[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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Last One Mile Support In addition to Taiwan and Vietnam, Japan will provide vaccines through COVAX: Cambodia, Laos, East Timor, Bangladesh, Maldives, Nepal, Sri Lanka, Fiji, Kiribati, Papua New Guinea, Samoa, Solomon, Tonga, Vanuatu, Iran.
New target country of "Last One Mile Support" in cooperation with UNICEF: Ghana, Senegal, Mozambique, Malawi, Palestine, the Philippines and Mongolia."Last One Mile Support" will cover 59 countries and regions.
Korea is not a developing country, so it is likely that it will not be able to provide vaccines because now Korea is in the midst of the No Japan movement and Japan respected it and their passion.
Voting for South Korea's unified local elections was held on June 1st, with the ruling party
Local elections won by the ruling party
Local administration launches anti-Japanese movement
The president is the head of the executive branch
Twisted power runs amok
Efforts to improve relationships are always destroyed
Adopts resolution that violates international commitments
South Korea cannot keep its promises
Voting for South Korea's unified local elections was held on June 1st, with the ruling party "People's Power" winning 12 out of 17 regions, and the "Tomo Democratic Party" winning 4 regions including Jeolla Province and Gyeonggi Province by a narrow margin. It is reported that the ruling party won by a landslide, winning only five regions. This appears to be a trend that will lead to a resolution of the kinks between local government, the president, and the cabinet.
The No Japan movement was largely led by local governments. Gyeonggi Province, Seoul City, and Busan City have passed ordinances stipulating ``war criminal company stickers'' or ``restrictions on the purchase of war criminal company products.'' This is a surprising ordinance that places stickers on the products of Japanese companies that have been unilaterally labeled as war criminal companies, and restricts the use and purchase of those products in government agencies and schools.
Local governments in South Korea not only decide local leaders, but also exercise a variety of powers, including issuing ordinances that can lead to diplomatic issues between countries.
Regarding the ban on imports from Fukushima Prefecture, fishing organizations in coastal areas such as Busan are putting tremendous pressure on local governments. This is a local economic issue, and we do not want to import Japanese seafood to South Korea. This is to protect Korean fishing organizations. It is clear from the beginning that this is not a scientific problem.
The president assumes the position of head of the executive branch. Since the president is the head of state who is directly elected by the votes of all citizens, he is given great powers, unlike the prime minister in a parliamentary system.
In a parliamentary system, the leader of the parliament with the largest majority is elected prime minister. Therefore, the Prime Minister, the Cabinet, and the Diet, which is the legislative branch, will not be distorted. If anything could be twisted, the House of Representatives and the House of Councilors would be twisted.
In South Korea, the current president is Yun Seok-Yeol, who ran for office based on ``the power of the people,'' and the Democratic Party of Korea holds 58% of the seats in the National Assembly, the legislative body. In other words, even if the president uses his prerogatives, Congress can pass one bill after another to nullify them.
Substantive exchanges between Japan and South Korea began in 1998, when the Japan-Korea Joint Declaration was signed. Until then, Japanese culture, anime, manga, dramas, etc. had been prohibited in South Korea, but this declaration will lift the ban on these. It was also during this period that Korean dramas and K-POP began to flow into Japan.
Also known as the Obuchi-Kim Dae-jung Declaration, it was a declaration that comprehensively resolved the Japan-Korea issue, including the joint hosting of the 2002 FIFA World Cup between Japan and Korea and the conclusion of a new fisheries agreement regarding the Takeshima issue. It will be deactivated immediately thereafter.
On July 18, 2001, the South Korean parliament passed a unanimous resolution calling on the South Korean government to abolish the Japan-Korea Joint Declaration. Then, a large number of Korean fishing boats appeared near Takeshima, and the territorial issue reignited and continues to this day, and the activities of civil society groups on issues such as the forced labor issue and the comfort women issue further expanded. This is despite the fact that the World Cup was co-hosted by Japan and South Korea in 2002.
Will Congress vote to invalidate the president's diplomatic promises with other countries? Such unbelievable things happen in the South Korean National Assembly.
This has hardly been reported in Japan. Japan was united towards the success of the Japan-Korea joint World Cup. And during the match of this tournament, an incident occurs where Korean players criticize the Rising Sun flag and promote Takeshima as Korean territory. The premise behind this was that South Korea was already trying to revoke the 1998 Joint Declaration.
In South Korea, the president's powers will only be effectively exercised if he wins the presidential election and unified local elections, and the ``power of the people'' wins the national election in 2024.
The issue of South Korean ships conducting investigations around Takeshima shortly before and immediately after the presidential inauguration became a problem. In other words, South Korea is not even equipped to keep its promises..
This is especially noticeable in anti-Japanese groups. In South Korea, members of both the ruling and opposition parties are basically anti-Japanese.. Even if the Diet tries to improve relations with Japan as a matter of policy, if its practical interests are endangered, it will easily turn into an anti-Japanese Diet.
In Japan, if things are twisted, things will not be decided, but in Korea, twisted power begins to run amok. It is an uncontrolled rampage that continues even if international agreements are broken.
Yun Seok - yue's manifesto aims to attract and circulate capital through a free economy.Will the National Assembly become a burden that hinders this?
South Korea is wavering between pro-China and pro-US
Original regime change through social policy
A country that thinks about what is better
Yin Seok-yue promotes free economy
Promoting free competition within the country and moving towards CPTPP
Legal development by the Diet is hopeless
Is South Korea wondering whether it should join China, which has achieved growth in recent years, or join the camp of free nations such as Japan, the United States, and Europe? I guess it's a question of which is better, but it seems like a very polarizing choice.
The Moon Jae-in administration completely abandoned its pride as a democratic country without hesitation and spent five years desperately trying to join China and North Korea, a country that violates human rights at its worst, but unfortunately there was no result. Ta.
The new president, Yun Seok-Yeol, has the exact opposite policy, aiming for Korea to be a member of the Japan-U.S. and liberal camp. This seems to be the composition of the right-wing and left-wing forces in South Korea.
The left tends to seek the enhancement of social institutions, while the right tends to seek free competition and liberal democracy. This is a question of the balance between social welfare and liberal economics, and a debate about competition versus distribution. This is an issue to be debated within a democratic country, and can be said to be a universal frame.
America's two-party system is very easy to understand. Republicans and Democrats can be broadly divided on the question of whether taxes should be primarily used for public welfare, or whether they should reduce taxes in the first place and increase competitiveness in a free economy. It is also expressed in the framework of big government and small government.
The choice of domestic social policy is not a question of which country will benefit you by following, but rather a matter of foreign policy. Prior to Japan's annexation of South Korea, there was intense conflict between pro-Russian and pro-Japanese factions on the Korean peninsula. Is nothing different from that era? Another characteristic of South Korea is that its foreign policy is also its domestic policy.
Looking at Yun Seok-Yue's manifesto from the perspective of economic policy, his economic policy is to bring back the capital that fled South Korea under the Moon Jae-in administration.
In particular, the focus is not on where to focus investment and foster industry, but rather the policy appears to be aimed at attracting investors by abolishing regulations and promoting a free economy and free competition.
It appears that the plan is to aim to join the CPTPP and other liberal nation frameworks based on this liberal economic frame, but in order to realize this, it will be necessary to obstruct the various free competitions that exist within Korea. Legislation must be put in place to abolish the regulations that apply.
This is the job of the National Diet, the legislative branch, but the opposition Democratic Party of Japan still holds nearly 60% of the seats. In other words, there are many hurdles for the time being in the economic policy advocated by Yun Seok-Yeol and cooperation with liberal countries. In other words, we will have to wait for the 2024 general election.
South Korea's Next Presidential Candidate "I Love the Japanese People" and Continuous Anti - Japanese Remarks.
Lee Jae-myung, a candidate running for South Korea's next presidential election, said on November 25th, ``I love the Japanese people and respect their civility,'' and added, ``Japan invaded South Korea and attacked dozens of people. "He has a history of dominating and expropriating Korea for many years." "He is still dreaming of becoming a military power and is provoking that Dokdo, which South Korea effectively controls, is his own territory. He is also clear about historical issues. It doesn't seem like he is sincerely remorseful, so of course I'm worried."
Lee Jae-myung, an anti-Japanese force who said he loves the Japanese people. What followed was a series of incoherent statements.
First of all, he does not seem to understand the root of the current problems in Japan-Korea relations. This is not a historical issue from the beginning. The problem is that South Korea was taking advantage of its position as a friendly country and taking advantage of its position as a white country to divert strategic materials imported from Japan that require strict control to third countries. .
Then there is the issue of the state of the abrogation of the claims agreement, which is the basis of Japan-South Korea diplomatic relations, by reviving individual claims and issuing compensation orders to the Japanese government and Japanese companies in domestic courts. Without understanding that this is not a problem of the past but an ongoing one, saying that we love the Japanese people will not improve Japan-Korea relations.
The five years of Moon Jae-in created an irreparable rift in Japan-Korea relations. Do they think that if the anti-Japanese mood as a national sentiment subsides, things will be manageable on the surface? Japan has given up on relations with South Korea due to anti-Japanese activities since Moon Jae-in took office, and has continued to build relations with other neighboring countries.
Commitments and work with his new partner are occurring one after another. If you don't fully understand these things, you'll just think it's a childish and shallow idea.
Japan has been putting up with South Korea for many years, but since it was excluded from the white list, it has created partners other than South Korea. Will South Korea ever return to being our most important neighbor?
![[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)
