[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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Bella Poarch battle against Korean. It looks like you're still in a fight with the Filipinos. Koreans attacked Bella Poarch all at once, alleging that the tattoo of the selfie image that Bella Poarch surrendered to Instagram was reminiscent of the Rising Sun Flag. Bella Poarch, who once apologized, later said, "I can't afford to insult not only me but other Filipinos," and it seems to be heating up even more. The concern is that the Philippines is a gun society. The homicide rate is 25 times that of Japan. I heard that many Koreans study English in the Philippines, but is that okay? Are you trying to see if Korean common sense is universal?
The Japanese Navy is promoting military cooperation, such as dispatching destroyers and submarines to the waters of the Philippines and Japan's cooperation in the redevelopment of the former US Navy base. Do you think the Philippines will deny the Rising Sun Flag? Well, please do your best.
Anti - Korean sentiment in the world
When comparing data from the BBC on positive and negative impressions of Japan and South Korea, a surprising number of countries have a negative impression of South Korea (Reference wiki)
Japan has been at war with China in the past, so we can predict China's feelings towards Japan, but what exactly is South Korea like? Regarding China's sentiments toward South Korea, relations between China and South Korea deteriorated in 2016 when South Korea decided to deploy THAAD, but even if you look at domestic surveys conducted before then, it appears that China's reputation towards South Korea was quite unfavorable.
2007 "Xinhua News Agency" survey results: South Korea ranks first in "neighbors I don't like"
2007 “Tengai Community” survey results. ``Most hated country'' South Korea ranks first
2009 “Global Network” survey results. 94.6% of respondents said they did not have a favorable impression of South Korea.
It has long been pointed out that anti-Japanese campaigns around the world are a strategy to tarnish Japan's image, given that Japan and South Korea have similar industrial structures in the face of global competition.
But when you look at the data... In the first place, isn't the idea that one benefits by degrading others itself wrong?
What happened to hydrogen fluoride - South Korea claims to have overcome Japan, but what is its relationship with product defects?
Moon Jae-in wants to say we won against Japan
Japanese hydrogen fluoride has fewer impurities
Relationship between hydrogen fluoride and defective rate
Massive recalls in America
Kona EV burst into flames again
Don't worry about exploding cars
In his farewell address, former President Moon Jae-in said that all people came together to overcome the crisis caused by Japan's unfair export restrictions. However, looking at the data, of the three export control items, hydrogen fluoride has decreased by 86% compared to fiscal 2018, while other items such as photoresist and fluorinated polyimide have remained almost unchanged.
Former President Moon Jae-in has loudly declared that hydrogen fluoride has been successfully domestically produced, but regarding the quality of hydrogen fluoride, it is Japan's hydrogen fluoride is 12N (99.9999999999%). There is talk that hydrogen fluoride, which is said to have been developed by Korea's LG Chem, may be 5N. ~N is the number 9, and 12N is 12×9. In other words, Japan's hydrogen fluoride has as few impurities as 12 nines in a row.
Hydrogen fluoride is used to clean machines and processes used in precision machinery manufacturing. What happens when there are many impurities here is an increase in the product defect rate. What about the defective rate of Korean products? Whether it went up or down, if there is no change, then whether it is 12N or not has little meaning.
On August 20, 2021, the US automobile giant General Motors (GM) expanded the scope of the recall due to the risk of fire in the battery pack installed in the electric vehicle (EV) “Chevrolet Bolt EV”. announcement. As a result of this announcement, all models of the Chevrolet Bolt EV released so far are subject to a recall. The battery manufacturer for this car is LG Chem.
In January 2022, another fire occurred in the Kona EV, in which Hyundai Motors had replaced the battery due to a recall after a series of battery fires. A fire broke out while the vehicle was running and was completely destroyed. According to Korean media, internet communities, and fire authorities, a fire accident occurred in a Kona EV that was traveling on Taean Road in South Chungcheong Province at around 6:46 pm on the 11th. The accident vehicle was a 2020 model, and the battery had been replaced due to a recall in September last year.
The explosion of lithium-ion batteries was a hot topic in the past when a Sumsung smartphone exploded into flames, but now that EV cars are being developed, the large batteries used to drive the car explode and burst into flames in the blink of an eye. It is unclear whether it has anything to do with hydrogen fluoride, but there is even a rumor that some Japanese-made hydrogen fluoride is being imported from China.
It would be surprising if they were going to such lengths to protect the country's face-to-face contact, but we should continue to pay close attention to defective products from South Korea.
South Korean Foreign Minister Park Jin strives to resolve the forced labor and comfort women issue - What does the Korean economy, where the won continues to be weak, demand from Japan?
South Korean Ministry of Foreign Affairs is extremely knowledgeable
South Korea is keen on repairing Japan-Korea relations
Korea's diplomatic techniques that you can't let your guard down
True feelings about getting close to Japan
Excited about swapping
To what extent will the Japan-Korea issue be resolved
Clarify what relationship improvement means
Special treatment is over
South Korean Foreign Minister Park, who is visiting Japan, emphasized that regarding the issue of labor recruitment lawsuits, ``We are making efforts within South Korea to find a desirable solution before cashing out,'' and added, ``The Japanese side also responded with a sincere response.'' I would appreciate it if you could give me that."
Mr. Nukaga, who met with him after the meeting, told reporters that he "intended to respect" the 2015 comfort women agreement that confirmed the "final and irreversible resolution" of the comfort women issue. I made it.
The current Yun Seok-Yue administration appears to be eager to repair relations with Japan. Before he took office as president, he sent a delegation of members of Congress to express his sincerity, and after taking office, the Minister of Foreign Affairs has shown an attitude of fully accepting the intentions of the Japanese side. But don't let your guard down.
The South Korean government's approach so far has been to extract some kind of concession from Japan, take it as a diplomatic credit, and then try to make a temporary move, and the pattern is to come back to it again and again.
Japan should negotiate without losing its stance that there is nothing Japan can do. In reality, the issue of post-war compensation has already been resolved in all agreements between Japan and South Korea.
The Korean won continues to be at a low price with no signs of rising. Due to the impact of interest rate hikes and the Bank of Korea trying to recover the won spent during the coronavirus pandemic, corporate investment will slow down. Since the won is not depreciating as sharply as before, it seems that the price is not falling off a cliff and is managing to cope even with the price dropping to around 1,300 won.
The US Federal Reserve has also begun withdrawing dollars from the market and raising interest rates. The Korean government wants to carry out another swap and looks at the American expression, but its expression remains firm. That's why it's Japan. I would like to somehow conclude a swap with the key currency to provide peace of mind.
Although South Korea has experienced economic growth, its industrial structure is a chaebol economy that generates profits through processing trade through bulk purchases and bulk sales, so domestic demand never grows, and it is greatly affected by exchange rate fluctuations. The national debt is increasing, household debt has exceeded GDP, and land prices in Seoul continue to soar, making it difficult to see when they will rebound. There is nothing wrong with the fact that Won is vulnerable.
The Japan-Korea issue is not just about the forced labor issue or the comfort women issue. In addition to the Takeshima issue, South Korea has broken all of the agreements that Japan and South Korea have concluded to date. The Japan-Korea joint declaration was left blank. The issue of excluding countries from the White List stems from concerns about the transfer of funds to North Korea and third countries.
Just because the issue of forced labor, which is about to be turned into cash, and the issue of comfort women, where statues of comfort women are being erected all over the world, are recent issues, it is normalization because these two issues have been resolved. Would you? In the first place, when South Korea refers to normalization, it means that they want to go back to the days when they were given special treatment.
Why did South Korea become a white country? Why did Japan do swaps during two economic collapses? This is only because Korea was given special treatment. It should be made clear that there will never again be a time when relations are treated as special even though they have been normalized.
Taiwan and South Korea, which have experienced Japanese rule, will continue in parallel forever.
Parallel worlds are hypotheses in science fiction and quantum mechanics, not proven stories.However, if you look at the difference between Taiwan and Korea, it looks like a parallel world.At some point in the parallel world, two pasts are born.The branches do not intersect, but are positively parallel worlds that will last forever.
Taiwan was incorporated into Japan after the Sino-Japanese War and came under Japanese rule.It lasted 50 years from 1895 to 1945, longer than the Korean Peninsula.The annexation of Japan and South Korea lasted from 1910 to 1945.Taiwan continues to thank Japan for its development under Japanese rule, saying, "Taiwan's national character and independence have been learned from Japan."In the wake of the Great East Japan Earthquake, it was also the world's largest donor country.
It is said that South Korea was trampled down by Japan, Japanese comfort woman was used as sexual slavery, and recruiters were like slaves, and most of the Koreans were slaughtered by Japan.There are two worlds, the past.In this sense, Taiwan, the world's leading pro-Japanese country, and Korea, the world's leading anti-Japanese country, have emerged.The parallel world is now underway in East Asia.Of course, Japan is in the same space-time as Taiwan.Does this mean that space and time do not intersect?
Korea criticizes Japan for not learning history, but many countries in Asia appreciate Japanese rule.
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