processing trade
2021-07-07
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What is the problem with Korea's trade deficit with Japan?The center of the Korean economy is processing trade.In other words, even if raw materials are purchased from Japan, they are sold to third countries with added value due to commercialization, so they are recorded as GDP in Korea.In other words, it's just added value and passed through.It may be trade deficit for example agricultural products imported from Japan and consumed in Korea are known, but they do not know what is wrong with processing trade.
If the cost of raw materials imported from Japan exceeds 50 percent of the cost of the product, Korea's added value will be less than 50 percent.However, this is not a trade deficit, but a cost management issue.In the first place, products that cost more than 50% of raw materials in the manufacturing industry it would hard to exist for lack of competitiveness.
Korea wants Japan to buy more products made from Japanese raw materials because of the trade deficit, but this is also meaningless.If Korea adds value to the cost of Japanese raw materials and Japan buys them, Japan will buy back the raw materials it sells, so there is no profit for Japan .This is not the cause of the trade deficit, but the competitiveness in the Japanese market.
Moon Jae In is a man who doesn't make no sense.
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South Korea is furious after being told that kimchi originates from China - Do they go crazy when they are forced to do something they always do?
While watching YouTube videos about Sichuan cuisine, I suddenly noticed the controversy surrounding the origin of kimchi, which is based on Sichuan's foamed vegetables. I used to think that Sichuan cuisine was spicy because spices from western countries such as India and Pakistan were introduced, but chili peppers are native to South America, so chili peppers probably didn't exist in China.
There is a theory that it was brought to Japan when guns were introduced, or that it was brought by missionaries, but it seems that it was brought to the Korean peninsula during Hideyoshi's Bunroku and Keicho campaigns. It was the end of the 16th century. So I researched when chili peppers were introduced to Sichuan, and found that it was in the 17th century, at the end of the Ming Dynasty. I'm not sure when chili peppers began to be used in Awa Nai or Korean kimchi, but it would be a mistake to say that the current kimchi made with chili peppers originated in Sichuan Province.
If that's the case, there must be a culture of foamed vegetables using chili peppers all over China, or even on land routes to Beijing. Chinese historical debates tend to be like this. China's 3,000 years will turn into its 4,000 years the next day, but there are no excavations that have spread its culture geographically. It ends with a dot. Culture is transmitted through people as a medium.
Incidentally, as part of its national strategy, China claims that ginseng is many times more superior to Korean ginseng, and supports vast fields of ginseng. This is an economic revitalization project for the underdeveloped and ethnically diverse Yunnan province.
By the way, when I looked into the origin of chili peppers, I found that there is a record that it dates back to 6000 BC in Mexico. A little respect for Mexican chili peppers would end this debate.
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.
His Majesty the Emperor visited Saipan
In 2005, the Emperor and Empress visited Saipan to pay their respects to the war dead.In response, a protest demonstration was held by a Korean group.It seems to be the idea that the Emperor's memorial service for the war dead is the revival of militarism.
Angered by the movement, Saipan residents shouted, "If Koreans protest against the Emperor, let's boycott Korean companies," and John Blanco urged native Chamoros and Carolina residents to boycott Korean companies if Koreans hold scheduled protests next Tuesday.Nevertheless, the Saipan Korean Association spread out banners and staged a demonstration demanding an apology from the Emperor.
The Japanese probably don't understand the idea that visiting the memorial is the revival of militarism.It was the same for Saipans.
An old Chamorro woman rose to her feet."How rude of the Emperor to come to the memorial service!I won't forgive you!" he exasperated, "You guys get out of Saipan."Don't do anything selfish on our island," he told local residents and the media one after another.As a result, many Chamoros supported the demonstration, and it developed into a huge demonstration to welcome the Emperor.
It was the 60th anniversary of the end of World War II, when the Emperor and Empress visited Saipan with a warm welcome on June 27th and 28th.
Korea justifies anti-Japanese demonstrations regardless of where they are.Saipan residents got angry at this and developed into a welcome demonstration for the Emperor.
Lee Jae - myung, a South Korean presidential candidate, is frightened by the prosecution.An investigation battle that began before the election.
Meanwhile, Democratic Party presidential candidate Lee Jae-myung said yesterday, "If I lose this time, I will be sentenced to prison for making a crime."Lee said in a speech on the side road of Seokchon Lake in Songpa-gu, "The prosecution republic will be held.The fear of the prosecution republic is not just the sound of the wind, but the sound of the wind coming before us.It's really scary."
Lee's eldest son (29) is suspected of gambling and buying money.Lee was found guilty of violating the public election law for making false statements about his brother's forced hospitalization after the 2018 governorial election.Despite the crisis of losing his job, the Supreme Court reversed his decision.The Supreme Court justice, who acquitted at the time, was found to have been an advisor to a company involved in the Daejang-dong scandal after retirement, raising suspicions that he had an affair with an actress and a criminal record of drunk driving.
Under the Moon Jae In administration, a public investigation office was set up to separate the investigation of high-ranking government officials from the prosecution, but Moon Jae In was criticized for protecting itself by establishment this organization.Yoon criticized the prosecution for investigating Lee Jae-myung's rival, Yoon Seok-yeol, and even investigating his phone records.
Lee Jae-myung said he would be sent to prison if he lost the election, but the left-wing government wants to arrest Yoon Seok-yeol by using the Public Prosecutors' Office.
He seems to be frightened by the fear that what he is trying to do will eventually come to himself.In Korean politics, retaliation using prosecution power is common.
