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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The new President Yoon Seok - yeol will be confused by many obstacles to its government.The general election will be held in 2024.
Yoon Seok-yul, the president, will be worried about the distortion with Congress.The Democratic Party which is ruling party has 172 seats (58.31 percent).It is still difficult to determine how the president can implement his policies in this power map.If you look at the presidential authority of the Korean Constitution, there are Articles 53, 73 and 74.Article 73 is the authority to sign diplomatic treaties and Article 74 is the command of the military.Article 53 provides the right to request reconsideration of a parliamentary resolution.Article 49 states that the bill will be approved by a majority of lawmakers and a majority of those present, but if the president requests reconsideration, it will require a majority of attendance and a 2/3 votes.If the figure is to rise from 58.31 percent to 67 percent, the ruling party will have to add to win 25 votes in favor.
The ruling party's bill is likely to be rejected if it is returned.However, since this is a request for reconsideration of the bill already approved in Congress, the bill submitted by the opposition party "People's Power" is likely to be overthrown by the ruling party in Congress.In other words, Yoon will have to wait for the 2024 general election to take effect.Before that, various bills could be rejected by Congress, and the Manifesto incident could be eliminated.In this environment, diplomatic rights such as strengthening the ROK-U.S. alliance may be exercised to sign treaties or agreements.
Yoon Seok-yeol is also eager to improve relations between Korea and Japan.In response, Prime Minister Kishida said, "It is important to communicate closely with the new president and the new administration in order to restore sound relations based on Japan's consistent position.I want to see the new government's movements in the future and talk to the new government."Yoon Seok-yeol said in her manifesto, "Japan's apology and compensation are the prerequisite for improving relations between Korea and Japan," drawing attention to future developments."
In any case, he won the presidential election, but the difference in votes was less than 1 percent, 0.73 percent, and half of the people supported the opposition candidate.
It is difficult to determine how far policies can be implemented with presidential authority alone.Anti-Japanese forces are still strong.
Some countries are saddened by the sad news about former Prime Minister Abe, while others are happy - as expected, South Korea was the only democratic country to be happy.
Condolences received from various countries
South Korea welcomes people while twisting logic
Results opposite to Korea's expectations
Is your country's character different from that country?
Improving relations seems far off
In response to the sad news about former Prime Minister Abe, condolences have been pouring in from heads of state around the world, with many comments from democratic countries in particular saying that the world has lost a great leader. Mr. Trump, who was a close friend of Mr. Trump, immediately sent an extraordinary message of regret. However, there are countries that are completely different even if they are democracies. As you can imagine, it's South Korea.
Some South Korean articles say that with the death of former Prime Minister Abe, Japan's right-wing forces have lost their unifying force, and that members of parliament seeking to improve Japan-Korea relations have gained relative strength, leading to Prime Minister Kishida becoming a This means that they will be able to exercise their options. What on earth does this mean? It seems like they want to say that this is a good sign for improving relations with Japan.
There is no doubt that Mr. Abe was the spiritual pillar of Japan's right-wing movement. But the problem comes after that. After receiving the sad news about Abe, the members of the Diet who have close ties to him have regained their composure and strengthened their resolve to carry on Abe's will. This is clear from the statements made by these legislators and on Twitter. Rep. Rui Matsukawa and others have clearly expressed their feelings and made strong statements even at press conferences after securing victory.
In other words, with the death of former Prime Minister Abe, Mr. Abe's resolve has become firmer in his long-awaited efforts to revise the constitution and break away from the post-war regime in order to restore Japan's prestige. In other words, the current situation is completely opposite to that country's irritating predictions.
Japanese people don't have the emotions that most people in Korea usually expect. Even if people and towns are swept away by the tsunami, reconstruction begins the next day. Korea must have been very happy at this time as well. In response to this sad news about Mr. Abe, there is a completely distorted and eerie feeling that is visible as if people are welcoming Mr. Abe's death while calling for improved relations with Japan.
As long as we keep saying things like that, there will be no improvement in relations between Japan and South Korea. When will they be able to see events in a normal way? Will such a day ever come? The future is beyond imagination.
What happened to hydrogen fluoride - South Korea claims to have overcome Japan, but what is its relationship with product defects?
Moon Jae-in wants to say we won against Japan
Japanese hydrogen fluoride has fewer impurities
Relationship between hydrogen fluoride and defective rate
Massive recalls in America
Kona EV burst into flames again
Don't worry about exploding cars
In his farewell address, former President Moon Jae-in said that all people came together to overcome the crisis caused by Japan's unfair export restrictions. However, looking at the data, of the three export control items, hydrogen fluoride has decreased by 86% compared to fiscal 2018, while other items such as photoresist and fluorinated polyimide have remained almost unchanged.
Former President Moon Jae-in has loudly declared that hydrogen fluoride has been successfully domestically produced, but regarding the quality of hydrogen fluoride, it is Japan's hydrogen fluoride is 12N (99.9999999999%). There is talk that hydrogen fluoride, which is said to have been developed by Korea's LG Chem, may be 5N. ~N is the number 9, and 12N is 12×9. In other words, Japan's hydrogen fluoride has as few impurities as 12 nines in a row.
Hydrogen fluoride is used to clean machines and processes used in precision machinery manufacturing. What happens when there are many impurities here is an increase in the product defect rate. What about the defective rate of Korean products? Whether it went up or down, if there is no change, then whether it is 12N or not has little meaning.
On August 20, 2021, the US automobile giant General Motors (GM) expanded the scope of the recall due to the risk of fire in the battery pack installed in the electric vehicle (EV) “Chevrolet Bolt EV”. announcement. As a result of this announcement, all models of the Chevrolet Bolt EV released so far are subject to a recall. The battery manufacturer for this car is LG Chem.
In January 2022, another fire occurred in the Kona EV, in which Hyundai Motors had replaced the battery due to a recall after a series of battery fires. A fire broke out while the vehicle was running and was completely destroyed. According to Korean media, internet communities, and fire authorities, a fire accident occurred in a Kona EV that was traveling on Taean Road in South Chungcheong Province at around 6:46 pm on the 11th. The accident vehicle was a 2020 model, and the battery had been replaced due to a recall in September last year.
The explosion of lithium-ion batteries was a hot topic in the past when a Sumsung smartphone exploded into flames, but now that EV cars are being developed, the large batteries used to drive the car explode and burst into flames in the blink of an eye. It is unclear whether it has anything to do with hydrogen fluoride, but there is even a rumor that some Japanese-made hydrogen fluoride is being imported from China.
It would be surprising if they were going to such lengths to protect the country's face-to-face contact, but we should continue to pay close attention to defective products from South Korea.
The Sino - Japanese issue is an intergovernmental issue. Japan and South Korea are civic issues. The people of Korea, a democratic country, cannot pretend to be innocent.
The difference between Sino-Japanese relations and Japan-South Korea relations is that Sino-Japanese relations are intergovernmental and Japan-South Korea relations is civic.As with the Takeshima issue, the Senkaku Islands issue is a territorial issue in Sino-Japanese relations.As for anti-Japanese education, both China and Korea have anti-Japanese education, and the two countries in the world are anti-Japanese.Although anti-Japanese, China and South Korea have completely different positions in history.Japan battled with China, and Korea was during the annexation of Japan and Korea, and above all, Japan didn't battle with Korea.
The Japanese do not criticize individual Chinese for the current Sino-Japanese issue.This is because the Chinese do not have the right to vote, and everyone knows that the expansion of the Communist Party of China's Xi Jinping policy is the cause.On the other hand, Japanese comments on Korea have attracted attention to the personality of Koreans.This is because the Japanese understand that the No Japan movement has become a social phenomenon in Korea beyond civic groups and that anti-Japanese education is the foundation of the issue.And most of all, Moon Jae In is a president elected by the people's votes.
It is natural that international relations will change somewhat if the regime changes.However, Moon Jae In hid behind the scenes and used private organizations to carry out anti-Japanese movements in the voice of citizens for political activities and diplomacy.That's all he's done for five years.Has he ever thought about how this would affect him in the future?
China and South Korea are both problematic countries for Japan, but the differences between the two countries need to be observed.
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.
