[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
Category:South Korea
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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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[related article]
Meeting with South Korean parliamentarians and Foreign Minister Hayashi. Is it meaningful to deal with mere performance diplomacy? An unprecedented response between members of the Diet and government ministers
Foreign Minister Hayashi met at the Ministry of Foreign Affairs on the morning of the 25th with the "policy consultation delegation" sent by South Korean President-elect Yoon Seok-you to Japan. There have been criticisms within the Liberal Democratic Party of having a meeting between a mere parliamentary group that has not yet been established as a government and Japanese government ministers. Since it is unknown whether they are really delegations, will the Foreign Minister visit all of them when a foreign member visits Japan? And since I had an interview with the members of the Diet, there is no reason why Yoon Seok-you would not have an interview after taking office as president.
Interview in a state of violation of international law
Currently, the Japanese government is in a position not to negotiate unless the Korean government corrects the state of violation of international law, and the state of violation of international law has not changed yet. After that, They had a meeting with former Minister of Finance Fukushiro Nukaga of the Liberal Democratic Party and former Minister of Education, Culture, Sports, Science and Technology Nakagawa of the Constitutional Democratic Party, who are the chairman of the Japan-Korea Parliamentary Union, at a hotel in Tokyo for about an hour and a half. One of the points that should be evaluated is that the Korean parliamentarians should return to the Japan-Korea relations at the time of the 1998 Japan-Korea Joint Declaration. In 1998, it became a joint declaration that embodied the ideal way of exchange between Japan and South Korea from the 1965 Japan-Korea Basic Treaty, such as the opening of Japanese culture in South Korea and the resolution of the problem of fishing rights in Takeshima. Even if it is simply said to improve Japan-South Korea relations, it is commendable that they have discussed them many times and have shown specific target points because the Korean side has destroyed everything for their own convenience. However, even if it returned to the time of the Japan-Korea Joint Declaration, this declaration was virtually invalidated by the National Assembly of South Korea in less than two years. How can we prevent it from being invalidated again even if it returns in 1998? That point is missing.
Do you make another promise with a country that does not keep your promise?
I think that the problem that South Korea does not keep its promise is that the country itself does not have a structure to keep its promise. Even if the president of that era considers the times and makes a promise with Japan through diplomatic immunity, Korean parliamentarians who have an anti-Japanese structure and an anti-Japanese constitution will invalidate them with the power of the legislature. Is the Kishida administration rushing for easy diplomatic achievements as it has no diplomatic achievements so far? Foreign Minister Hayashi is in a good mood playing the piano in the United Kingdom. Will he repeat the Japan-Korea relations that he has repeated over and over again?
Korean tourists rush to travel to Japan after the visa - free ban is lifted - Where did the No Japan movement disappear?
Diplomatic relations restored despite dislike
South Korean government does not communicate details of restoration of diplomatic relations
Same as Japan-Korea annexation
Korean tourists flock to Japan, which they hate
Many Japanese wonder why they restored diplomatic relations if they hated it so much. Did the South Korean government explain to the people the reason for the restoration of diplomatic relations? There could be many reasons.
(1) We have entered an era in which it is essential to restore diplomatic relations between Japan and South Korea amidst postwar South Korea-US relations and international trends. ? Because it was judged that restoring diplomatic relations with Japan would have great economic benefits for the economy, which had suffered after the Korean War. ?The conditions presented by the Japanese side for the restoration of diplomatic relations were beneficial for Korea's future, and the benefits of concluding the treaty were recognized.
? and ? are the prerequisites for the restoration of diplomatic relations, but ? is something that cannot be explained to the public. As a result, its contents have never been explained to this day. South Korea seems to want to be in the position of reluctantly restoring diplomatic relations, but the content of the agreement was almost like a unilateral contract that contained only the benefits for South Korea. If you think about it, the same thing can be said about the annexation of Japan and Korea.
The background to the annexation of Japan and Korea is as follows:
(1) It became impossible to stop Russia's interests. ? Domestic turmoil made it impossible to collect information. ? I thought it would be beneficial to consider national stability by being incorporated into Japan.
Regarding this, the purpose of the above-mentioned annexation is clearly stated in the imperial admonition issued by the Sun Song Dynasty (the last emperor of the Joseon Dynasty) at the time of the annexation, but the story is that Japan annexed it by force. That's the translation.
As a result, during the annexation era, the Korean peninsula reluctantly accepted modernization, its population grew reluctantly, and it reluctantly went to school, and now it reluctantly negotiates with Japan and reluctantly trades with Japan. And I have no choice but to reluctantly go on a trip to Japan. Is the No Japan movement a movement that tells people not to buy Japanese products if they don't want to? It is understandable in that sense, but the government changed and Koreans reluctantly began traveling to Japan.
According to a Korean public opinion poll, the support rates for political parties are 42.4% for both opposition parties, and 39.6% for People's Power.The general election will be held this year.
According to a Korean Realmeter opinion poll conducted in the fourth and fifth weeks of March 2020, the party support rate was 44.6% for the Democratic Party of Korea, and 30.0% for the United Future Party, the predecessor of People's Power. The Realmeter survey results announced on the 15th of this month show that the Democratic Party is 42.4%, and the People's Power is 39.6%.Although the gap has narrowed, the Democratic Party's approval rating has fallen by only 2.2 points. do not have.
In the 2020 survey, 55.7% approved of Moon Jae-in, and in the current survey, 36.3% approved of President Yoon Seok-Yeol. Interpreting these figures literally, expectations for the power of the people in the legislature have increased, but the support rate for the Democratic Party has remained almost unchanged. Both parties are members of the Democratic Party, whose party is led by Lee Jae-myung, who miraculously survived the assassination that everyone thought was a farce and was discharged from the hospital after a long hospitalization. Lee Jae-myung is currently being indicted by prosecutors.
These Democratic Party supporters can be seen as a rock-solid support group that will continue to support any party leader no matter what. Are these people who make a living through trade with China, and whose livelihoods are directly connected to their support for China? South Korea's trade dependence is 81.9% of GDP. The pro-Japanese and pro-American and pro-China and pro-North Korean compositions were one of the themes brought to light by Moon Jae-in, who stirred up the No Japan movement, but the essential issue is the economy. How far has the withdrawal from China's economy progressed?
In the Facebook group of the author who co-authored ``Anti-Japanese Tribalism,'' it is clear that the number of posters and viewers has decreased dramatically since Yun Seok-yeo became president. Is it because the No Japan movement has subsided? In that case, would those people have been better off if the No Japan movement had disappeared? I wonder how many people out there just wish they could drink Japanese beer. In other words, were the pro-Japanese simply rebelling against the intense anti-Japanese movements that were taking place? At least what we can say is that the power of pro-China, pro-North Korean forces does not seem to be weakening.
If we go into the 2024 general election in this state, there is a high possibility that the Democratic Party will once again control the largest number of seats. If this is the case, the Yun Seok-Yue administration will be run in a twisted manner throughout his term. Anti-Japanese issues are also legal issues. South Korea is a country with no anti-Japanese convictions. Since the Democratic Party is the most powerful party in both countries, it is difficult to bring about social change through legislation, and there is a high possibility that an anti-Japanese leftist president will be elected again in the next presidential election.
Moon Jae - in's words regarding Park Geun - hye's pardon are abstract; who is the one who created the division?
[Excerpt from Chosun Ilbo article (translation)]
On the 24th, former President Park Geun-hye expressed her gratitude to President Moon Jae-in for granting him a special pardon.
Lawyer Yoo Yong-ha, a close aide to former President Park, met with reporters in front of Samsung Seoul Hospital in Gangnam-gu, Seoul, where former President Park was hospitalized, and relayed former President Park's words on his behalf.
Regarding former President Park's health condition, attorney Yoo said, ``It looks like she will be receiving treatment at a hospital for the time being,'' but added, ``I cannot comment on the specific health condition right now.''
Regarding former President Park's future plans, lawyer Yoo said, ``Right now, he is concentrating on treating a new disease.He told me that he would not meet with anyone.''
On this day, to celebrate the new year of 2022, the government granted a special pardon to former President Park, who is currently in prison after being found guilty in the National Agricultural Organization Incident.
``We must overcome the pain of last year and move on to a new era,'' President Moon said, ``I hope that this will be the beginning of a new era of unity and harmony that transcends differences and pros and cons.'' .
President Moon said, ``Rather than being buried in the past and fighting each other, it is time for us to boldly work together toward the future.''Especially given the many challenges facing us, we must strive for national unity and humility.'' There is an urgent need for inclusiveness."
[Excerpt above]
Moon Jae-in's words have an abstract meaning: the people will come together as one and create a new era.
It is said that Moon Jae-in himself was the one who created the cause of the nation's division in the first place. The main argument of the opposition parties is that Moon Jae-in became president after taking advantage of Park Geun-hye's impeachment, and that the current left-wing government is the one that carried out various schemes surrounding the impeachment.
There are many people who feel that it is strange that this pardon was decided for the exact same reason as the previous pardon was not granted.
In South Korea, the president is arrested every time there is a change of government. Perhaps because of the culture of grudges, there is a history of retaliation for retaliation.
Many people take this to mean that Moon Jae-in is asking for a pardon and the charges against him to be reduced.
Moon Jae-in's term remains until next year's presidential election. Many people seem to feel uncomfortable about being pardoned at this timing.
South Korean delegation insists on 'efforts from both countries' - Japan is fulfilling all its promises - South Korea is the one who is not making enough efforts
South Korea says efforts from both Japan and South Korea are necessary
Intentions of both countries passing each other
What is the destination that Korea envisions?
If we misunderstand the Korean issue, the government will tilt
Japan has already apologized many times
Japan fulfills all commitments
What does the effort of both countries mean?
While the recent South Korean delegation's visit to Japan has been reported as if the two countries have once again returned to the direction of improving Japan-Korea relations, the response of the Japanese government, including the prime minister, has been criticized. The South Korean side is keen to improve Japan-Korea relations, and as a result, interviews with the current prime minister, former prime minister, and other ministers were held. The most important point is that a gap that cannot be filled has been identified.
The rift is that while Japan is demanding that South Korea "fulfill its commitments," South Korea has consistently stated that "efforts from both sides are needed." This means that South Korea will not make unilateral concessions. More specifically, before the presidential election, President-elect Yoon Seok-Yeol met with Lee Yong-soo, a self-proclaimed representative of former comfort women, and said, ``We must demand an apology from Japan.'' has promised that he will receive it. That's probably what he's saying.
What kind of efforts does South Korea want from Japan? For example, is the Japanese Prime Minister going to South Korea, meeting with former comfort women, apologizing, and reporting the moving scene as an attempt to settle the matter? However, if South Korea's next government does not understand that this is an unlikely future, improving relations seems a long way off.
If Prime Minister Kishida were to do something like that, the Kishida administration would surely collapse, and even in this meeting with the parliamentary group, there are voices calling for Kishida to be removed from the position of prime minister. There are even voices saying that they will not vote for the Liberal Democratic Party in the next House of Councilors election. Reasons for this include the forced labor judgment and the abrogation of the Japan-Korea comfort women agreement.
Regarding the South Korean delegation's visit to Japan, since it was a group of parliamentarians before the inauguration of the new South Korean government, there were many opinions that Japan should also conduct the visit within the framework of parliamentary exchanges and that the government should not deal with it.
The comfort women agreement states, ``This is an issue that has deeply damaged the honor and dignity of many women, and from this perspective, the Japanese government is acutely aware of its responsibility.'' I would like to express my heartfelt apologies and remorse to the people of... Yun Seok-Yeol seems to think that since he has expressed his apology, it would be okay to apologize face-to-face. However, the agreement states, ``As the Japanese government declares the above and steadily implements the measures in (2) above (establishment of a foundation), this announcement will ensure that this issue will be finalized and irreversible.'' to make sure it is resolved."
The 1965 Claims Agreement, including the issue of forced labor, was already resolved. Japan is simply asking South Korea to faithfully implement these agreements. Japan has fulfilled all of its responsibilities, so all that remains is for South Korea to fulfill its own responsibilities. In other words, it is no longer an issue for both countries to make efforts.
Jeong Jin-seok, head of the South Korean delegation, claps his hands together and says that only by joining hands like this can relations be improved. Hearing these words, I can't help but think that South Korea's next new government may not even understand what the current situation is. This is because the efforts of these two countries resulted in the Claims Agreement in 1965, the Japan-South Korea Joint Declaration in 1998, and the Comfort Women Agreement in 2015, which is exactly the kind of hand-to-hand situation that Chung described. It is South Korea that unilaterally abolished these . Japan must not take a step back from this line.
If we look at Japan-South Korea relations after the restoration of diplomatic relations, South Korea has completely torn up all previous agreements. Is the next agreement really necessary?