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THE KOREA SOCIETY QUARTERLY
VOLUME 3 , N UMBER 4
Regime Change: What Does It Mean
for North Korea, Removal or Reform?
Japan-Korea Economic Relations
in the New Asia
Turning Adversity into Opportunity
North Korea and
U.S. "Vaccine Diplomacy"
TRANSMITTING THE FORMS OF DIVINITY:
Early Buddhist Art from Korea and Japan
BOARD OF DIRECTORS
Donald P. Gregg
The Korea Society
President & Chairman
Chong-Yun Park
KPMG LLP
Treasurer
is the official publication of The Korea Society.
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Freshfields Bruckhaus Deringer LLP
Secretary
Robert D. Bauerlein
The Boeing Company
Ho-Kyun Lim
The Federation of Korean Industries-NY
Anil Bhalla
J.P. Morgan Chase & Co.
Regis A. Matzie
Westinghouse Electric Company
Carter Booth
Dong-Jin Oh
Samsung Electronics America, Inc.
Willard A. Boyer
Corning Incorporated
Nicholas Bratt
Deutsche Asset Management
Young H. T. Cho
PricewaterhouseCoopers LLP
James F. Dowd
Fairfax Incorporated
William W. Ferguson
Citigroup
Mark Gaston
Gaston Capital Management Inc.
Robert D. Hormats
Goldman Sachs International
Changuck Paul Kim
Deloitte & Touche USA LLP
Jang Han Kim
Korea International Trade Association Inc.
Spencer H. Kim
CBOL Corporation
Stewart M. Kim
PGP Capital Advisors, LLC
Yung Duk Kim
Charles K. Koo
LG International (America), Inc.
John Koo
SK USA, Inc.
Thomas Laine
MetLife International
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Lehman Brothers
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ADVISORY COUNCIL
STAFF
IN THE UNITED STATES
George H. W. Bush
Gerald R. Ford
Sung Joo Han
Carter J. Eckert
Alexander M. Haig, Jr.
Carla A. Hills
James T. Laney
Gari K. Ledyard
IN KOREA
Young Man Kim
Each issue features several articles, which are
either exclusive to the Quarterly or reprinted
from relatively less accessible sources, as well as
in-depth coverage of past and upcoming
programs of The Korea Society.
Mong Joon Chung
Ro-Myung Gong
Seung Soo Han
Hong Choo Hyun
Bong-Kyun Kim
Jin-Hyun Kim
Kihwan Kim
Kyung Won Kim
Pyong Hwoi Koo
Han Dong Lee
Hong Koo Lee
Jin Roy Ryu
Donald P. Gregg
President & Chairman
Frederick F. Carriere
Vice President &
Executive Director
Yong Jin Choi
Director of Korean Studies
Sophia H. Kang
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Corporate Affairs
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Sarah Sun Kim
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The opinions expressed in the articles and essays in this publication do not necessarily represent those of
The Korea Society. No part of this publication may be reproduced without written permission from The
Korea Society. Copyright © 2003 by The Korea Society. All rights reserved.
CONTENTS
LETTER FROM THE PUBLISHER
4
Donald P. Gregg
PERSPECTIVES
Cooperation or Rivalry? The Future of
Japan-Korea Economic Relations
in the New Asia
6
Choong Yong Ahn
12
Tae-Hee Yoon
PUBLISHER
Donald P. Gregg
EDITOR
Frederick F. Carriere
ASSOCIATE EDITOR
Suzanne C. Lim
ASSISTANT EDITOR
Sarah Sun Kim
EDITORIAL ASSISTANCE
June Mee Kim, Kathleen Kim,
Peter Poliakine, Homer Williams
The Promise of Medical Science and
Biotechnology for North Korea and the
Relevance of U.S. “Vaccine Diplomacy”
15
Peter J. Hotez
PORTFOLIO
Transmitting the Forms of Divinity:
54
EDITORIAL INTERNS
Adam Binder, So Mi Kwon, Kathryn Schwartz
TKS EVENTS IN REVIEW 19
TKS EVENTS AHEAD 48
RE: SOURCES & INFORM@TION 56
Films on DVD, Film Releases, Conferences, Opportunities 56
Exhibitions & Festivals, Newly Published Books, Teaching Resources 59
ON THE RECORD 62
Address by President Roh Moo-hyun and other presentations delivered at The Korea Society 2003
Annual Dinner in New York City on May 12, 2003.
The Korea Society is a private, nonprofit, nonpartisan,
501(c)(3) organization with individual and corporate
members that is dedicated solely to the promotion of
greater awareness, understanding and cooperation
between the people of the United States and Korea. In
pursuit of its mission, the Society arranges programs that
facilitate discussion, exchanges and research on topics of
vital interest to both countries in the areas of public policy,
business, education, intercultural relations and the arts.
Funding for these programs is derived from contributions,
endowments, grants, membership dues and program fees.
From its base in New York City, the Society serves audiences
across the country through its own outreach efforts and by
forging strategic alliances with counterpart organizations in
other cities throughout the United States as well as in Korea.
www.koreasociety.org
WHO’S WHO & WHAT’S WHAT 64
Movie Provides Bond between the Two Koreas; Gregg on Kim Jong Il; Korean Teams Cross Sticks, Not
Swords at Asian Games; A Champion of Women, and a Defender of Girls; Ronald Moon Retains
Hawaii Chief Justice Post; Tae Kwon Do Grandmaster Dies; Vietnam Decorates Outgoing Korean Amb.
Baek; Seo’s Winter of Work Pays Off; High School Colossus Takes Step to NBA; Pak Bags 20th Career
LPGA Win; Korean Center Joins WNBA; A Survivor Recounts Human Horror of North Korea’s Prison
Camps; Rebuke by UN Commission Rights; Questions and Answers for Korea Telecom’s Chief; Some
Koreans Give their Teachers the Whole Apple Tree; Waiting for ‘Wonderful Days’ of Korean Animation;
World Health Organization Names First Korean Head; Dixie Walker, An Appreciation
NEWS IN REVIEW 66
TRENDS IN TRADE & BUSINESS 68
MEMBERS IN FOCUS 70
on the cover...
Standing Bodhisattva
Korea or Japan
Three Kingdoms period or Asuka, 7th c.
Bronze; h. 20.3 cm
Sekiyama Jinja, Niigata Prefecture
Regime Change:
What Does It Mean for North
Korea, Removal or Reform?
By Donald P. Gregg
wo early July 2003 conferences, one in New York and the other in Washington, shed
interesting light on current thinking about North Korea among Bush administration officials,
Bush administration supporters and critics, and South Korean officials and intellectuals. There
is no consensus, and deep controversy swirls around the meaning of the phrase “regime change.”
T
In New York, a senior Bush administration official with
long experience in Asia spoke rather lugubriously to a group
of international businessmen (none of them Asian). The
official stated that the North Korean regime has had an
interest in developing a nuclear weapons program “from
way back” and it has never faltered in the vigorous pursuit
of this objective. Likewise, the unswerving American policy
objective has been a verifiable end to all nuclear weapons
programs in North Korea. “We will not accept North
Korea as a nuclear state,” said the official, and then quickly
added that he was not at all sure how this objective could
be attained. “All options are on the table,” he added grimly.
The current focus of the Bush administration is the convening
of multilateral talks involving North Korea’s neighbors, all
of whom are in agreement that North Korea should not be
allowed to become a nuclear power.
The official gave no indication of an American
willingness to talk to North Korea on a bilateral basis
prior to a decision by Pyongyang to abandon all of its
nuclear ambitions. He spoke very negatively of Kim Jong
Il, and listed four “major mistakes” made by the North
Korean leader in 2002. These were:
• the establishment of the Sinuiju Special Economic Zone
on the border with China without prior consultation
with China, and in particular, the appointment of a
Chinese millionaire as its leader, whom the Chinese
immediately arrested and recently sentenced to 28 years
in jail for tax evasion, fraud and other alleged crimes.
• the implementation of a piecemeal series of economic
reforms, including drastic increases in domestic prices
and wages that have had a highly negative inflationary
impact in the absence of other necessary reforms.
• the admission to Japanese Prime Minister Koizumi that
North Korea had kidnapped Japanese citizens for
espionage-related purposes in the 1970s and 1980s.
• the admission to Assistant Secretary of State James Kelly
that North Korea had started a highly enriched uranium
weapons development program in violation of previous
agreements signed with the U.S. and South Korea.
The American official described these four “mistakes”
as evidence of the misguided nature of Kim Jong Il’s
leadership. He seemed to rule out any consideration of
the possibility that these moves by the North Korean
regime had in fact been efforts, however poorly
implemented, to change the direction of its economic
policies and the nature of its relations with Japan and
the United States. The New York audience took this
presentation as strong evidence of the perceived need
within the Bush administration for regime change (i.e.,
regime removal) in North Korea.
The Washington conference was launched by a
thoughtful, almost Hamlet-like exploration of the question
“Is the removal of Kim Jong Il in the interest of the Korean
people?” This exploration was rendered by a South
Korean intellectual who is nearly universally respected for
his accomplishments during a long and distinguished
career in government and diplomatic service.
This official said that Koreans in general are schizophrenic
on the question, both hoping for the removal of Kim Jong
Il and fearing the consequences of such a development.
Americans, he noted, are either for or against Kim’s
removal. Speaking personally, the official said that he
believed that any attempt to engineer regime change from
outside the targeted society is counter-productive.
4
VOLUME 3, NUMBER 4
LETTER FROM THE PUBLISHER
Consequently, he said, the approach he favors in the case
of North Korea is to promote a greater sense of security for
the regime that in the long run is likely to bring about
internal change, i.e., regime reform.
Other distinguished Korean speakers expressed deep
concern about attitudinal changes in South Korea toward
the United States, reflecting a loss of trust and confidence
in Washington’s decision-making. Others expressed the fear
that “9/11 has changed everything in America, including
foreign policy.” Some hard-line supporters of Bush
administration policy said in effect that this is true.
There was much discussion of the recent U.S. decision
to pull back the 2nd Infantry Division from its forward
position near the DMZ. Many Koreans expressed the
concern that this decision had been made on an emotional
basis in response to anti-American demonstrations in Seoul.
As a participant in both of these conferences I was left
with the somber feeling that South Korea and the U.S. are
at a critical juncture in what has been a highly productive
alliance for the past fifty years. I am not as pessimistic as
former secretary of defense William Perry, a man for whom
I have the utmost respect, who has expressed the fear of
war with North Korea erupting possibly by the end of this
year. I believe that the difficulties the Bush administration
is encountering in Iraq and Afghanistan will act as a natural
brake on the aggressive instincts of some of the president’s
neo-conservative advisors, particularly during the run-up
to next year’s presidential election. The next fifteen months
will be a period during which North Korea’s neighbors,
particularly China and South Korea, can work within a
regional context to set the stage for a negotiated end to
North Korea’s nuclear ambitions.
China is currently engaged in a highly commendable
effort to broker another multilateral meeting in Beijing.
This is a hard task for the Chinese as harsh statements by
some of the Bush administration’s “outriders” have been
matched by overblown rhetoric from officials in
Pyongyang hinting that North Korea may be willing to
“transfer” weapons-grade plutonium to others, presumably
including terrorist organizations. This dangerously blurs the
line between North Korea being perceived as a proliferation
threat, which it clearly is, and North Korea being seen as a
contributor to international terrorism, something that it has
clearly denied being in the past. This kind of threatening
statement from Pyongyang plays into the hands of the
hardest-line people in Washington who would be delighted
to be able to depict North Korea in even harsher terms
than they have used up to now. Pyongyang’s official
spokespersons need to continue to make clear, as they did
during my visit to North Korea in April 2002, that they are
opposed to international terrorism, and that they stand by
the two UN-sponsored anti-terrorism protocols North
Korea signed in the aftermath of 9/11.
A few bright spots have recently emerged, that give
hope for a better dialogue with North Korea:
• the North Koreans have agreed to allow two teams
from the U.S. Department of Defense to enter North
Korea in August and September to search for remains of
American military personnel still missing from the
Korean War. I talked in depth during both of my visits
to Pyongyang last year with Lt. General Ri Chan Bok,
the North Korean official who signed this agreement.
He is an extremely tough but intelligent man. I take his
involvement in this MIA recovery process as a very
good sign.
• Mitchell Reiss has been appointed as director of policy
planning at the Department of State. Mitchell has been
a member of The Korea Society’s board of directors
and the author of Bridled Ambition, which includes an
interesting discussion of how Ukraine was induced to
give up its nuclear weapons. Recently, I have sent a
copy of this book to both President Roh Moo-hyun
and to one of my dialogue partners in Pyongyang, as I
believe the Ukraine precedent is potentially instructive
for the efforts to resolve the standoff with North
Korea. Mitchell also has visited North Korea and
negotiated with the North Koreans in connection with
his role in setting up KEDO. He is a firm believer in
dialogue with Pyongyang, not hostile confrontation.
• most important of all is the fact that President Bush
continues to take a moderate and sensible line in talking
about North Korea. What the president says sets both
the tone and the substance of our dealings with
Pyongyang. Even the outriders, such as Richard Perle,
will eventually be reined in by what the president says.
My own experience in foreign affairs dates back to the
days of the Dulles brothers who served energetically
under President Eisenhower, John at State and Allen at
CIA. U.S.-engineered regime changes in Iran and
Guatemala that were judged to be successful at the time
led eventually to the disaster at the Bay of Pigs in Cuba.
Today we see that the regime we put in power in
Guatemala was far worse than the one we removed, and
Iran has never forgiven us for the 1953 coup we directed
that reinstated the Shah. In Cuba, Castro remains in
power, and the 1962 Cuban Missile Crisis—a direct outgrowth of our attempt to overthrow Castro—was in my
view the most dangerous crisis in world history.
The news from Iraq brings grim, daily reminders of
how hard it is for a foreign power to bring order out of
chaos in a country shattered by invasion and war. These
factors give me some hope that the term “regime change,”
when applied to North Korea, will come to mean “regime
reform” instead of “regime removal.”
5
VOLUME 3, NUMBER 4
COOPERATION OR RIVALRY?
The Future of Japan-Korea
Economic Relations
in the New Asia
by Choong Yong Ahn
BASED ON MAP COURTESY OF THE CENTRAL INTELLIGENCE AGENCY, 1995.
Close But Far Neighbors: Korea and Japan
“A close but far neighbor,” is an expression commonly used by Koreans to describe Japan.
Perhaps, the Japanese have a similar phrase about Koreans. The expression captures the
fact that while the two countries are very close geographically, their relationship has been
characterized by a history of antagonism and mistrust. However, since the normalization of
diplomatic relations in 1965, Japan and Korea have rapidly developed their economic relations,
while also building a strong security alliance under the unique circumstances of the cold war
system. In the past three decades or so, Korea benchmarked Japan as a role model for economic
development and incorporated many of Japan’s industrial development and business methods
into its development strategies and policies. In addition, with Japan in the forefront, Korea was
able to enjoy “the advantage of backwardness.” However, despite Korea’s significant advances,
at present, it can by no means be considered a true economic rival of Japan simply because
Japan’s GDP is ten times larger than Korea’s.
Outside the realm of economics, there are still some
unresolved issues between the two countries. In its haste to
normalize relations with Japan, the Korean government
failed to fully expunge the ill will between the two nations
lingering from the history of Japanese colonialism and
World War II. Without a sincere resolution of the past,
Koreans have been unable to fully embrace Japan from the
heart. While the “diplomatic window” between the two
countries has been open since 1965, the “heart window”
between the two peoples has been slower to open. World
history has shown that many neighboring countries
experience conflict and antagonism rather than close and
friendly relations. This is because mutual trust and friendship between neighboring nations often depends on relative
power in terms of military strength, population, land, and
economic size, rather than on geographic proximity.
The world is changing now. The Cold War has ended,
and globalization prevails. Asia has begun to think deeply
about how to achieve regional self-reliance and maintain
sustainable development after the financial crisis that swept
across the region in 1997. To cope with the rapidly changing
global economic environment, Korea and Japan should resolve
past differences and go forward toward a constructive
agenda for trust building and regional peace and prosperity.
The new era of globalization demands that Korea and Japan
strive for more cooperation and maturity in their relations.
Both Countries Fail to Recognize the Impending Crisis
Then, how are Korea and Japan reacting to this everrapidly integrating global society? In my opinion, Korea
and Japan do not yet seem to appreciate the seriousness
and urgency of the need to adjust. Neither government has
recognized the possibility of a prolonged impending crisis.
Korea has been praised for its active restructuring efforts
and prompt recovery from the Asian financial crisis, which
erupted in 1997. Managing to fully repay its IMF loans two
years and eight months ahead of schedule, Korea turned
This article was prepared for a presentation at the conference “On the Brink: Japan, Korea and the Future of Regional Security in Asia,” which
was co-organized by The Korea Society and Japan Society and held on April 25, 2003.
6
VOLUME 3, NUMBER 4
PERSPECTIVES
itself into one of the biggest success stories of the IMF
bailout program. Some analysts even went as far as to say
that Japan should learn a lesson from Korea. However,
recently many Koreans have painfully realized that they
might have been premature in breaking out the champagne.
In Korea, sustainable development on the basis of
competitiveness, which is the ultimate goal of restructuring,
is not readily achievable. The process of reforming the
troubled business groups in Korea remains unfinished.
Reforms in the public sector and labor market have yet to
be implemented. In the meantime, accounting scandals at
major Korean chaebol have led overseas observers to
doubt Korea’s restructuring efforts. The tragic subway fire
accident also revealed the problems of hasty construction
practices and lack of a safety first principle. Unless Korea
resolves not only its unfinished reform agenda but also its
mentality of “high growth by any means,” Korea is likely
to suffer from the “disadvantages of backwardness” that
have inevitably resulted from the compressed economic
growth of the last three decades or so.
Japan seems to face many challenges as well, including
an unstable financial system and ongoing deflation, as well
as its declining domestic consumption. In 1970, Japan’s
share of world trade reached 6.1%, while China’s share only
constituted 0.7%. In 2001, however, while Japan’s share
remained at 6.1%, China increased its share up to 4.1%. From
1970 to 2001, Japan’s export share in East Asia sharply
decreased from 60% to 26.6%, while China’s share increased
from 5.3% to 17.6%. Japan’s decline and China’s growth is
obvious from the perspective of individual industries.
Traditionally, Japan has enjoyed strong competitiveness in such
capital-intensive industries as chemicals, metal, electronics,
automobiles and machinery. However, the competitiveness
of these industries based on the Trade Specialization Index
(TSI) has been continuously declining since 1990.
Reflecting this downward tendency, the increasing rate
of student inflows from other Asian countries to Japan
dropped to an average of 7.8% in the 1990s, from an
average of 18.2% in the 1980s. The pattern of Korean
students in Japan, the second largest national group after
the Chinese, showed a similar tendency of slower increase.
Weakening Economic Linkages
Since the normalization of diplomatic relations in 1965, the
trade volume between Korea and Japan has been rapidly
increasing. However, the significance of Korea-Japan trade
to both countries has been dwindling since 1970 mainly
due to the China impact. As shown in Figure 1, the share
Without a sincere resolution of the
past, Koreans have been unable to
fully embrace Japan from the heart.
of Korea-Japan trade in the total trade of Korea has fallen
from 37.0% in 1970, to 22.3% in 1980, to 15.2% in 1999, and
to 9.8% in 2002. Accordingly, in 2002 China toppled Japan
as the second largest market for Korean exports. China is
expected to eventually surpass the United States and
become Korea’s largest market in the near future.
Figure 1: South Korea’s Trade with Japan and China
Furthermore, Japan has been reducing its investment in
Korea. The share of Japanese investment, which accounted
for 49.5% of the total foreign investment in Korea in 1989,
dropped to 11.2% in 1999. Although the figure slightly
increased to 15.4% in 2002, the portion is still insignificant.
When we look at Japan’s investment to Korea as a share of
its total world investment, the amount is a trivial 1.8% as
shown in Figure 2. The insignificance of Korea’s share
results from Japan’s preference for low-wage regions like
China and Southeast Asia. Korea’s failure to provide a
business-friendly environment also accounts for the rush
to China by Japanese companies.
The reason behind these stagnant relations between
Korea and Japan lies in the change in the trade pattern
between the two countries. The complementary relations
in which Korea exported primary goods to and imported
capital goods from Japan in the 1970s has changed into
more competitive relations; that is, the two countries
compete against each other in the capital and technology
intensive sectors such as automobiles, shipbuilding, iron
and steel, and the semiconductors goods markets. In
addition, Korea has been able to expand its export markets
in China and Southeast Asia, but has had great difficulty in
penetrating the Japanese market due to Japan’s non-trade
barriers and self-sufficient industrial structure.
Nonetheless, the two countries are clearly crucial partners
for each other. As for Korea, Japan is still the third largest
export market and second largest import market. And for
Japan, Korea is the third largest export and import market.
Due to geographic proximity and close economic ties, there
has been substantial human exchange between the two
countries. In 2001, 2.3 million Japanese visited Korea, to
account for over 50% of the total foreign visitors to Korea. In
the same year, 1.5 million Koreans visited Japan, accounting
for about a quarter of the total foreign visitors to Japan.
7
VOLUME 3, NUMBER 4
PERSPECTIVES
Figure 2: Share of Japan’s FDI to South Korea
Japan’s Prolonged Economic Recession Also Harms Korea
Factors such as increased intra-industry trade and the
alignment of exchange rate policies by realizing near comovement of the yen and won against the dollar have
created a close economic relationship between the two
countries. In this relationship, the Korean economy is
affected by the fluctuation of Japan’s economy. In other
words, Korea’s economic stability is dependent on Japan’s
economic growth and stability. Currently, due to Japan’s
prolonged economic recession, it is difficult for Korea to
export its products to Japan. Manufacturers in Japan have
struggled to meet the growing demand of Japanese
consumers for low-priced products by cutting down on
costs. As a result, Japan’s price competitiveness has
improved to a level similar to Korea’s. In addition, Japan
has opened its domestic market to East Asia’s low-priced
goods, resulting in a drastic increase in Japan’s import
share from East Asia from 28.9% in 1991 to 42.7% in 2001.
However, during the same period, China’s market share in
Japan increased from 6.0% to 17.2%, whereas Korea’s
market share decreased from 5.2% to 4.9%.
Even though East Asia’s share in Japan’s total imports
has increased, Korea’s exports to Japan have decreased
due to Korea’s declining price competitiveness. Thus,
Korea has not gained any benefits from Japan’s economic
recession. Moreover, if the recession continues, Korea is
not likely to benefit from a bilateral FTA with Japan since
China’s tremendous cost advantage will mean an even
greater loss of price competitiveness for Korean products
in Japan’s domestic market. Moreover, in industries such
as iron and machinery, Japan’s mid-level engineering
companies in the Ota-Ku industrial cluster competitively
and drastically slashed costs in order to survive the
recession, making it tougher for Korean companies to
maintain their price competitiveness.
I believe that middle-income countries such as Korea and
Taiwan are the first victims of Japan’s long-term economic
recession and deflation. This is one of the key reasons why
Korea-Japan cooperation is so essential. Japan should
accelerate the restructuring and enhancement of its industrial
structure not only for its own benefits but also for its
neighboring countries as well. Currently, Japan’s economy
is in a vicious cycle. To overcome the management difficulties
triggered by stagnant consumption, the majority of companies
are being forced to adopt cutthroat strategies, by laying off
their employees to cut costs; however, this has caused higher
unemployment and even more stagnant consumption.
Furthermore, this excessive cost cutting competition is
pressuring middle-income countries in the region such as
Korea and Taiwan to cut their production costs as well.
Considering these problems, Japan should boldly shift
its labor-intensive and medium-tech industries to
neighboring countries in the region and specialize in high
value-added industries instead. In the past, with the
exception of the late 1980s when Japan maintained a full
set economy, Japan led Asia’s development in the pattern
known as the “flying geese.” However, Japan’s long-term
recession and delayed industrial upgrading have been
detrimental to the development of middle-income countries
in the region. Thus, the economic recovery and industrial
upgrading of both Japan and Korea is crucial for the two
countries. I hope that Japan will soon overcome its
economic depression to reclaim its old position.
Effects of Korea’s Adverse Trade Balance with Japan
Korea’s chronic trade deficit against Japan has continued to
worsen with the declining economic relationship between the
two countries. Clearly, the increase in Korea’s imports of technology-intensive intermediate and capital goods from Japan
triggered by Korea’s rapid development has led to this trade
imbalance. Korea’s trade deficit against Japan has contributed
to Korea’s industrial development. However, on the macroeconomic management side, it has caused a chronic deficit in
the current account, contributing to the emergence of the
external debt and currency crisis in Korea in the late 1990s.
It is not the size but the content of the adverse trade
between the two countries that matters; the ongoing deficit
reflects Korea’s lack of competitiveness in high technology,
which has become the greatest obstacle to Korea’s industrial
development. Thus, the adverse trade balance is an issue
not only for Korea-Japan relations, but for the Korean
economy itself. Nevertheless, Korea’s unilateral demand
for more investment from Japan or requests for more
access to Japan’s domestic market is not the solution to the
trade imbalance. The government and private firms of
Korea need to do their respective parts to overcome the
In other words,
Korea’s economic stability
is dependent on Japan’s
economic growth and stability.
8
VOLUME 3, NUMBER 4
PERSPECTIVES
deficit. The Korean government and businesses should ask
themselves the following questions: Has Korea done enough
to remove impediments to FDI from Japan? Has Korea
done enough to produce high quality exportable products
to Japan with an in-depth study on the characteristics of
the Japanese market and consumer behavior?
Japan Still a World Technology Frontier
Korea can learn a great deal from Japan. The success stories
of Toyota and Canon’s new Japanese style management
model in a time of long-term recession has been very
encouraging for Japanese firms as well as Korean companies.
In addition, Japan’s R&D infrastructure ranks second in
the world in terms of the number of researchers and the
amount of research funds. As for standardized population
and GDP, Japan’s R&D tops the world. Even in times of
recession, Japan’s continued emphasis on science and
technology not only enhances the status of its national
economy but also hints at the potential of the next
generation of technology.
Since Yukawa Hideki, the first Japanese laureate of the
Nobel Prize for Physics in 1949, nine more Japanese scientists
have garnered this prestigious award. Japan ranks 9th among
nations in terms of the number of Nobel laureates in the field
of natural sciences. The Nobel Prize for Chemistry in 2002
was given to Koichi Tanaka, an ordinary assistant manager
at Shimadzu Corporation. Mr. Tanaka, a Nobel laureate
without a Ph.D., is living proof of Japan’s potential strength
and the symbol of Japan’s devotion to fundamentals. The
number of patents applied for internationally by Japan in
1998 was 430,000 cases. This is 1.7 times more than the U.S.,
the second runner up in terms of international patent
applications. The point is that Japan’s technological strength
did not accumulate in a short period. It takes time to build
a sustainable technological foundation. Korea is weak in
this respect. We should bear in mind that through a close
relationship with Japan we should be able to learn much to
enhance our R&D capabilities and fundamental strengths.
The Changing Relationship Between Korea and Japan
The relationship between Korea and Japan has not always
been smooth. As is well-known, historical issues have always
been an obstacle to partnership and confidence-building.
In the context of the economic relationship between Korea
and Japan, Korea tends to unilaterally request favors such
as technology transfers and the import of Korean products
by Japan to lessen its trade deficit. However, Japan has
always pointed out that the Korea-Japan bilateral trade
deficit should be considered in the context of the global
current account, insisting that Korea’s trade deficit with
Japan contributes to Korea’s global export promotion and
occasional global trade surplus. The two countries have
maintained their respective positions for many years.
However, in October 1998, the historic state visit of
It is not the size but the content
of the adverse trade between
the two countries that matters...
President Kim Dae-jung to Japan paved the way for Korea
and Japan to shift into a future-oriented and cooperative
relationship. Furthermore, the successful cohosting of the
2002 Korea-Japan World Cup games will have an everlasting effect on the relationship between the two countries.
Through this event, the mood for cultural exchange
between the two countries has been very positive. One of
the most symbolic changes has been Korea’s removal of
restrictions on cultural exchange between Korea and
Japan. There has been a lot of concern within Korea over
the influx of Japanese culture. However, I believe that the
exchange of movies, music, and broadcasting has been a
positive factor in broadening the understanding among
the citizens of our two countries. And we have noticed that
the government does not have to be engaged in these
exchanges. Korea-Japan bilateral exchanges in the social
and cultural arenas have been proliferating, indicating that
Korea-Japan relations are improving.
The Korea-Japan FTA: Renewal of Bilateral Relations or
Spaghetti Bowl Game
After the financial crisis, the Northeast Asian countries—
China, Japan, and Korea—began to show a great interest
in FTAs. In 1998, Korea announced its plan to proceed with
an FTA with Chile and also began a joint study with Japan.
The Korea-Chile FTA negotiations were launched in
December 1999 and concluded in October 2002. China
proposed the possibility of an FTA with ASEAN at the
Singapore ASEAN-China summit in November 2000. At
the Phnom Penh ASEAN-China summit, China proposed
an early harvest package for tariff reductions on 600
agricultural items to ASEAN countries, and announced its
wish to conclude an FTA with ASEAN by 2004. Discussions
of an ASEAN-Japan FTA have progressed rapidly since
talks of an FTA between ASEAN and China began.
Now, Korea and Japan are also holding discussions on
a bilateral FTA, which are being facilitated through a ‘Joint
Study.’ The Joint Study Committee, which consists of
representatives of government, academia and financial
circles, comprehensively reviews all issues, such as the
expected economic effects, scope and basic direction of an
FTA. The Fifth Korea-Japan Conference was held in Seoul on
April 14-15, last year. Intuitively, among various possible
FTAs in East Asia, an FTA between Korea and Japan seems
to be the most natural. Korea and Japan are immediate
neighbors, both liberal democracies with a high level of
development, both OECD members, and U.S. allies.
I would like to point out that the Joint Study concluded
9
VOLUME 3, NUMBER 4
PERSPECTIVES
that the Korea-Japan FTA would have many positive
effects, such as intra-market expansion and the deepening
of mutual cooperation. The Joint Study’s most visible
achievement was its agreement to form a Non-Tariff
Measure (NTM) Cooperation Committee. Above all, it is
important for the Committee to find NTMs, improve them,
and realize a trade equilibrium. However, more importantly,
Japan responded positively to the NTM Committee
proposal. I believe this is an important development
toward the establishment of mutual trust between the two
countries, and that it will eventually contribute to creating
a favorable environment for the conclusion of an FTA. It is
true that both countries have been notorious for imposing
non-transparent and nontariff barriers. Therefore, the
creation of this NTM Cooperation Committee at this time
should not only become an important first step towards an
FTA, but also provide an opportunity to build an integrated
market that is transparent and open.
In the field of automobiles, iron and steel, petrochemicals,
semiconductors and electronics, the companies of both
countries have invested in duplicate ways for achieving
market share and cost competitiveness. As a result, Japan
has suffered from excessive non-performing assets, overcapacity, and over employment in these sectors. I believe
that the Korea-Japan FTA will be a very effective tool for
solving the overcapacity problems.
The Korea-Japan FTA may bring unwanted problems to
both countries, and this cannot be ignored. However,
rather than focusing on the negative effects, there should
be a conceptual shift so that the two countries can use the
FTA as an opportunity for structural reform and for
improving industrial competitiveness. I believe that both
Korea and Japan, unique in Asia as OECD members, can
achieve improved competitiveness, restructuring, and
strengthened market transparency, if competition becomes
intensified through the conclusion of a comprehensive FTA.
Therefore, both countries should cooperate to increase the
benefits of their integrated market, and simultaneously to
enhance the competitiveness of their private sectors.
If China, Japan and Korea competitively pursue bilateral
FTAs with ASEAN, this may result in several important
issues such as spaghetti bowl effects, a hub and spoke
dilemma, regional leadership struggle, etc. R.E. Baldwin
(2002) states that the Korea-Japan FTA can be a core group
for the formation of regional trading blocs in East Asia and
Northeast Asia.1 Korea and Japan should design their FTA
to be a model case for East Asian countries. And, in
addition to their bilateral FTA, the two countries should
also pursue an FTA with China.
China Alters Korea-Japan Economic Relations
Despite the absence of a formal framework of regional
cooperation, the deepening as well as changing mutual
interdependency within Northeast Asia is evident in the
trade intensity index between Korea, Japan and China.
Table 1: Trade Intensity Index among Korea, China & Japan
Year
Korea
Korea
1980
1985
1991
1996
2001
China
1980
1985
1991
1996
2001
0.12
1.01
0.32
0.79
2.02
Japan
1980
1985
1991
1996
2001
3.59
2.47
2.79
2.57
2.86
China
Japan
0.08
0.06
0.78
2.84
3.22
2.39
2.23
2.61
1.88
1.98
2.90
3.30
2.17
3.17
3.21
3.71
3.18
1.52
1.88
1.98
Source: IMF, Direction of Trade Statistics Yearbook, various issues.
As shown above in Table 1, the level of trade intensity
between Korea and China was merely 0.08 in 1980, but
grew to 0.78 in 1990, 2.84 in 1996 and 3.22 in 2001 with the
formal opening of bilateral trade between the two countries.
Thus, the economic relations between the two countries
have continuously and remarkably intensified over the last
two decades. That is, the ratio of exports from Korea to
China has increased sharply and China’s share of Korea’s
foreign export market has increased at breakneck speed,
turning China into a major export market for Korea.
The trade intensity index between Korea and Japan
shows the figures of 2.39 for 1980, 2.23 for 1985, 2.61 for
1991, 1.88 for 1996, and 1.98 for 2001. The index shows that
the relationship between the two countries has grown less
intense over time. In contrast, the index between China
and Korea shows the figures of 0.12 for 1980, 1.01 for 1985,
1.32 for 1991, 1.79 for 1996, and 2.02 for 2001, indicating a
roughly 20-fold increase in intensity over the last two
decades. This means that the share of exports from Korea
to China and vice versa have increased very rapidly.
Though the trade intensity index between China and
Japan sharply dropped in 1991, the index has still
remained as high as 3.17 since 1996. This indicates that
despite the drop, the relationship between China and
Japan on trade is still intense.
The trade intensity index of Japan with Korea has
continued to fall and remain stagnant: After reaching 3.59
in 1980, the index fell to 2.47 in 1985, and remained stagnant
at 2.79 in 1991, 2.57 in 1996 and 2.86 in 2001. The trade
intensity index of Japan with China also shows a drastic
decrease and stagnancy; starting from 3.71 in 1980, the
index declined to 3.18 in 1985, 1.52 in 1991 and remained
stagnant at 1.88 in 1996 and 1.98 in 2001. This phenomenon
is due to the high increase in China’s share of global imports
10
VOLUME 3, NUMBER 4
PERSPECTIVES
The new era of globalization
demands that Korea and Japan
strive for more cooperation
and maturity in their relations.
even though Japan’s export share to China increased.
With regards to intra-regional trade characteristics, Korea
maintained a close and complementary relationship with
Japan before 1990. However, after 1990, Korea’s relationship
with China became closer and more complementary. China,
on the other hand, showed a closer relationship with Japan
than Korea during the period covered in this paper, while
Japan became closer and more complementary with Korea
than China after 1990. The intra-regional trade intensity of
all three countries was very high. This continuous increase
of trade intensity among the three countries is due to the
intensified interdependence in terms of international trade.
Korea-Japan Partnership
for East Asian Financial Development
Since the financial crisis of 1997-98, regional monetary and
financial cooperation has been a central issue for East Asian
governments and academics. The discussions range from
proposals for new exchange rate regimes and a common
regional currency to suggestions on building regional
financial facilities. The need for regional cooperation arises
from the expanding global trend toward regionalism. As it
becomes increasingly difficult for small open economies to
secure stability in the face of rapid globalization,
arrangements for regional financial and monetary
cooperation are becoming essential. The first regional
financial arrangement in East Asia emerged with the
introduction of the Chang Mai Initiative (CMI) in May
2000. The CMI facilitates bilateral swaps of up to U.S. $27
billion among the ASEAN+3 countries. In addition,
information exchange and surveillance processes have
also been established in the form of monitoring systems for
short-term capital flows and early warning systems. More
importantly, the ASEAN+3 member countries agreed to
expand their policy dialogue to monitor the recent economic
developments and policy issues of individual countries.
So far, Japan and Korea have played an important role
in advancing monetary and financial cooperation in East
Asia and they should continue to be pivotal forces for the
region in the tasks that lie ahead. First of all, in order to
stabilize regional exchange rates, both countries should
actively cooperate to coordinate their exchange rate policies
and to introduce a new regional exchange rate system,
either a regional currency basket system or common currency
system. Secondly, Japan and Korea should contribute to
more capital market development in East Asia. A welldeveloped capital market, especially bond market, could
promote stable capital flows in the region and provide the
long-term financing necessary for economic development.
The recent Asian bond market initiatives might be a good
issue for Japan-Korea cooperation. Finally, Japan and
Korea should contribute to the adoption of international
standards in the region, and to improving the regional
financial infrastructure including accounting, auditing
and disclosure rules, credit rating systems, and regional
payment and settlement mechanisms.
A New Partnership in the Dynamics of
Competition and Cooperation
Undoubtedly, Japan is one of the world’s most advanced
countries in terms of the technological ladder. However,
Japan already began its shift into an aging society in the
1970s. On the other hand, Korea is now on the verge of
becoming an aging society. Many Japanese say that, unlike
Japan, they can feel a vitality in Korea. Korea does not fear
changes once it feels the need for them, although its future
path is still uncertain and rugged. The new Korean
government is striving to solve the problems of labormanagement relations and intellectual property rights and
to improve the transparency of accounting practices. The
country created a miracle from the ruins of the Korean War
and survived the Asian financial crisis. Korea is a passionate
crisis-responding country in which the general public
mobilized privately held gold to pay for foreign debts during
the financial crisis of 1997. Moreover, if the vitality of Korea
and the advanced technology of Japan are combined, the
two countries will be able to go beyond 1+1=2.
The Korea-Japan FTA could be a challenge and big
risk to both countries as well. In order to lead the FTA
successfully and retain greater competitiveness in the 21st
century, Korea and Japan should try to forge strategic ties.
Now, the two countries must develop good competition
for mutual gains, and simultaneously induce the dynamics
of competition and cooperation towards coexistence and
prosperity in East Asia. With such mutual benefits in sight,
the two countries should bury the legacies of their history
of animosity and conflict, and look ahead to becoming
good neighbors based on mutual trust and cooperation. Endnotes
1. Refer to Richard E. Baldwin (2002), “Asian Regionalism:
Promises and Pitfalls,” presented at the international
conference on Prospects for an East Asian FTA, held in Seoul,
Korea on September 18, 2002.
Prior to assuming his position as president
of the Korea Institute for International
Economic Policy (KIEP) in January 2002,
Choong Yong Ahn was a professor in the
Department of Economics at Chung-Ang
University for almost 30 years.
11
VOLUME 3, NUMBER 4
PERSPECTIVES
IMAGE COURTESY OF: KOREA NOW
by Tae-Hee Yoon
ew nations have gone through the political, social and economic transformations that
Korea has experienced in the past 50 years. At the close of World War II, upon finally being
liberated from 36 long and brutal years of Japanese colonial rule, the Korean peninsula
was divided in two.
F
Within two years of its birth, the Republic of Korea, or
South Korea as this new nation state is commonly known,
was subjected to a devastating three-year conflict. This
destroyed what little productive infrastructure it had, with
the notable exception of its land and its people.
Those who lived through the Korean War and its aftermath still vividly remember the overwhelming poverty of
those bitterly cold winters. Within a few decades, however,
Korea took its place among the leading nations of the
world, emerging as a major industrial power and creating
the “Korean Miracle” as development economics jargon
has dubbed it.
A per capita annual income of $10,000 underpinned its
position as one of the world’s dozen largest economies.
Ultimately, its burgeoning economy led to its admission
into the OECD. Korea had transformed itself from a
subsistence agrarian economy to an industrial nation,
boasting some of the world’s largest production capacities
in steel, automobile manufacturing, shipbuilding, electronics
and IT-related technologies. There were also outstanding
achievements in social policy, with illiteracy and absolute
poverty successfully tackled.
In political terms, the Korean people finally won their
long fought after freedom from military dictatorship, as
well as the right to elect their own leaders in free elections.
These achievements were first perceived as somehow
flawed during the 1997-98 financial crisis that ultimately
led the government to resort to a massive IMF bailout
package that imposed stringent policy reforms.
Korea was subjected to the unusual political humiliation
of each presidential candidate being compelled to make
public promises to the IMF, to the effect that they would
accept the IMF reform program should they be elected.
Five years later, Korea successfully elected another new
government on December 19, 2002, the electorate having
been promised “a new democracy and further prosperity”.
Although Korea may share traits with other economies
that have ended up in dire straits, there were unique
factors leading up to its 1997-1998 financial crisis. Up to
that point, economic growth had been based on stateinduced export promotion, which favored selected sectors
and beneficiaries when it came to resource allocation and
business opportunities.
The system exemplified the insufficient sensitivity to
profitability as a guiding criterion for investment by the
chaebol (conglomerates), in their ever-expanding domestic
and overseas investments. This manifested itself in the
high leverage and over-capitalization of Korean companies,
based on borrowed money and unfounded confidence in
their competitiveness.
Although such a funding structure forced growth and
served its purpose initially, the cumulative effects of
unconstrained investment led to a major crisis of foreign
exchange liquidity. Once the financial pinch was felt,
corporate bankruptcies multiplied, weakening the already
overburdened financial sector with nonperforming loans
and bad credit risks.
Foreigners lost confidence in Korea as the current
This article is re-printed with permission from Global Agenda, the magazine of the World Economic Forum Annual Meeting 2003.
12
VOLUME 3, NUMBER 4
PERSPECTIVES
account deficit rocketed. Foreign funds then started
leaking out of the country, leading to an increasing foreign
liquidity risk. This situation was exacerbated by an
unacceptably high short-term debt/external debt ratio.
A chain reaction of such intensity provoked a psychological
panic in whose wake came a collapse of the real estate and
securities markets. A large number of bankruptcies ensued.
The cumulative effect was that a full-blown economic,
political and social crisis erupted, unprecedented in recent
memory. Koreans refer to it as the “IMF Crisis” since it
symbolized Korea’s humiliation at having to submit to the
IMF bailout conditions in November 1997.
The lack of advance warning of this crisis can be
attributed to inadequate banking surveillance. A startling
example is the way the then common merchant banks
mismanaged the extension to customers of long
term-loans based on short-term overseas credit.
Another inherent by-product of the Korean growth
model was the endemic moral hazard at governmental and
corporate levels, where the myth of “too big to fail” was
prevalent. Such unsustainable practices greatly contributed
to the absence of transparency and corporate governance,
and weak financial accountability.
Fortunately, once the full-blown crisis hit, it served to
ignite one of Korea’s patriotic traits—spontaneous union
in a common objective of collective survival—which has
invariably occurred throughout Korea’s long history of
struggle against foreign intrusions.
A national consensus quickly emerged that lent full
support to the newly elected coalition government in its
fight to overcome foreign exchange liquidity problems and
in its efforts to implement the structural reforms deemed
necessary for the removal of problematic elements in the
economic system.
The people’s determination to overcome the crisis could
be witnessed on TV screens worldwide: emotional scenes
in which numerous Koreans donated their cherished
jewelry, family heirlooms, wedding rings and household
treasures as their personal contribution toward resolving
the national foreign currency crisis.
The government swiftly moved to secure a $35 billion
IMF loan and the $23 billion debt was rescheduled. In
addition to the measures taken to bolster foreign exchange
reserves, a drastic tightening of fiscal and monetary policies
was initiated that ultimately led to the stabilization of
prices and foreign exchange rates.
Foreign investment was thus encouraged to return. Some
of these emergency measures were relaxed at a later stage.
Moreover, the government embarked on comprehensive
and sweeping structural reforms, with broad policy
objectives for promoting the transformation of the staterun economic management into a market-determined
economic system.
Though the merits and appropriateness of such
monetary and fiscal policies was questionable at such an
early stage, the measures taken by the government were
Korea has created a new comparative
advantage, based on its expertise in
high-tech industries and a knowledge-friendly workforce. As the most
educated labor force in the world, the
Koreans are quietly working on the
cutting edge of new technologies...
not in any way undermined by the debate that ensued, or
by the reservations voiced by some observers.
As a result, Korea was able to achieve a growth rate of
10.9% and 9.3% in 1999 and 2000, respectively. In 2001, it
became the first IMF rescue package recipient in Asia to
repay its loan in full, three years ahead of schedule.
In October 2002, foreign exchange reserves reached a
record $117 billion, compared with $4 billion at the time of
the crisis. Direct foreign investment in 2001 was $11.9
billion, compared with $0.7 billion in 1997. The current
account surplus in 2002 is projected at between $4 billion
and $5 billion, compared with a 1997 deficit of $8.2 billion.
Major international credit agencies have now reinstated
Korea’s sovereign credit rating to the pre-crisis level.
There will no doubt be endless debates on the Korean
reform efforts, producing different scorecards depending
on the differing positions of critics and analysts. It should
be borne in mind, however, that reforms of this nature and
magnitude could never be completely satisfactory. Nor is it
possible that such reforms could be implemented entirely
successfully in such a short time. Assuring their success
and sustainability demands continuous efforts.
Given the large number of reforms that remain
incomplete, there is no room for complacency. The government has attempted to broaden fundamental reforms
in different sectors of the economy—corporate,
finance/banking, public and labor—in addition to general
administrative and political reform efforts.
The first two sectors witnessed the most dramatic and
irrevocable progress—one that will have a lasting impact
on the Korean economy. The remaining areas must be
addressed by the newly elected administration.
In order to maintain the competitiveness of the Korean
economy, the elimination of labor force rigidity and the ability
to hire and fire according to corporate requirements are the
most important conditions for achieving sustainable growth.
Some of the fundamental reforms that future governments
need to introduce include:
» reprivatization of the state-dominated commercial
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VOLUME 3, NUMBER 4
PERSPECTIVES
banks, created by massive injection of public funds;
» privatization of the inefficient state-owned enterprises
(SOEs), which is progressing at an unacceptably slow pace;
» expansion of social infrastructures commensurate with
projected economic activities;
» wide-ranging administrative and political reforms
including the upgrading of public services, and the
eradication of corruption;
» the improvement of the general social safety net; and
» improvements to the educational system that would
align it to the needs of the national economy.
Among the revolutionary reforms quietly achieved
during the past five years was the improvement in corporate
transparency and decision-making accountability. Sixteen
of the 30 largest chaebol were either restructured, sold,
merged or liquidated during that period.
The average debt/equity ratio has dramatically
improved from about 400 in 1997 to 135 in mid-2002.
Transparency and management accountability were
introduced through the mandatory publication of
combined financial statements and the adoption of a
system of nonexecutive, outside directors—although its
operation is not as yet fully satisfactory.
For the first time in its history, Korea is witnessing the
emergence of professional managers, while simultaneously
seeing the overnight disappearance of top-down business
decision-making practices.
A notable cleanup operation was achieved in the
financial system through restructuring and the injection of
$130 billion of public funds. This resulted in the reduction
of nonperforming loans from $51 billion at the end of 1999
to $12 billion in mid-2002 (2.4% of total lending).
The number of financial institutions in Korea was
reduced by nearly 30%, from 2,101 in 1997 to 1,548 in
2001. The banking sector has been undergoing massive
consolidation and mergers as well as increasing autonomy
from government, thereby increasing profitability.
The consolidation of banking is continuing. Other marketdriven systems and the risk concept were introduced
through the application of such systems as the new Bank
for International Settlements capital adequacy criteria.
The most visible indication of the improvements in the
corporate and financial sectors is the dramatic increase in
foreign ownership of traded Korean companies since 1997.
This in itself is truly impressive, especially if compared with
how other economies coped with the Asian financial crisis,
not to mention Japan’s dismal record in financial reform.
This raises the question: was there anything special or
unique about Korea’s reform process?
Given the nature of the coalition government elected
during the financial crisis, and the notorious Korean political
culture of infighting and backbiting, it was remarkable that
a minority partner party in the coalition was entrusted
with structural and policy reform at the outset.
This is largely a result of the political leadership of Kim
Dae-jung, although he was undoubtedly helped in this
task by his people’s determination to turn an adverse
situation into an opportunity.
Despite minor dissent and chaebol efforts to rollback
progress achieved in the corporate and financial sectors,
no opposition to the proposed reforms was effective enough
to hinder the administration’s efforts. If anything, the fact
that those reforms have not yet been completely carried
out can be attributed to the subsequent deterioration
in the leadership.
In any event, the Korean experience illustrates the
need for determined political leadership in reform and
crisis management.
One exogenous and thoroughly unique variable to
South Korea’s economic future is the North Korea factor.
Some 50 million “work hard, play hard” citizens of South
Korea are prepared to confront this very likely challenge in
order to survive on the unfolding Asian economic stage
and ever changing world economy.
Korea has created a new comparative advantage, based
on its expertise in high-tech industries and a knowledgefriendly workforce. As the most educated labor force in the
world, the Koreans are quietly working on the cutting
edge of new technologies, such as information processing
and communication technology.
One of the benefits of these efforts is reflected in recent
statistics: some 51% of Koreans use the internet, and
practically every school child in Seoul carries a cellular
phone. Some forecasters expect Korea to become the forthcoming “northeast Asian business and financial hub”.
But every important individual and national decision
taken in South Korea is contingent on one assumption:
that nothing goes wrong to the north. This has always
been uniquely ironic: South Koreans are among the most
promising but also the most vulnerable people on earth—
without the practical means to determine their own future
in an international context.
The South Korean government’s recent Sunshine
Policy towards North Korea should not only be seen as a
humanitarian gesture but also as a desperate effort to
pursue survival and peace so that its citizens can enjoy the
fruits of the economic prosperity for which they have
fought so hard. Dr. Tae-Hee Yoon is president of
Seoul University of Foreign Studies
and senior adviser on Korea to the
International Finance Corporation.
He is also chairman of Korea
Economic Intelligence in New York
and adjunct professor of agricultural
and applied economics at Clemson
University, South Carolina. He was a
senior staff member of the World
Bank for 25 years and then vice-chairman of the financial advisory services
practice at PricewaterhouseCoopers.
14
VOLUME 3, NUMBER 4
by Peter J. Hotez
The breadwinner of a North Korean family is struck down by tuberculosis.
The Cold War Legacy of Vaccine Diplomacy
In his 2002 State of the Union Address, President Bush denounced the Democratic People’s
Republic of Korea (DPRK) for its alleged violations of previous nuclear proliferation
agreements. Together with Iran and Iraq, President Bush linked the DPRK to an “axis of evil.”
In the subsequent 12 months, our relations with the North Koreans deteriorated even further
when the DPRK expelled International Atomic Energy Agency inspectors, announced its
withdrawal from the Nuclear Non-Proliferation Treaty, restarted its reactor at Yongbyon, and
pursued a uranium enrichment program (Kelly, 2003). Despite these setbacks, it was
announced in April 2003 that a Bush administration official intended to travel to Beijing for
talks with North Korean, U.S. and Japanese officials (DeYoung, 2003). This is the latest attempt
by the U.S. to renew dialogue with the North Koreans in the context of multilateral negotiations
with all of the countries in the region, including China, South Korea, Japan and Russia.
Renewed discussions could be a first step towards stabilizing the region and possibly even
lead to rapprochement between North and South Korea.
Because so much is riding on this nascent diplomatic
action it might be worth exploring innovative conflict
resolution methods, which previously have led to successful
diplomacy elsewhere in the world. This includes a little
known but effective scientific collaboration that helped
reduce Cold War tensions between the U.S. and the Soviet
Union between 1956 and 1977. Within this period, the
bilateral discovery and development of new vaccines to
combat our most serious infections created powerful
instruments for diplomacy and conflict resolution (Hotez,
2001a). Most Americans are surprised to learn that the live
attenuated oral polio vaccine (OPV) was developed and
tested through U.S. collaborations with Soviet virologists.
This required both nations to put aside their strong ideological differences during the late 1950s (Benison, 1982),
and work together towards common medical and scientific
goals. OPV was initially derived from viral strains developed
in the Cincinnati Children’s Hospital laboratory of Albert
Sabin. However, it was Soviet virologists struggling to
combat polio epidemics in the USSR who subsequently
fashioned the strains into a human vaccine. OPV, in turn,
was licensed in the U.S. only after it was shown to be safe
and effective in millions of vaccinated Soviet schoolchildren. Poliomyelitis was subsequently eradicated in the
United States through widespread vaccination. On the
heels of this success, a joint effort with the USSR led to
improvements in the smallpox vaccine used to eradicate
the disease by 1977. We can therefore partly attribute the
successful eradication of polio in the Western Hemisphere
and the worldwide eradication of smallpox to Cold War
vaccine diplomacy!
The Link between Health and Security
Since the end of the Cold War, the legacy of vaccine
diplomacy has been almost forgotten. The legacy is now
being partially resurrected in polio-endemic regions of
Africa and Central America where the United Nations
15
VOLUME 3, NUMBER 4
PHOTO COURTESY OF WWW.GOSPELCOM.NET.
The Promise of Medical Science
and Biotechnology for North Korea
and the Relevance of
U.S. “Vaccine Diplomacy”
PERSPECTIVES
Further analyses suggest that
infant mortality rates as well as
rates of under-5 childhood mortality
A computer generated
model of the polio virus
may influence the likelihood of
a nation entering an armed conflict...
Children’s Fund (UNICEF) and the World Health
Organization have successfully negotiated cease-fires in
war-torn regions of Sudan, Sierra Leone, and Afghanistan
in order to conduct successful immunization campaigns
(www.unicef.org; Hotez 2001a). In addition, renewed
interest in the HIV/AIDS pandemic has recently focused
international attention on the wider role of infectious
pathogens as destabilizing agents of national and international security. New reports issued by the National
Intelligence Council of the Central Intelligence Agency
(2000), International Crisis Group (2001), and the Chemical
and Biological Arms Control Institute and CSIS (Moodie
and Taylor, 2000) identify emerging infections such as
malaria and tuberculosis as important, yet previously
overlooked, international security issues.
Further analyses suggest that infant mortality rates
(IMRs) as well as rates of under-5 childhood mortality
may influence the likelihood of a nation entering an armed
conflict (National Intelligence Council, 2000; Hotez, 2001b;
Hotez, 2002). In the developing world, IMR and under-5
childhood mortality is largely attributable to infectious
diseases superimposed on underlying malnutrition. As a
nation’s childhood mortality risk exceeds 100 per 1000, the
probability of it becoming engaged in an armed conflict
increases substantially (Hotez, 2001b). A similar relationship
exists between conflict and the incidence of tuberculosis
and other infections (Hotez, 2002). There are a number of
plausible mechanisms to explain this link between infectious
diseases and security. They include the promotion of capital
flight, reduced gross national product, increased population
pressures that force human migrations and urbanization,
increased competition for limited resources, loss of confidence
in government leadership to manage epidemic situations,
and depletion of skilled government administrators as a
consequence of disease (Moodie and Taylor, 2000).
Ascaris roundworms
COURTESY OF HTTP://DBS.KUMC.EDU/DMD/?MIVALOBJ=1680 ASCARIS ROUNDWORM.
A man who suffers from the Korean hemorrhagic fever caused by the Hantaan virus.
COURTESY OF WWW.TELEMEDICINE.ORG.
Health and Security in North Korea
The downstream possibility that the Bush Administration
might restart negotiations with the DPRK on a broad range
of security issues and to proceed with a comprehensive
engagement strategy (Mufson, 2001) creates an exciting
new opportunity to explore the connection between health
and security in the region. North Korea is now emerging
Vaccines for tuberculosis and measles can be administered orally to children.
PHOTO COURTESY OF WWW.GATESFOUNDATION.ORG/ GLOBALHEALTH/INFECTIOUSDISEASES/VACCINES/DEFAULT.HTM.
16
VOLUME 3, NUMBER 4
PERSPECTIVES
Widespread malnutrition together
with a breakdown in key sectors of
North Korea’s public health infrastructure establish volatile conditions
that could promote epidemics.
from one of the worst famines to strike Asia in the twentieth
century. Widespread natural disasters including floods
and then drought between 1995 and 1998 resulted in crop
failures that forced large segments of the population to
consume bark and wild plants for sustenance (Oberdorfer,
1997). Although precise data are lacking some estimates
indicate that between 800,000 and 3 million people perished
from hunger (Owen-Davies, 2001). A survey conducted by
UNICEF and the World Food Program found that more
than 60 percent of North Korean children aged six months
to seven years suffer from moderate to severe malnutrition
(MMWR, 1997; Katona-Apte and Mokdad, 1998). In many
rural areas of the country, there are large numbers of
children who have developed growth stunting and even
mental retardation as a consequence of chronic malnutrition
(Watts, 2003).
Widespread malnutrition together with a breakdown in
key sectors of North Korea’s public health infrastructure
establish volatile conditions that could promote epidemics.
Polio still occurs in North Korea despite otherwise successful
global eradication efforts (www.who.int/repo/eha/ftp/
16973.html), and malaria has reemerged in the southern
provinces (Ree, 2000; Owen-Davies, 2001). With immunization
rates of measles dropping in North Korea from greater
than 90 percent to less than 40 percent (www.who.int.repo/
eha/ftp.17527.html), partly because of a lack of fuel to
transport the vaccine, it is anticipated that measles will
return. Measles remains the world’s single leading killer of
children under the age of 5. Children with underlying
malnutrition such as the type described in North Korea are
particularly vulnerable. Tuberculosis is also on the rise.
With the collapse of control programs and the absence of
appropriate antibiotics, the WHO estimates that mortality
among tuberculosis cases in North Korea could reach as
high as 50 percent among the possible 30,000-40,000 new
cases annually (www.who.int/archives/inf-pr-1997/en/
pr97-71/html). Also adding to this humanitarian tragedy
are high rates of infections with intestinal parasites such as
the Ascaris roundworm and the Oriental liver fluke (Hotez
et al, 1997). The IMR in North Korea is currently estimated
at 48 deaths per 1,000, which is now one of the highest in
Asia and several times that of the Republic of Korea to the
South (www.who.int/vaccines). Together, IMR and under
childhood 5 death rates are considered particularly good
measure of national instability (CIA, 2000; Hotez, 2001b).
The WHO reports that famine, floods, and disease have
pushed North Korea’s death rate up by 40 percent in the
past seven years (Lamar, 2001), but surveys of North
Korean immigrants passing through the border into
China, suggest that the crude death rate has possibly
doubled between 1995 and 1997 (Robinson et al, 1999).
New opportunities for vaccine diplomacy
Is there a rationale for the current Bush Administration to
incorporate multilateral cooperation in the areas of vaccine
biotechnology and clinical investigation in order to
achieve its diplomatic goals? There exist some similarities
between today’s DPRK and the Soviet Union during the
1950s when it first began to cooperate with American
virologists on joint-vaccine development initiatives.
Would there be a benefit to embarking on similar scientific
collaborations with the North Koreans, and could this
become an effective tool of American foreign policy?
Vaccine diplomacy has been largely ignored as a
component of U.S. foreign policy for the last 30 years.
However, it could be resurrected in a number of interesting
ways that are analogous to what occurred during the Cold
War era (Hotez, 2002). Most of these efforts would center
on cooperative efforts between North Korean scientists
and scientists of the nations of the United States, China,
Japan, and Russia, which comprise the multilateral
diplomatic efforts now being proposed for the DPRK.
These collaborations could build on existing scientific
programs currently underway between the United States
and Asia, including the Tropical Medicine Research Center
(TMRC) in Shanghai established in 1996, by the U.S.
National Institutes of Health (Hotez et al, 1997), as well as
the newly established Center for International Programs in
AIDS (CIRPA) in Beijing established in 2002. The U.S.Japan program for scientific exchange has been existence
since the 1960s. Extending these opportunities to scientists
of the DPRK would allow for unprecedented dialogue
with their scientists, provide for capacity building in order
to help the DPRK combat its emerging infections, and
reduce the spread of infection in the region.
As an example, a multilateral initiative could implement
a disease surveillance network for tracking infectious
diseases and for identifying potential targets for vaccination.
Surveillance will also help to determine the impact of the
famine and human migrations on the emergence of highly
lethal pathogens such as Hantaan virus (named after a
river on the border between North and South Korea), the
cause of Korean hemorrhagic fever (Nathanson and
Nichol, 1998), or even the SARS coronavirus. These efforts
should be done in concert with stabilizing the healthcare
infrastructure. Many hospitals are in desperate need of
drugs, anesthetics and equipment. At one time, there were
13 tuberculosis institutes and 60 sanatoria in North Korea
(Owen-Davies, 2001), but it is unclear whether these are
17
VOLUME 3, NUMBER 4
PERSPECTIVES
Creation of an allied vaccine institute
for the study of infectious and
parasitic diseases in North Korea
would provide a mechanism
to initiate joint projects with the
South, as well as with other nations.
still operational.
As part of a long-term strategy that targets health and
security issues, a sister institution to South Korea’s International Vaccine Institute (IVI) could be established in the
DPRK for the purpose of vaccine research and development,
vaccine manufacture and vaccine distribution. The IVI is
an international organization established by the United
Nations Development Program and located on the campus
of the Seoul National University (www.ivi.org). South
Korea serves both as the host country and also as a major
donor, providing an operating budget and a planned
research building. The IVI functions as a world-class center
of R&D, training and technical assistance for vaccines in
developing countries, and is governed by an independent
board of trustees. The Institute collaborates closely with
the WHO and the Global Alliance for Vaccines and
Immunization (GAVI). Creation of an allied vaccine
institute for the study of infectious and parasitic diseases
in North Korea would provide a mechanism to initiate
joint projects with the South, as well as with other Asian
and western nations. As an added benefit, such an Institute
might also help to redirect possible North Korean scientific
efforts directed at bioweapons (BW) production (www.fas.
org/nuke/guide/dprk/bw/index.html). The National
Research Council and other agencies promote similar
efforts among BW scientists in the former Soviet Union.
The lessons learned from our experiences in vaccine
development with the Soviets during the 1950s and 60s,
the ability of vaccine programs to effect ceasefires among
combatants in civil conflicts in Africa and Central Asia
during the 1990s, and new analyses on the impact of infectious
diseases on global security over the last decade, could have
relevance to future diplomatic missions in North Korea. Medical
research and biotechnology may have enormous potential
for conflict resolution efforts in this part of Asia.
Recommended Readings
Benison, Saul (1982), “International Medical Cooperation: Dr.
Albert Sabin, Live Polio Virus Vaccine and the Soviets,”
Bulletin of Historical Medicine, 56:460-8.
DeYoung, Karen (2003), “U.S., North Korea to Begin Talks,”
Washington Post, April 16, p. A01.
Hotez, Peter J. (2001a), “Vaccine Diplomacy,” Foreign Policy, May-
June, pp. 68-9.
Hotez, Peter J. (2001b), “Vaccines as Instruments of Foreign
Policy,” EMBO Reports, 2:862-8.
Hotez, Peter J. (2002), “Appeasing Wilson’s Ghost: The Expanded
Role of the New Vaccines in International Diplomacy,” CBACI
Health and Security Series, Occasional Paper 3, The Chemical and
Biological Arms Control Institute, pp 1-16.
Hotez, Peter J., Feng, Zheng, Xu, Long-qi, Chen, Ming-gang, Xiao,
Shu-hua, Liu, Shu-xian, Blair, David, McManus, Donald P.,
Davis, George P. (1997), “Emerging and Reemerging
Helminthiases and the Public Health of China. Emerging
Infectious Diseases, 3:303-10.
ICG Report (2001), HIV/AIDS as a Security Issue, June 19,
Washington/Brussells, www.crisisweb.org.
Katona-Apte, Judith, Mokdad, Ali (1998), “Malnutrition of
Children in the Democratic People’s Republic of North
Korea,” Journal of Nutrition, 128: 1315-9.
Kelly, James A. (2003), “Regional Implications of the Changing
Nuclear Equation on the Korean Peninsula,” Testimony before
the Senate Foreign Relations Committee, Washington, DC,
March 12, 2003.
Lamar, Joe (2001), “Mortality in North Korea Rises by 40% in
Seven Years,” BMJ, 323:1272.
MMWR (1997), “Status of public health—Democratic People’s
Republic of Korea,” April, 46 (24):561-5.
Moodie, Michael, Taylor, William J. (2000), “Contagion and
Conflict, Health as a Global Security Challenge,” a report of
the Chemical and Biological Arms Control Institute and the
CSIS International Security Program, January 2000.
Mufson, Steven (2001), “U.S. Will Resume Talks with North
Korea,” Washington Post, June 7.
Nathanson, N., Nichol, S., “Korean Hemorrhagic Fever and
Hantavirus Pulmonary Syndrome: Two Examples of
Emerging Hantaviral Diseases (Chapter 12),” Emerging
Infections (ed. R. M. Krause), Academic Press, 1998.
National Intelligence Council, Central Intelligence Agency (2000),
The Global Infectious Disease Threat and its Implications for the
United States, NIE 99-17D, www.cia.gov/cia/publications/nie/
report/nie99-17d.html.
Oberdorfer, Donald, The Two Koreas: A Contemporary History. Basic
Books, 1997, p. 394.
Owen-Davies, John (2001), “North Korea’s Public Health
Tragedy,” Lancet, 357: 628-30.
Ree, Han-II. (2000), “Unstable Vivax Malaria in Korea,” Korean
Journal of Parasitology, 38: 119-38.
Robinson, W. Courtland, Lee, Myung Ken, Hill, Kenneth,
Burnham, Gilbert M. (1999), “Mortality in North Korean
Migrant Households: A Retrospective Study,” Lancet, 354: 291-95.
Watts, Jonathan (2003), “North Korea’s Stance Unravels Years of
Work by Relief Agencies,” Lancet, 361: 760-1.
Peter Hotez, M.D., Ph.D., is professor and chair of the Department of
Microbiology & Tropical Medicine at The George Washington
University, and senior fellow of the Sabin Vaccine Institute in
Washington, DC. Dr. Hotez obtained his M.D. from Cornell
University (1987) and his Ph.D. in biochemical parasitology from
The Rockefeller University (1986). He was a pediatric resident at The
Massachusetts General Hospital, before moving to Yale for his postdoctoral fellowship. He taught at Yale University School of
Medicine for 12 years where he rose to the rank of
associate professor of epidemiology and public health
and pediatric infectious diseases. He assumed his
current position in August 2000. His entire scientific
career has been devoted to the pathogenesis and
vaccinology of hookworm infection.
18
VOLUME 3, NUMBER 4
TKS EVENTS IN REVIEW
CONTEMPORARY ISSUES
Standoff on the Korean Peninsula: Defusing North Korea’s Nuclear Ambitions
January 23 • New York, NY
Former U.S. Secretary of Defense William J.
Perry spoke on managing the diplomatic and
security challenges posed by North Korea in
an evening forum program copresented with
the Japan Society and the National Committee
on United States-China Relations. He was
joined by Xiaobo Lu and Samuel S. Kim,
director and senior research scholar of
Columbia University’s Weatherhead East
Asian Institute, respectively, and Tsuyoshi
Sunohara, chief correspondent of the Nihon
Keizai Shimbun’s Washington Bureau. John L.
Holden, president of The National
Committee on United States-China Relations,
moderated the session.
Perry introduced himself as “a child of
the cold war” who, as secretary of defense
from 1994 to 1997, had dealt extensively with
proliferation issues, employing cooperative
and, at times, coercive measures to prevent
nuclear arms from falling into the hands of
“failed states and terrorists.”
Perry compared today’s standoff with
North Korea to the June 1994 crisis (in which
he was personally involved) when North
Korea was poised to start reprocessing
nuclear fuel at the Yongbyon facility in order
to create nuclear weapons and threatened to
turn Seoul into a “sea of flames” if sanctions
were imposed. That crisis was defused by the
Agreed Framework, under which the United
States, Japan and South Korea were to provide
North Korea with interim fuel oil and nonnuclear generating facilities in exchange for
dismantling its nuclear reactors. Although the
compromise drew criticism, it averted direct
military confrontation and further development
of North Korea’s nuclear capabilities.
A second crisis arose in 1998, when North
Korea test-fired a missile over Japan. The U.S.,
Japan and South Korea adopted a coordinated
communications offensive designed to persuade
the North Koreans that they did not need
weapons for security, and to institutionalize a
dialogue. According to Perry, the strategy
yielded tangible results over the next two
years. However, much of that progress was
reversed when President George W. Bush did
not reaffirm the tripartite engagement program
and shortly thereafter named North Korea a
part of an “axis of evil” in his State of the
Union address. The president’s current position
is not to re-engage North Korea in dialogue
until all nuclear weapons activity stops.
Expressing disagreement with this
approach, Perry said: “I believe we should
not have cut off the engagement with
North Korea two years ago. That probably
contributed to the present problem with
l-r: William J. Perry, Samuel S. Kim, Xiaobo Lu and
Tsuyoshi Sunohara
North Korea; in any event, it has made it
more difficult to deal with this problem. I
believe that we should state immediately that
the reprocessing of plutonium at Yongbyon
would be a ‘red line,’ thus defining our
diplomacy as coercive diplomacy. I believe
that China, Russia, South Korea and Japan
all have an important role to play in the
ongoing discussions with North Korea... But
resolution of the crisis is too important to
American security to turn the diplomatic
treatment of it over to those nations–the U.S.
should be engaged directly and aggressively....
I believe that this is a serious crisis. But I also
believe that it can be managed... [with] the
credibility of our determination to remove the
nuclear threat even if it risks war, and the
courage and confidence to pursue creative
diplomatic alternatives to war.”
According to Tsuyoshi Sunohara, who
spoke as a journalist and citizen who has
frequent talks with Japanese lawmakers,
Japan welcomes direct talks between
Washington and Pyongyang to strengthen
their fragile ties. Contrary to some current
beliefs, Japan will not be a source of economic
assistance to North Korea without progress
towards the ultimate resolution of the nuclear
problem, he said. Sunohara also emphasized
the impossibility of Japan’s seeking a nuclear
weapons capability, for political, social and
global reasons.
Xiaobo Lu emphasized that China
recognizes the danger of triggering a nuclear
arms race in Asia (Taiwan being of particular
concern) and that allowing North Korea to
continue with its nuclear activities is therefore not in China’s interest. President Jiang is
reported to have expressed uncertainty as to
whether Kim Jong Il is a “rational person,”
and there is frustration within the government
and academia over the ambiguity of the North
Korean leadership’s intentions. According to
Lu, China is positioning itself as an informal
facilitator of talks between North Korea, the
U.S., Japan and South Korea, thus complementing
the role of Russia as an informal moderator.
Samuel Kim concurred about the seriousness of the crisis and criticized President
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VOLUME 3, NUMBER 4
Bush’s strategy as “a self-fulfilling prophecy
from Day One.” Making an analogy to North
Korea, he quoted dean of Harvard’s Kennedy
School Joseph Nye’s famous line: “If you treat
China as an enemy, that is exactly what China
will become.” Kim noted how President Bush,
by referring to North Korea as a “rogue state”
and an “evil state,” was seemingly trying to
undo everything that President Clinton had put
into effect. These affronts can only intensify
the compensatory elements of North Korea’s
military responses. Kim also said that George
Bush is almost universally disliked by South
Korean citizens. “My real concern is what the
current strategy has done for the U.S. It appeals
to the fundamentalist right wing craving
designed to mobilize domestic support but it
has limited America’s strategic flexibility.”
The above summary is excerpted from a Japan
Society Corporate Note by Ann Rutledge.
A Friendship Tried with Distress:
North Korea Policy and the Future of
the U.S.-Korea Relationship
in a Transitional Period
ROK National Assemblyman Hahn Hwa-Kap,
the president of the MiIlennium Democratic
Party, spoke in a breakfast forum program
about the Bush administration’s North Korea
policy and its implications for U.S.-Korea
relations on the eve of the inauguration of a
new administration in South Korea. Citing
the impending visit by a special envoy of
President-elect Roh Moo-hyun, and the
anticipated post-inauguration visit by the new
president himself for his first summit meeting
with President Bush, Hahn stressed that he
was speaking only in “a personal capacity” to
provide an update on several of the most
important issues in U.S.-Korea relations.
Hahn began his presentation by suggesting
that changes in national leadership may seem
to be confusing and disconcerting at first but
really are opportunities to build on the
successes of the previous administration.
Acknowledging that the reports about rising
anti-American sentiment and its apparent
impact on the outcome of the recent presidential
election have left many Americans wondering
what is going on in South Korea, Hahn pointed
out that Koreans also were puzzled by the
changes brought about with the inauguration
of the Bush administration. Specifically, he
pointed to the perceived inconsistency
between the hardline on North Korea adopted
by the Bush administration and the routine
criticism of the previous administration’s
foreign policy as “excessively interventionist”
by then-candidate Bush during the 2000
presidential election campaign. Stressing
how difficult it has been for Koreans to
understand this policy shift, he said: “The
biggest apprehension of large numbers of
Koreans is that all of the U.S. policies on
North Korea might be determined without
due regard for the interests of South Koreans,
even though it is South Koreans who are most
directly affected by the threats posed by our
North Korean neighbors.”
On the other hand, Hahn recognized that
the U.S. has its own rationales for such a
policy shift, most notably the changed
circumstances in the aftermath of the 9/11
terrorist attacks on America herself. He also
affirmed his conviction that “by engaging in
listening as well as talking, both nations will
find much common ground, closing the gap
that some perceive between our positions.”
Hahn then turned his attention to several
issues that he believes are major sources of
the “distress” currently affecting U.S.-Korea
relations. First and foremost, he said, is the
perception that the large-scale demonstrations
staged in front of the U.S. Embassy in Seoul,
beginning in June of last year, signify an
unprecedented rise in anti-American sentiment
as is alleged in some U.S. media reports.
Rejecting this interpretation, Hahn asserted
that these demonstrations were only peaceful
candlelight vigils commemorating the deaths
of two Korean girls who tragically lost their
lives in an accident involving a U.S. military
vehicle. “If you watch films of these protesters,”
he said, “you will see that no one is chanting
‘Yankee Go Home,’ a slogan heard frequently
in anti-American demonstrations in many
other parts of the world everyday.” Further, he
asserted that the leaders of the demonstrations
“strictly banned the protesters from calling
for the withdrawal of the U.S. forces from
Korea.” He also reminded his audience that
President-elect Roh personally appealed to
the protesters to show self-restraint “even
during the height of the presidential campaign,
when some would argue that being willing to
challenge the U.S. on certain issues would
have been good politics.”
Rather than signifying a rise in antiAmerican sentiment, Hahn suggested that the
demonstrations are rooted in the “heightened
national pride” of the younger generation in
Korea today. After such unprecedented
achievements as the rapid recovery from the
1997 Asian economic crisis and the successful
hosting of the 2002 Korea-Japan World Cup,
he argued, many Koreans (the younger
generation, in particular) believe that “South
Korea is ready for a prominent role in world
affairs.” Unfortunately, he noted, the accident
involving the two Korean girls occurred just
at this moment of heightened public sentiment,
and the failure of the U.S. armed forces and
the U.S. government to respond quickly and
effectively contributed toward an escalation
of the tension. Motivated by a sense that the
U.S. government was taking an aloof attitude,
the younger generation of Koreans began to
Hahn Hwa-Kap
view the incident as an expression of the
inequality of the relationship between Korea
and the U.S. Thus, not long after the acquittal
of the American soldiers who were involved
in the accident, public opinion was deflected
to the issue of the perceived unfairness of the
SOFA (Status of Forces Agreement), which
governs the legal status of the U.S. military
forces in South Korea. Further, a widely-held
perception in Korea that the terms of the
SOFA between the U.S. and Korea are less
favorable to Korea than the comparable
agreements with Japan and Germany fueled
the sense of inequality. The public’s indignation
fed off of the apparent contradiction that
South Korea, which has always been a U.S.
ally, is treated worse than Germany and Japan,
who had been the enemies of the U.S. during
World War II. Therefore, Hahn concluded:
“Recent candlelight rallies at the front gate of
the U.S. Embassy in Korea must be viewed in
the context of the Korean attempts to amend
the SOFA, to ensure that Korea is treated at
least as fairly as Japan and Germany.”
Turning to the issue of what he characterized
as “a false image of the president-elect as an
anti-American politician,” Hahn attributed this
perception to distortions perpetrated during
the election campaign by some conservative
groups as well as by some in the press. He
argued that the prevalence of these distortions
reflects the fact that Korea continues to live
with the political legacy of the cold war.
Rejecting the validity of such charges, Hahn
said: “I assure you that he [President-elect
Roh] is a believer in free democracy and the
market economy... [and] insists that what is
needed for free democracy and the market
economy to take firm root in Korea is to
denounce the opacity and unfairness of crony
capitalism, which have long plagued the
Asian economy.” He also stressed Presidentelect Roh’s opposition to the withdrawal of
the U.S. forces from Korea, his appreciation
of the importance of the U.S.-Korea alliance
and, indeed, his determination to see it
strengthened rather than weakened.
Hahn turned next to a discussion of the
motivations behind North Korea’s recent
provocative moves. He marveled at how
20
VOLUME 3, NUMBER 4
seemingly inopportune it is for North Korea
to abruptly take a series of steps such as the
reactivation of its nuclear facilities and the
withdrawal from the nuclear nonproliferation
treaty (NPT), while the U.S. has been taking a
tougher international stance since the 9/11
terrorist attack. He asked rhetorically: “Do
you really think that North Korea wants a
direct military engagement with the U.S.?” To
answer this question, he said, you need to
understand the recent moves of North Korea
against the backdrop of the first nuclear crisis
precipitated by North Korea. At that time, in
1994, North Korea was successful in obtaining
economic support by leveraging its nuclear
weapons. “Now, they are repeating the same
tactics,” he argues, “simply because they do
not have any other alternatives for survival.”
Hahn also suggested that the rather sudden
change in the behavior of North Korea
coincides with, and is partly attributable to, a
growing mistrust of the intentions of the Bush
administration. Upon its inauguration, after
completing its initial policy review, the Bush
administration announced its willingness to
enter into dialogue with North Korea. It was
around this time that North Korea began to
take some tentative steps toward a more open
policy. After the 9/11 tragedy in 2001 and
President Bush’s State of the Union address
early in 2002, however, North Korea appears
to have concluded that U.S. foreign policy
was about to change swiftly and for the worst.
After being labeled a member of an “axis of evil”
and punished by the cut off of oil supplies, North
Korea might well have become convinced
that the Bush administration was seeking the
collapse or at least supports the demise of its
regime. “In my view,” Hahn said, “the North
Korea situation boils down to one thing:
Unless the U.S. wants another war after Iraq,
the U.S. should persuade North Korea that it
does not want the current system of the North
Korean government to collapse.”
Hahn also offered his views on the
differences between North Korea and Iraq.
First, he noted, North Korea has practically
abandoned terrorist acts or any support to
such terrorist acts since the late 1980s. Amid
growing anti-terrorism around the world, he
said, it is significant that North Korea has not
only renounced terrorism but even has admitted
to past terrorist acts by acknowledging, for
example, its past abductions of Japanese
nationals. Second, North Korea is differentiated
from Iraq in geopolitical terms. Namely,
North Korea is situated in the geographic and
economic center of Northeast Asia. If anything
went wrong in this area, it would lead to the
loss of an entire wing of the world economy,
which makes a “preemptive strike” not
acceptable as a viable strategy. Third, unlike
Saddam Hussein who is trying to get sympathy
and support from the Islamic world by
claiming to be a martyr, Kim Jong Il is not
backed by any allies and is only struggling
to survive.
For his final issue, Hahn turned to the topic
of policy coordination between the U.S. and
South Korea in dealing with North Korea. He
acknowledged a potential conflict of interest.
On the one hand, the primary goal of the U.S.
is to eliminate any threats to world peace by
destroying weapons of mass destruction. For its
part, however, the South Korean government has
as its vital national agenda both the elimination
of the threats from all of the weaponry of
North Korea and the reduction of the risks
to be incurred from a war and the collapse
of North Korea. The need to balance these
dual concerns explains why South Korea has
consistently sought dialogue and cooperation
with North Korea, while simultaneously
seeking to persuade the U.S. of the value of its
own dialogue with North Korea.
In fact, Hahn argued, the negotiations
with North Korea on nuclear issues have
highlighted clear objectives for both sides.
“We know that the North wants its system to
be protected,” he said, “and it longs for aid
from the world community.” South Korea has
made it clear that it is prepared to help North
Korea achieve its targets, he said, and now is the
time for the U.S. to make its position clear. The
top priority is to begin dialogue, whether in
the form of negotiations or not, is a secondary
issue. Through conversation, mutual trust
will grow, and there will be smaller and
smaller space for misunderstanding. In this
connection, Hahn reminded his audience of a
suggestion he had offered during a previous
visit to the U.S.: “Taking the special features of
the North Korean regime into consideration, I
still believe in the efficacy of a plan for the
U.S. administration to dispatch an influential
figure, someone who is not part of the current
administration, as a special envoy.”
Concluding his presentation, Hahn noted
that there are many practical improvements
needed in the U.S.-Korea alliance beyond
North Korea policy. He asked that Americans
not look at the U.S.-Korea alliance only
from the perspective of the relations between
traditional allies. South Korea has grown
from the ashes of war 50 years ago, he noted,
and she is ready to take her place on the
world stage as a partner capable of doing her
fair share of work toward the promotion of
peace and prosperity. Citing a Korean
proverb that says, “A storm will clear the air,”
Hahn suggested that true friendship needs to
be tested and proven through overcoming
difficulties. “I truly hope that the visits to
be made to the United States by the special
envoy and the president-elect in the
future, following my visit today, can make
a contribution to the betterment of the
relationship between our two countries.”
Korean Attitudes Toward
the United States: The Enduring
and Endured Relationship
January 30–February 1 • Washington, DC
This is a brief overview of a two-day conference
presented by the Asian Studies Program of
Georgetown University in cooperation with the
Pacific Century Institute and The Korea Society. It
is excerpted from a summary report drafted by
Prof. David I. Steinberg. A more detailed report is
available in the F.Y.I. section of The Korea Society’s
Website. Conference papers are being collected for a
volume to be published later in 2003.
The importance of Korea to the stability of
Northeast Asia and the American forward
presence in that region, together with the
security alliance between the Republic of
Korea and the United States, underscores the
need to understand the apparent growth of
anti-Americanism in Korea.
The conference was prompted by several
issues. First, the U.S.-Korea relationship is
important to further the national interests of
the ROK and the U.S. even though these overlapping interests are not equivalent. Next,
thoughtful analysis of the issues will help all
parties better cope with the problem. Finally,
anti-American sentiment—however defined–
fluctuates over time, but all recent opinion
polls show that the level of intensity has risen
tangibly in recent years. Discussions were
focused on understanding the changing
situation and were intended to help focus
attention on potential future dangers and
mitigate their growth.
The strategic association between the ROK
and the United States has been perceived as
strong. Although there is no evidence of an
immediate change in official attitudes this
apparent strength masks fissures that need to
be resolved if the alliance is to thrive. The
strategic alliance is the most obvious of an
increasingly complex web of associations
between the ROK and the U.S., and it is both a
pillar and a facade. Official U.S. and Korean
statements characterize it as a pillar of the bilateral connection while others consider it a facade,
hiding emotions both positive and negative.
National security priorities between the
U.S. and Korea coincide in part, and attitudes
toward the U.S. vary by age, experience, class,
education, region, gender, proximity, political
affiliation and experience. Moreover, disparities
in national strategic and economic strength
create tensions. Korean anti-American
sentiment is real, intense and contrary to the
national interests of both countries. The
causes of such sentiments may be divided
into structural factors related to U.S. power,
historical issues and procedural problems
concerning alliance maintenance.
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Over the course of the conference several
themes emerged. Anti-American sentiments
do not fit in one mold and a distinction
should be made among anti-Americanism as
ideology or anti-Americanism related to policy
disagreements versus reactions to specific
incidents or bad feelings toward individual
Americans. Anti-Americanism, which several
decades ago had been confined to a fringe
element of the younger generation of
Koreans, is now far more widespread.
The alliance should not be equated
simplistically with the presence of U.S. forces
on Korean soil and its subsequent issues. In
this regard the dissatisfaction expressed within prominent conservative quarters in the
United States and their call for the early, unilateral withdrawal of U.S. forces from Korea
because of this rising anti-American sentiment
mistakes the nature of the problem.
Some prominent Americans and Koreans
believe that since the anti-American sentiments
in Korea are nowhere near as virulent as in
some other parts of the world, this issue need
not be addressed within the context of the U.S.Korea relationship. This is a mistake because
of the close association between the two
governments and because anti-Americanism
is a departure from the high respect that most
Koreans previously displayed towards the
U.S. This change also should cause distress to
Korean Americans, Korean visitors to the U.S.
and those concerned with its deleterious
effects on U.S.-Korea trade.
The role of the U.S. and its citizens in
Korea has always generated concern among
knowledgeable Koreans. However, these
expressions have become far more public
following the political liberalization of Korea
in 1987, the end of the Cold War and the rise
of the U.S. as the lone superpower. The
context of U.S. world hegemony is especially
important in Northeast Asian relations where
historical antagonisms have been acute and
where regional groupings that might provide
ameliorating influences are lacking.
Although the Cold War has ended elsewhere in the world it continues on the Korean
Peninsula. The defense treaty between the
ROK and the U.S. dates from 1954 and reflects
concerns in Northeast Asia that transcend the
likelihood of an overt strike by the North
against the South. The forward positioning of
U.S. forces in Japan and Korea supports
caution in the region, and has likely been the
critical element in preventing an arms race.
The rise of Korean nationalism and pride
has been a natural, even necessary, correlation
with the increased status and prestige of the
ROK on the world scene. Although this
increased nationalism and pride is not so
evident in Korean government circles, the rise
of civil society has allowed individuals and
groups to express their opinions more freely.
These are concerns that the ROK government
must heed regardless of its political affiliation.
The role of the Korean media has been
important in furthering anti-American
sentiment. The development of a freer press
has meant the ability to criticize the U.S., and
sometimes U.S. positions have not been
accurately reported. If the problem of the
Korean media has been bias in these contexts,
then the problem with the American media
has been ignorance of Korea and at times
unsophisticated coverage of sensitive issues.
And aside from this contextual issue there has
been a significant deterioration in U.S.-Korea
relations during the Bush presidency, much of
which might have been avoided with deft
handling in spite of North Korean provocations.
Out of these analyses emerged several
recommendations for action and consideration.
First, Americans should listen more closely to
Koreans, particularly young Koreans, and
seek to diversify their contacts with all sectors
of Korean society. The U.S. must avoid being
unilateral, and there must be candid discussions
when opinions of national policy diverge. The
U.S. should listen to its allies, study the past
to avoid future policy errors and educate its
officials on how to negotiate with Koreans.
Furthermore, the U.S. should draw lessons
from successful American organizations that
have exhibited a commitment to Korea, rather
than take the relationship for granted. Practical
measures to accomplish these aims include a
decision by the U.S. to pursue a policy of
engagement with North Korea or the inclusion
of South Korea in the visa waiver program.
In terms of the goals for the ROK, some
participants suggested that Koreans should
consider whether the Sunshine Policy is
based on an overly romantic view of reality.
Also, centers of American studies should be
established in Korea to increase understanding
of the U.S. In addition, the Korean media
should set up self-monitoring mechanisms to
ensure professional standards in reporting
while avoiding interference with freedom of
the press.
Finally, the U.S. and the ROK should jointly
pursue a reconsideration of issues connected
with Korean sovereignty such as the Combined
Forces Command and the Status of Forces
Agreement and consider relocating military
bases in consultation with local governments.
There also is a role for the broader NGO
community to encourage Track II diplomacy
and enhance cooperation among civil societies.
history and director of the Center for Korean
Research at Columbia University, served as
moderator. The three panelists were: Leon V.
Sigal, director of the Northeast Asia
Cooperative Security Project at the Social Science
Research Council in New York; Peter Hayes,
executive director of the Nautilus Institute for
Security and Sustainable Development; and
Kenzo Oshima, under-secretary-general for
humanitarian affairs and emergency relief
coordinator at the United Nations.
Sigal asserted that it is not too late to prevent
the current nuclear crisis from developing into
a nuclear disaster. He argued that assurances
from the United States that it would not attack
North Korea, impede its economic development
or seek to overthrow its government would
be sufficient to convince North Korea to halt
its programs. However, if these assurances are
not forthcoming and motivated by a sincere
desire to improve relations, North Korea will
retain its nuclear option as a bargaining chip.
Reinforcing this perspective, Sigal pointed out
that the current picture resembles the situation
in 1994, which was resolved peacefully but
subsequently mired by both the U.S. and
North Korea failing to keep their end of the
bargain. As in 1994, there are currently four
options: (1) compel North Korea’s collapse; (2)
impose additional sanctions; (3) attack North
Korea’s nuclear facilities; or, (4) negotiate. In
Sigal’s view, unless the U.S. displays a
willingness to adopt the fourth option, it may
have to learn to live with a nuclear North Korea.
Participating by videoconference, Peter
Hayes highlighted the renewable energy work
of the Nautilus group with Unhari, a village
on the West Coast of North Korea. When his
team built North Korea’s first water-lifting
windmill in an attempt to provide emergency
water supplies during the winter, they discovered that simply providing access to
water was only part of the problem. Because
human waste is used as fertilizer and seeps
into the water supply, drinking water at
Unhari is contaminated, resulting in outbreaks of dysentery—particularly among the
malnourished, infirm, very young and elderly.
Hayes asserted that the dysentery caused a
significant loss in calories and that preventing
dysentery, by such measures as providing
The North Korean Crisis:
A Humanitarian Perspective
February 12 • New York, NY
A distinguished panel of experts met to discuss
the North Korean humanitarian situation in
an event copresented with the Asia Society.
Charles K. Armstrong, associate professor of
Kenzo Oshima, Charles K. Armstrong and Leon V. Sigal
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chlorine for water purification and electricity
to power waste treatment plants, was as
important as providing food aid in preventing
deaths from disease and malnutrition.
Oshima began his presentation by
commenting that political issues surrounding
North Korea and Iraq were receiving a great
deal of attention, while little was being made of
humanitarian issues. Although Iraq and North
Korea have populations of about the same size
and have been receiving UN assistance for
about the same length of time, and although
Iraq was under UN sanctions while North
Korea was not, there was a much larger and
stronger humanitarian presence in oil-rich
Iraq than in poorer North Korea. Over the
past seven years approximately $40 billion
U.S. dollars have been spent in Iraq, while the
UN has spent only $1 billion over the same
period in North Korea. Similarly, 1,000 international staff and 3,500 national staff engage
in humanitarian issues in Iraq; while there are
less than 50 international staff and a handful
of nationals in North Korea. He concluded his
remarks by stressing his conviction that,
though humanitarian aid is no substitute for a
political solution, solving the humanitarian
crisis in North Korea would contribute
toward the development of a more conducive
environment for a peaceful resolution of the
current political crisis on the Korean peninsula.
The Game of their Lives:
A Documentary Film Screening
The Korea Society was one of many cosponsors of a screening of The Game of Their Lives,
a British documentary on the upset victory
by an underdog North Korean soccer team in
the 1966 World Cup. The screening was presented by Nodutdol for Korean Community
Development in conjunction with the
Asian/Pacific/American Studies Program &
Institute at New York University. Hailed by
the Asian Wall Street Journal as “The Greatest
Story Never Told,” the film tells “a tale that is
much more than a sports story—it is a rare
and very human look at the North Korean
nation and its people.”
Lonesome Journey:
The Korean American Century
March 4 • New York, NY
K.W. (Kyung Won) Lee, who is known as the
“dean of Asian American journalism” among
his peers, presented a characteristically spirited
discussion of his forthcoming book, Lonesome
Journey: the Korean American Century, for an
enthusiastic audience in a well-attended
VOICES program. He described his book as
“an oral history dedicated to filling that void
and capturing the voice of the first immigrants
and ‘picture brides’ who came to the U.S. for a
better life.” Explaining his reasons for writing
K.W. Lee
the book, Lee lamented that the Korean
immigrant story still remains to be told to the
outside world even though it is now a hundred
years old. He added: “While the past twentyfive years of the Korean immigrant experience
brims with illustrative tales of one of the fastest
growing ethnic groups in the United States, the
stories from the first seventy-five years of the
early Koreans’ solitary passage to America is
hardly told or known.” Lee expressed the
hope that his book will correct this imbalance.
The program included a screening of a
documentary film produced by the Centennial
Committee of Korean Immigration to the United
States in Hawaii titled Arirang: The Korean
American Journey. The program included a lively
Q&A session followed by an informal reception.
New Dimensions
for the U.S.-ROK Alliance
The inauguration of President Roh Moo-hyun
came at a time of heightened concern about
growing tensions in the U.S.-ROK alliance,
fueled by American perceptions of an
unprecedented rise in anti-Americanism in
Korea and a fundamental divergence between
the Roh and Bush administrations on several
major policy issues. These stresses and strains
were explored from the political, economic, legal
and cultural perspectives in a wide-ranging
panel discussion featuring presentations by:
Donald P. Gregg, president & chairman of The
Korea Society; Jeffrey R. Shafer, vice chairman
of Salomon Smith Barney International;
Jeong-Ho Roh, director of the Center for
Korean Legal Studies in Columbia
University’s School of Law; and David I.
Steinberg, distinguished professor and director
of the Asian Studies center in Georgetown
University’s School of Foreign Service. Carter
Booth, a former managing director at JP
Morgan Chase with extensive experience in the
Asia Pacific region, moderated the program.
Drawing on some of the impressions he
gleaned from two meetings with President
Roh Moo-hun during a visit to Seoul in late
February to attend his inauguration, Gregg
told the audience that he felt quite reassured
about the new president whom he characterized
as “very personable” and seemingly “comfortable in his own skin.” Referring to the concerns
some observers have expressed about the outcome of the election, Gregg commented that it
would be accurate to view it as a “pro-Korean”
rather than “anti-American” vote. He also noted
that President Roh seemed very determined
to continue the efforts of his predecessor to
build stronger relationships with all the other
countries in the region, Japan in particular,
and to maintain the basic posture of a policy
of engagement with North Korea.
In this connection, he noted, it was disappointing that Japan did not make a greater
effort to resolve its long-standing differences
with North Korea following the startling public
admission by Kim Jong Il of the kidnapping
incidents and apology for a malfeasance that
had occurred on his own father’s watch some
years ago. He described this failed effort as a
missed opportunity on Japan’s part that will
make President Roh’s job much more difficult.
The same could be said for the way the U.S. is
expressing its concerns in the region, he added.
On the other hand, he lauded the recent visit
to New York by a team of economic/financial
experts—who were dispatched by President
Roh to “take the pulse” of the ratings agencies
—as a promising sign. “This was done very
quickly… and very quietly,” he said, “which
reflects a pragmatic bent in the new
administration and signals its intention to
work cooperatively with the U.S. toward
resolving issues of mutual concern.”
In his presentation, Shafer discussed the
forces at work during the Kim Dae-jung
administration, stating that the economic
relationship between the U.S. and the ROK
became balanced during this time; and it
also matured.
On the subject of anti-Americanism,
Shafer noted that it’s always been a factor but
not a significant one in business relationships
in his view. He stated that the heightened
awareness of anti-Americanism in the ROK is
a signal of the need to look at the U.S.-Korea
relationship in all of its dimensions, i.e.,
political, security, business, etc. and to examine
how the relationship has evolved and continues
to evolve into a new maturity. Koreans are
aware of this change in the relationship;
Americans are not. In this regard, Shafer
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complimented President Roh’s awareness of the
importance of the relationship; in particular,
he complimented the new president for his
astuteness in making an address to the
members of the American Chamber of
Commerce (AMCHAM) right after his election.
Shafer stated that the most critical risk
factor at this juncture is the unresolved
nuclear issue with North Korea. Credit
spreads have widened by 100 basis points. On
the other hand, he said, 100 basis points is
almost nothing compared to what happened
in the winter of 1997. Dismissing any need for
exaggerated concern about this development,
he said: “Unless there is an explosion, this
risk factor will dissolve in time.” With regard
to the long-standing aspiration to transform
South Korea into the hub of Northeast Asia,
which was reiterated by President Roh in his
inaugural address, Shafer concurred that it is
a sensible goal. But to achieve this goal, he
said, South Korea needs to create a level
playing field for investors and it shouldn’t
limit its “regional hub” activity to the area
around Incheon airport.
Turning to the issue of the SK scandal,
Shafer noted that it reflects a merging of the
old and the new ways of doing business. He
was encouraged by the swift and strong
reaction from the authorities and from the
creditors. The institutional capacity to deal
with or to solve problems has changed, and
this capacity has grown tremendously over
the past five years. In response to a question
about the rumors of a second financial crisis
because of the recent scandals, Shafer stated
that he did not think it to be a likely outcome.
In his presentation, Roh focused on two
issues: (1) the legal foundations of North
Korea and South Korea; and (2) antiAmericanism as it relates to SOFA issues.
With regard to the legal foundations, the
uneasy peace between the two Koreas for the
last fifty years has been based on an armistice
agreement that by its nature is a “temporary”
arrangement. Moreover, theoretically, the
armistice agreement is not truly a legally
binding arrangement. This means that either
party can act without accountability. In short,
what is needed is a legally binding peace treaty.
With regard to SOFA, there is no such thing
as “absolute sovereignty.” The SOFA suggests
that Korea, as the host country, has agreed to
give up a certain amount of sovereignty in
exchange for security, i.e., American personnel
being in the country. The U.S. has SOFA
agreements with many other countries. All of
the agreements are different. One thing that
they have in common is that U.S. has the
primary right to exercise jurisdiction when a
soldier is performing official duties. Roh
stated that there is some inequality here. Prior
to formal conviction in a Korean court, the
U.S. retains custody of military personnel who
are accused of a crime in Korea. In Germany
and Japan, however, the U.S. retains custody
only until charges are brought against military
personnel. This is an inequality in the terms
of the SOFA agreement with Korea compared
with its agreements with Japan and Germany.
With respect to the death of the two girls,
generally when a traffic accident occurs in
Korea that results in death, the perpetrator is
arrested. So, the default rule in Korea—
although it is a matter of perception and not
actually the law—is that when someone dies
as a result of a traffic accident, then that person
is arrested. These two soldiers were not
arrested. They were not brought into a Korean
court. The U.S. was “right” legally. But no
representative of the U.S. showed any sign of
remorse, which is expected in these situations
in Korea. The result was a cultural clash
resulting from perceived inequality. Roh stated
that if a similar type of accident had occurred
in the U.S., as a lawyer, he would advise his
clients not to apologize since an apology is
perceived to be a virtual admission of guilt.
Whereas in a non-legal context, the words
“I’m sorry” can be interpreted to mean simply
“I’m sorry for what happened” and not “I’m
sorry for causing the accident.”
Steinberg spoke about the current crisis
between the U.S. and the ROK, which he
characterized as more profound than previous
crises. A close relationship with Korea is
important to the U.S. for the sake of its interest
in promoting stability in the Northeast Asian
region. One notable factor in the rise of
anti-Americanism in South Korea is the
generational shift, he said. He also discussed the
underlying policy differences between Korea
and U.S. as a major factor. From the U.S. point
of view, in setting policy directions, the global
situation is paramount, next comes the regional
considerations and finally the situation on the
Korean peninsula itself. Korea follows the
reverse of this process in making its foreign
policy decisions. That is, Korea looks at Korea
first, then the region and finally the global
situation. Vice President Cheney is scheduled
to visit Korea in April, and President Roh will
visit Washington in May. Cheney is believed to
hold the view that there needs to be a regime
change in North Korea. This view raises a
problem: How will President Roh deal with
such a fundamental difference over North
Korea policy? In this matter, Steinberg stated:
“If I were to offer any advice to South Korea,
it would be, develop a bipartisan policy
toward the U.S. as well as a bipartisan policy
on North Korea.” Quoting a participant in a
recent conference on the subject of antiAmericanism in Korea that he had organized
at Georgetown University, Steinberg said:
“For South Koreans, the American people are
friends; but the North Koreans are brothers.
The U.S. needs to remember that.”
l-r: David I. Steinberg, Jeong-Ho Roh, Jeffrey R. Shafer,
Donald P. Gregg and Carter Booth
In response to a question about the
characterization of the North Korean demand
for direct negotiations with the U.S. as “blackmail” (i.e., “we shouldn’t reward the North for
bad behavior”), Steinberg said: “Is it really
‘blackmail’ as the Bush administration calls
it? Well, what is the U.S. doing in Turkey?”
Arirang: The Korean American Journey:
A Documentary Film Screening
Arirang: The Korean American Journey, a
documentary film produced by the Centennial
Committee of Korean Immigration to the
United States in Hawaii, traces Korean
American history from its beginnings until
1960. The film combines rare footage and personal interviews to provide a concise overview of the early history of Korean Americans.
It covers the major stages in the formative
history of the Korean American community,
including the arrival of Korean laborers in
Hawaii in 1903, the formation of Korean communities in Hawaii and on the U.S. mainland,
the political activities of the Korean American
community for Korea’s independence and the
community’s participation in the building of a
new Korea in the post-WW II period.
Following the screening, Dr. Ilpyong J. Kim
offered his perspectives on the early history of
the Korean community in the U.S., focusing on
the politics of Korean groups and their leaders.
The program was cosponsored by The
National Association of Korean Americans
(NAKA). It included a Q&A session followed
by an informal reception.
Resolving the Korean Crisis:
Voices of the Region
April 10 • Cambridge, MA
The Korea Institute of Harvard University,
The Korea Society and the Harvard Project for
Asian and International Relations (HPAIR)
collaborated in presenting a conference
designed to explore regional perspectives on
possible approaches to the resolution of the
current nuclear crisis on the Korean Peninsula.
The conference theme seemed particularly
apropos as it was held fortuitously on the day
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after the fall of Baghdad, the day of North
Korea’s official withdrawal from the nuclear
nonproliferation treaty (NPT) and just a week
before the three-way talks in Beijing. The
format of the conference entailed a keynote
session followed by two panels of distinguished
Korea specialists and policy experts.
The keynote session was moderated by
Donald P. Gregg, a former U.S. ambassador to
South Korea who currently serves as president
and chairman of The Korea Society. In his
opening remarks, Gregg discussed the need
for a coherent U.S. policy on North Korea and
outlined his concern that the lack of a
commitment by the Bush administration to
enter into negotiations with the DPRK
increases the opportunity for conflict.
Don Oberdorfer, journalist-in-residence
and adjunct professor in international relations
at Johns Hopkins University, delivered the
keynote address. Oberdorfer presented a
historical analysis of events leading up to the
current crisis and explained why uncertainty
about the actions of the DPRK, the ROK and
the U.S. make today’s situation on the Korean
peninsula the most dangerous since 1953. He
suggested that divergent security interests
among these three parties poses a significant
risk of military action, unless some means can
be devised to step back from the brink within
a very short period of time.
The keynote session also included an
address by Song Ryol Han, deputy permanent
representative of the DPRK Mission to the
United Nations. In his presentation, Han
suggested that the DPRK’s nuclear activities
are the result of “a failure to address the serious
energy shortage in the DPRK, as required
under the terms of the Agreed Framework.”
He also outlined other ways in which the U.S.
failed to live up to the commitments it undertook in the Agreed Framework, as viewed
from the DPRK’s perspective. Despite their
disagreements, however, Han acknowledged
that Pyongyang and Washington need to
meet each other halfway to resolve the current
crisis and characterized such mutual resolve
as “a precondition for a meaningful dialogue.”
Some of the conference participants interpreted
this statement as an indication that the DPRK
might accept a multilateral framework for
resolving the nuclear crisis if the U.S. indicated
a sincere intention to enter into a dialogue
with the DPRK. In fact, soon thereafter, talks
were held in Beijing among the DPRK, the
U.S. and China, with the prospect of enlarging
the table later. Han concluded his remarks by
stressing that the resolution of the current
crisis would require an end to the “American
nuclear threat to the DPRK,” the initiation of
negotiations and a recognition of the DPRK’s
right to promote economic ties with neighboring
countries. Lastly, in the course of his remarks,
Han also offered the DPRK’s first public reaction
to the fall of Baghdad: “The result of the Iraq
war gives the DPRK a kind of determination
and the will to take assured measures to defend
its territory against possible U.S. attacks.”
The first panel was moderated by Charles
K. Armstrong, associate professor of history
and director of the Center for Korean Research
at Columbia University. He was joined by:
Ilpyong Kim, professor of political science
(emeritus) at the University of Connecticut;
Han S. Park, professor of political science and
director of the Center for the Study of Global
Issues at the University of Georgia; and Dae
Sook Suh, former director of the Center for
Korean Studies at the University of Hawaii. It
focused on the North Korean and the South
Korean perspectives on the current crisis as
well as the prospects for inter-Korean relations.
Analysis of the North Korean position, it was
suggested, supports the view that the regime
is “over-deterred” but does not appear to be
in any danger of imminent collapse. Park
expressed strong disagreement with the
current policies of the Bush administration and
provided a cogent explanation of the North
Korean perspective on the origins and potential
solution of the current crisis. Rather than
exhibiting irrational behavior, he argued,
North Korean policy is becoming less ideological and more pragmatic, despite the
occasional bellicose diplomatic statement.
Suh also distanced himself from the Bush
administration’s policy and offered the
provocative suggestion that the DPRK should
be allowed to develop nuclear weapons. He
suggested that this is the only way to give
them confidence about their national security.
On the other hand, he said, the DPRK should
be made to understand clearly that any attempt
on their part to proliferate “weapons of mass
destruction” will be resolutely blocked by the
U.S. While this view was challenged by several
conference participants, there was general
agreement on the need for a new departure in
the Bush administration’s North Korea policy.
Another area of general agreement was the
view that the role played by South Korea in
responding to the current nuclear crisis will be
pivotal, not in the least because of the dynamic
political situation in South Korea due to
increased democratization and generational
change. Young and middle-aged South Koreans
today have no memory of the Korean War, and
accordingly, they seem to be more interested
in reconciliation and co-existence with North
Aleksandr Ilitchev, Han Song Ryol and Don Oberdorfer
Korea than in deterrence and containment.
The second panel was moderated by Ezra
Vogel, Henry Ford II research professor in the
social sciences at Harvard University. The
panelists were: Alexandre Mansourov, associate
professor at the Asia Pacific Center in
Honolulu; Tsuyoshi Sunahara, senior fellow
at the Center for Strategic and International
Studies in Washington, DC; Xyu Yang,
counselor at the PRC Mission to the United
Nations; and Aleksandr Ilitchev, senior officer
in the Department of Political Affairs at the
United Nations. The discussion in this panel
was focused on the national perspectives of
China, Japan and Russia. China was predicted
to play a more direct role, acting on its primary
interest of ensuring stability on the neighboring
Korean peninsula. Japan was seen as deeply
concerned with North Korea’s ballistic missile
and nuclear capabilities. In the opinion of
Sunahara, however, Prime Minister Koizumi’s
trip to Pyongyang should be considered a
missed opportunity because both sides mismanaged the sensitive kidnapping issue.
Mansourov pointed out that Russian officials
had advised Kim Jung Il soon after he took over
leadership of the DPRK that it would be a
mistake to focus solely on bilateral negotiations
with the U.S., and now cite the unraveling
Agreed Framework as evidence of the shortcomings of this approach. Moscow, like
Beijing and Tokyo, wants to prevent escalation
of the nuclear issue and diplomatically press
for a denuclearized peninsula. The importance
of the NPT and role of the International
Atomic Energy Agency (IAEA) also was
discussed. Ilitchev reminded the conference
participants that the UN acts most crucially as
a facilitator of food aid to North Korea, to
prevent a parallel humanitarian crisis.
In a concluding summary, Carter Eckert,
director of the Korea Institute, characterized
the conference proceedings as a “step in
the right direction.” The conference provided
a timely and significant opportunity to
constructively consider regional voices and
interests, he suggested, and presented an
unusual occasion for the media, the university
community and the general public to interact
with a uniquely well-qualified group of
Korea scholars, other experts and officials,
including a very articulate representative of
the DPRK. One of the most debated questions
posed by the audience during a lively Q&A
session was “Would the U.S. let the current
North Korean regime survive, even if it were
free of WMD?” A wide range of sometimes
conflicting views were heard on the appropriate
mix of engagement and confrontation with
North Korea, but there a general consensus
emerged that the conference promoted a
better understanding of regional perspectives
and contributed to the ongoing international
dialogue aimed at resolving the current crisis.
Bridging Change in Asia:
New York Looks to Korea and Japan
April 25 & 26 • New York City
In the Spring of 2003, as part of the
Transmitting the Forms of Divinity exhibition,
The Korea Society and the Japan Society
presented two one-day conferences anchoring
a three-month exploration of Korea-Japan
relations, past, present and future. The first
conference, On the Brink: Japan, Korea & the
Future of Regional Security in Asia, featured
senior foreign policy and economic experts
from Japan, South Korea and the U.S. in a
timely discussion of the common security and
economic challenges facing Japan and Korea
in an increasingly complicated global landscape. Korea & Japan: Rediscovering the Past,
Shaping the Future, the second conference,
brought together distinguished historians,
sociologists, writers and artists to examine the
cultural interchange between Japan and
Korea, from prehistoric common roots to
popular culture in the 21st century.
A report is forthcoming detailing the
major topics from the conferences.
Day 1 - On the Brink: Japan, Korea &
the Future of Regional Security in Asia
A sampling of the questions explored during
the conference:
• What can be done to alleviate the impact
of the historical problem with Japan?
• How feasible is it for the U.S. to launch
a surgical strike on North Korea?
• With a hawkish Department of
Defense, are we being led away from
diplomacy towards a military solution?
• Many financial issues still need to be
addressed in the Chiang Mai initiative.
We saw the effects of competitive
devaluation of the yen, yuan and other
currencies in the early 1990s. How can
these be avoided in a move to float
exchange rates?
• Does North Korea fit into a discussion
of the regional economy, or is it a black
hole we work around?
Gong Ro-myung and Terusuke Terada
25
VOLUME 3, NUMBER 4
• The U.S. has already disproved multilateral approaches by going to Beijing
so how will the U.S. move from multilateral to unilateral approaches?
• How soon and in what magnitude will
the U.S. redeploy forces in Korea?
• In North Korea, a humanitarian disaster of monumental proportions is
developing before our eyes. Is there
any discussion of allowing outside
agencies or a coalition of countries to
address this pressing issue?
Keynote Speakers:
Gong Ro-myung, Former South
Korean Ambassador to Japan
Terusuke Terada, Former Japanese
Ambassador to South Korea
Christopher J. LaFleur, Special Envoy
for Northeast Asia Security
Consultations
Other Speakers and Moderators:
Kim Dong-shin, Former Minister of
National Defense, Republic of Korea
Donald P. Gregg, President &
Chairman, The Korea Society, Former
U.S. Ambassador to Korea
Nicholas D. Kristof, Op-Ed
Columnist, The New York Times
Ahn Choong Yong, President,
Korean Institute for International
Economic Policy (KIEP)
John P. Lipsky, Chief Economist,
Marcus Noland, Senior Scholar,
Institute for International Economics
Don Oberdorfer, Journalist-inResidence and Adjunct Professor in
International Relations, Johns Hopkins
University
Masao Okonogi, Professor of Political
Science, Keio University
Ippei Yamazawa, Professor, Graduate
School of Asia-Pacific Studies, Waseda
University
Panel I: From China to Russia to North
Korea–Security Challenges Facing Japan and
South Korea in Asia
Panel II: Cooperation or Rivalry? The Future
of Japan-Korea Economic Relations in the
New Asia
Anti-Americanism in Korea:
Closing Perception Gaps
May 21 • New York, NY
A great deal of media attention has been
focused in recent months on a “rising tide of
anti-Americanism” among the South Korean
people, and some would say within the new
Day 2 - Korea & Japan: Rediscovering the
Past, Shaping the Future
A sampling of the questions explored during
the conference:
• Who among Japan’s intellectuals, historians and writers are making apologies, other than Kenzaburo Oe?
• How does the status of ethnic Koreans
in Japan affect Japan-Korea relations?
• What were the historical events that gave
rise to the thaw in Japan-Korea relations?
• What were the Japanese perspectives on
Korea before the World Cup and after?
Welcome:
John Wheeler, Vice President, Japan Society
Frederick F. Carriere, Vice President and
Executive Director, The Korea Society
Keynote Speaker:
Gari Keith Ledyard, King Sejong
Professor of Korean Studies Emeritus,
Columbia University
Other Speakers and Moderators:
Donald McCallum, Professor of Art
History, University of California at Los
Angeles
Charles Armstrong, Associate
Professor of History and Director,
Center for Korean Research, Columbia
University
Mark Caprio, Assistant Professor,
Department of Law, Rikkyo University
and Post-Doctoral Fellow, Korea
Institute, Harvard University
Kim Hosup, Professor, Faculty of
Public Policy, Chung-Ang University
Makoto Oda, Award-winning Author
and Peace Activist
Jung Sun Park, Assistant Professor,
Asian Pacific Studies Program,
California State University
(Dominguez Hills)
Greg Pak, Film Director and Writer
Linda Hoaglund, Translator and Film
Expert
Closing Event:
Screening of An’nyoung Kimchi (1999) by
Tetsuaki Matsue
range of South Korean attitudes toward the
U.S. and examined the context, both current
and historic, in which these attitudes have
evolved. It included a luncheon keynote
address followed by two panel discussions.
The
first
panel,
entitled
“AntiAmericanism in the Korean Context,” featured
presentations by: Hahm Chaibong, professor
of political science at Yonsei University; and
Donald P. Gregg, president & chairman of The
Korea Society and a former U.S. ambassador
to the ROK. Ralph Cossa, president of the
Pacific Forum CSIS served as moderator.
The second panel, entitled “Adapting the
U.S.-ROK Alliance to New Realities,” featured presentations by: Chung Chong-wook,
Freeman Foundation visiting professor at The
Claremont McKenna College and a former
ROK national security advisor; and Stephen
W. Bosworth, dean of the Fletcher School of
Law & Diplomacy and a former U.S.
ambassador to the ROK.
The goal of the discussions was to promote
a more informed public awareness in the
United States of the nature, depth and scope
of anti-Americanism in the ROK and its
potential impact on the U.S.-ROK alliance.
Cossa delivered an informal keynote
presentation on the topic of American reactions
to anti-Americanism in the ROK, which he
said generally take two forms. The first is the
tendency to generalize small incidents and
“blow them out of proportion.” The second is
a tendency to dismiss or downplay the
sentiment. He argued that if negative images
are not straightened out, policy formulation
may become counter-productive to long-term
interests. In regard to the second tendency,
Cossa stated that it was important for
Washington to realize that anti-American
sentiment was not a passing phase but rather
an underlying issue compounded by both
emotionalism and nationalism.
In his presentation, Hahm argued that
American values exert considerable influence
in Korea, not only in the political and economic
spheres but also in the areas of education and
religion. Citing statistics released by the
International Institute of Education (IIE),
Hahm noted that South Korea has sent over
Panel I: Korea’s Early Influence on Japanese Art
Panel II: The Legacy of the Past: Japan, Korea
and the Pacific War
Panel III: Korea and Japan in Film
administration as well. This issue was
addressed by a distinguished group of former
ambassadors and other distinguished experts
from both countries during a half-day
conference cosponsored by the Pacific
Forum CSIS and the Korea Foundation.
The conference highlighted the broad
Chung Chong-wook, Ralph Cossa and Hahm Chaibong
26
VOLUME 3, NUMBER 4
49,000 students to American colleges and
universities annually in recent years. South
Korea ranks third worldwide as a “sending
country” in the foreign student flow to the
U.S. In terms of religion, Hahm noted that
Korea is the most Christianized country in
Asia with between 35-50 percent of South
Koreans claiming to be Christian.
Touching upon anti-American sentiment,
Hahm argued that it stems from a generational
divide reflecting the differences in the
“significant historical moments” that separate
Korea’s old from its young. For the former,
these defining moments are rooted in the
Korean War, for the latter, they are embedded
in the 1980 Kwangju uprising. Whereas anticommunism, security issues, and economic
development are the values that shaped the
political identity of the Korean War generation,
the values of the 386 generation—those in
their thirties who attended college in the
eighties and were born in the sixties—are
founded in the mistrust engendered from a
belief that the U.S. was complicit in the
military crackdown of the Kwangju uprising.
Chung began his presentation by characterizing
the state of the U.S.-Korea alliance as on the
verge of total collapse and disintegration. He
said this crisis is due primarily to the fact that
one side views North Korea as the enemy
while the other views the North as a friend.
However, according to Chung, the summit
meeting between President Roh and
President Bush lessened the grounds for
concern by restoring personal trust between
the two presidents. The summit also was
important because of the agreements reached
on the efforts to link the economies of North
Korea and South Korea as well as the approach
to be taken toward a possible resolution of the
North Korean nuclear issue.
Chung stated that the South Korean government was unwilling to go along with a
preemptive military strike to resolve the
nuclear issue. From personal experience,
Chung noted that the initial Blue House
reaction to the 1993 nuclear crisis was one of
surprise as they were caught unaware and
totally unprepared to deal with such a serious
situation. The Agreed Framework that
resolved the crisis may not have been the
absolute best outcome but it was the best one
obtainable under the circumstances. By
comparison, Chung said that he is more
optimistic about the current situation, in part,
because of the role China is playing.
Concluding his remarks, Chung reiterated
South Korea’s uneasiness with unilateralism
and preemptive strikes.
Returning to the topic of the U.S.-Korea
alliance, Bosworth noted that there are differing
assessments of the threat confronting the
parties for the first time in the history of the
alliance. In part, he said, the divergence in
views is a result of the Sunshine Policy. As a
result of the policy, more and more South
Koreans have gained insight into North
Korea, and therefore, they no longer see it as
a threat to their security.
In Bosworth’s opinion, the asymmetry
between Washington and Seoul in the
perception of the threat and risks on the
Korean peninsula poses a major challenge for
the future of the alliance. Given North Korea’s
potential proliferation of nuclear materials,
Washington views the threat posed to the U.S.
by North Korea as very high but not life
threatening. For Seoul, which does not
believe that North Korea would use nuclear
weapons against them, the risk is enormous if
the U.S. were to go ahead and do anything it
wanted. Unfortunately, Bosworth said, the
recent summit did not do much to narrow
this asymmetry.
Bosworth also concurred with Chung’s view
that the new role for China is encouraging. In
a post 9/11 environment, he said, there is an
emerging strategic partnership between
China and the U.S. in which the U.S. is more
willing to allow China to play a direct role in
resolving the North Korean nuclear issue.
In conclusion, Bosworth characterized the
restructuring and repositioning of U.S.
military forces as a “done deal” that will
result in a substantial reduction of U.S. forces
in the ROK but not an abandonment of
U.S. commitments. According to Bosworth,
the future will reveal a very different kind of
alliance and relationship, and the big question
is whether or not a deal can be struck with
North Korea.
The North Korean Quandary:
Is there a way out?
July 15 • New York, NY
Over the past year, mounting evidence has
indicated that North Korea is advancing its
nuclear weapons and plutonium reprocessing
programs, thereby threatening the peace and
stability of the Northeast Asian region as well
as the international community. Han Sung
Joo, ambassador of the Republic of Korea to
the U.S., addressed these concerns and the
ramifications of a nuclear-armed North Korea.
Han began his presentation by stressing
that the Republic of Korea, the United States
and Japan have been meeting collectively and
continuously recently in an effort to resolve
this situation peacefully. The objective of
these efforts has been to induce North Korea
to attend a second round of Beijing talks as
well as to develop a coordinated proposal to
bring to these talks. Concurrently, in an effort
to maintain momentum, China has been
sending high-level envoys to Washington and
Pyongyang while also maintaining close
diplomatic contact with South Korea and Japan.
The quandaries involved in resolving the
27
VOLUME 3, NUMBER 4
Han Sung Joo
North Korean nuclear issue are multifaceted.
According to Han, a “serious cleavage of views”
within the ROK and the U.S. has left both
nations without a consensus on how to resolve
the current crisis. Accordingly, the U.S., ROK
and Japan also have not been engaged in
developing a coordinated proposal to present
to North Korea. However, they have developed
what Han referred to as a “framework” or a
“set of ideas” to take to the table, if and when
another round of talks takes place. In this
regard, he noted, there has been a substantial
amount of uncertainty and speculation
recently about whether or not North Korea
will come to the negotiating table at all, and if
it does, whether or not it will be cooperative.
One obstacle hindering the onset of a
second round of talks involves the number
and composition of participants. While North
Korea is demanding bilateral negotiations
with the U.S., the U.S. is insisting on a multilateral format in which the ROK, Japan and
China would be involved in the negotiations.
From the North Korean perspective, twoparty talks are desirable because only the U.S.
can provide the desired security guarantee and
open the door to outside economic support.
The U.S. wants multi-party talks on the grounds
that other nations should share the burden and
the cost of dealing with North Korea as well as
be involved in preventing it from cheating on its
agreements. Russian attendance also has been
discussed as a possibility. The U.S., Japan and
the ROK have taken the official position that if
North Korea wants Russian involvement,
Russia would be welcomed.
An interesting aspect of North Korea’s
behavior is that although it insists on bilateral
negotiations with the U.S., it inevitably and
consistently detracts from the realization of
this objective by engaging in conduct that
makes the U.S. unwilling to have a one-onone encounter, such as intimidation and
blackmail. Whether or not this defeatist
behavior is intentional or inadvertent has
been the subject of substantial debate.
Some observers believe that North Korea
has advanced its weapons programs, at least
in part, as a reaction to lessons learned from
Iraq. In other words, Han said, North Korea’s
strategy may entail getting other nations
accustomed to the idea that they possess
nuclear materials and weapons. Then, when
the time actually comes for North Korea to
officially and unequivocally declare that it
has these weapons, or when the time comes to
test such an assertion, the rest of the world
will not be surprised. Consequently, from the
perspective of North Korea, perhaps the rest
of the world would not impose punishment
on the regime.
It is no secret that North Korea has been
very vociferous in broadcasting its nuclear and
other weapons of mass destruction (WMD)
programs. An interesting aspect of this is that
North Korea will only admit that it has nuclear
weapons, or that it has almost completed the
reprocessing of the fuel rods from the
Yongbyon facility, when it is communicating
with the U.S. In its communications with all
other countries, North Korea either says nothing
or denies that it has said anything threatening
to the U.S. at all. Consequently, it has been very
difficult for the U.S. to maintain its credibility
when conveying North Korea’s intimidation
tactics to other countries, especially the ROK,
Japan, Russia and China, because these countries
have not actually heard the threats themselves.
It has been very difficult to discern if the
issue of the number of participants to be seated
at the table for the next round of negotiations
is the fundamental question, or if it is merely
a means of delaying the process. It is feasible
to argue that North Korea does not want to
negotiate at all and is instead buying time to
finish its nuclear program. There is also some
conjecture about whether North Korea is
bluffing, when it makes announcements
about its nuclear program or whether it is
engaging in a form of confessional diplomacy.
Whatever its rationale or strategy, however,
Han stated that North Korea has started to
walk a very dangerous road. The question at
hand is whether North Korea will negotiate a
deal to eliminate its nuclear weapons or
whether it intends to develop nuclear
weapons at any cost.
Han reminded his audience that he was
the ROK minister of foreign affairs ten years
ago, when North Korea first announced its
intention to withdraw from the nuclear nonproliferation treaty, and this same question
about the true intentions of North Korea was
also at the fore. At that time, the consensus
favored an optimistic view and it was presumed
that North Korea would negotiate away its
nuclear program. Taking the opposite stance
would be counterproductive and dangerous,
it was thought. Moreover, Han explained, the
Ministry of Foreign Affairs in Seoul and the
Department of State in Washington spoke
authoritatively on behalf of their respective
governments. In other words, for better or
worse, there was a plan for dealing with the
crisis at that time in which both governments
concurred. This time, both countries are
having a very difficult time developing a
plan. This is probably the most unfortunate
difference between the situation then and the
current situation. The most serious difference,
however, and the most detrimental one, is
that today, North Korea is undoubtedly much
closer to producing larger quantities of
bombs and bombs of greater sophistication.
The ROK, the U.S. and Japan believe that
North Korea has been hard at work in the
interim on its two nuclear programs—the
plutonium program, which involves the
reprocessing of spent fuel rods, and the
highly enriched uranium program.
Also, Han noted, the relationship between
North Korea and South Korea is quite different
today than it was ten years ago when
President Kim Il Sung was alive. In his own
way, he had the ability to serve as a moderating
force. For example, he was able to exert his
influence and extend an invitation to former
President Carter when he felt that the international atmosphere was overwhelmingly
against the North Korean position.
The ambassador enumerated three
possibilities for the future: things will get
better; things will stay the same; or, things
will get worse. At this time, Han argued, the
second scenario is not feasible because if
North Korea is not stopped, it will continue to
build nuclear weapons at an accelerated pace.
Han stated that he was afraid that even if
things were to get better eventually, they
would get worse before they got better.
While some believe that it may be too late
to resolve the current crisis peacefully, Han said
that he does not. He stated that multilateral
talks might be the best approach to a resolution.
Multilateral talks would appease the U.S. and
conceivably present North Korea with the
concurrent opportunity of having a one-onone conversation with the U.S.
In any event, the whole process will continue
to be a roller coaster ride. The ambassador stated
that we should neither panic when North Korea
acts badly nor relax when they respond in a
seemingly appropriate manner. “It is important
that we return to the negotiating table and
continuously strive to implement peaceful
measures while concurrently being firm and
consistent,” Han said. He further emphasized
that at the moment, the most important task
at hand was to encourage the ROK, the U.S.
and Japan to strive for a coordinated solution.
28
VOLUME 3, NUMBER 4
CORPORATE AFFAIRS
President-Elect Roh Moo-hyun’s
Economic Policy and Plans for
the Future of South Korea
On the eve of his reassignment at the end of a
three-year stint as the financial attaché of the
Republic of Korea in New York, Chang Soo-Man
addressed a business roundtable luncheon
forum on the topic of President-elect Roh
Moo-hyun’s economic policy objectives.
Chang began by noting that he would
address six key issues in his presentation:
continuity of economic policy; globalization;
the chaebol; labor unrest; income distribution;
and the current geopolitical situation.
While acknowledging that the current
geopolitical situation affected all of the other
issues, either directly or indirectly, Chang
explained that it would not be the primary focus
of his remarks since Korean political affairs, and
the North Korean nuclear issue, in particular, are
outside his area of expertise as an economist.
With regard to the direction of the presidentelect’s economic policies, Chang predicted that
Roh Moo-hyun’s policies would probably not
alter significantly from those initiated and
implemented by Kim Dae-jung. In short, he
concurred with the generally held perception
prior to the recent election that the incoming
administration would make a strong commitment
to the continuation of the former administration’s
economic policy.
Explaining the reason for this perception,
Chang said it reflects the consensus among
most Korean and foreign observers that
Korea’s economic reforms have been quite
successful. In fact, he said, reform has become
a way of life in Korea, so much so that it has
become institutionalized. On the domestic
front, many Koreans have benefited from the
successes brought about by the reforms.
Internationally, the numbers speak for themselves: the total dollar amount of incoming
foreign direct investment (FDI) during the
period extending from 1998 through 2002
exceeded $59 billion, which surpasses the
dollar value of FDI during the entire 30-year
pre-crisis period.
Globalization, like reform, also has become
an integral part of the Korean economic framework, according to Chang. This is demonstrated
by President-elect Roh’s decision to commit
his administration to the goal of transforming
Korea into Northeast Asia’s business hub. A
second indicator is his commitment to transform
Seoul and the surrounding vicinity into an
international financial center—one that will
equal or surpass Tokyo, Hong Kong and
Singapore in terms of “foreigner friendliness”
and investor appeal. To this end, Chang
confirmed that the president-elect plans to
lessen government regulation and taxation
Chang Soo-man
within the economic free zones of Incheon,
Pusan, and Kwangyang. To encourage foreign
investment, he also plans to continue creating
special housing areas for international residents
—complete with medical centers and schools.
On the subject of the Korean chaebol,
Chang said it is common knowledge that
although they have undergone a great deal of
transformation, a great deal still needs to be
done, especially in terms of transparency and
securing fairness in the market. To accomplish
these goals, the incoming administration’s
economic transition team is considering three
measures: (1) firewalls between financial and
industrial capital for purposes of preventing
the chaebol from providing affiliates with
capital at unreasonable terms; (2) class-action
lawsuits to curb stock price manipulation,
accounting irregularities and false public
disclosures; and, (3) a more equitable taxation
system in order to promote a better distribution
of wealth among all Korean citizens.
In regard to labor issues, Chang acknowledged that President-elect Roh is sometimes
regarded by the investment community as
being “pro-labor”—often disparagingly so—
in view of his previous career as a human
rights attorney. On the other hand, Chang
pointed out, the president-elect’s in-depth and
personal knowledge of labor issues in Korea will
prove advantageous in the present economic
environment, especially when coupled with
his proven negotiating skills. His commitment
to pursue a proactive approach in striving for
a reasonable, achievable balance between
competing interests will culminate in a winning
situation for management, labor and the
foreign investor. In short, Chang stressed, the
president-elect is quite cognizant of the critical
relationship between securing and maintaining
FDI in Korea, on the one hand, and resolving
labor disputes peacefully on the other. Chang
reinforced this point by reiterating the presidentelect’s stated intention to reactivate and reinvigorate the Tripartite Committee.
Chang also argued that President-elect Roh
is particularly interested in income distribution
for very good reasons: the phenomenon of an
inequitable income distribution was exacerbated
by the 1997-1998 financial crisis when
unemployment and job insecurity created
serious wage inequalities. Enlarging the
middle-income class by helping educated
women find suitable employment is one
measure that the president-elect plans to take
to help resolve this situation. To help achieve
this goal, Chang said, the government will
provide more childcare facilities, propose job
creation initiatives and enact laws to eliminate
sexual discrimination in the workplace.
With regard to the geopolitical situation
and the crisis caused by North Korea’s
nuclear program in particular, Chang stated
unequivocally that the ROK government is
expending an “immense amount of effort” to
secure a peaceful resolution of the present
crisis through dialogue, diplomacy and close
cooperation with all the involved parties. He
underscored the incoming administration’s
position on this issue by quoting a recent
statement by President-elect Roh: “South
Korea has to induce North Korea to reform its
system and open up its society. Neither war
nor regime collapse will help the peninsula.
We must resolve the North Korean nuclear
issue through dialogue.”
To strengthen inter-Korean relations, Chang
noted that the president-elect also strongly
supports the extension of the trans-Siberian
railway, also known as the “Iron Silk Road,”
by reconnecting the railroads of North and South
Korea. Achieving this goal would have the
synergistic effect of promoting collaboration
among the countries of Northeast Asia, thereby
enhancing the economic importance of Seoul,
and ensuring a lasting peace in the region.
Lastly with regard to the recent manifestation
of anti-American sentiment in Korea, Chang
conveyed his personal conviction that the
heightened tensions between South Korea
and the United States stem from mutual misunderstandings and misperceptions. He
elaborated on this view by explaining that the
two nations frequently have taken each other
for granted. That is, all too often Americans have
taken Korea for granted politically while Koreans
have taken the U.S. for granted militarily.
In conclusion, Chang stated: “Presidentelect Roh is a very capable man. He is also
very open-minded and reasonable. He is well
known for his willingness to listen to as many
voices as possible before making a decision or
formulating policy. I believe, without reservation,
that such a president leading our government
will enable the Republic of Korea to continue to
grow and prosper and to remain a responsible
member of the global community.”
Moody’s, spoke at a business roundtable
luncheon forum on the impact of what he
called the “new mindset” sweeping through
the Republic of Korea. He stated that this
phenomenon—which is manifested in a
deepened sense of nationalism—is not
universal, but its impact is conspicuous in both
the economic and political spheres, especially
in the ROK’s relations with the United States
and North Korea. Byrne said he did not
believe that this trend would lead to economic
nationalism, but he also cautioned against
ignoring it. In order to assess the potential
impact of this new mindset on Korea’s ratings,
Byrne divided his presentation into two
areas: the economy and security. Noting that
the new administration had not yet been
inaugurated, however, Byrne stressed the
tentative nature of his remarks.
From an economic perspective, Byrne
explained, the Roh Moo-hyun administration
is expected to continue the economic reforms
initiated by the Kim Dae-jung administration;
take steps to enhance the transparency of the
chaebol; introduce a consolidated tax system—
one that would be “burdensome” to the chaebol;
increase domestic welfare spending; favor
policies that protect labor; augment the
purchasing power of the average consumer;
continue privatization efforts; and further the
efforts to transform Korea into a regional hub.
Noting the need to privatize Korean banks, he
cautioned that the government’s failure to
take aggressive steps in this area as well
would be a set back to the economy.
On the issue of security, Byrne noted the
U.S. troop issue, anti-Americanism, and the
North Korean nuclear situation. He stressed
that if the newly emerging nationalism were
to get out of control, or if it were perceived to
be a threat by the U.S., then the withdrawal of
U.S. troops stationed in South Korea would
become a greater risk factor. He was careful to
point out that this factor did not have a great
deal of weight at the moment; however, he
stated that Moody’s must consider that likelihood when evaluating Korea’s sovereign
rating. On the other hand, Byrne was careful
to state that South Korean security experts
assert that the majority of the population still
favors a strong security alliance with the U.S.
The Winds of Change:
Korea’s Newly Emerging Nationalism
and Economic Policy Challenges
Thomas Byrne, vice president and senior
credit officer of the sovereign risk unit at
29
VOLUME 3, NUMBER 4
Thomas Byrne
With regard to engagement costs, Byrne stated
that regardless of the way in which engagement
occurs, costs will increase significantly. He
also explained that this was why the Sunshine
Policy has had such an appeal to the Korean
people: namely, it is a relatively low-cost
option. Unfortunately, however, the Sunshine
Policy has outlived its usefulness in Moody’s
opinion, and this will have security implications
as well as economic and fiscal ones. Byrne
stated that this was one of Moody’s biggest
concerns going forward. He also noted that
the once-prevalent practice of calculating the
costs of engagement has been discontinued in
Korea, and suggested it would be advisable for
the Korean government to reinstate this practice.
Another concern pertaining to the economics
of engagement relates to the costs of the political
economy. Should reunification between the
North and the South occur suddenly, the chaebol
would have to shoulder a heavy burden in
making investments in the North. Furthermore, there would be a redistribution of income
and an increase in wealth disparities within the
South. This outcome not only would go against
the policies of the Kim Dae-jung administration,
but also the intended policies of the new Roh
Moo-hyun administration, and by implication
South Korea’s potential growth rate would be
reduced somewhat while North Korea’s
growth rate would rocket up.
However, he suggested, there could be
even weightier political implications if the
incoming Roh administration pursues the
current engagement policy with the North
too agressively, this would probably erode
support not only for the Sunshine Policy, but
for any policy of engagement with North Korea.
Byrne concluded his presentation by stating
that the economic consequences of a populist
or a nationalist government in the Republic of
Korea are manageable. However, the security costs
and ramifications have become unpredictable.
North Korea is moving along a path that
appears to be riskier than past behavior. He
stated that the situation today has gone beyond
what it was in 1994. However, Moody’s
contends that if the U.S., South Korea and
North Korea were to sit down, there is still
time to prevent this situation from escalating
out of control although recent events suggest
that time is quickly running out.
The Election of Roh Moo-hyun:
Implications for the Economics, Politics,
and Foreign Relations of South Korea
The implications of the election of President
Roh Moo-hyun were explored in a panel
discussion copresented with the Asia Society.
The program featured presentations by:
Hoon Jaung, professor of political science at
Chung-Ang University in Seoul; Cho Won-il,
consul general of the Republic of Korea in New
l-r: Bill Holstein, Nicholas Bratt, John Chambers, Cho Won-il and Hoon Jaung
York; John Chambers, managing director,
Standard and Poor’s; and Nicholas Bratt,
managing director and head of global equity
products for Deutsche Asset Management and
president of the Korea Fund. The moderator was
Bill Holstein, editor of Chief Executive Magazine.
In his presentation, Jaung emphasized the
establishment of a new equilibrium in Korean
politics due to the election of Roh Moo-hyun.
He explained that for a long time Korean
politics had been dominated by conservative
forces. However, the recent election effectively
brought about an “ideological balance
between liberals and conservatives.” The
force behind this shift was Korea’s younger
generation, indicating that there is an ideological struggle between the generations, and
that the younger generation is more liberal
than the conservative political establishment.
Explaining the term “conservative,” Jaung
stated that in the Korean context it signifies a
strong commitment to the principles of a market
economy, the assignment of a high priority to
economic growth, and the perception of
North Korea as an enemy posing a nuclear
threat. On the other hand, the term “liberal”
conveys a more nuanced acceptance of the
market economy with greater emphasis on the
redistribution of wealth and a commitment to
enhanced social welfare. Importantly, “liberal”
also connotes the view that North Korea is not
a hostile state—at least vis-à-vis South Korea.
Therefore, Jaung argued, the burning issue of
the day is how the incoming administration,
which has come to power on the strength of the
“liberal” younger generation, will handle
economic reform and the ties with the U.S.
With regard to economic reform, Jaung
stated that the main focus should be the chaebol,
and he cited the indictment of the chairman of
SK Telecom as the beginning of drastic reform
measures. He suggested that the outlook was
not rosy, explaining that the political capacity
of the new administration has not been tested
yet. Moreover, the government is divided
since the conservative opposition party
retains control of the legislature. In terms of
Korea’s relationship with the U.S., Jaung
discussed U.S. concerns over the perceived
heightened nationalistic and idealistic trends
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in Korea and stated that the new president
has been actively seeking to moderate these
trends ever since his election. Cautioning
against over-reaction, he characterized the
recent changes in South Korea as growing
pains associated with the movement toward
greater democracy, a more mature economy
and a more equal relationship with the U.S.
In his remarks, Cho expressed concern
about the perception of growing antiAmerican sentiment in Korea citing several
exaggerated and distorted incidents reported
by the American media. He reiterated the
importance of the U.S.-Korea alliance,
emphasizing that Korea’s modern foundation
is rooted in principles introduced to Korea by
the U.S. The ambassador stressed that a radical
transformation of the U.S.-Korea alliance is
not only unlikely and unfeasible, but, more
importantly, it also would pose a long-term
threat to stability on the Korean peninsula.
Cho also rejected the view expressed in some
quarters that President Roh is anti-American,
and stressed that the president recognizes the
historical and present-day significance of the
U.S.-Korea relationship. This recognition is
demonstrated by the fact that the president
has appointed experienced diplomats to key
positions, including the national security
advisor and the deputy prime minister in
charge of economic affairs. Furthermore, noting
President Roh’s well-known admiration of
Abraham Lincoln, Cho asked, “How could
someone be anti-American and have a U.S.
president as a role model?” He also stressed
President Roh’s commitment to economic
development and enhanced security on the
Korean peninsula. On the latter point, he
assured the audience that not a single member
of the ROK National Assembly currently is in
favor of the withdrawal of U.S. forces from
Korea, and eighty percent of the general
public in South Korea also expressed support
for the continued presence of U.S. forces in
South Korea, according to the findings of a
recent opinion poll conducted by major TV
networks in Korea.
Chambers began his presentation by
arguing that Kim Jong Il is acting entirely
rationally, and fully in accordance with
economic principles, because North Korea
has a comparative and absolute advantage in
manufacturing nuclear weapons. Chambers
stated that the North is virtually bankrupt;
consequently, it is exploiting its position in an
attempt to reap gains.
The second point Chambers argued was
that if North Korea were to collapse, the cost of
reunification would be several times higher
than that of the German reunification. The
figures would be at least double the annual
aggregate gross domestic product (GDP) of
Korea because of the relative population size
of North Korea compared to South Korea.
Though reunification could occur peacefully
or due to military conflict, Chambers stated that
S&P considers the military conflict scenario to
be improbable even though tensions on the
Korean peninsula remain high.
Turning to the risk categories related to the
South Korea’s ratings’ outlook, Chambers
listed three issues: foreign direct investment
(FDI); the political and economic rifts
between the Millennium Democratic Party and
the Grand National Party; and the U.S.-Korea
relationship which could have a spill-over
effect on domestic confidence. He explained
that these were manageable risks and, unlike
one of its competitors, S&P believes the risks
to be balanced.
Concluding his remarks, Chambers
discussed growth projections, and stated
that S&P’s forecast was about five percent.
From a ratings perspective, S&P looks at
medium-term growth and the outlook for
Korea remains quite positive, thanks to the
policies implemented by Kim Dae-jung that
are likely to be continued by President Roh. If
Korea wants to maintain a five-to-six percent
growth trajectory over the medium-term,
Chambers emphasized the need for a second
generation of reforms.
Bratt began his presentation by suggesting
that there are four factors to consider in the
current economic and business climate: (1)
the South Korean economy remains very
heavily dependent on the world economy; (2)
Korea has to import energy, consequently it is
vulnerable to the price of oil; (3) the Korean
economy and financial system have been
restructured in a positive way since the 1997
Asian crisis; and (4) China will soon replace
the U.S. as Korea’s largest export market.
Bratt stated that Deutsche Bank has predicted
that Korea’s growth would be around six
percent with a trade-account surplus in the
neighborhood of eleven billion dollars; the
current account surplus would be between
three-and-seven billion dollars; and inflation
would be between 2.5 and 3.5 percent. With
regard to Moody’s recent downgrade of Korea’s
economic outlook, Bratt stated that this
adjustment had nothing to do with economics
but rather the belated recognition of the
unusual character of North Korea.
Dealing with investors’ viewpoints, Bratt
referred to Korea’s two categories of investors,
long-term and short-term, and indicated that
the priorities and risks between the two types
are quite different. He explained that the way
to measure investor perception of the risk of
investing in Korea is to examine the discount
of the price of the Korea Fund on the New
York Stock Exchange relative to its net asset
value over the past few months that figure has
remained stable at around 15 percent.
Closing his presentation, Bratt discussed his
personal impression of President Roh, whom
he characterized as “a breath of fresh air,” and
a political leader unbeholden to vested interests.
He criticized the western media, stating that
their assessment of the president’s character
and policies so far has been inaccurate. He
pointed out that Deutsche Bank’s view is that
President Roh is neither an extremist nor a
socialist, but rather a leader who is well
disposed to the market. Bratt also indicated that
investors would be paying very close attention
to reform policy in general, and industrial
and financial restructuring in particular. It
will be crucial that the government be seen as
focused on long-term fundamentals.
The question and answer period was riveting,
with topics ranging from the withdrawal of
U.S. troops from South Korea, the possibility
of North Korea’s total collapse, South Korea’s
powerful labor unions, the thousands of
artillery pieces on the Northern side of the
DMZ and the estimated cost of reunification.
Perspectives on the New Korean
Administration: A Firsthand Account
from the American Chamber of
Commerce in Korea
April 9 • New York, NY
In recent years, representatives from the
American Chamber of Commerce in Korea
(AMCHAM-K) generally have visited the U.S.
twice a year: once in the spring and again in the
fall. The purpose of these semiannual visits is
to provide the American business community
—and to some extent the U.S. government as
well—with a firsthand, realistic assessment of
the current commercial climate in Korea.
AMCHAM-K casually refers to these excursions
as “door-knocks.”
The program this year was presented
jointly by The Korea Society and the Korea
Economic Institute. The presenters were:
William C. Oberlin, president, Boeing
International Corporation, and president of
AMCHAM-K; Tami Overby, executive vice
president of AMCHAM-K; Il-Young Maing,
president, United Technologies, and vice
president of AMCHAM-K; Al Rajwani, general
manager, Procter and Gamble Korea, and vice
president of AMCHAM-K; and Jeffrey D.
Jones, attorney-at-law, Kim & Chang, and
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past president of AMCHAM-K.
The program began with welcoming remarks
by Donald P. Gregg, president & chairman of
The Korea Society, and Joseph A.B. Winder,
president of the Korea Economic Institute.
Winder spoke first and pointed out that the real
source of the strength of the U.S.-Korea relationship is to be found in the private sector. His
comments set the stage for the remainder of
the afternoon. Gregg introduced the panel
members, noting that that their combined
time in Korea surpassed one hundred years.
The discussion got underway with a
presentation by Oberlin in his capacity as the
moderator for the panel discussion. He
emphasized that the purpose of the presentations
would be to share impressions and provide
perspectives on the new administration in Korea.
As the new president was virtually unknown
prior to his election campaign, Oberlin
explained, it is not surprising that his policies
and perspectives also were unknown.
Initially, he said, AMCHAM members and
many others in the business community were
concerned about the prospects for foreign
business enterprises in South Korea. These
concerns eased considerably when in January
2003, the then President-elect Roh spoke at a
breakfast event jointly sponsored by
AMCHAM-K and the EU Chamber of
Commerce. There, the president-elect made it
very clear that Korean and foreign businesses
operating in Korea would be on the same
footing—as he put it, both would be treated
as “Korean companies.” In this breakfast
meeting, he outlined his economic policies,
provided a perspective on recent antiAmerican sentiment and the candlelight
vigils, stated his position on the issue of the
revision of the SOFA, and emphasized that
the U.S. forces should remain in Korea.
Additionally, he indicated that most of the
economic policies initiated by former
President Kim Dae-jung would be continued.
This provided the business community and
AMCHAM-K with a great deal of reassurance.
Then what happened? he said: Moody’s
downgraded its outlook. Characterizing this
event as “a wake-up call in Korea,” Oberlin
pointed out that “it demonstrated the close
relationship between national security and
economic prosperity.” He stressed that both
have to be pursued in tandem.
Following his inauguration, President Roh
put his team into place. In almost all cases,
Oberlin explained, whenever the new president
appointed someone without extensive experience,
he also appointed someone who was well
versed in the respective ministry or discipline.
As his final point, Oberlin gave a brief update on the status of the efforts to conclude a
U.S.-Korea Bilateral Investment Treaty (BIT).
He noted that the BIT was proposed initially
about five years ago during a visit by
President Kim Dae-jung to Washington.
Although the U.S. has hundreds of these
investment treaties, the proposed treaty with
Korea ran into many roadblocks—minor
roadblocks as well as more significant ones
involving both screen quotas in the motion
picture industry and the telecommunications
sector. “Having a bilateral investment treaty,”
Oberlin said, “sends the right signal to foreign
investors.” More importantly, it is hard to see
how the difficulties of concluding a Free
Trade Agreement (FTA) between Korea and
the U.S. could ever be overcome without first
overcoming the hurdles involved in passing a
bilateral investment treaty. “If you can’t pass a
BIT, you never will address an FTA,” he said.
Oberlin concluded his remarks by stating that
AMCHAM-K was pleased that there was an
effort to “resurrect the bilateral investment
treaty” and he attributed this effort to the Roh
administration’s continued impetus to attract
foreign investment. “We see this as a very good
signal. We hope to see the BIT concluded in 2003.”
In her presentation, Overby focused on
two issues: the first was AMCHAM-K’s
annual publication; the second was the visa
waiver program.
On the first subject, Overby spoke of
AMCHAM-K’s past practice of publishing a
“thick document” each year that was replete
with very detailed and specific recommendations
on measures needed to improve Korea’s
business climate. Over the years, the document
had a number of titles, including Trade and
Investment Issues and Recommendations
from American Businesses; the last title was
Improving Korea’s Business Climate.
Traditionally, however, the book was known
in Korean government circles as “AMCHAM’s
Complaint Book.” This year, as an indication
of progress, AMCHAM-K published instead
what Overby characterized as “a little, slick
brochure” that is a reflection of the significant
restructuring progress made in Korea since
the 1997-1998 economic crisis. Moreover, for
the first time, the brochure was published online this year will be updated on a real-time
basis rather than on an annual basis as was
the case in the past.
Continuing in a similar vein, Overby also
informed the audience about the improved
and “more frequent relationship” AMCHAMK has developed with the Korean government.
She described the 30-plus specialized committees
that meet once a month, including a few that
cover issues related to all sectors, such as labor
and taxation, and others that are sector-specific,
such as autos, chemicals, pharmaceuticals,
etc. With the benefit of a “good, cohesive
relationship,” issues get resolved much faster
these days than was the case in the past.
Turning to her second topic, Overby
discussed issues pertaining to visas issuance
and in particular stressed the difficulties that will
Jeffrey Jones, Al Rajwani, Il-Young Maing, Tami Overby and William Oberlin addressing the “door-knock” audience.
be caused if the U.S. government implements
its announced plan to eliminate the Personal
Appearance Waiver Program. She explained
that 75 percent of visa applicants in Korea
currently make application through an
authorized organization, such as AMCHAMK, and are issued a visa without appearing for
an interview at the U.S. Consulate. “AMCHAM
has a visa referral program for our member
companies,” she stated. “We get our visas
back in three to five days. Our rejection rate is
about seven percent.” If the program is
eliminated, and accordingly, all applicants for
a U.S. visa are required to appear for an interview at the U.S. Consulate, the anticipated
time it will take just to obtain an appointment
is projected to be from six to nine months.
“This situation,” she said, “would devastate
U.S. businesses abroad.” She continued: “I
urge you to be concerned. Please help us to
stop this train-wreck. Those of you who have
Washington lobby offices, please put this on
the agenda. Get your Congressman to oppose
the elimination of the Visa Personal
Appearance Waiver Program.”
Maing began his presentation by
complimenting the other members of the panel,
referring to them as “living encyclopedias on
Korea.” Then he related examples of misperceptions in the U.S. about Korea—misperceptions that had come about largely because of media headlines. He told the audience
about a telephone call and an e-mail that he had
received from UTC’s corporate headquarters
in Hartford, Connecticut. The former pertained
to his evacuation plan for ex-pats should the
anti-American sentiment in Korea get out of
control. The e-mail advised him that the
North would invade the South in the near
future. Maing did not conceal his feelings on
the subject from the audience: “South Korea
is okay! There is NO crisis in Korea.” He also
assured them that the majority of people in
Korea feel the same way.
Maing then turned to the topic of investor
opportunities in Korea, describing the
phenomenal changes that have taken place in
Korea’s business climate since the mid-1990s.
He described the entry barriers, the kickbacks and
the labor issues that had prevailed previously,
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making Korea “one of the worst places in
which to invest.” By contrast, he described the
policy changes stemming from the financial
crisis in 1997 when Korea’s doors opened to
foreign direct investment (FDI), making
Korea “one of the best opportunities for
investors.” As a specific example, Maing cited
Otis Elevator’s, investment in LG Elevator.
(Otis Elevator is a UTC-owned company.) “In
2002, the company made one billion U.S.
dollars in sales revenue, which is proof that
sound investments can be made in Korea!”
Maing’s last comments pertained to the
Korean workforce. He noted the well known
fact that although Korea’s blue collar labor
was relatively expensive, the lesser known
fact was that the country’s “engineering
labor,” or “R&D labor,” or “intellectual labor”
was cheap—but of the highest quality.
The next presenter, Rajwani, discussed the
fact that consumer spending in Korea had
fallen over the past three months. He attributed
this change to a variety of factors, including
excessive credit card debt, the uncertainties
of the new administration, the North Korea
situation and the price of oil. He also said that
the reports of rising anti-American sentiment in
Korea were accurate in his opinion, especially
during the December-January timeframe. He
cited a study conducted by P&G whereby 44
percent of the Korean consumers surveyed stated
that they were not buying Pringles (a P&G
product) because they were “made in the USA.”
Rajwani admitted that in the DecemberJanuary timeframe, he was concerned about
the business climate in Korea. In more recent
months, however, the situation has changed and
the current outlook for U.S. businesses in Korea
is very positive. He credited President Roh for
this change and stated that “he has a calming
effect on people.” Moreover, Rajwani pointed
to the second half of 2003 as the period when
consumer spending would improve in Korea.
In the context of consumer spending,
Rajwani contrasted the higher saving rate of
Korea’s older generation with the spending
habits of Korea’s youth. He mused that Korea’s
young people “read magazines, eat Pringles,
and color their hair.” He added, “Now that
P&G has purchased both Wella and Clairol,
they can color their hair anyway they want!”
He ended his talk on a more serious note,
stating that he hoped the situation in the
North could be resolved quickly, peacefully
and through dialogue.
Jones, a practicing attorney with the law
firm Kim and Chang since 1980, summarized
the economic policies of the new administration.
He emphasized the Korean government’s
objective of transforming the country into the
economic hub of Northeast Asia. He described
the new administration’s goals as having
three components, and then outlined the
strategies being pursued to attain this goal.
He said that the first component of the “hub”
concept is the establishment of a logistical
network to capture the trade flows in Northeast Asia by utilizing the facilities of Incheon
International Airport and the shipping
ports of Incheon, Pusan, and Kwangyoung.
The second component is related to research
and development (R&D), and envisions Korea
replacing Hong Kong and Singapore as the R&D
headquarters for multinational companies in
Northeast Asia. The third component envisions
the transformation of Seoul into a financial
center resembling—not Singapore or Hong
Kong—but London or New York. Jones
described this aspect of the goal as more longterm and “the most ambitious.”
In order to achieve its goal, Jones indicated
that the Korean government intended to make
several strategic changes. One would be to
implement a more flexible labor environment,
including the establishment of a social
welfare system to provide labor with a better
sense of security in the event of a layoff. In
addition to unemployment insurance, outplacement services, retraining and re-education
programs would be added benefits.
Importantly, the Roh administration intends
to change Korea’s current laws to allow
companies to fire employees at their discretion
—which is not possible today.
Jones discussed some of the other planned
improvements in Korea’s social welfare policies
such as improved child care facilities and
programs for the elderly. Such changes will lead
to enhanced employment opportunities for
women, he said, which President Roh believes
will promote growth in the nation’s GDP.
In addition to numerous government-led
improvements in the areas of transparency
and corporate governance, Jones said that
improvements had been made in the area of tax
reform. He said the goal of the reform is to create
a more predictable and consistent environment
for both the corporate sector and the individual
taxpayer. The new administration also plans to
further both deregulation and the reduction of
government interference in the commercial sector.
With regard to the relationship between
Washington and Seoul, Jones stated that there
was great confusion in South Korea about the
U.S. attitude toward North Korea. More
specifically, South Koreans generally do not
understand the fundamental change that has
come about in the way the U.S. views the
world post 9/11. Consequently, most South
Koreans do not understand why Washington’s
stance toward North Korea has been “so
tough”—especially since they do not feel
threatened by their neighbors to the North.
Lastly, Jones said somewhat facetiously that
he is favorably impressed by “Washington’s
acumen on Korea” these days, noting that the
nation’s capitol “is only four months behind the
times.” He added: “This is a vast improvement
from what we have seen in previous years when
Washington’s perception of Korea was three-tofour years behind the times. Today, Washington’s
knowledge is much more accurate than it’s
ever been and much more favorable.”
Gregg opened the Q&A session by asking
Jones why his assessment of South Korea
differed from what had been presented in the
press. Jones responded by explaining that the
foreign press “descended upon Korea in
record numbers” during the election, and
“things looked pretty bad” during that period.
Three or four months ago, due to the press
coverage, people were canceling trips to
South Korea. Jones also cited a case in which
a senior female executive from a U.S. company
had requested AMCHAM-K to help her hire a
bodyguard. Today, South Korea is receiving
minimal press coverage so the negative
impressions of Korea have lingered on
despite the changed climate.
Jones also was asked whether or not there
would ever be a time when the ruling party
in South Korea would be able to convince the
North to remove the 15,000 or so artillery pieces
aimed at Seoul. He responded affirmatively,
saying he felt confident that the North Korean
situation would be resolved during the Roh
tenure. Elaborating on this view, he said Kim
Jong Il’s behavior was most likely not so
much a calculated expression of aggression—
although it certainly could be—as “a struggle
for survival and self defense.” He spoke of the
necessity to “break the cycle of mistrust”
between North Korea and the United States,
stating that the people of North Korea honestly
believe that the U.S. is planning to attack them
despite U.S. assurance to the contrary. Jones
concluded by saying that he saw an opportunity
for South Korea to be an intermediary
between North Korea and the U.S. to help
break the cycle of mistrust.
Korea: A Steady Course Toward
a Prosperous Future
Deputy Prime Minister and Minister of Finance
and Economy Kim Jin-Pyo delivered a major
address at a luncheon forum cosponsored by
Citigroup and Goldman Sachs. In his address,
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VOLUME 3, NUMBER 4
Kim Jin-Pyo
Kim attempted to calm investor jitters fueled
by the security threat posed by North Korea’s
nuclear programs and a recent major
accounting scandal involving SK Global.
On the security front, he predicted that the
standoff with North Korea would be resolved
peacefully through a multilateral dialogue
and expressed confidence that the upcoming
summit meeting between President Roh and
President Bush would facilitate this outcome.
On the economic front, Kim announced
that his government would spend 53 percent
of this year’s budget in the first half of the
year to promote economic growth. He also
suggested that stronger steps could be taken
in the latter half of the year to provide a fiscal
stimulus if necessary. “The government will
adjust its budget spending plan flexibly if the
economy fails to recover even after we have
frontloaded much of this year’s spending in
the first half.”
Another theme of the presentation was the
recent measures adopted by his government
to enhance corporate transparency. He
explained that new regulations adopted
recently, among other things, require listed
companies to change their accounting firms
every six years and prohibit corporations from
extending loans to top company executives
and majority shareholders. He reiterated his
government’s intention to maintain its policy
of limiting equity investments in their
affiliates by major business groups, for the
time being, despite the opposition to this
policy voiced by the chaebol.
Lastly, speaking in his capacity as South
Korea’s top economic policymaker, Kim
clarified his government’s position on hostile
mergers and acquisitions (M&A), saying:
“South Korea fully allows hostile M&A. Both
foreigners and Koreans can invest in local
companies with the purpose of acquiring
management control.”
A North Korean Market Economy?
Reforms, Prospects and Policy Implications
In July 2002, sweeping price reforms were
launched in North Korea. These price reforms
have to be seen in connection with other
addressing the parliament on March 26, 2003:
In all institutions and enterprises a system
of calculation based on money will have
to be correctly installed, production
and financial accounting systems be
strengthened, production and management
activities be carried out thoroughly by
calculating the actual profits.
Ruediger Frank
North Korea: "Gigantic Change" and
a Gigantic Chance
By Ruediger Frank
The situation around North Korea threatens
to escalate after the talks in Beijing passed with
—out visible progress. There is a great danger
that the standoff between the DPRK and the
United States might be just another case in the
long history of international relations, in which
a lack of knowledge of the other side created
misperceptions and resulted in undesirable
policy outcomes. After detailed research on a
truly outstanding ideological switch in the
DPRK after 1998 and a quantitative analysis
of the 2002 price reforms, I have come to the
conclusion that something remarkable is
finally going on in terms of economic reforms
in North Korea. This opens a narrow window
of opportunity that should not be missed—
both in the interest of millions of individuals,
and of the involved nation-states.
On January 4, 2001, a prominent North
Korean wrote in an article titled The 21st Century
is a Century of Gigantic Change and Creation:
Things are not what they used to be in
the 1960s. So no one should follow the
way people used to do things in the
past... We should make constant efforts
to renew the landscape to replace the
one that was formed in the past, to
meet the requirements of a new era.
These words were published in capital
letters in the Rodong Sinmun, the number one
North Korean newspaper. The author's name
is Kim Jong Il, also known as the son of the late
president Kim Il Sung, who now is the leader
of the Democratic People's Republic of Korea.
In 2001, a far-reaching reform policy
finally entered into its implementation stage in
North Korea after some years of preparation,
discussion and formulation. The constitution,
which was changed in 1998, already contained
passages stressing the relevance of "costs,
prices and profits" (Article 33). Various official
publications reiterate this, among the latest
ones being the speech of DPRK Finance
Minister Mun Il-bong on the 2003 state budget
In a dramatic move, on July 1, 2002, a sweeping
price reform was introduced in North Korea.
It increased the retail prices for basic goods,
which in the case of rice meant a nominal
increase of 55,000%. It devalued the North
Korean currency against the U.S. Dollar by
roughly 6,800%. It divided North Korean
society into earners of ordinary and special
wages, with the latter being three times as
high as the former. The procurement price of
rice is now lower than the retail price, i.e., the
state has stopped subsidizing this basic grain.
The results of this price reform are manifold.
They provide strong material incentives for
producers to increase the output of rice;
indicate a strong interest in international
economic exchange; bring the price of rice to
a level comparable with international rates
(about 29 cents per kilogram); point at a
flexible policy towards an increasingly
heterogeneous domestic political scene; and,
last but not least, show the resolve to carry
out a responsible fiscal policy.
Westerners might take all this for granted,
but for a country like North Korea, the
importance of such events cannot be overemphasized. Allowing prices to matter in the
national economy acknowledges their role as
mediators between demand and supply—and
indirectly admits that the state cannot play
this role itself. After various attempts to
increase the output by mass mobilization
campaigns and the like, North Korea has
finally embarked on a road toward market
reforms, supported by an inward-oriented
ideological and an outward-oriented
diplomatic offensive. The dual, hybrid
structure of the North Korean economy,
unofficially introduced since the early 1990s
when farmers were allowed to trade surplus
production on so-called farmers’ markets
(nongmin sijang), has finally been officially
embraced. In an article of February 2002 in
the leading North Korean economic quarterly,
the P'yongyang Kyongje Yon'gu (P'yongyang
Economic Studies), an economist explains
how that is supposed to work:
In the socialist society, the domestic
market is divided into two markets: the
market, which is established based on
the socialist economic forms, and the
farmers’ market.
34
VOLUME 3, NUMBER 4
The author, Yi Chang-hui, claims that the
DPRK is in fact the first country in the world
to understand the true nature of a socialist
economy, hence it is the first country to adapt
this dual structure, which is meant to be only
temporary. The farmer's market is supposed to
function as a supplement to state-controlled
distribution, primarily for agricultural
production-undoubtedly the major economic
concern of the famine-stricken country. Reality
has meanwhile overtaken these theoretical
elaborations. In early April 2003, Ch'oe Hongkyu, a director general of the DPRK's State
Planning Commission, gave an interview to
the Japan-based Choson Sinbo. He announced
that the farmers market is now called just
"market," acknowledging that all kinds of
industrial goods are traded there as well.
Moreover, there are even signs that the DPRK
is preparing for an integration of successful
entrepreneurs into the classless society of
socialism. A truly remarkable, but easily overlooked passage of the aforementioned speech
of Finance Minister Mun Il-bong recalls the
Chinese concept of the Three Represents:
Our people, holding high the Great
Leader's ideology of nation-building
(konguksasang) after liberation, have
built a new democratic Korea upon the
rubbles, those with strength (him) using
strength, those with knowledge (chisik)
using knowledge, and those with money
(ton) using money. (emphasis mine)
"Strength" stands for the workers and peasants, "knowledge" stands for the intellectuals
—all groups well known and represented in
the emblem right on the Chuch'e Tower in
Pyongyang (hammer, sickle, brush). But
"money" is a new component, it stands for
those who excel in economic activities. They
are of course only acceptable if serving the
right purpose. Nevertheless, even though not
even yet visible, successful entrepreneurs are
in the process of being integrated into the
DPRK's social caucus. It is remarkable that
the leveling of the ideological battlefield has
begun so early. Kim Jong Il might be no
Mikhail Gorbachev, nor a Deng Xiaoping, but
the evidence makes it hard to believe he is a
stubborn opponent of reform.
The latest event in this line is the
announcement at the budget session of the
DPRK parliament of the issuance of so-called
People's Life Bonds (inmin saenghwal kongch'ae).
Why would a state like North Korea care
about collecting large quantities of its own
currency? Is it to reduce the debt of the state
at the state-owned banks? Or to convert the
nonconvertible North Korean Won into foreign
exchange on international financial markets?
Certainly not. The only place where one could
use North Korean Won is in North Korea
itself. But the 2003 state-budget is balanced; it
actually carries an unmentioned large surplus
thanks to the elimination of the rice subsidies,
which I estimate at 12-14% of the 2002 state
budget. This is about the percentage by which
the 2003 expenditures are going to be expanded.
It is very likely that the one time extra
revenue created by issuing the bonds will be
used to pay wages until the new price system
functions, i.e., until the producers start selling
their products at the new prices and thereby
create higher revenue to cover their production
costs, including wages and investments. The
same might also be true for the purchase of
other production factors, such as domestic
business-to-business (B2B) transactions,
which, as we know, are to be conducted on
the basis of "costs, prices and actual profits".
If the above is true, it means that the
issuance of the People's Life Bonds is a sign of
a desperate effort to prevent a failure of the
reforms, but also another indicator of the
strong determination of the North Korean
leadership to stabilize their national economy
after the 2002 price adjustments, with the goal
of creating a domestically functioning and
internationally compatible national economy
in the future. The DPRK Central Bank could
simply print money. The only reason not to
do so is that the reforms are for real and
North Korea has decided to explore risky new
ways to create revenue, rather than letting the
reforms be weakened.
If so, how long will the reforms last? The
resolve by North Korea's leaders for "gigantic
change" is obviously very strong. However,
time is crucial. In 2002, something has started
which can hardly be stopped anymore, unless
it either becomes a brilliant success or a
miserable failure. The changes have to produce
results in order to be sustainable. North
Korea has adjusted its distorted price system
and explicitly asks its domestic enterprises to
bring all their transactions in line with very
basic (market) economic principles. The
single production units are supposed to pay
higher wages, to create and negotiate new
B2B relationships, to buy the raw materials
for their production, etc.—all that based on
nominally higher prices.
The problem is that the revenues created
by these transactions will start flowing in
AFTER some initial spending on production
factors like labor, electricity, raw materials,
and so forth. This creates a serious gap, which
must be bridged by loans. If loans are not
available, the enterprises will be technically
bankrupt and not able to pay bills and wages.
As a result, since bankruptcy and the resulting
unemployment, etc., are not acceptable for a
state like the DPRK, these enterprises will be
brought back under the umbrella of the staterun distribution system, which will effectively
mean a failure of the economic reforms and
most likely their end. There are signals that
North Korea is now indicating that exactly
this is happening.
This is a historical chance that cannot be
missed in the interest of the international
community. A collapse of the DPRK attempts
to reform could create yet another humanitarian
catastrophe; it might result in increased and
desperate attempts to make money by trading
arms, drugs, falsified currency, and so forth.
A failure of the proponents of an economic,
i.e., civil attempt to ensure regime security
and prosperity might result in effectively
strengthening the role of the military in
domestic politics and a greater likelihood of
an armed conflict in the region. The latter
would certainly mean the end of North
Korea, but not one that anybody close to
Northeast Asia favors since it contains too
many incalculable risks.
The resulting policy implications are very
simple: First, provide enough food to North
Korea to secure a basic supply for everybody,
until the new incentives for a production
increase in agriculture start to create a larger
output. This could take two or three years.
Distribution should be organized in a way
that is equitable, to ensure that everybody
survives and thereby social stability is
maintained. Second, provide sufficient loans
to North Korean commercial banks to finance
the shortages in cash flow of its state-owned
enterprises, to help them to put their
operations and business transactions on a
solid footing. Third, support any North Korean
request for technical training in the fields of
accounting, fiscal policy, international
finance, and so forth, since the concepts in
question are new and untested in North
Korea so far. There already are very concrete
instances of such programs and new, detailed
training requests by the DPRK have been
submitted to the EU and other members of
the international community.
The timing of events so far is highly
interesting. The reforms went into their hot
phase in July 2002. The two big North Korean
attempts to generate the necessary cashflow
have not been successful. This includes the
hitherto unimaginable event of admitting the
abductions of Japanese civilians and, even more
dramatically, allowing five of them to return
to Japan in early September 2002. Public outrage
in Japan prevented the envisioned normalization
and subsequent payments. Not too long after
that became clear to the decisionmakers in
Pyongyang, in early October 2002 they
approached the remaining potential source of
the needed huge funding, i.e., the U.S. Since
time was running out—the reforms had
already started—the form of dialogue was
very straightforward: We have the bomb, and
you better buy it. Unfortunately, it seems that
Washington is ready to call Kim Jong Il's
35
VOLUME 3, NUMBER 4
bluff. No tangible result has been achieved so
far, nor have ways to transfer significant
amounts of cash to the DPRK been worked
out. The clock continues to tick for North
Korea. Now, about ten months after the price
reforms, the air becomes thin and time
threatens to run out.
North Korea may have played its last card
in this game—which does not have to be its
last—by indicating it is a nuclear power
during the talks in Beijing in April 2003.
Ignoring this means two things: (1) Missing a
great chance to support reform in North Korea
and everything that is connected to such a
peaceful, gradual and indigenous scenario;
and (2) forcing the country to indeed produce
the A-bomb in lieu of any other bargaining
chip. Neither option is desirable.
The upcoming summit meeting between
Presidents Roh Moo-hyun of South Korea
and George W. Bush of the United Sates next
week might be the last chance to make a
courageous decision: Showing the moral
superiority we claim to possess and helping
the DPRK to become more responsible and
more internationally compatible. Giving
them a fair chance to change themselves
would produce a much more sustainable
result than a change induced from the outside. Showing the necessary patience and
supporting such a development would be
truly worthy of a superpower and might give
the United States a good part of its lost international reputation back. Seen from a business
perspective, instead of hoping that American
companies would make lots of money from
rebuilding a country after a war, why not
participate in reconstruction right away,
before physical and political damage has been
done? And wouldn't a peacefully unified Korea
be much more likely to welcome a continuation
and deepening of the alliance with the United
States than a war-devastated peninsula?
We are running out of time. Recent
evidence like the March 21 and April 3 special
policy statements (see http://www.nautilus.
org/pub/ ftp/napsnet/special_reports/Military
FirstDPRK.txt) as well as unofficial reports
indicate that leaders in Pyongyang are ready
to acknowledge the failure of the reforms. But
the chance is real, and it will be gone very
soon. The summit meeting in Washington
next week might be the last opportunity to
send the right signals to Pyongyang.
Increasing the pressure on North Korea by
more sanctions, or even by doing nothing,
would run against our interests and those of
the people in the region.
l-r: Mrs. Ra-Hee Hong Lee, General Raymond G. Davis, Mrs. Margaret Gregg, Amb. Thomas S. Foley, President Roh
Moo-hyun, Minister Yoon Young-kwan and Arthur F. Ryan listening to Mr. Kun-Hee Lee’s introductory remarks.
2003 Annual Dinner
THE KOREA SOCIETY
2003
Annual
Dinner
Over 850 guests attended the 2003 Annual Dinner of
The Korea Society, which was held in the Grand Ballroom of The Pierre. The co-chairs of the dinner were Mr.
Kun-Hee Lee, chairman & CEO of Samsung Electronics
Co., Ltd., and The Honorable Robert E. Rubin, chairman of Executive Committee of Citigroup, Inc.
The guest of honor for the event, His Excellency
Roh Moo-hyun, president of the Republic of Korea,
delivered the keynote address. (For an excerpt from
President Roh’s address and other dinner texts, see
“On the Record” on page 62.).
The 2003 Van Fleet Award was bestowed on
General Raymond G. Davis USMC (Ret.). General
Davis' service in World War II earned him the Navy
Cross and the Purple Heart. In May of 1949 he served
as inspector/instructor of the 9th Marine Corps Reserve
Infantry Battalion until departing for Korea in 1950.
While in Korea, Davis commanded the 1st Battalion,
7th Marines, earning two Silver Stars, a Legion of Merit
and the Nation's highest decoration for heroism, the
Medal of Honor.
The evening's program also included a message
from His Excellency Kofi Annan, the secretary-general
of the United Nations. The message was delivered
by The Honorable Maurice Strong, under-secretarygeneral & special adviser to the secretary-general for
the Korean Peninsula.
Musical interludes were performed by soprano
Hei-Kyung Hong, accompanied by Stephen Eldridge,
and the International Sejong Soloists.
Mrs. Roh and President Roh receiving Amb. Thomas S. Foley.
The Hon. Peter G. Peterson, Mr. Kun-Hee Lee and Amb. Donald P. Gregg
36
VOLUME 3, NUMBER 4
Dinner Committee
B E N E FA C T O R
MAURICE R. GREENBERG
American International
Group, Inc.
Dinner Support
ROBERT E. RUBIN
Citigroup Inc.
B E N E FA C T O R
American International Group, Inc.
Citigroup Inc.
Hyundai Motor Company
Korea Life Insurance, Hanwha Group
LG Corporation
Poongsan Corporation
POSCO
Samsung Electronics Co., Ltd.
SK Telecom Co., Ltd.
Tong Yang Cement Corporation
MONG-KOO CHUNG
Hyundai Motor Company
Kia Motors Corporation
SEUNG YOUN KIM
Korea Life Insurance,
Hanwha Group
General Raymond G. Davis, President Roh and Amb. Donald P. Gregg
JIN ROY RYU
Poongsan Corporation
PAT R O N
Fairfax, Inc.
Foley & Lardner
General Motors Corporation
Hyosung Corporation
KU-TAEK LEE
POSCO
KUN-HEE LEE
Samsung Electronics Co., Ltd.
KIL-SEUNG SON
SK Telecom Co., Ltd.
SPONSOR
Amkor Technology, Inc.
The Boeing Company
Kolon
KPMG LLP
Lehman Brothers
LG-Caltex Oil Corporation
Prudential Financial, Inc.
Raytheon Company
Simpson Thacher & Bartlett
Warburg Pincus LLC
Westinghouse Electric Company
JAE-HYUN HYUN
Tong Yang Cement Corporation
PAT R O N
JAMES F. DOWD
Fairfax, Inc.
The Hon. Robert E. Rubin
The Hon. Maurice F. Strong
GRACE PARKE FREMLIN
Foley & Lardner
WALTER G. BORST
General Motors Corporation
SUK RAI CHO
Hyosung Corporation
YOUNG H.T. CHO
DONOR
Deloitte & Touche, LLP
The Federation of Korean Industries
Goldman Sachs & Co.
Kim & Chang
The Korea Chamber of Commerce and Industry
The Korea Securities Dealers Association
Morgan Stanley
SPONSOR
JAMES J. KIM
Amkor Technology, Inc.
PHILIP CONDIT
The Boeing Company
NICHOLAS BRATT
CONTRIBUTOR
Davis Polk & Wardwell
Deutsche Bank Securities Inc.
Korean Consulate General
Korea Exchange Bank
Korea International Trade Association
Korean Bankers Association in New York
New York Society of Korean Businessmen, Inc.
Permanent Mission of the Republic of Korea to
the United Nations
PGP Capital Advisors, LLC
SK USA
UBS Warburg
DAVID A. COULTER
Hei-Kyung Hong
WOONG YEUL LEE
Kolon
CHONG-YUN PARK
KPMG
RICHARD S. FULD, JR.
Lehman Brothers
DONG SOO HUR
LG-Caltex Oil Corporation
ARTHUR F. RYAN
Prudential Financial, Inc.
SPECIAL AKNOWLEDGMENT
Additional support was provided by Mark
Gaston, Gaston Capital Management Inc.;
Chong Moon Lee, Ambex Venture Group LLC;
Nathan I. Nahm, Hughes Hubbard & Reed LLP;
Don Sohn, Merrill Lynch.
We gratefully acknowledge in-kind donations
from Johnnie Walker.
BON-MOO KOO
LG Corporation
DANIEL P. BURNHAM
Raytheon Company
PAUL FORD
Simpson Thacher & Bartlett
The International Sejong Soloists
37
VOLUME 3, NUMBER 4
CHARLES R. KAYE
Warburg Pincus LLC
STEPHEN R. TRITCH
Westinghouse Electric
Company
economic reform measures and an accompanying
diplomatic offensive. With the price adjustments
at the core, these developments and their
domestic and international effects were the subject
of a business roundtable luncheon forum
presentation by Ruediger Frank, a visiting
professor at the Weatherhead East Asian
Institute of Columbia University. See page 34
for a short essay highlighting the major
themes of the presentation.
The Korea Discount Examined
Sean Fieler, a general partner at Equinox
Management Partners, L.P. and a general partner of the Kuroto Fund, discussed the “Korea
discount” at a business roundtable luncheon
forum. His primary goal was to suggest an
answer to the question: “Why do Korean
stocks trade at such low valuations relative to
their peers in the Asia Pacific region?”
That Korean stocks are cheap is not a
difficult case to make, he said, and those who
deal with Korean stocks on a daily basis risk
becoming desensitized to the low valuations
in which they trade. To allow the issue of the
valuations to recede into the background is to
do Korea a disservice in that there are very
real costs associated with the particularly low
valuations in which Korean stocks trade; and
we should be working toward a solution to
this persistent problem.
Fieler quickly eliminated some of the more
popular theories explaining the reasons why
Korean stocks trade so cheaply. One theory,
the recent tension with North Korea, could
not be the basis, simply because the Republic
of Korea had been trading at a low discount
for such a long time. The rationale pertaining
to Korea’s very high real interest rates, while
a distinct possibility in the past, can not be
substantiated either, for Korea’s long-bond is
currently under five percent and inflation is
between two-and-three percent. Consequently,
current real interest rates are currently low—
not high. Leverage, a common and perhaps a
partially valid explanation in the past, can no
longer be considered plausible either, for the
cheapest Korean stocks are those with the
best balance sheets.
What, then is the reason for the “Korea
discount”? The answer, according to Fieler, is
corporate governance. “Specifically,” Fieler
stated, “I’m talking about controlling shareholders who treat publicly-held corporations
as their personal possessions.” In closely held
companies, Fieler explained, a constant concern
was that the controlling shareholders would,
either implicitly or explicitly, expropriate the
holdings of minority shareholders.
What is the importance of corporate
governance in Korea and the Asian region? In
a recent study performed over a three-year
period, McKinsey interviewed hundreds of
Sean Fieler
institutional investors that controlled trillions
of dollars in assets. McKinsey asked: “How
important is corporate governance compared
with financial issues when evaluating Asian
countries?” Eighty percent of the respondents
stated that corporate governance issues
ranked of equal or of greater importance than
financial ones.
Fieler asked whether or not the corporate
governance shortcomings were unique to Korea
in the Asian region, and whether or not there was
a methodology for measuring this factor. He
cited another recent study coupled with a report
produced by CLSA Asia-Pacific Markets that
ranked Korean corporate governance as the best
in Asia for 2002. Moreover, the measured yearon-year improvement from 2001 to 2002 showed
a marked improvement of 23.7 percentage points.
Does the CLSA data refute the argument
that corporate governance is the foundation for
the “Korea discount”? It stands to reason that if
there was a real improvement in corporate governance, then the “Korea discount” also would
have improved. However, this has not occurred.
In exploring this seemingly contradictory
phenomenon, Fieler examined the five-year
average dividend pay-out ratio for the onehundred most profitable companies in each of
the Asian countries, excluding Japan. Korea
had the lowest payout ratio, i.e., 10 percent
and Hong Kong, the highest at 38 percent.
“Dividends” he explained, “are an admission
that the company is not the private property
of the controlling shareholder. So if we had a
real improvement in corporate governance,
this improvement should have had an effect
on dividend pay out ratios.” This has not
occurred either.
The problem, according to Fieler, is that
truly independent boards of directors do not
exist. “There is nothing that I know of in
Korea’s rigidly hierarchical culture that will
legislate independent boards who can tell the
patriarchs of these companies what to do.”
In other words, Fieler believes, corporate
governance conflicts with corporate culture.
As a case in point, Fieler asked: “Is the
board of Samsung Electronics really going to
tell Kun- Hee Lee, ‘If you cannot gain the confidence of the investment community, I think
38
VOLUME 3, NUMBER 4
the best way to maximize shareholder value is
to sell the firm’? Or, is the board of the Lotte
Group, going to tell Koo Ko Shin, ‘Your son’s a
bit of a playboy we don’t think he should take
over’?” This is “almost laughable,” he said.
What’s the solution? According to Fieler,
making corporate governance “less important”
would prove to be the best way.
While it seems hypocritical for an institutional
investor to make such a suggestion, Fieler did
have an explanation and a methodology. Since
the onset of the economic crisis in 1997, corporate
governance has improved drastically in Korea
—these improvements are reflected in the CLSA
study. For example, Korea has mandated codes
of best practices, mandated independent
directors and mandated audit committees. The
impetus for all of these improvements has been
Korean government regulation; however, to
date, the government has not mandated payout ratios. Hence, Fieler suggested: “The
Korean government should revamp the codes
which discourage the distribution of earnings
and thereby increase pay-out ratios. This would
make it clear that publicly traded corporate
shares are owned by all their shareholders—
and not just the controlling ones.” He cited
Taiwan as the model for this approach to
ending the “Korea discount.”
Korea Senior Management Conference
June 16 • New York, NY
The Federation of Korean Industries and UBS
Warburg cosponsored a one-day conference
in cooperation with The Korea Society that
featured presentations by top management
and IR representatives of Korea’s top blue chip
corporations. The topics explored included an
overview of investment opportunities in
Korea as well as an analysis of the outlook
and potential of major Korean firms. Keynote
addresses were delivered by Okyu Kwon,
senior secretary to the president for national
policy, and Ki-moon Ban, advisor to the
president for foreign policy.
From Seoul to Wall Street: Grappling
with Change, Seizing Opportunities
Charles R. Kaye, the co-president of the private
investment firm, Warburg Pincus, LLC, spoke
at a business roundtable luncheon forum on
the topic of investment opportunities in
Korea. He initiated his presentation by stating
that when Warburg Pincus arrived in Asia, it
was actually illegal for a foreign investor to
make the types of investments that his firm
wanted to make. The financial crisis that
commenced in 1997 drastically changed that
situation. Today, Korea is a “compelling”
place for investors to be. To date, Warburg
Pincus’ investments in the Republic of Korea
have been in the range of US$ 300 to US$ 400
million. According to Kaye, both from Warburg’s
Charles Kaye
perspective and from the perspective of
investors in general, Korea has been a
“remarkable” story of transformation in a
remarkably short period of time.
What is Korea going to be about in another
generation? One of the determining factors is
the path Korea chooses to take in furthering
its transformation into a market economy.
Along these lines, a second factor pertains to
how Korea will build its domestic economy
around the successes that it has achieved to
date from its export-driven model. The outcome will be revealed in Korea’s growth rates.
“Will Korea’s future sustainable growth rates
be in the neighborhood of five-to-six percent
or half that?” Kaye asked.
Kaye stipulated that neither the geopolitical
nor the North Korean situation would be
included in his presentation; rather, he would
discuss the significance of the structural
changes effectuated by the crisis, with a view
toward what Korea needed to do to evolve further into a market economy. He analyzed what
he termed the “challenge for Korea’s future”
from the perspective of the four economic segments: financial, public, corporate and labor.
The fact that Korea has accomplished a
great deal in cleaning up its financial system is
common knowledge; it is also common knowledge that there is still more to do. A casein-point is that most banks in Korea still operate
on a “substandard scale” relative to the global
system. Kaye suggested that the bigger issues
at the moment pertained to improving both
capital allocation and access to credit. Here,
he implied that Korea needed to improve its
system to render credit more readily available
for individuals and small businesses.
With regard to the public sector, Kaye stated
that the role of the government in Korea was
tantamount to Korea’s future. Here again although considerable progress had been made,
Kaye opined that the Korean government still
needed to move further away from an “outcome-determinant” basis to a more “rulebased regulatory” one. In other words, in the
past, the Korean government solely determined the size of a specific market, which
companies would participate in that market,
and what their respective market shares
would be. According to Kaye, the government focus should instead be on providing a
broad-based set of rules, and on dealing with
abuses in the marketplace when they occur.
On the corporate front, Kaye made the
point that the nation’s chaebol were a “natural
outgrowth” of both restricted access to capital
and the government-planning mindset. He
compared the chaebol with the Robber
Barons in the United States and asked: “How
many corporations are there in the United
States today that were once family-owned
and are currently owned and operated by the
third generation of the family?” The answer is
“very few.” His point was in effect, things
change, or, in his words, “time heals.”
In the area of labor, Kaye stated that limited
progress had been made, and that “it is quite
clear” what issues need to be addressed. But
he did not elaborate on those issues.
From the perspective of an investor, Kaye
remained optimistic. He complimented Korea
on its ability to manage and emerge from a
crisis. He noted that in a very short time, i.e.,
30 years, Korea was transformed from a
developing nation into one of middle-income
status. “This kind of transformation is seldom
observed in the spectrum of a lifetime,” he said.
When asked about the problems and risks
that an investment firm such as Warburg
Pincus had encountered in Asia and in Korea,
Kaye mentioned two: exit strategies and “people factors.” Regarding the former, Kaye stated
that exit strategies were always an underlying
concern. With regard to the “people factors,”
Kaye stated that there were no perfect criteria
defining what constitutes an “exceptional
management team.” However, Warburg
Pincus is finding that today—when compared
to five years ago—more and more people have
both the entrepreneurial mindset coupled with
a past experience of success. These are the
“people factors” that Warburg looks for when
taking the decision to make an investment.
When asked whether or not sovereign credit
ratings affected Warburg Pincus’s decisions
on whether to invest in a country or not, the
answer was: “They do not.”
It was an interesting—and an ironic
coincidence—that the co-president of Warburg
Pincus spoke on the same day that his firm
pulled out of the bid to purchase Korea’s
Chohung Bank. A Wall Street Journal article
published online that very morning quoted
an executive at Warburg Pincus as saying:
“We are no longer in talks with Shinhan and
won’t be involved in Shinhan’s bid to acquire
Chohung Bank.” When asked to comment on
this situation during the Q&A session, as well
as privately after the presentation, Kaye
opted out, stating that he was “not at liberty
to make any comments at this time.”
Wednesday, June 18, 2003, was also the day
that some 7,000 Chohung employees went on
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VOLUME 3, NUMBER 4
strike to protest the Korean government’s plan
to sell Chohung to Shinhan Financial Group.
KOREAN STUDIES
“Getting to Know Korea”:
An In-Service Course
March 1, 8, 15, April 5, 26 • New York, NY
An intensive, in-service course was offered
for K-8 teachers in the greater New York City
area as a general introduction to Korea. The
program drew an enrollment of 23 teachers.
To fulfill the requirements of the course, the
participants were required to complete
extensive readings and to prepare three lesson
plans in lieu of a final examination. Those who
successfully completed all course requirements
were awarded three graduate credits by the
New York City Board of Education.
As the course was designed to facilitate
teaching about Korea at the lower grade levels,
special emphasis was placed on providing handson experiences in the areas of Korean art, dance,
painting and calligraphy. The program also
included a Korean cooking demonstration.
The lecture topics and instructors were as
follows: “History” by Charles Armstrong,
associate professor of history and director of
the Center for Korean Research, Columbia
University; “Geography” by Mark Bokenhauer,
professor of geography, St. Norbert College;
“Hangul: the Korean Writing System” by
Shin-Hark Suk, Korean language instructor at
The Korea Society; “Folktales” by Heinz Insu
Fenkl, director of the Creative Writing
Program & director of the Interstitial Studies
Institute, State University of New York at
New Paltz; “Storytelling in Class” by Cathy
Bokenhauer demonstrating the teaching of Korean geography.
Introducing Korean Traditional Music:
An On-Going Lecture Series for
American Colleges and Universities
The renowned Korean American composer
and komungo virtuoso Jin Hi Kim presented six
programs to complete the 2002-2003 cycle in
an on-going series introducing the distinctive
features of the Korean musical tradition to
diverse audiences on college and university
campuses across the country.
The programs available for presentation at
the discretion of the venue are: Introduction to
Korean Music: Melding Memory, Heritage &
Passion (A); The Elements and Characteristics of
Korean Music for Ethnomusicology Classes (B);
and Composition Seminar: "Living Tones" (C).
2002
December 3 • Edinboro University, (PA) • A
December 4 • Kent State University, OH • C
2003
February 21 • Williams College, MA • A
March 7 • Moorpark College, CA • A
March 14 • California State University at
Sacramento, CA • A
March 18 • Simpson College, CA • A
Imagining and Documenting
the Lives of Asian American Women:
An On-Going Lecture Series For
American Colleges And Universities
The award-winning Korean American filmmaker Yunah Hong presented three programs
during spring 2003 in a new series of outreach
programming on college and university
campuses inaugurated in fall 2002.
The series explores the lives of Asian
American female artists through a screening
and discussion of one of Hong's two documentary
films: Between the Lines: Asian American
Women's Poetry (A) and Becoming an Actress in
New York (B).
March 21 • Binghamton University, NY • A
May 1 • University of Delaware, DE • A & B
June 13 • Queens College, CUNY, NY • A
Excerpt from a review of the program at the
University of Delaware:
The first of two documentaries Hong presented on
Thursday was "Becoming an Actress in New
York," which follows three Korean American
women who aspire to become famous actresses.
However, for Esther Chae, Vivian Bang and Jina
Oh, the chances of succeeding in show business
are unlikely because of their ethnicity. Jadin
Wong, a talent agent who represents the likes of
John Lone ("The Last Emperor"), comments in the
documentary that Koreans are not good actors
because they are busy making money running
convenience stores.
While Wong comes across as half-serious in her
statement, her words brings up a harsh reality presented in the type of roles Asian American actors
are receiving. One of the clips Hong incorporates
in the documentary is from the HBO miniseries
"The Corner" in which Bang plays a convenience
store clerk. "Sometimes the casting director thinks
it doesn't matter if you are Chinese or Japanese. If
they look [to the director] like a Korean grocer,
they can play the part," Hong says during the
question and answer session after the screening.
Hong adds that she didn't have quite as difficult
a time finding work as a filmmaker as the actresses
in her documentary do. "Filmmakers are sort of
different. For an actress, people have a very fixed
image of who you are and sometimes, in this
country, you can't really go beyond [that image].
"Right now, Asian Americans are less than 5
percent of the total population in America, but
when you think about how much representation
[Asian Americans have] in the media and TV, it's
much less than 5 percent." However, she also
gladly notes that since the release of "Becoming an
Actress in New York," the three women have
relocated to Los Angeles to actively pursue careers
in television and film. Hong says that Oh
recently scored a role in an upcoming futuristic
version of ABC's hit drama "NYPD Blue" titled
"NYPD Blue 2069."
Hong [left]… the lecture hall only to return later
in the evening to show "Between the Lines: Asian
American Women's Poetry," her latest completed
documentary. The film includes commentary and
readings by poets not just from China, Japan and
Korea, but from countries such as India and
Vietnam. One of the poets, Staceyann Chan, is
half-Jamaican and half-Chinese.
In order to "help the audience understand the
poems," Hong uses montages and archive photos
and drawings to accompany the reading of the
poems. For example, in Marilyn Chin's reading of
her poem, "Blues on Yellow," Hong incorporates
photos of Chinese slaves/immigrants who worked
on the railroads, illustrations and political posters,
which propagate Chinese stereotypes.
Chin's poem is one of 16 chosen among 30
poets that were interviewed for the film. "With a
piece like this, you can't please everybody," Hong
says. "For me, some stories were more interesting
than others. I'm not making a documentary about
who is a better writer than others." - Jeff Man (cf.
www.review.udel.edu/archive/2003_Issues/0
5.06.03/article.php?sect)
Shin-Hark Suk (top); Heinz Insu Fenkl (bottom)
Spagnoli, a professional storyteller from
Seattle, WA; “Calligraphy & Painting” by
Grace Park, an independent artist from
Potomac, MD; “Holidays & Festival through
Traditional Dance” by In-Young Sohn, a
professional dancer from Seoul, Korea;
“Hand- craft” by Kyungwon Ahn, an independent artist from Bronx, NY; and “Culture
& Society” by Linda Lewis, professor of
anthropology, Wittenberg University.
I found the solution [to my need for Korea-related
instructional materials] in The Korea Society’s
For further details on the programs in both
of these series, visit www.koreasociety.org.
Cathy Spagnoli (top); Grace Park (bottom)
40
VOLUME 3, NUMBER 4
explained their origins, and taught us how to become
more effective storytellers with body gestures and
hand movements. I was so excited about this
lesson that I immediately shared it with my sixth
grade students. I incorporated the Korean stories
into a unit on folktales we were completing, and
my students were fascinated with the creative
“trickster” stories and stumped by the riddles.
After the lesson, two of my Korean students
thanked me for including their culture in my
lessons. My students’ fascination with this vastly
underrepresented culture in today’s educational
curriculum has motivated me to continue learning
more about Korea in order to share it with them.
—Angela Becker, Memorial Junior School,
Whippany, NJ
School Visit Program:
Brush Painting and Calligraphy
March 13–14 • New York, NY
Kyungwon Ahn (top); Linda Lewis (bottom)
“Getting to Know Korea” course. We analyzed
Korea’s geography, climate, population, and
economic status with beach balls. We learned
about the history of Korean writing and language.
Rather than simply studying the history of Korean
macramé, maedup, we learned to create our own
crafts. Furthermore, we learned about the history
and symbolism of Korean dance by actually doing
the dances.
As a reading teacher, my favorite activity was
learning about Korean folktales from a well-known
Seattle storyteller, Cathy Spagnoli. She gave the
participants copies of her tapes, told us stories,
Award-winning artist and calligrapher Grace
Sunsook Park visited Mott School and Marymount School in Manhattan to conduct a
workshop on brush painting and calligraphy.
An experienced presenter on Korean art, Park
provided her students with Korean rice
paper, brush and ink and led them in an
exploration of the Korean tradition of painting
and calligraphy. She began by giving a brief
overview of the historical background of the
two forms of Korean traditional art and then
demonstrated the technique of painting and
writing with the brush. The students were
given the opportunity to paint their own nature
scenes and write their names in Korean script.
All participants in both workshops were delighted
with what Mrs. Park taught them. They left the
sessions with an understanding of Hangul (Korean
writing) and were proud of the paintings they
were able to make and take with them. Mrs. Park
congratulated them on the quality of their work.
-Barbara Ledig-Sheehan, art teacher,
Marymount School
School Visit Program:
Storytelling as a Teaching Tool
March 13–14 • New York, NY
Professional storyteller Cathy Spagnoli visited
Martin Van Buren High School and Bayside
High School in Queens to demonstrate how
The chef at The Korea Palace demonstrating Korean cuisine.
Grace Park
41
VOLUME 3, NUMBER 4
storytelling can be used to teach students about
Korea’s history and culture. Spagnoli started
each session with a personal introduction on
how she became a storyteller, and how this
profession led her to her interest in Korean folktales in particular. Following the introduction,
Spagnoli shared small teaching tales about
famous characters, like the secret royal inspector
Hwang Hui or the wise monk Muhakdaesa.
Since all ages love tricksters, she introduced
Kim Sondal (who “sold” a river to trick rich
men) and read a clever poem from the “rainhat poet,” Kim Sakkat. A favorite of the students was the ghost story of the pheasant who
saved a man’s life by sacrificing her own.
Spagnoli also read pieces from the memoir,
Quiet Odyssey, by Mary Paik Lee.
My favorite character was the storyteller herself.
-Kwasi West, student,
Martin Van Buren High School
“Buddhism in East Asia”:
An In-Service Course
March 22–May 21 • New York, NY
The Korea Society and the Japan Society
jointly offered an in-service course on the riches
of the Buddhist traditions of East Asia. The
course was a collaborative project scheduled
in conjunction with a major international
exhibition titled Transmitting the Forms of
Divinity: Early Buddhist Art from Korea and
Japan. Teachers of many disciplines, including
art, social studies, literature, ESL and special
education were enrolled in the course.
The course met on five successive
Saturdays over a two-month period. Each
session included a lecture in the morning
followed by a field trip in the afternoon.
Participants were required to do extensive
background reading on the history of
Buddhism and its impact on the religious and
artistic heritages of the countries of East Asia.
Special attention was paid to the transmission
and transformation of early Buddhist culture
in Korea and Japan.
Lectures were given by the following
individuals: Paul Watt, professor and director
of Asian studies at DePauw University, who
introduced the life of the historical Buddha,
the Four Noble Truths, and the Mahayana;
John Goulde, professor of religion, Sweet Briar
College, who helped teachers to trace Buddhism
from India through China to Korea and Japan,
and discussed the incorporation of Buddhism
into native religions in Korea and Japan;
Ryuichi Abe, professor of Japanese religions
and East Asian studies, Columbia University,
who provided a comprehensive survey of
Buddhism in Japan and also discussed Esoteric
Buddhism, Zen and Pure Land Buddhism;
and Jonathan Best, professor of Asian art,
Wesleyan University, who discussed the
impact of Buddhism in art from India
through China and into Korea and Japan.
The afternoon field trips included visits to
the Metropolitan Museum’s extensive Asian
collection of religious art; a Chinese Buddhist
Temple in Chinatown, The Village Zendo, a
Japanese Zen Dotoku-ji (True Expression
Temple); and a Korean Zen Buddhist Temple.
In addition to these field trips, slides provided
by the lecturers helped participants to visualize
temples and religious artifacts from Korea
and Japan.
School Visit Program: An Introduction
to Korean Traditional Dance
April 3–4 • New York, NY
In-Young Sohn, a Seoul-based choreographer
and dancer, conducted a school visit program
at the Shakespeare School in the Bronx and
the Professional Performing Arts High School
in Manhattan. As part of the program, Sohn
performed the following Korean traditional
dances: taep’yungmu (peace dance), changgo
chum (drum dance) and sogoch’um (small drum
dance). Afterwards, Sohn led a workshop
introducing various elements of traditional
Korean dance. The workshop also included
instruction in some of the basic movements of
kangkangsullae (folk dance ritual). The program
concluded with the students joining Sohn on
stage to perform the kangkangsullae.
In-Young Sohn is so talented; she truly provided
everyone with a unique and memorable experience.
The sixth grade drama teacher is using some of the
dance movements in a show the children are developing. Not only did the students enjoy dancing, but
they appreciated learning about the culture as well.
- Teri Gindi, drama teacher,
Professional Performing Arts High School
In-Young Sohn
Korea and World History in New York
Schools III: Korean Immigration to the U.S.
A one-day conference for K-12 educators in
the greater New York City area examined the
historical, political and cultural dimensions of
Korean immigration to the U.S. It featured the
following topics and presenters: “100 Years of
Korean Immigration to the U.S.” by Wayne
Patterson, professor of history, St. Norbert
College; “U.S.-Korea Relations: Past, Present
and Future” by Ilpyong J. Kim, professor of
political science (emeritus), University of
Connecticut; and “Korean American
Literature” by Heinz Insu Fenkl, director of
the Creative Writing Program & director of
the Interstitial Studies Institute, State
University of New York at New Paltz.
Patterson traced the history of Korean
immigration to Hawaii, which he said entailed
an influx of 7,500 immigrants beginning in
1903. In June 1905, immigration by Koreans to
Hawaii was prohibited after Japanese Foreign
Minister Komura had brokered a deal with the
U.S. government to keep Korean plantation
workers out of Hawaii. Koreans already in
Hawaii soon began to leave the plantations to
seek employment and businesses opportunities
elsewhere. After the liberation of Korea in
1945, Patterson noted, less than twenty percent of the immigrants returned to Korea. The
second wave of Korean immigration to the
U.S. began in 1965, when the immigration
laws were reformed. Once again, immigration
to the U.S. served as an outlet for Koreans
chaffing under political and economic hardships in Korea.
Kim gave an overview of the relationship
between Korea and the U.S. from the late 19th
century through the early 20th century,
describing major landmark events including
the General Sherman Incident in 1866, the
1882 Treaty of Amity & Commerce; the TaftKatsura Treaty of 1905; and the Japanese
annexation of Korea in 1910. He also discussed
the role played by U.S. missionaries in Korean
immigration. In describing the early Korean
American community, Kim noted that it was
united around the common goal of attaining
freedom and independence for their colonized
homeland. At the same time, he said, the early
Korean American community demonstrated
a strong attachment to their adopted homeland as evidenced by their record service with
distinction in the Armed Forces of the U.S.
during World War I, World War II and the
Korean War. According to Kim, like waves of
immigrants to the U.S. before them, Korean
Americans have taken root and thrived in the
U.S. This outcome has been made possible by
strong family ties, robust community support
and countless hours of hard work.
Heinz Insu Fenkl spoke about the contributions
of leading Korean American writers including
Young Hill Kang, The Grass Roof (1931) and
East Goes West (1937); Richard Kim, The
Martyr and Lost Names (1998); Ronyoung Kim,
Clay Walls (1986); Chang Rae Lee, Native
Speaker (1995); Nora Okja Keller, Comfort
Woman (1998) and Fox Girl (2003); Helen Kim,
The Long Season of Rain (1996); Mira Stout, One
Thousand Chestnut Trees: A Novel of Korea
(1998); Susan Choi, The Foreign Student (1996);
42
VOLUME 3, NUMBER 4
Ilpyong Kim (top); Wayne Patterson (bottom)
Elizabeth Kim, Ten Thousand Sorrows (2000);
Marie Lee, Finding My Voice (1992); Sook Nyul
Choi, Year of Impossible Goodbyes (1991);
Theresa Cha, Dictee (1982); Gary Park, Rice
Paper Airplane and The Watcher of Waipuna. He
also discussed his own book, Memories of My
Ghost Brother (1997) and its sequel, Skull Water.
2003 Summer Fellowship in Korean Studies
June 23–July 11 • Republic of Korea
The 2003 Summer Fellowship program began
as usual with a half-day orientation session,
which included a visit to a photo exhibition
in a district in the southern part of Seoul by
subway to introduce the fellows to Seoul’s
excellent public transit system.
The following day, the fellows met with
Paul Gilmer, deputy public affairs officer and
Janina M. de Guzman, deputy information
officer, for a discussion of the role of the U.S.
embassy in promoting constructive ties
between the U.S. and Korea. In addition to
U.S.-Korea relations, the discussion ranged over
topics such as the reunion of families divided
since the Korean war, threats to security on
the Korean peninsula, anti-American sentiment,
the redeployment of U.S. forces, etc.
In the evening, a presentation on the topic
of “Korean Family Law” was given by Sonya
Straum. As a long-term resident of Korea, who
has been a volunteer staff member of the Legal
Aid Center for decades and a lecturer on
“Woman and the Law” at Ehwa Woman’s
University in Seoul, Straum offered her perspectives on the changes in attitudes about
marriage, education, job and family observed
among young women in Korea today. She
described her efforts to chronicle the revi-
2003 Summer Fellows
John F. Burke
Winchester High School
Winchester, MA
Donna Treece
Springfield High School
Springfield, IL
Jessica Sandle
Model Secondary School for the Deaf
Washington, DC
Alexander Shuhgalter
Palisades Charter High School
Pacific Palisades, CA
Alicia Fuentes
Charles Sumner School
Roslindale, MA
Carolyn McNulty
San Franscisco University High School
San Francisco, CA
Celeste Freeman
Hastings Elementary School
Lexington, MA
Richard Girling
Lowel High School
San Francisco, CA
Brian H. Cushing
Lake Region High School
Naples, ME
Thomas W. McMurry
Milpitas Community Day School
Milpitas, CA
Judith Schumer
Leonia Middle School
Leonia, NJ
Noren Lush
Education Laboratory School
University of Hawaii
Honolulu, HI
Elizabeth Rice
High School of American Studies
at Lehman College
Bronx, NY
Florence (Barbara) Sohler
St. Mary of the Valley School
Beaverton, OR
Aidamelia Espaillat
Chester Elementary School
Chester, NY
Carolyn McCrea
Sunrise High School
Clackamas, OR
Sharon M. Russo
Edward R. Murrow High School
Brooklyn, NY
Joseph R. Gotchy
Thomas Jefferson High School
Auburn, WA
Matthew J. Manfredi
Greenport Public Schools
Greenport, NY
Jesus Garcia
College of Education, University of Kentucky
Lexington, KY
Lisa S. Pupo
Spring-Ford High School
Roystersford, PA
Julia C. Brown
Whitman-Hanson Regional High School
Whitman, MA
sions made in the Korean legal system over
the years, which have enhanced human rights
and provided greater protections for the family in contemporary Korea. Straum also
spoke of the efforts to promote a better
understanding and appreciation of the significance of the legal system for all members
of the family.
From June 25 to July 9, the fellows
participated in an intensive workshop at
Korea University. The workshop consisted of
a mix of lectures and field trips to places of
educational interest. Specifically, the lecture
topics covered history, culture, language,
literature, geography, religion, economy, society,
politics, art, architecture, the educational
system, the family system and inter-Korean
relations. Field trips in the general vicinity of
Seoul included visits to the National
Museum, the Korean Traditional Performance
Theater in Chongdong, Daeil Foreign
Language High School, the Insa-dong
District, Changdok Palace, the Korean Family
Culture Institute and the Folk Village. There
also was a tour of Panmunjom, which is in the
DMZ, and a home visit.
The program also included the usual tour
to points of special interest in the southern
half of the Korean peninsula. The tour
extended from July 4 to July 7, and consisted
of visits to Haein Temple and Kyongju. Visits
to other sites such as Yangdong Village and
the Ocksan Confucian Academy had to be
canceled due to heavy rainfall. While in
Kyongju, however, some of the fellows hiked
up Mt. Namsan, the location of a UNESCO
world heritage site renown for its many
Buddhist images that have been carved into
the stone of the mountain.
On Wednesday, July 9, the fellows held a
dialogue with six Korean social studies educators.
The discussion ranged over issues such as
assignment and assessment methods, the
designing of an integrated social studies course,
vocational and alternate school systems, etc.
After spending a day on independent
study and research, the fellows departed for
the U.S. on July 11.
INTERCULTURAL OUTREACH
PROGRAM (ICOP)
43
VOLUME 3, NUMBER 4
Project Bridge 2002-2003
Eight high school students and one group
leader from the greater New York City area,
along with eight high school students and
two group leaders from the Los Angeles area,
were selected to participate in the Project
Bridge program for the 2002-03 school year.
(For a listing of the participants, group leaders
and program coordinators, see The Korea
Society Quarterly, Vol. 3, Nos. 2 & 3, p. 52.)
Project Bridge activities in Los Angeles are
funded and coordinated by the Pacific
Century Institute, Inc. (PCI), which is The
Korea Society’s counterpart organization for
this program in Los Angeles.
The program included a series of workshops held on a monthly or semimonthly basis
throughout the school year in both locations.
The following are the workshops scheduled
for the participants in New York:
2002
Saigu: A Case Study
December 11 • New York, NY
The focus of this workshop was Saigu, the L.A.
Incident of 1992, which provided the initial
impetus for the Project Bridge program. The
workshop began with a screening of the
documentary Sa-I-gu by Dai Sil Kim-Gibson.
The film presents interviews with Korean
immigrant women directly affected by the uprising. David Ryu, special project coordinator
of the 4.29 (Saigu) Center, facilitated the
remainder of the workshop. Ryu began by
discussing the roots of the conflict among the
communities involved in the uprising. He then
gave the participants the opportunity to
participate in role-play scenarios, which
illustrated the frictions that were occurring
between Korean merchants and Black and
Latino consumers at that time. Ryu rounded
out the workshop by identifying the ways in
which the 4.29 (Saigu) Center and other
organizations are attempting to address the
unresolved issues highlighted by the incident
in 1992. He encouraged the participants to be
proactive, not only reactive, in addressing
l-r: Ebony Blue, Jorge Rodriguez, Nhi Ma, Sean
McManamon (group leader) and Susan Vargas
2003
Seoul Train: Sogo Dance Lesson
The participants gathered at the Lotus MultiCultural Music and Dance Studio in New
York City to study sogoch’um, a small drum folk
dance traditionally performed by farmers.
Song Hee Lee, a long-time performer and
instructor of traditional Korean dance,
facilitated this energetic workshop, leading
the students step-by-step through the elements
of the choreography. By the end of the lesson,
the participants had mastered a passable
performance of the dance, interspersed with
many moments of laughter.
Song Hee Lee (center)
David Ryu
Korea Approaches:
Retreat Focusing on Korea
February 7–9 • YMCA Camp Bernie,
Port Murray, NJ
The participants gathered at Camp Bernie, the
these issues.
Back to Basics: Saigu, Part II
December 18 • New York, NY
Susan Vargas reports on the history of Korean Immigration.
YMCA facility located in Port Murray, New
Jersey, for a retreat that focused intensively on
Korea—its culture, history and contemporary
issues—while leaving time for everyone to
have fun and become better acquainted with
each other. During the first night of the weekend retreat, the participants played icebreaker
games and reviewed the expectations and
guidelines of the upcoming study tour to
Korea. The majority of the weekend was
spent in workshops that covered various
areas of Korean culture, history and society.
Shin-Hark Suk, an instructor of Korean at
Queens College and The Korea Society,
taught the participants the Korean alphabet
(han’gul) as well as a few useful Korean
expressions. Joy Kim, a Ph.D. candidate in
East Asian languages and cultures at
Columbia University, facilitated a discussion
on modern Korean history, a conversation
which merged with a more specific focus on
the current state of relations among South
Korea, North Korea and the United States.
Other workshops focusing on etiquette, food
culture and the Korean education system
were led by the coordinators and group
leader. The students also gave presentations
on topics they had been assigned to research
such as Korean arts, family structure, the
Japanese colonial period and the “Comfort
Women” issue. After a grueling day of
learning, the students were rewarded with a
screening of the Korean blockbuster, Joint
Security Area (JSA), as well as outdoor
activities, such as ice skating and snow tubing.
Project Bridge Workshop:
Exploring Korean History
Frederick F. Carriere, executive director and
vice president of The Korea Society, led an
informal workshop on the history of Korea.
The workshop centered around three main
points: Korea possesses a very complex and
ancient history; Korea was heavily influenced
by interaction with neighboring countries;
and Korea is still developing today. The
workshop concluded with a succession of
maps showing how Korea has changed
geographically since the time of Ancient
Due to the many complex questions raised by
the previous workshop, the participants met
again to review and further expand on the
root causes of the Incident of 1992. This workshop focused primarily on group discussion and
hands-on activities to delve deeper into such
underlying causes as the impact of stereotyping
and racism on interracial relations in
American society.
Nhi Ma, Hoang Nhu Hua,
Jorge Rodriguez and Fitzgerard Restituyo
44
VOLUME 3, NUMBER 4
and discussion of her documentary film,
Between the Lines: Asian American Women’s
Poetry, which is comprised of interviews with
and readings by Asian American women
poets. Hong briefly introduced herself and her
film, stating that she wanted to explore the
ways in which these women’s life experiences
became reflected in their work and how the
written word could be translated into her
medium of film. Hong led the students
through a reading of several of the poems
presented in the film.
Frederick Carriere
Chosun, the first Korean state.
Two Nations, One People
Filmmaker J.T. Takagi screened her documentary,
Homes Apart, in a workshop on North Korea/
South Korea relations. Focusing on separated
families on both sides of the 38th parallel line,
Homes Apart gave a more humanitarian and
personal perspective on the highly politicized
issue of relations between the two Koreas. Rather
than concentrating on the existing tensions,
Homes Apart emphasizes the shared history
and heritage of the Korean people. The workshop ended with an active discussion on the
Information Session for Parents
An information session was held for the parents
of the Project Bridge student participants. As
in past years, the session started with a brief
overview of the Project Bridge program by
Frederick F. Carriere, executive director and
vice president of The Korea Society. HanNa
Kim and Naomi Paik, co-coordinators of
Project Bridge, reviewed various aspects of
the trip including rules and responsibilities,
logistics and the study tour itinerary. The
Q&A session was extremely active this year as
many parents were concerned about the
SARS virus in the Northeast Asian region. All
the parents were relieved to hear that there
were no SARS cases reported in Korea and
the risk of contracting the virus in Korea was
deemed to be minimal.
Study Tour to the Republic of Korea
April 18–28 • Republic of Korea
The New York and Los Angeles Project
Bridge participants met in Seoul for a ten-day,
intensive study tour of South Korea, during
which they had the opportunity to visit many
sites of historical and contemporary significance,
stay with a host family, and engage in open
dialogue with Koreans. Some highlights of
the tour included: a visit to the demilitarized
zone; a cooking lesson held at The Institute of
Royal Cuisine; an opportunity to meet Korean
peers at Banpo High School in Seoul and at the
Seoul Youth Factory for Alternative Culture
(Haja Center), an alternative high school
center; a tour of historical and cultural sites in
Fitzgerard Restituyo at the Korean Folk Village.
J.T. Takagi
possibility of Korean reunification.
Articulating One’s Voice Through Film
During a Project Bridge workshop, filmmaker Yunah Hong facilitated a screening
Yunah Hong
East meets West in Korea. 2002-2003 Project Bridge participants from New York and Los Angeles pose for a
group picture at the Korean War Memorial Museum.
45
VOLUME 3, NUMBER 4
Study Tour Highlights
Friday, April 18, 2003
Tuesday, April 22, 2003
Friday, April 25, 2003
Morning arrival at Incheon International Airport
check-in at Seoul Parktel Youth Hostel
1:00 PM orientation/workshop by the U.S.
Forces, Korea
3:00 PM orientation by the Korean-American
Educational (Fulbright) Commission
6:00 PM dinner & presentation by The Korean
Stock Dealers Association
9:00 PM return to hostel/lights out
10:00 PM lights out
7:00 AM pick up students at Banpo HS/
departure for Ulsan
10:00 AM in-house meeting en route
1:30 PM lunch at Hyundai Hanmeaum Center
2:30 PM tour of the Hyundai Motor
Company plant
3:30 PM tour of Hyundai Heavy Industries plant
5:00 PM dinner at the Hyundai Arts Center
7:00 PM check-in at the Hotel Hyundai in
Kyongju/free evening
10:00 PM lights out
11:00 AM tour and presentation at the Haja
Center in Yongdungpo
1:00 PM Lunch with students at the Haja Center
3:00 PM tour of the National Assembly
6:00 PM dinner hosted by the American
Chamber of Commerce, Korea
8:00 PM return to the hostel
10:00 PM lights out
Saturday, April 19, 2003
10:00 AM
1:00 PM
6:00 PM
8:00 PM
10:00 PM
tour of Hoam Art Museum in Yongin
tour of the Korean Folk Village in Suwon
dinner at the Korean Folk Village
return to hostel
lights out
Sunday, April 20, 2003
8:00 AM depart for Saemunan Church
9:00 AM lecture on Christianity in Korea by
Dr. Horace G. Underwood
10:00 AM Easter Sunday service (optional)
12:00 PM Lunch & tour of the Korean War
Memorial Museum
3:00 PM shopping in Itaewon
6:00 PM dinner hosted by the Poongsan
Corporation at Hanilkwan Restaurant
9:00 PM in-house meeting at the hostel
10:00 PM lights out
Monday, April 21, 2003
6:00 AM check-out of the hostel/
departure for the DMZ
9:00 AM tour of the DMZ
12:00 PM departure for Seoul
1:30 PM presentation at The Korean Council
for the Women Drafted for Military
Sexual Slavery by Japan
4:00 PM Tour of Banpo High School/
homestay with families of Banpo
HS students
Saturday, April 26, 2003
9:30 AM tour of Kyongju
12:00 PM lunch hosted by the Kyongsangbukdo Department of Tourism
1:00 PM visit Chonmachong, Tumuli Park &
the Kyongju National Museum
5:00 PM return to the hotel/dinner/free evening
8:30 PM in-house meeting
10:00 PM lights out
10:00 AM Cooking demonstration hosted by
The Institute for Royal Cusine
12:00 PM Lunch
1:30 PM tour of the Secret Garden (Piwon)
3:30 PM visit to Insa-dong
6:00 PM dinner hosted by the Law Firm of
Kim & Chang
8:00 PM traditional cultural performance at
the Chongdong Center
10:00 PM return to the hostel
11:00 PM lights out
Thursday, April 24, 2003
Sunday, April 27, 2003
9:00 AM check-out of hotel/Kyongju tour (con.)
11:00 AM departure for Pohang
12:30 PM lunch hosted by Pohang Iron &
Steel (POSCO)
1:30 PM tour of POSCO plant
2:30 PM visit to Pohang University of
Science and Technology
4:00 PM departure for Seoul/
in-house meeting en route
8:00 PM arrival in Seoul/check-in at
the hostel/free evening
10:00 PM lights out
10:00 AM tour of historic Seoul hosted by the
Seoul Metropolitan Government (SMG)
12:00 PM Lunch hosted by the (SMG)
1:30 PM tour of historic Seoul (con.)
6:00 PM dinner
7:00 PM return to hostel/pack for departure
10:00 PM lights out
Wednesday, April 23, 2003
Monday, April 28, 2003
10:00 AM check-out of hostel/departure for
Yonsei University
12:00 PM lunch at Yonsei University
1:00 PM lecture on higher education in
Korea & tour of Yonsei University
3:00 PM departure for Incheon International
Airport
Evening arrival in the U.S.
We wish to give special thanks to the following individuals and their organizations:
The study tour was planned and implemented by the program coordinators in New York. As in past years, the success of
the tour was possible solely due to the generous in-kind support and assistance provided by the following organizations
and individuals:
American Chamber of Commerce, Korea (Ms. Tami Overby); Asiana Airlines, Inc. (Mr. Ing Soo Park); Banpo High School
(Ms. Eunye Cheng); COOKAND (Mr. Sung Chul Hong); Haja Center (Kim Hii Ock); Hyundai Corporation/USA (Mr. Seung
Oh Lee); Hyundai Heavy Industries Co., Ltd. (Mr. Jong Hyuck Kim); The Institute for Royal Cuisine (Ms. Hwang HaeSung); The Korea Foundation (Amb. In-ho Lee); Korean-American Educational (Fulbright) Commission (Dr. Horace H.
Underwood); The Korean Council for the Women Drafted for Military Sexual Slavery by Japan (Ms. Yoon Mee Hyang);
The Korean Security Dealers Association (Mr. Ho Soo Oh & Sok-Hun Kang); Kyongsangbukdo Department of Tourism
(Mr. Jae-Sung Han); Law Offices of Kim & Chang (Amb. Hong Choo Hyun); Ministry of Education (Mr. Weon-Il Hong);
The National Assembly (Mr. Joon Kim); Poongsan Corporation (Mr. Jin Roy Ryu); POSCO America Corporation (Mr.
Seong-Yong Shin); Samsung Electronics America, Inc. (Mr. Raymond Yoon); Samsung Electronics Co., Ltd. (Ms. Sukyung
Susan Lee); Seoul Metropolitan Government (Mayor Myung Bak Lee); United States Forces, Korea (Gen. Leon J. LaPorte
& SrA USAF Todd M. McGinnis); Yonsei University (Dr. Horace G. Underwood).
46
VOLUME 3, NUMBER 4
NY Participants discussing their study tour experience.
Reflections: Debriefing of the Study Tour
The participants convened to reflect on their
experiences during the study tour to the
Republic of Korea. The coordinators of the
program led the workshop by positing general
questions to the participants. The questions
focused on the students’ preparation for the
experience, highlights and disappointments,
issues that may have arisen during any part of
the tour, and the ways that they plan to continue
their study of the issues surfaced by their
participation in the program, and especially
during the study tour. The students openly
shared their thoughts, both positive and
negative, about the experience. After sharing
their reflections, the participants were given
essay questions on different aspects of the study
tour. The questions covered a broad range of
subjects, from the effects of industrialization
on the economy and society of Korea to the
highlights and drawbacks of the Korean
educational system. The workshop concluded
with the exchange of photos and the sharing
of memories from the tour.
Highlights from the Project Bridge
Study Tour to Korea
Clockwise from top: The Korea Securities Dealers
Association treat the Project Bridge participants to
dinner at the Sky Lounge on top of the 66 Building—
the tallest building in South Korea.
Denice Gonzalez practices her hand with Korean calligraphy brushes at the Korean Folk Village in Suwon.
Dr. Horace G. Underwood shares his knowledge of
Korea with the Project Bridge participants.
The anticipation of meeting and “hanging out” with
new buddies is palpable.
The participants go on a tour of the Demilitarized
Zone (DMZ), where they are footsteps away from
North Korea.
Kyongju; an educational discussion on
“comfort women” by The Korean Council
for Women Drafted for Military Sexual
Slavery by Japan; and a cultural performance at the Chongdong Theatre. Lastly, the
participants were able to acquaint themselves with each other and to form crosscontinental friendships.
47
VOLUME 3, NUMBER 4
Farewell Dinner
The participants along with family members
and friends came together at a Korean restaurant
in the “Korea Town” district of Manhattan for
a farewell dinner. The participants showed off
their newfound familiarity with Korean food
by demonstrating the use chopsticks to their
family and friends and explaining to them
typical dishes such as bulgoki and dolsot
bibimbap. The dinner served as a very congenial
substitute for the community presentation of
past years by providing the participants with
an opportunity to share their experiences with
their family and friends in a more informal
and intimate setting. The dinner concluded
with the presentation of certificates of merit
to each participant in recognition of the
successful completion of the rigorous program.
THE ARTS
April 9–June 22 • New York, NY
See the portfolio section on pages 54–55.
TKS EVENTS AHEAD
CORPORATE AFFAIRS
SAVE THE DATE
Business Roundtable
The Roh Administration’s Industrial Policy:
Tackling the Economic Challenges Facing Korea
September 17 • 12:00–2:00 PM
335 East 45th Street, Second Floor, New York City
Mr. Jong-Kap Kim, deputy minister for industry, technology and e-Biz
at the Ministry of Commerce, Industry and Energy (MOCIE), will
provide an insider’s perspective on the industrial policy of the current
administration in the Republic of Korea.
An American-trained economist, Kim has more than 27 years of
experience in trade and industry-related functions. He holds an M.A.
in economics from Indiana University, an M.B.A. in international
business/economics from New York University’s Graduate School of
Business Administration and a B.A. in public administration from
Sung Kyun Kwan University’s School of Law in Seoul, Korea.
Kim began his career in 1976 in the Ministry of Trade and Industry.
In 1987, he became the director of the Office
of Public Information of the Industrial
Advancement Administration and was later
appointed director of the United States
Division of the Trade Cooperation Bureau.
From 1983 to 1989, he was an instructor in the
Department of International Business at
Sung Kyun Kwan University’s Graduate
School of International Trade. In 1993, Kim
was appointed secretary-general of the
Industrial Deregulation Review Committee
at the Ministry of Trade, Industry and Energy
(MOTIE). In 1994, he was appointed director
Jong-Kap Kim
of the ministry’s International Trade Policy
Division, and in 1996 he became director of the Americas Division.
Other senior positions held recently include director general of the
Bureau of Bilateral Trade Affairs, director general of the Bureau of
International Trade Relations, director general of the Industrial Policy
Bureau, and director general of the Technology Policy Bureau. Kim
has been serving as MOCIE’s deputy minister since March 2003. For
further information, contact June Mee Kim at 212-759-7525 ext. 28 or
[email protected].
Business Roundtable
The U.S. Equity Capital Markets and Korean Issuers:
How the World Has Changed, New Evidence for ADRs
October 9 • 12:00–2:00 pm
The Korea Society, 950 Third Avenue, Eighth Floor, New York City
After a tailwind during the 1980s and 1990s, the U.S. equity capital
markets have experienced strong headwinds, structural change, harsher
regulation and new challenges since mid-2002. How important is the
U.S. equity market to Korean companies? What are the challenges,
opportunities and costs associated with accessing the market post the
Sarbanes-Oxley Act? What new evidence is available to help frame a
cost-benefit analysis?
These issues will be explored by Mr. Christopher R. Sturdy, the
managing director and head of international marketing of the Global
Issuer Services at The Bank of New York. Sturdy has over 16 years of
experience in bringing companies to the U.S. markets via ADRs, dating
from the time of privatizations in the United Kingdom and Europe
and continuing through the emergence of the Asian, Latin American
and Eastern European markets. He has spent 21 years at The Bank of
New York in both New York and London. A frequent speaker at
industry conferences, Sturdy has written numerous articles on ADRs.
He is a graduate of Duke University. For more information, contact
June Mee Kim at 212-759-7525 ext. 28 or [email protected].
13th Annual Van Fleet Memorial
Benefit Golf Tournament
Monday, September 15, 2003
10:00 am–7:00 PM
Bedford Golf & Tennis Club, Bedford, NY
KOREAN STUDIES
Lectures/Demonstrations
On-Going Series for American Colleges and Universities
INTRODUCING KOREAN TRADITIONAL MUSIC
Ms. Jin Hi Kim introduces American college audiences to the
distinctive energies of Buddhist and Confucian-influenced Korean
court music and the spirit of vigorous Shamanic folk music.
About the Artist
Jin Hi Kim is highly acclaimed as a
komungo virtuoso and for her
cross-cultural compositions, which
she has performed with the
Kronos Quartet and the Lincoln
Center Chamber Music Society.
She is active as one of the leading
compositional voices of a new
Generation East, which is rooted
deeply in the rich Korean musical
Jin Hi Kim
tradition as well as an evolving
distinctively Pan Asian/American compositional approach.
IMAGINING AND DOCUMENTING
ASIAN AMERICAN WOMEN’S ARTS AND LIVES
Ms. Yunah Hong provides a glimpse into the lives of Asian American
female artists through screenings of her feature documentaries. The
program also includes a discussion of the process of filming a
documentary, from conceptualization to editing. Lecture/screening
resources include film/video and printed materials.
About the Artist
Yunah Hong is a New York based
video/filmmaker. She was born in Seoul,
Korea, and moved to New York in 1985 to
pursue her studies in video art. Her
documentary Becoming an Actress in New
York (2000) was nominated for aMedia’s
2001
Ammy
Awards
for
Best
Documentary. Her other works include
Styles Section; Through the Milky Way,
which was awarded First Prize in Video
Art at the 1992 Tam Tam International
Video Festival in Italy; Here Now, winner
of the Special Jury Award at the Second
Seoul Short Film Festival; and a feature
screenplay Monday, which was an official
Yunah Hong
selection of PPP 1998: Pusan International
Film Festival Film Market. She holds a B.F.A. in applied arts from
Seoul National University and a M.A. in communication arts from
New York Institute of Technology. Her works are distributed in the
United States by Women Make Movies.
48
VOLUME 3, NUMBER 4
TKS EVENTS AHEAD
Subsidized Lecture Fees
Each program in this series is copresented by The Korea Society and the
participating institution. As its contribution, The Korea Society covers
half of the presentation fee, the presenter’s long distance travel costs, as
well as all the administrative expenses of the program. The participating
colleges and universities are expected to cost-share the other half of
the presentation fee, and if necessary, to provide one night’s lodging as
well as local transportation. For further information, visit www.koreasociety.org. To schedule a program at your institution, contact June
Mee Kim at 212-759-7525 ext. 28 or [email protected].
Korean Language Program
Placing equal emphasis on speaking, listening, reading and writing,
the Korean language program’s balanced and thorough approach
instills the student with greater understanding and appreciation for
Korean culture. Language courses are offered throughout the year
in five sequential levels and extend over a term of twelve sessions.
Instructors are experienced Korean language teachers with university
affiliations. Fee: $375 (non-members); $350 (members).
SCHEDULE FOR FALL 2003
September 8–December 4
Basic
Tue 6:00–7:45 PM
Beginning I
Tue 7:45–9:30 PM
Beginning II
Thu 6:00–7:45 PM
Intermediate
Wed 6:00–7:45 PM
Business Korean
Wed 8:00–9:45 PM
Summer 2003 Course
“Korea for Beginners”
August 6–12 • 9:00 am–4:00 pm
The Korea Society, 950 Third Avenue, Eighth Floor, New York City
This course will offer a general introduction to Korea for 6–12 grade
teachers and will include a varied program of lectures, classroom
discussions and field trips. Mornings will be devoted to lectures and
discussions on history, language, literature, family and society, arts and
religion. Guided field trips to Korea-related venues and organizations
will be arranged in the afternoons. Participants will be required to
complete extensive daily reading assignments as well as a final
assignment. Participants who satisfactorily complete the course will be
eligible for 3-G credits or new teacher credit from the New York City
Board of Education. For further information about in-service course
opportunities, contact Yong Jin Choi at 212-759-7525 ext. 25 or
[email protected].
* Subject to change
Payment must be received prior to class attendance. Refunds will
not be made for withdrawals after the second class meeting. There
is a $40 service charge for a cancelled enrollment. The Korea Society
reserves the right to cancel any course if sufficient enrollment is not
obtained. In such cases, students already enrolled will receive full
refunds. All classes meet at The Korea Society, 950 Third Avenue,
Eighth Floor, New York, NY 10022. For further information or to
register, contact June Mee Kim at 212-759-7525 ext. 28 or [email protected].
Study Abroad Program
7th Annual Fall Fellowship in Korean Studies
October 5–16 • Korea
A group of American textbook writers, editors and state-level
educational administrators will visit Korea as participants in a
twelve-day docent-led study tour. This program is implemented
annually in collaboration with the Korean Information Service and is
made possible in part by a grant from the Freeman Foundation. All
expenses, including international round-trip airfare, accommodations,
meals and local transportation in Korea, will be provided by The
Korea Society.
The study tour will begin in Seoul with three days of lectures and
field trips. The lectures will be delivered by prominent scholars from
leading Korean universities on topics such as language, art, architecture,
literature, economy and the politics of a divided country. The field
trips during this initial phase of the program will take participants to
places of historical and cultural significance in the Seoul area, including
royal palaces, the royal ancestral shrine and museums. In the second
phase of the program, the participants will travel to various points of
interest throughout the southern part of the Korean peninsula on an
extended docent tour. Dr. Mark Peterson of Brigham Young University
in Provo, Utah, a distinguished expert on Korean history and culture,
will accompany the participants throughout the entire program and
delivered in situ lectures on Korean history, society, literature and the
impact of Shamanism, Buddhism, Confucianism and Christianity on
the Korean people.
Fall Fellows
Dr. Gwen P. Bennett, assistant professor of East Asian Archeology,
Washington University; Dr. Marc Jason Gilbert, professor of history,
North Georgia College and State University; Dr. Nathan Griffith, fine
art editor, Corbis; Dr. Joseph J. Hobbs, professor of geography,
University of Missouri; Dr. David Levinson, president, Berkeshire
Publishing Group LLC; Dr. Deborah J. Milly, associate professor of
political science, Virginia Polytechnic Institute and State University;
Dr. Michael Monhart, audio and video acquisitions manager,
Microsoft Corporation; Dr. Paul B. Watt, professor & director of Asian
studies, DePauw University; Ms. Barbara Winard, senior editor of
Grolier Multimedia Encyclopedia, Scholastic Publishing; Dr. Alan T.
Wood, professor of History, University of Washington at Bothell.
THE ARTS
Film Festival
Secret Wonderland: New York Korean Film Festival 2003
Presented by the Korean Film Forum and Samsung Electronics Co.,
Ltd. and cosponsored by the Korean Cultural Service, The Korea
Society, Korean Film Commission and The Village Voice.
The third annual New York Korean film festival will feature eighteen
of the best contemporary South Korean films with English subtitles.
Under the festival’s theme “Secret Wonderland,” the selected films
cover a wide array of cinematic genres and will show people exploring
unfamiliar and uneasy physical and emotional territories. As a whole,
the festival offers a unique Korean perspective on the universal
experiences of growing up, moving on, falling in love and bidding
farewell. For a complete schedule or further information on the film
festival, visit www.koreanfilmforum.org.
FESTIVAL DATES/VENUES
August 15–21 • Quad Cinema, 34 West 13th Street, New York City
August 22–24 • Brooklyn Academy of Music (BAM) Rose Cinemas,
30 Lafayette Avenue, Brooklyn, NY
Film Descriptions
Ardor (Mirae, 2002)
Directed by Pyon Yong-ju (112 min.,
International premiere)
After her husband’s affair is violently
and harrowingly revealed to her, Mi-hun
and her family move to the countryside,
where she meets In-kyu, a mysterious
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VOLUME 3, NUMBER 4
TKS EVENTS AHEAD
and married doctor. Slowly, she begins hiding things from her husband, lying to him, unconsciously trying to even the score, not just
with her husband, but also with a society and culture that would
accept her husband’s indiscretion and not her own. This beautifully
shot and heart-wrenchingly erotic film is acclaimed documentarian
Pyon Yong-ju’s debut feature.
Bad Guy (Nappun namja, 2001)
Directed by Kim Ki-duk (100 min.)
The thin line between love and hate is
blurred and ruptured when a smalltime pimp from the red light district
comes in contact with an upper class
art student. Rejected and humiliated
in public by the coed Son-hwa, Hangi, the “bad guy,” plots and succeeds
in debasing her physically and mentally. Han-gi’s obsession with Sonhwa intensifies as she not only becomes resigned to her fate but also
grows accustomed to Han-gi’s violence. This controversial film was an
official selection of the 52nd Berlin International Film Festival.
Bet on My Disco (Haejok tisuk’o wang twada, 2002)
Directed by Kim Dong-won (106 min., North American premiere)
In 1982, three high school slackers, Hae-jok,
Song-gi and Pong-p’al, lead lives of aimless
freedom on the outskirts of Seoul. When Pongp’al’s father is injured and unable to work, the
son takes over his father’s job cleaning outhouses while his younger sister secretly works
at a local hostess bar. Once the boys discover
her occupation, they try to save her at all costs,
which ultimately results in a disco contest.
From this simple premise, first-time
writer/director Kim Dong-won fashions a lighthearted but heartfelt anthem to the unparalleled strength and silliness that comes with friendship and true love.
Green Fish (Ch’orok mulgogi, 1997)
Directed by Yi Chang-dong (114 min., U.S. premiere)
Mak-dong returns from his obligatory military
duty to his hometown, which has changed by
Korea’s rapid industrialization. Desperate for
money, direction and acceptance, Mak-dong falls
into the ambiguous graces of a local gangster and
his girlfriend. Showcasing powerful performances
that helped catapult then unknowns Han Sok-kyu
and Song Kang-ho to superstardom, Lee Changdong’s directorial debut, which was a critical and
box office sensation upon its release, presents a
frightening view of contemporary Korean society.
Jail Breaker (Kwangbokjol t’uksa, 2002)
Directed by Kim Sang-jin (120 min., International premiere)
From the director of the hugely successful
action-comedies Attack on the Gas Station
and Kick the Moon comes this new satirical
farce that is soon to be remade by the
Weinstein brothers at Miramax. When a
pair of convicted criminals daringly
escapes from prison in pursuit of love and
life, they discover the free world is much
harsher than their jail cells. After several
mishaps with freedom, the pair decides they are safer in prison and
begin making plans to break back in.
Jealousy Is My Middle Name (Chilt’unun naui him, 2003)
Directed by Pak Ch’an-ok (125 min.)
Winner of the New Currents Award
for the best debut feature at The 7th
Pusan International Film Festival,
Jealousy Is My Middle Name is a slowburning story where Won-sang, a
meek graduate student, apprentices
himself to the charismatic magazine
editor who stole his girlfriend. The young man quickly becomes the
trusted protégé of his ostensible enemy, even when Won-sang loses his
new lover to the same man. A promising debut from one of South
Korea’s few female directors, Park Chan-ok’s film is a complex and
subtle drama of relationships that masterfully manages to strike a
balance between being a revenge thriller and a subtle character study.
A Little Monk (Dongsung, 2003)
Directed by Chu Kyong-jong (99 min., North American premiere)
Three Buddhist monks born in totally
different generations live together in a
secluded mountain temple. Nine-yearold Do-nyom still cannot shake off the
memory of his mother and refers to a
widow that frequently visits the temple
as his substitute mother. Twenty-yearold Jong-shim, who has been a monk for
years, still cannot suppress sexual arousal whenever he sees a girl.
Meanwhile the temple elder is unaware that his severe rules and
actions are pushing the younger monks away from the monastic life.
Although it took seven years for first time writer/director Chu Kyongjun to overcome severe budgetary restrictions and complete this film,
she has created a gorgeous and lush Buddhist allegory that is as
unflinchingly honest as it is unsentimentally compassionate.
Madeleine (Madullaen, 2003)
Directed by Pak Kwang-ch’un (118 min., International premiere)
Two former junior high schoolmates Ji-suk, a pensive
Korean literature major, and Hi-jin, a playfully
confident hairdresser, meet by chance at Hi-jin’s
salon and become reacquainted. After a few more
chance meetings, Hi-jin suggests to Ji-suk that they
try a “one-month romance,” with the understanding
that neither can break up before the end of one
month and both must part ways at the end of the
designated time. This delicate and melodramatic
love story is the follow-up feature to director Pak Kwang-ch’un’s 1998
epic horror film Soul Guardians, which was dubbed to have started the
era of “Korean-style” blockbuster movies.
Marriage Is a Crazy Thing (Kyorhonun mich’injisida, 2002)
Directed by Yu Ha (103 min.)
Based on the acclaimed novel by Yi Mang-gyo, this
film was directed by the poet Yu Ha, best known for
his collection of sardonic, laid-back, postmodern
poetry entitled On a Windy Day We Must Go to
Apgujong-dong, which he also adapted into a movie
in 1993. In Marriage Is a Crazy Thing, Yu explores a
relationship between Jun-yong, a part-time college
lecturer of English literature and a confirmed
bachelor, and Yon-hi, an interior designer searching
for a well-to-do, marriageable man. After an evening of heavy drinking,
the two share a motel room where they first have sex, and from that
point on they both challenge each other with their disparate views on
relationships and marriage.
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VOLUME 3, NUMBER 4
TKS EVENTS AHEAD
My Tutor Friend (Donggapnaegi kwawoehagi, 2003)
Directed by Kim Kyong-hyong (110 min., North American Premiere)
Following 2001’s box office sensation My Sassy
Girl, My Tutor Friend also is adapted from an
internet-based novel and is one of the highest
grossing domestic movies this year. In writer/
director Kim Kyong-hyon’s debut feature, college
sophomore Su-wan becomes a tutor in order to
pay for her school tuition ever since her father
lost his job and started a small chicken eatery.
Already averse to her new teaching job, her
hatred for tutoring is exponentially heightened
when she is hired to work with Ji-hun, a spoiled,
popular third-time high school senior the same age as Su-wan. As the
tutor breaks the troublemaker’s spirit and gets him to care about his
studies, an undeniable attraction eventually develops.
No. 3 (Nomba 3, 1997)
Directed by Song Nung-han (109 min., North American Premiere)
With its distinct kinetic style, wildly colorful palette, pulpy dialogue,
shocking violence, driving soundtrack and explosive performances,
this cult classic set the standard for the commercially successful Korean
gangster comedies in 2001. Through
No. 3, writer/director Song Nung-han
was able to show Han Sok-kyu’s comedic
acting ability, relaunch Choe Min-sik’s
career, put Yi Mi-yon on the road to
respectability and acclaim, and send
Song Kang-ho onto become one of the
most beloved actors in Asia today.
Oasis (Oashisu, 2002)
Directed by Yi Chang-dong (132 min., New York Premiere)
Following Green Fish and Peppermint Candy, critically acclaimed director
Yi Chang-dong’s latest film Oasis cements his status as not only one of
Korea’s foremost social commentators but also as a world-class filmmaker. Jong-du, a naive and warmhearted man recently released from
prison, has fallen in love with Gongju, a woman with cerebral palsy.
Their budding relationship comes
under attack from both sides of the
family, who are overprotective and
unwilling to allow the two their own
independent lives. But their love is true and deep, and the young
couple attempts to express it no matter what the cost.
Present (Sonmul, 2001)
Directed by Oh Ki-hwan (110 min., North American premiere)
Struggling comedian Yong-gi finds his relationship with his wife Jongyun deteriorating, and she has a tragic secret that she tries to keep
from him at any cost. Combining stirring performances with simple
camera-work, director Oh Ki-hwan incorporates a vaudeville play to
illustrate this carthartic and powerful tale of one couple’s troubled
relationship. Oh unabashedly
invokes a range of emotions from
his audience in this melodrama, a
genre that has been overlooked
recently with the surge of bigbudget blockbusters and crossgenre experimentation in the
Korean film industry.
Road Movie (Rodu mubi, 2002)
Directed by Kim In-sik (114 min., North American premiere)
In this controversial drama, Tae-sik, once a
mountain climber, is now the leader of a group
of homeless people living in Seoul Station. He
unwittingly saves the life of a ruined stockbroker Sok-won, who begrudgingly forms a
friendship with Tae-sik. Later, while on the
road to visit Tae-sik’s family, the two men pick
up Il-ju, a prostitute who eventually falls in
love with Tae-sik. Soon, we learn more about
Tae-sik’s life as a homosexual man forced to
hide his identity in an uncomprehending
society. Shot in minimalist 16mm, director
Kim In-sik’s debut feature poignantly portrays
Korea’s underbelly of poverty and the society’s marginalized members
in a starkly realistic and resolutely unsentimental light.
Spy Lee (Kanch’op Li Ch’ol-jin, 1999)
Directed by Chang Chin (105 min., International premiere)
Late at night, a North Korean spy washes onto the shores of Kangwon
province unseen and prepares for his first
assignment: to find and steal the geneticallyengineered “Superpig,” an animal developed
by a team of South Korean biologists. Within
hours, however, he is mugged and left stranded,
and as time goes by he realizes that his training
did nothing to prepare him for the complex
life he leads in the South. One of the few films
in Korean cinema to portray North Koreans in
a sympathetic light, Spy Lee utilizes comedy to
humanize refugees from North Korea.
Writer/director Chang Chin’s films to date
have been praised for his creative, intricate screenplays that link
absurd bursts of humor with slower, more reflective scenes.
Teenage Hooker Becomes Killing Machine in Daehakno (Taehakno’aeso
maech’unhadaga t’omaksalhae tanghan
yokosaeng ajik taehakno’e itta, 1999)
Directed by Nam Ki-wung (60 min.)
Shot in digital video, director Nam Kiwung offers a bizarre horror story
comparable
to
David
Lynch’s
Eraserhead or Tsukamoto Shinya’s
Tetsuo: the Iron Man. When a teacher
discovers one of his teenaged students is a streetwalker, he blackmails
her into becoming his sex slave. When she becomes pregnant, he hires
hit men to kill her, then to slice and dice her corpse. A twisted Dr.
Frankenstein fashions what remains of her body into an unstoppable
cyborg and soon RoboHooker is hot on the trail of her killer. Screened
with shorts 8849m (dir. Ko Yong-min, 2001, 12 min.) and Uncle Bar at the
Barbershop (dir. Kwon Jong-kwan, 2000, 22 min.).
Two Cops (T’u kap’su, 1993)
Directed by Kang Wu-sok (110 min., North American premiere)
Detective Cho is a corrupt cop, and
when his attempts to sully his new
ethical partner backfire, the pair wind
up running for their lives after running
afoul of the local drug lord. The
unprecedented success of this classic
comedy allowed director Kang Wusok to establish his own film studio,
Cinema Service, which has become a powerful studio in Korea today.
51
VOLUME 3, NUMBER 4
TKS EVENTS AHEAD
YMCA Baseball Team (YMCA yagudang, 2002)
Directed by Kim Hyon-sok (104 min., International premiere)
In this true story set in 1906 against the
backdrop of Japanese imperialism,
Ho-jang is a scholar’s son who is
destined to follow his father’s
intellectual legacy. When his brother
leaves home to join the underground
resistance against the Japanese
colonial governance, Ho-jang is torn
between fulfilling his familial duty
and pursuing his new love for baseball. When he and his friends form
a team, the village elders disapprove and the imperialist Japanese
have every intention of shaming and shutting them down. Chosen as
the opening film for the 2002 Hawaii International Film Festival, Kim
Hyon-sok, who is the acclaimed screenwriter for Joint Security Area,
displays superior set design and art direction in his directorial debut.
Performing Arts Tour
Dongnae Yaryu: The Masked Dance-Play
Dongnae Yaryu is believed to have originated around the tenth century
in Korea and became established as a distinctive form of entertainment
in the middle of the 18th century. A description of it can be found in
ancient historical sources as early as 1530.
It is an art form in which dance, words and movement come
together as a fully developed drama. It does not follow one continuous
story line from beginning to end. Rather, it is an omnibus presentation
of the elements of a drama. As
various styles of masked
drama developed with their
own distinctive features in
many areas of Korea, plots
have shared common themes:
the resistance of the common
people to the ruling class who
hoard power and money; and
the confrontation between the
old man, the tyrannical head
of a traditional patriarchal family, and his suffering wife. The
confrontation scenes are rife with wit.
The banter between the low-class servant and his upper-class
master has all the tension necessary for drama, though the riotous jests
and gestures of the servant soon dissolve the conflict into laughter.
Masked dance always finds humor even in the tensest situations, and
the mordant comedy gives rise to satire, augmented by fairytale
nonsense. The exaggerated dialogue and movements are underscored
by the exaggerated expressions of the masks, each with a face
endowed with unique character. When these figures used ribald
speech
to
expose
the
hypocrisy of the ruling class,
or bold gestures to expose the
disreputable side of society,
their plebeian audience of the
feudalistic society must have
cheered wildly. These danceplays offered a catharsis for
the injustices they suffered.
And therein lies the attraction
of masked dance with its aesthetic of exaggeration. Performances are planned for Buffalo, Chicago,
New York and Washington, DC. For further information or to explore
the feasibility of scheduling a program, contact Peter Poliakine at 212759-7525 ext. 14 or [email protected].
Exhibition Program
Living through the Forgotten War: Portrait of Korea
The Korea Society introduces an exciting opportunity to present an
exhibition of photographs depicting images from the Korean war. The
exhibition provides a new, human perspective on a war that forever
changed the land and people of Korea and the many Americans who
served there then and since.
About the Exhibit
The photographs in the exhibit focus not on
scenes of conflict and combat but on the
human dimensions of the war. The purpose
of this collection is to “humanize a war in
which stereotype and prejudice were
powerful forces” and to convey the sense of
devastation experienced by all the people
involved—Korean laborers, children, the
wounded, American GIs and even North
Korean POWs. As we commemorate the
Man Carrying Aged Father
January 14, 1951; Ch’ongju
fiftieth anniversary of the Korean war and
are currently engaged in an unofficial war,
this exhibition carries particular relevance in our contemporary context.
This exhibit of forty-three black and white photographic prints—some
shown for the first time—was developed for general American audiences.
Most of the photographs were taken by American combat
photographers, but the exhibition also includes prints from the portfolio Associated Press photographer Max Desfors submitted to the Pulitzer
committee in 1950, including his winning photograph. The exhibition
paints a vivid and moving portrait of Korea as a mostly agrarian nation
catapulted into the industrial age by a terrible war. It is a picture of
hope, kindness, fortitude and endurance found in the people who
encountered destruction, cataclysm and suffering in their daily lives.
The exhibit was developed and first presented by the Mansfield
Freeman Center for East Asian Studies at Wesleyan University during
Spring 2001. Encouraged by the exhibit’s success, the Mansfield Freeman
Center in conjunction with The Korea Society would like to collaborate
with other educational institutions to display “Living Through the
Forgotten War: Portrait of Korea.”
Information for Copresenters
As the presenting organization, The
Korea Society will provide the forty-two
mounted and framed black and white
photographs (thirty-two of which are
22x28 inches and the remaining ten are
14x19 inches). Additionally, copies of
the 45-page illustrated gallery catalogue,
Koreans Building a Tank Bridge
which includes essays by historian
August 24, 1950; Shun-shu
Bruce Cumings and first-hand personal
accounts by John Oh, will be offered for
distribution. Participating organizations will cover the costs of shipping
and insurance, provide exhibition space and distribute supplementary
catalogues. For further information, or to schedule the exhibition at
your institution, contact June Mee Kim at 212-759-7525 ext. 28 or
[email protected].
INTERCULTURAL OUTREACH PROGRAM (ICOP)
Project Bridge 2003-2004
Project Bridge is an annual intercultural youth leadership program working
toward building relations and understanding between Americans of diverse
ethnic backgrounds. Applications for Project Bridge 2003-2004 will be available to high school students and teachers who wish to serve as group leaders
from the New York City and Los Angeles areas in early September 2003.
52
VOLUME 3, NUMBER 4
TKS EVENTS AHEAD
ANNOUNCING PROJECT BRIDGE 2003-04
The Korea Society and the Pacific Century Institute are accepting applications for Project Bridge 2003–04, a
yearlong program of intercultural learning for American youth focused on a study tour to Korea.
The Project Bridge program is an initiative of The Korea Society’s Intercultural Outreach Program (ICOP),
which seeks to build relationships and promote mutual understanding among Americans of diverse ethnic
backgrounds. The program was established in 1993 as a response to the April 29 (Saigu) Incident in Los Angeles.
High school students who will be juniors or seniors during the 2003-04 school year are eligible to apply for
the sixteen available openings—eight in New York City and eight in Los Angeles. Application also is invited
from high school teachers interested in working with the program staff as a group leader.
Objectives
•
Foster greater sensitivity to, and respect for, ethnic and
cultural differences in contemporary American life
•
Promote individual growth by exploring new ideas,
different perspectives and cross-cultural experiences
•
Develop the leadership skills and competence of
talented and academically accomplished urban youth
•
Explore the spectrum of cultural homogeneity and
diversity through a first-hand educational experience
in Korea
Activities
•
Monthly after-school workshops led by experts on:
- relations among Americans of different ethnic backgrounds
- multicultural youth leadership issues
- history, language and culture of Korea
•
•
•
•
•
•
Field trips
Weekend retreat
Involvement with community service organizations
Forum on Race Relations in America
Using the arts to communicate identity and culture
A 10-day educational study tour of Korea in April 2003
For further information
In New York City, contact June Mee Kim 212–759–7525 ext. 28, [email protected].
In Los Angeles, contact Samuel Kim at 818–337–1628 or [email protected].
Application deadline for students: September 30, 2003
53
Deadline for group leaders: September 22, 2003
VOLUME 3, NUMBER 4
PORTFOLIO
Transmitting the Forms of Divinity
arly Buddhist Art from
Korea and Japan was
the first major international exhibition to focus on
the formative links between
the ancient states of Korea
and Japan. The works were
selected to illustrate Korea’s
role in the introduction of
Buddhist culture in Japan
during the 6th to 9th centuries.
E
From l-r:
Seated Bodhisattva in Pensive Posture
Korea
Silla, first half of 7th c.
Yangsan, South Kyoungsang Province
Gilt bronze; h. 27.5 cm
National Museum of Korea, Seoul
The exhibition was on view at its
sole venue—the Japan Society Gallery—
from April 9–June 22, 2003 and presented the earliest Buddhist art ever
created in Korea and Japan. The
pieces included Buddhist sculpture in
gilt bronze, wood, stone and iron;
architectural relics such as decorative
and commemorative ceramic tiles for
temples; precious reliquaries, ritual
implements and sûtra scrolls.
Highlighting the unique stylistic and
icono-graphic expressions of early
Seated Bodhisattva in Pensive Posture
Japan
Nara Period (710-794)
Okadera Prefecture
Important Cultural Property
Seated Vairocana
Korea
Unified Silla Dynasty, late 9th c.
Iron; h. 112 cm
National Museum of Korea, Seoul
54
VOLUME 3, NUMBER 4
Buddhist art in Korea, the exhibition
revealed how this style was the direct
predecessor to Japanese Buddhist art.
Alexandra Munroe, director of the
Japan Society Gallery, summed up the
importance of the exhibition with these
words: “It is very important to have
brokered this curatorial collaboration.
This is the first exhibition anywhere
in the world to fully position Korea as
the mediating influence in the transmission of continental civilization in
Japan, so crucial to our understanding
PORTFOLIO
From l-r:
Standing Avalokitesvara Bodhisattva
Korea
Three Kingdoms period, mid-7th c.
Sonsan, North Kyongsang Province
Gilt bronze; h. 33 cm.
Taegu National Museum
National Treasure No. 183
Standing “Jewel-Holding” Avalokitesvara
Japan
Hakuho period, 658
Gilt bronze; h. 33.3 cm.
Kanshinji, Osaka
Important Cultural Property
Standing Infant Buddha (T’ansaeng-bul)
Korea
Three Kingdoms period, first half of 7th c.
Ho-Am Art Museum, Yong’in
of Buddhist art and culture in northeastern Asia.”
Transmitting the Forms of Divinity
was organized by the Japan Society
and The Korea Society in association
with the Gyeongju National Museum
in the Republic of Korea and the Nara
National Museum in Japan with the
support of The Japan Foundation and
The Korea Foundation. The exhibition
featured 92 works of art largely
from national museums and temple
collections in Korea and Japan,
including six National treasures from
the two countries, three treasures
from Korea, and 23 Important
Cultural Properties from Japan.
Lenders from Korea included
Gyeongju National Museum, Ho-Am
Art Museum, the National Museum
of Korea in Seoul, Puyo National
Museum, and Taeku National Museum.
Lenders from Japan included Nara
National Museum, Tokyo National
Museum, and historical monastic
centers of Buddhism, including the
55
VOLUME 3, NUMBER 4
temples of Hôryûji, Saidaiji, Tôdaiji,
and others across Japan.
The exhibition was presented in
four sections: Introduction - Buddhist
Sculpture of Korea’s Three Kingdoms
period (6th-7th centuries); I - The
Transmission and Transformation of
Buddhist Sculpture (7th-9th centuries);
II - Decorative Tiles from Buddhist
Temples; and III - Sûtras and Ritual
Objects.
RE: S OURCES & I NFORM@TION
NEW FILMS WITH ENGLISH SUBTITLES AVAILABLE ON DVD
2424 (2002)
Director: Yi Yon-wu
Cast: Chon Kwang-nyol, Chon Wung-in, Ye Ji-won, So Yu-jin
When the mastermind of a jewelry smuggling operation suspects
that he is under investigation, he hides the stolen jewels in trinkets
in order to smuggle the seemingly worthless objects out of Korea.
To solve the case, the police launch an operation called 2424.
However, both the police and thief lose track of the precious jewels during the
course of transport, resulting in a frantic search on both sides to recover the lost
treasures. Region: 3. Rating: 15+. Running time: 105 min.
ADDICTED (a.k.a. THE P OISONING) (2002)
Director: Pak Young-hyun
Cast: Yi Byung-hon, Yi Mi-yon, Earl Lee
Dae-jin worships his older brother Ho-jin, and when the two are in
a tragic racecar accident, it spins the younger brother’s life out of
control. When Dae-jin awakens from his coma and learns that his
brother was killed, he begins to take on Ho-jin’s personality traits in
an effort to keep him “alive.” As he begins a relationship with Ho-jin’s wife,
Dae-jin begins to replace his identity completely with that of his dead brother.
Region: 3. Rating: 15+. Running time: 183 min.
COMRADE (a.k.a. DOUBLE A GENT) (2003)
Director: Kim Hyon-jong
Cast: Han Sok-kyu, Ko So-young
A high-ranking North Korean agent working in East Germany
defects and escapes by climbing over the Berlin Wall in 1980. He is
met by South Korean agents, who brutally interrogate him at first
but later hire him to work for the South Korean CIA. However, he
is in fact a double agent patiently working for his “new” country as he awaits
orders from another North Korean agent buried deep in South Korea. But as his
time in the South continues, the clear lines he has been trained to follow begin
to blur. Region: All. Rating: 15+. Running time: 123 min.
CONTACT (1997)
Director: Chang Yun-hyon
Cast: Han Sok-kyu, Chon Do-yon
Dong-hyon is a radio producer still heartbroken from a relationship that ended six years ago. Under a pseudonym, he begins to
communicate with telephone sales clerk Su-hyon via email and
web chat rooms. Although they never physically meet, both come
to rely on each other for emotional support. Regions: 1, 3. Rating: 15+. Running
time: 104 min.
BABY A LONE (a.k.a. SHE B RINGS U S A D ANGER) (2002)
Director: Hong Jong-oh
Cast: Pak Sang-myon, Yi Won-jong, Ahn Jae-mo
Man-su, one of three owners of a martial arts school, finds a oneyear-old baby named Eun-ji and brings her to the school. Smitten
with the baby, all three try to pool enough money to keep her out of
the local orphanage. However, unbeknownst to the hapless trio, a
team of gangsters is on the search for Eun-ji, who happens to be the heir to a
powerful company. Region: All. Rating: 15+. Running time: 154 min.
THE G ARDEN O F H EAVEN (2003)
Director: Yi Dong-hyon
Cast: An Chae-wuk, Yi Eun-ju, Son Chong-bom
Even though he was orphaned at a very young age, Oh-sung still
manages to become a respected doctor despite his inability to overcome his mental and emotional anguish. Yong-ju, another desperate
orphan, suffers from stomach cancer and is facing death. When
these two lonely hearts meet, they find solace in each other and eventually fall
in love. Region: All. Rating: All. Running time: 172 min.
BET O N M Y D ISCO (2002)
Director: Kim Dong-won
Cast: Yi Chong-jin, Yang Dong-gun, Im Chang-jong, Han Chae-yong
In 1982, three high school boys Hae-jok, Song-gi and Pong-p’al pass
much of their time drinking whiskey and stealing recyclables for
spare change. When Pong-p’al’s father is injured and unable to
work, the son takes over his father’s job cleaning outhouses while
his younger sister secretly works at a local hostess bar. Once the boys discover
her occupation, they try to save her at all costs, which ultimately results in a
disco contest. Region: 2002. Rating: 15+. Running time: 106 min.
H (2003)
Director: Yi Jong-hyok
Cast: Yom Jong-ah, Chi Jin-hi, Cho Seung-wu
When three corpses are discovered, two officers assigned to the
case superficially decide that a copycat is mimicking the murders
committed by a convicted killer. However, when more bodies begin
surfacing, the officers visit the prisoner in his cell to see if he can
shed any light on the grisly occurrences. But their visit only leaves them with
the realization that the case runs deeper than they had originally suspected.
Region: All. Rating: 15+. Running time: 157 min.
CHIHWASEON (a.k.a. STROKES O F F IRE) (2002)
Director: Im Kwon-taek
Cast: Choe Min-sik, Ahn Song-gi, Yu Ho-jong
Veteran director Im Kwon-taek’s 95th film Chihwaseon, which won
him the best director award at the 2002 Cannes Film Festival, tells
the story of renowned painter Chang Sung-op, a preeminent but
eccentric artist who revolutionized Korean art in the final years of
the Choson period. Region: 3. Rating: 18+. Running time: 120 min.
IF T HE S UN R ISES I N T HE W EST (1998)
Director: Yi Eun
Cast: Ko So-young, Im Chang-jong, Cha Seung-won
A traffic police officer meets a beautiful young acting student and
teaches her how to drive, falling in love with her in the process.
However, their relationship takes an unfortunate turn when she
goes abroad to study. After three years apart, they meet again
under different circumstances, but the old flames prove difficult to rekindle.
Region: 1, 3. Rating: 15+. Running time: 102 min.
THE C LASSIC (2003)
Director: Kwak Jae-yong
Cast: Son Ye-jin, Cho In-song, Cho Sung-su
University student Chi-hye discovers a box of photos and letters in
her bedroom that once belonged to her mother. As she explores its
contents, she learns that her mother was involved in a secret teen
romance back in the late 1960s, which surprisingly parallels her
own current romantic dilemma. Region: 3. Rating: 12+. Running time: 127 min.
THE C OAST G UARD (2003)
Director: Kim Ki-duk
Cast: Chang Dong-gon, Kim Jong-hak, Pak Ji-ah
Directed by controversial filmmaker Kim Ki-duk, The Coast Guard
follows the life of a young South Korean soldier based at a coastal
observation point near the DMZ. When he becomes obsessed with
finding North Korean spies attempting to infiltrate the South, he
mistakenly kills an innocent civilian in a restricted area, which triggers a chain
of events that ultimately consumes the characters in this bleak portrayal of
Korean society. Region: 3. Rating: 18+. Running time: 94.
INDIAN S UMMER (2001)
Director: No Hyo-jong
Cast: Pak Shin-yang, Yi Mi-yon, Han Myong-gu
Lee Shin-yong has been charged with her husband’s murder and if
found guilty faces the death penalty. Resigned to her fate, Lee refuses
to hire an attorney and simply accepts that she will be put to death.
The court-appointed defense attorney, So Chun-ha, is convinced of
her innocence and desperately pleads her case. Region: 3. Rating: 15+. Running
time: 104 min.
JAIL B REAKER (2002)
Director: Kim Sang-jin
Cast: Sol Kyong-gu, Cha Seung-won, Song Yun-ah
When a pair of convicted criminals daringly escapes from prison in
pursuit of love and life, they discover the free world is much harsher
than their jail cells. After several mishaps with freedom, the pair
decides they are safer in prison and begin making plans to break
back in. Region: 3. Rating: 18+. Running time: 121 min.
56
VOLUME 3, NUMBER 4
L’ABRI (a.k.a. THE B US S TOP) (2002)
Director: Yi Mi-yon
Cast: Kim Tae-wu, Kim Min-jong
Jae-sop is a notoriously withdrawn 32-year-old Korean teacher at
a private teaching institute. Disillusioned with life, he avoids
socializing with anyone other than a prostitute he visits occasionally.
When So-hi, a 17-year-old high school student wrought with her
own feelings of despair and disillusionment, transfers into his class, they
both recognize each other’s anguish and begin to take refuge in one another.
Region: 1, 3. Rating: 15+. Running time: 90 min.
LITTLE M ONK (2003)
Director: Chu Kyong-jong
Cast: Kim Tae-jin, Kim Min-gyo, Oh Yong-su
Three Buddhist monks born in totally different generations live
together in a secluded mountain temple. Nine-year-old Do-nyom still
cannot shake off the memory of his mother and refers to a widow that
frequently visits the temple as his substitute mother. Twenty-year-old
Jong-sim, who has been a monk for quite sometime, still cannot suppress feelings
of sexual arousal whenever he sees a girl. Meanwhile the temple elder is unaware
that his severe rules and actions are pushing the younger monks away from the
monastic life. Region: All. Rating: All. Running time: 100 min.
LOVER’S C ONCERTO (2002)
Director: Yi Han
Cast: Cha Tae-hyon, Yi Eun-ju, Son Ye-jin
When Ji-hwan, an avid photographer, first meets Su-in and Kyonghi, he is immediately attracted to Su-in. She, on the other hand,
expresses no romantic interest in him, and instead all three become
good friends over the years. However, Ji-hwan succumbs to the
feelings he has for Su-in and eventually writes her a love letter that will forever
change all three lives. Region: 3. Rating: 12+. Running time: 106 min.
MADELEINE (2003)
Director: Pak Kwang-chun
Cast: Cho In-song, Shin Min-ah
Two former junior high schoolmates Ji-suk, a pensive Korean
literature major, and Hi-jin, a playfully confident hairdresser,
meet by chance at Hi-jin’s salon and become reacquainted. After a
few more chance meetings, Hi-jin suggests to Ji-suk that they try a
“one-month romance,” with the understanding that neither can break up before
the end of one month and both must part ways at the end of the designated
time. Region: 3. Rating: 15+. Running time: 119 min.
MAKE I T B IG (2002)
Director: Cho Ui-sok
Cast: Song Seung-hon, Kim Young-jun, Kwon Sang-wu, Yi Bom-su
Three schoolmates stumble upon a bag of money and a thief who
has fainted during his getaway. Disregarding the consequences,
the three grab the money and begin buying lavish items while a
suspicious detective watches their every move. Meanwhile, the
loan shark who was robbed is on the hunt for the culprits, so the only way the
three can survive is to run directly into the arms of the law. Region: 3. Rating:
15+. Running time: 110 min.
MANNER Z ERO (a.k.a. CONDUCT Z ERO) (2002)
Director: Cho Kun-sik
Cast: Ryu Sung-bom, Im Eun-gyong, Kong Hyo-jin
Jong-pil, the toughest student at an all-boys’ high school in the mid1980s, falls in love with his next-door neighbor Min-hi, a model
student at an all-girls’ high school. This relationship transfomrs his
life. With his “gangster” connections, and Min-hi’s influence in the
school system, Jong-pil soon becomes recognized as his school’s most outstanding student. However, living up to this new status proves to be quite a
challenge. Region: All. Rating: 15+. Running time: 99 min.
MARRYING T HE M AFIA (2002)
Director: Chong Hung-sun
Cast: Chong Jun-ho, Kim Chong-un, Yu Dong-gun
A law school graduate finds himself in a predicament when he
wakes up next to a mob boss’s daughter and is pressured to marry
her, thus becoming part of the legendary crime organization Triple
J. Region: 3. Rating: 15+. Running time: 113 min.
MY T UTOR F RIEND (2003)
Director: Kim Kyong-hyong
Cast: Kim Ha-nul, Kwon Sang-wu
Following 2001’s My Sassy Girl, My Tutor Friend is adapted from an
internet-based novel and is the highest grossing domestic movie
this year. In this film, Su-wan, a college sophomore, becomes a tutor
in order to pay for her school tuition when her father is fired from his job.
Already averse to her new job, her hatred for tutoring is heightened when she
is hired to tutor Ji-hun, a spoiled third-time high school senior the same age as
Su-wan. Region: All. Rating: 12+. Running time: 110 min.
OASIS (2002)
Director: Lee Chang-dong
Cast: Sol Kyong-gu, Mun So-ri
Jong-du, a naive and warmhearted man recently released from
prison, has fallen in love with Gong-ju, a woman with cerebral
palsy. Their budding relationship falls under attack from both sides
of the family, who are overprotective and unwilling to allow the
two their own independent lives. But their love is true and deep, and the young
couple attempts to express it no matter what the cost. Region: 3. Rating: 18+.
Running time: 133 min.
THE P HONE (2002)
Director: An Byong-ki
Cast: Ha Chi-won, Kim Yu-mi, Choe Wu-chae
After a young woman is constantly harassed on her cell phone, she
dies under mysterious circumstances. Her friend, a reporter for a
local magazine, begins investigating and uses her cell phone as a
clue. When the deceased woman’s roommate begins to receive calls
from an unidentified source, a frantic search for the caller ensues. Region: All.
Rating: 15+. Running time: 102 min.
ROAD M OVIE (2002)
Director: Kim In-sik
Cast: Chong Ch’an, Hwang Chong-min, So Lin
Tae-sik, once a mountain climber, is now the leader of a group of
homeless people living in Seoul Station. He unwittingly saves the
life of a ruined stockbroker Sok-won, who begrudgingly forms a
friendship with Tae-sik. Later, they pick up Il-ju, a prostitute who
eventually falls in love with Tae-sik, and we soon learn more about Tae-sik’s life
as a homosexual man forced to hide his feelings in an uncomprehending society.
Region: 3. Rating: 18+. Running time: 115 min.
SAVING M Y H UBBY (2002)
Director: Hyon Nam-sop
Cast: Bae Du-na, Kim Tae-wu, Chu Hyon
Kum-sun, a young woman struggling to adjust to her new role as
housewife and mother, receives a disconcerting phone call from a
bar owner who is keeping her husband hostage, claiming that he
has an enormous unpaid bill. Strapping her baby to her back, she
sets out to brave the seedy neon underworld of Seoul’s nightlife and rescue her
husband. Region: 3. Rating: 12+. Running time: 90 min.
SCENT O F L OVE (2003)
Director: Yi Jong-wuk
Cast: Chang Chin-yong, Pak Hae-il, Song Son-mi
In-ha falls in love with Hui-jae, an older university classmate, but
she rejects him for another love interest. Years later, after her life is
shattered by an unexpected accident, In-ha gets another chance to
win her heart. Region: 3. Rating: All. Running time: 107 min.
MARRIAGE I S A C RAZY T HING (2002)
Director: Yu Ha
Cast: Om Chung-hwa, Kam Wu-song
Jun-yong, a part-time college lecturer of English literature and a
confirmed bachelor, is set up on a blind date with Yon-hi, an interior
designer searching for a well-to-do, marriageable man. After an
evening of heavy drinking, the two decide to share a motel room,
where they first have sex. As they continue their relationship, they both
challenge each other with their disparate views on marriage. Region: All.
Rating: 18+. Running time: 106 min.
SHOW S HOW S HOW (2003)
Director: Kim Jong-ho
Cast: Yu Chun-sang, Pak Son-yong, Yi Son-gyun
Set in the 1970s, three best friends from disparate backgrounds win
a dilapidated old building while gambling and decide to turn it into
one of Korea’s first cocktail bars. Region: All. Rating: 15+. Running
time: 108 min.
57
VOLUME 3, NUMBER 4
STRAY B ULLET (a.k.a. OBALTAN) (1961)
Director: Yu Hyon-mok
Cast: Kim Jin-gyu, Choi Mu-nyong, Mun Jong-suk
One of the undisputed classics of Korean cinema, this masterpiece
combines stylistic elements from the Italian Neorealist movement
with sharp commentary on Korean society after the Korean War.
Stray Bullet follows one family’s struggles with poverty and the
social upheavals of a rapidly changing society. Region: All. Rating: 15+. Running
time: 105 min.
THE W AY H OME (2002)
Director: Yi Jong-hyang
Cast: Kim Ul-bun, Yu Sung-ho
This unexpected box office success opens with a single mother
who, faced with financial troubles, decides to leave her sevenyear-old son with his mute grandmother in a remote village in the
countryside. Having run away from home at a young age, the
mother introduces the two to each other for the first time and then hurriedly
returns to the city. The boy is furious at this upheaval in his life, taking out his
frustrations by misbehaving and making wild demands of his grandmother.
Region: 1, 3. Rating: All. Running time: 87 min.
WHITE B ADGE (1992)
Director: Chong Chi-yong
Cast: An Song-gi, Yi Kyong-yong, Shim Hye-jin, Han Ji-il
Han Ki-ju, who writes stories in a monthly magazine about the
Vietnam War, still suffers from the effects of his participation in the
war ten years later. One day he receives a call from Pyon Jin-su, a
former soldier in his unit. From there, he flashes back to the nightmarish time his unit was deployed to the valley of Mt. Hunba, where only seven
out of 47 soldiers survived. Region: All. Rating: 15+. Running time: 123 min.
WHO A RE Y OU? (2002)
Director: Choe Ho
Cast: Yi Na-yong, Cho Sung-wu, Cho Eun-ji
Computer game programmer Hyong-tae works on the 30th floor of
Seoul’s tallest skyscraper and becomes acquainted with In-ju, who
works in the aquarium on the ground floor. She agrees to take part
as a test player in his internet dating game but does not realize the
identity of her new online acquaintance. Region: 1, 3. Rating: 12+. Running time:
102 min.
YESTERDAY (2002)
Director: Chong Yun-su
Cast: Kim Sung-wu, Kim Yun-jin, Choe Min-su, Kim Son-ah
In the year 2020, a series of mysterious kidnappings lead police
investigators to search for the identities and motives of the criminals
at an “intercity” constructed along the border with China and a
unified Korea. Region: 3. Rating: 15+. Running time: 124 min.
YMCA B ASEBALL T EAM (2002)
Director: Kim Hyon-sok
Cast: Song Kang-ho, Kim Hye-su
In this true story set in 1906 against the backdrop of Japanese
imperialism, Ho-jang is a scholar’s son who is destined to follow his
father’s intellectual legacy. When his brother leaves home to join the
underground resistance against the Japanese colonial governance,
Ho-jang is torn between fulfilling his familial duty and pursuing his new love
for baseball. When he and his friends form a team, the village elders disapprove
and the imperialist Japanese have every intention of shaming and shutting them
down. Region: 1, 3. Rating: All. Running time: 108 min.
Websites where the DVDs may be purchased:
www.dvdasian.com, www.pokerindustries.com, www.yeondvd.com
DVDs are programmed according to the following regional codes:
1–United States, U.S. territories and Canada
2–Japan, Western Europe, the Middle East, Egypt, South Africa and Greenland
3–South Korea, Hong Kong, Taiwan and Southeast Asia
4–Mexico, South America, Central America, Caribbean, Australia, New Zealand
and Pacific Islands
5–Eastern Europe, Russia, India, Africa, North Korea and Mongolia
6–China
(Most DVDs manufactured in Korea are all region.)
CONFERENCES
Harvard Project for Asian & International Relations 2003:
“Integration and Innovation: Finding Common Ground
for a Dynamic Asia”
August 21–24, 2003 • Sookmyung University, Seoul, South Korea
The Harvard Project for Asian and International Relations (HPAIR) 2003
is an international conference, organized by the students and faculty of
Harvard University, which strives to address the most important economic, political, social and cultural issues facing the Asia Pacific region.
HPAIR is a forum for open dialogue between top university students,
government officials, representatives of international organizations,
business leaders, and distinguished academics. Each year’s annual conference is organized in cooperation with a leading Asian university and
brings together about 300 university students from all continents. The
aim of the conference is to create a discussion forum where student
leaders exchange ideas on critical international issues, and build lasting
relationships that transcend national and cultural frontiers.
HPAIR 2003 will take place in Seoul, South Korea and will be
cohosted by Sookmyung Women’s University, one of Korea’s premier
institutions which was established in 1906. Under the theme
“Integration and Innovation: Finding Common Ground for a Dynamic
Asia,” this year’s conference will encompass major legal, political, economic, environmental and social issues that are radically altering the
Asia-Pacific region. The conference workshops will address financial
transparency and global accountability as manifested by everyday
economic and legal reality; explore innovations in economic policy
which integrate environmental and social concerns; examine how to
link seemingly disparate communities in non-traditional and highly
rewarding ways; and formulate a global understanding of Asia’s rapidly changing geopolitical structure. Above all, HPAIR 2003 is dedicated to the understanding that finding common ground is a dynamic and innovative process that integrates ideas and actions from across
Asia, and indeed the whole world. For further information visit
hpair.student.harvard.edu.
OPPORTUNITIES
2004–2005 Korea Foundation Postdoctoral Fellowship
Non-Korean scholars, which includes Korean nationals with permanent resident status in a foreign country, who have received their
Ph.D. in a subject related to Korea within five years of their application
and who do not currently hold a regular faculty position are eligible
for the 2004–2005 Korea Foundation Postdoctoral Fellowship. The
fields of research for a 12-month period in accordance with the academic year of the affiliated institution include anthropology, archaeology, art history, economics, geography, history, language and literature, law, linguistics, musicology, philosophy, political science, psychology, religion and sociology. The fellowship program provides
stipend support for a 12-month period, of an amount to be determined
on the basis of country, region and institution where the fellow will
conduct his/her research. Prior to the submission of a formal application to the Foundation, applicants should select and contact up to
three institutions for possible affiliation if a postdoctoral grant is
offered. The Foundation conducts one round of grant awards per year.
The deadline for the receipt of applications is January 15, 2004. The
notification of institutional affiliation must arrive at the Foundation no
later than January 31, 2004. Fellowship awards are announced by
April 2004. For application materials and information, contact: The
Korea Foundation, Seocho P.O. Box 227, Diplomatic Center Building,
1376-1 Seocho 2-dong, Seocho-gu, Seoul 137-072, Korea. For more
information email [email protected] or visit www.kf.or.kr.
58
VOLUME 3, NUMBER 4
EXHIBITIONS & FESTIVALS
Drawing on Faith: Ink Paintings
for Korean Buddhist Icons
August 21, 2003–January 11, 2004
Los Angeles County Museum of Art, Los Angeles, CA
The Los Angeles County Museum of Art (LACMA), in collaboration
with Dongguk University Museum in Seoul, Korea and with the generous financial support provided by the Korean Cultural Center in
Los Angeles, presents an exhibition of 45 rare Korean Buddhist ink
paintings created over the past 300 years. The works of art include
details, individual figure studies, and complex compositions—many
of very large size—dedicated to divinities that were extremely popular in Choson dynasty Korean Buddhism (1392–1910 CE).
Most of the works are brushed in ink on
paper; some show thin, highly controlled,
unmodulated lines that resemble fine wire,
while others display inflected strokes that
reveal the expressive possibilities of the
flexible brush. All relate to the process of
creating wall paintings for Korean
Buddhist temples and thus reflect a valued,
conservative artistic tradition governed by
models. The ink paintings, which served as
models, were copied to make underdrawings that were glued behind silk, cotton, or
hemp, the visible lines guiding the creation
of color paintings on cloth. Two polyBodhisattva
Avaloketeshvara
chrome paintings, exhibited alongside their
(Kwanum), 20 century
(now separated) underdrawings, illustrate
Ink on paper
the relationship between the last stages of
traditional Korean Buddhist image making. While polychrome
paintings survive in large numbers, the ink-painted masters and
underdrawings are rarely seen. Lenders include T’ongdo
th
Monastery, Sudok Monastery and the Venerable Pyongjin, the abbot
of Changan Monastery. This is the first time that these paintings are
being shown outside Korea.
The museum’s hours are as follows: Monday, Tuesday and
Thursday noon–8 PM; Friday noon–9 PM; Saturday and Sunday 11
AM–8 PM; closed Wednesday. General LACMA admission prices are
as follows: adults $7; students 18 years and over with ID and senior
citizens 62 years and over $5; children/younger students $1; children
5 and under are admitted free. The second Tuesday of every month
is free to all. For further information, contact the museum at
323–857–6000 or visit www.lacma.org.
Transmitting Culture: Korean Ceramics
from Korean American Collections
August 21, 2003–March 7, 2004
Los Angeles County Museum of Art, Los Angeles, CA
The Los Angeles County Museum of Art (LACMA), in commemoration of the centennial of Korean immigration to the United States,
presents 1,500 years of rarely seen Korean ceramics from private collections. Generous financial support has been provided by the
Korean Cultural Center in Los Angeles.
Korean potters are justly famous for the artistic beauty and
technical quality of their wares. The 50 remarkable works included in this exhibition illustrate all major developments, ranging
from early, unglazed stonewares of the Three Kingdoms (57 BCE–
668 CE) and Silla (668–935 CE) periods through Koryo (918-1392)
celadons to Choson (1392–1910 CE) porcelains. All of the exhibited works are gifts—given or promised to the museum—from
Korean American collectors in Southern California.
Transmitting Culture: Korean Ceramics from
Korean American Collections is presented in
conjunction with LACMA’s autumn celebration of Asian art. The focus of the celebration
is The Circle of Bliss: Buddhist Meditational Art
(October 5, 2003–January 4, 2004), a major
international exhibition of approximately
160 of the finest Tibetan, Nepalese,
Mongolian, Indian, and Chinese paintings,
sculptures, textiles, and ritual implements.
Salvation: Images of the Buddhist Deity of
Compassion (August 14, 2003–July 5, 2004)
celebrates the importance of the Buddhist
deity Avalokiteshvara with extraordinary
sculpture and paintings from LACMA’s perDouble Gourd Bottle
manent collection. The exhibited works span with Leaves, late Koryo
1,500 years. Drawing on Faith: Ink Paintings
period (c. 1200–1392)
Wheel-thrown
for Korean Buddhist Icons (August 21,
stoneware with iron
2003–January 11, 2004) features a group of
slip, cream slip decorarare Korean Buddhist paintings created as tion, and celadon glaze
models for devotional imagery over the past
300 years. In addition to these exhibitions, LACMA’s departments of
education, film and music will present events that highlight the rich
culture and history of Asia.
LACMA’s commitment to the promotion of Korean art and
culture was illustrated recently by the purchase of 250 Korean
works of art from the Robert W. Moore Collection, the finest
gathering in private hands outside Asia (1999) and the organization of the first ever international bilingual symposium on
Korean art history, Establishing a Discipline: The Past, Present, and
Future of Korean Art History (2001). The centennial offerings thus
illustrate LACMA’s ongoing efforts to introduce Korean art to
American audiences and, at the same time, offer a reminder of an
ancestral home to Korean immigrants.
The museum’s hours are as follows: Monday, Tuesday and
Thursday noon–8 PM; Friday noon–9 PM; Saturday and Sunday 11
AM–8 PM; closed Wednesday. General LACMA admission prices are
as follows: adults $7; students 18 years and over with ID and senior
citizens 62 years and over $5; children/younger students $1; children
5 and under are admitted free. The second Tuesday of every month
is free to all. For further information, contact the museum at
323–857–6000 or visit www.lacma.org.
RESFEST 2003 Korea Digital Film Festival
November 14–20, 2003
Yonsei University, Centennial Hall, Seoul, South Korea
RESFEST is an annual, global touring festival exploring the
dynamic interplay of film, art, music and design. Each year the
festival showcases the best shorts, features, music videos (cinema
electronicas) and animation in an environment that combines
screenings, seminars, parties, panel discussions and technology
demonstrations. Designed to support and inspire emerging talent,
the festival will journey worldwide to over a dozen cities across six
continents, building a global network of creators and audiences. The
festival has supported breaking new talent, hosted visionary filmmakers, and pushed boundaries to rethink the visual language of
cinema. Since its founding in 1996, RESFEST has been both an
artistic and technological pioneer. RESFEST was the world’s first
global event to champion desktop tools designed to empower the
independent creator. Since then, the festival has evolved in
response to the convergence of film, music, design, fashion and
art. RESFEST is now the home for an even wider international
cultural movement being created by the collision of creative disciplines. For more information, visit www.resfest.co.kr.
59
VOLUME 3, NUMBER 4
NEW BOOKS
And the Wind Blew Cold: The
Story of an American POW in
North Korea
By Richard M. Bassett, Lewis H.
Carlson (contributor)
$21.00/hc, ISBN 0-8733-8750-3
Kent, OH: Kent State University
Press, January 2003
Big Brother, Little Brother: The
American Influence on Korean
Culture in the Lyndon B. Johnson
Years
By Sang-Dawn Lee
$65.00/hc, ISBN 0-7391-0435-7
Lanham, MD: Lexington Books,
January 2003
Buddhist Sculpture
By Youngsook Pak, Roderick
Whitfield
$27.90/pb, ISBN 1-8566-9358-9
London, UK: Laurence King
Publishing, June 2003
Catch-u
up and Crisis in Korea
By Wontack Hong
$70.00/hc, ISBN 1-8406-4917-8
Northampton, MA: Edward Elgar
Publishing, January 2003
Century of the Tiger: One Hundred
Years of Korean Culture in America
1903-2
2003
By Jenny Ryun Foster, Frank
Stewart, Heinz Insu Fenkl (editors)
$24.95/pb, ISBN 0-8248-2644-2
Honolulu, HI: University of Hawai’i
Press, March 2003
The Changing Politics of Finance in
Korea and Thailand: From
Deregulation to Debacle
By Xiaoke Zhang
$100.00/hc, ISBN 0-4152-9862-8
London, UK: Routledge, January
2003
Contentious Kwangju: The May
18th Uprising in Korea’s Past and
Present
By Gi-Wook Shin, Kyung Moon
Hwang (editors)
$65.00/hc, ISBN 0-7425-1962-7
$22.95/pb, ISBN 0-7425-1961-9
Lanham, MD: Rowman & Littlefield
Publishers, Inc., June 2003
Creative Women of Korea: From
the Fifteenth to the Twentieth
Century
By Young-Key Kim-Renaud (editor)
$64.95/hc, ISBN 0-7656-1189-9
Armonk, NY: M.E. Sharpe, July
2003
Democracy, Human Rights, and
Peace in Korea: Psychological,
Political, and Cultural Perspectives
By Henriette Sindig Aasen, Uichol
Kim, Geir Helgesen
$45.00/hc, ISBN 8-9828-7559-X
Press, April 2003
Eye on Korea: An Insider Account
of Korean-A
American Relations
By James V. Young, William
Stueck (editor)
$39.95/hc, ISBN 1-5854-4262-3
College Station, TX: Texas A&M
University Press, July 2003
Economic Crisis and Corporate
Restructuring in Korea: Reforming
the Chaebol
By Stephan Haggard, Wonhyuk
Lim, Euysung Kim
$60.00/hc, ISBN 0-5218-2363-3
Cambridge, UK: Cambridge
University Press, March 2003
Financial Crisis and Transformation
of Korean Business Groups: The
Rise and Fall of Chaebols
By Sea-Jin Chang
$75.00/hc, ISBN 0-5218-1435-9
University Press, May 2003
Fire Mission!: The Story of the
213th Field Artillery Battalion in
Korea 1951-1
1954
By Anthony J. Sobieski
$19.95/pb, ISBN 1-4033-9025-8
Bloomington, IN: 1stBooks Library,
May 2003
In Full Bloom
By Caroline Hwang
$23.95/pb, ISBN 0-5259-4711-6
New York: Dutton, April 2003
Historical Dictionary of North Korea
By Ilpyong J. Kim
$75.00/hc, ISBN 0-8108-4331-5
Lanham, MD: Scarecrow Press,
April 2003
Integrated Korean: Advanced
Intermediate 1
By Ho-min Sohn, Eun-Joo Lee
$24.95/pb, ISBN 0-8248-2568-3
Press, February 2003
Integrated Korean: Advanced
Intermediate 2
By Ho-min Sohn, Eun-Joo Lee
$24/95/pb, ISBN 0-8248-2526-8
Press, February 2003
Korea, I Was There
By Harold L. Gamble
$16.50/pb, ISBN 1-4107-0855-1
May 2003
Korea’s Democratization
By Samuel S. Kim (editor)
$70.00/hc, ISBN 0-5218-2321-8
$25.00/pb, ISBN 0-5215-3022-9
University Press, June 2003
Korean Diaspora in the World
Economy
By C. Fred Bergsten, Inbom Choi
(editors)
$20.00/pb, ISBN 0-8813-2358-6
Washington, DC: Institute for
International Economics, January
2003
Korea’s Divided Families: Fifty
Years of Separation
By James Foley
$80.00/hc, ISBN 0-4152-9738-9
London, UK: RoutledgeCurzon,
January 2003
The Korean Paekjong Under
Japanese Rule: The Quest for
Equality and Human Rights
By Joong-Seop Kim
$95.00/hc, ISBN 0-7007-1707-2
April 2003
The Korean War: A Historical
Dictionary
By Paul M. Edwards
$75.00/hc, ISBN 0-8108-4479-6
Lanham, MD: Scarecrow Press,
March 2003
The Koreans in Hawai’i: A Pictorial
History
By Roberta Chang, Wayne
Patterson (contributor)
$27.00/hc, ISBN 0-8248-2664-7
$12.95/pb, ISBN 0-8248-2685-X
Press, April 2003
Land of Morning Calm: Korean
Culture Then and Now
By John Stickler, Soma Han
Stickler (illustrator)
$16.95/hc, ISBN 1-8850-0822-8
Freemont, CA: Shen’s Books &
Supplies, July 2003
Leadership in the Crucible: The
Korean War Battles of Twin
Tunnels and Chipyong-N
Ni
By Kenneth Earl Hamburger
$32.95/hc, ISBN 1-5854-4232-1
College Station, TX: Texas A&M
University Press, May 2003
Living Dangerously in Korea: The
Western Experience, 1900-1
1950
By Donald N. Clark
$34.95/hc, ISBN 1-8919-3621-2
$24.95/hc, ISBN 1-8919-3611-5
Norwalk, CT: EastBridge, March
2003
Narratives of Nation Building in
Korea: A Genealogy of Patriotism
By Sheila Miyoshi Jager
$65.95/hc, ISBN 0-7656-1067-1
$22.95.pb, ISBN 0-7656-1068-X
Armonk, NY: M.E. Sharpe, June
2003
Nations in Conflict: North Korea
By Peggy J. Parks
$26.20/hc, ISBN 1-4103-0077-3
San Diego, CA: Blackbirch Press,
May 2003
60
VOLUME 3, NUMBER 4
North Korea
By Christopher Salter, Charles F.
Gritzner (editor)
$24.95/hc, ISBN 0-7910-7233-9
New York, NY: Chelsea House
Publications, March 2003
North Korea Handbook
By Yonhap News Agency,
Monterey Interpretation and
Translation Services (translation)
$350.00/hc, ISBN 0-7656-1004-3
Armonk, NY: M.E. Sharpe,
February 2003
North Korea in the World Economy
By Yesook Merrill, E. Han Kim, Eun
Kwan Choi (editors)
$90.00/hc, ISBN 0-4153-0429-6
June 2003
Notes from the Divided Country:
Poems
By Suji Kwock Kim
$22.95/hc, ISBN 0-8071-2872-4
$15.95/pb, ISBN 0-8071-2873-2
Baton Rouge, LA: Louisiana State
University Press, April 2003
Reforming Korea’s Industrial
Conglomerates
By Edward M. Graham
$22.40/pb, ISBN 0-8813-2337-3
Washington, DC: Institute for
International Economics, January
2003
Restructuring ‘Korea Inc.’: Financial
Crisis, Corporate Reform, and
Institutional Transition
By Jang-Sup Shin, Ha-Joon Chang
$90.00/hc, ISBN 0-4152-7865-1
February 2003
The Scriptures of Won Buddhism:
A Translation of the Wonbulgyo
Kyojon
By Bongkil Chung
$40.00/hc, ISBN 0-8248-2185-8
Press, March 2003
Sunrise Korea
By Timo Annala
$14.50/pb, ISBN 1-4107-0949-3
May 2003
The Unfinished War: Korea
By Bong Lee
$30.95/hc, ISBN 0-8758-6218-7
$24.95/pb, ISBN 0-8758-6217-9
New York, NY: Algora Publishing,
May 2003
Voices from the Straw Mat:
Toward and Ethnography of Korean
Story Singing
By Chan E. Park
$44.00/hc, ISBN 0-8248-2511-X
Press, March 2003
TEACHING RESOURCES & PUBLICATIONS
Getting to Know Korea: Professional Development for
Educators in Grades K-1
12
$15 (includes shipping and handling)
This new series of professional conferences for educators
is being offered nationwide in collaboration with the
Korean Educational Development Institute (KEDI). This
series expands the scope of the professional development
programs for American teachers being offered by The
Korea Society. All these programs are designed to support
the efforts of American teachers to incorporate information and materials related to Korea in their classroom
teaching.
Teaching More about Korea
Each year, a collection of lesson plans for grades K–12 are
prepared by the participants in The Korea Society’s
Summer Fellowship in Korean Studies program. The
Summer Fellowship in Korean Studies program was established to help integrate the study of Korea into the curricula of American schools by offering educators the opportunity to experience Korea first hand. Every summer since
the program was established, The Korea Society has
selected a group of dedicated and talented educators to
learn about Korea through direct experience with its people, historical landmarks and culture. After their return, the
teachers bring Korea alive for their students through their
first-hand reflections, the knowledge they have acquired
and the materials they have collected. Through the publication the lesson plans they have prepared, the benefits of
their time in Korea can now be shared with other teachers
who want to develop their students’ understanding of
Korea’s culture and history.
Korea: Lessons for High School Social Studies Courses
This collection of lesson plans serves as an introduction to
Korea’s distinctive historical and cultural legacy for English
speaking students. It is organized thematically for the convenience of teachers who are interested in incorporating
lessons on Korea into their social studies classes. Each of
the twelve lesson plans in the book can be taught in conjunction with lessons about other geographical regions.
They also can be modified to suit a variety of classroom
subjects. In addition to photographic materials to enhance
the content of each lesson, the book has a reference section including a world chronological table, a list of Internet
sites, and a bibliography of resources.
Brief History of Korea: A Bird’s Eye View
by Young Ick Lew, Yonsei University
This brief overview of Korean history, from the earliest
period up to the present, is by one of Korea’s leading historians. It contains a detailed chronology comparing high
points in Korean history with contemporaneous developments in other countries of East Asia and the West. Brief
History of Korea is suitable for both educators and young
adults.
Tales of Korea I & II
by Cathy Spagnoli
$5/set (includes shipping and handling)
These unique resources for teaching Korean folktales were
developed by professional storyteller Cathy Spagnoli. Each
set consists of an audiotape and an accompanying
teacher’s guide. Tales of Korea I is for use at the elementary school level; Tales of Korea II is intended for use at
the junior high level.
Christianity in Korea
Conference report authored by Edward W. Poitras, Emeritus Professor of World Christianity, Southern Methodist
University. Also includes abstracts of the presentations, biographies of the presenters and an annotated bibliography.
The Korea Society presented a two-day conference to explore more deeply the emergence of Christianity as a
major factor in modern Korean life. The conference was held in New York City in September 1997, in cooperation with Union Theological Seminary and with financial support from the Henry Luce Foundation and Mr. Sang
Eun Wang. It was an unprecedented gathering of scholars and experts on Korean Christianity from several
nations, together with many from other fields who recognize the importance of this subject. During the conference invited respondents commented on sixteen presentations, while those in attendance contributed to lively
and penetrating discussions. The topics covered were: Reexamining the History of Korean Christianity; Korean
Christian Growth; Impact of Christianity in Korea; Uniqueness of Korean Christianity; Women in Korean Christian
History; and Church and State in Korea.
Korean War Conference Report
Conference report authored by Donald N. Clark, Professor of History and Director of International Studies, Trinity
University. Also includes abstracts of the presentations, biographies of the presenters and an annotated bibliography authored by Vipan Chandra, Professor of History, Wheaton College.
In commemoration of the 50th anniversary of the outbreak of the Korean War, The Korea Society, Georgetown
University and Korea University (Seoul) collaborated in presenting a conference on June 23-25, 2000 exploring
the legacy of the war from a broad spectrum of political, strategic, economic and cultural perspectives. Major
financial support was provided by the International Foundation for Korea University and U.S. News & World
Report. The “Forgotten No More” theme of the conference was meant as an assertion that the events of the
Korean War had meaning, and the tremendous sacrifices by those involved were not in vain. It was also a claim
to better understanding and hope that a careful retrospective might offer wisdom for leaders in Korea and other
countries whose interests lie in peaceful progress and transition on the Korean peninsula. Over thirty leading
scholars, journalists, officials, and other experts on Korean affairs made presentations during the conference that
were organized around the following themes: Background — The Korean War Revisited; War As Crucible —
Development of Korean Nationalism and Identity; Concordant Discord — Reviving Suppressed Memories of the
Korean War; Current Perspectives on the DPRK; The Tragedies of the Korean War — No-Gun-Ri; U.S.-ROK
Relations — Cost and Benefits of the Korean War; Korea and Her Neighbors — Future of the Korean Peninsula;
and Reflections on the Long-Term Impact of the Korean War.
The above books are published by The Korea Society. To order, mail a written request along with a check made payable to:
The Korea Society to: Korean Studies, The Korea Society, 950 Third Avenue, Eighth Floor, New York, NY 10022.
61
VOLUME 3, NUMBER 4
ON THE RECORD
President Roh Moo-hyun Speaks at The Korea Society 2003
Annual Dinner in New York City on May 12, 2003.
The following is the gist of the speech President Roh Moo-hyun delivered at
a meeting of South Korean and American VIPs, businessmen and bankers
hosted by the Korea Society in New York.
Korea is a dynamic society. The pace of change has been rather fast,
and meaningful changes are still continuing.
In the past, growth largely took the form of quantity. But now, it is
seeking a new kind of growth. That is to say, “growth in quality” is
emphasized as much as material and quantity.
Korea today is becoming a society that assures free and fair competition and has a government that treats the people as its rightful master.
In the spring of 2002, Korean voters actively participated in a new
process to select a presidential candidate; they were able to cast ballots
in a primary regardless of party affiliation. The December presidential
election was held amid great popular enthusiasm and in a freer and
fairer manner than any before; thus a new Administration was born.
In conformity of the new tide of the times, I have laid out four guidelines for my Administration: principle and trust, fairness and transparency, dialogue and compromise and decentralization and autonomy.
These guidelines will be carried out with active public participation.
I have profound respect for Abraham Lincoln, the 16th President of
the United States. He was a statesman of integrity and modesty. He
honored human rights, prevented division, and instead achieved
national integration and harmony. More than anything, he helped
create a society where justice prevails.
For a time, I, too, was a lawyer before entering politics. In the 1980s,
I fought for human rights and democracy against authoritarian
Governments. I devoted myself to promoting the rights and benefits of
the socially vulnerable.
During the 1990s, democracy in Korea advanced substantially.
Unfortunately though, the politics of divisiveness and struggle was
not ended. National integration was a major task.
I agonized over this problem and made painstaking efforts to solve
it. I appealed to people to leave behind the age of struggle in favor of
dialogue and usher in an age of integration instead of divisiveness. As
a result of speaking out against continuing, wayward divisiveness, I
was defeated in four elections. But I persevered and have kept my own
political principle to this day.
It is coincidence that I am filling the 16th Korean presidential term and
Lincoln was the 16th U.S. President. However, it is not the result of any
coincidence that I have a profound respect for the American President.
Lincoln once remarked that he would administer the government
with the wholesome common sense acquired in adversity. I will strive
to follow the example of President Lincoln who in his second inaugural speech said, “Let us strive…to do all which may achieve and cherish a just, and a lasting peace, among ourselves, and with all nations.”
campaign and supported the anti-terrorism war in Afghanistan. Right
at this moment, Korean military units are working in cooperation with
U.S. forces in Iraq.
In recent months, some people have voiced concern about the
future of the Korea-U.S. alliance. But I assure you that you do not have
to worry about that. I am confident that you are well aware that the
Korean people and government cherish the firm bilateral alliance with
the United States.
For the past 50 years, the Korea-U.S. alliance has contributed greatly to maintaining peace in the Republic and peace on the Korean
Peninsula. The role of the U.S. Forces in Korea is important to the
peace and security of all of Northeast Asia. The Korean government
and I will continue to work hard to develop a more mature and full
partnership with the United States.
Two Alternatives for North Korea
The most urgent task presently facing Korea is bringing permanent
peace to the peninsula. We cannot hope to reap the fruit of prosperity
from a protracted Cold War. My Administration is pursuing a Policy
of Peace and Prosperity.
National development and happiness begin with assurances of
peace. If peace were broken, nothing else would really matter.
Currently, Pyongyang’s nuclear program poses a serious threat to
the peace and stability of Northeast Asia as well as the Korean Peninsula.
We will never condone the North’s nuclear program. But this issue
should be settled peacefully by all means, and I am sure it will be
solved through dialogue. The Governments of the Republic of Korea
and the United States both recognize this principle and are coping
with the issue accordingly.
North Korea has two alternatives: it can go down a blind alley or it
can open up. It is incumbent upon Pyongyang to give up its nuclear
project and come forward as a responsible member of the international community. When the North takes this route, the Republic of Korea
and the international community will extend the necessary support
and cooperation.
Last month, North Korea came to the negotiation table. The threeway dialogue in Beijing was a meaningful beginning of a process to
peacefully resolve the North’s nuclear issue. I highly value the good
efforts and patience the United States showed in the course of accommodating the three-party talks.
I do not have an unrealistic expectation that this problem will be
resolved overnight. There will be many difficulties. However trust
among parties will be established and the door to peaceful resolution
will open if the parties concerned engage in dialogue with sincerity. I,
as the president, will do my very best to achieve peace and stability on
the Korean Peninsula.
Korea’s Hub Dream
50th Anniversary of ROK-US Alliance
This year marks the centennial of Korean immigration to America. The
year 2003 is also significant in that it is the 50th anniversary of the
Korea-U.S. alliance.
When the Korean War broke out in 1950, our two countries shed
blood together to safeguard freedom and democracy. Many young
Americans gave their lives “to defend a country they never knew and
a people they never met.” Even today, the Korean people feel deep
gratitude for the noble sacrifices they made.
As an American ally, Korea has played its role faithfully to the best
of its abilities. It actively participated in peacekeeping efforts during
the Gulf War and in East Timor. Korean people shared the sorrow of
the American people when the 9/11 terrorist attacks occurred. The
Republic willingly cooperated in the international counter-terrorist
Geographically, the country is located between two huge markets:
China and Japan. The Incheon International Airport as well as the ports
of Pusan and Kwangyang possesses world-class logistics facilities.
Particularly, Korea’s information infrastructure is second to none in
the world as demonstrated by its super-speed communications networks and other cutting-edge information technologies. In addition, our
educational standards and excellent human resources are well known.
To become a viable business hub of Northeast Asia, Korea is now
focusing its efforts on meeting two important conditions.
The first is establishing permanent peace on the Korean Peninsula.
The second is to reform the economic system to make it comparable to
other advanced nations.
Korea is continuing national efforts to improve all aspects of the
economy to meet global standards. The Government and industry are
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VOLUME 3, NUMBER 4
ON THE RECORD
joining forces to establish a fair and transparent market order. Market
reform will be carried out with consistency and without pause.
Labor affairs will see progress as well. A new labor-management culture centered on dialogue and cooperation is steadily taking root. Labor
will be guaranteed rights and benefits asked to do its duties in accordance
with international standards, and at the same time, management will be
assured of flexibility in the labor market as accepted internationally.
I will strive to make Korea the most attractive place to invest anywhere.
The Korean market will be wide open globally and make no distinctions
between foreign and domestic businesses. I am appealing to American
businesses and investors for their active interest and cooperation.
Common Values for Free Democracy
Korea and the United States share the values of free democracy and
market economics. The two countries are important to each other in all
areas, including trade and people-to-people exchanges. Last year, 1.2
million Koreans and Americans visited each other. Bilateral trade
amounts to $56 billion annually.
Our two countries will continue to develop a close-knit important
alliance. I will make my best effort so that our two peoples will deepen understanding of each other and mutual respect.
Let us further solidify the friendship and trust that we have built
up during the past half a century. Let us join forces to promote peace
on the Korean Peninsula and in the rest of the world as well as everlasting friendship between our two peoples.
Remarks of General Raymond G. Davis, USMC (Ret) at The
Korea Society Annual Dinner in New York on May 12, 2003
Mr. President, Ambassador Gregg, Mr. Lee, Mr. Rubin, Distinguished
Guests, Ladies and Gentlemen:
I am very honored to accept The Korea Society Van Fleet Award
named after that great American and fellow warrior, General James A.
van Fleet, US Army, who commanded the Eighth Army during the height
of the Korean war in 1951. As you are also aware, General Van Fleet was
the moving force behind the establishment of The Korea Society.
I have read the award citation and I am very flattered. However,
anything that I have done during my entire professional life, to be so
recognized, has been a direct result of the thousands of soldiers,
sailors, airmen, coast guardsmen and marines who have toiled in the
vineyards of service. Service to their God, service to their Country,
service to their families and service to each other!
Mr. President, Ambassador Gregg, I served in three wars: WW II,
Korea and Vietnam. Those of us who have fought in battle know the
horror of war. We need to be reminded that in order to prevent war,
we must prepare for war. Strength can bring peace!
I have returned to North Korea three times since fighting there in
1950. Last year, for the first time since 1950, several of us were allowed
to travel to the Changjin (Chosin) reservoir to search for those of our
men still buried in those cold formidable mountains. We were partially successful but more are still buried there. We would like to return
to the battlefields of North Korea again with more veterans on what I
call “Warrior to Warrior” diplomacy to perhaps sow the seeds of peace
between old soldiers who were once bitter enemies. We have done this
with the Japanese soldiers of World War II and our former enemies in
Vietnam. Now is the time to meet with the soldiers of North Korea!
Thank you for the great honor bestowed on me this evening. I will
cherish The Korea Society Van Fleet Award for the rest of my life!
Kun Hee Lee’s Remarks at The Korea Society 2003 Annual
Dinner in New York City on May 12, 2003.
Good evening ladies and gentlemen. It is a great honor to be given the
opportunity to deliver a welcoming address in the presence of
President and Mrs. Roh Moo-hyun and Ambassador Donald Gregg.
As we look back over our history of the last half-century, the United
States and Korea have maintained a relationship no less than an
alliance of brothers. The United States has graciously assumed a role
as a strong supporter of Korea.
Moreover, it is no exaggeration to say that the Korea of today, with
its world-class and thriving economy based upon a solid foundation of
democracy and capitalism, owes its success to the kind support and
cooperation of the American people.
President Roh Moo-hyun, who is graciously present with us today,
represents Korea’s vision and hope for the 21st century. President Roh
has faithfully and consistently adhered to an uncompromising political course rooted in the principles of democracy and free markets.
It is my sincere hope that President Roh’s current visit to the United
States will serve as a good opportunity not only to reaffirm the strong
ties between our two nations, but also to further enhance our cooperation and friendship.
I hope you would join me in serving as a witness to this historic
moment, the beginning of a stronger and closer relationship, which
will become a proud legacy for our future generations, who will lead
another “fifty years of friendship” into the future.
Message of UN Secretary-General Kofi A. Annan delivered
by H.E. Maurice F. Strong at The Korea Society Annual
Dinner in New York on May 12, 2003.
I am delighted to convey my warmest wishes to this event in honour
of His Excellency Roh Moo-hyun, president of the Republic of Korea.
Above all, I wish to express my deep appreciation for the
exceptional contribution that the Republic of Korea is making to the
United Nations. A true believer in our organization, the Republic of
Korea is playing an increasingly active part in every aspect of our
work—be it peacekeeping in Timor-Leste, humanitarian assistance to
Afghanistan, or preventive action in Northeast Asia.
The Republic of Korea commands growing respect worldwide for
its impressive progress in consolidating democracy and for its role as
a global economic powerhouse. Let me also commend President Roh
for his visionary policy of "peace and prosperity." The government
responded swiftly and generously to my appeal to help prevent a
humanitarian disaster in the Democratic People's Republic of Korea. I
also appreciate the president's constructive support for UN activities
in North Korea. We support the key role played by the Republic of
Korea in matters of peace and security on the peninsula, and its
determination to pursue inter-Korean dialogue and cooperation.
Today, there is a consensus in the international community that the
Korean peninsula should be free from nuclear weapons, and that this
should be achieved by peaceful means. I am hopeful that the recent trilateral talks in Beijing mark the beginning of a diplomatic process that
will lead to a resolution of the matter, and I continue to offer my full
support to that process. Inevitably, the process will be difficult and even
frustrating at times. But there is no alternative to it, and the international
consensus I have pointed to must remain the source of our optimism.
As we look to the humanitarian and longer-term economic development
needs of the DPRK, I believe the United Nations system is uniquely
placed to be effective in mobilizing international assistance on both
counts. Although long-term economic assistance on the scale required
can occur only after the current security crisis is resolved, the work to
prepare for it must begin now. In that context, we continue to rely heavily
on the cooperation and steadfast support of the Republic of Korea.
Finally, let me take this opportunity to pay tribute to another friend
of the United Nations—Mr. Donald Gregg, president and chairman
of the board of the Korea Society. Under Donald Gregg's leadership,
the Korea Society is providing a shining example of the role a nongovernmental organization can play in promoting understanding,
dialogue, human dignity and peace. I thank you for your commitment,
and wish you all a splendid evening.
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VOLUME 3, NUMBER 4
WHO’S WHO & WHAT’S WHAT
Movie Provides Bond between the Two Koreas
Vietnam Decorates Outgoing Korean Amb. Baek
January 11, 2003—Broadway Cinema, located just outside of Seoul, has
stopped showing the latest James Bond movie Die Another Day due to
poor public sentiment. Various groups called for a boycott this film
because they feel that South Koreans were poorly portrayed in the film.
The timing of release also sparked controversy since North Korea had
recently admitted the restart of its nuclear programs. (Los Angeles Times)
March 4, 2003—South Korean Ambassador Baek Nak-hwan has been
awarded the Order of Friendship Award, the highest award given to
foreigners by the Vietnamese government. Baek has been instrumental in improving relations with Vietnam, playing a major role organizing summit talks between South Korean President Kim Dae-jung and
Vietnamese President Tran Duc Luong. He has also promoted Korean
investment in Vietnam. This award has been previously received by
officials from only four other nations. (Korea Information Service)
Gregg on Kim Jong Il
February 3, 2003—Former Ambassador to South Korea, Donald Gregg
writes that it is not only unfair to typecast Kim Jong Il, but also ignorant. The U.S. government made the same mistake over thirty years
ago when it declared Ho Chi Minh a threat to the sanctity of peace and
democracy in the United States. Ambassador Gregg, after talking to
many officials of other countries, believes Kim Jong Il is not the devil
most people believe he is. He desires improved, not deteriorating,
relations with his neighbors. The true nature of Kim Jong Il will present itself, but he cannot be defined as a rogue leader before he is first
tested. (Newsweek)
Korean Teams Cross Sticks, Not Swords at Asian Games
February 4, 2003—After a late registration, North Korea, with 51 athletes and officials, competed in the Winter Asian Games. North Korea
and South Korea marched together under the unification flag during
the opening ceremony in Misawa, Japan. Going beyond the mere sentiment of unity, the two teams joined together to root for Kazakhstan
playing against Korea's long time rival Japan. Joint sporting events
such as this one have eased tensions between the two neighbors still
technically at war. (New York Times)
Seo's Winter of Work Pays Off
March 10, 2003—With two spots open on the starting pitchers roster
for the Mets, Korean born Jae Weong Seo is determined to fill one.
Seo's fastball has returned to its normal speed of 92 mph after two
years of recovery from elbow surgery. Seo has made a great impression so far by pitching well in the pre-season and beginning his daily
practice before the rest of the team. (The New York Times)
High School Colossus Takes Step to NBA
March 11, 2003—SFX sports group have invited South Korean basketball
star, 17-year-old Ha Seung-jin, to a weeklong workout session with other
promising U.S. prospects. The 7-feet-2-inches Han led his team at Samil
Commerce High in Suwon to four championship titles. (Korea Herald)
Pak Bags 20th Career LPGA Win
April 28, 2003—Pak Se-ri has defeated Shani Waugh on the fourth
playoff hole to win the Chick-fil-A Charity Championship, her 20th
LPGA win and bringing her tour winnings to $511,618. Pak, in both
the last round of regulation and the playoff, relied strongly on her putting game. (Korea information Service)
A Champion of Women, and a Defender of Girls
February 8, 2003—In December 1999, Kim Kang Ja became the first
woman to attain the rank of chief in the Korean police force. She was
the first woman to rise above the menial roles traditionally performed
by women on the force. After she was promoted to inspector, the
police chief placed her under surveillance, waiting for her to make
mistakes. Instead, she performed better than any of her male counterparts and received a $1,000 bonus. Since becoming chief, she has succeeded in drastically reducing the number of child prostitutes in Seoul
and works tirelessly to improve the quality of life of all Koreans. (The
New York Times)
Ronald Moon Retains Hawaii Chief Justice Post
February 10, 2003—Chief Justice Ronald Moon, who was appointed chief
justice of the Hawaii Supreme Court in 1993, will keep working until his
retirement in 2010. At the age of 63, he will remain in Hawaii's top judicial position for 7 more years. Moon was the son of two Korean immigrants and studied law at the University of Iowa. In 1982 after practicing law for some time, he was appointed to the position of circuit court
judge. He was also just recently awarded the honor of "Judge of the
Year" by the National Center for State Courts. (Korea Information Service)
Tae Kwon Do Grandmaster Dies
February 21, 2003—Won Kuk Lee, one of the founders and grandmasters of Tae Kwon Do, the internationally popular martial art, died on
February 2 at the age of 95. Lee was born in Korea growing up during
the Japanese colonial period. He graduated from Central University
Law School in Japan. While in Japan he studied martial arts later visiting China to diversify his training. Upon his return to Korea in 1944
he established the first Tae Kwon Do school. Among his prominent
students was General William Westmoreland, the commander of U.S.
forces in Vietnam. Won Kuk Lee immigrated to the U.S. in 1976 and
settled down in Arlington VA where he frequently gave martial arts
demonstrations. (The Washington Post)
Korean Center Throws Joins WNBA
April 28, 2003—29-year-old Jung Sun-min was the eighth pick in the
first round of the 2003 Women's National Basketball Association draft
held in Secaucus, New Jersey on April 25. She said she was very excited to join the Seattle Storm. Jung has been Korea's star center leading
the Korean National Team to two Asian Basketball Championship
titles. In her local league she led her team, Shinsegae Coolcat, to four
championships in the last five years earning an MVP award for herself
each time. (Korea Herald)
A Survivor Recounts Human Horror of North Korea's Prison
Camps; Rebuke by UN Commission on Human Rights
May 3, 2003—Lee went to jail in North Korea for her attempt to escape
starvation by fleeing to China. The five largest North Korean camps
hold about 200,000 inmates with stories of despair similar to Lee's.
The camps are filled with people who either tried to flee North Korea,
or were accused of political offenses. In the camps, prisoners work to
exhaustion and live on a bowl of watery soup with cabbage and rotten
corn kernels. Every night, according to Lee, prisoners line up, bow
their heads, and the ones who supposedly did not work hard enough
were whipped. Lee, one of the fortunate ones, eventually made it to
South Korea. In such a weak state, the camp officials sent her home to
die, but instead a trader picked her up and brought her to eastern
China. There, a Christian activist supplied her with false papers and
Lee survived in China for four years before going to Mongolia and
eventually arriving in South Korea. Just last month the UN
Commission on Human Rights condemned North Korea for its poor
human rights record. The commission discussed reports of torture,
public executions, and selective rationing of food. A resolution North
Korea was passed, but it had little effect because the Iraqi War and
North Korean nuclear crisis shadowed the human rights issue. In
addition, North Korean officials claim that the accusations were fabricated. Activists were agitated that the newly elected president of
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VOLUME 3, NUMBER 4
WHO’S WHO & WHAT’S WHAT
Dixie Walker, An Appreciation
By David I. Steinberg, Director, Asian Studies Program,
School of Foreign Service, Georgetown University
July 22, 2003—Ambassador Richard L. Walker died in Columbia, South
Carolina last week. A China specialist, he came to Korea in 1981 as the first
American ambassador appointed to Korea in the Reagan years. Some say he
would have liked to have been appointed to Beijing, but years before he was
confirmed, he had a long association with Korea. As a staunch, even doctrinaire, anti-communist, he was appreciated by all the Korean governments
even before his appointment. He was invited to present papers and make
speeches at a myriad of Korean conferences dealing with security and related
matters. He was an American academic who was respected by the conservative Korean political and academic leaders, with whom he was intellectually
compatible. He probably was invited to more meetings in and on Korea in
those early years than any other American.
He came to Korea at a difficult time and had a difficult task. The Carter
years saw a deterioration of Korean-American relations, and the coup of Chun
Doo Hwan and then the Kwangju incident intensified these strained bonds.
The American Republican administration sought to improve the alliance,
exemplified by President Chun's visit to the Reagan White House almost
immediately after Reagan's inauguration. Although the visit was intimately
connected with the American role in saving Kim Dae-jung's life (he was
under a death sentence), it was an event Koreans constantly recall with an
accusatory tone. Dixie's job, at least to one outside the system, seemed to be
to try to retrieve the closeness of the relationship that was so important to both
states. He approached this task with total dedication, although some would
say with too little regard for alternative political approaches and personalities.
But most of all, Dixie was a gentleman. He had the personal charm and
manners of what we call the 'old school.' His kindnesses to those with whom
he came in contact became legendary. He treated everyone, not only the officials with whom he dealt, with care and concern. Secretaries and workers, as
well as ministers and ambassadors, were accorded graceful and personal attention. There was an ease in his deportment and speech that pleased. Sometimes
his puns and jokes might have been a bit too obvious, but they never hurt and
never demeaned. He was a pleasure to be around. There is a stereotype in the
United States of what we call the 'southern gentleman.' Dixie epitomized the
genre, and although he was a controversial figure in the China field because of
South Korea and human rights lawyer Roh Moo-hyun did not participate in the UN resolution vote. He felt that forcing another resolution
on North Korea was just one more obstacle to improving relations
with the country. He said that after a relationship has been established,
outside influence on the human rights issue would be much greater.
(The Washington Post)
his political views, he will be remembered by his Korean friends and colleagues
not so much for his political positions as for his personal charm.
Dixie and I often disagreed about policy, and especially U.S. policy in
Asia, and if I regarded him as too far to the right, I feel sure that he thought I
was too far to the left. But we both may have exaggerated, each perhaps hovering on either side of the center. No matter how much one might disagree
with his emphasis, there never was a question that he was a close friend of
Korea. This friendship was not only a matter of policy, but even more importantly it was a personal commitment. After he retired from the foreign service and returned to Columbia, South Carolina, he continued the Korea connection through a series of annual conferences on aspects of Korea and
Korean-American relations. He consulted for the U.S. government, and made
innumerable trips back to Korea, where he was always treated with the attention and respect that he deserved.
Koreans hope for a strong degree of commitment to Korea and the welfare
of its people from the foreign friends and acquaintances. Indeed, that commitment often defines the friendship. If that tie is manifest, then differences on
policies and approaches become subordinate to the mutual bond that is established. Dixie had that commitment, and could always be relied on to show
friendship for the Korean condition at both state and personal levels. He wrote
his Korean reminiscences in the late 1990s, and if critics charged that he was
too kind to everyone, that reflected his personality.
I last saw Dixie last in February of this year at a Georgetown University
conference on anti-American sentiment in Korea. In a sense, it was fitting
that he was there, for if there were one person who exemplified the opposite of
that phenomenon, it was Dixie Walker. He spoke at a luncheon with his usual
charm. He could always be counted on to do the right thing. He treated our
staff with a degree of respect that won him many friends and he was always
welcome back on the campus.
We will miss Dixie's bewitching charm, grace, and humor.
The late Ambassador Walker was a member of
the board of directors of The Korea Society for
many years. This appreciation of his life and
career by a fellow member of the board was
published originally in The Korea Times and is
reprinted here with permission.
gift giving act to be akin to bribery, but Ms. Colligan assures them that
it is just Korean custom to give generous gifts to teachers. Within the
Korean community, people have been discouraging the act of generous gift giving in order to prevent misconceptions by the teachers.
Some school communities have created money pools where parents
donate five to ten dollars and the whole class purchases one gift for the
teacher. (The New York Times)
Questions and Answers for Korea Telecom's Chief
May 5, 2003—Korea has built the most comprehensive, high speed
internet network in the world and, as growth has slowed in the
telecommunications market, providers are searching for new business
opportunities, according to Lee Yong Kyung, president and CEO of
Korea Telecom (KT). Lee also said that, despite the slowdown he also
expects 10% growth this year. He believes that if his company could
keep providing costumers with faster speeds, demand would persist.
By 2005, all of KT's networks will be converted to IP so they can handle voice traffic better. (The New York Times)
Waiting for 'Wonderful Days' of Korean Animation
May 22, 2003—Kim Mun-saeng, CEO of production company Tin
House and director of Wonderful Days, believes that his movie will
bring Korean animation to the forefront of the industry. Korean animation has long been overshadowed by American and Japanese films
and has yet to demonstrate that it is technically on a par with its counterparts. However, Wonderful Days combines 2D drawings, 3D computer graphics, and actually filmed miniatures, a method never used
before in a feature-length film. This movie will be Kim's film debut
after directing over 200 television commercials. (Korea Herald)
Some Koreans Give their Teachers the Whole Apple Tree
May 18, 2003—Korean immigrants have often struggled with the
approach to gift giving in the American school system. Since education is so important in Korea, teachers are placed in high regard and
gifts often reflect the respect parents have for their children's educators. In America, however, the iconic gift to the teacher is an apple and
so Korean immigrants struggle whether or not to follow the American
gift giving style or their native one. Sometimes teachers suspect the
World Health Organization Names First Korean Head
May 22, 2003—Dr. Lee Jong-wook has been appointed secretary general
of the World Health Organization. A Korean tuberculosis and vaccinations expert, Dr. Lee is the first Korean to hold this position. His five-year
tenure started in July. Dr. Lee is a graduate of Seoul National University's
college of medicine and the University of Hawaii. He has worked for the
World Health Organization for the past 20 years. (JoongAng Ilbo)
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Seoul Proposes a Truce between
the U.S. and North Korea
January 5 & 6, 2003—In attempt to stabilize
Korea, the South proposed a compromise
between the North and the United States.
Knowing the U.S. Senate would reject a
formal nonaggression-treaty, South Korea
encouraged President Bush to disavow
military confrontation in exchange for
North Korea's disarmament. Still, the U.S.
has refused negotiations with the North
until it halts its nuclear weapons buildup.
Despite the Bush administration's opposition to direct talks with North Korea,
China, Japan, Russia and South Korea continue to negotiate with them. (The New
York Times, The Associated Press)
North Korea Removes Itself from the
Nuclear Non-Proliferation Treaty
January 10 & 11, 2003—Claming that the
International Atomic Energy Agency
(IAEA) favored the U.S., North Korea
withdrew from the Non-Proliferation
Treaty. North Korea believes the IAEA
acted on behalf of America, thus working
as an accomplice in the goal of destroying
North Korea. While declaring its independence from the safeguards accord,
North Korea maintained that its nuclear
function would be restricted to electricityproduction. In rejecting the pact, the
North will be free from its regulations in
90 days. The announcement of withdrawal was met with grave disapproval from
among others Australia, France, Japan,
Russia and South Korea. (The New York Times)
North Korea Faces Electrical Shortages
January 20 & February 23, 2003—U.S. fuel
cutoffs coupled with inefficient plants significantly diminished electricity production in
North Korea. Consequently, fields cannot be
mechanically irrigated, factories work sporadically, and foreign investment has diminished. With the North's violation of the 1994
accords, America stopped its annual delivery of 200,000 tons of fuel. The unreliability
of power continues to deeply affect the
country. (KOIS, The New York Times)
China Aids North Korea in
the Capture of Defectors
January 22, 2003—Chinese police detained
78 North Korean and three South Korean
refugees during their attempted escape to
South Korea and Japan. Financed by 21 aid
groups from France, Japan, America, and
South Korea, the defectors face return to the
North. Fearing that defections will destabilize neighboring North Korea, China has
actively sought the capture of escapees by
employing police forces and creating monetary rewards. (The New York Times)
First Overland Route Since 1945
Opened Between the Koreas
February 5, 6, & 15, 2003—For the first time
since Korea's division in 1945, an overland
tour group traveled from South to North for
a weekend stay at the Diamond Mountain
resort. The opening of the passageway, in a
border closed since the Korean War's
armistice in 1953, has monumental implications for future peace. Mr. Chung Mong
Hun, chairman of Hyundai, inaugurated
the route and plans to open the passage to
the South Korean public later in February.
Hyundai estimates that the tour will draw
over 500,000 visitors next year.
The two Koreas will commemorate the
March 1st anniversary of the 1919 rebellion
against the Japanese with the passage of
100 North Koreans to Seoul. (The New York
Times, The Wall Street Journal)
Payoff to North Korea Grows
from $200 to $500 Million
February 17, 2003—Chung Mong Hun, chairman of Hyundai, admitted sending $500
million to North Korea in exchange for several agreements made during the 2000
Summit. While contracts between the North
and South included plans for parks, power
generators and an airport, Mr. Chung insisted that these deals were also constructed to
smooth the way to the Summit. Hyundai's
investment in the Summit, according to Mr.
Chung, resulted from his father's Northern
origins. (The New York Times)
Kim Jong Il Turns 61
February 17, 2003—Millions of North
Koreans celebrated the February 16 birthday of their leader, Kim Jong Il. The
national holiday, where children receive
candy, fireworks are set off, and spectacles
are displayed, also featured a rare supply
of food and electricity. All foreigners were
restricted to Pyongyang. (The Washington
Post, The New York Times)
South Korean Subway Fire
February 18 & 22, 2003—A 56-year-old man
with a history of mental illness is suspected
of setting fire to two trains in a Taegu subway station. With over 300 people listed as
missing, investigators continued to sift
through subway wreckage. Criticizing the
city for its slow reaction, inspectors also
stated that many bodies were beyond identification. The death toll is 189 persons.
Kim Dae-han was charged with
manslaughter. Six subway officials were
also arrested under negligent manslaughter. The trains' poor construction also contributed to the damage. Flammable seat
covers and flooring contributed to the
blaze's breadth, while insufficient emer-
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VOLUME 3, NUMBER 4
gency lighting hindered escape. (The New
York Times)
Korean Families Shortly Reconnected
February 23, 2003—For the sixth time since
the 2000 Summit, one hundred elderly
South Koreans traveled north for a reunion
with relatives. The family members, separated since the partition of the Korean
Peninsula (1945) and the Korean War (19501953), spent three days at the Diamond
Mountain resort. While the selection process
for North Korean hopefuls was undisclosed,
South Korean participants were randomly
chosen by computer from a pool of 100,000
aspirants. (The New York Times)
Kim Finishes his Term
February 24, 2003—After a five-year term,
President Kim Dae-jung stepped down
with a plea for the continuation of his
Sunshine Policy. Mr. Kim's administration
focused on uniting Korea, while strengthening the South's economy. Awarded the
Nobel Peace Prize in 2000 for catalyzing the
Korean Summit (2000), Mr. Kim gained
worldwide recognition. His successful
image also came from surmounting the
1997 financial debacle and hosting the 2002
World Cup. Mr. Kim's standing was
marred by the Northern nuclear buildup,
admittance of payments to the North, and
the arrest of two sons. (The Washington Post)
Roh Moo-hyun:
A New President for South Korea
February 25 &26, 2003—President Roh's
coming to power symbolizes South Korea's
democratic achievement, and its hopes for
peace. Although the North dispatched a
short-range missile into the Sea of Japan
hours before Mr. Roh's inauguration, the 56year-old president maintains faith in the
Sunshine Policy. Rejecting the use of violence, Mr. Roh looks to encourage discussion
between the U.S. and the North, without losing favor from either of the opposed countries. (The New York Times, The Dow Jones)
Roh Appoints the First Female Justice Minister
February 27, 2003—Appointed by President
Roh, Kang Kum-sil became South Korea's
first female Justice Minister. Formerly a
judge, the 46-year-old civil rights lawyer is
known for her modern views. (KOIS)
American Spy Plane Detected by North Korea
March 4 & 8, 2003—During a surveillance
mission, an American Air Force spy plane
was intercepted by four North Korean fighter jets. The 22-minute encounter took place
over the Sea of Japan, where the jets shadowed the unarmed U.S. aircraft from 50 feet
away. Tracking ballistic-missile launchings,
the Cobra Ball was 150 miles from the North
Korean coast. Although the Korean jets
attempted to force a landing, the American
crew ignored the North Korean signals and
safely returned to the Kadena Air Base in
Japan. (The New York Times)
Roh's Televised Debate
March 10, 2003—For the first time in the history of the Republic of Korea, President Roh
debated with ministry prosecutors in a
nationally televised broadcast. Mr. Roh
defended his standards for the appointment
of new prosecutors, claiming that selection
was based on capability, not seniority. With
many prosecutors resigning, Mr. Roh hopes
the group will move quickly towards political independence. (Korea Times)
Roh Grants Summit-Investigation
March 14, 2003—Pushed by the Grand
National Party, President Roh allowed a law
appointing an independent prosecutor to
inquire about payments made to the North
in exchange for the 2000 Summit. The bill
was passed against the wishes of Mr. Roh's
own Millennium Democratic Party, and
North
Korea's
Asia-Pacific
Peace
Committee. (The New York Times)
U.S. Places Trade Sanction on North Korea
March 31, 2003—After discovering North
Korea's sale of four to six Nodong medium-range missiles to a Pakistani organization, President Bush placed new trade
sanctions on North Korea and promised to
chastise the firm involved. Although
China stands against Mr. Bush's decision,
citing Kim Jong Il's insistence that U.N.
sanctions would be equated with war, Mr.
Bush still plans to punish North Korea's
violation of the Arms Export Control Act.
(The Wall Street Journal)
South Korean Troops Sent to Iraq
April 2, 2003—With a vote of 179 to 68, the
National Assembly approved sending 700
noncombatant troops to Iraq in hopes of fortifying relations with America. Due to the
South Korean public's opposition to the war
and U.S. troops, the parliament delayed the
vote three times. (The New York Times)
Former U.S. President Bush's Visit to
South Korea
April 4, 2003—The Federation of Korean
Industries (FKI) invited former U.S.
President George H.W. Bush to visit Seoul.
The two-day effort to fortify South Korean
and U.S. relations will consist of meetings
with various South Korean notables,
including President Roh and FKI committee leaders. (The Korea Information Service
(KOIS))
U.S. Will Move its Seoul Garrison
April 10, 2003—America and South Korea
decided to move the U.S.' Seoul garrison,
holding 23,000 people, farther south due
to constant anti-American protests. The
headquarters, within the artillery range of
North Korea, is one-square mile in the center of Seoul. (The New York Times)
North Koreans Extradited to Face Drug-Trial
April 22, 2003—Twenty-six North Koreans,
charged with trafficking 110 pounds of heroin to Australia, began their trial. The captain
and crew of a cargo ship allegedly delivered
the narcotics to Melbourne and were subsequently captured near Sydney. Money from
the drugs, valued at $48 million, would have
likely gone to the North Korean government.
(The New York Times, The Washington Post)
10th Inter-Korean Ministerial Talks
April 30, 2003—Held in Pyongyang from
April 27 to 29, the North and South resolved
several issues during their 10th Inter-Korean
Ministerial Talks. Three of six points issued
to the press were particularly notable.
Firstly, the Koreas will continue efforts to
resolve nuclear disputes. Secondly, the
Koreas will maintain joint projects such as
connective railways and roads, the
Gaeseong Industrial Complex, and the Mt.
Geumgang tourism project. Thirdly, the
Koreas will hold more family reunions and
will soon construct a reunion center. (KOIS)
Aides to North Korean Refugees are
Jailed in China
May 23, 2003—After helping 48 people defect
from North Korea, Seok Jae-hyun, a newspaper photographer, and Choi Young-hoon, a
businessman, were sentenced to jail in China.
Mr. Seok and Mr. Choi received two and
five-year prison sentences. (Dow Jones)
Key Finding From Pew Charitable Trust
Country Profile of South Korea
June 2003—Post-War Attitudes
• Most South Koreans (58%) say they were
disappointed that the Iraqi military put
up so little resistance to the U.S. and its
allies. Just 26% said they were happy the
fighting was relatively limited.
• While views of the U.S. have deteriorated substantially over the past year in
most parts of the world, South Korean
views have remained mixed. Today
46% view the U.S. favorably, and 50%
unfavorably, just slightly worse than
was the case last summer.
• Of those who take an unfavorable view
of the U.S., most say it is a general
problem with America, not a more specific problem with the Bush adminis-
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tration. In most other parts of the
world, negative feelings about Bush are
cited far more often in explaining poor
evaluations of the U.S.
• Just 24% support the U.S.-led war on terrorism. This is unchanged from a year
ago, and by far the lowest level of support
of the eleven non-Muslim nations surveyed in the most recent May 2003 poll.
• Nearly three-in-ten say they have considered boycotting American products
to protest America's foreign policy, and
22% say they have actually done so.
This is by far the highest reported rate
in the non-Muslim world.
• Just over a quarter (28%) see North
Korea as a great danger to stability in
Asia and world peace, though another
41% say their neighbor poses a moderate danger to regional stability.
On Globalization and Modernization...
• Overall, South Koreans are positive on
increasing trade and business ties with
the world. Three-quarters (77%) see
this happening, and 90% say it is at
least somewhat good for the country.
• Fully 84% say "globalization" has been
good for South Korea, just 12% disagree.
• Computer use is as high in South Korea as
in any other nation polled. Fully 73% say
they use a computer on a regular basis,
and 67% go online or use e-mail. This is
comparable with usage in the U.S. and
Canada (the other highest rates), and
much higher than in Japan, where 51% say
they use a computer, and 41% go online.
• Fully 93% of respondents say they own
a cell phone, the highest rate in the 44
nations studied.
• But South Koreans are more unhappy
over the modern pace of life than people in most other parts of the world.
Six-in-ten (59%) say they dislike the
modern pace of life—a level seen in
only a few other countries. Just 36% say
they like the modern pace of life.
The Global Attitudes Project interviewed
719 adult residents of South Korea in person
from July 28–August 10, 2002 & April–May
2003. (The New York Times, www.glo.org)
U.S. Will Remove Troops from DMZ
June 5, 2003—After a two-day discussion in
Seoul, America and South Korea decided
the scheduling of the U.S. troops' pull back
from the Demilitarized Zone (DMZ). The
14,000 U.S. troops of the 2nd Infantry
Division will be sent further south, and in
their wake the U.S. will invest $11 billion to
strengthen missile and military organizations. The plan will occur over several years
and in two phases. (The New York Times)
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Trade Between North and South Increases
January 3, 2003—North and South Korea
have substantially increased their interaction due to a booming textile trade and
South Korea's increased food support.
From January to November (2002), interKorean trade increased by 56.5% over 2001
and is now valued at 675 billion won. The
number of travelers between the Koreas
has also increased. (Korea Herald)
South Korea's Economic Tie to China Grows
January 8, 2003—Currently valued at nearly $100 billion, South Korea's two-way
trade with China grew by more than 20%
last year. South Korea's promising economy and stability are credited with increasing Chinese interests. Now the fifth largest
investor in China, South Korea is expected
to invest over $1 billion in the country in
2003. While remaining North Korea's foremost trading partner, China has openly
criticized the North's nuclear buildup.
(The New York Times)
A Dramatic Decrease in South Korea's
Foreign Investment
January 8, 2003—South Korea's Foreign Direct
Investment (FDI) fell by 19.4% in 2002
amounting to a monetary loss of $9.11 billion.
The decline is attributed to a worldwide economic downturn and fears of North Korea's
nuclear weapons proliferation. (Korea Herald)
Companies Report Credit-Card Losses
February 10, 2003—Mastercard's survey of
13 Asia-Pacific countries has uncovered an
increase in consumer pessimism. Attributed
largely to the slowing economy and heavier spending, the results explain losses in
credit-card profits. The Korea Exchange
Bank Credit Service Co., independently
confirming the findings, also blamed rigid
government restrictions and a higher
delinquency rate. (The Wall Street Journal)
Major South Korean Banks Post 2002 Results
February 10, 2003—Shinhan Bank increased
its net profit by 72% to 595.9 billion won in
2002 due to its strong smaller lending loss
provisions. In turn, the bank's profits
helped its parent company, Shinhan
Financial Group increase its yearly profit
by 73% to 603.9 billion won since the bank
accounts for a large amount of the group's
assets and earnings. Shinhan Group is
Korea's fourth largest banking group.
Chohung Bank posted a 2002-year loss
of 586 billion won after posting a net profit of 522.5 billion won in 2001. Chohung
Bank said its loss is primarily due to lending money to cash strapped companies,
such as Hynix Semiconductor Inc.
However, the bank is currently setting
aside more provisions for retail sector
lending in hopes of increasing its 2003
profit to 500 billion won.
Woori Bank's parent company, Woori
Finance, also reported a fall in profits of 15%
to 586 billion won due to its loses from loan
provisions from the corporate and retail sectors. (The Wall Street Journal, Dow Jones)
GM Invests in South Korean Plants
February 12, 2003—General Motors
Corporation has announced that it plans to
invest up to $416 million this year in its
design and production facilities in its
South Korean GM Daewoo plants at
Pupyong, Kunsan and Changwon. Some
critics feel that while welcome, this amount
would not be sufficient for GM Daewoo to
produce large sized sedans or SUV's, revenue producers for rivals Hyundai and Kia
Motors. GM Daewoo, South Korea's thirdlargest automobile maker, plans to produce 400,000 more small to mid-size automobiles this year. (Reuters)
South Korea Signs its First Free Trade
Agreement
February 14, 2003—A free trade pact
between South Korea and Chile has been
signed despite protests from South Korean
farmers. According to the agreement, Chile
will dissolve all tariffs on South Korean air
conditioners, cars, computers, mobile
phones, trucks, and TV sets. In exchange,
South Korea will eliminate tariffs on
Chilean copper and agricultural goods.
(The Wall Street Journal, New York Times)
SK Group Scandal
February 19, 2003—Chey Tae Won, chief of
the SK Corporation (the centerpiece of SK
Group, South Korea's third largest conglomerate) has been arrested on charges of
insider trading. Previously, he and sixteen
other executives had been barred from
leaving the country while being investigated under suspicion of having manipulated
share prices to increase his stake in the SK
group, assuring control. The arrest is seen
as part of the new President Roh
Moo-hyun's intention to discipline the conglomerates as part of economic reform.
(The New York Times, The Wall Street Journal)
KEPCO Reports Increased 2002 Revenue
February 20, 2003—Korea Electric Power
Corporation reported that its 2002 year
profits surged 72% last year to 3.06 trillion
won due to the strengthening of the won
against the U.S. dollar, resulting in
reduced foreign debt, lower interest rates,
and the sale of its percentage in
Powercomm to Dacom Corporation. (The
Wall Street Journal, Dow Jones)
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Hyundai Scandal
February 23, 2003—The chairman of the
Hyundai group, Chung Mong Hun, and
his aide, Kim Yoon Kyu, have been banned
from leaving the country pending an
investigation into illegal payments to
North Korea. Chung has already admitted
to secretly sending $500 million to North
Korea to pay for a number of projects
before the 2000 inter-Korean summit. (The
New York Times, The Wall Street Journal, AP)
Probe into Large Conglomerates
March 3, 2003—Vowing to eliminate the
illegal trading that South Korea's prominent families use to strengthen their control of business empires, the government
of Roh Moo-hyun announced an investigation of the six largest business groups.
Samsung, LG, SK and the three groups
that were formerly Hyundai will all be
scrutinized by the Fair Trade Commission.
(The New York Times, AP)
Shipbuilding Orders Hit Record High
March 9, 2003—Combined shipbuilding
orders received by South Korean shipyards hit a record high during the first two
months of this year. South Korea was
already the world's top shipbuilder in
1999 and 2000, outstripping Japan.
Hyundai Heavy Industries is the world's
single largest shipbuilder. (Korea Times)
South Korea Ranked Number 12 in
Export Survey
March 11, 2003—According to the Korea
International Trade Association (KITA),
South Korea recently took the number twelve
spot in global export rankings with the country's trading value in thirteenth place, and its
imports in fourteenth place. (KOIS)
Samsung's Unsatisfied Shareholders
March 16, 2003—Shareholders for Samsung
Electronics Company are unhappy with
its current low dividend payouts despite
the company's past attempts to soothe
them with share buy-backs and higher
dividend payouts. Although Samsung is
one of South Korea's best companies and
has the most valuable stock, its complicated corporate structure allows Chairman
Lee Kun-hee to maintain much control
over how its affiliates are financed and
operated. This system also does not fully
inform investors of the company's
finances. Many investors therefore feel
they have no voice when it comes to management decisions. Samsung Electronics
recently announced plans to sell 52.5 million handsets this year, 12.5 million more
than in 2002. (The New York Times, Reuters)
Seoul Pushes for 20-year Loans for
Homeowners
March 17, 2003—The Ministry of Finance
and Economy plans to introduce 20-year
mortgage loans to help alleviate mounting
household debt. The ministry also urged
local banks to rollover customer debts
backed by real estate collateral. If approved
by the National Assembly, home buyers
would have to make a down payment of
20-30% periodic repayment of both interest
and capital. Home buyers with current
mortgage loans would be allowed to convert into 20-year loans. (JoongAng Ilbo)
South Korea Looks to Develop Post-War Iraq
March 21, 2003—Encouraged by the South
Korean government, Hyundai Engineering
and Construction is looking to reestablish
development projects in Iraq after war's
end. Hyundai was building supermarkets,
a hospital, and a sewage treatment plant
when the first Persian Gulf War stopped
construction in 1991. With its machinery
still in Iraq, Hyundai hopes to resume its
work. Several other small companies are
also seeking projects. (The New York Times)
Economic Reforms
March 27, 2003—The government has
announced passage of several economic
reforms including programs to curb chaebols, removal of restrictions that prevent
investment in new factories, establishment
of a national mortgage company and
establishment of a single holding company that would control Korea's three
exchanges. (The New York Times)
Prudential Acquisition
March 27, 2003—Prudential has signed a
$400 million memorandum of understanding to acquire an 80% stake in two
Hyundai group units. (Dow Jones)
South Korea Invests Most in China
April 3, 2003—Backed by 1,266 investment projects, China has more South Korean ventures
than the U.S. According to the Export-Import
Bank of Korea, the South's investment in China
exceeds that of America by $320 million.
Nonetheless, total international investment has
decreased over 50% from 2001. (KOIS)
Government Aids Credit Card Companies
April 3, 2003—The government has invested 14.55 trillion won in ailing credit card
companies in exchange for bond cancellations and capital expansion. Credit card
firms increased their capital by 4.55 trillion
won, and banks rolled over credit card
issued bonds. The South Korean government expects them to recoup profits by
June. (KOIS, Dow Jones)
Posco Opens New Steel Plant
April 3, 2003—Posco has opened a new
automotive steel plant in Gwangyang
located in southern South Korea. The company will supply 1.7 million metric tons of
tailored welded blanks to three South
Korean car manufacturers, GM Daewoo
Corporation, Ssangyong Motor Company
and
Renault
Samsung
Motors
Corporation. Negotiations are underway
with automakers in Japan and Southeast
Asia for new orders. (Dow Jones)
Kia Motor's Global Vehicle
April 7, 2003—Kia Motors Corporation's
latest SUV model, the Sorento, receives
many of its components from other parts
of the world despite the threat of terrorism
and the uncertainty of war. The company
is not unduly concerned about disruption
of its processes since many manufacturers
had already established extra measures
ensuring parts delivery. The manufacturer
feels that brand name parts such as
Michelin tires or Borg Warner drive systems will bolster its image with consumers
outside of Korea. (The Wall Street Journal)
South Korea's Moody's Rating Depends
on the North
April 8, 2003—Moody's will not change the
South Korean sovereign rating, currently
A3, unless the North poses even more
threats. The recent downgrade was due to
the North's missile testing and resumed
plutonium production. While taking
South Korea's politics into consideration,
Moody's did overlook the SK Global scandal in its judgment. (KOIS)
North Korea's Economic Status
April 11, 2003—North Korea is trafficking
massive amounts of illicit drugs, selling
missiles, and counterfeiting U.S. money in
a bid to increase its foreign currency
reserves, according to a recent defector.
Declining gross national income, poor
government management, and investment
in nuclear weapons programs as well as
severe flooding and droughts have contributed to North Korea's difficulties, creating dependency upon other countries.
With inflation at over 200%, Pyongyang
continues to revise economic policy and
now intends to sell government bonds for
the first time. (The New York Times)
SK Shareholder
April
15,
2003—Sovereign
Asset
Management, based in Monaco, now
owns 12% of the shares in SK Corporation,
the Korean refiner, making it the largest
shareholder. (The New York Times)
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Samsung Cell Phones Climb to Number
2 in Sales
May 1, 2003—Now behind only Nokia,
Samsung Electronics rose to second place in
first quarter sales of cell phones. Samsung
attributes its leap over Motorola, now third,
to its higher-level technology. (Korea Herald)
Jinro Forced into Bankruptcy
May 15, 2003—South Korea's largest distiller, Jinro, was ordered into bankruptcy
by the government in what many consider
a groundbreaking decision in favor of foreign creditors spearheaded by Goldman
Sachs. Jinro announced that it will appeal
the ruling immediately.
Jinro's troubles began in 1997 after the
company incurred $1.5 billion debt during
the Asian financial crisis. Since then, the
company has streamlined its business and
has gained an impressive 54% market share
in core business—the making of soju, the
Korean national drink. Nonetheless, creditors grew impatient. Jinro's five-year protection from paying back debts expired in
April. Goldman Sachs sued the company in
Seoul court and forced the company into
receivership, a process similar to the United
States Chapter 11. (The New York Times)
North Korea and ABB Discuss Venture
May 19, 2003—North Korea and the Swiss
engineering group Asea Brown Boveri LTD.
have signed a memorandum of understanding to update the North's electric power system. The Power Industry General Bureau, a
division of the North's Ministry of Power
and Coal Industries, commissioned the
memorandum. (Dow Jones)
South Korea's Economy Earns an A
May 28, 2003—The international rating
group, Fitch Ratings, gave the Republic of
Korea an A for its $1 billion sovereign
bond maturing in 2013. Judging the likelihood of another Korean war as small,
Fitch deemed Korea's currency stable. The
favorable assessment also hinged on the
firm handling of the 1997/98 economic crisis and the resulting recovery. (Dow Jones)
Results of the 5th Meeting of Inter-Korean
Economic Cooperation
June 5, 2003—Several agreements were
reached between North and South Korea
during their recent meeting, the fifth. The
most notable were a loan of 400,000 tons of
rice from the South to the North, common
promotion of mutual aid, and implementation of construction plans for the Gaeseong
Industrial Complex. The accords are intended to improve relations between the Koreas
through the transfer of personnel and the
mutual growth of economies. (KOIS)
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MEMBERS I N F OCUS
Board Members
RECENT CORPORATE SUPPORTERS
JANG-HAN KIM
(as of 7/16/03)
In April 2003, Mr. Jang-Han Kim became the president of the
New York office of the Korea International Trade Association
(KITA). He is also the current president of Hahn Kook Center
(U.S.A.) Inc. and a vice president for the Korean Chamber of
Commerce and Industry in the USA (KOCHAM). Before
assuming his current position at KITA, he was as a director in
the membership services bureau at KITA’s Seoul headquarters.
Prior to joining KITA in 1975, Kim had worked in Samsung Life
Insurance Co., where he began his career as an insurance
inspector. During his 28-year career at KITA, he served in various areas, including the planning and coordination department, the international affairs bureau, the Pusan branch and
the World Trade Academy. Kim also served as chief assistant to
former KITA chairman Mr. P. H. Koo. Years of overseas experience at the Tokyo and New York offices provided him extensive
knowledge of trade promotion with Korea’s major trading partners. Kim received a B.A. in economics from Young Nam
University in Korea and completed studies at the Institute for
International Studies and Training in Tokyo.
Benefactor
Fairfax, Inc.
Sponsors
American International Group • The Boeing Company
Bowater Incorporated • Citigroup • CBOL Corporation
Equinox Management Partners, L.P. • JP Morgan Chase
MetLife International • POSCO America Corporation
Poongsan Corporation • Samsung Electronics America
SK USA, Inc. • Westinghouse Electric Company
Patrons
Bando Air Agencies • Bank One* • Deloitte & Touche, LLP
Deutsche Asset Management • Goldman Sachs International
Hyosung (America), Inc. • Korea Exchange Bank
Korea International Trade Association • KPMG LLP • Lehman Brothers
PricewaterhouseCoopers LLP • Warburg Pincus
Contributors
Apple Core Hotels* • The Bank of New York* • Burson Marsteller
Cho Hung Bank • Corning Incorporated • CLSA Emerging Markets*
Foley & Lardner • Freshfields Bruckhaus Deringer LLP
Gaston Capital Management, Inc. • Industrial Bank of Korea
Kookmin Bank • LG Caltex Oil Corporation • Newsweek
Sit/Kim International Investment Associates • Woori Bank
Zephyr Management, L.P.
Corporate Member
BANK ONE CORPORATION
Headquartered in Chicago, Bank One Corporation is the sixth
largest bank holding company in the U.S., with assets of $287
billion. A leader in retail and small business banking, Bank One
serves more than 6.9 million retail households and nearly
500,000 small businesses. Bank One is also a premiere provider
of lending, treasury management and capital markets products
to corporations and middle market businesses. The third
largest credit card issuer in the United States, Bank One has
more than 50 million cards in circulation and $73 billion in
managed receivables. With $171 billion assets under its care,
Bank One is a leading investment management company.
Affiliates
ALSTOM Inc. • The Centura Group • Davis Polk & Wardwell
Epstein, Becker & Green P.C. • G-7 Group, Inc.
The Korea Development Bank* • Korea Electric Power Corporation
L-3 Communications Corporation • L-R Global Partners, L.P.
Malcolm Binks Associates, LLC • Nike, Inc.
Olympus Capital Holdings Asia
* new member
RECENT INDIVIDUAL SUPPORTERS
(as of 7/16/03)
Patron
Younghee Kim-Wait
OLYMPUS CAPITAL HOLDINGS ASIA
Sustaining
WELCOME
Since its establishment in 1997, Olympus Capital Holdings Asia
has invested more than $400 million in over 15 companies
throughout the Asia-Pacific region, including Japan, Korea,
Greater China, Thailand, India and Indonesia. Olympus
Capital’s 20 investment professionals are located in offices in
Tokyo, Seoul, Hong Kong, New York and Singapore. An active
manager with special expertise in joint ventures in the financial,
cable and agribusiness sectors throughout Asia, Olympus has
entered into partnerships with Fuji Bank, Tomen Corporation,
Korea Exchange Bank and Convergys Corporation since 1999.
The firm’s founding investor was Ziff Brothers Investments,
LLC, which is the primary investment vehicle of the Ziff family, founders of Ziff-Davis Publishing and one of the leading
active managers of family capital in the United States. Olympus
Capital now manages funds provided by a number of major
institutional investors as well as family offices from around the
world, including Sumitomo Trust Corporation, one of Japan’s
leading financial institutions; Reservoir Capital Group, a leading U.S. private investment firm; Pantheon Ventures Ltd., a
major international private equity fund-of-funds; and GE Asset
Management, the pension fund manager for General Electric
Company of the United States.
Eugene M. Ohr, Michael Quigley
Contributor
Catherine Cha, John A. Duffy, Lindel Holden, Sallie S. Kim,
Warren A. Mackey, Susan Ratigan, Edward J. Shin
Institution/Family
Arizona State University, Mindy H. Park
Individual
Misa Abe-Whang, Ei Zi Ahn, Joseph Aziz, Tina Bae, Sun-Yung Bak,
Robert Bemis, Hyosung Bidol, Terence Brennan, Susan Canaday,
Katy Carpenter, Jason Chappell, Seung Yon Cho, Jenny Choi,
Michael Choi, Chi-Yoon Chung, Jay Chung, Jura Chung,
Michael (Sung Wook) Chung, Ralph Coldiron, Donovan Cozzens,
Tom Doherty, Evelyn Doman, Michael J. Doyle, Michelle Franklin,
Vanessa Gaw, Ian Gow, Leonardo Granados, Peter C.Y. Ha,
Benjamin Han, Jongwoo Han, Lindsay Herron, Jane Hwang,
Bong Hak Hyun, So Young Jang, Cindy Jhong, Christina Jung,
Heyang Julie Kae, Walter Kang, Harry Kaplan, Diana Keh,
Massi Kemmotsu, Anthony Kim, C. J. Kim, Christina Kim, Daniel Kim,
David Kim, Gene Kim, Howard Kim, Jane J. Kim, John Kim,
Lilliana Kim, Roger Kim, Sarah Kim, Steven Kim, Thomas Kim,
Youngmee Kim, Cammie Kim Puidokas, William J. Knauer, Erica Kuo,
Mito Kuraishi, Heung Bae (Michael) Kwag, Alice F. La Brie,
David N. Lebowitz, Ann J. Lee, Benjamin Lee, Dan Lee, Elliot Lee,
John Lee, Karen M. Lee, Min G. Lee, Steven Lee, Marc Lehmann,
Susie Lim, Katherine Mah, Allan Maxwell, George F. Meierhofer,
T. James Min II, Megan Mockaitis, Bruce H. Nearon, Calvin Oba,
SuJin Oh, Chan Kyong Pak, Kyong Pak, Jessica Park,
Marilyn V. Perez, Scott Plaxin, Michelle Proffit, Sonya L. Race,
Melanie Raymond, Maryanne Rektorik, Charles Rhee, Joseph Rich,
Leslie Richardson, Brian Ripel, Neil R. Sarfati, Irina Seo,
Alexander T. Shang, Youngwon Shin, Martha Sobhani,
Eunjoo Sohn-Norling, Karen Song, Bill Tester, Rob Tommy, Jojeu
Tran, Andrew C. Venezia, Robin Wall, Brian Wang, Yalin Weng, Diane
Won, Mindy Wong, Ivan Yi, Lauren Yoo, Cecelia Yoon, J.O. Yoon
THE KOREA SOCIETY
CORPORATE MEMBERSHIP
Corporate membership affords greater access to an array of
dynamic programs and enhanced opportunities to interact with
American and Korean business leaders and policy makers. For
information on membership benefits and programs, contact
Sophia Kang, director of development and corporate affairs, at
212-759-7525 ext. 29 or [email protected].
Student
Jennifer Fung, Alice H. Kim, Isabel Lee, Jeanne Modderman,
Shirley Wong, KeyOne Yu
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in this issue...
Japan -K
Korea Economic Relations
in the New Asia
North Korea and
U.S. “Vaccine Diplomacy”

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