Trump wants to cut troop levels in both Japan and South Korea

 (June 13) Richard Grennel the outgoing US Ambassador to Gemrany said that the 9,500 troop withdrawal from Germany was in keeping with Trump's position and that he also wants to withdrawn troops from Japan and South Korea.

Trump wants more money to pay for troops

Grennel noted that the withdrawal simply sends the signal that Trump thinks that US deployments are too costly and those countries where US troops are stationed need to pay more of the costs of supporting the troops that are there. The withdrawal from Germany was about 30 percent of the over 34,000 troops stationed in the country.

Grenell was quoted as saying: "This is a hotly contested issue in the United States. Donald Trump was very clear, we want to bring troops from Syria, Afghanistan, Iraq, from South Korea, Japan, from Germany. It doesn't feel like something that gives too powerful a message, other than Americans ... are getting a little tired of paying too much for the defense of other countries. And this has been a very political point that President Trump has made for a long time."

Polls show that the German populace would rather see US troops withdraw than face increased expenditures for their upkeep. Trump may end up still having to pay for the upkeep of the troops he withdraws without any extra funds whatsoever if the withdrawn troops return to the US.

US trying to get even more money from South Korea

The talk of US troop withdrawal comes as the US is also putting pressure on South Korea to increase its financial contributions to pay for the 28,500 strong force there under the bilateral cost sharing deal called the Special Measure Agreement. There have been months of failed negotiations.

South Korea offered considerably more to the US and already pays more than many countries but the offer did not come close to Trump's unprecedented demands. The Koreans are unlikely to give in to Trump's demands. Japan is also unlikely to accept Trump's massive new demands.

The enclosed video notes that Trump is asking for more money to sustain troops stationed in foreign countries.

South Korean president suggest DMZ be replaced by a peace zone.

South Korean president Moon Jae-in suggested that the international community commit to a peace process that would provide guarantees for North Korean security and replace the present demilitarized zone (DMZ) with an international peace area.

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The peace zone replacing the DMZ

A recent article notes: "Exactly what the practical difference would be is unclear, but Moon said it would be a peace zone “in name as well as substance,” and would evolve into its own “bridge nation that connects the continent and the ocean and facilitates peace and prosperity.”"

The peace zone would replace the 250 kilometer (155 mile) demilitarized Zone (DMZ) that has split the two Koreas for more than 60 years now. Moon claimed that the zone would provide an additional incentive for northern leader Kim Jong-un to give up nuclear weapons. Denuclearizing of the peninsula has been the focus of on-again off-again talks between the US and North Korea.

The function of the peace zone

Moon said: "The establishment of an international peace zone will provide an institutional and realistic guarantee for North Korea's security. At the same time South Korea will be able to gain permanent peace." Moon said that the new zone could provide an incentive to get the stalled peace talks active again.

Kim Jong-Un could visit South Korea

A recent article reports: "South Korea expects there is a "good possibility" Kim Jong Un could visit Busan in November, according to multiple press reports on Wednesday.Sources at the presidential Blue House expressed optimism about a Kim visit to the South, despite a lack of inter-Korea dialogue in recent months, Yonhap reported."

The visit might be related to another Trump-Kim summit later this year. Even a Kim visit to the south would indicate progress in diplomacy.

Moon's remarks were made to the UN General Assembly as reported on the appended video.

Previously published in the Digital Journal

Raid on South Korea's largest exchange upsets cryptocurrency markets

(May 11) South Korea prosecutors have reportedly raided the biggest cryptocurrency exchange in the country UPbit. The prosecutors suspect the exchange has been engaged in fraud.

According to CoinDesk in Korea, investigators are from the Prosecutor's Office of the southern district of Seoul and they searched the head office of the exchange on May 10 and 11.

The prosecutor's office said that they suspect the exchange sold cryptocurrency to customers it does not actually hold saying: "We have secured hard disks and accounting books through confiscation. Analysis is expected to take days."

The exchange confirmed that it was under investigation by prosecutors and was cooperating with them. It said that services such as transactions and withdrawals had not been affected and client assets were safe. The exchange support websitehad a notice confirming the investigation: "UPbit is currently under investigation by the prosecution, and we are working diligently. UPbit services such as all transactions and withdrawals are operating normally. Your assets are kept securely in your account, so you can rest assured that you can use UPbit services." In spite of the raid the exchange traded $1.6 billion worth of coin during the last 24 hours.

The investigation is part of an ongoing regulatory tightening on exchanges in South Korea. In March prosecutors had raided the offices of three cryptocurrency exchanges that they thought were siphoning off funds from customers' accounts. One exchange was Coinnest, the fifth largest in South Korea. Kim Ikhwan the founder as well as another executive were taken into custody in early April.

The raid on the South Korean exchange was only one of several events that roiled the cryptocurrency markets just recently. There were two other earlier events that helped the markets to tumble.

Mt Gox trustee rumoured to be unloading shares

At about 1 PM eastern time large blocks went through in bitcoin. Chatter at the time suggested that the McGox custodian who has been tasked with selling off a large number of shares from the bankruptcy of Mt. Gox was dumping shares and this led to the market taking a dip. However, as soon as the activity ceased prices began to recover.

Graphics processors NVDA's report

NVDA makes powerful processors used in mining cryptocurrencies. The company revealed that although it had sold $289 million to cryptocurrency miners in the first quarter that it expected sales to fall fully 65 percent in the second quarter. This gloomy outlook sparked a second wave of selling in the crypto market. Finally the third down trend came with the announcement of the raid on the South Korean exchange.

The present price of bitcoin

Bitcoin's price declined along with many other cryptocoins. A recent article at CoinDesk notes that the price set a three-week low of $8,713 on Bitfinex early this morning. The price managed to open just above the $9,000 mark at $9,014.61 but that is approximately the high for the day so far. The low so far today is $8,511.70. At the time of posting 16:23 UTC the price was just $8,565.86. As discussed in a recent Digital Journal article bitcoin had been trading mostly within a range from $9,000 up to near to near $10,000 but had not made a break either up or down. Perhaps the price is now breaking to the downside. However, perhaps there will be a recovery after the bad news has been digested. Present price of bitcoin can be found here.

Previously published in Digital Journal

Deal with MoneyGram may help Ripple avoid worst effects of South Korean exchange ban rumou

While talk of South Korea banning cryptocurrency trading has caused the price of top coins such as bitcoin to decline considerably this week, the price of Ripple (XRP) was back over two dollars at least temporarily.

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The performance of Ripple is due to an announced deal with MoneyGram based in Dallas, Texas. MoneyGram shares rose more than six percent following the news.

MoneyGram

MoneyGram is the second largest provider of money transfers in the world. The company operates in more than 200 countries with a global network of about 347,000 agent offices. It has a somewhat checkered history. However, it has been a thriving business of late.

MoneyGram will allow customers to send and complete cross-border payments using the token of Ripple XRP instead of fiat currencies such as the dollar. This system will allow real-time foreign exchange settlement through the coin "which gives financial institutions the ability to unlock liquidity and access multiple corridors with one pre-funded originating account".

Jack Ma, chairman of the Chinese giant Alibaba Group Holding and CEO of Ant Financial, was banned from acquiring Texas-based MoneyGram International this month and he gave up trying to buy it.

Ripple's performance

Back on December 1st last year, Ripple was trading at a little under 25 cents but by the beginning of this year it was at $2.21. It reached a high of $3.34 in January . While today it was over two dollars later in the day it dropped and is now trading at $1.92. It would seem that Ripple has not entirely escaped the negative effect of the South Korean announcement that it could ban trading in cryptocurrencies. However, just during the time I have written this, it is now above two dollars once again

South Korea has a high demand for cryptocurrencies so much so that prices of many coins are up to 30 percent higher on South Korean exchanges than those in other countries. The prices are so out of line that Coinbase decided to drop South Korean prices in determining an average price for coins.

From a relatively unimportant and unnoticed coin a few months ago, Ripple has become the third largest coin by market cap after bitcoin and ethereum's ether. Its market cap is now 76,768,530,617 as of Thursday evening. At one time it had surpassed ethereum. Two major venture capital firms Google Ventures and Standard Chartered bank have invested in Ripple.

While governments have been wary of cryptocoins, some of them are proving useful to established institutions creating a situation where governments may have conflicted attitudes about cryptocoins.

The Chinese government has banned initial coin offerings (ICOs) and shut down exchanges at least temporarily and is now cracking down on mining, but at the same time it recently awarded the TRON cryptocurrency developer an award for its technology and it has partnered with the top Chinese audio supplier Peiwo App.

The South Korean government clamp down on cryptocurrency trading and Ripple

Justice Minister Park Sang-ki said the decision to curb trading in cryptocoins is multi-departmental. The decision included members of the Finance Ministry as well as securities regulators. Sang-ki said to Reuters: “There are great concerns regarding virtual currencies and the justice ministry is basically preparing a bill to ban cryptocurrency trading through exchanges.”

Ripple had already announced last March a pilot program had been signed between two South Korean banks and a consortium of 61 Japanese banks. Ripple has deals with other banks as well. It is not clear how South Korean regulations might impact the Ripple project in South Korea.

Naeem Aslam, chief market strategist for London-based ThinkMarkets said: "Banning cryptocurrencies altogether would be difficult given that the country is one of the biggest markets in the world, especially for bitcoin and ethereum. Keep in mind that this is not the first time that the regulators have gone after the cryptocurrency market. During this week alone, we have seen two headlines emerging from South Korea aimed at bitcoin. There is no doubt that the demand for bitcoin in South Korea is massive and some elements of the public's behavior — when it comes to trading the cryptocurrencies — aren’t far from gambling habits."

Aslam said that traders should note that once the bill about cryptocurrency exchanges is drafted it will require the backing of 297 members of the National Assembly. The process he claimed could take months or even years.

Abhishek Pitti founder of Nucleus Vision a visual data company that uses blockchain technology, thinks that Ripple (XRP) will escape any South Korean ban. He notes that Ripple now has multiple institutional customers who are seriously considering using Ripple for cross border settlements. Pitti said: "I don't think South Korea is banning cryptocurrencies altogether. They are clamping down on unregulated exchanges so that shouldn't effect ripple because their primary users are regulated financial institutions.

More regulation but no bans?

No doubt governments will continue to crack down on cryptocurrencies, including unregulated exchanges, mining, and initial coin offerings. However, as interest in the coins grows and the coins have multi-billion dollar caps there would be a huge backlash against banning exchanges.

However, a new factor in the situation is the emergence of applications of the blockchain technology and cryptocurrency applied to existing financial institutions. Soon we may see some members of the financial establishment objecting to any outright ban on the exchange and use of cryptocurrencies.

Previously published in Digital Journal

South Korea bans initial coin offerings (ICOs)

(Sept. 29)The South Korean Financial Services Commission announced it will ban raising money for all forms of cryptocurrencies through initial coin offerings (ICOs). The Commission said that trading in the currencies needs to be tightly controlled and monitored.

China banned ICO's some time ago but also has closed down crtypocurrency exchanges in the country although it still allows over the counter trades between individuals. It remains to be seen whether South Korea will follow China further and also close down cryptocurrency exchanges at least temporarily. South Korea has several exchanges active in trading including bicoin.

After meeting with the Finance Ministry, the Bank of Korea and the National Tax Service, the regulator said: “Raising funds through ICOs seem to be on the rise globally, and our assessment is that ICOs are increasing in South Korea as well." He said that there would be stern penalties for financial institutions or others who try to issue ICOs. However, there were no details given as to what the penalties would be. As with the Chinese government, the South Korean regime saw the ICO's as a locus for possible financial scams. The Commission said that it would continue to monitor markets to see if additional regulations are needed.

As the quantity and scale of ICO's increase government regulators in many countries are showing concern. According to Coindesk ICO tracker data, in 2017 alone ICOs have raised $2.3 billion in funds. While some of these may be serious attempts to raise money to launch a coin others may involve quite risky plans that resemble pyramid schemes.

Many ICO's already will not accept US citizens. Only accredited investors are able to take part in private security placements. One could argue that these are not securities. A recent article explains:Once the SEC will effectively intervene in cryptocurrency ICOs – which is only a matter of time – things will get very interesting, to say the least. A lot of previous ICOs didn’t take the necessary steps to “deny” US citizens from investing. All of those projects and their teams are at the mercy of the SEC for the time being. Violating US securities laws is not something anyone wants to deal with. Additionally, these laws can also be enforced upon non-US companies, which makes it even more important to take countermeasures."SEC" stands for the US Securities and Exchange Commission. The SEC is responsible for enforcing federal securities laws and also proposes new rules. It regulates exchanges and other security activities. Those issuing IOC's are obviously worried about future SEC regulation of IOCs.

As the appended video shows, the price of bitcoin and some other cryptocurrencies dropped after the news from South Korea. This is a setback for bitcoin as it has been recovering from the effects of the Chinese announcement.

Seventy-year old Korean grandma is a You Tube and Instagram star

. In social media that often prizes youth and good lucks, Park Makrye shows off her wrinkles and her life as a senior.She is so liked by South Koreans that large companies such as Samsung are using her in ads.

Being a celebrity has not changed Makrye's life style. She still gets up at dawn to run her diner. Her videos are called Grandma's Diary. Koreans love just watching her meet up with an old friend or try pasta for the first time.

Lee Injae, 31, who  lives in the capital Seoul says: "She's real. She's not fake. It's refreshing to see the world through the eyes of a grandmother."

Park describes her life before she went on You Tube as "dead like rotten bean sprouts". She said that she used to think that at over 70 her life was over but after her appearances on You Tube she thinks life begins after seventy. Park's rise to fame hardly meets South Korean's expectations of the elderly who are often seen as being poor or as in protests promoting conservative values. South Korea has the highest rate of poverty among the elderly of any developed country. Fewer in the younger generation support their aging parents as the Confucian tradition of revering the aged loses its grip on a younger generation.

Park was encouraged by a grandaughter to start making videos. She thought it would be a way of keeping dementia at bay. Park's fans travel to her diner from far and wide even though it is in a remote part of the city of Yongin about 34 km south of Seoul. There is no easy public access to the diner.

Her granddaughter, Kim Yura, just 27 travels with Park after a doctor told the family that Park had a high risk of getting Alzheimer's disease as had happened to her three elder sisters. Kim even took Park to Australia as a treat. Many of the videos produced on the trip were popular. Park has about 400,000 followers on You tube and Instagram.

Lee Taek Gwang of Kyunghee University said: "The reason she is so popular is that she talks candidly without pretension about things that women feel uncomfortable about. She talks about topics that we don't dare to talk about, especially on women's issues." Park noted that her parents did not educate her even though they were not poor. They wanted to put me to work. However, she continues to write even though she says that her instagram posts are almost illegible. Fans dub Park;s way of expressing herself the "Makrye font".

Makrye was left on her own when her husband ran off after running up debts. She was left with three young children which is why she ended up running a restaurant until after nine every night.However, she was able to see that all three children finished high school.  Kim was the first to attend college. Park says she will continue to run the restaurant until she dies.

China wants US to withdraw THAAD missile system from South Korea

While Trump claims that China is cooperating with the U.S. in attempts to force North Korea to rein in North Korea the Chinese have urged the US and South Korea to withdraw the THAAD anti-missile system.

The Terminal High Altitude Area Defense (THAAD) system is being deployed by the U.S. in South Korea ostensibly to defend against any North Korean attacks. However, both Russia and China objected to the deployment on the grounds that it could be easily modified so as to be directed at them. Indeed it would give the U.S. first strike capacity on either country as discussed in a recent Digital Journal article.

The US is hastening the deployment of the system in South Korea moving parts to a deployment site at a former golf course about 230 kilometers south of Seoul the capital. The South Korean Foreign Ministry said: "South Korea and the United States have been working to secure an early operational capability of the THAAD system in response to North Korea's advancing nuclear and missile threat." At a daily news briefing Chinese Foreign Ministry Spokesperson, Geng Shuang urged the U.S. and China to withdraw the system saying:"China strongly urges the United States and South Korea to stop actions that worsen regional tensions and harm China's strategic security interests and cancel the deployment of the THAAD system and withdraw the equipment. China will resolutely take necessary steps to defend its interests."

However, the US may be anxious to have THAAD in place before the coming South Korean election on May 9. The front-runner is opposed to the early deployment. Moon Jae-in said there should be a delay in deployment, suggesting that the new administration should make a decision and only after ascertaining public opinion on the issue and after more talks with Washington. A spokesperson for Moon said that moving the parts into place "ignored public opinion and due process" and he demanded the work be suspended. Both front-runners in the South Korean election favor a less confrontational approach than the present government. The winner is quite likely to raise questions about the THAAD system especially as it is also objected to by China and Russia. The U.S. may be trying to have the process as much completed as possible before a new government takes power.

The move to put THAAD parts in place was met by protesters who shouted and hurled water bottles at the transport vehicles. There were lines of police holding them back. According to the Yonhap news agency the parts included two or three launchers, intercept missiles and at least one radar. There were about 8,000 police officers mobilized to keep the road open, as the main road to the site had been blocked earlier. A video showing part of the demonstration is appended.

On Wednesday the Chinese Foreign Minister Wang Yi urged that the US and South Korea end their joint exercises and that North Korea stop their nuclear program as a means of easing tensions. Yi said that North Korea's nuclear tests violated UN resolutions but that the joint U.S. South Korean military maneuvers were not in the spirit of the resolutions either. At a news conference Wang said: “Security and stability are very fragile at the moment and the danger is great of a new conflict breaking out at any time. We can’t risk even a one percent possibility of war,” he said, warning that a conflict would have “unimaginable consequences.Therefore, we call on all sides to be prudent and refrain from any actions or words that could lead to new provocations."

After an unusual and short White House briefing of U.S. Senators on the Korean situation, the Trump administration said that it aimed to push North Korea into dismantling its nuclear program through tougher sanctions and diplomatic pressure and remained open to negotiations. The U.S. has never engaged in direct negotiations on the issues with North Korea. It tells China what to do and then gets angry if this does not work. The Trump administration at least appears to be going through the motions of seeking a diplomatic solution before taking military action although no doubt all options are still on the table. The U.S. may decide to take military action before a new government is sworn in which might not be supportive of any military option. The U.S. is concerned that by some time after 2020 North Korea will have the capacity to hit the U.S. with a nuclear missile according to some experts.

A meeting of the UN Security Council on Friday chaired by Rex Tillerson is expected to discuss tougher sanctions, which according to the U.S. could include an oil embargo, banning North Korea's one airline, intercepting cargo ships and punishing any Chinese and other foreign banks doing business with North Korea. While China would like to restart international talks the U.S. thinks talks are useless until North Korea shows it is serious about denuclearization. While China may be angry that North Korea causes it such trouble, both it and Russia object to THAAD and the U.S. appears bound and determined to go ahead with its agenda anyway even though there is little sign that North Korea will be deterred by such an action.

After North Korean officials visit South high level talks set to resume

After senior North Korean officials made a surprise visit to South Korea to attend the closing ceremonies of the Asian Games, Hwang Pyong-so, regarded as the second most powerful person in the North, met with South Korea's Reunification Minister.Reports from South Korea now claim that the two sides have agreed to resume high level talks that had been suspended since last February followed by increased tensions between the two countries.
 In the North, Kim Jong-un appears to have serious health problems, and is suffering from gout. The disease runs in the family and is exacerbated by eating rich foods. The chubby North Korean leader is said to be "addicted" to Swiss Emmental cheese. Recent video footage has shown Kim walking with a limp but he has not appeared in public since Sept.3. He was not at a recent meeting of the parliament. A source told Yonhap news: "Kim Jong-un is suffering from gout, which is why he is limping on both legs. I understand that he is suffering from gout along with hyperuricemia, hyperlipidemia, obesity, diabetes and high blood pressure."
 A think-tank based in Seoul South Korea North Korea Intellectuals Solidarity (NKIS) suggests that Kim Yo-jong, Kim Jong-un's younger sister, could be leading the country during the illness of her brother. A source told NKIS that the Political Bureau of the ruling party decided to give Kim extended medical treatment at a recent meeting. They also decided that officials should carry out Kim's previous orders and that both the party and army should be on war time alert while Kim is unable to perform his duties due to his medical condition. Finally, the party decided that important matters of government administration should be reported to Kim Yo-jong to allow Kim to concentrate on improving his health. One senior North Korean official has denied that Kim has any health problem.
 The first official mention of Yo-jong was March 9 this year as she accompanied Kim Jong-un as they voted for the Supreme People's Assembly. She was described then as a senior official of the Central Committee of the Workers' Party of Korea. The head of NKIS Kim Heung-gwang claims: “Some say Hwang Byong-so, director of the General Political Bureau of the Korean People’s Army, may have assumed new No. 2 status, but given what has been confirmed this time, we can say Hwang is just a shadow, and Kim Yo-jong is the second-in-command of North Korea,”
 Whoever is in charge, North Korea seems to be making moves to improve relations with the South. So Se Pyong, the North Korean ambassador to the UN, said on Friday that the North was also ready to resume talks on its nuclear program and that there were no plans for any missile or nuclear tests.

South Korean pop star PSY: Gangnam Style (Video)

"Gangnam Style" is popular Korean single by Korean musician PSY. The music video has been praised for its catchy rhythms and the unique dance moves.

As of today the music video appended had over 284 million views! This is You Tubes' most watched K-pop video so far. K-pop refers to Korean popular music a genre that includes dance, hip hop, R and B, and other pop music originating in South Korea. A popular subculture has also grown up around the music among young people globally.

Many celebrities have shared the video on the internet including: Britney Spears, and Tom Cruise. The video has even been featured in the Wall Street Journal, and Financial Times! By early this month the video had also generated "Gangnam Style" flash mobs in a number of cities around the world. Inevitably reaction and parody videos appeared including one by The Oregon Duck, another by a group from the US. Naval Academy and, last but not least, by the North Korean government. PSY brought his dance to The Today Show, The Ellen DeGeneres Show among other locations. The song has topped iTunes Charts in 31 countries including the U.S. and Canada.

"Gangnam Style" refers to a lifestyle linked to the Gangnam district in Seoul. People there are supposedly hip, trendy, and "classy" and live a lavish lifestyle. From the video this would seem to involve having horses! The PSY single is a takeoff on the style. For those of you who do not understand Korean I append below an English translation of the lyrics:

Oppa is Gangnam style

Gangnam style

A girl who is warm and humanle during the day

A classy girl who know how to enjoy the freedom of a cup of coffee

A girl whose heart gets hotter when night comes

A girl with that kind of twist

I’m a guy

A guy who is as warm as you during the day

A guy who one-shots his coffee before it even cools down

A guy whose heart bursts when night comes

That kind of guy

Beautiful, loveable

Yes you, hey, yes you, hey

Beautiful, loveable

Yes you, hey, yes you, hey

Now let’s go until the end

Oppa is Gangnam style, Gangnam style

Oppa is Gangnam style, Gangnam style

Oppa is Gangnam style

Eh- Sexy Lady, Oppa is Gangnam style

Eh- Sexy Lady oh oh oh oh

A girl who looks quiet but plays when she plays

A girl who puts her hair down when the right time comes

A girl who covers herself but is more sexy than a girl who bares it all

A sensable girl like that

I’m a guy

A guy who seems calm but plays when he plays

A guy who goes completely crazy when the right time comes

A guy who has bulging ideas rather than muscles

That kind of guy

Beautiful, loveable

Yes you, hey, yes you, hey

Beautiful, loveable

Yes you, hey, yes you, hey

Now let’s go until the end

Oppa is Gangnam style, Gangnam style

Oppa is Gangnam style, Gangnam style

Oppa is Gangnam style

Eh- Sexy Lady, Oppa is Gangnam style

Eh- Sexy Lady oh oh oh oh

On top of the running man is the flying man, baby baby

I’m a man who knows a thing or two

On top of the running man is the flying man, baby baby

I’m a man who knows a thing or two

You know what I’m saying

Oppa is Gangnam style

Eh- Sexy Lady, Oppa is Gangnam style

Eh- Sexy Lady oh oh oh oh

Koreas: DMZ zone refuge for endangered species

An entirely unexpected collateral good that arises from the DMZ zone between North and South Korea is a refugee zone for endangered species. It is as an article in Al Jazeera puts it a green ribbon of hope.

The DMZ is home to many species that are either entirely extinct or endangered in the rest of the peninsula. The zone has become the center of attention for those on both sides of the DMZ and even overseas who are intent on preserving the Korean natural heritage.

The Korean natural heritage has been destroyed by over a century of occupation, conflict, and economic development. The Japanese occupation between 1905 and 1945 led to massive deforestation, pollution and a general environmental decline. THe 1950-53 Korean war added to the environmental mess. However, rapid economic development since has also degraded the environment.

Created in 1953 the DMZ has provided sanctuary for many species for half a century now. Almost 100 species of fish, 45 types of amphibians and reptiles and more than 1000 insect species are thought to inhabit the zone. There are constant reports of rare species being spotted in the zone.

Many worry about the future of the zone should the Koreas reunify. Moves are being made to ensure that the zone remains a nature preserve.

Already a crane preservation area is being developed along the Han River estuary. The South Korean government has designated an area a national monument in 1976. A second conservation area has been the result of international cooperation by scientists in Japan, North Korea, and elsewhere and has been approved by the North Korean government.

Many groups are trying to have the DMZ recognised as a permanent reserve and cultural site. Scientists from North and South Korea, Japan and the U.S. have all worked together to help preserve the DMZ so that many animal species can live safely in the area. Surely it should be possible to humans to live in the areain safety as well. For much more detail see the entire article here.

South Korean industrial production declines

Demand in the construction and service sector led to output shrinking .4 per cent from October. The results were worse than many analysts had predicted.


THe biggest declines were spending on equipment in construction but also in the service industry. Demand may be slowing because of high household debt in South Korea. However, the general global slowdown also is having an impact as the South Korean economy is export oriented.


The Bank of Korea reports that the manufacturing sentiment index has fallen to a record low level. Manufacturers are worried about the global economic slowdown. The index fell from 83 to 79 from last month. This is the worst outlook since 2009.


The figures look less gloomy when compared on a yearly basis. For example, industrial output in November this year was up 5.6 per cent over last November. For more see this article.

In South Korea poverty and gap between rich and poor is growing

I am sure that the trend exhibited here is not just evident in South Korea. However, South Korea is often thought of as doing very well and hence people think that there will be less poverty. The gap between rich and poor is also growing in the US.


Poverty nearly doubled in the last decade

Economic disparities rise to record high as the rich get richer

With the middle class fast deteriorating, the nation`s poor population has nearly doubled in a decade to 2006, the Korea Institute for Health and Social Affairs said yesterday.

The state-run think tank said the "poor" class, defined as those earning less than half of the average national income, accounted for over 20 percent of the total population last year, up almost 9 percentage points from 1996.

The middle class tumbled to 43.7 percent last year from 55.54 percent a decade ago, indicating that about a quarter of middle class households were financially crippled over the decade.

But the "rich" class, defined as those earning over 50 percent or more than the average national income, jumped to 25 percent from 20 percent, according to the KIHASA.

The diverging data reflects Korea`s growing income gap between haves and have-nots.

The income gap between rich and poor households widened to a record level last year, the National Statistical Office said.

The top 20 percent of Korean households earned 7.64 times more than the bottom 20 percent, far above the earning gap in major European economies and Japan.

The Gini index, a barometer of income inequality, also rose to a record high of 0.351 for 2006, the NSO noted.

The KIHASA data showed the economic disparities are also hurting the population`s health.

Only 22 percent of the bottom 10 percent of the population was found to be healthy in a 2005 survey, down from 35 percent in 1998.

Park Jong-kyu, a research fellow with the Korea Institute of Finance, called on the poor households to cut down expenses to curb the growing deficits.

He pointed out that Korea`s bottom 10 percent earners had spent 50 percent more than their income in recent years, far above Japan`s lower class, who spends around 80 percent of their income.

"We should consider whether the poor class overly relied on debt rather than tightening spending," Park said in a report.

"It is important to create jobs through spurring growth and to restore the middle class to help the poor people recover from chronic deficits."

(kkt@heraldm.com)

By Ko Kyoung-tae