LTW - SK-NK Warmth, Betrayed Housewives, & Abe Ire

1. National
1) Signs of warmth in Korean peninsula
It seems South Korean president Park Geun-hye is winning the chicken game against Kim Jong-un. North Korea has invited a South Korean civic group to organize a ceremony marking the 13th anniversary of a landmark inter-Koran declaration signed by Kim Jong-il and Kim Dae-jung on June 15, 2000. Kim Jong-un sent an envoy to China who met with Xi Jinping with a promise to return to six party talks. North Korea TV even featured South Korean flag for 30 minutes in its ping pong match against South Korea held in Paris. This was the first time South Korean flag was shown on North Korean TV, and could not have been possible without the nod from Kim Jong-un.



If the latest crisis in Korean peninsula was a baby pee, the Aug 18 Ax Atrocity in 1976 was a Niagara Falls. Two American soldiers, 1Lt. Barret and Cpt.Bonifas, were axed to death by North Korean guards while cutting a big tree obstructing a view to the North in DMZ. President Park Jung-hee, Park Geun-hye’s father, and Gerald Ford demanded apology from Kim Il-sung, Kim Jong-un’s grandfather, but got only a raised middle finger from Kim Il-sung. Felt insulted, Park and Ford sent a bunch of U.S. and South Korean soldiers into the DMZ on Aug 21 to cut the ‘damn’ tree. There were 20 F-111 fighters , 3 B-52 bombers, and 24 F-4 Phantoms flying over DMZ, and Midway aircraft carrier in the sea, and 12,000 additional forces from Okinawa on the ground while the tree was cutting down. Any slight reaction against the tree cutting from the North would have triggered all those forces jumping into North Korean territory, but chicken Kim Ilsung did nothing, finally expressing his regrets over the killing. Like father, like daughter!

2) Abe and his friend keep pouring out controversial comments
Japanese PM Shinzo Abe and his friend are determined to steal the spot light from Kim Jong-un. Mr. Abe sat in the cockpit of a fighter jet that has the number 731, which evokes notorious Unit 731that performed experiments on live humans in China. Abe also caused controversy by comparing Yasukuni Shrine to Arlington National Cemetery in Washington. Not to be outdone, Osaka Mayor Toru Hashimoto, co-leader of Japan Restoration Party, said that comfort women “were necessary at the time of war” and recommended U.S. Army officials to “take advantage of legal facilities to release sexual energy.” Comments from Abe and Hashimoto are being criticized by former Japanese PM Tomiichi Murayama, who had made a sincere apology to its neighbors in 1995.

Mr.Hashimoto was in Korea in 2010, touring and praising prestigious high schools in Korea like Seoul Science High School and Daewon Foreign Language High School. No one knew at that time Hashimoto might have visited other places in Seoul to ‘take advantage of legal facilities to release his sexual energy.’

2. Economy
1) When do house wives feel betrayed most?
May 21 is celebrated as “Husband and wife’s Day” as 21 can mean “two people met to make one.” A survey by Korea Working Mom Research at the event of May 21 Day showed that Korean wives felt most betrayed when their husbands “took care of others first” with 41%. Forgetting key days like birthday or marriage day came 2nd with 23%, followed by hiding debts (20%) and flirting with other women (12%). The house wives thanked most when their husbands had shown trust in them with 33%, followed by being nice to wife’s own family(27%) and “trying to keep promises with wife”(26%). Lee Soo-yeon, the head of the research center, said that all women, regardless of age, desire to be acknowledged and loved by their husbands.


I think my wife was not surveyed as a gift would be her prime reason for thanking her husband. Whenever I go out with my wife, I hold my wife hands firmly. People call me a romantic. They never know that’s my last attempt to stop her from jumping into a Louis Vuitton store in Gangnam.

2) Wage definition stirs up confusion
The controversy began in Mar 2012 when Supreme Court ruled that regular bonuses should be counted as part of the worker’s ordinary wage, favoring the union of a local bus company. The problem is that the definition of ordinary wage in the ruling was different from that of the Ministry of Employment and Labor. The ministry states that additional allowances that are not related to working hours, such as regular bonuses, are not calculated as part of the ordinary wage. This is important as the ordinary wage is used as a basis to calculate overtime, severance and retirement payments. While the unions in Korea hailed the ruling, the business community is protesting, saying the companies just followed the government definition for the past 30 years, and the ruling will cause additional 38 trillion Korean won impact. The government plans to hold grand conference from June involving the representatives from the union, business, and the government to reach a consensus.
GM CEO Dan Akerson asked President Park to solve this issue fast or no 8 billion dollar investment in GM Korea. Mr. Akerson also said it would relocate the production from GM Korea to somewhere else at the peak of North Korea crisis a month ago. GM Korea employees are praying Korean LPGA golfers no longer make fun of American players, and Inbee Park give up her No.1 status to Stacey Lewis fast.

3. Auto Industry
1) Renault Samsung might get a strike
There has been no strike since Renault Samsung Motors began operation in 1998, but there might be one, though specific dates have not been identified. The union said that 94% of its 2,650 members favored industrial action. The union is angry because the company proposed wage freeze, and forced employees to use their annual leaves during period when the plant was shut down. RSM is insisting that “the company is under difficult times as all employees know well and there should be not strike.” To resolve the differences, the two sides asked for arbitration by the Busan National Labor Relations Commission earlier this year. However, that also failed to resolve the issues.


RSM may learn a lesson from Ssangyong. The two hardcore union leaders in Ssangyong Motors in Pyeongtaek protesting 30m high on an electric structure for 171 days from Nov 20 last year finally came down on May 9 on their own. Ssangyong didn’t do anything with the two union leaders other than encouraging them to protest there 50 more years.

2) Hyundai’s Czech plant marks 1 millionth vehicle
Hyundai’s Nosovice plant in Czech Republic reached the 1 million mark last week, after three years since its SOP in September 2009. Built on 494 acres of land with $1.44 billion investment, the Nosovice plant has an annual capacity of 330K units, rolling out i30 sedans and Tuscon ix SUV. It has been operating on a three shift system since Nov 2011. Hyundai had only 1.8% of market share in Europe in 2008, but it is now enjoying 3.5% at the moment, thanks to production from Nosovice.

The Nosovice plant is being run by Mr.Joon-ha Kim, who had worked in Hyundai’s Bromont plant in Quebec, Turkey plant, Alabama plant before Nosovice. Mr. Kim was a legend in Hyundai Bromont plant in 1988 when he and his two friends consumed 20 bowls of ramen together. Nothing legendary if this ramen consumption did not happen an hour after a full buffet dinner. The first on the left in the first row is the legend.

Regards,
H.S.

LTW - GropingGate, Choco Unity, & Dairy Bullies

1. National
1) Park meets with Obama in Washington
Korean President Park Geun-hye met with Obama at White House on May 7. They agreed to “work jointly to induce North Korea to make the right choice” and reaffirmed strong economic and military ties. She also gave a speech at the U.S. Congress in her good English, describing the accomplishments of the Korea-U.S. alliance over the past six decades by telling the stories of Col. David Morgan family, whose grandfather and father also served in the U.S. military in Korea.



Mr. ChungRae Chung, a lawmaker from the opposition party, was criticized by the public when he made a sarcastic Twitter comment like “Psy sings Gangnam style in Korean in the U.S. while our president speaks English in the U.S. Congress. Who can we be more proud of?” Well, buy Google stocks right now. More Americans will have to purchase Google Translator software as ‘proud Koreans’ will send e-mails to their American colleagues in Korean only.

2) Park’s spokes man in sex scandal
Park’s success with the U.S. visit was severely marred by sexual harassment scandal over her own spokesman, Mr. ChangJung Yoon. According to the reports, Yoon grabbed the buttocks of a 22 year old Korean American intern who was assigned to guide the spokesman during Park’s visit in the U.S. The intern reported the case to the U.S. police, and Yoon made a hasty run away flight from Washington to Seoul on his own before being sacked by Park one day later. When Park returned to Korea over the weekend, Yoon held a press conference to deny the charges, but it was reported Yoon confessed to the Blue House officials that he did grab the intern’s buttocks, and showed his naked body to the intern at his hotel room in Washington. Over two thirds of news time is spent for Mr. Yoon’s scandal at this time.

Mr.Yoon might be grumbling why he has to be sacked for grabbing a female’s butt protected under cloths while Obama is all O.K even if he firmly grabbed the naked hands of Park Geun-hye. With two hands, to boot, so more heinous crime......

2. Economy
1) Choco Pies popularity in North Korea
The U.K. newspaper Guardian reported that marshmallow-filled Choco Pies from South Korea “have achieved legendary status among North Koreans.” The paper said the small, round sugary snack given as a reward to North Korean workers in Kaesong Industrial Complex will accomplish what world leaders have tried in vain with aid, lectures, sanctions and engagement. The Guardian cited Andrei Lankove, the expert on North Korea, as saying "Choco Pies are an important mind-changing instrument. It has become a symbol of South Korean prosperity -- and North Koreans read it. They are suffering and starving, but thanks to Choco Pies, people don't buy the old story that the South is even poorer." Choco Pies were originally developed by Orion Confectionary in 1974.

Choco Pies are sold at 500won a piece in North Korean black market, while an average worker’s monthly salary is only 5,000 won. With no more Choco Pie supply to North Koreans as Kaesong is now closed, it might be even selling at higher price. Don’t worry about Kaesong as it will re-open soon when Kim Jong-un runs out of Choco Pies.

2) Namyang apologizes for bullying store owners
Namyang, Korea’s largest dairy products maker, got into a trouble when a store owner posted on YouTube an audio file of a conversation between himself and a Namyang sales manager. On the tape, the sales manager pressured the store owner to buy more products, saying “I don’t give a damn about your stupid business and don’t care if you are completely ruined. How dare you disobey my demands? I’m going to kill you if I see you. ” There were a lot more colorful Korean four letter words that I chose not to put here. The stock price and the sales of Namyang took a nosedive after the consumers began boycotting Namyang products. Facing the worst crisis since its foundation in 1964, its management made a public apology and promised to provide 50 billion won to support its store owners.



My wife’s younger brother works at Namyang as a quality manager. I talked to him after my return from Chicago last Friday. He thanked Yoon family. First for me, HyungSik Yoon, for rescuing his sister who had a hard time finding a good husband 24 years ago, and for the other Mr. Yoon whose sexual harassment scandal last week managed to divert the public’s attention from his company.

3. Auto Industry

1) Hyundai to build its 4th plant in China
Faced with ever increasing Chinese market and the untouchable labor union in Korea, a Hyundai vice chairman told reporters that Hyundai is planning to build its 4th plant in the mid-west China The vice chairman said Hyundai is currently in negotiation with the Chinese government and its capacity would be 300K a year. Hyundai has recently added some capacity in its Beijing plant to make 1.05 million units per year, and its sister Kia is pushing to shorten the SOP for its third plant by two months to start in April 2014, to have 740K units in Yancheong. Once Hyundai’s 4th plant is completed in 2015 as the vice chairman envisioned last Friday, Hyundai & Kia will have 2.1 million units a year capacity in China. The combined sale for Hyundai and Kia in China is forecasted to reach 1.5 million vehicles this year.


As of April this year, Hyundai sold 37.4% more and Kia a 24.6% more than the same period last year in China. All this jaw dropping figures thanks to Chinese consumer reaction to recent controversial comments by Japanese PM Shinzo Abe on the Japanese role in Asia during WWII. The sales people in Hyundai America are praying Mr. Abe begin talking about Pearl Harbor.

Regards,
H.S.

LTW - Soft or Firm, Abe Time, & Ramen Rage

1. National

1) Kim Jong-un softens as South Korea reacts firmly

Strong winds from North are letting up in Korean peninsula as South Korean president Park Geun-hye showed her teeth that she would not dance to Kim Jong-un’s music. Park made a bold decision to pull out the remaining 175 South Koreans in Kaesong Industrial Complex, making it the first time no South Koreans in Kaesong in 10 years. Probably realizing Park is much harder to crack, Kim went into soft drive mode, showing up in “Deppan Yaki” restaurant, not in military base, surrounded by civilians, not by generals. Kim also allowed a picture of him and his wife shopping at a cosmetics store under South Korean brand ‘Laneige.’ As the joint South Korea –U.S. military exercise winds down on Apr 30, experts think it will enter into a dialogue mode after two months of confrontation. 

  

Another chicken born after GM CEO Dan Akerson.  U.S.golf star Dustin Johnson and Zach Johnson decided to withdraw from the Ballantine’s Championship held last week at Icheon, 60km south of Seoul, as they got scared over threats from North Korea. They must be Americans whose national anthem sings “Oh, can you see …… and the home of the BRAVE!”

2) It’s Abe time now!

While Kim Jong-un is acting nicer, Japanese Prime Minister Abe took a baton from Kim to touch Koreans’ nerves. Emboldened by 70% approval rating and economic comeback due to weak yen policy, Abe encouraged Japanese politicians to visit controversial Yasukuni shrine where Japan’s war dead and Class-A criminals are enshrined, denied imperial Japan’s invasion of Asian countries before and during the WWII, and vowed he would not repeat the Murayama statement of 1995 in which former PM Murayama apologized for Japan’s wartime crimes. South Korean Foreign Minister canceled a visit to Japan scheduled last week, and Chinese government also expressed anger. U.S. media such as New York Times, WSJ, and Washington Post were also critical of Abe’s recent moves. WP even ran an editorial titled ‘Abe’s inability to face history.’ 

   

You can not say Japanese rule of Korea for 36 years (1910-1945) was all bad for Koreans as Korea did get modernized during the colonial days. By the same token, Japan can not say it ruled Korea for the benefit of Koreans. Japanese right wing politicians must learn something from Germans other than soccer skills.

2. Economy

1) Korea to buy Apache helicopters

Korean government has decided to buy 36 Apache Guardian helicopters to neutralize North Korea’s rocket launchers, hovercrafts, and tanks, at 1.8 trillion won ($1.6B). The Apache is loaded with 16 Hellfire missiles, 76 70mm caliber rockets and 1,200 30mm machine guns. The missiles can strike a total of 16 different targets located 8km away, and can detect max 256 targets within 50km simultaneously. Apache was competing against Bell’s AH-1Z Viper and the T-129 of Turkish Aerospace Industries. Korea picked Apache after Boeing’s special discount and promise of technology transfer to Korea. 

   

There are only 24 Apaches in Korea, all in the U.S. military base in Pyeongtaek. A veteran KATUSA (Korean Augmentation To the U.S. Army) from 1982 to 1984, I was invited to the base last week and had the chance to observe Apaches in the hangar. I got briefed on the power of Apache by an American Apache pilot, and tipped off the info to Kim Jong-un. Just in case you wonder why Kim suddenly began to tone down his rhetoric last week.

2) A POSCO director in trouble over his arrogance

A director of Posco Energy named Mr. Wang had to resign over his treatment of a Korean Air flight attendant during the flight to the U.S on Apr 15. Wang first demanded rice porridge and grew upset when told it was not available. He was offered ramen instead, but he began to complain it was too salty and not cooked well. An hour before landing, Wang requested another bowl of ramen, and exploded when it took ‘too long’ to serve, and slap the attendant in the face with a magazine. The pilot reported him to FBI at the airport on arrival, and Wang had to return to Korea. This story was known through social network sites a few days later, and Posco, Korea’s largest steel mill, had to make a public apology from outbursts of criticism from the public who see this as the sample case of arrogance by big companies against smaller companies. Lots of parodies on internet, linking Wang to ramen. 

    

Luke 14:11, “For all those who exalt themselves will be humbled, and those who humble themselves will be exalted.” I had a similar experience. When my manufacturing manager Mr. Lee made a small mistake, I made a verbal abuse against him for two hours one day in 2004 because I thought I was above him.  The following day, I was called into Hyundai and got kicked in the teeth for a pilot sample quality problem by a Hyundai manager. About a few months later, the Hyundai manager had to leave the company to work for an auto supplier that has to be nice to Hyundai. What happened to poor Mr. Lee who was at the bottom of food chain? He is now the plant manager of an auto supplier that is 18 times bigger than Metaldyne. 

3. Auto Industry

1) Diesel engine for Hyundai Grandeur?

Local AutoTimes reported that Hyundai can launch diesel engine Grandeur (Azera in the U.S.) as early as the first half in 2014, to compete against BMW 520d that is gaining popularity among Korean consumers. The diesel engine for Grandeur is 2.2L R engine which is currently used for Hyundai Santafe and Kia Sorento.  It can produced max 200 HP at 3,800rpm, and 44.5kg.m torque.  Hyundai has been trying to curb the growth of European import models over 50 percent of which are powered by diesel engines. 

    

 The first generation Grandeur was launched in 1986 after copying Mitsubishi Debonair. Though Grandeur lost its top of the line status to Equus when it came out in 1999, the name Grandeur has been synonymous with “the best” to Koreans.  The same story as ‘Gemucee” as it became an official word in Korean dictionary to describe something that is ‘strong and reliable.’ Gemucee was how Koreans pronounced GMC trucks that were used during the Korean War. So the hellish monster I saw in the U.S. military base in Pyeongtaek last week was a Gemucee Grandeur chopper.

2) 2013 Motor Vehicle Metals & Resins Conference on May 23

A twin brother look of John Malcovichi, Mr. Jeoff Burris used to be my boss who was often Mr. Wang to me at work, but very nice in personal matters. He has lots of purchasing experience from Ford, Metaldyne and Magna, and is now heading the respected Advanced Purchasing Dynamics that provides procurement related service in North America. APD is holding its annual Motor Vehicle Metals & Resins on May 23 at Marriot Hotel in Troy Michigan on May 23. The buyers and seller of metals and resins, or the buyers and sellers of products utilizing metals and resins, or the service providers and forecasting firms, must find this conference a great opportunity.  Please click on http://www.mvmrcon.com/  or http://www.apurchasingd.com/.  You can call (734)927-0836.

Regards,

H.S.

LTW - Sex, Bribes, & Video, Flexed Stealth Muscles, and China/Japan FTA,

1. National

1) U.S. flexes muscles while Kim Jongun still opens his big mouth

Cold and warm in Korean peninsula at the same time. Cold because the U.S. flew two B-52 Bombers from Guam, and another B-2 Stealth Bomber from Missouri to South Korea to scare the hell out of Kim Jongun while Pyongyang Central Broadcasting Station said ‘Supreme leader’ Kim Jongun ratified a strike plan against the U.S. mainland (Austin, Texas), American bases in Guam, Hawaii, and  South Korea.  Warm because North Korea still allows free flow of South Koreans in and out of Kaesong Industrial Zone north of DMZ where 123 South Korean companies are hiring 53,000 North Korean workers, and North Korea’s General Bureau of Tourism is telling Chinese tour operators, “Don’t worry. There will be no war in Korean peninsula. Send more tourists” Analysts think Kim’s vicious rhetoric against the U.S. and South Korea is rather toward North Koreans to reinforce his position in North Korea. 

   

There a couple of reasons Kim Jong-un would not strike Seoul or the U.S. Over 42% of foreigners in Seoul are Chinese, and it would be a slap in the face to Xi Jinping if Kim Jongun fires rockets to Seoul. The U.S. government is holding Kim Jongun’s best friend Dennis Rodman as a hostage to stop Kim from dropping a nuke bomb in the U.S.

2) Scandal over bribery with sex offering

 Police is investigating the sex bribery scandal that involves high ranking government officials and other public figures. A construction contractor surnamed Yoon is suspected of offering sex bribes and drugs to influential people at his luxury villa in Wonju, 132km east of Seoul. The suspected hot shots include Kim Hak-eui, who resigned from his vice minister post on Mar 21 soon after implicated as well as a former head of National Police, a head of big general hospital, a former lawmaker, and a high level prosecutor. The scandal broke out when a woman involved in the sex orgy confessed to the police with a blurred two minute sex video. Journalists are in hunt for the original video. 

   

It is my 20 minutes plus 3 seconds pleasure vs. life time agony theory that keeps me from doing what the public figures did with the ladies at the villa. Never heard about this theory soon to be recognized by the World Psychiatric Association? Well, you can have fondling fun with a mistress for 20 minutes in bed and then 3 seconds of extreme climax, then there comes guilty feeling on your wife and kids for the rest of your life. It won’t be worth it. 

2) Economy

1) Korean TVs hot in the U.S

According to market researcher NPD, Samsung was No.1 in sales with 27.9% market share of the flat-panel TV for the first two months of the year in the U.S. American brand Vizio was the 2nd with 15.4% and LG came in third with 12.2% , followed by Japanese Sharp (7.7%) and Panasonic(5%), meaning 40.1% for Korean companies. In the 3D TV market, it was more so as Samsung dominated with 44.1%, followed by LG with 26.4%. In LCD TVs 60 inches or larger, traditional market leader Sharp held onto the top position, but its market share took a dive from 49.3% last year to 37%. Next came Vizio and Samsung with 27.4% and 27.2%, respectively.

  

There has been a big argument over which TV is better, Samsung or LG?  My vote goes to LG. Here is why. I bought a 55 inch LG LED TV in Feb 2011. After three months of use, my wife found a minor issue and turned it back to LG.  She then bought the same size Samsung TV with the refund from LG. When the Samsung TV was delivered, we noticed the picture was not the same quality as we have seen three months with the LG TV. It was probably the first time my wife and I agreed on something in many years. She thus took it back to Samsung, and got another LG TV with the refund from Samsung. This has nothing to do with the fact Samsung kicked my butt 27 years ago when I applied for a month of internship in July, 1986.

2) FTA talks with China and Japan kicked off

Koreans have a saying “Beginning makes it half done.” So it was important that the inaugural talks for FTA between Korea, Japan and China began at a hotel in Gangnam on Mar 26 after 10 years of rough ideas. Once the trilateral pact takes effect, it would create the 3rd largest FTA after NAFTA, and the European Union, with a combined GDP expected over $14.3 trillion. The three nations account for 21.5% of the world population, 20.5% of global GDP and 17.5% of all global trade. The main obstacle to the three-way FTA would be issues over agricultural products

   

Another obstacle would be the rivalry sentiment between Korea and Japan. Koreans keep demanding Japanese government make an apology over the 36 years of colonial rule and WWII atrocities the same level as Germans did over WWII, but this request is very hard to accept for the Japanese. While Germans could repent and criticize Hitler without major resistance, probably because of Hitler originally from Austria or the indisputable Auschwitz massacre he committed, Japanese emperor Hirohito in WWII was like their own father. How many of you would be willing to disown your own father even if your father committed a crime? 

3. Auto Industry

1) A new business announced at Hyundai holds its 45th annual share holder’s meeting

Hyundai Motor held its 45th annual shareholder’s meeting at its headquarter in Seoul. Hyundai Chairman Chung Mong-koo said “Hyundai will keep leading global automaker status with brand renovation coming from quality upgrade to strengthen profit.” Hyundai plans to sell 4.66 million units this year, 5.7% more from last year’s 4.41 million, and focus on China and Brazil market.  Hyundai also added ‘steelmaking’ as one of its business purposes.

 

The reason Hyundai added steelmaking in its business purpose was to develop, produce and market base powder metals. Korean auto suppliers are currently importing nearly 100% of base powder metal from overseas makers like Hoeganas from Sweden, QMP from Canada and Kobe from Japan as the total consumption of powder metal in Korea amounts only 50K ton a year. As Hyundai has its own steel mill, Hyundai Steel, in Dangjin, 30 minutes south of Pyeongtaek, it is now venturing into the powder metal business, first to sell to Korean auto suppliers who supply to Hyundai and then to other overseas customers as 50K powder metal production a year would not make any business sense in steel world. This is why the shareholder’s meeting last week is to be taken as a B-2 Stealth Bomber to Hoeganas. 

Regards,

H.S.

LTW - Peninsula Tensions, Bball Fixing, & Tourism Rank

1. National

1) Korean peninsula turning into an Ice Age

The tension between South Korea and North Korea getting tight as the South Korea-U.S. annual joint exercise called Key Resolve got kicked off on Mar 11.Kim Jon-un keeps pouring out hostile verbal threats against the U.S. and South Korea such as “We will drive the enemy the into a fire pit,” “We can make a pre-emptive nuclear attack against the U.S.” and “the Korean War armistice agreement is no longer valid.” South Korean military issued a strong warning in return, vowing that there will be 10 times of retaliation , and that North Korean military headquarters would be annihilated once South Korea is attacked. While the U.S. is installing 14 additional missile interceptors in Alaska, South Koreans used to crying wolf from the North remain calm as they believe “barking dogs do not bite.”

  

Kim Jong-un probably learned escalating rhetoric from my wife. If I do not behave the way my wife wants, she first threatens “I will buy a Gucci watch.” If I still do not move, her rhetoric ratchets up to “I am going for my 3rd Prada purse.” If I still won’t budge, she will scream “I will have Lotte Department store make an expedite order for 10 Louise Vuitton handbags!”

2) A basketball star charged over game fixing

Kang Dong-hee was a Korean version of Isiah Thomas of Detroit Pistons in the 90’s, and is now the manager of Dongbu Promy pro basketball team. He was charged last week for his role in fixing games in March 2011 for 50 million won from two brokers. An arrested broker confessed he had received money from other people who purchased Sports Toto (Lotto) tickets and given portions to Kang. There were other game fixing scandals with other sports in the past, but it was the first time an incumbent manager was directly involved. 

  

Basketball is the 3rd most popular sports after baseball and soccer, but Korean basketball players are not really impressive. Most the Top 10 scorers in Korean Basketball League are Americans who have no chance of playing in NBA, and Korean national basketball team has failed to go to the Olympics after the 1996 Atlanta Olympics. Korean national basketball team has a chance to go to Rio de Janeiro Olympics in 2016 only if all of the players become transgenders.  

2. Economy

1) South Korea ranked 25th in tourism competitiveness

In the 2013 Travel and Tourism Competitiveness Index by the World Economic Forum that ranks 140 nations in 14 categories such as policy regulations, environmental sustainability, safety and natural and cultural resources, Korea ranked 25th this year, up from 32nd in 2011. Korea earned 4.91 points out of 10, ahead of tourist nations such as Italy (4.90), Greece (4.75), Malaysia (4.70) and Turkey (4.44). Switzerland was the top with 5.66, followed by Germany/Austria, and Spain. The U.S. ranked 6th, and Japan move up to 14th from 22nd in 2011. China dropped to 45th from 39th two years ago.

   

While the land mass of South Korea is very small, the same size as Indiana, it has many resources to attract tourists. Korea has distinctive four seasons, has many mountains that cover 70% of the land, is surrounded by seas with many islands and has historical sites with a legendary founder who was born 4,346 years ago. Tourists can also experience 100 degree hot capitalism while watching a minus 30 degree cold communism just 2km away north of DMZ that use nuke bombs for fireworks show. 

3. Auto Industry

1) 8 million Hyundai cars sold in the U.S.

Hyundai reached a new milestone in Feb, selling its 8 millionth vehicle in the U.S. 27 years after it launched Excel in 1986. Hyundai sold its 5 millionth car in 2007, and took just six years to reach 8 million. Eight million accounts for 20% of Hyundai’s total sales overseas, and over 6 million were shipped out of Korea.  The best selling model was Sonata which sold 1.94 million units since its launch in 1989, followed by Elantra which sold 1.91 million. As Hyundai sells nearly 500K cars a year in the U.S., it would be in less than four years to hit another milestone with 10 millionth in the U.S.

 

Hyundai Excel was an instant hit, selling over 170K in the first year, but Hyundai had to pay for its poor quality reputation that dragged Hyundai’s sales less than 10K a month level until late 90’s when Hyundai’s sales finally took off with Chairman Chung Mong-ku’s quality first campaign. Hyundai turned into a joke stew for Jay Leno in the 90’s, and Hyundai was ‘Wrong made Honda’, according to Jay Leno. 

2) Kia having an issue over a name

Kia’s new concept car Provo introduced at Geneva Motor Show last week is making a brouhaha in Britain and Ireland as it sounds like a celebration of terrorism. Prove is the street name for the dominant branch of the outlawed Irish republican Army which killed some 1,800 people during its 1970-1997 campaign to force Northern Ireland out of the U.K. British lawmakers appealed in the House of Commons to Kia to ditch the name. Kia insisted ‘Provo’ was to mean ‘provocative’ and said it would not use it in the U.K. or Republic of Ireland. Kia is not the first one with name problem. Mazda’s LaPuta launched in 1999 means ‘prostitute’ in Spanish.

 

Other Korean companies have the same problems. Korea’s No.3 bank Hanbit changed its name to Woori Bank in 2002, which means ‘Our Bank.’ While many foreigners may have worry to deposit money in Woori Bank, the names still remains Woori.  Another company is SoHeung Forging, which had supplied parts to a Metaldyne plant in Indiana. A sigh of relief that SoHeung’s business was with automotive parts, not with private parts. 

Regards,

H.S.