[South Korea] If you have the world's highest household debt, you don't have enough disposable income - If you don't spend money, it's just bad manners.
2022-06-20
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Private/government debt is ２５４%
In a statement distributed in advance of the conference, Professor Ham Joon-ho of Yonsei University Graduate School of International Studies, who served as a member of the Bank of Korea's Financial and Monetary Committee, stated, ``Korea's macro leverage (private and government debt) level has expanded to ２５４% of GDP. ” he pointed out.
Household debt is １０４.２% of GDP
The household debt balance has continued to expand for １６ years, reaching a record high of １,８５０.９ trillion won (approximately １７６.９８７１ trillion yen) in the April-June ２０２１ period. According to a study by the Institute of International Finance (IIF), Japan's GDP ratio was １０４.２%, the highest among ３７ major countries and regions. Incidentally, the countries other than South Korea are followed by Hong Kong (９２.０%), the UK (８９.４%), and the US (７９.２%).
Global trend of interest rate hikes
On the １５th, the Federal Reserve Board (FRB), the central bank of the United States, announced the first major interest rate hike in about ３０ years. The policy rate will be raised by ０.７５% to a range of １.５０ to １.７５%.
Prior to this, South Korea announced that it would raise its policy interest rate from １.５% to １.７５% in May. The rate was set at １.５% in April, making this the second consecutive month of interest rate hikes. This will also be a severe blow to those who are burdened with household debt.
South Korea's per capita GDP is approaching that of Japan. According to the ２０２１ IMF announcement, Japan's price is $３９,３４０ and South Korea's price is $３４,８０１. However, Japan's household debt is around ６６-７%.
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Economy of the Yi Dynasty Korea "Japan introduced a monetary economy" The central bank of the Korean Empire is Japan's No. 1 bank.
A monetary economy did not develop on the Korean Peninsula
Repeated inflation due to mass production of currency
If there is no money economy, there is no capitalism
Introduction of loans and Japanese banks managing customs
Japan bailed out the past two currency crises
In the early Joseon Dynasty, exchange was limited to salt, a proprietary product, and cloth, rice, and grains. After that, linen, cotton cloth, rice, etc. were traded as physical currency. Kozo coins were issued in 1401 to encourage currency, but they did not become widespread.
In 1423, a bronze coin called Joseon Tsubo was created, and in 1464, a coin was coined, but these were used for the purpose of collecting taxes for the state and were not distributed to the general public. In 1678, the Johei Tsuho coin was minted.
This coin was issued for about two centuries, but confusion occurred because each government office was allowed to mint it. In 1866, Daewongun minted 100 coins to rebuild finances and rebuild Gyeongbokgung Palace.
Rather than rebuilding finances, they were mass-produced, causing the value of the currency to plummet and its currency to be denominated in 1868. Although the Gosen was issued in 1883, its value quickly plummeted and its currency was banned in 1895. Cupronickel coins were issued in 1892, but they were used as supplementary coins during the gold standard system.
In other words, the economy of the Korean Peninsula is based on barter. Slaves were also sold in exchange for five slaves and one cow.
After the Sino-Japanese War, Japan introduced loans to overcome the financial difficulties on the Korean Peninsula. Customs belonged to the Daiichi Bank of Japan, and customs duties were collected in Japanese currency. The money consolidation project was financed by loans from Japan, and Japan's First Bank became the central bank of the Korean Empire.
Without a money economy, there can be no capitalist economy. Japan modernized the Korean Peninsula and developed the market, including the monetary economy and the circulation of capital. Even now, when South Korea conducts transactions with other countries, letters of credit for accounts payable are issued by Japanese private banks. Without this letter of credit, Korean companies cannot conduct international transactions.
Japan also provided relief during South Korea's currency crises in 1997 and 2008. The very currency that is the backbone of the Korean economy becomes something that Japan gives credit to. Although Japan no longer issues currency haphazardly and causes catastrophic inflation as it did during the Joseon Dynasty, no country has ever experienced a currency crisis twice in 10 years. In that sense, it can be said that Wong remains vulnerable. This is the history of currency on the Korean Peninsula up to the present day.
Decrease in disposable income due to mortgage loan
Housing loans are the largest component of household debt. The skyrocketing price of land in Seoul continues to skyrocket, forcing many to borrow large sums of money to purchase apartments. As a result, even if GDP and wages rise, most of the money goes toward repaying household debts, resulting in less disposable income. I don't have any money to spend.
Even after salaries are paid, the money goes straight through the tunnel and is returned to financial institutions, where it is returned to the market. This is the reality of GDP per capita in the Korean economy.
A traveler who just has bad manners
As the coronavirus pandemic begins to subside and overseas travel is gradually lifted, travel to Japan is expected to become a boom again in South Korea. It's not that they like Japan. The above reasons are largely responsible for why Japan is chosen as a nearby travel destination.
And just because you come to Japan doesn't mean you have to spend money. There are quite a few groups that find faults, point them out, and complain to each other. It is said that Korean tourists just have bad manners.
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South Korean delegation insists on 'efforts from both countries' - Japan is fulfilling all its promises - South Korea is the one who is not making enough efforts
South Korea says efforts from both Japan and South Korea are necessary
Intentions of both countries passing each other
What is the destination that Korea envisions?
If we misunderstand the Korean issue, the government will tilt
Japan has already apologized many times
Japan fulfills all commitments
What does the effort of both countries mean?
While the recent South Korean delegation's visit to Japan has been reported as if the two countries have once again returned to the direction of improving Japan-Korea relations, the response of the Japanese government, including the prime minister, has been criticized. The South Korean side is keen to improve Japan-Korea relations, and as a result, interviews with the current prime minister, former prime minister, and other ministers were held. The most important point is that a gap that cannot be filled has been identified.
The rift is that while Japan is demanding that South Korea "fulfill its commitments," South Korea has consistently stated that "efforts from both sides are needed." This means that South Korea will not make unilateral concessions. More specifically, before the presidential election, President-elect Yoon Seok-Yeol met with Lee Yong-soo, a self-proclaimed representative of former comfort women, and said, ``We must demand an apology from Japan.'' has promised that he will receive it. That's probably what he's saying.
What kind of efforts does South Korea want from Japan? For example, is the Japanese Prime Minister going to South Korea, meeting with former comfort women, apologizing, and reporting the moving scene as an attempt to settle the matter? However, if South Korea's next government does not understand that this is an unlikely future, improving relations seems a long way off.
If Prime Minister Kishida were to do something like that, the Kishida administration would surely collapse, and even in this meeting with the parliamentary group, there are voices calling for Kishida to be removed from the position of prime minister. There are even voices saying that they will not vote for the Liberal Democratic Party in the next House of Councilors election. Reasons for this include the forced labor judgment and the abrogation of the Japan-Korea comfort women agreement.
Regarding the South Korean delegation's visit to Japan, since it was a group of parliamentarians before the inauguration of the new South Korean government, there were many opinions that Japan should also conduct the visit within the framework of parliamentary exchanges and that the government should not deal with it.
The comfort women agreement states, ``This is an issue that has deeply damaged the honor and dignity of many women, and from this perspective, the Japanese government is acutely aware of its responsibility.'' I would like to express my heartfelt apologies and remorse to the people of... Yun Seok-Yeol seems to think that since he has expressed his apology, it would be okay to apologize face-to-face. However, the agreement states, ``As the Japanese government declares the above and steadily implements the measures in (2) above (establishment of a foundation), this announcement will ensure that this issue will be finalized and irreversible.'' to make sure it is resolved."
The 1965 Claims Agreement, including the issue of forced labor, was already resolved. Japan is simply asking South Korea to faithfully implement these agreements. Japan has fulfilled all of its responsibilities, so all that remains is for South Korea to fulfill its own responsibilities. In other words, it is no longer an issue for both countries to make efforts.
Jeong Jin-seok, head of the South Korean delegation, claps his hands together and says that only by joining hands like this can relations be improved. Hearing these words, I can't help but think that South Korea's next new government may not even understand what the current situation is. This is because the efforts of these two countries resulted in the Claims Agreement in 1965, the Japan-South Korea Joint Declaration in 1998, and the Comfort Women Agreement in 2015, which is exactly the kind of hand-to-hand situation that Chung described. It is South Korea that unilaterally abolished these . Japan must not take a step back from this line.
If we look at Japan-South Korea relations after the restoration of diplomatic relations, South Korea has completely torn up all previous agreements. Is the next agreement really necessary?
Anti - Japanese professor Seo Kyung - duk asks Apple to refer to Dokdo throughout the world? I don't like him even though he was considerate to Korea. [Donga Ilbo translated article]
Seo Kyung-deok, famous for being anti-Japanese
Takeshima is commonly known as Liancourt Reef
I don't like it even though I took South Korea's claims into account
Does the entire world insist that Takeshima become Dokdo?
No concessions to that country
Seo Kyung-duk, a professor at Seong-Shin Women's University, has decided to change the name of Dokdo for each country in relation to the fact that Korea's ``Dokdo'' appears differently depending on the language settings in Apple's iPhone map application. The company announced on the 20th that it will consider whether to protest in the future.
On the morning of the same day, Professor Seo posted on his social networking service (SNS), ``How will Dokdo and the East Sea be represented in each country on Google Maps, the map app most used by people around the world in 2019?'' ``As a result, netizens living in 26 countries reported that all of Dokdo can be searched for ``Liancourt Rocks'' on Google Maps.''
It goes on to say, ``Dokdo is only accurately described in South Korea, and Google Map searches in Japan show ``no results'' or ``Takeshima'' (Takeshima, the name of Dokdo claimed by Japan). ``We have been steadily protesting to Google, but changing the name to ``Dokdo'' was not easy.''
``Recently, when the language is set to Korean in the Apple iPhone map app, ``Dokdo'' is correctly displayed, but when it is set to Japanese, it is written as Takeshima. "After doing so, please provide information on how Dokdo and the East Sea should be represented on the map installed on the iPhone."
Meanwhile, the issue of Apple's guidance on the notation of Dokdo came to the fore on the 18th, when the private cyber diplomatic mission 'Bank' (VANK) officially raised the issue. At the time, Bank said, ``It is a clear mistake for Apple to refer to South Korea's Dokdo differently depending on the language in which it is designated, and Coms.'' ``We will send a protest letter requesting that this be corrected, and we will also carry out a rectification campaign.'' "I guess so," he argued.
I think that the Japanese people are starting to realize this recently, but making concessions to that country is a no-no. If they think so, then it's a matter of luck if they think it's okay to make concessions to this extent. They just think that because the other side has given in, they can go further and further.
Masatoshi Muto, a former diplomat, says that making concessions to South Korea is a mistake and that South Korea needs a firm response.
Masatoshi Muto on his dealings with South Korea during his time as a diplomat. He says that he made a mistake by listening to everything and requesting as much as possible.
When asked about the anti-Japanese movement taking place in South Korea, Taro Aso, during his time as Prime Minister, asked, ``Does that have something to do with it?'' Japanese people don't care. As a result, the term ``virtual enemy country'' became popular. The view was that South Korea was conducting an anti-Japanese movement due to domestic circumstances.
There is no doubt that South Korea's current enemy is primarily North Korea. The Korean War is not over yet, and there is currently a ceasefire. When we see public opinion in South Korea calling Japan an enemy country while facing each other across the 38th parallel, we can't help but wonder to what extent South Korea is escaping reality.
When considered within the same framework, China is on the side of South Korea's enemy in the Korean War frame. Until now, the South Korean government has not been able to resolve security issues, and has abandoned its military and continued to focus on Japan, which has not fought back, because if it expressed hostility toward North Korea, China, or the United States, it would immediately take retaliatory measures. It's here. This is to gain the public's attention by saying something powerful. In doing so, it is easy to use stories from the past annexation era. Japan understands this environment and has tacitly tolerated South Korea's anti-Japanese movements.
What we need to clarify is that all of these environments are always real problems for South Korea. It seems that as long as Koreans remain anti-Japanese, they can temporarily feel as if their problems are gone. Even now, when the anti-Japan flag goes up, I forget everything due to a spinal reflex.
[Korea] A major failure in the nuclear phase - out policy highlighted by the rise in electricity prices - Passing the blame on to the people and giving them cold water.
South Korea will raise electricity prices
Korea Electric Power fell into a large deficit
Moon Jae-in's obvious mismanagement
Is the Fukushima prefecture product a commotion to distract people?
Countries with anti-Japanese spinal reflexes
The day you regain your composure
The South Korean government has decided to raise household electricity rates by 5 won per kWh starting in July. This year's additional measures are expected to raise prices by about 15%.
KEPCO posted an operating deficit of 5.86 trillion won last year, the largest in its history. The deficit in the first quarter of this year was already 7.8 trillion won, and unless the tariffs are raised, the annual deficit is expected to reach 20 trillion to 30 trillion won. Therefore, the idea is to transfer that deficit to the people as usage fees.
The Moon Jae-in government is being held responsible for its policy of ``phasing out nuclear power without increasing electricity rates.'' KEPCO, which had a surplus of several trillion won, became a loss-making company under the Moon government. During the five years of the Moon administration, KEPCO's debt increased by 41 trillion won. There are reports that if we phase out nuclear power, electricity costs will have to rise by 2.6% every year, and by 40% by 2030.
Korea Electric Power is South Korea's public power company. Japan's ban on importing seafood from Fukushima, the release of treated water into the ocean, and the controversy surrounding athletes' meals at the Tokyo Olympics are all efforts to cover up the failures of energy policy under the Moon Jae-in administration and distract the public. It looks like it was a festival.
They completely ignore scientific evidence, create sensationalism, and link it to anti-Japanese sentiment. When this happens, the Korean people lose their cool and become overheated. This is the result of anti-Japanese education, and is like an anti-Japanese switch that the South Korean government often uses.
The anti-Japanese mood seems to have eased somewhat with the arrival of the Yun Seok-Yeong administration, but will the public bear the burden of the Moon Jae-in administration's failures in energy policy, which will further dampen the anti-Japanese fervor? Regarding the causal relationship between cause and effect, in Korean society the problem shifts to Japan. Japan has nothing to do with the failure of energy policy. Even if people say things have calmed down, I feel like it's already too late.
President Yoon Seok - yeol said,
The Hankyoreh newspaper reported that the expectation that President-elect Yoon Suk-yuei will "do well" in state affairs has dropped for two weeks since taking office, raising the prospect that he will "do poorly.Moon Jae In Compared to 46.7 percent of the respondents said they are doing well, the expectations before taking office are low.
Yoon Suk-yuei said to move his President's office to another place, but before the inauguration of the president, the ruling Democratic Party of Korea and Moon Jae In have made it unable to move offices.
Meanwhile, the current president and the next president finally met on the 28th.Until then, the succession of the presidential office had not been realized in a tug-of-war between the ruling and opposition parties.The Hankyoreh newspaper seems to be advocating the Dalian government with the ruling party, but it seems to be quite unreasonable.This is because the election pledges of Yoon Seok-yeol and his rival Lee Jae-myung are water and oil , and there are few compatible factors.In the case of the Dalian administration, Cheong Wa Dae will have to make concessions to the ruling party in many respects, and it will end up being difficult to know what they are actually doing, even though they seem to have come together.
In order to resolve the strained situation, the power of the people must win the national election in 2024 and become the ruling party.It is highly likely that many legislative bills will not pass due to resistance from the ruling party even if they implement their own policies in a twisted state for the next two years.In that sense, nothing is expected to change for a while even if he is inaugurated as the new president.How to survive the two years and win the national election will all be after that.
Yoon Suk-yue is calling for improved relations with Japan and strengthening U.S.-South Korea relations, and the ruling party is insisting on keeping a distance from China.
![[South Korea] If you have the world's highest household debt, you don't have enough disposable income - If you don't spend money, it's just bad manners.](./upfile/409-1.webp)
