[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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What are your expectations for President Yun Seok-yue? Twisted National Assembly is a thorny road - Should Japan approve or wait and see? - South Korea's general election will be held in 2024.
Positive theory of Japan-Korea relations and wait-and-see theory
Remains twisted until 2024
Will true speech be freed under the new administration
Korean society will be denounced if it affirms Japanese rule
A country where there is no freedom of speech about history
Looking at Japanese public opinion regarding the prospects for Japan-Korea relations since the inauguration of the Yun Seok-Yeol administration, there are some positive views toward improving relations and a wait-and-see view seen mainly on the right. As always, the affirmative opinion has no concrete content, and since the other party is asking for an improvement in the relationship, things will probably get better. It's just a matter of trying to get along because we're neighboring countries.
The wait-and-see theory is based on the points of the Korean unified local elections in June and the national election in 2024, and that the Democratic Party (a pro-China, anti-Japanese party) holds the majority of the Korean National Assembly.Twisted stateTherefore, unless the ruling party wins the power of the people in the 2024 general election, no bill will be passed, so nothing can be done. Until then, Japan should do nothing and wait and see.
The least I can say is that I don't expect Japan-Korea relations to deteriorate any further during the next five years of the next administration. Personally, I think that if things don't get any worse, there's no need for them to get any better. In other words, there is a necessary distance between Japan and South Korea. This may be the best distance relationship.
In the long run, it would be most effective if the speech of pro-Japanese groups was liberated, rather than if the anti-Japanese movement subsided on the surface. In addition to those who prefer Japanese culture in South Korea, pro-Japanese speech is another form of speech that has been suppressed regarding the annexation of Japan and South Korea and Japan's support for South Korea after the war. Japan has no choice but to wait for South Korea to change, but there is no sign of that happening at all. The appearance of calm on the surface is only a temporary phenomenon. The root of Japan-Korea relations lies within South Korea, where freedom of speech is not recognized regarding the past history of Japan and South Korea. It is impossible to publicly state the fact that the Korean Peninsula modernized under Japanese rule.
Under Japanese rule, slaves, who accounted for half of the population, were liberated, the class system was abolished, a school education system was established, food self-sufficiency increased, starvation deaths decreased sharply, sanitary conditions improved, and cholera and typhoid fever were reduced. The number of deaths due to such things has decreased dramatically. These are facts that do not exist in Korea.
In South Korea's historical perspective, those who affirmed Japanese rule were expelled from academia in order to make the history of being enslaved and violated by Japan into a fact. He was also expelled from politics and government, and media outlets were also blocked. This is an unobjective view of history that only accepts one opinion, and is not academic in the first place. At the root of Japan-Korea relations is this unilaterally created view of history and the education of history based on that view. Unless this changes, we can see that even if the government continues to work together as it has done in the past, it will crumble like a sandcastle. This is exactly what history has proven.
In other words, improving Japan-Korea relations means that South Korea itself will gain academic and speech freedom, that scholars who support Japanese rule will return to academia, that they will return to politics, and that South Korea will become a democratic country where people can have free discussions. . Without this, anti-Japanese education will never disappear. This is an issue that requires the process of South Korea maturing as a democratic country, so it will take a very long time. Therefore, Japan should continue to keep its distance and not approach them easily.
If we look at the past, we are skeptical that politics will improve Japan-Korea relations. This problem is that academic and freedom of speech have not been secured in South Korea in the history of Japan and South Korea.
Korea Real Estate Bubble This is the KOSPI chart.Why does it go up when investment from Japan has decreased by 50% and investment from the United States and the EU has decreased?You'd better imagine who's buying stocks.One is Chinese money. This is exactly what the current administration wants.Another is stock investment, which is secured by soaring real estate prices.Another is private investment by ordinary people who cannot buy real estate, even if they borrow money from rising stocks.In other words, it is a bubble.The IMF warned that Korea's household debt is above the danger level.Judging that this is a temporary phenomenon, it is better to stop borrowing money and investing in real estate and stocks to increase assets.
The South Korean government is responsible for the Korean government's refusal to allow its nationals to repatriate - Japan protected them out of human rights considerations.
The issue of forced labor and the issue of residents in Japan are related. Conscription on the Korean Peninsula took place from August 1944 until the end of the war the following year. Until then, Koreans on the Korean peninsula were not subject to conscription or conscription. Employment at Japanese companies is highly sought after, and despite being conscripted, Mitsubishi Mining received seven times as many applications as recruitment.
Normally, those living in Japan would be forced to leave because they are foreigners, but the reason why this is not the case is because of the 1965 Japan-Korea Status of Forces Agreement. The South Korean government at the time received a huge amount of aid, but refused to allow its citizens to return home. Since all Koreans in Japan were believed to be slave laborers who had been forcibly taken away from Japan, it would have been inconvenient for a large number of people who had experienced a different reality to return home. Japan restored diplomatic relations out of human rights considerations and guaranteed the Koreans' status in Japan.
As was made clear in the Gunkanjima issue, the recruitment at that time was legal recruitment under ILO standards. In terms of human rights issues, it lies with the South Korean government, which has refused to allow large numbers of its own citizens to return and has discarded them. That is a human rights issue. And what is being made a fuss about all this is the issue of conscripted labor.
South Korea is furious after being told that kimchi originates from China - Do they go crazy when they are forced to do something they always do?
While watching YouTube videos about Sichuan cuisine, I suddenly noticed the controversy surrounding the origin of kimchi, which is based on Sichuan's foamed vegetables. I used to think that Sichuan cuisine was spicy because spices from western countries such as India and Pakistan were introduced, but chili peppers are native to South America, so chili peppers probably didn't exist in China.
There is a theory that it was brought to Japan when guns were introduced, or that it was brought by missionaries, but it seems that it was brought to the Korean peninsula during Hideyoshi's Bunroku and Keicho campaigns. It was the end of the 16th century. So I researched when chili peppers were introduced to Sichuan, and found that it was in the 17th century, at the end of the Ming Dynasty. I'm not sure when chili peppers began to be used in Awa Nai or Korean kimchi, but it would be a mistake to say that the current kimchi made with chili peppers originated in Sichuan Province.
If that's the case, there must be a culture of foamed vegetables using chili peppers all over China, or even on land routes to Beijing. Chinese historical debates tend to be like this. China's 3,000 years will turn into its 4,000 years the next day, but there are no excavations that have spread its culture geographically. It ends with a dot. Culture is transmitted through people as a medium.
Incidentally, as part of its national strategy, China claims that ginseng is many times more superior to Korean ginseng, and supports vast fields of ginseng. This is an economic revitalization project for the underdeveloped and ethnically diverse Yunnan province.
By the way, when I looked into the origin of chili peppers, I found that there is a record that it dates back to 6000 BC in Mexico. A little respect for Mexican chili peppers would end this debate.
Tokyo Olympic Summit With the possibility that Suga's general election will be held in September, is Moon Jae In trying to shake up the situation by citing summit talks and participation in the Olympics?To put it bluntly, holding a summit between Japan and South Korea will only have disadvantages for Prime Minister Kan.Shigeru Ishiba, who has been considered a candidate for the next prime minister in last year's general election, was criticized by the people as a result of his appeal for reconciliation with China and South Korea.Prime Minister Suga probably does not want to get involved before the general election.
![[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)
