[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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The police investigated the chairman of the Independence Society.Scholarships for descendants of those who contributed to the anti - Japanese movement, and embezzlement of them?
The Chosun Ilbo reported that Kim Won-woong, chairman of the Independence Committee of Korea, embezzled tens of millions of won from social cafes to provide scholarships to children of independence fighters, and asked the police to investigate.The Ministry of Veterans and Veterans Affairs said, "The Independence Society raised 61 million won by raising false orders or over-calculating costs."
Independence Society is an organization established by activists and descendants who participated in the anti-Japanese independence movement during the annexation of Korea and Japan.Japan's anniversary of the end of World War II is called Independence Day in Korea, where President Moon Jae In congratulated and the chairman of the Independence Society also greeted.Even if it is a greeting, it is a speech of resentment and hostility toward Japan.
The Independence Society is closely related to left-wing forces and has been at the center of the anti-Japanese movement under the Democratic Party.Yoon Mi-hyang, the predecessor of the Justice and Memory Alliance, was indicted on charges of embezzlement, and this time she was accused of embezzlement by the chairman of the Independence Society.In the first place, the Japanese Military Sexual Slavery problem is that Lee Yong-soo, the symbol of Japanese Military Sexual Slavery, was taken away by the Japanese army, and is said to be a swindler.Yoon Mi-hyang embezzled donations through Wednesday's rally using Lee Yong-soo as an advertising tower, and the Independence Society established a "meaningless system" to provide scholarships to descendants of independence fighters.
As you can see, the anti-Japanese movement is likely to be a fraudulent organization originally caused by lies and incitement.And the head of the fraudulent group is a group that embezzles the money.
It has become clear that the anti-Japanese movement is based on fraud.I'm paying attention to how far it will be revealed.
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.
Bella Poarch battle against Korean. It looks like you're still in a fight with the Filipinos. Koreans attacked Bella Poarch all at once, alleging that the tattoo of the selfie image that Bella Poarch surrendered to Instagram was reminiscent of the Rising Sun Flag. Bella Poarch, who once apologized, later said, "I can't afford to insult not only me but other Filipinos," and it seems to be heating up even more. The concern is that the Philippines is a gun society. The homicide rate is 25 times that of Japan. I heard that many Koreans study English in the Philippines, but is that okay? Are you trying to see if Korean common sense is universal?
The Japanese Navy is promoting military cooperation, such as dispatching destroyers and submarines to the waters of the Philippines and Japan's cooperation in the redevelopment of the former US Navy base. Do you think the Philippines will deny the Rising Sun Flag? Well, please do your best.
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.
Yoon Seok - yeol (41.4%), [KSOI Korea]Lee Jae - myung (36.2%), and Lee Seok - yeol (41.4%), respectively. According to a survey of 1,004 adult voters nationwide from June 14 to 15, 41.4 percent of Yoon, 36.2 percent of Lee and 9.6 percent of Ahn.Yoon's approval rating rose 6.2 percentage points from Jeonju, while Jung's approval rating dropped 5.5 percentage points from 15.1 percent.Lee also lost 1.4 percentage points.Sim Sang Jung Justice Party candidate Kim Dong-young and Shinbo candidate Kim Dong-young received 3.6 percent and 0.9 percent respectively.
The approval rating gap between Lee and Yoon is 5.2 percentage points, but Yoon's approval rating has recovered to 40 percent in five weeks.Yoon also recorded 44.6 percent in Seoul, ahead of Lee (35.5 percent).
In the survey, 24 percent of respondents said they were progressive, the lowest percentage since February last year.Conservative tendencies were 34.8 percent, middle-income groups 24.9 percent, and unknown groups 6.3 percent.Regarding the nature of the next presidential election, 50.3 percent of the respondents chose "regime trial" and 36.5 percent chose "regime re-creation."Regarding the influence of television discussions on candidates, 60.8 percent said they would have an impact, while 35.4 percent said they would not.The survey was conducted using ARS (Automatic Response System) using mobile phone virtual numbers provided by telecommunications companies.
![[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)
