to Japan and taught English

and English language teaching at Kagoshima and Kyoto universities. He also taught Korean at

Kagoshima University. He earned his doctoral degree in applied linguistics at Trinity College Dublin

in 2001, and in 2008, became the first foreign professor to teach Korean teaching methods in the

Department of Korean Language Education at Seoul National University, which is when he decided

to settle permanently in Korea. He chose to live in a hanok again, and was able to find just the right

one in Nuha-dong in Seochon.

Q. Didn’t you want a house in Bukchon where there are more hanok?

A. Housing prices in Bukchon have spiked since the early 2000s due to large hanok renovation and

construction projects. It has become a tourist hot spot, so you can no longer enjoy the once quiet,

tranquil atmosphere, whereas Seochon has more of a lived-in feel to it. But I moved to Bukchon in

just a year. A seven-story building was going to be constructed right in front of my hanok, completely

blocking my view. I found it hard to believe that a construction permit could be granted for a building

that couldn’t be more out of place in a hanok village. I thought, ‘I’m done with this neighborhood,’

and packed my stuff and left.

Fouser is actively involved in a campaign to preserve hanok. He took part in a neighborhood

movement to prevent the tearing down of the house of writer Yi Sang (1910-1937), and held

neighborhood forums on the preservation of the hanok and alleyways in Seochon, and also made

pamphlets.

Q. It’s somewhat surprising that a foreigner would take such an active role in the preservation

of hanok. Your love for hanok is exceptional.

A. Someone has to speak out. No one did, so I decided to take the initiative. A foreigner is a resident,

too. In the summer of 2012 I visited the house of Jane Jacobs, who was well known for organizing

grassroots movements to protest against the reckless development in New York. Greenwich Village

is a neighborhood in New York with a long tradition, just like Bukchon, but being located in the heart

of the city, it was under a lot of pressure for redevelopment. In the 1960s, Jane Jacobs, a housewife,

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fought to preserve Greenwich Village by coming together with other neighborhood residents to stop

plans to build an expressway in the village. This shows just how important the active involvement of

the community is.

He moved back to Seochon after living three years in Bukchon. “Bukchon has become too

commercialized. Seochon is quieter. Besides, there were some things I had to do here, such as the

hanok preservation movement. I also know more people here,” he said, adding, “My body may have

been in Bukchon, but my heart was always in Seochon.” This time he bought an old hanok in Chebu-

dong that was built in 1936, and started the total renovation, which was more akin to building a house.

Q. Even with your love of hanok, a complete overhaul like that must have been a daunting task.

A. I tried to retain the characteristics of a traditional hanok while making improvements and adding

modern comforts so the house would suit my style. The construction cost a total of 150 million won

(around $150,000), but I received a grant of 48 million won ($48,000) from the Seoul Metropolitan

Government, which was a big help. The grant is given for building or renovating hanok in the hanok

preservation district.

Q. What was the main focus of the remodel?

A. I wanted to make it more comfortable to live in and at the same time revive the aesthetics of the

urban-style hanok of the 1930s. I reproduced an ornately patterned traditional fire wall made with

bricks and stone, frost glass etched with the Four Gracious Plants, and crackled glass with a rough

surface.

Fouser entrusted the renovation to master builder (carpenter who oversees the construction project)

Hwang In-beom, 45, whom he met during the Seochon hanok preservation campaign. To add a

modern touch to the hanok, he also brought in an architect to design the house. The project covered

eight months, three months for designing and five for actual construction.

Hwang, who is a certified master carpenter and Cultural Heritage Repair Technician No. 3702, has

participated in six construction projects involving the new construction or major renovation of hanok

in Seochon since 2010. He majored in German language and literature in college. About his career

turn, he explained, “I was looking for something that would be a good fit for me and that I was good

at. I discovered that carpentry, which involved working with wood and physical labor, was just that.”

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To learn carpentry Hwang went to look for work at the temples in Mt. Jiri, and in 1997 secured odd

jobs at a construction site for the maintenance and repair of Seonam Temple in Suncheon. Since then,

he has worked as a carpenter on various projects across the country to repair and restore cultural

properties, including Yaksu Hermitage in Silsang Temple, Mt. Jiri; the monks’ dormitory in Baekdam

Temple, Mt. Seorak; and the two-story wooden pagoda in Hyeondeung Temple in Gapyeong.

“Construction is a long and arduous process, and there’s bound to be conflict between the owner and

builder. So at first I was hesitant to accept Professor Pa’s proposal due to concerns that we could have

a falling out. But his firm belief in hanok moved me to take on the project,” said Hwang.

The two are members of “Hanok 3.0,” a gathering to exchange information about hanok, and they

met practically every day and put their heads together to come up with ideas for the kind of hanok

they would build. They traveled throughout the country in search of good quality lumber, and visited

tileries. The whole process is documented in Hwang’s book, “Building a Small Hanok.”

The motif for Eorakdang was the urban hanok from the 1930s built by so-called house-sellers. At that

time, to accommodate the surge in the population of Seoul in a limited amount of land, many scaled-

down hanok were built on land that was chopped into small lots. Rather than retaining the exterior

and internal structure of traditional hanok from the Joseon Dynasty, they were modified for more

comfortable living and occupied only about 66 square meters.

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Q. While the chair-sitting lifestyle is the norm in modern houses, the floor-sitting lifestyle is

more common in hanok. To adjust to a hanok then, you must have had to make some major

lifestyle changes.

A. In my Eorakdang, the study and kitchen are furnished with a table and chairs, while the living

room and bedroom are not. It isn’t so much a radical change in lifestyle, but a new one that is a mix

of both chair and floor sitting.

Q. Don’t you find it hard to sit cross-legged on the floor?

A. No, I can sit in that position for as long as I want. I got used to it from living in tatami-floored

rooms in Kyoto. I don’t use a bed, but sleep on a mattress on the floor.

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Q. The biggest drawback of living in a hanok is the cold. Even with heating installed, it must

still be much colder than an apartment.

A. It is colder than an apartment. The floors and walls can be insulated. It’s the ceiling that’s the

problem. But if you insulate the ceiling as well, the space will be completely enclosed. Being cold

means that there is a draft coming in. Thanks to that, the rooms don’t have to be aired each morning

as they don’t become stuffy. I can also sense the hanji (Korean mulberry paper) covering the windows

and doors breathing. In an apartment, you’re bound to get mold in the bathroom no matter how much

cleaning you do, but in a hanok, good air circulation prevents mold growth. However, I have seen

many people who move into a hanok without fully realizing what they’re getting themselves into just

because it seems like the trend or to show off to others that they’re different, and not last even a year.

Q. Not enough storage space seems like another drawback.

A. If you throw out what’s unnecessary, you can live a much simpler life. I don’t have a television in

my house. Clearing the clutter that fills your life can change your lifestyle. I once visited a hanok

which was packed with all kinds of furniture and home appliances. I thought why live in a hanok in

such discomfort.

♦ ‘Koreans, Obsessed with English, Neglect Hanja Education’

Q. You’ve lived 13 years each in Japan and Korea. What in your opinion are the distinctive

characteristics of the people in the two countries?

A. Spicy fish stew and prim sushi come to mind. Koreans are more optimistic and emotional, whereas

the Japanese tend to be more reserved, scrupulous and systematic.

Q. As a foreigner teaching the Korean language, you must have a lot to say about Korea’s

foreign language education.

A. The English craze in Korea makes me often wonder whether the government even has a foreign

language education policy. A lot of universities and even companies request English proficiency

scores in their application forms. It seems like the whole country is obsessed with English, and yet

no one really asks why Koreans need to learn English. It’s not like everyone is or will be employed

in jobs where English is a requisite, such as a diplomat or working with foreigners. On the other hand,

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hanja (Chinese characters) is essential for learning Chinese and Japanese, and yet hanja education

has been largely neglected in Korean schools. One of the reasons why France and Germany lay

emphasis on Latin education is that with most European languages stemming from Latin, it helps to

understand their own language better. I think Korea needs a foreign language education policy that

promotes the fostering of manpower proficient in foreign languages other than English, such as

Chinese or Japanese.

Q. A foreigner teaching Korean language education is quite unusual. What do you think is the

most important when learning Korean as a foreign language?

A. You can’t separate a foreign language from its culture. But there are few opportunities for

foreigners to meet Koreans and learn about Korean culture. To develop an interest in the Korean

language, foreigners need to meet more Koreans.

Fouser has plans to form a Korean study community group to help foreigners pick up the language

more easily by experiencing Korean culture. He said, “It will be more of a ‘hands-on education’ where

we make kimchi with local housewives and learn about Korean food, or go on field trips to see

Korea’s cultural assets and learn about Korean history.” He has already thought of a name: “The

Hanok.”

♦ Dislikes Being Called ‘Blue-Eyed Foreigner’

Towards the end of the interview, Fouser requested, “Please don’t use words like ‘blue-eyed’ ‘yellow-

haired’ ‘wonderful’ ‘outsider’ in the article.”

Q. Aren’t they words typically used to indicate Westerners?

A. Words like that only play up the differences between Korean and foreigners, and view foreigners

as being alien or a stranger. I once read an article about me that called me ‘a blue-eyed foreigner’ and

that was a bit upsetting. (Showing his eyes) My eyes aren’t even blue. In America, ‘blue eyes’ conjure

up images of a sexy young guy or girl lying on the California beach with their lover. But I’m from

Michigan and I’m far from that. Koreans tend to use such words without much thought, not fully

knowing their cultural or social context. They inadvertently use clichés to refer to foreigners not

aware that it could hurt the other person’s feelings.

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He said, “My love for hanok and Seochon has nothing to do with my nationality,” and added, “I’m

not an eccentric foreigner with a fascination for traditional houses in someone else’s country. I’m just

another local resident you meet on the street every day who just wants to fit in among the neighbors.”

[ May 24, 2014 ]

www.koreafocus.or.kr

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Yun Mi-wol: “I wanted to show people the elegant food that Koreans

put on the dinner table.”

Sin Jeong-seon

Staff Reporter

The Chosun Ilbo

“Since I was in Korea, I was on my way to the market in Changwon to buy some godeulbbaegi

(Crepidiastrum sonchifolium, a perennial herb). I casually glanced at my cell phone and realized I

had received 10 calls. They were from my son in Tokyo. Startled, I called him back and he answered

almost before the first ring. “Mum, we did it! We got two Michelin stars!” Yunke, a Korean restaurant

in Tokyo, had been awarded two stars by the famous Michelin Guide. I felt my heart tighten, as if it

was about to stop,” said the restaurant owner and chef, Yun Mi-wol, 57. “When times were hard I had

always carried on by telling myself better times would come someday. That day I thought ‘Today’s

the day!’”

♦ Michelin Stars for Korean Food in Tokyo

Yun is more famous in Japan as a successful kimchi entrepreneur. So how did she end up with a

restaurant recognized by Michelin? “I had been running a restaurant in Tokyo specializing in yakiniku

(Japanese-style grilled meat dishes) as well as soft bean-curd stew and bibimbap (rice mixed with

vegetables and red pepper paste). Working in the food business, I realized that the Japanese generally

looked down on Korean food as cheap, hot, salty and spicy. I wanted to get rid of that prejudice. I

wanted to show people the elegant food that Koreans put on the dinner table,” she said.

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♦ Lovingly Made Korean Food Gains Recognition

The restaurant Yunke opened last May in Tokyo’s Ginza 8-chome. It was Yun’s dream to open a

proper Korean restaurant in downtown Tokyo, especially in the Ginza area, where all the most

expensive brands are gathered. “For the first two months the restaurant lost more than 20 million won

per month. The rent alone cost that much. There were days when we served just one table and other

days when we had no guests at all,” Yun recalled. “It was hard enough making no money, but worse

than that, my belief that well-made Korean food would be appreciated in Japan as well was shaken.

But I decided to endure for six months, no matter what. If it proved to be no use in the end, I had

decided I would sell off all my business concerns in Japan and return to Korea.”

Q. Your spirit is admirable, but how on earth did you decide to open a restaurant in the Ginza,

where all the most expensive brands are gathered?

A. I guess you could say I was determined to serve the finest Korean cuisine in the optimum part of

town. The Japanese also think it is special to eat in Ginza 8-chome. I wanted people to think of eating

Korean food as a something to brag about too. If you want to do something properly then you have

to play in the big leagues. Even if I went under, I believed I would only be able to concede failure if

I failed here in Ginza.

For chefs around the world it is the greatest honor to receive a star for excellence in the Michelin

Guide. Although the French gourmet guide is yet to award any restaurant in Korea with a star, there

are starred Korean restaurants in New York and Tokyo. In New York, the restaurant Danji received a

star in 2011 and Jungsik in 2012. In Tokyo, Moranbong received two stars in 2012, and last year

Jungsik in New York was given another star. Yunke received two of the elusive Michelin stars within

seven months of opening. Yun’s excitement is not to be wondered at. The 2014 Michelin Guide

introduces the restaurant by saying, “The theme is naturally harmonious Korean cuisine enjoyed with

the five senses.”

Q. How did you learn to cook?

A. I prepare the menus and cook the food at Yunke, but I never studied cooking formally. I learned to

prepare the family recipes by watching my mother and my grandmother. If I had a teacher it would

be all my Korean cookbooks, which are piled up knee high.

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Two things surprised me when I visited Yunke in Tokyo on May 20. The restaurant was small and the

food familiar. The 90-square-meter restaurant has four rooms, with one table for four in each. That

is, it seats a maximum of 16 people. The food was also comforting. It was not high-brow court cuisine

nor was it fusion cuisine mixed with foreign flavors. It was close to the food that Koreans put on the

dinner table every day.

Yunke managed to impress the superior Michelin inspectors with Korean home food. Samgyetang

(ginseng chicken soup with rice) was the main dish of my meal. It cost around 4,800 yen (around

50,000 won) per person. The salad featured a dressing made with ginseng juice. Yun says she uses

ginseng grown by her younger brother in Haman, South Gyeongsang Province. Served in celadon

dishes were stir-fried anchovies, lightly roasted salted fish roe, and lotus roots boiled in soy sauce.

There was also a clear jelly spotted with sliced peas and rape flower petals. The red pepper paste had

a gentle aftertaste and was found to contain grated dodeok, a mountain root.

Q. What do you think impressed the Michelin Guide inspectors the most?

A. Taste is a subjective thing, so no food can taste good to everyone. But perhaps they recognized the

care and dedication that went into the food, which should be apparent to anyone. The liquid for the

soup, for example, is not just water but beef broth that has been boiled for five hours. I also give a lot

of thought to the presentation of the meals. I don’t put all of the ingredients in at once when I cook

jjigae (stew). I season the fish and cook the soup, and serve them as separate dishes placed side by

side. This makes it easier to accept for the Japanese, who are not used to Korean-style stews.

♦ Putting Dreams of Being a Singer behind for the Family

Born in South Chungcheong Province, Yun’s childhood dream was to be a singer. As soon as she

graduated from high school she came up to Seoul and started singing in the clubs around Mugyo-

dong. She fell in love with a bandmaster 12 years her senior and gave birth to a girl at the age of 21.

It was only two years later, when she had her first son, that she realized her husband was already

married. With no hope of child support from a husband who made no money, she instead gave him

alimony and the two separated. With the money she earned as a singer she raised her children and

looked after her parents.

The five of them lived in a basement room in Yeonhui-dong. From time to time she was included in

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a team of singers that went to perform in Japan. She was 23 when she first stepped foot in Tokyo.

“I’ve lived with the belief that my youth ended at the age of 23,” Yun said. But she managed to endure.

Whenever times were hard, she gritted her teeth and told herself over and over again: “Better times

will come. Better times will come, I’m sure of it.”

Q. So your grief and pride held you up?

A. We lived in a basement room that cost 200,000 won per month, with a one million won bond. But

we were always behind on the rent. I used the landlord’s phone a couple of times and was later given

the whole phone bill to pay. It was unfair but I couldn’t say anything. That’s when I decided I would

become the boss. I didn’t know what being the boss entailed, but I thought that was the only way to

make sure I wasn’t mistreated and to educate my children properly. I decided I had to live with

confidence.

Q. Determination doesn’t mean things turn out the way you planned.

A. That’s true. One morning I went to make breakfast but found that we had no rice left. I was sitting

there in a daze, looking at the empty rice bin, when I heard my father coughing. He suffered a lung

disease and used to cough up blood. I wanted to die. I would get fits of depression, thinking that no

matter how hard I worked my life would never get any better. From that day onward, I have been like

a racing horse rushing forward with eyes on the finishing line. The memory of the empty rice bin has

been like a whip, urging me on.

Q. How did you end up in Japan?

A. In the 1980s when I traveled to and from Japan as an unknown singer, I started selling clothes in

Japan. It was quite profitable but it wasn’t really something I enjoyed. So after some deliberation, I

finally opened a yakiniku restaurant named Kiri near the Tokyo limousine bus terminal. I had always

been quite a good cook.

♦ Success with ‘Obstinate Kimchi’

Q. What made you start your kimchi business?

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A. One of my regulars at the yakiniku restaurant was the owner of a dried fish operation. He wanted

to change his line of business and was interested in Korean kimchi. It appeared that he hung out in

Shinjuku and stopped Korean women passing by to ask them how to make it. But no matter how

much he tried he couldn’t achieve the taste that he wanted. Perhaps he tasted our kimchi and thought

he had found what he was looking for ― anyway, he asked for the recipe. That’s how I came to serve

as an advisor for the company. Then in 2000 I established a company named Gunsik Trading and

entered the Japanese market with a product named “Yunke Kimchi.”

Q. They say competition is fierce among Korean kimchi companies exporting to Japan.

A. In the early days, we entrusted manufacturing to a factory in Changnyeong, South Gyeongsang

Province. When we went there to receive the kimchi, the factory president shut the door and would

not open it. We found out that he had made a duplicate contract with a competitor company which

wanted to cause trouble to us and drive us out of the market. Even back in the 1990s there were some

10 companies competing with each other. The Japanese kimchi market is now worth some 600 billion

won, and kimchi imported from Korea accounts for some 80 billion won. Yunke Kimchi is all made

for export to Japan. At one point our revenues reached 30 billion won annually. We proudly state that

of the various kimchi brands sold in supermarkets across Japan, Yunke Kimchi tastes the most like

original Korean kimchi.

Q. I hear that in Japan it is known as “the obstinate kimchi.”

A. As it was business that I started with the aim of promoting the taste of Korea, I was not prepared

to change everything to suit Japanese tastes. I make compromises. But the basic seasonings have to

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be done the Korean way.

Q. Have you had any moments of crisis in the kimchi business?

A. We almost closed doors because of Typhoon Maemi and the parasite discoveries. When Maemi

hit in 2003 there were no cabbages to be found in Korea. We had set delivery volumes but it looked

like we would be unable to fulfill them. One truckload holding 2,700 cabbages cost 20 million won.

But we were unable to purchase that amount. Dressed in gumboots and raincoat, I sought out cabbage

farms in Gangwon Province and spent 10 days digging around to find even one more cabbage. I could

barely breathe when I thought of being unable to honor our delivery volumes. Then in 2005 came the

parasite crisis. When it was reported that parasite eggs had been discovered in Korean kimchi made

with cabbages imported from China, the Japanese stopped eating Korean-made kimchi. We had to

dispose of all the kimchi that had been made. The factory stopped operating for six months.

Even as she wandered around the cabbage fields in Gangwon Province swept by Typhoon Maemi,

she repeated to herself, “Better times will come.” It was not that there was no alternative. She could

have used Chinese-grown cabbages. But she stuck to the principle of using only Korean cabbages. “I

would have been able to deal with the immediate problem, but if I deceived customers in another

country who believed they were eating Korean kimchi, I would lose credibility and probably find it

hard to recover,” Yun said.

♦ Master’s Degree Son Does the Serving

Yunke did not get off to an easy start. Yun had spent a fortune on outfitting the restaurant but had not

yet put together the all-important menu. “What kind of food are you going to serve?” asked her son

Ju Hyeon-cheol, 34, who is vice-president of Yunke. It was only a week before opening that the ideas

came rushing into Yun’s head.

Q. What has changed since you received the Michelin stars?

A. Within a few days we were fully booked for three months ahead. Now we will just be able to make

ends meet. We invest so much in the ingredients that it will be hard to make a profit. Previously our

customers were almost all Japanese, but with the Michelin stars we’ve been getting more Korean

customers, who now make up around 30 percent. I am pleased to receive recognition for my belief in

making real Korean food and my abilities, but the thought of maintaining those stars is a load on my

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shoulders.

The Michelin Guide is exacting. Once a chef has earned the stars he or she does not keep them forever.

An inspection is conducted annually. In 2003 a leading French chef even committed suicide over fears

of losing the Michelin stars.

Q. Did you ever think about a menu based on royal court cuisine?

A. The core of my cuisine is “greens cooked by grandmother.” I want to pass on the taste of the greens

(namul) that my grandmother seasoned with precious perilla oil. There is a restaurant in Japan that

serves Korean court cuisine. I could learn to cook court cuisine but it would not be the real thing

handed down in the court from generation to generation. We shouldn’t be too quick to attach the

“court” label to anything.

Q. What is the secret that has enabled you to succeed in both your kimchi business and

restaurant?

A. There’s something I always say to my employees: Whether it’s a viable dream or not, the important

thing is to have a dream. Don’t look back. Your dream will only come true if you keep looking

forward. No deed is beneath you in achieving your dream. After becoming my own boss, whenever I

needed money I did not hesitate to work in the kitchens of other Korean restaurants. There was a time

when I would work at three or four different restaurants in one day. What does it matter, so long as

you don’t deceive your own conscience? Going to the pawn brokers is not shameful; what’s shameful

is deceiving others by pretending to be something you’re not.

Yun sent both her children overseas to study at a young age. Her daughter graduated from Peking

University in China and now runs a bakery in Tokyo. Her son majored in aerospace engineering at

the University of Manchester in England and then studied business management at London

University.

Q. Your son has a master’s degree in business management but you made him serve in the

dining hall.

A. It was a difficult decision. But even if you land a job in a terrific company, you have to leave it

one day. My son will have to run his own business someday and he has to be his own boss to survive.

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But up till now, all he has done is study overseas with my financial support. That’s all he knows of

the world. So I told him, “If you’re going to learn about life from the bottom, you have to carry dishes

in this restaurant.” The restaurant is the greatest classroom of life. I told my son, “From now on,

you’re not carrying dishes, but your life.”

Yun’s son attended the party to commemorate the Michelin star award. “There I realized the stars

were not an award for the superb taste of the food,” he said. “Working in a restaurant means spending

the whole day in a limited space. After a week, then a month, you feel like you’re going mad. These

are people who work till their faces are covered in grease and sweat. The Michelin Guide recognizes

the passion and convictions of people for whom a restaurant is not just a means of making money.”

As for Yun, she always carries a big bag containing two notebooks. The pages are crowded with

recipes. “If I suddenly get an idea while I’m walking along, I’ll stop and write it down. I’ll also get

up from bed to write notes,” she said.

Q. What’s the most important principle in cooking?

A. Korean food is elegant even when served “bare-faced.” It doesn’t need to be all made up. When

the chefs in the kitchen put some garnish on top, I instantly get rid of it. I tell them Korean food looks

beautiful just as it is in the dish, so there’s no need to try to create art. Also, I don’t use any garlic in

my seasoned greens. The taste of garlic is so strong it tends to smother the other ingredients. Instead,

I use grated onion, which gently brings out the flavors, and while being slightly sweet it fuses well

with the other ingredients.

♦ ‘It is Still my Dream….’

In March this year, Yun opened a Korean restaurant named Sugeumjae in Changwon, South

Gyeongsang Province. It is close to her kimchi factory in Miryang. The food is basically almost the

same as that of Yunke, except for some variation in the ingredients and composition of the menu. As

the news of the Michelin stars awarded to Yunke in Tokyo spread, more people have been seeking

out Sugeumjae.

When she received the Michelin stars, Yun wondered “Can it get any better than this?” but these days

she has started to dream of “even better days.” Having captured the stars, she now has New York

engraved in her heart. “I want to open a branch of Yunke in New York,” Yun said. “I want to introduce

to Westerners who have never been to Korea the taste of cooked greens seasoned with salt, soy sauce

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and perilla oil.” Though she has gained the coveted Michelin stars, there’s another star, the polar star,

which is always in Yun’s heart: “It is still my dream to become a singer. I gave it up in this life, but if

I am born again I’m going to be a singer, but a top-class one next time.”

♦ Michelin Guide and its Secret Inspectors

The Michelin Guide is a guide to the top restaurants in the world published by the French tire

manufacturer Michelin. It began in 1900 as a travel guide published and distributed for free by the

founders of the company, the brothers Edouard and Andre Michelin, who wanted to encourage auto

travel and thereby the consumption of tires. The system of rating restaurants with a number of stars

began in 1926. Local guides are published annually in major cities around the world such as Paris,

New York and London. The Michelin Guide’s reputation comes from its inspectors’ anonymity and

impartiality. The inspectors visit the restaurants as ordinary customers and even the Michelin

executives do not know who they are. It is a well-known in-house rule that inspectors are not even

allowed to tell their parents what they do. Apart from the Michelin Guide, or “red guide” due to the

red cover, there is also the “green guide” that rates travel destinations.

[ May 17, 2014 ]

www.koreafocus.or.kr

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Korea Focus is a monthly webzine (www.koreafocus.or.kr), featuring commentaries and essays on Korean politics, economy, society

and culture, as well as relevant international issues. The articles are selected from leading Korean newspapers, magazines, journals and

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The content is the property of the Korea Foundation and is protected by copyright and other intellectual property laws. If it is needed

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ISBN 979-11-5604-079-8

Publisher Yu Hyun-seok Editor Lee Kyong-hee Editorial Board

Shim Ji-yeon Professor, Kyungnam University Lee Ha-won Director, TV Chosun Kim Yong-jin Professor, Ajou University Hyun Jung-taik Professor, Inha University Hahm In-hee Professor, Ewha Womans University Sonn Ho-chul Professor, Seogang University Kim Gyun-mi Deputy Editor, The Seoul Shinmun Kim Hoo-ran Senior Journalist, The Korea Herald Peter Beck Korea Represetative, Asia Foundation Jocelyn Clark Professor, Paichai University

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