Friday, December 5, 2008

Thais` `Amazing Seven Wonders`







On the occasion of the National Day, the Tourism Authority of Thailand would like to take this opportunity to inform you that the Kingdom of Thailand and Republic of Korea have had a very close bilateral relationship especially in travel and tourism industry. Thai people are getting more interested in Korean culture and a lot of Korean people visit Thailand which has shown a tourism increase. In this regards, the two-way traffic has shown an important meaning especially for this year between our two countries.

TAT has launched the theme of campaign "Amazing Thailand 7 Wonders," which touches on important details pertaining to this year highlighted products as well as recent updated of Thailand`s new tourism product to re-classify our tourism destinations into seven categories to create clear segmentation and enhance the marketing reach to consumers. Those 7 wonders express Thailand as you can have an experience Thai life style `Thainess,` Affluent culture stands for `Treasure,` the emerald colors water and peaceful beaches stands for `Beaches,` experience the beauty of Thai pure nature stands for `Nature,` Thai traditional health care and beauty treatment stands for `Health & Wellness,` you can meet trendy and modern style in Thailand stands for `Trends` and lastly various of festivals and interesting events stands for `Festivities` and so on.

Also, in terms of destination development, we have categorized the country into 14 tourism development clusters. For example, many potential attractions, especiallyin the North and Northeast, are unique and highly promising, thanks to their historical, cultural, as well as natural significance such as Chiang Mai, Chiang Rai, and I-san. Southern Thailand, meanwhile, is renowned for its scenic sandy beaches and marine attractions such as Koh Samui, Phuket, and Krabi.

With variety destinations and products, Thai always welcome you to be our guests with pleasant experience and memories in Thailand. Please come and enjoy your completely satisfying stay with us.

By Walailak Noypayak Director, Tourism Authority of Thailand, Seoul Office






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Thursday, December 4, 2008

President Unveils Plan to Boost Youth Employment





President Lee Myung-bak


By Michael Ha

Staff Reporter

President Lee Myung-bak laid out new plans Monday to help the country's youth in the tight job market.

The plans include an internship program allowing young jobseekers to gain experience in government offices and small businesses, while looking for permanent employment; a 750-billion-won ($514 million) budget to develop workers in new and emerging industries; and a finance program to help university graduates who suffer from low credit rating because of their inability to pay back tuition loans.

In his biweekly radio address, the President also said that his administration would help up to 100,000 young jobseekers spend time abroad for professional training and volunteer services over the next five years.

The administration will also expand ``working holiday'' programs. Currently, Korea has work-and-travel agreements with Japan, Canada, New Zealand, Australia and France and they can include up to 30,000 young people every year. President Lee said he would expand these programs to include eight additional countries and make them available to some 60,000 every year.

He said he will quickly put into motion the ``WEST'' program - ``Work, English Study and Travel'' an agreement signed in August allowing some 5,000 young Koreans to enter the United States every year on 18-month visas.

Lee also advised jobseekers to consider working for small-and medium-sized companies and in rural areas. He said, ``We hear that some young jobseekers will accept temporary, non-staff jobs but that they won't look at opportunities in small regional companies. That is not an ideal attitude for them to have.''

``Honestly my heart sinks when I think about the youth unemployment. The tight job market for them brings pain not just to these young jobseekers but also to our families and indeed all Koreans. It's a big concern for our country,'' President Lee said.

But he added it's not just young Koreans who are having a hard time finding good jobs. ``The high unemployment rate among the young is not a unique phenomenon that's limited to Korea,'' Lee said. ``Korea's youth unemployment rate stands at 7 percent. Many developed countries have a youth unemployment rate that is higher than 10 percent.''

Lee urged young jobseekers to be ``courageous and start working somewhere.'' He said ``blaming the job market and just waiting for an ideal, comfortable job is not the solution.''

``That's what I did too. When I started at Hyundai Engineering and Construction, it was just a small business with just 90 employees at the time. When I first started at the company, they sent me to an overseas construction site,'' Lee recalled. ``It was difficult work. But I also gained valuable experience that no money could buy. My experience during those early years helped me in my career.''

He said, ``We are facing a once-in-a-lifetime kind of global economic crisis. Jobseekers shouldn't just passively wait for their ideal employers.''






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Portugal to Bolster Tourism Marketing in Korea





Secretary of State for Tourism Bernardo Trindade


By Kim Se-jeong

Staff Reporter

Portuguese tourism authorities are trying to turn a crisis into an opportunity.

Portuguese Secretary of State for Tourism Bernardo Trindade stopped by Korea early last week for a one-day visit in an attempt to "sell Portuguese tourism."

Trindade told The Korea Times, "Despite economic crisis, we think it's time to expand our portfolio concerning some new markets."

The Portuguese official acknowledged that with economic development, Asian countries, including Korea, have become targets of Portuguese tourism.

He took a positive note of a number of Korean tourists to Portugal. Twenty thousand Koreans travel to Portugal annually, and it's good start, he said.

The deputy secretary said Portugal has a lot to offer, distinguishing it from other European countries.

Then he suggested a golf tour, religious tourism in Fatima, heritage and modernity in Lisbon and beaches along the coast.

Portugal is on the western tip of the European continent. With the Mediterranean Sea separating it from Africa, the country has maintained cultural diversity, which the official referred to as one of its strongest points.

Trindade said Portugal is shifting to the unknown in terms of tourism and will more actively promote projects in the region.

The current tourism office, overlooked by a Korean businessman, will soon be filled with staff members dispatched from Lisbon and with more diverse and accurate information for prospective tourists.

He acknowledged one could only fly to Portugal from Korea with stops in Madrid, Frankfurt or Paris. Yet, he was optimistic that orchestrated efforts by governments would eventually make direct flights possible.






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Unchain Africa's Melodies







By Alec van Gelder and Mark Schultz

The worst piracy in Africa is not in boats off Somalia: copies of drugs, movies and music hurt African economies even more. Western businesses may complain the loudest but sub-Saharan Africa's own musicians have even more to gain from clamping down on rip-offs.

Senegal, for example, has been a trading hub for centuries, where different languages and ethnic groups have contributed to a rich cultural landscape with, as the travel guides say, music everywhere.

The World Bank's recent Africa Music Project study said just ``a dozen'' of more than 30,000 musicians in Dakar achieve any success abroad, despite huge popularity at home.

The average Senegalese musician is even poorer than the average Senegalese on less than $800 a year. This passion and determination should be allowed to bear fruit but, for every international celebrity such as Youssou N'Dour, thousands live in destitution at home.

Unfortunately, many African creative talents share Senegal's problem and, apart from a few pockets of commercial success, their talent is wasted. Where it is allowed to flourish it yields big benefits: creative sectors contribute over 11 percent to GDP in the world's wealthiest countries. In Africa, they barely account for anything.

Piracy is the most visible barrier to success. In some West African countries, pirated music dominates as much as 90 percent of the market. No African country has restricted pirated music to less than a destructive 25 percent of the market.

Western music may be popular and widely copied but it is local musicians whose livelihood is blighted by the failure to stop rip-offs: for example, of all the Tanzanian music sold in Kenya, most is pirated and only two Tanzanian musicians get income from it.

But piracy explains only part of the problem. Recording companies underpay musicians and renege on agreements; radio stations fail to pay licence fees for tunes they air; governments impose special taxes on live performances; most royalties agencies are state-owned (as in Kenya) or politically influenced: musicians get the worst deal in music.

It should be no surprise, then, that most commercial African music is recorded and produced in London or Paris. High piracy and ineffective licensing are the symptoms. The lack of copyright enforcement is the disease, caused by failed civil and criminal legal systems.

Failure to enforce copyright protection renders worthless the only assets artists own. Making money from their craft becomes a pipe dream and the incentives to invest in musicians disappear. This failure has destroyed once-celebrated music industries in Ghana, Senegal, Mali and elsewhere.

A surprising source of inspiration comes from Nashville in the United States. Early 20th century policymakers pinned Nashville's economic hopes on industrial development, based on access to raw materials and large government-funded projects. These hopes were never fully realized but Nashville found success anyway, thanks to music.

Nashville could never have succeeded without the region's rich musical heritage. But a stable legal environment, and copyright in particular, was essential to turning barely-known talent into a marketable product.

Copyright protected the investment by Ralph Peer, the architect of the pioneering Bristol Sessions in 1927, and it protected the rights of the Nashville musicians who recorded what became the first nationwide country hits ― and all who followed.

Nashville's multi-billion-dollar country music industry has spawned development in many other sectors too, making it one of America's most vibrant cities.

This success can be copied. After collapsing in the 1990s, Zambia's music industry has turned itself around. First came the new copyright law. Then, in 1999, a new Zambian record label, Mondo Music Records, sparked the revival.

Much like Ralph Peer in Nashville, Mondo's founder Chisha Folotiya showed the way for other entrepreneurs and creators, unleashing what he calls ``exponential growth in the amount of Zambian music being produced in the last seven years, and also in the consumption and the appreciation of it.''

``We want Zambian music to contribute toward the economic development of our country,'' he adds.

Encouragingly, Africa's musicians are already one step ahead of Nashville's folk-singers before their commercial success: African music is already hugely appreciated elsewhere. But without a legal environment that enforces copyrights and contracts, Africans' creativity is not protected and cannot contribute to economic development.

For example, John Collins of the School of Performing Arts in Ghana estimates the Ghanaian music industry alone could generate $53 million a year from foreign sales if local conditions supported creativity.

Nigeria's creative industries could generate about $4 billion annually, information and communications minister John Odey said this month ― but only if intellectual property rights are enforced, Copyright Commission chief Adebambo Adewopo added.

Only South Africa has a strong music business, with internationally-known musicians such as Hugh Masekela, the late Miriam Makeba, Ladysmith Black Mambazo, Ray Phiri, and the Soweto Gospel Choir ― not least because they have sound intellectual property rights.

Any country can benefit from that potential by allowing it to flourish. Creators are also entrepreneurs, even if they are playing for tips in bars, and, like businesses everywhere else, these entrepreneurs need economic freedom.

These economic rights and freedoms are essential to the whole economy, as South Korea or Taiwan have demonstrated by moving so powerfully away from imitation to innovation.

Unless legal systems empower creative talents by protecting their intellectual property, Africa's musicians will continue to head abroad, taking with them the sounds, the entertainment and their money too.

Mark Schultz is an assistant professor, Southern Illinois University School of Law. Alec van Gelder works at International Policy Network (IPN), a London-based development think tank. Their forthcoming study ``Nashville in Africa" was launched in South Africa on Nov. 26.






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Record current account surplus







Korea posted the largest-ever current account surplus in October on declining imports and less overseas travel.

The Bank of Korea said yesterday that the surplus reached $4.91 billion, after a deficit of $1.35 billion in September. It was the biggest monthly amount since it started compiling data in 1980 and a turnaround from straight months of deficits. Korea now has accumulated a deficit of $9 billion.

It is a "stunning improvement," said Patrick Bennett, a Hong Kong-based currency strategist at Societe Generale.

"But further record surpluses are not anticipated as imports should stabilize but exports continue to slow," he said.

A sharp decline in imports, driven by lower prices of oil and raw materials, has helped the country to report a record current account surplus, said Yang Jae-ryong, head of the central bank`s balance of payments statistics team.

"The deficit on the services account narrowed a lot as overseas travel shrank because of the local currency`s weakness against the dollar," he added.

In November, the country is likely to post a surplus of around $1 billion, the Finance Ministry said yesterday.

The current account is the broadest measure of trade, tracking goods, services and investment income.

A surplus means more funds flowing into the country than going out, which should help ease a shortage of dollars gripping local banks, providing some relief to the beleaguered won.

The Korean won gained ground against the dollar yesterday, on the positive data and the BOK`s plan to receive $4 billion from the Federal Reserve. It closed 0.14 percent higher at 1,476 won per dollar.

The goods account swung to a surplus of $2.79 billion in October, from a deficit of $890 million the previous month, central bank data showed.

A shortfall in the service account, which includes Korean spending on overseas trips, narrowed to $50 million last month from 1.24 billion in September.

The deficit on the capital account, which tracks cross-border investments, widened to a record $25.53 billion, compared with a net outflow of $4.78 billion a month earlier, as local lenders repaid part of their foreign loans.

By Lee Sun-young

(milaya@heraldm.com)






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'Korea to Post Current Account Surplus in 2009'





Strategy and Finance Minister Kang Man-soo


By Lee Hyo-sik

Staff Reporter

Korea's top economic policymaker said Friday that the nation will post a current account surplus next year, as a weaker won enhances the price competitiveness of domestic goods overseas, boosting outbound shipments.

Falling oil and other raw material prices are also expected to help the world's 13th largest economy improve its international balance of payments, with fewer Koreans heading overseas on the weak local currency and stagnant income amid worsening economic conditions.

Strategy and Finance Minister Kang Man-soo said the nation's current account balance will turn to a surplus next year from this year's estimated $10 billion deficit. ``We will continue to post a surplus in the current account in 2009. The improving travel account balance will play a key role in converting the current account balance into the black,'' he said.

The surplus brought the cumulative deficit for the year until October to $9.01 billion, compared with a surplus of $5.26 billion a year earlier, according to the Bank of Korea (BOK).

Kang also projected that Korea will post over a $1 billion surplus in November and December, following October's record-high. The current account surplus reached $4.91 billion last month, the largest since 1980, when the central bank began tracking data. It was a dramatic turnaround from a deficit of $1.35 billion in September.

With fewer outbound travelers and an increase in inbound tourists because of the weakened won, Korea's travel account recorded a $500 million surplus in October, compared with a $390 million shortfall a month earlier.

``To raise our international credibility, it is important to have currency swap arrangements with the U.S. and other countries and the nation should be able to borrow dollars from foreign institutions. But more important is to run a current account surplus, which is crucial to overcoming current economic difficulties facing the nation,'' Kang stressed.

He then said despite the current account surplus, the domestic foreign exchange market has remained volatile, as foreigners continue to sell local stocks and bonds, and take dollars out of the country in the wake of the ongoing global credit crunch.

The capital account, which tracks cross-border investments, posted a record high net outflow of $25.53 billion in October, as foreign investors sold off local stocks and Korean lenders repaid part of their foreign loans. The banking sector paid back $20.5 billion of short-term debt after increasing debt for four straight months.

``We expect the unfolding financial and economic crisis to last longer than initially thought. The government will take a series of unprecedented measures to effectively cope with it,'' the minister stressed.

Kang then stressed the nation should also prepare for the future, adding the government will make an all-out effort to train workers and generate jobs, particularly for the young.

``We will spend more than 4 trillion won out of the 10 trillion won supplementary budget next year to construct roads and other infrastructure across the nation because we think creating jobs is the best and most effective welfare policy. It is also important to enhance Korea's growth potential,'' he said.






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[fn editorial] Shadow behind Korea’s record current account surplus







First and foremost, we welcome Korea’s highest-ever monthly current account surplus for October, which hit $4.91 billion. Korea thus has ended a three-month long current account deficit that lasted from July to September. The Bank of Korea expects the country will post around $1 billion in current account surplus in November as well. A surplus in the current account means Korea has had bigger dollar inflow than dollar outflow. Considering that the recent forex rate surge stemmed from a severe dollar shortage, a surplus in the currency account will effectively lessen the spiking exchange rate.

However, closer examination of what lay behind the record current account surplus reveals a shadow of a doubt. Korea was able to post a record surplus mainly due to a plunge in imports resulting from falling prices of international raw materials, including crude oil. The surplus was also buttressed by the reversal of the travel account deficit to a surplus for the first time in seven years due to declining overseas travels by Korean nationals. This in turn suggests that the current account surplus could reverse course again at anytime, depending on external factors.

The best measure Korea can seek to consolidate a surplus in its current account is to shore up exports. The Korean economy was able to overcome the Asian financial crisis through export 10 years ago. Unfortunately, however, the current situation is not favorable enough to allow Korea to elbow its way through the crisis by expanding export. Even if the country manages to sustain surpluses in the current account for November and December, it will almost certainly not post a current account surplus for the year in its entirety. Against this backdrop, if the trend of a current account surplus changes its course again, foreigners’ perspective on the Korean economy will turn more negative as well.

The situation is far from a favorable one, but the Korean economy has no way out other than the expansion of export. The government expects Korea will post $5.6 billion in trade deficit next year. However, it expects the country will sustain around $5 billion in current account surplus. Korea must redouble efforts to consolidate the trend of current account surpluses, irrespective of the variable of international oil prices, by reducing trade deficits through the development of niche and new markets. As such, the easing of financial crunches, including the normalization of trade financing, is urgently required.



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[출처 : 파이낸셜뉴스]

Overseas Card Spending Decreases in 54 Months







By Lee Hyo-sik

Staff Reporter

South Koreans' credit card spending in foreign countries dropped in the third quarter for the first time in 54 months, as the number of people heading overseas declined on the weak local currency and a slow rise in income amid worsening economic conditions.

With fewer outbound travelers and more inbound visitors, the nation's travel account in September posted its smallest deficit in 10 years, with October's account being widely projected to run a surplus.

According to the Bank of Korea (BOK) Thursday, Koreans spent $1.85 billion abroad during the July-September period, down 1.4 percent from the previous quarter. It marks the first quarter-on-quarter decrease since the first three months of 2004, when overseas card spending fell 7.9 percent, following the credit card bubble burst.

Those who purchased goods and services using credit and debit cards in foreign countries were fewer by 1 percent, to 2.48 million in the third quarter from the previous quarter, while per-capita card spending came to $745, down 0.3 percent.

``The number of outbound travelers decreased sharply, as local households are grappling with rising debts and falling income growth in the wake of the ongoing financial market turmoil and the economic downturn. Additionally, the falling won against the dollar and the yen forced Koreans to stay here rather than go overseas and spend money,'' a BOK official said.

The number of outbound tourists dropped 14 percent to 3.12 million in the third quarter from 3.62 million a year ago, according to the Korea Tourism Organization (KTO). The won has weakened more than 37 percent against the greenback this year, making overseas travel more expensive.

Foreigners' card spending here also dropped 2.8 percent to $560 million during the July to September period from a quarter earlier, despite an increase in the number of incoming foreign visitors. The number of foreigners using cards at least once to buy goods and services rose 1.7 percent to 1.16 million but their average spending declined 4.4 percent to $480.

With fewer outbound travelers and an increase in inbound tourists because of the weakened won, Korea's travel account is expected to record a surplus in October.

The central bank said the account posted a $60 million shortfall in September, the lowest since 1998, as Koreans spent a total of $840 million in foreign countries, while foreigners spent $780 million here.

The number of outbound travelers dropped 19.4 percent to 1.02 million in September from a year ago, while 588,000 foreign tourists visited the country, up 5.4 percent, according to the KTO.

A KTO official said as the number of Koreans going abroad also fell last month and the opposite is true for foreign visitors, the nation may have posted a travel account surplus in October, adding if the trend continues, Korea may post an account surplus next year.






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Fight against AIDS hopes to turn corner







This weekend is being described as a precedent-setting one for AIDS awareness in Korea.

The campaign breaks from tradition in that it puts education at the fore. Another major change is that this year`s events aim to take on social stigmas surrounding HIV/AIDS.

A series of concerts this Saturday night, dubbed "Rubber Seoul," will raise money for the prevention and awareness of the disease. Taking place at four venues, Rubber Seoul features an even split between Korean and expat bands. The expat bands performing are some of the most well-known in the country and all money raised will be donated to two charities.

Organizers said this year`s education campaign highlights their effort to dispel misconceptions surrounding AIDS. The Korean youth organization CLIP, using their nation-wide network on college campuses, was a major factor in setting up the series of lectures. A nurse that works with HIV/AIDS patients will lecture on a major theme this year - discrimination - while an AIDS patient will speak this Saturday afternoon at Hongik University.

"One of the things we`re hoping for is people see she is an average person. There is nothing strange about her. She is a normal person that just happens to have this disease. We`re hoping to make it a little more human and comfortable for people," said the coordinator.

What is clear, say organizers, is those infected in Korea face a stinging social stigma that doesn`t afford them the ability to lead any sort of normal existence.

A lack of public understanding of the disease and what some describe as repressive government policies prevent a reasonable level of acceptance for those infected. The law most frequently criticized is the 1987 Disease Prevention Law, which its boisterous opponents claim practically put patients under the control of the state.

But in a significant shift toward a more pragmatic approach, the government recently amended the law to allow for anonymous testing.

A dearth of appropriate media attention has been targeted as another reason for the lack of public understanding.

"In general, (HIV/AIDS) gets very little attention. There is a lot of stigma and discrimination against the disease. That being said, we did have quite a bit of coverage last Saturday. The issue is going to be brought more into the public now that Ban Ki-moon is the leader of the U.N., especially after his speech in Mexico," said Jess O`Kelly, chief event organizer for the Korean Commission for World AIDS Day.

When U.N. Secretary-General Ban Ki-moon weighed in on the issue over the summer, it caused a lot of people here to take notice.

"I call for the change in laws that uphold stigma and discrimination," he said, "including restrictions on travel for people living with HIV."

He singled out Korea and the only other 11 countries in the U.N. that impose travel restrictions on HIV/AIDS patents: Armenia, Colombia, Iraq, Oman, Qatar, Russia, Saudi Arabia, Solomon Islands, Sudan, the United States and Yemen.

Statistics demonstrate the stigma surrounding HIV/AIDS in Korea. According to a National Human Rights Commission report, suicide is the leading cause of death of those who are HIV positive. The 2005 report said the suicide rate for this segment of the population is ten times the national average.

Jess O`Kelly stopped short of calling this year`s World AIDS Day in Korea a watershed year, but she said it is precedent setting.

"The door is opening. There is more room for (HIV/AIDS) to begin to be spoken about. It`s turning a corner, creeping out of the shadows."

The official World AIDS Day was on Dec. 1.

The Korean Commission for World AIDS Day, one of the most active groups taking part in World AIDS Day in the country, hopes the lectures, which started last weekend and will conclude this Saturday afternoon, will go a long way in raising awareness.

Organizers said there is an unprecedented level of cooperation between Koreans and expats. Their goal this year was to raise participation to make it 50/50 between Korean and foreign volunteers.

"It all began when we started the Korean Commission for World HIV/Aids Day. On the commission there are seven Koreans and three foreigners. We got a lot of support from Korean groups, which was really good. It has really helped us to reach out to Koreans in terms of education and into Korean newspapers and blogs."

O`Kelly said this year`s World AIDS Day has been expanded greatly from last year. "Last year it was one club, it was geared predominantly toward foreigners and it was a fundraising event for Little Travellers. What we did this year is we expanded it to include education. We have four venues now, and we have Korean and foreign bands at the venues.

"We also understand how important it is in Korea to expand education because of discrimination towards people who have the disease," she said.

O`Kelly essentially brought together Little Travellers Korea, Grassroots Uganda and the newly created Korean Commission for World AIDS Day.

Little Travellers Korea (www.littletravellers.net/korea) is a charity that raises money for South Africans affected by HIV/AIDS and Grassroots Uganda (www.grassrootsuganda.com) is an organization of women making a living by selling coiled pieces of colorful paper to make jewelry.

Craig Kulyk, who heads up Little Travellers, said the group`s mission is to increase awareness of HIV/AIDS in Korea, while supporting families affected by the disease in South Africa.

"How we do that is we sell these cute little pins made by South African women affected by HIV/AIDS. When someone buys one, 40 percent goes directly to the approximately 100 women who make the pins and 60 percent goes to Hillcrest AIDS Center in South Africa."

Kulyk said this year`s World AIDS Day has been greatly expanded. "This year is definitely a lot larger in scale. Last year we had one fundraiser in one location. We raised about 1.5 million won," he said. "But this time around there are a lot more people and organizations involved. We`re expecting around a thousand people, so we could raise between 6 million to 10 million won."

Event organizers admit that while everyone cares about AIDS, it can be challenging to spur people into taking action. "We`ve been doing this for about a year and last year it was slow moving. But with this event right now, we have been overwhelmed from Koreans and foreigners - which helps out with the cause," said Kulyk.

O`Kelly said breaking through public apathy is one of her biggest challenges.

"It`s extremely difficult for various reasons. People feel, `oh I already know about AIDS` but they are not taking the next step by getting tested, using condoms and are still not accepting that it could happen to anyone.

"As educated as a lot of people are, it`s still easier to think of it as a disease that affects someone else. Even if you are in Africa, you pick a different group it affects; if you`re homosexual, you pick a different group it affects; if you heterosexual, you pick a different group it affects. But it affects everyone," she said.

Major barrier broken

It wasn`t until this year that the Korean government became part of the solution, instead of part of the problem.

The most significant barrier that had been stifling the fight against AIDS in Korea was the aforementioned 1987 Disease Prevention Law, initiated under the Chun Doo-hwan government. The law stipulated all HIV positive cases be reported to the government. Anonymity was not protected by law, thus the government could legally publicize the names of those reported to be infected to the media and employers.

Because of the law it is believed that many people who should have been tested for HIV did not get tested at all, fearing public persecution. And since cases of HIV were going untreated, statistics for HIV/AIDS in Korea from 1987 until the law was amended this year can not be considered even remotely accurate.

According to Park Yong-hyun, spokesman for the Ministry of Health, Welfare and Family Affairs, the law was amended slightly on March 21 this year in the National Assembly, taking effect on Sept. 20.

The amendment stripped HIV testing centers of the requirement to report names and addresses of those that test positive for HIV, marking a major breakthrough in the fight against AIDS in this country.

"It is allowed by the law for testers to not reveal their names or addresses," Park said in a telephone interview. "They could also use a fake name."

The Ministry of Health, Welfare and Family Affairs spokesman said government officials will only be informed of the number of people infected with HIV by each medical facility.

He added that there are 68 designated HIV testing centers around Korea, but people are free to seek out testing at other institutions.

Critics had lambasted the 1987 law as out-of-date. Kim Eun-woo from The Korean Commission for World AIDS Day says such a law drove the disease underground, making treatment inaccessible and causing the disease to spread uncontrollably.

"It makes people hide. They won`t get tested if it will be reported to the government. And if you don`t know you have HIV, you will spread the disease, whereas if you know you have it, you will be more careful."

Kim also mentioned another law allowing for an employer`s right to know about positive HIV tests.

"There is another law that allows for employers` right to know about the results," if they mandate the checkup. "And if a person suspects he/she has AIDS, they would be afraid to get a checkup."

She recommends seeking HIV testing independently from your employer.

Until this year, there was no anonymous HIV testing in Korea at all.

"Until this year all results had to be turned in to the government. Results were then turned in to employers because most people are part of the national pension plan," said O`Kelly.

She said that most people still resign from their jobs because of the social stigma attached to HIV/AIDS combined with pressure from employers. The government had been reporting positive cases to employers, although it`s unclear if this practice has continued since the amendment to the 1987 law.

O`Kelly cautions against getting tested at the designated HIV testing centers because she says they aren`t fully aware of the amendment to the 1987 law and might still report names to the government.

"Now you can get tested anonymously. But most medical facilities are not aware that the law changed."

Even though there is confusion over whether testing centers report cases to the government, it is believed that some still do. O`Kelly recommends going to the Korea HIV/AIDS Prevention and Support Center (www.khap.org), because, as she said, "they do anonymous testing and counseling," and don`t report positive tests to the government.

The Korea HIV/AIDS Prevention and Support Center provides services in Chinese, English, Korean, Mongolian, Tagalog, Thai and Vietnamese. For Koreans, the organization is known as the Korea UNAIDS Information and Support Center.

"With the continually increasing numbers of foreign people living and working in Korea, KUISC soon took on a second though equally crucial mission of providing resources about HIV/AIDS to the foreign population in Korea. Thus, with support from KFAP and the Korean Government, KUISC opened an office in Itaewon in 2003 in order to provide HIV/AIDS testing, counseling and information to foreigners," reads the KHAP`s website.

As a foreigner, dealing with HIV/AIDS can be a devastating scenario.

"One of the things most of us foreigners know, that is if a foreigner is found to have HIV, they are kicked out of the country. And tourists with HIV are not allowed in the country," said O`Kelly.

Jess O`Kelly is an American from California who has been in Korea for five years.

She said next year the Korean Commission for World AIDS Day is hoping to add to the number of educational lectures and take the campaign country-wide. And for the fundraising, she hopes the group can undertake a larger music festival approach, "something you find internationally," she said.

World AIDS Day was started by the United Nations 20 years ago to raise awareness and funds to fight HIV/AIDS and provide at least one day a year where the general public can really think about HIV/AIDS.

The music festival Rubber Seoul starts at 8:30 p.m. on Dec. 6 at Janes Groove, 10 p.m. at Sensation, 9 p.m. at FF and 10:30 p.m. at DGBD.

The lectures will take place on Dec. 6 starting at 2 p.m. in the Business School Building at Hongik University, Seoul. Session 1 (2 p.m. to 3 p.m.) will be lead by Lee Sang-yun, senior researcher at Health & Alternative Solutions. She will discuss human rights of people with HIV/AIDS. Session 2 (4 p.m. to 5:30 p.m.) will be lead by someone living with HIV and Lee Sang-mal, a nurse, who will discuss AIDS misconceptions and the reality of Koreans with HIV/AIDS.

For more information in Korean, see blog.naver.com/aidsday and for English go to facebook.com and search "Rubber Seoul."

By Matthew Lamers

(mattlamers@heraldm.com)






[출처 : 코리아헤럴드]

Korea posts record current account surplus





Korea’s current account surplus set an all-time high last month, hitting nearly $5 billion.

According to the “October trends of international account balance,” released by the Bank of Korea on Thursday, Korea recorded $4.91 billion in current account surplus. The figure is the highest ever monthly record since 1980, when the country began tallying the data.

The trade account turned to the black due to a significant drop in import resulting from a plunge in prices of raw materials, including crude oil, while the service account narrowed deficits due to declining overseas travel by nationals due to a hike in forex rates. The current account recorded $1.82 billion in surplus in June. But the balance turned to -$2.53 billion in July, -$4.7 billion in August, and -$1.35 billion in September, as the figure recorded deficits for three consecutive months. Cumulative current account deficits during this year’s January through October period came in at $9.01 billion.

The trade account turned from -$890 million in September to $2.79 billion in October. Both import and export growth slowed due to the aftereffects of the global economic slump, but Korea managed to post a trade surplus due to a plunge in import value stemming from falling prices of raw materials, including crude oil, the central bank said.

The service account deficit significantly narrowed from -$1.24 billion to -$50 million thanks to a surplus in travel account. The travel account turned to the black thanks to the weakening won and the falling trend of Korean nationals’ overseas travel, as the country posted a surplus in the travel account for the first time since April 2001.

In comparison, the net capital outflow widened from $4.78 billion in September to $25.53 billion in October.


By Hong Chang-ki, Lee Jae-won /ck7024@fnnews.com


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※ Copyrights ⓒ The Financial News. All rights reserved. This article may not be published, rewritten or redistributed.





[출처 : 파이낸셜뉴스]

[HERALD INTERVIEW]Portugal sells itself as all-year golf paradise







Known for its rich heritage and beautiful weather, Portugal is one of the selected stops when taking a trip to Europe.

But with the economic slump bogging down the tourism industry, Portugal is also seeing a decline in the number of incoming travelers, who mainly come from neighboring European countries.

To break the stalemate, the Portuguese government is going all out to maximize its tourism attractions and target emerging markets of Asia, namely Korea and China.

"Our main markets are located in Europe, taking up more than 90 percent. But those numbers are struggling a bit," said Portugal`s Secretary of State for Tourism Bernardo Trindade in an interview at the residence of the Portuguese ambassador in Seongbuk-dong, Seoul.

Trindade and his team of delegates were in the city Tuesday to meet with local tourism businesses to discuss ways of fostering Koreans` travel to the "friendly and warm" country.

Explaining that it is time for each country to expand their portfolio in time with the spreading economic crisis, Trindade said Korea was one of the largest Asian markets along with China and Japan. About 13 million Koreans are tallied to travel overseas. Approximately 50 million Chinese and 20 million Japanese go on overseas trips annually, he said.

"We had an excellent (tourism industry) in 2007. But we will face problems in 2009 and 2010," Trindade said.

"But tourism will never go away. You`ll have someone that travels. Tourism never ends."

Following this visit by the Portuguese government team, Portugal will begin promoting its country here next year, by arranging familiarization tours for travel agents and others, he explained.

"It will happen one at a time. We have the conditions to build the confidence between travel companies, airlines and others," Trindade said, pointing out that it is important to forge cooperation among businesses in bolstering tourism.

Portugal, located in southwestern Europe, is bordered by the Atlantic Ocean to the west and the south, and Spain to the north and the east.

Portugal has the 19th highest quality of life in the world, albeit with a small population of slightly more than 10 million.

And that is what Portugal shares with Korea, Trindade said.

"In terms of (comparatively small) population (in the region), when you talk of Korea integrated in this area concerning Japan and China, Portugal has probably the same feeling. But it`s a time to work together. So the challenges (we face) are the same," he said.

One of the biggest attractions, especially for Korean travelers, could be the spectacular all-year-round golf courses, he said.

"Portugal is the best destination for golfing, which I am sure is important for Koreans who enjoy golf very much," Trindade said.

With 3,000 hours of sunny weather in a year with mild temperatures, Portugal offers more than 70 golf courses located both on the mainland and on the islands of the Azores and Madeira.

The courses in the Algarve region were named as the "Best Golfing Destination in the World" by the International Association of Golf Tour Operators, Trindade explained.

One can also indulge in the religious and cultural journey by visiting Fatima city.

Fatima is famous for the events of 1917, when three peasant children claimed to have seen the "Virgin of Rosary." The shrine "Basilica" is one of the famous tours.

Large torch-light processions to honor the Virgin Mary are said to be an impressive event.

For more information on touring Portugal, visit www.visitportugal.com.

By Lee Joo-hee

(angiely@heraldm.com)






[출처 : 코리아헤럴드]

Students at SolBridge







My name is Alaine Brett, 24. I'm from the United States, and am currently studying for an MBA at the SolBridge International School of Business. I have lived in Daejeon for three months now. I love to travel and meet people, and learn about other cultures. Here I have the opportunity to do both, and also get a good education. The future of business is in Asia, and I'm excited to be in the middle of it here at SolBridge.

SolBridge is the only university in Asia that has an entirely international faculty with classes taught in English, allowing students from around the world to come together and learn from each other.

Other schools may offer the same course material in English, but the experiences that I have had here are unique to Korea and SolBridge. I don't know of any other university that offers the same.

While studying at SolBridge, I really enjoy having the chance to make friends from so many other countries. I have learned a lot about my friends from Pakistan, Indonesia, China, Mongolia, Uzbekistan, Nepal, Bangladesh, Taiwan, Indonesia, and Russia. The university shows consideration for all students by celebrating different holidays for each culture. Most recently, we had a Halloween and Dewali party, which was a great success and really fun.

Without SolBridge I would never have been able to meet so many people of different nationalities and get to know and appreciate their culture. In addition, SolBridge offers immersion week, which is a pivotal time in our studies. This activity is designed to integrate and build on the business concepts we've learned over the first half of the semester. In addition, keynote speakers are invited to the university to help guide us on relevant business topics. These are just a few of the many advantages SolBridge offers to students.

I am a scholarship student, and some of my friends are as well. SolBridge has been very generous in supporting my education here.

On campus, SolBridge offers the chance to join in clubs such as the Student Union, chess, dance lessons, various languages, peer groups, religious groups, and more. The most recent sports offered are soccer, badminton, volleyball, table tennis, and basketball. Next semester we hope to start a debate team and a formal Student Government, and maybe a swim team as well. SolBridge also offers many opportunities outside school to assimilate with the local culture and enjoy time with friends. Korean language learning courses are taught both in and outside the university for those who wish to immerse themselves. There are festivals nearly every weekend, and often transportation and meals are provided for students who wish to participate. My vision for the future is simple: I want to work in a good company here in Korea. With SolBridge to guide me, I can achieve this goal.

Studying abroad is an experience like no other because it broadens your mind to new people and ways of living. Westerners live their lives very differently from Koreans and I am learning to appreciate the exciting world outside my home country day by day. Communication is a daily challenge, which motivates me to learn to speak Korean with proficiency and help others to improve their English-speaking abilities. I find that living and mixing with new cultures has made me more understanding, more patient, and wiser.

petiteamerican@hotmail.com

My name is Paulus Thomas,24. I'm Indonesian. I chose to study at SolBridge, because of the lecturers they have. The lecturers are coming from famous and top universities around the world such as Harvard, Yale, Warwick and many more.

SolBridge uses English as its main language, so it isn't a problem for us to study here. What I love most is my experience in interacting with people from many countries around the world. I have met friends and also lecturers from other countries, and really have a wonderful chance to speak and work with them.

I'm joining the chess club at SolBridge and also church activities. After graduation, I'm planning to undertake Ph.D research. I hope I can get a scholarship to do that in the U.K. ― I know it's hard, but we'll see.

The main difference is of course the language used. But studying here, where English is used daily, has been improving my literacy, and also gives me the courage to give presentations in English, in a more professional manner.

paulus_thomas1984@yahoo.com

I'm Deng Tian Bai (Sabrina), 23, from Jiangsu, China. I'm an MBA student at SolBridge International School of Business. Since completing my bachelor degree at Yangzhou University in China, I have been here for a-year-and-a-half. Next year I'll graduate.

I came here initially because of the partnership between my precious university and SolBridge and the faculty here comes from world top universities like Harvard, Yale, University of Tokyo, and Brown University. They have very distinguished academic backgrounds as well as practical international business experience. Their extensive networks with different industries and organizations may provide much more valuable opportunities for my future career.

Most exciting of all is mixing with so different faces here. At other universities it's not very easy to make friends with students from roughly 14 countries such as U.S., Russia, China, Indonesia and Mongolia. At SolBridge, we get familiar with different cultures and build up our international friendship, which is also very important in our increasingly global world.

Another difference between SolBridge and other business schools is our "case-study" model within the background of the international general economy and Asian-specific business. Because most of us come from Asian countries, we really feel that the practical study of Asian business is very helpful since we can easily apply it to ``real world'' situations.

I'm so impressed by our faculties. I never really knew academic spirit until I came here. From my professors, I can see very clearly they are always in the pursuit of academic achievements. They are always teaching us with passion, helping us with our studies and are the strictest professors I have ever seem. But I really appreciate them for their teaching style and personality.

I not only receive a world-class business education from them, but my character is enriched by their encouragement. These days I'm unsure if I should pursue a Ph.D. My professors have really helped and encouraged me to take the challenge. I'm very impressed with and thankful to them.

SolBridge provides full and half scholarships to those who work hard and perform well academically. In my case, I got a two-year scholarship and part-time job at SolBridge assisting the Asian institute and Chinese marketing team, helping to cultivate my communicational skills and problem-solving ability.

The Asian institute brings together scholars and practitioners from around the world to engage in critical issues in business, policy and international cooperation, especially between Korea and other countries. In my free time, I interview important people from Korean institutes and companies, write articles about them, try to link them to counterparts all over the world and build up an international network.

I'm preparing to apply for a Ph.D program in Hong Kong or the U.S. since I want to be a successful and respected professor, just like my professors.

In China, we are focusing on theoretical, rather than hand-on, skills, which sometimes seem less practical for students. Many graduates with high advanced degrees can still not compete in the job market because there is a wide gap between their knowledge and real business situations. No employers want to waste training costs on employees who bring no benefits to their organization. But in SolBridge, our regular internship and projects immerse us in the "real world", giving us enough confidence to win in the job market.

Another benefit is learning responsibility. This is my first time away from my hometown and parents. For the first several weeks, I could not get used to living by myself and was homesick often. But now, I'm confident in arranging everything on my own. I've learned to cook, communicate with different people and make decisions. Yes, now I feel I have grown up a great deal for having studied abroad.

dengtianbai@hotmail.com






[출처 : 코리아타임스]

Air France KLM Geared to Maintain Leadership





Herve Moulin, Air France KLM's general manager for Korea, says the carrier has been the No. 1 European airline here for the last 25 years and will maintain the position with quality services. / Courtesy of Air France KL


By Kim Rahn

Staff Reporter

Air France KLM has positioned itself as the first European carrier in the Korean market for the last 25 years of its operation here, and sees more potential in the market despite the current worldwide economic slowdown.

Herve Moulin, Air France KLM's general manager for Korea, recognized Korea as a growing and quickly maturing market, having evaluated more than two decades of change.

Moulin was appointed to the Seoul office in August. Despite his short stay here, Korea is not a new market to him, as he was posted as sales director for the Asia Pacific region between 1998 and 2000 and as sales and marketing director for Tokyo from 2000 to 2004.

Change in Korean Market

He said the Korean aviation market has grown and changed a lot in the last decade.

``If you see the evolution of airlines flying to Europe, every year you have a lot of capacity added on the routes between Seoul and Europe, not only by Air France KLM but also by other carriers. The Korean market is very dynamic and competitive,'' Moulin said.

Air France KLM was the first European carrier to operate in Korea. Air France began cargo service in 1973 and passenger service in 1983, marking the 25th year of passenger operations this year. KLM was formed in 1984 and Air France acquired the Dutch carrier in 2004.

``When we came 25 years ago, the market was not at all the same size as now. There has been quite a strong escalation since the Olympic Games in 1988 and the number of travelers has grown,'' Moulin said.

``It has gone from a regulated market to a more liberal one. We make business in Korea like anywhere in the world. The maturity of the market has also come from that of a growing country we needed to explore to that of a matured one,'' the 45-year-old said.

The number of French corporations investing in Korea has also increased, and is now almost 180.

``The main evolution is Korean people's way of traveling. In the past it was mostly group travelers, making quick tours. Now the tours are on a more and more individual basis. People also have e-tickets now,'' said the aviation expert with a 19 year career.

No. 1 European Carrier Here

Back in 1983, the airline operated two weekly flights via Tokyo. Now it runs three daily flights _ one between Seoul and Paris by Air France; one on the same route via Korean Air with a code-sharing operation and one between Seoul and Amsterdam via KLM.

In terms of market share, Air France KLM is the first in Korea among European carriers. The number of passengers using Air France and KLM flights between Seoul and Europe is 200,000 per year, 45-50 percent of them Korean.

``We enjoyed a sustainable growth during the past years, two-digit growth. Today, in the economic difficulty, we succeeded to continue a small growth until October. It's very specific because in Korea the outbound travel has been negative since May. But for Europe, the growth continues,'' the general manager said.

Moulin said it is because European destinations are still attractive to Koreans, as France is listed as the fourth must-see destination for Koreans. A large capacity and cheap ticket prices amid competition are other reasons, he pointed out.

``We also have good brand awareness, with the name Air `France.' These are the ways that we manage this economic situation at the moment,'' he said.

The strong partnership with Korean Air also helps the carrier's business here, Moulin said. Air France and Korean Air were two of four founding members of the airline alliance Sky Team in 2000, and the alliance allows them to cooperate in service, frequent flyer programs, assistance at airports and access to lounges.

Code-sharing is an agreement through which an airline sells seats on another carrier's flights under its own name. ``We connect two powerful hubs, Incheon and Charles de Gaulle, with all connecting flights by Korean Air on one side and by Air France on the other,'' Moulin said, adding the French airport is the busiest in Europe in terms of connections.

``There are not many markets where we are partners with national carriers. The partnership with Korea's national flag carrier reinforces our position as leader of this market,'' he said.

Potential Despite Economic Recession

Air France KLM manages to lower costs amid high fuel prices and the worldwide economic slowdown. To save fuel, the airline invests in modern fleets that consume less. ``Investing more than 2 billion euro' per year, Air France KLM has the youngest long-haul fleet in the world, 7.2 years on average,'' Moulin said.

The carrier also hedges fuel costs and charges a fuel surcharge.

Besides high fuel prices, however, Moulin said the carrier has been facing something else that's been impacting the airline business since a month ago. ``All airlines enjoyed longtime growth and most of them were quite profitable. Despite the cost increase, the demand was there, and we were able to face the fuel cost issue quite successfully. But we are entering a new time, where the demands are affected.''

He said change is slow in Korea but the airline still saw growth in November compared to last year. The airline is preparing for a difficult time, lowering its growth aim for next year, but will not decrease the capacity to Korea, Moulin said.

``We save everything that doesn't affect the customer service, reducing recruitment and watching carefully all internal expenses, but focus on the customer. The market is shrinking and we have to catch more customers, and for that, it's a matter of service. It is the only priority,'' he said.

For Korean customers, KLM has Korean cabin crew and Air France has interpreters aboard. Moulin said it is important to provide something Korean because it is a frequent request from customers. To meet the request, the airline offers a Web site in Korean, Korean-language assistance at foreign airports and a Korean-style in-flight meal menu. KLM provides dishes of Yongsusan, one of the most renowned traditional Korean-style dishes, while Air France serves kimchi, ``bibimbap'' and noodles.

Today, Air Franc KLM is the leading European carrier in the Korean market and aims to maintain its position. ``How? I take the motto of Air France _ by making Air France KLM the `preferred European airline' of Korean customers. Behind the simple motto, it means a lot and there's much work to do.'' Moulin said.






[출처 : 코리아타임스]

More Publicity Essential for Medical Tourism








Participants take part in the 3rd International Medical Travel Conference at the COEX InterContinental Hotel in Seoul, Thursday. The Korea Tourism Organization (KTO) and Korea Health Industry Development Institute (KHIDI) are co-hosting the annual event to attract more medical tourists from overseas. / Courtesy of KTO



By Kim Rahn

Staff Reporter

The increase in international recognition of Korea's medical skills is essential to the attraction of more medical tourists, a survey showed Thursday.

Korea Tourism Organization (KTO) and Korea Health Industry Development Institute (KHIDI) announced the interim result of their survey regarding medical travel in Asia and Korea during the International Medical Travel Conference, held in Seoul from Wednesday through Friday.

The research was conducted on foreigners who had visited or planned to visit Korea or other Asian nations on medical tours. The final result will come at the end of this year. The survey showed medical tour visitors put more weight on the quality of hospital staff, reliability of institutions and cost savings than the condition of facilities and equipment.

The surveyed showed 75.8 percent of medical tourists in Asia mainly came for medical skin care when multiple answers were allowed, followed by Oriental medicine and health checkups.

``Besides Japan, no country in Asia showed dominance in terms of recognition level of medical tourism, indicating that Korea can become a major player in healthcare tourism if it becomes competitive in service, but it is also possible for the country to fall behind if it fails to do so,'' Ohm Kyong-sop, KTO vice president for tourism technology, said in a press conference.

Among medical tour visitors to Korea, 80.3 percent were satisfied with the healthcare, with medical skin care showing the highest satisfaction level, 87 percent, while Oriental medicine showed a relatively low level at 72.2 percent.

``Satisfaction levels were higher than expectation levels, meaning people visit Korea without high expectations but are satisfied after receiving medical service,'' Ohm said, adding ``word of mouth'' through visitors will be essential to promotion.

He said medical travel is a value-added program that will be a new growth engine for the nation's tourism industry. ``Despite its high quality, Korea's medical tours have low recognition. We'll improve basic service and help exchanges between domestic and foreign medical institutions and travel agencies,'' Ohm said.

Lee Shin-ho, KHIDI executive director for industry support, said the number of foreign patients has increased to 40,000 as of this November from 16,000 last year. ``The government seeks to revise the Medical Law to facilitate medical tours, such as allowing hospitals to promote themselves. Korea's medical tourism will be competitive when such systems are prepared,'' Lee said.

Dedric Lam, CEO of Avail Corp., the organizer of the international conference, said, ``I was impressed by Korea's world-class healthcare facilities and the diversity of their offerings to medical travelers.'' He advised Korea to develop specific healthcare systems exclusively for foreigners to develop its medical tourism business.

The annual conference provided those engaged in medical tourism with a chance to discuss and exchange knowledge of medical travel. Some 300 from 16 countries took part in the Seoul meeting.






[출처 : 코리아타임스]

Gloomy anniversary for Geumgang tours







The inter-Korean joint tourism on Mount Geumgang yesterday marked the 10th anniversary of its start amid a protracted suspension since a shooting incident in July.

The tour program, which began on Nov. 18, 1998, has been the symbol of inter-Korean reconciliation and economic cooperation for a decade. But it ironically turned into a token of tension between South and North Korea after South Korean female tourist Park Wang-ja was gunned down by a North Korean soldier in the resort on July 11.

Since the incident, the Seoul-Pyongyang relations have become confrontational, and inter-Korean joint projects have been derailed. The North last week threatened to "restrict and cut off" all overland passages of the inter-Korean border from Dec. 1.

Two Koreas did not hold an event to celebrate the anniversary.

The South Korean Unification Ministry said yesterday it hopes the two Koreas resume Mount Geumgang tourism as soon as possible.

"Our government believes if South and North Korean authorities meet to resolve the problem through mutual understanding and consultation, both sides would definitely find a solution," ministry spokesman Kim Ho-nyoun told reporters.

"The government has sympathy for Hyundai Asan and other cooperative companies that have suffered difficulties since the suspension of Mount Geumgang tourism," Kim said.

When the incident broke out, Seoul demanded the North cooperate in investigating the incident and pledge to prevent a recurrence. But after Pyongyang refused to accept a joint investigation into the kill, Seoul suspended tourism immediately.

The tour project began in 1998 at the initiative of the late Hyundai Group founder Chung Ju-young. Chung, who long cherished the vision, secured an agreement on the tour program from the North Korean government while he was making a historic overland visit to the North with a herd of cattle.

The Seoul government also approved the plan under a principle of division between politics and economics in relations with Pyongyang.

Initially, Mount Geumgang, which is in North Korea, was only accessible by ship from the South. But overland tours began after ground transportation between the two Koreas started in September 2003.

For the last decade, the project has repeatedly faced ups and downs with the fluctuating political situation on the peninsula, and corruption and succession scandals surrounding the Hyundai Group, the main operator of the tour.

When Pyongyang detonated a nuclear device in 2006, the United States demanded South Korea close the tour program, accusing it of becoming a source of the North`s funding for its nuclear program.

More than 1.9 million South Koreans in total have toured the scenic mountain on North Korea`s east coast as of June this year.

The South Korean government has said that tourism has spearheaded other inter-Korean economic projects including the Gaeseong industrial complex.

The North side has also said the program has "greatly contributed" to improving inter-Korean ties. The North said it made a significant concession in the operation of the tour program.

With the tours suspended for more than four months, Hyundai Asan and other cooperative companies are suffering severe sales losses.

Recent research said economic losses of the enterprises are estimated at over 100 billion won ($143 million).

According to the data, Hyundai Asan suffered a sales loss of around 70 billion won for the past three months since July 11 this year. Other private cooperative companies have also suffered about 5.5 billion won in losses among the travel, lodging, and food industries in Sokcho and Goseong region.

The Seoul government recently softened its stance in regard to the resumption of the tour. It allowed four South Korean civilians to visit the Mount Geumgang area yesterday to distribute 50,000 briquettes to North Koreans in a nearby town.

However, the North is apathetic to Seoul`s moves.

The communist country says the fate of the stalled programs hinges on Seoul`s attitude toward two inter-Korean summit accords, reiterating its call for South Korea to implement them.

"The South Korean government should implement the June 15 and Oct. 4 joint declarations. Here lies the road to the resumption of Mount Geumgang tourism and a restoration of the North-South relations," the North`s weekly paper Tongilsinbo said in its latest edition on Saturday.

North Korea has denounced the conservative Lee Myung-bak government for negating the summit declarations signed by his two liberal predecessors and the North`s leader Kim Jong-il.

Given the deep mistrust between both Koreas, observers here say, a resumption of the tour program is unlikely to happen in the near future.

By Jin Dae-woong

(davidpooh@heraldm.com)






[출처 : 코리아헤럴드]

'AIG in Korea Has No Liquidity Crisis'





AIG CEO Brad Bennett


By Yoon Ja-young

Staff Reporter

AIG General Insurance in Korea is recording solid growth and plans to continue expanding business here, unaffected by problems at the group's headquarters in the United States, its new CEO said.

``Our general insurance operations globally are not for sale. They are very solid, very stable, very well regulated, and very liquid,'' said Brad Bennett, president & CEO of AIG General Insurance in Korea, at his first meeting with the local media held in downtown Seoul, Tuesday.

Bennett, who headed the insurer's operation in Malaysia, was appointed to lead the Korean operation from Nov. 1.

Bennett emphasized that though the group's headquarters in the United States is getting assistance from the Federal Reserve amid financial turmoil, the Korean operation, which represents its 10th largest operation outside the United States, is as solid as its other global businesses.

He said the group restructured loans with the U.S. government in a very positive way that was beneficial to shareholders. Remaining assets that have been put up for sale are more likely to get the fair market value as the group is not pressured.

The insurer marks its 54th anniversary in the country. "AIG General Insurance has been committed to the Korean market since its establishment in 1954, all the while we have been growing together sharing ups and downs of Korean economy for more than 50 years," Bennett said. As of September, the firm's total gross premiums written reached 201.2 billion won, growing 16 percent from the previous year. The total number of contracts increased to about 1.44 million from 1.15 million, growing 25 percent during the first half of the year.

He added that next year will be a spring board for further growth. ``We will exert our best efforts to bolster business capabilities through entering into new insurance markets." The insurer plans to launch its first long-term insurance product and medical reimbursement insurance product, on top of leveraging its market-leading position in overseas travel insurance. It would focus on niche markets, with products tailored to businesses in the middle market whose total sales range from 10 billion won to 100 billion won.

He said the solvency margin ratio hovers around 150 percent. ``We will keep it there and I don't anticipate doing anything with it other than keeping it right there.'' He said Korea is fortunate to be overseen by Financial Supervisory Service, a vigilant regulator.

Bennett, who has over 22 years' experience in insurance, has had an interesting career track record. Before joining the insurance industry, Bennett was a professional baseball player for four years. He played for minor-league teams affiliated with New York Yankees and St. Louis Cardinals.

He said baseball offers some lessons for management. ``It teaches how to deal with failure. It was great experience for me and I still take from it today.''






[출처 : 코리아타임스]

Tuesday, December 2, 2008

Lee Proposes Pacific Rim Free Trade Area








World leaders, wearing traditional Peruvian ponchos, wave during the official group photo session at the APEC summit in Lima, Peru, Sunday. Front row from left to right: Australia’s Primer Minister Kevin Rudd; Brunei’s Sultan Haji Hassanal Bolkiah; Canada’s Prime Minister Stephen Harper; Chile’s President Michelle Bachelet; China’s President Hu Jintao; Peru’s President Alan Garcia; Hong Kong’s Chief Executive Donald Tsang; Indonesia’s President Susilo Bambang Yudhoyono; Japan’s Prime Minister Taro Aso; President Lee Myung-bak; President Gloria Macapagal Arroyo of the Philippines. Back row from left to right: Malaysia’s Deputy Prime Minister Najib Razak; Mexico’s President Felipe Calderon; New Zealand’s Prime Minister John Key; Papua New Guinea’s Prime Minister Michael Somare; Russia’s President Dmitry Medvedev; Singapore’s Prime Minister Lee Hsien Loong; Taipei’s former Vice President Lien Chan; Thailand’s Prime Minister Somchai Wongsawat; U.S. President George W. Bush; Vietnam’s President Nguyen Minh Triet. / Yonhap



By Michael Ha

Staff Reporter

President Lee Myung-bak continued to tout the virtues of free markets and free trade during his overseas trip. In his address at the closing of the Asia-Pacific Economic Cooperation (APEC) forum in Peru, Sunday, Lee proposed that APEC member nations adopt wide-ranging free trade agreements (FTA).

Specifically, President Lee urged APEC nations to jointly conduct a study on benefits of adopting free trade deals covering their economies. The arrangement could function as a collective regional FTA at the APEC level.

Tentatively called ``Free Trade Area of the Asia-Pacific Region'' (FTAAP), it could have a major impact on the global economy. APEC member nations currently account for more than half of the world economy and almost half of world trade.

The President said it's time for APEC members to seriously explore the possibility of multiple FTAs. ``Sets of bilateral and multilateral FTAs will help accelerate the WTO bid for global trade and investment liberalization,'' Lee said.

At an APEC session, President Lee also told world leaders that global cooperation is a key in overcoming the financial crisis. He urged developed economies to increase aid to emerging markets. Lee also told APEC leaders that more government spending and more tax cuts will be needed to lift up the slowing economies around the world.

Also on the sidelines of the summit, Lee held meetings with several heads of state. He discussed with the presidents of Colombia and Chile the prospects of free trade agreements between Korea and the two South American nations.

Meanwhile, world leaders at the APEC summit were on the same page with President Lee when it came to the issue of free trade. Heads of state said in a joint statement that their countries would avoid protectionism. Specifically, the leaders pledged to refrain from erecting new trade barriers in the coming year.

``There is a risk that slower world growth could lead to calls for protectionist measures which would only exacerbate the current economic situation,'' according to the joint statement.

``In this regard, we…will refrain within the next 12 months from raising new barriers to investment or to trade in goods and services.''

The joint statement said, ``We reiterate our firm belief that free market principles, and open trade and investment regimes will continue to drive global growth, employment and poverty reduction.''

APEC leaders said they would take necessary steps to address economic problems, predicting the economic outlook will get brighter in about a year and a half. ``We are convinced that we can overcome this crisis in a period of eighteen months. We have already taken urgent and extraordinary steps to stabilize our financial sectors and strengthen economic growth and promote investment and consumption,'' the statement said.

``We will continue to take such steps, and work closely, in a coordinated and comprehensive manner, to implement future actions to address this crisis.''

The APEC leaders also pledged to support ``efforts by export credit agencies, international financial institutions and private banks to ensure that adequate finance was available to business, including small and medium-sized enterprises, and to keep trade and investment flowing in the region.''

The statement also said that as financial systems deepen and become more complex, ``regulatory and supervisory tools must be more effective.''

In the statement, 21 APEC leaders also pledged to work together in reviving the Doha Development Agenda negotiations that stalled earlier this year. APEC members will discuss that in detail in an upcoming ministerial meeting next month in Geneva.

The leaders also said emerging economies should play a bigger role in reforming the global financial system and possibly adopting a new financial regulatory structure.

President Lee flew to Los Angeles Monday for a one-day visit after wrapping up his APEC summit. He will return to Seoul today.






[출처 : 코리아타임스]

[Insight into Dokdo(18)] Dokdo and Sino-Japanese Diaoyudao disputes







This is the 18th in a series of articles examining the Dokdo controversy from a historical, political and legal perspective. - Ed.

(1) The Korea-Japanese Dokdo Disputes

Brief historical facts

Dokdo (Takeshima) is situated in the southwestern part of the Sea of Japan (the East Sea), 47 nautical miles southeast of Korea`s Ulleungdo Island and 86 nautical miles northwest of Japan`s Oki Island. Dokdo consists of two tiny uninhabitable rocky islets with 33 rock formations above water at low ebb surrounding them, and has a combined land area of 1.3 square kilometers. Dokdo is near rich fishing grounds and has served as a fishing strongpoint for harvesting abalone and seaweed, and for hunting seals and sea lions.

Historical facts show that apart from the period when Korea was under Japan`s occupation from 1910-1945, Dokdo had been under the control of successive Korean governments. Korea`s claims are based on discovery and historical jurisdiction. Korea says that Dokdo was discovered by a Korean in 1483, and after that criminals were sent into exile there. Dokdo has been an appendage of Ulleungdo all through the ages. Records from the reign of King Sejong in the 15th Century listed both Ulleungdo and Dokdo as belonging to Uljin County. In 1900, King Kojong issued Royal Decree No. 41, which explicitly designated Dokdo as under the administrative jurisdiction of Gangwon Province.

Japan`s first government reference to Ulleungdo and Dokdo appeared in its 1667 report on an observational trip to Oki Island. The report stated that the two islands are uninhabited and noted that Oki Island "marked the northwestern boundary of Japan," thus acknowledging that Japan did not claim sovereignty over Dokdo and Ullungdo. Japan began to expand its control over Korea after the 1895 Sino-Japanese War. Japan claimed that the features were discovered by a Japanese in 1616. After the 1904 Russo-Japanese War, Japan claimed its sovereignty over Dokdo in January 1905, asserting that it was "terra nullius" (land belonging to no country) and susceptible to annexation. Japanese Shimanae Province issued a notice on Feb. 22, 1905 declaring Takeshima belongs to Shimanae Province.

The Japanese troops entered and were stationed in the Korean territory in the early 20th century. The seas surrounding Dokdo and Ullungdo became a key battleground in the Russo-Japanese War. Japan turned Korea into its "protectorate" after its victory in the war, and Korea was formally incorporated into Japan in 1910. During 1909-1945, Korea was deprived of the right to control its internal and foreign affairs, making Korea unable to protest against Japan`s annexation of Dokdo.

After World War II, the Supreme Commander for the Allied Powers was stationed in Japan and issued a series of instructions. The instruction issued on Jan. 29, 1946 defined the territory over which Japan was to "cease exercising, or attempting to exercise, governmental or administrative authority." Dokdo was one of the islands that were removed from the Japanese control. The instruction issued on Sept. 16, 1947 completed the Allied Powers` act of occupying Dokdo, and designated the islets as a bombing range for the Far East Air Force. Pursuant to this directive, the U.S. military conducted a bombing exercise at Dokdo on June 30, 1948 that caused the death of 16 Koreans and wounded six other Koreans fishing in the area. After the incident, the Korean government immediately took measures to extend its administrative authority to the island. Since then, Dokdo has been under the continuous control of Korea.

Different Positions of Korea and Japan

Korea`s claims of Dokdo are based on:

1. Korea was the first discoverer of Dokdo, and displayed acts of sovereignty in administering it for a long time in history.

2. Dokdo is an appendage of Ullungdo. Geographically, Dokdo is much nearer to Ullungdo than Japan`s Oki Island. Based on the principle of proximity, Dokdo belongs to Ullungdo.

3. The actual control of Dokdo by Korea. Korea has occupied Dokdo since 1948, and has controlled Dokdo more than a half century.

4. Japan`s acquiescence for many times towards Korea`s sovereignty over Dokdo.

5. Japan`s annexation of Dokdo in 1905 is linked with Japan`s military expansionism and its conquest of Korea, which made Korea unable to protest over the annexation.

Japan`s claims of Dokdo are based on:

1. Japan`s annexation of Dokdo into Shimanae Province in 1905 in the name of terra nullius.

2. Japan`s actual control of Dokdo during 1905-1945.

3. Japan`s continual protests over Korea`s occupation of Dokdo in the past more than a half century.

Legal analyses of the sovereignty disputes

1. "terra nullius"

Japan asserts that Dokdo was terra nullius before 1905 when it was incorporated into Shimanae, but this assertion can be fully negated by the acts of sovereignty Korea displayed in history. Since Korean fishermen often landed on Dokdo, how can it be said that it was terra nullius? In judging whether it was terra nullius, the year 1905 is the critical date. Korea`s sovereignty acts on Dokdo before the date are of primary importance. Japan asserts that it "discovered" and "occupied" Dokdo before 1905; however, since Japan says Dokdo was terra nullius before 1905, it shows that Japan acknowledges that its contacts with Dokdo before the date were not enough to establish sovereignty.

2. "Effective Occupation"

The requirements of effective occupation on such remote and uninhabited islets should not be strict. Korean fishermen`s prior irregular landings provide enough evidence as displays of sovereignty and occupation. In the Award on the Case of Eastern Greenland between Denmark and Norway in 1933, the Permanent Court of International Justice noted, "In thinly populated or unsettled countries, tribunals have been satisfied with very little in the way of the actual exercise of sovereign rights, provided that the other State could not make out a superior claim."

3. "Appendage" or "Dependency"

Dokdo is a dependency of Ullungdo. That the two islands are an entity linked together with geographical proximity is not to be underestimated. In the 1953 Case of Minquiers and Ecrehos between France and the United Kingdom, the International Court of Justice awarded the two islands to the United Kingdom, and an important factor in the court decision was "on the view that the Minquiers group were a `dependency` of the Channel islands (Jersey and Guernsey) and thus should be subject to the same sovereign authority."

4. "Prescription"

Japan holds that its control and usage from 1905-1945 gives it rights to Dokdo. Traditional international law texts list prescription as one of the methods of acquiring territory, but international law no longer recognizes the legitimacy of acquiring territory through force. Prescription needs to be peaceful and uninterrupted, and rests upon the acquiescence of the former sovereign. "This means that protests by the dispossessed sovereign may completely block any prescriptive claim."

On the contrary, Japan has acquiesced repeatedly over the years on Korea`s occupation of Dokdo. For example, on March 29, 1877, Japan`s highest governmental organ, the Dajokan, responding to an inquiry from Shimane Prefecture about whether Ullingdo and Dokdo should be included in a nationwide land survey, instructed the Home Ministry that regarding the two islands, "it is understood that our country has nothing to do with them." Maps published by Japan`s Ministries of the Army and Navy in late 19th century positioned Dokdo outside Japanese territory.

Since the early 1950s of the 20th century Japan began to issue protests over Korea`s possession of Dokdo. However, "from 1957 when the talks were resumed until the signing (of the Korea-Japan Treaty) in 1965, the Takeshima/Dokdo problem was never adopted as an official agenda, to be recorded in the minutes. There is absolutely no direct reference to Takeshima/Dokdo in the various documents of the Korea-Japan Treaty." This has been seen by a lot of people as a waiver by Japan of its claim, leading to the view that Japan is estopped from continuing to raise the claim.

Dokdo`s impacts on the delimitation

Regarding Dokdo`s impacts on the delimitation, Korea holds that Dokdo is entitled to have 12 nautical miles territorial sea, and that in view of the fact that Ullingdo is fully entitled to claim 200 nautical miles EEZ and when Korea`s EEZ is delimited with Ullingdo as the basepoint, Dokdo is naturally included in the Korean side. Japan, on the other hand, asserts that Dokdo should have full effect with 200 nautical miles EEZ; and that Japan`s EEZ should take Dokdo as its basepoint and be delimited between Dokdo and Korea`s Ullingdo.

(2) The Sino-Japanese Diaoyudao Disputes

Brief historical facts

The Diaoyudao (Senkaku) Islands consist of five uninhabited islets and three barren rocks, located approximately 120 nautical miles northeast of Taiwan, 200 nautical miles east of the China mainland coast, and about 200 nautical miles southwest of Okinawa. The total land area is about 7 square kilometers. Diaoyudao itself is the largest of them with an area of 4.319 square kilometers,

Since the mid-16th century, the Diaoyudao Islands have been Chinese territory. The islands were named in Chinese as Diaoyu Dao (Diaoyu Yu, or Tiaoyu Tai) with a literal meaning of "fishing islands (islets)" in the years of Emperor Jaiqing (1522-66) of the Ming Dynasty. They have always appertained to China`s Taiwan, but not to Ryukyu (Liuqiu, or Okinawa). Fishermen from China`s Taiwan and Fukien Province have all along carried out productive activities there.

The extinct Ryukyu Kingdom originally acknowledged allegiance to China, and maintained vassalage successively with China`s Ming and Qing dynasties. Ryukyu`s kings were crowned by the Chinese emperors who used to send their representatives for the coronation ceremonies in Ryukyu. The first Chinese envoy was sent there in 1372. Situated between the Chinese mainland and the Ryukyus, the Diaoyudao Islands provided the Chinese with a convenient landmark for navigation, and were the only way through which the Chinese missions could pass to reach the Ryukyus. A feudal lord from Kagoshima, Shimazu, conquered the Ryukyu Kingdom in 1609 and turned it into a colonial dependency. But all the successive kings of Ryukyu still pledged allegiance to the Chinese emperors and accepted titles from them. To resist harassment by the Japanese, "China`s Ming Dynasty in 1556 appointed Hu Zong Xian commander of the punitive force in charge of military action against the Japanese invaders in the coastal provinces. Diaoyu Dao, Huangwei Dao, Chiwei Dao and other islands were then within the scope of China`s coastal defense."

There were also "two Japanese maps of 1783 and 1785, each specifying the boundary of the Ryukyu Kingdom, though the last one does so only indirectly." The boundary referred to in these records is substantially the same, indicating or implying that the Diaoyudao Islands belong to China.

Japan dethroned the king of the Ryukyus in 1872 (the fifth year of the Meiji Era), reducing him to the status of a feudal lord, and in 1879 Japan annexed the former kingdom as the prefecture of Okinawa. In 1884, Japan alleged that Diaoyu Dao was first discovered by a Ryukyu fisherman named Tatsushior Koga. In 1885, the prefectural government of Okinawa sought the approval of the central government to place Diaoyu Dao and two other islets under its jurisdiction. Upon consultation with the Foreign Ministry, the Home Ministry hesitated to take action and advised postponement of the matter. It was not until Jan. 14, 1895, that the Japanese cabinet granted approval to Okinawa to annex two of the islets. The Japanese cabinet decision of 1895 was closely related to the Sino-Japanese War (July 1894-March 1895), which ended in October 1894 in Japan`s favor. On April 17, 1895, the Treaty of Ma Guan (the Treaty of Shimonoseki ) was signed between China and Japan formally concluding the Sino-Japanese War. By Article 2(b) of the treaty, China ceded to Japan Taiwan (Formosa), "together with all islands pertaining or belonging to the said Island of Formosa" and the Penghu Islands (the Pescadores). Under these circumstances, if China raised an objection to Japan`s occupation of the Diaoyudao Islands, it would have made no sense. Without the Sino-Japanese War, Japan would have been unable to occupy the Diaoyudao Islands.

In 1945 when the World War II came to an end with the defeat of Japan, Japan accepted the following condition set forth in the Cairo Declaration of 1943, "All the territories Japan has stolen from the Chinese, such as Manchuria, Formosa, and the Pescadores, shall be restored to the Republic of China." On Oct. 26, 1945, China declared Taiwan as its thirty-fifth province.

As for the Ryukyu Islands, which were surrendered to the United States on Sept. 7, 1945, and had since been under military government, a trusteeship system under U.S. control was set up.

It was a mistake from the beginning that the Diaoyudao Islands, which should have been returned to China together with Taiwan, were included in the areas under the U.S. administration. In 1958 China made a declaration about its territorial sea, which made it clear that the provisions about its territorial sea shall apply to all its territories including Taiwan and its surrounding islands.

In the face of the "Protect the Diaoyudaos Movement" emerged in Taiwan, Hong Kong, and in major metropolitan centers of North America as well as a strong claim to the ownership of the islands by Beijing in the late 1960s, the U.S. State Department came out to clarify its stand on the issue on Sept. 10, 1970, saying that any conflicting claims "would be a matter for resolution by the parties concerned." On June 17, 1971, a reversion treaty was signed in Tokyo between Japan and the United States, whereby Okinawa was to be restored to Japan. Since then, there has been a continued tension over the Diaoyudaos.

Different Positions of China and Japan

China`s claims of Diaoyudao are based on:

1. The Diaoyudao islands were discovered and named by China hundreds of years before the Ryukyu fisherman Tatsushiro Koga discovered them in 1884 as was alleged by Japan.

2. The Diaoyudao Islands are situated on the edge of the East China Sea continental shelf, and are an appendage of Taiwan. On the south, they border the Okinawa Trough which plunges to more than 2,000 meters.

3. The fishing grounds around the islands have been regular haunts of Chinese fishermen, who used the islands as storm shelters as well. During those years the islands were fit for nothing but as navigational aids and were used as such. In 1893, Empress Dowager Tsu Shih of the Qing Dynasty issued an imperial edict granting three islets of the Diaoyudao Islands to one of her subjects, Sheng Xuanhuai (Sheng Hsuan Huai) for collecting herbs. This is an official act on China`s side

4. When Taiwan and all the islands appertaining or belonging to it were ceded to Japan in 1895 as a result of China`s defeat in the Sino-Japanese War, the Diaoyudao Islands were undoubtedly included in that part of the Chinese territory so ceded. Japan`s unilateral proclamation of annexation of the Diaoyudaos in 1895 can have no legal effect, since one state cannot unilaterally proclaim sovereignty over the territory of another. From the point of international treaty, as far as China is concerned nothing that happened after 1895 can be considered relevant in undermining China`s long-standing claims.

5. In 1945 when Japan surrendered to the allies, she accepted the term as set forth in the Cairo and Potsdam Declarations regarding the return of the Chinese territories including the Diaoyudao Islands.

As to the San Francisco Treaty and the Okinawa Reversion Treaty, China holds that "The United States government excluded the PRC in calling the San Francisco Conference, which it monopolized, and signed a separate peace treaty with Japan." Thus the treaty was "illegal and null and void." Also, "It is utterly illegal for the U.S. and Japanese governments to include China`s Diaoyudao and other islands in the so-called area of reversion at the Okinawa reversion agreement. Their act cannot in the least alter the sovereignty of the People`s Republic of China over her territory of Diaoyudao and other islands."

Japan`s claims of Diaoyudao are based on:

1. The ownership of the Diaoyudao Islands had not been established by China, or any other state, up until 1894. In other words, they were terra nullius. They were discovered by Ryukyu fisherman Tatsushiro Koga in 1884.

2. The incorporation of the Diaoyudao Islands was unrelated to the successful progress of the war against China, and the Diaoyudao Islands were not included in the Shimonoseki Treaty signed concluding the Sino-Japanese War by which China ceded to Japan Formosa together with all islands pertaining to it.

3. The Diaoyudao Islands were not included in the territories Japan had to give up according to the San Francisco Peace Treaty. When the Ryukyu Islands were placed under the U.S. military administration at the end of the World War II and subsequently under U.S. trusteeship in accordance with the San Francisco Peace Treaty, the Diaoyudao Islands were always included in the Ryukyu Islands. Furthermore, the Okinawa Reversion Treaty also included the Islands in the areas to be restored.

4. "Since 1945 Japan has consistently exerted sovereignty over the Diaoyudaos. All challenges to this sovereignty by China have been countered, as required in international law."

Legal Analyses of the Sovereignty Disputes

1. The Diaoyudao Islands are not terra nullius, and China meets the requirements of "acquisition by discovery." There is no doubt that China discovered the islands hundreds of years before Japan, and displayed official acts by using the islands as navigation markers.

Some people might contradict the principle of "acquisition by discovery" by saying that discoverers only have "inchoate title" and are not qualified to have acquisition. In fact, according to the theory of international law, "In former times, the two conditions of possession and administration, which now make the occupation effective, were not considered necessary for the acquisition of territory through occupation. The taking of possession was frequently in the nature of a mere symbolic act. Later on, a real taking of possession was considered necessary. However, it was not until the 18th century that the writers on the Law of Nations demanded effective occupation, and not until the 19th century that the practice of the States accorded with the postulate." Thus China was qualified to acquire the territory of the Diaoyudao Islands at the time of its discovery, and the conditions of possession and administration were not necessary.

2. Japan`s annexation of the Diaoyudao Islands is closely related to its victory in the Sino-Japanese War and to the usurpation of the Shimonoseki Treaty, and this annexation has no legal effects on sovereignty.

The legal basis of Japan`s annexation of the Diaoyudaos seems to be founded, at least partly, on the Shimonoseki Treaty, stipulating on the cession of Taiwan and islands appertaining to it. "When Japan admitted that the treaties between Japan and China signed before Dec. 9, 1941, were no longer in force, the Shimonoseki Treaty was certainly included in them. Under such circumstances, at least the partial basis for Japan`s annexation of the Diaoyudaos no longer exists."

3. The inclusion of the Diaoyudao Islands in the Okinawa Reversion Treaty signed between Japan and the United States in 1971 cannot be taken as evidence of Japanese sovereignty over the Islands.

Due to the inclusion of the Diaoyudaos into the jurisdiction of the Okinawa Prefecture during Japan`s seizure of Taiwan and the Diaoyudaos, the Diaoyudaos were included in the Ryukyu Islands under U.S. occupation in 1945 based on Japan`s administrative areas. However, this fact cannot be taken to have created any legal grounds related to the ownership of the Islands. The incorporation of the Diaoyudaos into Okinawa "is a domestic act, and cannot restrict China`s rights in recovering lost territory. Otherwise when an aggressor seizes another`s territory and changes its administrative authority, the other side would not be entitled to recover the lost territory. How would this be justified?" Moreover, "All claims by Japan based on the San Francisco Peace Treaty of 1951 and the subsequent Okinawa Reversion Treaty of 1971 could be challenged on the basis of the PRC`s consistent denial of the legality of those treaties and actions taken under those treaties."

The Diaoyudao Islands in fact already separated themselves from Japan`s control after being occupied by the U.S. troops in April 1945. After Japan accepted the Potsdam Proclamation and was committed that confinement of its territory to four big islands and other islets which would be decided by the Allies, the Ryukyus and the Diaoyudao Islands were totally separated from Japan from the point of international law. The so-called "residual sovereignty" Japan had over the Ryukyus and Diaoyudaos as said by the United States and Japan is not tenable legally.

Diaoyudao`s impacts on the delimitation

China holds that the Diaoyudao Islands are small, uninhabited, and cannot sustain economic life of their own, and that they are not entitled to have EEZ and continental shelf. Japan holds that the islands are entitled to have continental shelf and intends to use them as base points for continental shelf claims on the East China Sea.

(3) Similarities and Differences between Dokdo and Diaoyudao

Similarities

1. Dokdo was first discovered by Korea, and Diaoyudao was first discovered by China. They were not terra nullius before the discovery by Japanese asserted by Japan.

2. Dokdo is an appendage of Ullungdo, and Diaoyudao is an appendage of Taiwan. They have been regular haunts of Korean and Chinese fishermen, who used the islands as storm shelters as well.

3. Dokdo was occupied by Japan after the 1905 Russo-Japanese War, and Diaoyudao was occupied by Japan after the 1895 Sino-Japanese War. Japan`s allegation of "prescription" is untenable legally.

4. The sovereignty of Dokdo affects the jurisdiction delimitation between Korea and Japan in the Sea of Japan (East Sea), and the sovereignty of Diaoyudao affects the jurisdiction delimitation between China and Japan in the East China Sea. Japan stands for full effect of EEZ and continental shelf for Dokdo and Diaoyudao, whereas Korea and China stand for no entitlements of EEZ and continental shelf for the two Islands.

Differences

1. Dokdo is under the actual control of Korea, while Diaoyudao is under the actual control of Japan.

2. After Japan accepted the Potsdam Declaration and acknowledged its sovereignty shall be limited to the four big islands and other minor islands as the Allied Powers determine, the instructions issued by the U.S. troops stationed in Japan defined that Dokdo was one of the islands that was removed from Japanese control. Diaoyudao, which should have been returned to China together with Taiwan, was mistakenly included in the Ryukyu areas under the U.S. administration.

3. The different attitude taken by the United States towards Dokdo and Diaoyudao. The two island groups were both under the control of the United States after the World War II. The U.S. forces designated Dokdo as a bombing range for its Far East Air Force, and after the Korean government extended its administrative authority to the island after a bombing incident, the United States did not raise an objection. Yet, in the Okinawa Reversion Treaty the United States handed over to Japan Diaoyudao together with the Ryukyu Islands.

(4) Legal analyses of imperialist and colonialist Acts

1. Japan seized Dokdo and Diaoyudao by force through the 1905 Russo-Japanese War and the 1895 Sino-Japanese War, respectively. This is entirely an imperialist and colonialist act. This contravenes the U.N. Charter and international law. As the Cairo Declaration states, "The Three Great Allies are fighting this war to restrain and punish the aggression of Japan ... Japan shall be stripped of all the islands in the Pacific which she has seized or occupied since the beginning of the World War I in 1914 ... Japan will also be expelled from all other territories which she has taken by violence and greed." The declaration embodies the international justice, and its spirit is applicable also to those islands Japan took by violence and greed before 1914. Undoubtedly, Japan took Dokdo and Diaoyudao by violence and greed. Besides, Japan now wants to take the Ryukyu Islands as the main basis to divide the East China Sea with China; actually Japan`s annexation and occupation of the Ryukyu Islands itself also lacks legal basis.

2. Traditional international law states, "Territory ... may be acquired by discovery, occupation, accretion, cession, and conquest or subjugation." One can clearly see that this stipulation fully reflects the imperialist and colonialist flavors and serves the interests of imperialists and colonialists. It is the jungle law. We all know that international law was gradually developed in the 17th century. "The general understanding of territorial acquisition and loss in international law has been developed through decisions and awards by international judicial and arbitral bodies, and these cases basically involve either colonizing countries or colonized/newly independent countries"; The present Western-centric international law on territorial acquisition needs to be modified now.

3. The post-World War II territorial dispositions were mainly arranged by the United States and other Western powers. They mainly stemmed from their own geopolitical interests without taking the interests of regional countries into consideration. The roots of many territorial disputes in the region lie in them. Moreover, the legitimacy of the San Francisco Peace Treaty itself is questionable. It is a unilateral peace treaty initiated and controlled by the United States, without the signature of the Soviet Union and without the participation of China, the two big contributors in the World War II. The Potsdam Proclamation issued by the United States, Great Britain, and China stipulates, "Japanese sovereignty shall be limited to the islands of Honshu, Hokkaido, Kyushu, Shikoku and such minor islands as we determine." "We" here refers to the United States, Great Britain, and China, but the San Francisco Peace Treaty excludes China. It should be fairly said that the territorial arrangements in East Asia by the United States and other Western powers contravenes the Potsdam Proclamation.

4. The U.S. administration has defended the Western colonialist regime. While adhering to the traditional international law, it adopts a practical and double standard in safeguarding its own interests. On explaining the reasons for the United States` continued occupation of the Ryukyus, Diaoyudaos and other islands at the San Francisco Peace Treaty conference, John Foster Dulles said that "This does not deny Japan`s `residual sovereignty`." The term "residual sovereignty" first used by Dulles evidently was for protecting Japan`s interests regarding territories which Japan seized by force before. The concept of "residual sovereignty.` is totally untenable in international law. The U.S. stand that "any conflicting claims to the (Senkaku) islands are a matter for resolution by the parties concerned" is more or less paying lip service.

By Ji Guoxing






[출처 : 코리아헤럴드]