Korean Universities Jump in 2014 World University Rankings

65 Pages·2014·3.4 MB·English

OCTOBER 2014 / VOL. 31 NO. 355
C O N T E N T S
COVER STORY
30 Materials, Components Industry
Performing Well, But Advanced
Materials Not All There Yet
32 Materials & Components Policy
Opening Era of $100 Billion Trade
Surplus in Materials, Components
34 KMCW 2014
Catalyst for Korea as Materials and
Components Industry Powerhouse
Korean Materials & Catalyst for Korea as Materials and 34
Components Industry Powerhouse.
Components
FOCUS 16 Gumi City
Aiming to Become Global
08 Enhanced Standards for Auto Standard as Origin of Saemaeul
Gases Movement
Obliged to Abide by Either the 20 Samcheok City
Greenhouse or Fuel Effi ciency Towards Establishing an
Standards Ecological City of Clean Energy
16
22 Korea Power Exchange
NATIONAL KPX Starts to Build ESS Facilities
Unveiling ceremony for the statue honoring the
for Frequency Regulation
former President Park Chung-hee.
10 Debut on Global Diplomacy Stage 23 Global CSR
President Park Geun-hye Travels KOTRA Promotes CSR Activities
to North America for Keynote in Overseas with 31 Partner
Speech at U.N., Summit with Companies
Canada 24 Vietnam-Korea Relations
12 Mobile Prevalence in N. Korea Sparing No Time, Eff orts for
1 in 10 North Koreans Might Have Strengthening Bilateral Relations
Mobile Phones 26 Saudi-Korea Relations 20
13 Eff ects of Unii cation Comprehensive Bilateral
Unii cation of Korea to Create Cooperation Deepened and Kim Yang-ho, Mayor of Samcheok City.
US$200 Billion of Economic Eff ects Diversii ed
for Surrounding Nations 28 Ildong Pharmaceutical Issue
14 National Competitiveness 73-year-old Pharmaceutical 40 Dangerous Temptation
World Economic Forum Ranks Company to Manufacture Anti- C hinese Banks in Korea Becoming
Korea 26th, Lowest in 10 Years cancer Drugs in Saudi Arabia Monetary “Black Holes” through
Working Hours Yuan Deposits
Koreans Work Second-longest MONEY Preference for Foreign Currency
Hours in OECD F oreign Currency Deposits
15 World University Rankings 38 Split Views Increasing in Popularity
Korean Universities Jump in 2014 Government, Central Bank of 42 Chaebol Owner Gains
World University Rankings Korea Split on Household Debt L argest Stockholders of Hyundai
2014 | 04 05
Motor Group Recorded Biggest Low-priced Penetration
Gain in Stock Valuation Huawei Enters Korean Mobile
43 Hyundai Restructuring Market with Honor 6
Hyundai Motor Group Speeding
Up Ownership Structure INDUSTRY & COMPANY
Reform
44 Noblesse Oblige 58 Challenges to Korean IT 44
SK Group’s Heiress Joins the Navy Hardware
45 International Trade Chinese Companies, Apple Chey Min-jeong, the second daughter of Chey Tae-
won, chairman of the SK Group.
Exports Step Backwards in Challenge Korean Firms in
August for 1st Time in 3 Months Hardware
46 Big M&A Opportunities 59 Chip Competition
KDB to Sell off Daewoo Semiconductor Companies
Securities, DSME Focusing on Lamination instead
of Microfabrication
ICT 60 Scandal at IFA
60
Samsung-LG Disputes over
48 Nokia Patent Off ensives Washing Machines Expanding
MS Seeks Position of Strength into War of Words Outside Court
in Patent Fee Negotiations with 61 Era of Smart Cars Samsung's Front Load Crystal Blue Washing Machine
has come under attack recently in Germany.
Samsung, LG Popularization of Smart Cars
50 Investment Competition Heating Up Competition
Tencent, Alibaba Compete for Dream Cars
Investment in Korean, Chinese Self-driving Vehicles Available in Technologies Performing Very
Markets a Couple of Years Well in Overseas Markets
51Facebook's Arrogance 62 Conl ict within Labor Unions
Facebook Stops Providing Radical Labor Unions Making TECHNOLOGY
Gaming Service Unilaterally Bitter-Sweet Stories among
52 Embroiled in Coping Controversy Korean Carmakers 70 Fueling Cars with Water
Are iPhone 6, Apple Watch 63 Local Car Market K orean Research Team Develops
Just Patchwork Samsung, LG Sales Volume of Full-size Cars Tech to Mass Produce Hydrogen
Products? Soared in August Highly Sensitive Nanoprobe
53 Component Dependency 64 Precarious Project K orean Research Team Develops
Core Components for iPhone POSCO’s Steel Plant Project in Thinnest Probe Made of Gold
6 Made by Korean Companies India in Limbo Quantum Dots
Including Samsung 65 Expanding or Slimming? P aving Way for Paper-thin
54 Diff erences in Similarity Korean Steel Industry Takes Displays
Apple, Samsung, Google Toe-to- Mixed Stances Woven Solar Cells
Toe in Smart Watch Market 66 Vaccine Independence New Type of Solar Cell Developed
55 Concern over Monopoly Korea to Become World’s Fifth for Wearable Devices
Google's Mobile OS Monopoly Strongest Vaccine Country
Encouraged by Reverse 67 Energy Plant Specialist MICE
Discrimination SK E&C Hits Contract Jackpots in
56 Entry-tier Leader North America 72 GTI Expo 2014
Lenovo Beats Samsung in Global 68 Healthcare Competition F estival of Northeast Asia to be
Entry-Tier Smartphone Market Healthcare Information Held in Gangwon Province
TO OUR READERS 06
Korea’s Most Influential Business Monthly Since 1983
Korea Needs New ICT
Strategy
Chairman: Han Kon-ju
Senior Advisor: Kim Kook-hyun
Publisher & Editor-in-Chief: Park Jung-hwan

Managing Editor: Matthew Weigand
General Editor: Lee Kwang-soo
Culture/Tourism Editor: Choi Mun-hee Korea has failed over and over at global-
Supplementary Editor: Lee Song-hoon
Senior Repoter: Jung Yeon-jin izing its new technologies and leading
Reporter: Cho Jin-young, Lee Sang-yong, Chun Hyeon-jin,
Nam Jong-ok, Lee Sung-yon the innovation of the international ICT mar-
US Correspondent: Clair Go-eun Chun
Contributing Writers: Seok Joon, Suh Bo-yun, Gho Chang-soo ket. Smartphones, 4G mobile telephony, MP3
Designer: Lindsay Cha
Executive Vice President: Choe Nam-suk players, social networks, and mobile payments
Senior Ad & Marketing Manager: Kim Nam-ju
Advertising Manager: Jung eui-jung are just a few examples. Nowadays, the U.S. and China, not Korea, are spear-
Administration Manager: Jung Min-hee
Circulation Manager: Lim Moon-joo heading the growth of these markets.
PUBLISHED BY : BusinessKorea Co., Ltd. : 301 Samdo Building, Alibaba, the largest e-commerce company in China, recently listed itself
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Mailing Add.: 301 Samdo Building, on the New York Stock Exchange to become the fourth-largest IT company
12-1 Yeoido-dong, Yeongdeungpo-gu, Seoul, Korea 150-010
Tel: [phone] Fax: [phone] in the world and record 170 trillion won (US$162 billion) in annual sales in
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Printed by Hwashin Printing Tel: [phone] its 14th year of business. Its online payment service Alipay is now compa-
Overseas Representatives
rable to PayPal.
Australia
McLean Media Representations Pty., Ltd. China used to be regarded as a follower in the global ICT industry, but
P.O.Box 544, Newtown NSW 2042, Australia
Tel: [phone], Fax: [phone] it is not so any longer. In contrast, Korea, which developed advanced infor-
Belgium
Staf Wuyts, AD International mation and telecommunications technologies least a decade earlier than its
Bld. Lambermont 140 B-1030 Brussels, Belgium
Tel: [phone], Fax: [phone] rivals, is experiencing a crisis. It has had to witness its innovative technolo-
Canada
Globe Media International gies commercialized first by the U.S. and China on repeat occasions.
444 Front Street West, Toronto, Ontario, Canada M5V 2S9
Tel: [phone], Tlx: 06-219629, Fax: [phone] For example, Samsung Electronics unveiled the world’s first Windows
Finland
Seppo Lehtinen, Seppo Lehtinen Oy OS-based smartphone, MITS, back in 2003. However, it lost the market
Fredrikinkatu 33 B, 00120 Helsinki, Finland
Tel: [phone], 647412, Tlx: 12-2814 sigco sf, Fax: [phone] initiative to Apple due to the lack of a globalization strategy. Wireless broad-
Germany
Franz Brunsing, Industrial Export Services band, also known as WiBro, was put into commercial use in 2006, five years
Buttgenweg 18, D 4000 Dusseldorf 11, Federal Republic of Germany
Tel: [phone], Tlx: 8587465 SERV D, Fax: [phone] ahead of LTE, but disappeared after a failure of globalization, too. In the MP3
Hong Kong
Serina Cheung, Managing Director, Media Services Network player industry, Korea has had to lose patent fees amounting to three trillion
10/F Flat A, Sun Hey Mansion, 72 Hennessy Road, Wanchai, Hong Kong
Tel: [phone], Fax: [phone] won (US$2.8 billion). Cyworld, one of the world’s first social networks, lost
Indonesia
YP.oTl.y M deE DRIiAveNrEaT INTISARANA its market leadership to Facebook, while overlooking the emergence of the
Kerayoran Baru, Jakarta Selatan 12110, Indonesia
Tel: [phone] Fax: [phone] mobile era. Danal, which developed a mobile phone-based payment service
Italy
Carlo E. Calcagno, Studio Calcagno Srl, ahead of any others in the early 2000s, is still struggling to increase its global
International Media Representative
Via Copernlco, 22-20125, Milano, ltaly market share.
Tel: [phone] Fax: [phone]
Japan Such failures may result in part from the too small local market for glo-
Japan Advertising Communications
Three Star Building, 3-10-3 Kanda Jimbocho Chiyoda-ku, Tokyo 101 balization, but the most fundamental cause of this situation is a lack of the
Tel: [phone], Fax: [phone]
Netherlands government’s future ICT strategy. In the past, the government failed to sys-
A.A. Van der Graaf, Office Manager
Publicitas b.v., Maassluisstraat 414, 1062 GS Amsterdam, Netherlands tematically support companies with innovative technologies, and actually
Tel: [phone], Tlx: 11656 PUBAM NL, Fax: [phone]
Philippines hindered them with unusual regulations besides. For instance, mobile carriers
Mr. Paul Ligones, ASPAC
P.O.Box 7226, Domestic Airport Post Office limited the WiFi connection of the MITS because the government insisted
Tel: [phone], Tlx: 64838 LTA BCPN, Fax: [phone]
Singapore upon the national platform standard of WIPI for feature phones, blowing any
Hoo Siew Sai
Major Media Singapore Pte Ltd., 6th Floor, 52 Chin Swee Road opportunity for the growth of the smartphone industry outside of Korea.
Singapore 0316
Tel: [phone], Fax: [phone] Fortunately, Korean companies have managed to dominate the global
Sweden, Norway and Denmark
Sten Janson, Business Books in Saro AB smartphone market. However, Chinese manufacturers are now poised to
Gihlsrovagen 19, S-43040 Saro, Sweden
Tel: [phone], Fax: [phone] catch up with them with cheap handsets while Apple is preparing a counter-
Switzerland
Joseph Pollet, Managing Partner
IPP International Publications Partners blow with the iPhone 6 and iPhone 6 Plus.
P.O.Box 3329, CH-4002 Basel Tel: [phone], Fax: [phone]
Taiwan The ICT industry of Korea has to seek new growth drivers based on its
LFelowoirs 1 I1n-t1’l 4M, eNdoia. 4S6e, rSviecce.s 2 C, Tou.,n L Htdu.a South Road, Taipei, Taiwan, past accomplishments. The creative economy drive of the Korean govern-
Republic of China
Tel: [phone] or 7087727, Fax: [phone] ment cannot be achieved with assistance for venture firms and start-ups
Thailand
Anthony Sharma, Thai Representation Ltd. alone. More systematic and strategic backup has to be provided for the Kore-
Thai Representation-867 58 Sukhunvit 101, Prakanong, bangchak, Bangkok
10260. Thaliand an IT flagship companies for them
Tel: [phone] Fax: [phone]
United Kingdom to fare better in the global arena.
Anthony Tumer, Managing Director, The Colin Turner Group
City Cloisters, 188-196 Old Street, London EC1V 9BX
Tel: [phone], Tlx: 261140 TURNER G, Cable: TURNERSYND
LONDON ECI
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Mrs. Clair Chun / U.S. Correspondent
390 17th ST NW #4065 Atlanta, GA, 30363 Publisher & Editor-in-Chief
Tel:[phone] Email:[email protected]
FOCUS
Enhanced Standards for Auto Gases
Obliged to Abide by Either
the Greenhouse or Fuel Effi ciency
Standards
The emissions standards for automo- of Strategy and Finance, and Ministry The government decided to lead fuel
bile greenhouse gases is to be low- of Trade, Industry and Energy agreed efficiency technological development in
ered to 70 percent of the current level by to enhance standards for average green- the industry by approving the maximum
2020, and the fuel efficiency standard is house emissions and fuel efficiency to of 7g/km after listing the technologies
to be enhanced by more than 40 percent. the level of advanced countries by 2020 capable of reducing greenhouse gas and
The Ministry of Environment and instead, and delay the subsidy system enhancing fuel efficiency.
Ministry of Trade, Industry and Energy of low carbon vehicles at “the 30th Furthermore, the government plans
announced on Sept. 10 that they will economic ministerial meeting” held on to make a low carbon vehicle friendly
pre-notify the “average greenhouse Sept. 2. environment by counting vehicles with
gas emissions and fuel efficiency stan- More kinds of vehicles will be mon- less than 50g/km of emissions as equiva-
dards for automobiles in the next term itored for their greenhouse gas emis- lent to 1.5 vehicle sales, and to count as
(2016~2020)” with the new regulations sions and fuel efficiency performance. 2 vehicle sales those with no emissions
on Sept. 11. Currently, only sedans and vans less at all.
According to the new criteria, the than 3.5t and a capacity of less than ten
automobile greenhouse gas emission passengers are supervised. However, EV’s Global Competitiveness
limit is to be enhanced to 97g/km by vans under the capacity of 15 passengers
to Be Lowered
2020 from the current standard of 140g/ and freight cars lighter than 3.5t will be
km. The fuel efficiency limit is also to included. As the low carbon incentive system
be enhanced from 17km/l to 24.3km/l. For vans and freight cars with a is behind schedule, the automobile man-
These figures are definitely above capacity less than 15 passengers, green- ufacturers in Korea are feeling relieved.
average, even compared to the automo- house gas emissions is limited to 191g/ However, some fear that Korea might
bile greenhouse gas emission standards km and fuel efficiency has to reach be left out of the global environmen-
of major advanced countries. Converted 14.1km/l at present. These standards will tally-friendly automobile market. The
into the measurement methods of Korea be reinforced to 166g/km of greenhouse low carbon vehicle incentive system,
(complex mode), the limits of Europe, gas emissions and 15.6km/l of fuel effi- in which automobiles with low carbon
Japan and the U.S. are 91g/km (by ciency. emissions receive subsidies and those
20201), 100g/km (by 2020), and 113g/ Considering the international trends with a lot of carbon emissions get fines,
km (by 2020) respectively. in which rules over small automakers was scheduled to become effective next
Automobile Industry & Company are intensified, the government plans year. However, the Korean govern-
companies are obliged to abide by either to apply 8 percent relieved standards to ment recently decided to delay the sys-
the greenhouse or fuel efficiency stan- automobile manufacturers that sell less tem until 2020 due to strong opposition
dards, and will be fined if they fail to do than 4,500 vehicles as of 2013. Cur- from the industrial sector. Automakers
so. rently, these automakers see 19 percent altogether welcomed the decision, say-
The related departments including relieved standards based on sales in ing that they earned some more time to
the Ministry of Environment, Ministry 2009. develop low carbon vehicles.
2014 | 08 09
The problem is that global automo-
bile Industry & Company companies are
actively attempting to predominate the
market by introducing electric vehicles
and plug-in hybrid electric cars. Even
though sales of these vehicles are low
at the moment, the companies aim
to establish the foundations for future
growth considering the huge growth
potential of the market.
In our neighboring countries of
Renault-Samsung's fully electric SM3ZE, which first came out in 2007.
Japan and China, both government and
industry are promoting environmental-
ly-friendly vehicles. Alliances of auto- vehicle. The Mitsubishi i-Miev is also electric vehicles continue to exist, glob-
makers are building infrastructure for an considered to be one of the major elec- al companies such as Volkswagen are
electric vehicle charging system, and the tric vehicles in the global market. The competitively planning to launch elec-
government is encouraging the devel- Japanese automobile industry expects tric vehicles. Tesla even announced the
opment of environmentally-friendly that the positive feedback loop of the construction of a production factory for
automobiles by providing exceptional expansion of electric vehicle charg- electric vehicles in China within the next
benefits. ing infrastructure and advancement of four years. In addition, the Chinese gov-
According to KOTRA's Nagoya electric vehicle-related technologies by ernment is actively promoting two goals
Office in Japan, Japan recently estab- automobile manufacturers will be suc- of improving air quality and develop-
lished a “Nippon Charge Service” cessful. ing environmentally-friendly automo-
through the joint investment of Toyota, In China as well, the electric vehi- biles by enthusiastically pushing policies
Honda, Nissan, and Mitsubishi. The cle market has been boosted, as U.S. like environmentally-friendly buses and
purpose of this service is to operate and electric vehicle company Tesla Motors electric taxis.
manage electric vehicle charging sys- started to build electric charging sta- As of last year, 95,000 electric vehi-
tems, and 70 percent of the operating tions. Tesla officially entered the Chi- cles were sold worldwide, which more
costs are covered with government sub- nese market last April by introducing the than doubled compared to the previous
sidies. Companies jointly bear the costs Model S, and recently announced the year. Accordingly, Korea also set up the
to install charging stands, and share the construction of 400 charging stations in target to achieve 10 percent of market
profits arising from the stations. In order 120 cities in China together with a Chi- share in the electric vehicle market by
to enhance the rate of distribution, quick nese telecommunication service operator 2015. However, whether or not this plan
charging stands have been installed in China Unicom. will be promoted as scheduled is now
500 Family Mart branches nationwide. Tesla also plans to build supercharg- uncertain due to the delay of the low
Japanese automakers have started to er stations in more than 20 places capa- carbon vehicle incentive system. If this
engage in such joint investment, as there ble of charging 50 percent of a battery system becomes effective in time, the
have been complaints about existing in 20 minutes. Elon Musk, CEO of Tesla construction of electric vehicle charging
charging stations. Consumers pointed Motors, expressed his strong determi- stations would be able to start quickly
out that uncertainties arise from differ- nation in investing in China by saying, within this year. But all these plans are
ent charging and billing systems at each “China will be the biggest market of becoming loose as well.
station. There were two separate compa- Tesla from now on.” An industry professional pointed
nies operating electric vehicle charging The Chinese government played the out, “Even if we successfully develop
stations, CHAdeMO and Japan Charge most important role to create the cur- and introduce high quality environmen-
Network, but the two systems were not rent environment. China is considering tally-friendly vehicles after five years,
compatible with each other due to differ- significantly lowering the tariffs and global companies will have already
ent verification systems. value-added taxes for electric vehicles, dominated the environmentally-friendly
In the Japanese automobile indus- which account for more than 30 percent automobile sectors in big markets such
try so far, there have been strong voices of the price of automobiles. Although as China, South America, and India. If
saying that sound electric vehicle infra- local automobile manufacturers are imported vehicles that meet the strict
structure needs to be established in strongly opposed to this idea, the gov- environmental standards of Europe
accordance with the status of the world’s ernment is very determined. The City penetrate the Korean market more and
biggest electric vehicle exporter. A total of Shanghai provided 3,000 free license more, domestic environmentally-friend-
of 110,000 Nissan Leafs were sold last plates for imported electric vehicles this ly vehicles will have no room to stand.”
year in Japan, the most popular electric year. Since unprecedented benefits for
NATIONAL : DIPLOMACY
Debut on Global Diplomacy Stage
President Park Geun-hye Travels to
North America for Keynote Speech at
U.N., Summit with Canada
President Park Geun-hye departs from the Seoul Air Base in the afternoon of Sept. 20 to visit Canada and New York.
President Park Geun-hye departed on Sept. 20 for state visits Her participation in the conference is highly meaningful
to Canada and the United States. She is planning to stay in as her debut in the U.N. since the inauguration in February
Canada until Sept. 22 and in the United States until Sept. 24 for last year. At the same time, it is expected to result in a higher
the 69th United Nations General Assembly, the U.N. Climate standing of Korea as a member of the UN Security Council,
Summit, and the U.N. Global Education First Initiative. This is Economic and Social Council, and Human Rights Council that
the first time in 15 years that the Korean President has made a leads the discussion of global issues on climate change, fight
state visit to Canada. against terrorism, and education and development.
The President will deliver a keynote speech at the general The president is expected to have bilateral talks with some
assembly on Sept. 24. She will speak about the Korean govern- countries, too. Japanese Prime Minister Shinzo Abe, who sug-
ment’s commitment to contribute to the three agendas of inter- gested a summit meeting via former Prime Minister Yoshiro
national peace and security, human rights promotion, and eco- Mori staying in Korea for the Asian Games, is scheduled to
nomic and social development. Also, she is going to mention attend the general assembly as well, and thus summit talks
her master plan for Korean reunification based on the Korean could take place between Korea and Japan. Both the Presi-
Peninsula Trust-building Process and the Northeast Asia Peace dent and the Prime Minister are slated to join the U.N. Climate
and Cooperation Initiative in order to ask for the understanding Summit on Sept. 23. Still, the possibility is low, because Japan
and support of the international community. is maintaining its conservative stance while showing no mean-
The specifics of her speech are drawing much attention, ingful change regarding the history issue.
with North Korean human rights issues emerging as a key In the meantime, North Korean Foreign Minister Lee Su-
agenda of the general assembly. The growing number of atroci- yong will attend the general assembly for the first time in 15
ties being committed in the Middle East by ISIS has caused an years as a minister from Pyongyang. He is scheduled to make
increasing number of Western states to take a firm stance on a keynote address on Sept. 27, but will arrive in New York as
human rights issues. Under the circumstances, human rights early as Sept. 20. He could meet with South Korean foreign
in North Korea is likely to be discussed as a major topic in the affairs minister Yoon Byung-se, as both are staying together
general assembly. for six days. “I hope that North Korea will answer our request
2014 | 10 11
for a high-level meeting,” President Park Geun-hye had said on in the delegation are expected to launch projects for two-way
Sept. 16 at her interview with Reuters, adding, “I look forward cooperation and assistance for smaller firms, too.
to an opportunity for dialogue between foreign ministers of “President Park Geun-hye’s state visit to Canada at this
both Koreas.” time, which commemorates the 51st anniversary of diplomatic
At the U.N. Global Education First Initiative, President relations between the two countries, will be a cornerstone of
Park will give a speech as a representative of the group of the bilateral relations for the next half century, in which both
champion countries. There, she will speak about the Korean nations will be in pursuit of mutual prosperity,” the Presidential
government’s education strategy and international contribu- Office explained.
tions, while expressing Korea’s commitment to the education The members of the Economic Mission to Canada are
agenda for the future as the head of the country hosting the as follows: Federation of Korean Industries Chairman Huh
World Education Forum 2015. Chang-soo, Korea International Trade Association Chair-
Then, the President will participate in the U.N. Security man Han Duk-soo, Korea Chamber of Commerce & Industry
Council conference on the topic of foreign terrorist combat- Chairman Park Yong-man, Korea Federation of Small and
ants, which is hosted by U.S. President Barack Obama. As the Medium Business Chairman Kim Ki-moon, Association of
first Korean President in the conference, she will remark on the High Potential Enterprises of Korea Chairman Kang Ho-gap,
necessity of international cooperation with and Korea’s contri- Samsung Electronics Vice Chairman Kang Ho-mun, Hyun-
bution to the fight against foreign terrorist combatants in the dai Motor Company President Jung Jin-haeng, Hanwha Cor-
Middle East. poration President Park Jae-hong, SK E&C President Choi
On Sept. 23, she will attend the U.N. Climate Summit for Kwang-chul, LG International Corporation Representative
political preparation for the new climate regime that will be Director Song Chi-ho, Korean Air President Ji Chang-hoon,
effective from 2020. The Korean government’s endeavor for Doosan Representative Director Park Sung-chul, GS Global
the creation of new economic growth drivers based on climate President Jung Taek-geun, CJ Cheil Jedang Representative
change response and its role as a bridge between advanced and Director Kim Chul-ha, Tong Yang Moolsan Chairman Kim
developing economies in tackling climate change are to be Hee-yong, Kyobo Life Insurance Chairman Shin Chang-jae,
explained there. Daewoo Shipbuilding & Marine Engineering President Ko
She will deliver four speeches and presentations during Jae-ho, Amore Pacific President Shim Sang-bae, SM Group/
her visit to the U.N. The keynote at the U.N. General Assem- TK Chemical Chairman Wu Oh-hyun, Fashion Group Hyungji
bly will be made in Korean, according to diplomatic customs. Chairman Choi Byung-oh, Komac Heavy Industries Rep-
However, some of the others will be delivered in English. resentative Director Jo Bung-koo, Shinil Frame Represen-
Also scheduled are discussion sessions with major New tative Director Roh Sang-chul, World Innotec Representa-
York-based research institutions such as the Korea Society, the tive Director Lee Han-wook, Daeho Industry Representative
Asia Society, and the Council on Foreign Relations. Opinions Director Ku Ja-ok, Autogen Chairman Lee Yeon-bae, Onegiup
as to the political situation in the Korean Peninsula and North- Representative Director Won Bu-sung, Mson Representative
east Asia are to be exchanged, and Korea’s diplomatic and Director Lee Min-jae, Airvita Representative Director Lee
security policy will be introduced. Kil-soon, Daemo Engineering Representative Director Lee
Won-hae, Bow Industrial Corporation Chairman Kim Myung-
State Visit to Canada ja, Golf Zone Chairman Kim Young-chan, Samjin Industrial
Before her visit to the U.S., President Park will visit Can- Representative Director Hwang Sun-bok, Keyyang Precision
ada from Sept. 20 to 22 at the invitation of Canadian Prime Representative Director Jung Byung-ki, Artcom Representa-
Minister Stephen Harper, who visited Korea in March this tive Director Choi Jin-woo, Seum Engineering Representative
year. She will meet with Canadian Governor General David Director Kim Young-taek, Kumkang Corporation CTO Bang
Johnston and have summit talks with the Prime Minister so Man-hyuk, Eunsan Construction Chairman Kim Kyung-ok,
that both countries can achieve more constructive relations HS International Representative Director Kim Byung-hoon,
based on a bilateral FTA. After the summit for the discus- CRTech Representative Director Roh Sun-hee, Redrover Rep-
sion of energy resources utilization, scientific and techno- resentative Director Ha Hoe-jin, Korea Electric Power Cor-
logical development, cultural exchange and the like, she will poration President Jo Hwan-ik, Korea Trade Insurance Cor-
visit Koreans residing in Canada and attend the Korea-Canada poration President Kim Young-hak, Korea Trade-Investment
Business Symposium hosted by Korean and Canadian enter- Promotion Agency President Oh Young-ho, Korea Institute for
prises. Industrial Economics & Trade President Kim Do-hoon, Korea
The list of the 48 economic delegation members to accom- Institute of Geoscience & Mineral Resources President Kim
pany her in Canada was finalized on Sept. 18. The members Kyu-han, Korea Evaluation Institute of Industrial Technology
of the mission consist of entrepreneurs from various industrial President Lee Ki-sup, Korea Instittue of Energy Technology
sectors including automobiles, auto parts, machinery, energy Evaluation & Planning President Ahn Nam-sung, and Korea
development, alternative energy, cosmetics, and cultural con- Association of Small & Medium Industry Chairman Park Sang-
tent. The 13 public organizations and associations included hee.
NATIONAL : NORTH KOREA
Mobile Prevalence in N. Korea
1 in 10 North Koreans Might Have
Mobile Phones
As the number of mobile phone users has reached two
million in North Korea, mobile phones have become a
basic necessity for living. One of ten North Koreans now has a
mobile phone.
According to a research report on mobile phone usage
trends in North Korea conducted jointly by Johns Hopkins
School of Advanced International Studies (SAIS) and Kim
Yeon-ho, a journalist at the Voice of America (VOA), mobile
phone services are provided in Pyongyang and 100 other cities
in North Korea. These services cover 14 percent of the geogra-
phy of North Korea and 94 percent of the total population.
Mobile telecommunication services in North Korea start-
ed in November 2002 when Loxley Pacific of Thailand pro-
vided 2G GSM services together with Korea Post and Tele-
communications Corporation (KPTC) under the Ministry of
Posts and Telecommunications of North Korea. Mobile tele-
communication services were then suspended when rumors
of terror attacks were being spread after the big explosion at ogy news of North Korea, some North Koreans obtained SIM
Ryoungchon Train Station in April 2004. Services were restart- cards for mobile phones while foreigners were visiting North
ed in December 2008. Koryolink, a joint venture between Korea, so that North Koreans could temporarily use interna-
Egyptian company Global Telecom Holding with 75 percent tional phone calls and the external Internet.
equity, formerly Orascom Telecom Holding, and KPTC, under Accordingly, the propagation of mobile phones in North
the Ministry of Posts and Telecommunications of North Korea, Korea could impose new influences on the North Korean
started 3G services at that time, which have lasted until today. regime.
Orascom announced that the number of its subscribers But since the popularization of mobile phones in North
is two million. Considering that one million soldiers are not Korea is under strict control, and the regime routinely practices
allowed to use mobile phones due to security reasons, and wiretapping, this trend is not likely to lead to a “North Korean
three million children under the age of ten are too young to Spring,” according to the report.
use mobile phones, two million subscribers among 24 million In the mean time, North Korea is building hotels and train-
North Koreans means that one out of ten North Koreans uses ing hoteliers to attract foreign tourists. According to its interna-
mobile phone. In Pyongyang, where assets are concentrated, tional propaganda magazine Tongil Sinbo Weekly, such hotels
one out five residents is assumed to use a mobile phone. are to be built across the country, even in counties far from
However, as the average wage of factory workers in North Pyongyang.
Korea is 3,000 won, it is hard for them to afford the prices of Since the inauguration of Kim Jong-un, the North has built
mobile phone devices and the resulting phone bill. So some new hotels and remodeled existing ones in an effort to develop
point out that subscriber numbers are exaggerated. Further- its tourism infrastructure. The Kalma Hotel and Saenal Hotel
more, based on per capita GDP in North Korea, this statistics is opened in Wonsan, Gangwon Province in July last year. Anoth-
considered to be unrealistic. er large hotel was set up in the Mashiknyeong Ski Resort in
Others claim that Orascom is not likely to exaggerate sub- December, too.
scriber information intentionally, as their performance reports The country is trying to make the most of its tourism
are very important in investor relations and tax issues. resources located in major tourist attractions and various local
The fact that mobile phones are getting very popular in areas. Some experts point out that North Korea is planning to
North Korea is clear, though. According to North Korea Tech, give foreign tourists greater access to previously prohibited
a U.S.-based website focusing on recent science and technol- areas.
2014 | 12 13
Effects of Unification
Unii cation of Korea to Create
US$200 Billion of Economic Eff ects
for Surrounding Nations
Minister of Unification Ryu Gil-jae delivered a congratula- lion.”
tory speech at the international seminar for “analyzing Fukao Kyoji, professor at Hitotsubashi University of Japan,
benefits and costs of Korean unification for four surrounding said, “If Korea is unified peacefully, the GDP of Japan will
countries” hosted by the Korea Institute for International Eco- increase by US$24.6 billion (0.5 percent of GDP of Japan in
nomic Policy (KIEP) in the Conrad Hotel located in Yeouido, 2015) and 210,000 new jobs will be created due to an increase
Seoul on Sept. 17. in exports.” Professor Fukao assessed, “Demand expansion
Professionals from the U.S., China, Japan, and Russia all from a unified Korea will increase the GDP and employment
claimed that unification of Korea would be a jackpot for all of trading counter-parties such as the U.S. and Japan, which
the surrounding countries. Over US$200 billion in economic are currently suffering from low demand.” Alexander Zhebin,
benefits were calculated from analyses on various simulations. director of the Centre for Korean Studies at the Russian Acad-
Marcus Noland, executive vice president at the Peterson emy of Sciences in Moscow, diagnosed, “Unification through
Institute for International Economics, evaluated, “If Korea is reconciliation and cooperation is the most likely scenario. In
unified upon the rapid breakdown of North Korea, and North this case, Russia will be able to earn US$5 billion through con-
Korea is absorbed into South Korea, economic sanctions on necting an oil pipeline.” He also expected that trading with
North Korea will be lifted immediately without any complicat- Korea will increase and investment in the Far East will expand.
ed legal and political problems. Then trading with the U.S. will However, not everyone projected a positive outcome at this
increase at least US$960 million, and growth will reach US$20 event. Sung Han-kyung, a professor of the School of Econom-
billion after ten years.” ics at the University of Seoul, pointed out, “Imports might
Jin Jingyi, professor at Peking University, analyzed, “If surge right after unification, and this could lead to high vola-
Korea is unified peacefully, the GDP of three Northeast prov- tility in foreign exchange rates. Foreign loans might increase
inces in China – Liaoning, Jilin and Heilongjiang – which as well.” Regarding this, Professor Fukao added, “Right after
have been underdeveloped due to insufficient trading and for- unification, the current deficit of Korea would reach 10 percent
eign investment, will enhanced by more than US$162.6 bil- of GDP due to rising imports.”