(토요모임) [3. August. 2019] Saturday meeting topic

[리사홍]

The escalating dispute between Tokyo and Seoul is already affecting businesses

Published Wed, Jul 31 2019 3:41 AM EDT

Grace Shao@Gracemzshao

• The ongoing dispute between Japan and South Korea has begun to affect businesses across multiple sectors and could potentially even dent the global economy.
• The political disagreement stems from Japan’s conduct during World War II, but it has recently spilled into the economic arena.
• South Korea’s three largest airlines have made cuts and adjustments to flight routes between the two countries.

Korean Air is South Korea’s largest airline. Korean Air planes at Gimpo International Airport in Seoul, South Korea.

The ongoing trade dispute between Japan and South Korea has begun to affect businesses across sectors and could potentially even make a dent in the global economy

The political disagreement stems from an argument about Japan’s conduct during the second World War, but it’s recently spilled into the economic arena

Korea is now bracing for Japan’s decision to drop it from the list of countries that enjoy minimum trade restrictions, Seoul’s finance minister said recently.

She added that, if Seoul is to be removed from the list, “relations between the two countries would worsen to uncontrollable levels,” according to a Reuters report.

Business operations interrupted

The continued disagreement between the two East Asian powerhouses is going to damage both countries’ economies across multiple industries, said Jesper Koll, senior advisor at asset management company WisdomTree Investments in Japan.

Among those negatively affected by the dispute are basic materials companies, he added. Japan’s chemical companies , for one, had “made a big push into Korea over the past decade and they are now de-facto boycotted and are beginning to report steep production cuts,” Koll said.

The senior advisor added that, in the short term, supply disruption in the chemicals needed for semi-conductors “will force higher prices for consumers, lower profits for companies,” but it may also “trigger a boom for corporate strategists and entrepreneurs.”

Disrupted supply chains, Koll explained, are likely to give rise to “new players.”

Aside from the direct impacts coming from the export restrictions, some consumer-facing companies are beginning to feel the pressure of worsening relations between the two countries.

“It is bad news for Japanese cosmetics companies who saw more than 10% of their sales growth coming from Korean demand growth in past two years but are now beginning to feel a buyers-strike from Korean women,” said Koll.

Tourism, airlines, restaurants and luxury brand boutiques are also starting to feel the pain, Koll told CNBC.

In fact, Korea sends the most tourists to JapanJapanese tourists to Korea, meanwhile, make up the largest group

An apparent drop in tourism between the two nations — attributed to the political dispute — has led many major airlines to trim the number of flights or even terminate direct routes between major Japanese and Korean cities.

Japan’s English newspaper Nikkei reported

Separately, Korean Air (South Korea’s largest airline) announced that, starting September, it will suspend flights between Korea’s port city Busan and Sapporo

Korea’s second-largest carrier, Asiana Airlines, announced on Tuesday that it plans to switch to smaller planes

Air Seoul, a Korean budget carrier, has similarly announced that it will cut back regular flights connecting the two nations, according to a report by The Korea Times.

Other major Korean companies that have cited operations being affected by the disagreement include tech giants Samsung and LG Electronics.

LG said this week that it may be affected by tough business conditions and uncertainties spurred by both the U.S.-China trade war and the Japan- Korea dispute.

Meanwhile, a Samsung executive said on the company’s earnings call on Wednesday that “even though the recent measures by the Japanese government do not ban the export materials, we are facing difficulties due to the burden of this new export approval process, and the uncertainties that this new process would bring.”

But it’s not all bad for Korean companies. South Korean consumer goods may come out as winners while the trade tensions escalate. In fact, shares of some Korean confectionery, stationary and clothing companies have seen double-digit percentage gains on the expectation that consumers will avoid buying products from Japanese competitors.

Ripple effects

Troy Stangarone, a senior director at the Washington-based Korea Economic Institute, said Wednesday he anticipates a global ripple effect from any action taken to limit Japanese exports of sensitive materials to South Korea.

A lot of focus has been on semiconductor fabrication, said Stangarone, but a major move would also impact the petrochemical industry, which is a critical export sector for South Korea.

In the short term, Stangarone said, tourism from Korea to Japan may face the biggest impact, but the medium term could see new bilateral foreign direct investment decline as “confidence wanes.”

But more importantly, in the long term, the weaponization of trade “will come at the cost of efficiencies gained through decades of building supply chains across the Asia-Pacific and beyond,” Stangarone said.

“This will act as a drag on the global economy,” he warned.

Last Friday, a senior U.S. official expressed willingness to hold a trilateral meeting with Japan and South Korea in Thailand, according to Japan Today.

The senior State Department official, who reportedly requested to remain anonymous said the White House is “looking for ways to incentivize” the two nations to address their disagreements “in a productive way that benefits both sides.”

U.S. Secretary of State Mike Pompeo, Japanese Foreign Minister Taro Kono and South Korean Foreign Minister Kang Kyung-wha are among top diplomats set to meet on Thursday at the ASEAN Regional Forum, a 27-member regional security forum.

— Reuters and CNBC’s Chery Kang contributed to this report.

1. What caused the trade dispute between Japan and Korea?

2. Do you think this will damage our economy really bad? how about Japan?

3. What do you think of statement of Japan "It wasn't forced labor, it was legal labor" 

4. If you are taking any action, please share tips to fight againist this issues.

[Newsmaker] Video footage of female cop controlling drunkard sparks dispute

A video released by the police to refute public criticism of a female police officer’s handling of violence has proved counterproductive, as more criticism has emerged, this time citing the video.
Guro Police Station on Friday disclosed a two-minute video footage showing two police officers confronting drunk men on Monday night on the street in Daerim-dong, Yeongdeungpo-gu, Seoul.

(Video released by Guro Police Station)
On Wednesday, a shorter version of the video uploaded online by a citizen had sparked a heated debate about the female officer’s handling of the drunk men, with some calling her approach overly passive. 

In the full-length video posted on the station’s website, the female officer is seen getting hit and pushed as she tries to help her colleague subdue another drunk man.

The Guro Police Station said, “The female officer subdued the assaulter by pressing him under her knees, so her actions cannot be considered ‘passive’ as accused by some online users. The two men have been arrested for obstruction of justice.”

Many online comments, however, took issue with the policewoman. While trying to control the men, she is seen asking for help from a crowd, desperately shouting for “a male person” to come and help her. 

A screen grab of the video shot by a citizen and released by police, which shows a female officer getting pushed by a drunk man on a street in Daerim-dong, Seoul, on May 13. (Guro Police Station)

In a section of the video in which only the sound is audible, an unidentified male voice asks the policewoman whether the drunk man should be handcuffed.

1. Have you seen the news? what do you think?

2. Do you agree with hiring more female police officers? (also fire officers as well)

3. Do you think hiring less women in police  can be defined as a gender discrimination?

Please explain your idea.

4. Have you seen many female police officers in your town?

 What do you think of femlae police officers?

5. What are the advantages of having a female police? and what are disadvantages?

6. What can government do to solve these problems? please share your ideas.