[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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In response to the Itaewon Halloween accident in South Korea, President Yoon prioritizes the settlement of the accident as a matter of national policy - The settlement of the accident is a matter of [Contents]
A barren argument if it comes down to civic consciousness
The same idea as China will not solve the problem
Could the accident have been prevented?
Sufficient predictability
There was a way to prevent the accident
Halloween in Shibuya under police guard
DJ Police in action
Closing accidents is a matter of course
After the Halloween accident in Itaewon, South Korea, there seems to be a lot of public opinion in South Korea. It seems that there are opinions on social media such as ``It's a problem with young people's manners,'' and ``Let's raise citizen awareness.'' There was even an opinion that there was a person who pushed from behind, and that person should be identified. A crowd accident is when everyone is pushed from behind.
This is exactly the same as the summary of the Shanghai accident. In the case of the Shanghai Bund accident, the conclusion was to raise public awareness in China. Of course, the issue of public awareness is not irrelevant. If you can't walk in line and keep your turn, it will easily lead to crowd accidents. But how do you explain the mass accident that occurred in Japan, which is said to be the most lined up in the world? No matter how much you raise your awareness, accidents still happen.
Minister of Public Administration and Safety Lee Sang-min appears to have become a controversial issue when he said, “The problem could not have been resolved by deploying police and firefighters in advance.” CNN and the Washington Post seem to point to problems with police security and operations. This is the correct answer. It's clear that the Chief of Administration and Safety himself is not aware of the problem, even after the catastrophe of that magnitude.
In the trial for the pedestrian bridge accident at the Akashi Fireworks Festival, the question was whether it was predictable and whether the accident could have been prevented. As for predictability, it was clear to everyone that an event would be held and many people would gather. It is said that the street where the accident happened in Seoul was also a place where many people could easily gather. In other words, it can be said that there was foreseeability .
As for whether or not the accident could have been prevented, the Akashi trial explained the physical mechanism that causes a shogi overthrow. It was proven that 13 to 15 people per square meter were densely packed on the pedestrian bridge. It was also proved that the pressure concentrates on the corners and edges of the passage. In other words, it can be concluded that there is a high possibility that fatal accidents caused by knocking down shogi would not have occurred if, at the very least, less than 5 people per square meter were arranged and spaces were created at both ends of the aisles. Humans don't die from being pushed from behind.
Only the police or security guards assigned to guard the event can direct traffic. On this day, 200 police officers were mobilized in South Korea to guard Halloween, which means the accident was preventable. The method is to secure space at both ends, and once a certain group of people pass through, they will be regulated, and after opening the space, the next group will be allowed to walk.
120,000 people visited Shibuya at its peak for Halloween last night. Many police officers are conducting walking guidance. On top of a large police vehicle, a police officer makes an announcement over a loudspeaker and gives instructions to pedestrians. This is installed in several places in the shopping district of Shibuya, and it monitors whether there are too many crowds from above and whether there are any troubles.
The police officers who make this announcement are called "DJ police" and are familiar to young people. The announcements are made with humor, and even young people who do not listen to instructions when they are in a group will listen to funny police officers. In 2013, one male and one female police officer were awarded the Chief Police Officer's Award for this novel method of guarding against crowds.
Even if you watch the video of the accident in Itaewon, you can't see the police in the middle of the street.there is almost no police officer's walk near the entrance. President Yoon said, ``The top priority of national affairs is to settle the accident and respond to it.'' This is a matter of course. Transport the injured to the hospital, and if the street where the accident occurred returns to its original state, the accident will be settled. What is necessary is to investigate the cause and formulate specific measures to prevent recurrence
Japan - South Korea relations, in which historical issues arise.Korea is rejecting Japan, which is becoming a historical issue.
What is the Japan-South Korea issue?It's a historical issue.This is a historical issue 77 years ago.The Japanese government established a joint research committee on Japan-South Korea history to make it a historical issue, not a political one, but South Korea rejected it halfway.So what will happen if Japan-South Korea relations are segregated before and after World War II?Japan and South Korea established diplomatic relations in 1965, and there was no public cultural exchange until the Japan-South Korea Joint Declaration in 1998.Japan-South Korea relations ignore the 1965 agreement, the Japan-South Korea Joint Declaration, and various other promises made by Japan and South Korea, and continue to deal with historical issues more than 77 years ago, regardless of culture or economy.
I don't know why Korea, which continues to cry out for historical issues, refuses to accept the Japanese government's attempt to turn it into a historical issue into a historical issue.Korean politicians often use the term "two-track strategy," but it is only a false diplomacy from the perspective of Japan.Japan has already proposed a two-track strategy.It is not the idea of using what is available, but simply separating historical and political issues.
The Japan-South Korea Joint Research Committee on History, which was established under the Koizumi administration, is currently not active at all.How will this solve the historical problem?
The exchange won rate has not stopped falling.The No Japan movement is a campaign to buy domestic products.Nothing will change under the chaebol economy.
South Korea's trade dependence on GDP is more than 70 percent, including the service sector.In other words, domestic demand is low and foreign exchange is directly affected.Even if foreign demand is received, it does not circulate at home and flows abroad.If the person who made the purchase contract increases the dollar by 5% at the time of payment, the payment will increase by 5%.The won-dollar exchange rate is 1,200 won, but it has been hovering around 1,200 won in recent days.
In order to maintain international competitiveness, chaebol companies such as SAMSUNG buy parts in bulk and produce them in bulk to reduce costs and sell them at low prices.In this case, large debts are always carried out and large payments are repeated, and problems arise when the value of the currency changes significantly during that period.This is the so-called default.Under these circumstances, the won's international credit rating has not increased, and South Korean companies can trade in dollars depending on the L/C of Japanese commercial banks.
South Korea experienced two foreign exchange crises in 1997 and 2008.No country will experience two foreign exchange crises in 10 years.In other words, South Korea's industrial form is vulnerable, and in short, it is trading beyond its currency capabilities.
Considering what Moon Jae In wants to do, the real intention is to socialize, control the currency, and stabilize the value of the won.Do you think the boycott is a campaign to buy domestic goods if it is reversed?
South Korea is listed by the FRB as a currency manipulator.
The reason why domestic demand is not expanding is the existence of chaebol companies.The role of chaebol companies in driving the Korean economy is important, but on the other hand, investment in chaebol companies is concentrated and other industries are not growing.In addition to the businesses run by chaebol companies, how can Korean companies grow globally?It can only be done with its own money without investment.
This structure will not change even if there is a boycott Japan.As a currency manipulator, even if it leaves the liberal economy, it will not change.It is necessary for the government to take the lead in fostering domestic demand and to attract investment in what industries to foster domestic small and medium-sized enterprises.The boycott Japan does not mean that South Korean domestic companies' sales will increase.
Moon Jae In's term of office is less than three months, and criticism from his country seems to be gathering.I think it's quite late from Japan view.
Death toll from Halloween Shogi chess accident in Seoul rises to 151 - Different countries respond differently to similar accidents.
Deadly accident occurs on Halloween in Seoul
Akashi fireworks festival accident for which police were held responsible
Shanghai accident started with suspicious report
China's return to people's responsibility
How will South Korea sum up this issue
The number of people killed in a shogi accident during Halloween in Seoul has increased to 151. This is the worst accident in terms of man-made disasters. This accident reminds me of the Akashi fireworks festival accident in Japan and the New Year countdown accident on the Shanghai Bund in China. Shogi accidents occur when players are pushed from behind in a crowded crowd, or when they step on someone else's foot and lose their balance. This chain causes a major accident.
This also happened during the Akashi Fireworks Festival, and 11 people died. However, it is impossible for the people who disrupted that arrangement to be held responsible. Problems with the police and security were investigated day after day, and in the end, a civil court ordered Hyogo Prefectural Police and the security company to pay damages. The conclusion is that it was foreseeable and that the necessary measures were not taken. In the criminal trial, one police officer and one security company were sentenced to 2 years and 6 months in prison, and 3 city employees were sentenced to 2 years and 6 months in prison, suspended for 5 years was found guilty.
Next, regarding the incident in Shanghai Bund, I was in Shanghai on the day of the accident. A Chinese person I spoke to the next day asked me, didn't you go to the Bund last night? I found out when I was asked. According to the news reports after the accident, 36 people were said to have died. From then on, it turned out to be a complete lie. On New Year's Eve, Shanghai was in a state of chaos, with people rushing to the point where it was difficult to walk, not only on the Bund, but also everywhere, including the station premises, and it would have been no surprise if an accident occurred anywhere. . If it was an accident during the New Year's countdown on the Bund, it was clear that 36 people would not have been there.
Afterwards, I was looking into how this incident was summarized in China, and came across an article called Expert Opinion. "Increase public awareness of safety, avoid danger, and avoid crowded places." In other words, public responsibility for gathering too much. It was not intended to hold the government or police responsible.
There was clearly a problem with the accident in Seoul, and it was a catastrophe in which many people died. Maybe it's because it happened right after the accident, but when I look at articles from South Korea, there doesn't seem to be any complaints about the lack of police or security. In Japan, a ruling after the accident increased the responsibility of the police and security companies for events where large numbers of people gather, resulting in an increase in the safety of citizens.
Shogi falling accidents occur in various countries, but the way each country views and deals with the problem is completely different. How will South Korea summarize this accident?
[Korea] Yoon Seok - you's inauguration speech to democracy and liberalism [full text]
Respected and dear people,
7.5 million overseas compatriots,
And to all the world citizens who love freedom
I am here today with an epoch-making vocation that must rebuild this country as a country where the people are the true masters on the basis of liberal democracy and the market economy system, and make it a country that plays a role and responsibility in the international community. I stood up.
We would like to thank all the people who have been with us in the historical setting.
Tora Wen, Former President Park Megumi, President Jacob of Singapore, President of the Central African Republic of Tuadera, Vice President of China Wang Qishan, Former President of Indonesia Megawati, Vice President Harris Emhoff Harris, Senator George Fury of Canada, We would like to express our deep gratitude to Japan's Foreign Minister Yoshimasa Hayashi and other congratulatory missions from around the world and to all the guests from Japan and abroad.
We would like to take this opportunity to pay tribute to the people who have endured great pain in the process of overcoming the pandemic of the new coronavirus infection for the past two years.
We would also like to thank all the medical staff for their dedication.
Respected people,
World citizens
Now, the whole world is one country alone or only a few countries participating, such as the pandemic crisis, changes in trade order and restructuring of supply networks, climate change, food and energy crisis, and retreat of peaceful resolution of conflicts. Faced with difficult challenges.
Various crises cast a complex shadow on human society.
In addition, many countries, including South Korea, are swaying and breaking down the cohesiveness of their communities due to ultra-low growth, large-scale unemployment, deepening polarization and diverse social conflicts.
On the other hand, politics that must solve such problems are failing to function due to the so-called democratic crisis.
Anti-intellectualism is cited as the biggest cause.
Science and truth must be a prerequisite for people with different views to coordinate and compromise with each other.
That is rationalism and intellectualism that support democracy.
Excessive collective conflict between nations and within nations distorts the truth, and anti-intellectualism, which selects only the facts that each person wants to see and hear and suppresses the opinions of others with a large number of forces, puts democracy in jeopardy and democracy. It undermines trust in the principle.
This situation makes it even more difficult to solve the problems we are facing.
But we can.
Looking back on history, the Korean people are on the verge of many crises, but each time they have worked together to overcome them wisely and courageously.
At this moment, I am grateful to be given the responsibility to overcome such a crisis and I am confident that we can overcome it proudly with our great people.
We also believe that we can work together with the world's citizens to resolve crises and challenges at home and abroad.
Respected people,
World citizens
I think it is very important for us to share universal values ??in order to solve this difficulty.
It is "freedom".
We must recognize the value of freedom correctly and accurately.
We must rediscover the value of freedom.
Looking back on the history of mankind, where free political rights and free markets were alive, prosperity and affluence always flourished.
Prosperity, affluence and economic growth are the expansion of freedom.
Freedom is a universal value.
All members of our society must be free citizens.
If the freedom of an individual is left unattended, the freedom of all of us members of the community will be threatened.
Freedom is by no means a winner's monopoly.
To be a free citizen, one must ensure a certain level of economic foundation, fair education and access to culture.
You cannot be a free citizen without this.
If one's freedom is not overrun or the conditions necessary to become a free citizen are not met, all free citizens must help in solidarity.
And if individual liberty is violated not only by individual nations but also internationally by hunger and poverty, illegal acts by public authority and military power, and a dignified life as a free citizen is not maintained, all world citizens will be free citizens. We must work together as a helper.
In order for everyone to be a free citizen, we must obey fair rules and have a spirit of solidarity and philanthropy.
Respected people,
I would like to talk about the direction that I consider important by looking at domestic issues.
In South Korea, excessive polarization and social conflict not only threaten freedom and democracy, but also hinder social development.
I don't think this problem can be solved without a leap and fast growth.
In the process of rapid growth, many people can find new opportunities and improve social mobility to eliminate the source of polarization and conflict.
Leap and fast growth can only be achieved through science, technology and innovation.
Science, technology and innovation protect our liberal democracy, expand our freedom and make our dignified life sustainable.
Science, technology, and innovation are difficult to achieve with the efforts of Japan alone.
By respecting freedom and creativity, we must work and solidarity with many countries that have achieved advances and innovations in science and technology.
Respected people,
World citizens
Liberal democracy creates peace, and peace protects freedom.
And peace is guaranteed by solidarity with the international community, which respects the values ??of freedom and human rights.
We must pursue sustainable peace that blossoms freedom and prosperity, not fragile peace that temporarily avoids war.
Nowhere in the world is free from the threat of freedom and peac
![[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)
