[South Korea] If you have the world's highest household debt, you don't have enough disposable income - If you don't spend money, it's just bad manners.
2022-06-20
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Private/government debt is ２５４%
In a statement distributed in advance of the conference, Professor Ham Joon-ho of Yonsei University Graduate School of International Studies, who served as a member of the Bank of Korea's Financial and Monetary Committee, stated, ``Korea's macro leverage (private and government debt) level has expanded to ２５４% of GDP. ” he pointed out.
Household debt is １０４.２% of GDP
The household debt balance has continued to expand for １６ years, reaching a record high of １,８５０.９ trillion won (approximately １７６.９８７１ trillion yen) in the April-June ２０２１ period. According to a study by the Institute of International Finance (IIF), Japan's GDP ratio was １０４.２%, the highest among ３７ major countries and regions. Incidentally, the countries other than South Korea are followed by Hong Kong (９２.０%), the UK (８９.４%), and the US (７９.２%).
Global trend of interest rate hikes
On the １５th, the Federal Reserve Board (FRB), the central bank of the United States, announced the first major interest rate hike in about ３０ years. The policy rate will be raised by ０.７５% to a range of １.５０ to １.７５%.
Prior to this, South Korea announced that it would raise its policy interest rate from １.５% to １.７５% in May. The rate was set at １.５% in April, making this the second consecutive month of interest rate hikes. This will also be a severe blow to those who are burdened with household debt.
South Korea's per capita GDP is approaching that of Japan. According to the ２０２１ IMF announcement, Japan's price is $３９,３４０ and South Korea's price is $３４,８０１. However, Japan's household debt is around ６６-７%.
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Economy of the Yi Dynasty Korea "Japan introduced a monetary economy" The central bank of the Korean Empire is Japan's No. 1 bank.
A monetary economy did not develop on the Korean Peninsula
Repeated inflation due to mass production of currency
If there is no money economy, there is no capitalism
Introduction of loans and Japanese banks managing customs
Japan bailed out the past two currency crises
In the early Joseon Dynasty, exchange was limited to salt, a proprietary product, and cloth, rice, and grains. After that, linen, cotton cloth, rice, etc. were traded as physical currency. Kozo coins were issued in 1401 to encourage currency, but they did not become widespread.
In 1423, a bronze coin called Joseon Tsubo was created, and in 1464, a coin was coined, but these were used for the purpose of collecting taxes for the state and were not distributed to the general public. In 1678, the Johei Tsuho coin was minted.
This coin was issued for about two centuries, but confusion occurred because each government office was allowed to mint it. In 1866, Daewongun minted 100 coins to rebuild finances and rebuild Gyeongbokgung Palace.
Rather than rebuilding finances, they were mass-produced, causing the value of the currency to plummet and its currency to be denominated in 1868. Although the Gosen was issued in 1883, its value quickly plummeted and its currency was banned in 1895. Cupronickel coins were issued in 1892, but they were used as supplementary coins during the gold standard system.
In other words, the economy of the Korean Peninsula is based on barter. Slaves were also sold in exchange for five slaves and one cow.
After the Sino-Japanese War, Japan introduced loans to overcome the financial difficulties on the Korean Peninsula. Customs belonged to the Daiichi Bank of Japan, and customs duties were collected in Japanese currency. The money consolidation project was financed by loans from Japan, and Japan's First Bank became the central bank of the Korean Empire.
Without a money economy, there can be no capitalist economy. Japan modernized the Korean Peninsula and developed the market, including the monetary economy and the circulation of capital. Even now, when South Korea conducts transactions with other countries, letters of credit for accounts payable are issued by Japanese private banks. Without this letter of credit, Korean companies cannot conduct international transactions.
Japan also provided relief during South Korea's currency crises in 1997 and 2008. The very currency that is the backbone of the Korean economy becomes something that Japan gives credit to. Although Japan no longer issues currency haphazardly and causes catastrophic inflation as it did during the Joseon Dynasty, no country has ever experienced a currency crisis twice in 10 years. In that sense, it can be said that Wong remains vulnerable. This is the history of currency on the Korean Peninsula up to the present day.
Decrease in disposable income due to mortgage loan
Housing loans are the largest component of household debt. The skyrocketing price of land in Seoul continues to skyrocket, forcing many to borrow large sums of money to purchase apartments. As a result, even if GDP and wages rise, most of the money goes toward repaying household debts, resulting in less disposable income. I don't have any money to spend.
Even after salaries are paid, the money goes straight through the tunnel and is returned to financial institutions, where it is returned to the market. This is the reality of GDP per capita in the Korean economy.
A traveler who just has bad manners
As the coronavirus pandemic begins to subside and overseas travel is gradually lifted, travel to Japan is expected to become a boom again in South Korea. It's not that they like Japan. The above reasons are largely responsible for why Japan is chosen as a nearby travel destination.
And just because you come to Japan doesn't mean you have to spend money. There are quite a few groups that find faults, point them out, and complain to each other. It is said that Korean tourists just have bad manners.
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Looking at Mr. Yoon Suk Yeol's argument, the content of the liberal camp, which is the opposite of the pro - China and pro - North Moon Jae In administration
- Regarding diplomacy: Diplomacy is not visible in the Moon Jae-in government. His philosophy and values are also unclear. A clear value system should make our future predictable, but this is lacking.
These include the rule of law, liberal democracy, the value of human rights, and a codified international legal order. We must maintain and develop relationships between countries that share this same understanding.
[Yin Seok-yue's claim]
Regarding historical issues: We must always clearly define past history based on truth, and point out what needs to be pointed out. In matters of reality and the future, the interests of the people and the nation must be considered. After all, it's for future generations.
About Kim Jong-un: Kim Jong-un is judged to be a dictator in the light of modern civilized nations and liberal democratic systems. At the same time, he is a very decisive figure for the denuclearization of North Korea, for the Korean peninsula and for sustainable world peace, so he is a partner who must keep an outlet for dialogue open.
Security and defense: The right direction is for the United States to strengthen the expansionary restraint it provides to friendly countries through intercontinental ballistic missiles.
About the United States: The Biden administration of the United States is determined to overwhelm China with cutting-edge technology and to bring its standards to China. Global business will be difficult to establish if companies turn their backs on the United States, so the government must lead companies with ``strategic clarity.''
THAAD: Regarding the deployment of the THAAD system, it is ``clearly our sovereign territory,'' but it is a ``horizontal relationship with China.''
Regarding China: In order to insist on withdrawal of THAAD deployment, China must first withdraw long-range radars deployed near its own borders. Fulfill the agreement to normalize relations between South Korea and China unless additional THAAD deployments are made.
Contents are normal. The impression is that it follows the trend of the latter half of the Park Geun-hye administration. Since it is difficult to win with the current point difference, the focus will be on how concrete this content can be and whether it can create a message that can gather floating votes.
South Korea violates international law of the sea by not allowing the Japan Maritime Self-Defense Force the right of innocent passage - The Rising Sun flag is a reminder of the past.
The right of innocent passage is a right granted to United Nations member states
South Korea rejects the Japan Maritime Self-Defense Force because of the Rising Sun flag
Violation of China's territorial waters does not fall under innocent passage
Because it reminds me of the past...?
International law of the sea provides ships with the right of innocent passage. Even if ships are within the territorial waters of a coastal state, they may pass without obtaining prior permission from the coastal state, provided that the navigation is not considered harmful as stipulated in Article 19-2 of the United Nations Convention on the Law of the Sea. Thing. In this case, you will need to display the flag of your affiliation. It is a national flag or military ensign.
When considering the Rising Sun flag issue in terms of the meaning of this treaty, South Korea does not recognize the right of innocent passage to the Japanese Maritime Self-Defense Force, even though it has ratified the International Convention on the Law of the Sea. In other words, it is a violation of international law. On the other hand, Japan recognizes the right of innocent passage for Korean ships. The reason is that Japan has ratified the International Convention on the Law of the Sea.
In response to a question in the Diet about the relationship between Chinese ships repeatedly invading territorial waters around the Senkaku Islands and the right of innocent passage, the government decided in June 2021 that this does not constitute innocent passage as recognized under international law. expresses an opinion. The reason for this is that China claims sovereignty over the Senkaku Islands, which are part of Japan's territory, and that violating its territorial waters does not constitute innocent passage, but on the contrary, it is a violation of international law.
Has the South Korean government ever issued an official opinion regarding the Rising Sun flag and the right of innocent passage for Japanese ships, including those of the Japan Maritime Self-Defense Force? It should be released. Saying that you don't like it because it reminds you of the past is no basis for denying the right of innocent passage. This is because there is no such thing in Article 19-2 of the United Nations Convention on the Law of the Sea, which states that navigation is considered harmful.
Yoon Seok - yeol's digital strategy in Korea.World - class? Does he know what 6G and AI mean? This is an excerpt from an article made by Yun Seok-Yeol of the opposition People's Power, who is running in the Korean presidential election. It seems that Japan is aiming to become a digital hegemony. And South Korea will lead the way in 6G...
Presidential candidate Yoon Seok-yeol announced on the 28th that Korea will become a digital economic hegemon by training ``1 million digital talents.'' Candidate Yoon pledged to create a flexible work environment that suits the characteristics of the IT industry, and raised the need for flexible work, saying, ``Is it possible to restrict people from working from home for more than eight hours?'' I emphasized it again.
Candidate Yoon's comments are expected to be controversial as the Labor Standards Act already restricts working hours to over eight hours. Candidate Yoon held a press conference in Yeouido, saying, ``In order to reduce the technological gap with developed countries, we will raise next-generation artificial intelligence technology to the highest level in the world.'' We will introduce solutions and build the best AI system."
It seems that within three years we will reduce the technological gap with developed countries and raise it to the highest level in the world. I don't understand the meaning at all.
Candidate Yoon's vision is for South Korea to build the world's fastest and most powerful digital platform, export it to countries around the world, and become a digital economic hegemon. Developing an artificial intelligence industry was mentioned as one of the six practical tasks for this purpose. In detail, he explained that the company will build the world's largest cloud computing infrastructure for AI that can be used jointly by universities, research institutes, and companies. For the development of the software industry, he promised, ``The digital platform government will welcome the government, introduce public software innovation products for great national service, and help the growth of capable software companies.''
Candidate Yoon pledged to build a digital infrastructure that would upgrade the national 5G network and lead the world standard for 6G, and also offered a pledge to revitalize the ``My Data'' industry, which would allow citizens to receive custom benefits. He also pledged to support the semiconductor and mobility industries and build a cyber safety net. This means building a unified cyber response system for an integrated response during a cyber crisis, and building an integrated cyber response system that utilizes artificial intelligence.
I thought what the ruling party candidates were saying was a big deal, but the opposition candidates are also making a big deal about it in other areas. Is it enough to just win the Korean presidential election?
Tokyo Olympic Summit With the possibility that Suga's general election will be held in September, is Moon Jae In trying to shake up the situation by citing summit talks and participation in the Olympics?To put it bluntly, holding a summit between Japan and South Korea will only have disadvantages for Prime Minister Kan.Shigeru Ishiba, who has been considered a candidate for the next prime minister in last year's general election, was criticized by the people as a result of his appeal for reconciliation with China and South Korea.Prime Minister Suga probably does not want to get involved before the general election.
The Korean won is falling.It exceeded 1,240 won. The reason that Japan must not make promises with the new Korean president prematurely .
The won fell to 1,243 won against the dollar.If the Fed raises interest rates in real terms, it will fall further.The main reason is that Russia's economic prospects are pessimistic. And Yoon Seok-yeol won the presidential election on March 9 and became president on May 10.Yoon called for strengthening the U.S.-South Korea alliance and mentioned the deployment of THAAD.China accounted for 24.8 percent of Korea's exports, twice as much as the U.S., the second largest exporter.When the Park Geun Hye administration decided to deploy THAAD, China imposed severe economic sanctions.China's economic sanctions are only pessimistic for investors, so Korean investment is likely to rise further and the won is likely to fall further.
Next time, South Korea will break its promise with China
![[South Korea] If you have the world's highest household debt, you don't have enough disposable income - If you don't spend money, it's just bad manners.](./upfile/409-1.webp)
