Korea - What Next?

It was never going to be easy!

President Lee fought his election campaign in 2007 on the basis of change. Against a backdrop of falling investment in the country. With a history of being tough minded but successful, he won the election by the widest majority achieved in a democratic South Korean election. A win which sparked a glimmer of hope amongst people in Korea and in businesses outside Korea. It brought a full email box to me from Koreans working outside Korea who were writing "At last, positive change and we would like to come back".

Fast forward to today and we have a President whose ratings in Korea have dropped to a low level. A major project, The Grand Canal, was abandoned. A waterway project that was not only going to be for practical business  use, but was potentially environmentally friendly for the most part, and would have created leisure opportunities and wet lands, although admittedly financing was an issue. And then to the import of beef, about which significant protests still abound - but is this really about beef-related health issues - or does it go wider than that?

It seems to me that this is more to do with internal issues, seeking an outlet for domestic woes like unemployment, especially amongst the young. A view clearly shared by others that I have spoken to within Korea, but who have not spoken about it publicly for fear, I guess, of being criticised. But if anything was set to derail the ambitions of President Lee in his quest to make Korea a more open and welcoming economy, then the usual media feeding frenzy on the "standard" pictures of Korean demonstrators does nothing to help.

So, what next?

From the perspective of foreign investors, existing or potential, nothing much has changed. Korea remains, to many, as being "anti-foreign" or at the very least "systemically unfriendly" to foreign investors. Views that have been confirmed by various polls of business leaders in such organisations as the UK's Institute of Directors, and by the complete omission of a mention of Korea in the International Herald Tribune in an article about foreign investors in the the region. Not once was Korea mentioned. But I prefer to think of Korea as being less anti-foreign and more pro-Korean. In others words Korean interests tend to be put, or considered above all others. And I see nothing inherently wrong with this attitude, but the reality is that if you want to be a major player on the world economic stage you cannot be perceived, in any way, as being unfriendly towards foreign business.

For Korea, to move slower than the other neighbouring economies or, worse yet, stand still means it is losing ground. Look at the region. A powerhouse economy like Japan, countries which are developing rapidly like China and India. Newly emerging economies like Taiwan, Vietnam and the "next Vietnam" - Cambodia. Established business hubs like Hong Kong and Singapore, which are constantly enhancing their offerings and, in addition to Shanghai the newly emerging Chinese cities like Tianjin, Dalian, Chengdu and Chongqing which all have serious aspirations as business hubs. 

Let's be blunt, I am concerned that Korea runs the very real risk of being marginalised.

When I first became an Adviser to President Lee I made it very clear to all who listened that for Korea to take its place on the world stage, it had to want to be there. I was not there to tell them what to do, but to provide help if I could and if it was what they wanted. The message I am receiving now is one that is divided. For the President, I believe he knows very clearly what needs to be done for his country, and for the future. For the Korean people, they have a choice. They can either see foreign participation in the domestic economy as some sort of threat...and see only the downsides. Or they can realise that such foreign interest is actually a vote of confidence in the future of Korea, and in the many talents of Koreans. It should bring employment, and a wider marketplace for the economy.

I, for one, hope it happens.

Comments

[Angela Hui]

I have a personal experience to share. I am a Rotarian and recently led a team of 24 Interactors (age 16-18) to Seoul. From the experience last week, I felt the sex gender treatment perhaps, could be another issue that has an impact on the development. I am no woman's lib, just looking for a fair ground especially when it comes to servicing the community. Yet, the display of treatment was not too welcoming.

[Rob Grool]

David, you are ever so right fearing that Korea will be marginalised, but perhaps not in the way you are thinking of. The Hebei Spirit affair (where a Korean-owned crane barge hit a tanker lying at anchor, which subsequently spilled oil and was pilloried for something the ship did not cause. Now the Captain and Chief Officer are held in custody by the Korean authorities despite having been cleared of guilt by the Korean Courts! This smacks of Gitmo Bay-tactics and it does Korea's reputation no good at all. Read the below protest of major shipping organisations against this serious breach of morality in Korea.

brgds,
Rob Grool
Wallem, Hong Kong

Shipping World Protests at Unfair Detention of Seafarers in Korea
Organisations from across the world’s shipping industry today issued a vigorous joint protest at the continuing unjust and unreasonable detention of two merchant ships’ officers from the tanker Hebei Spirit who were recently acquitted by a South Korean court as being innocent of all charges of violating the nation’s ocean pollution law, following last year’s oil spill when a floating crane collided with the Hebei Spirit.
We - the Round Table of international shipping associations (BIMCO, International Chamber of Shipping (ICS), International Shipping Federation (ISF), INTERCARGO and INTERTANKO), the International Transport Workers’ Federation (ITF), the International Group of P&I Clubs (IG), and the Hong Kong Shipowners’ Association - wish to convey to the government and authorities of the Republic of Korea our surprise, disappointment and great concern at the news that Korea’s courts have determined to continue to detain the ship’s officers, despite their acquittal, for possibly as long a year pending further hearings. Such measures appear to be unjustified, unreasonable and in contravention of the men’s rights. We strongly believe that they should be permitted to leave the country.
We remind those responsible for the continued detention of Captain Jasprit Chalwa and Chief Officer Syam Chetan, that the trial determined that another vessel which had been towing the floating crane which struck the anchored tanker was wholly responsible for the incident. Despite this finding they have continued to be detained, notwithstanding their own and their employers’ assurance that, should a further trial take place, they would attend it.
The two officers have been detained in Korea since 7 December and we believe from recent experience in similar cases that such continued unjust detention may well affect the physical and mental health of the two men. This could be avoided by permitting them to return home now to their families until such time as they are needed to assist any further investigation in Korea.
As an industry serving international society, we remain committed to protecting the environment and to the prompt and thorough investigation of accidents at sea. We are committed to bringing to justice those involved in intentional actions that may damage the marine environment.
However, we cannot and will not support the criminalisation of seafarers, nor unjust, unreasonable and unfair treatment that is contrary to the principles agreed to worldwide in the United Nations’ International Maritime Organization (IMO) and International Labour Organization (ILO) Guidelines on the Fair Treatment of Seafarers in the Event of a Maritime Accident.
We appeal to the Government of the Republic of Korea to take the necessary action to ensure that the seafarers are immediately permitted to return to their homes.
Tuesday 22 July, 2008
David Cockroft
General Secretary
ITF (International Transport Workers’ Federation)
Andrew Bardot
Executive Officer
IG (International Group of P&I Clubs)
Torben C. Skaanild
Secretary General
BIMCO
Tony Mason
Secretary General
ICS / ISF (International Chamber of Shipping / International Shipping Federation)
Roger Holt
Secretary General
INTERCARGO (International Association of Dry Cargo Shipowners)
Dr Peter Swift
Managing Director
INTERTANKO (International Association of Independent Tanker Owners)
Arthur Bowring
Managing Director
Hong Kong Shipowners’ Association

[David Eldon]

Although I have tended not to comment directly on postings, I think both the issues raised by Rob Grool and Angela Hui point to reinforcing the fact that the external perception of Korea remains unfavourable; not a happy state of affairs. We are not talking about changes in rules and regulations to make Korea more attractive, we are talking mind-set, in a culture where the "punishments and penalties for infringements" are often put in place before a business starts, leaving everyone ultra cautious, and where "tradition", in a predominantly male society is paramount. Changes are definitely being made, but it is slow progress.