1) President Moon Jae-in of South Korea faces challenges in implementing his policy agenda due to his party lacking a majority in the National Assembly, forcing cooperation with opposition parties.
2) Moon aims to redistribute spending towards welfare, education, and labor to address unemployment and inequality, but deep-rooted issues around South Korea's large conglomerates and SMEs may inhibit structural reform.
3) Geopolitically, Moon takes a conciliatory approach towards North Korea but is constrained by its nuclear ambitions and sanctions. Strained relations with China following THAAD deployment also impact South Korea economically and geopolitically.
China Analysis - Third Plenary Session of the 18th Party CongressBrunswick Group
Brunswick’s team in China have put together an overview of some of the key take-aways from the Third Plenary Session of the 18th Party Congress. This is a critical meeting in the Chinese political cycle and the output from this specific meeting will influence the country’s economic development over the next five-to-ten year period. It also marks one year in office for Xi Jinping and the new leadership team.
Why Macroeconomic Structural and Wage-Price Indicators are Puzzling the Polic...Economic Policy Dialogue
This commentary tries to answer the puzzling questions – why there is a disconnect between inflation and unemployment, unemployment rate and wage rate, monetary policy rate stance and real economy, economic buoyancy and price-wage indicators; and also, why the neutral interest rate and the natural unemployment rate are declining. It points out that the official data do not represent the structural realities of the economy. As the official measurements have been deviating more from the social and economic facts, the economic indicators have tended to become less predictable and applicable.
Based on the data of Japanese Prime metropolitan area from 1955 to 2013, this paper studies the effect of industry agglomeration and population aggregation on economic growth in Tokyo metropolitan area. Through the processing of the panel data, we find that the industry agglomeration in Japanese Prime metropolitan region has apparently positive impacts on its economic growth, and also, population aggregation can positively effects its economic growth. Following this paper is try to carry out research on Tokyo —the core city of Japanese Prime metropolitan area, to study the influence of industry agglomeration on its economic growth. This paper thinks that in the process of the development of the city group, due to resource constraints, the manufacturing output unit of land demand big industry will gradually from the degree of economic development is relatively high in the whole city and the city to evacuate, inside, labor resources are gradually to the regional flow of high GDP per capita output.
China Analysis - Third Plenary Session of the 18th Party CongressBrunswick Group
Brunswick’s team in China have put together an overview of some of the key take-aways from the Third Plenary Session of the 18th Party Congress. This is a critical meeting in the Chinese political cycle and the output from this specific meeting will influence the country’s economic development over the next five-to-ten year period. It also marks one year in office for Xi Jinping and the new leadership team.
Why Macroeconomic Structural and Wage-Price Indicators are Puzzling the Polic...Economic Policy Dialogue
This commentary tries to answer the puzzling questions – why there is a disconnect between inflation and unemployment, unemployment rate and wage rate, monetary policy rate stance and real economy, economic buoyancy and price-wage indicators; and also, why the neutral interest rate and the natural unemployment rate are declining. It points out that the official data do not represent the structural realities of the economy. As the official measurements have been deviating more from the social and economic facts, the economic indicators have tended to become less predictable and applicable.
Based on the data of Japanese Prime metropolitan area from 1955 to 2013, this paper studies the effect of industry agglomeration and population aggregation on economic growth in Tokyo metropolitan area. Through the processing of the panel data, we find that the industry agglomeration in Japanese Prime metropolitan region has apparently positive impacts on its economic growth, and also, population aggregation can positively effects its economic growth. Following this paper is try to carry out research on Tokyo —the core city of Japanese Prime metropolitan area, to study the influence of industry agglomeration on its economic growth. This paper thinks that in the process of the development of the city group, due to resource constraints, the manufacturing output unit of land demand big industry will gradually from the degree of economic development is relatively high in the whole city and the city to evacuate, inside, labor resources are gradually to the regional flow of high GDP per capita output.
The paper examines neoclassical measures to evaluate government policy in transition countries: 1) marginal factor prices and the return to capital, 2) growth rates and taxes, 3) inflation rates, and 4) debt/GDP ratios, related to international real business cycle and endogenous growth theory. It further postulates a way to consider the debt/equity position of the government, related to a risk-yield framework. This gives a potentially more useful indicator than the debt/GDP ratio alone. Empirically these measures are examined in an illustrative way for a set of Central European countries plus Germany and the US for comparison, for the period of 1990-1998, using an internally standardized data set from the on-line International Financial Statistics.
Authored by: Max Gillman
Published in 1999
Deloitte 2014: Global Powers of Luxury GroupsDigitaluxe
Deloitte presents the first annual Global Powers of Luxury Goods. This report identifies the 75 largest luxury good companies around the world based on publicly available data for the fiscal year 2012.
An international comparison suggests that the share of private services in terms of output and employment is rather low in Finland. This feature raises several interesting questions.
What explains this particular feature of the Finnish production structure? How has the great depression of the early 1990s influenced the structure of private services in Finland? What kind of policy measures could be implemented in order to increase the share of private services from a long-run perspective? Finnish service employment also contains a number of other interesting particularities in an international comparison.
Within a corporatist framework, these include a rather large public sector employer, high
female participation rate, but on the other hand a low share of part-time work.
Las economías de la eurozona recuperan su velocidad de crecimiento. La mejora iniciada este año alcanzó un +0,4% en el primer cuatrimestre, y actualmente ha superado el crecimiento de USA y UK en el mismo periodo.
A Theoretical Statistical Measurement Model Analysis on Human Capital Economi...paperpublications3
Abstract: The purpose of this paper is to examine the main issues which effect the economic growth and the poverty in Bulgaria in relation with rate of human capital growth.
The assumption that in the modern world poverty isn’t a concept associated with the shortage of income is grounded. At its core the poverty is an expression of lack of opportunities for the person. The interest in it is completely understandable, because poverty is perceived as the most important social problem, in which all significant existential questions and challenges to the social sciences are focused virtually.
MYANMAR'S STALLED TRANSITION
https://www.crisisgroup.org/asia/south-east-asia/myanmar/296-long-haul-ahead-myanmars-rohingya-refugee-crisis
Myanmar's State Counsellor and Foreign Minister Aung San Suu Kyi looks on during the 9th ASEAN UN Summit in Manila, Philippines, 13 November 2017. REUTERS/Linus Escandor Ii/Pool
BRIEFING 151 / ASIA 28 AUGUST 2018
Myanmar’s Stalled Transition
Aung San Suu Kyi’s government appears stuck amid international condemnation of the Rohingya's mass displacement and domestic unease about the economy. To nudge Myanmar’s post-junta transition forward, the UN should combine engagement with pressure for accountability for crimes against humanity and eventual refugee return.
MYANMAR'S STALLED TRANSITION
https://www.crisisgroup.org/asia/south-east-asia/myanmar/296-long-haul-ahead-myanmars-rohingya-refugee-crisis
Myanmar's State Counsellor and Foreign Minister Aung San Suu Kyi looks on during the 9th ASEAN UN Summit in Manila, Philippines, 13 November 2017. REUTERS/Linus Escandor Ii/Pool
BRIEFING 151 / ASIA 28 AUGUST 2018
Myanmar’s Stalled Transition
Aung San Suu Kyi’s government appears stuck amid international condemnation of the Rohingya's mass displacement and domestic unease about the economy. To nudge Myanmar’s post-junta transition forward, the UN should combine engagement with pressure for accountability for crimes against humanity and eventual refugee return.
The paper examines neoclassical measures to evaluate government policy in transition countries: 1) marginal factor prices and the return to capital, 2) growth rates and taxes, 3) inflation rates, and 4) debt/GDP ratios, related to international real business cycle and endogenous growth theory. It further postulates a way to consider the debt/equity position of the government, related to a risk-yield framework. This gives a potentially more useful indicator than the debt/GDP ratio alone. Empirically these measures are examined in an illustrative way for a set of Central European countries plus Germany and the US for comparison, for the period of 1990-1998, using an internally standardized data set from the on-line International Financial Statistics.
Authored by: Max Gillman
Published in 1999
Deloitte 2014: Global Powers of Luxury GroupsDigitaluxe
Deloitte presents the first annual Global Powers of Luxury Goods. This report identifies the 75 largest luxury good companies around the world based on publicly available data for the fiscal year 2012.
An international comparison suggests that the share of private services in terms of output and employment is rather low in Finland. This feature raises several interesting questions.
What explains this particular feature of the Finnish production structure? How has the great depression of the early 1990s influenced the structure of private services in Finland? What kind of policy measures could be implemented in order to increase the share of private services from a long-run perspective? Finnish service employment also contains a number of other interesting particularities in an international comparison.
Within a corporatist framework, these include a rather large public sector employer, high
female participation rate, but on the other hand a low share of part-time work.
Las economías de la eurozona recuperan su velocidad de crecimiento. La mejora iniciada este año alcanzó un +0,4% en el primer cuatrimestre, y actualmente ha superado el crecimiento de USA y UK en el mismo periodo.
A Theoretical Statistical Measurement Model Analysis on Human Capital Economi...paperpublications3
Abstract: The purpose of this paper is to examine the main issues which effect the economic growth and the poverty in Bulgaria in relation with rate of human capital growth.
The assumption that in the modern world poverty isn’t a concept associated with the shortage of income is grounded. At its core the poverty is an expression of lack of opportunities for the person. The interest in it is completely understandable, because poverty is perceived as the most important social problem, in which all significant existential questions and challenges to the social sciences are focused virtually.
MYANMAR'S STALLED TRANSITION
https://www.crisisgroup.org/asia/south-east-asia/myanmar/296-long-haul-ahead-myanmars-rohingya-refugee-crisis
Myanmar's State Counsellor and Foreign Minister Aung San Suu Kyi looks on during the 9th ASEAN UN Summit in Manila, Philippines, 13 November 2017. REUTERS/Linus Escandor Ii/Pool
BRIEFING 151 / ASIA 28 AUGUST 2018
Myanmar’s Stalled Transition
Aung San Suu Kyi’s government appears stuck amid international condemnation of the Rohingya's mass displacement and domestic unease about the economy. To nudge Myanmar’s post-junta transition forward, the UN should combine engagement with pressure for accountability for crimes against humanity and eventual refugee return.
MYANMAR'S STALLED TRANSITION
https://www.crisisgroup.org/asia/south-east-asia/myanmar/296-long-haul-ahead-myanmars-rohingya-refugee-crisis
Myanmar's State Counsellor and Foreign Minister Aung San Suu Kyi looks on during the 9th ASEAN UN Summit in Manila, Philippines, 13 November 2017. REUTERS/Linus Escandor Ii/Pool
BRIEFING 151 / ASIA 28 AUGUST 2018
Myanmar’s Stalled Transition
Aung San Suu Kyi’s government appears stuck amid international condemnation of the Rohingya's mass displacement and domestic unease about the economy. To nudge Myanmar’s post-junta transition forward, the UN should combine engagement with pressure for accountability for crimes against humanity and eventual refugee return.
1Running head INTERNATIONAL BUSINESS PRACTICESMGM3552.docxeugeniadean34240
1
Running head: INTERNATIONAL BUSINESS PRACTICES
MGM355 2
MGM355-1403B-02
International Business Practices
Roderick D. Goodrum
Individual Project Phase 5
Colorado Technical University
Instructor: Lester Willis
09/17/2014
Introduction
Establishment of a business in a foreign land depends on strict evaluation and analysis of various factors inclusive of; the barriers to entry in the foreign nation, the legal systems, customer base, potentiality of growth, economic performance, and the cultural framework of the natives there. Failure to scrutinize such factors might impact success of the business negatively (Schill, 2014). This paper discusses the factors that a regional bank needs to consider before expanding into a foreign nation, China for this case. It uses Union Bancshares (UNB), a Californian based regional bank as an example.
Possible challenges in the new environment
This may be analyzed in three perspectives; educational discrepancies, cultural differences, and other social demographics. Culture refers to the values and norms held by members of a given society; the good and the bad defined by a society. Cultural conflict is felt a great depth in the work place, if the workers therein are from different ethnic origins. For UNB to ensure it gains a positive reputation in the public sector, the company’s management will need to employ workers from diverse cultural setups. Despite this move being positive in some way, the conflicts arising in the work place due to differing cultural expectations might hamper work progress negatively leading to poor performance. Another challenge is education level of potential employees within the locality within which the company plans to establish itself. Specific technical personnel might be inadequate in China compelling UNB’s management to outsource workers from far geographical locations, this is a costly process.
Legal and political environments
The legal systems in China are flexible rather than static. This poses a great challenge to foreign investors since laws regarding foreign investors might change negatively at the time of their investment. In People’s Republic of China, laws governing the business sector are made in the National People’s Congress (NPC) and the judicial system is vested with the power of ensuring all parties comply. When making a foreign direct investment, the first step is to describe in detail the pros and cons of the business to China’s economy, if the pros exceed the cons then the business is listed under the permitted category as long as all other factors have been fully satisfied. China is a politically stable nation despite its long term poor relation with Taiwan. This is a positive indicator for UNB since business operations are not likely to be disrupted due to political clash.
Government involvement in the private sector
A comparison to the US business practice is made to gauge the level with which the government intervenes in private businesses in Peop.
Our monthly coverage of the Americas includes a new report on Chile, where President Michelle Bachelet continues
to make progress on fulfi lling her ambitious campaign promises, but an economic slump has contributed to the steady
erosion of her popular support. With her net approval rating now negative, the window securing approval of key
elements of the reform
This article aims to show how 3 countries in Asia (Japan, South Korea and China) have promoted their development and thus to demonstrate the absurd neoliberal economic policy of Michel Temer government in Brazil that seeks to limit public spending over the next 20 years to create the economic environment necessary for attracting private investors and, consequently, boost economic and social development of Brazil. In practice, Temer government believes that private market forces are more capable than the developmental role that his government could make to boost the Brazilian economy. The economic policy of the Temer government is diametrically opposed to those adopted by Japan, South Korea and China that have in the state key role in the development of these countries in the second half of the 20th century.
It is recognized that the trend of political appointment to public offices at the Federal, State and Local Government levels in African democracy cannot be stopped. Of course, politicians have to service their political associates, interest and network. Rather than delving into the unending debate of who should be appointed and who should not- a question that cannot defy political considerations, the author argues that with the setting of Specific, Measurable, Achievable, Realistic and Time-bound (SMART) goals for the political appointees in different ministries, department and agencies, governance can become more effective, result oriented and optimal in achievement of development. This formed the basis for the Target Based Governance Model which was developed by the Author. To test the validity of the TBG Model, a survey was conducted with a focus on two groups, a controlled group of 10 persons who were given SMART targets to carry out. The second group, an uncontrolled group were only given goals to achieve. At the end of the survey, it was observed that 67% of those in the controlled group were efficient in achieving the goals while only 13% of those in the uncontrolled group poorly achieved their goal. The data formed the basis for the TBG model assessment, discussion and recommendation for improved governance in Africa.
Business Environmental AnalysisPart III4. Give your team’s recVannaSchrader3
Business Environmental Analysis
Part III
4. Give your team’s recommendation on how to respond to the opportunities and threats (no response may be valid if you can justify it)
In section entails external forces that affect the operations of the company by providing opportunities and threats. Opportunities are positive chances created by external factors that a company can utilize and earn a competitive advantage while threats are negative conditions created by external forces that can affect the companies operation. For Nike Company, there are several environmental forces that will affect the company either positively or negatively. In order to analyze the macro-environmental factors that will affect Nike Company, PESTEL analysis will be used; thus the factors to be analyzed will be; political factors, economic factors, social factors, technological factors, environmental factors, legal factors and ethical factors (Okoye 2017).
9.Make a go/no go decision if the firm should pursue this international opportunity and why
Political factors involves the degree to which a government intervenes in the economy and this can include; government policies, political stability or instability in foreign markets, tax policy, foreign trade policy environmental laws, labor laws and trade restrictions among others. Secondly, economic Factors are factors have a significant impact on how a firm does business and also determines the profitability and includes; economic growth, exchange rates, inflation and interest rates among others. Thirdly are social factors which involve beliefs and attitudes of population and includes population growth, age distribution, career attitudes among others. The fourth aspect is Technological factors which affect marketing and management by deriving new ways of production and distribution of goods and services and also new ways of accessing and communicating with target markets. Environmental factors are also important due to factors such as carbon footprint targets set by governments, scarcity of raw materials and operating business as an ethical and Sustainale Company. Also, there are legal issues which include advertising standards, product labeling and product safety, consumes rights and laws among others. Finally, ethical factors which involves issues such as fair trade, slavery acts and child labor among others
Opportunities
· Opportunities that exist for Nice Company includes;
· Political stability in most countries they perat in
· Lack of trade restrictions
· Many people believes that they are among the top in the market hence people have positive attitude towards their products
· Many football cubs are continuously being formed hence providing continuous market expansion.
· Many young people are currently opting to shift their careers to sports.
· Increased advancement in digital marketing technologies
· Advancement in online purchases
Threats
· Political instability in other countries
· Broad economic uncertainty.
· High ...
One of the best ways to learn a concept is to teach a concept, and i.docxcarlibradley31429
One of the best ways to learn a concept is to teach a concept, and in this assignment it will be necessary for the learner to understand and explain the concepts from
Modules 1
and
2
in a 7–10-slide PowerPoint presentation. The Internet will be a great resource for completing this assignment because the learner can use keyword phrases to pull the specifics needed to cover the topics and complete the assignment.
You have been asked to create a PowerPoint presentation to train a group of new employees for Future Trends Financial Firm on key concepts of emerging markets. Include the following in your presentation:
Identify and explain key concepts of emerging technologies, highlighting their use and availability for emerging and developed markets.
Define and describe common industry concepts including: institutional voids, business groups, technological capabilities, changing income distribution, and bottom of the pyramid. Please be sure that the correlation between concepts and various markets is appropriate.
Develop a 7–10-slide presentation in PowerPoint format, utilizing at least two scholarly sources. Apply APA standards to the citation of sources.
Make sure you write in a clear, concise, and organized manner; demonstrate ethical scholarship in accurate representation and attribution of sources; display accurate spelling, grammar, and punctuation.
Information from Module 1:
In
Module 1
, you will begin your journey into understanding the concept of EMs. This module’s discussion question and assignment are both designed to help in building the foundation knowledge of understanding EMs.
What is an EM? According to Investopedia (n.d.), an EM is, “A nation's economy that is progressing toward becoming advanced, as shown by some liquidity in local debt and equity markets and the existence of some form of market exchange and regulatory body” (para. 1).
EMs surfaced in the 1970s as
less developed economies
. Countries that are considered EMs possess certain distinguishing traits. Some of the common traits are:
Demanding culture
High rates of immigration
Fragmented market
Growing youthful population
Investors are shifting their investments to EMs because of their potential long-term growth rate (Johnston, 2011). One of the main reasons EMs are rapidly growing is due to the countries' visible economic advancements. According to EPFR Global, a fund tracking company, investors invested more than $50 billion into EMs in 2012 (Bloomberg Businessweek, 2013).
Investopedia. (n.d.).
Emerging market economy
. Retrieved from
http://www.investopedia.com/terms/e/emergingmarketeconomy.asp
Johnston, M. (2011, November 23).
5 factors to consider in choosing an emerging markets ETF
. Retrieved from
http://seekingalpha.com/article/309867-5-factors-to-consider-in-choosing-an-emerging-markets-etf
Bloomberg Businessweek. (2013, January 31).
The top 20 emerging markets
. Retrieved from
http://images.businessweek.com/slideshows/2013-01-31/the-top-20-emergi.
Similar to Future Watch: Moon shining? Korea’s renewal and agenda for the future (20)
Future Watch summary: Future growth opportunities in global biobanks marketTeam Finland Future Watch
This Future Watch report compares the current status of forerunning biobanks in Finland, Denmark, Sweden, UK and USA, analyze the needs and views of key biobank customer segments as well as offer key recommendations for Finnish biobank to gain a larger footprint in the biobank market.
ASEAN is increasingly becoming a vital economic force in Asia and a driver of global growth with a young, abundant workforce. Simultaneously, the region is witnessing significant productivity improvement in sectors such as manufacturing, retail, telecommunications and transportation.
The presentation is a summary presentation from a study Situational Awareness Solutions which collects together use cases for situational awareness capabilities and prioritizes these in context of user perception and readiness, availability and accessibility of technology, ease and likelihood of adoption, as well as regulations and competing substitutes. Finally it analyzes the relevance of assessed use cases to United States, Germany and Japan. The application areas discussed cover, amongst other, ecology and environment, disaster management, logistics and transport as well as critical infrastructure management.
Recent technology developments in the information technology space have opened new horizons for the maritime industry. "Digital ports" refers to application of digital technologies of digital technologies such as machine learning, data analytics, visualization, cloud and advanced wireless communications technology to the Port Ecosystem that are driving innovations and enabling business efficiency.
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Business Finland and Future Watch commissioned a study on the landscape of developments that will impact the delivery of Health & Wellbeing, to better understand the anticipated transformations, impacts and opportunities to support its strategy for ensuring Finland is well positioned to take advantage of such trends and to help drive better decision making for all stakeholders in Finland. Results of the study are published and discussed with stakeholders and companies in Business Finland’s Smart Life Finland program webinars.
The Hong Kong government supports smart city operations and smart lamp post related actions. Smart lamp posts together with 5G can encompass various industries and thus can offer opportunities also for Finnish companies. Hong Kong aims to become a “world class smart city”. In ”Hong Kong Smart City Blueprint” smart lamp posts are mentioned as one action point and 50 smart lamp posts should be in use by the summer of 2019. The figure is set to rise to 400, and during 2019, a tender will likely be opened for the remaining 350 smart lamp posts. Smart lamp posts can serve several different functions and these are currently experimented in Science Park and the Smart City Pilot Area.
Japan is the second-largest retail market globally. For decades Japanese consumer’s preferences and cultural trends have been influential trend setting phenomenona. To understand how global consumer trends are transforming, it is important to look Japanese consumers behavior and attitudes towards consuming. Today we see behavior shifting. The change of Japanese consumers is not only about what people in Tokyo buy, but also how and what they think when they make decisions for purchases.
Future Watch report and analysis of consumer trends and lifestyles in Japan was done in collaboration with Euromonitor International’s Tokyo office researchers.
A new policy on energy transition was commenced in Taiwan to phase out nuclear power and to introduce substantial power generation capacity from renewable sources by 2025. This transition of energy source and structure represents not only great challenges for Taiwan but also immense business opportunities for industrial developed countries.
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Both India's Space and Cyber Defence areas contain gaps to keep up with global development. India’s space defence program is guided by policies to counter the capabilities of China and Pakistan. While India has made long strides with cost effective mission to Mars and a successfully launching record number of satellites, there are several gaps in its space defence. While in the space communication arena, at present, India has extremely limited space-based COMINT (Communications Intelligence) capabilities. Cyber security of satellite communications is another arena for potential collaboration between countries. Also, to achieve complete control of satellite communications & intelligence C4ISR, India needs to have a constellation of satellites in the space with extreme communication technology at disposal. In the Space Situational Awareness area India needs radar-independent tracking methods such as lasers, coherent infrared sensors and space systems with a sole purpose of tracking the functional capabilities of suspected/rogue satellites with military connect.
In cyber-security area, according to Gartner, cyber-security in India is growing to be a $1.5 bn market by 2019 & forecasted to grow over 19% during 2018-2023. Average spend on cyber security is currently at ~3% compared to a global average of 10-15% of the IT budget. India would need a trained pool of million professionals in cyber-security by 2025.
Lecture slide titled Fraud Risk Mitigation, Webinar Lecture Delivered at the Society for West African Internal Audit Practitioners (SWAIAP) on Wednesday, November 8, 2023.
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
what is the future of Pi Network currency.DOT TECH
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Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
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4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
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7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
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Webinar Exploring DORA for Fintechs - Simont Braun
Future Watch: Moon shining? Korea’s renewal and agenda for the future
1. Future Watch – Strategy Brief
Written by
Moon shining? Korea’s renewal
and agenda for the future
January 2018
2. Future Watch – Strategy Brief
This report was written by The Economist Corporate Network and commissioned by Business Finland. The
findings and views expressed in this report are those of the Economist Corporate Network alone and do not
necessarily reflect the views of the sponsor.
At Business Finland, we create new growth by supporting companies to go global, as well as funding innovations. Our top
experts speed up the identification of business opportunities around the world and help transform them into global success
stories. Future Watch is part of TF Market opportunities service and it provides actionable insights from our global network
for Finnish businesses and stakeholders. More information at www.marketopportunities.fi
Contact information
dfasdf
Dr Florian Kohlbacher
Director
Economist Corporate Network, North Asia
The Economist Group
Yurakucho Denki Building North Tower 15/F
1-7-1 Yurakucho, Chiyoda-ku
Tokyo 100-0006 Japan
+81 (3) 5224 6113
floriankohlbacher@economist.com
Economist Corporate Network is The Economist Group’s advisory service for senior executives seeking insight
into economic and business trends in their key growth markets.
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3. Future Watch – Strategy Brief
3
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4. Future Watch – Strategy Brief
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4 Report highlights
A short summary of the main takeaways
5 Introduction
South Korea’s recent developments and challenges ahead
7 Political outlook
Analysis and expectations on South Korea’s domestic political
situation, policy outlook and regional geopolitics
10 Economic outlook
Analysis and forecasts on South Korea’s macroeconomic and labour
market conditions
15 Business outlook
Analysis on trends that affect business and business confidence in
South Korea
Table of
contents
5. Future Watch – Strategy Brief
5
- President Moon’s Minjoo Party lacks the 180-seat three-fifths majority
necessary to unilaterally pass legislation in the National Assembly, forcing the
party to cooperate and build consensus on its policies. This difficult
parliamentary dynamic will further slowdown policymaking and add to the
obstructionist force of opposition parties.
- Moon Jae-in’s economic strategy will redistribute public spending into welfare,
labour, and education, tackling rising inequality and unemployment. The rigid
dual system, split between regular and non-regular workers, chaebols and
SMEs, however, has introduced deep-rooted structural issues to South
Korea’s job market.
- Under Moon Jae-in, an advocate for rapprochement and reunification, many
expect to see a recalibration of relations between South and North Korea and
a revival of the sunshine policy. Mr Moon, however, has also increased the
fiscal 2018 defence budget, suggesting his flexible stance on the issue.
- The diversification of South Korea’s export-led growth model vis-à-vis the so-
called fourth industrial revolution paradigm shift will be gradual, meaning that
real GDP growth will remain at the mercy of global trade prospects. GDP
growth will be particularly impacted by China’s economic slowdown in 2018
and a US recession in 2020. Spiralling household debt and interest rate hikes
introduced under the BOK’s new cycle of monetary tightening will also
constrain private consumption growth.
- Moon Jae-in’s ‘people-oriented’ growth model aims to move away from a
reliance on exports towards boosting domestic consumption through
increasing the minimum wage by 55% in 2020. Public spending on research
and development (R&D), alongside investment in innovative SMEs, will further
push Mr Moon’s policy agenda to close wage and productivity gaps between
the conglomerates and SMEs.
- Corporate governance reform, a key policy area for the liberal government, will
be focused on blocking the concentration of economic power monopolised by
the conglomerates and improving governance structures in order to prevent
unfair trade practices.
- With gender inequality restricting many women from actively participating in
the workforce or advancing to executive positions, President Moon intends to
push for funding to train women returning to work after maternity leave and
women wanting to establish start-ups.
- South Korea’s rapidly aging population will become a further drag on the
nation’s GDP growth, requiring increased healthcare expenditure. This will
force the government to increase taxes to achieve fiscal sustainability. The
changing demographic, however, will provide new silver market opportunities
for businesses and drive the shift towards the fourth industrial revolution.
Report
highlights
6. Future Watch – Strategy Brief
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On March 10th 2017 former President Park Geun-hye, who took office in 2013, was
impeached over allegations that she abused her position of power to bribe the chaebol,
South Korea’s family-controlled business conglomerates, and allowed her close aide
and confidante, Choi Soon-sil, access to meddle in state affairs. These wide-ranging
corruption scandals roused public anger against Park, and her ruling Saenuri Party,
and abruptly created space within the South Korean political system for a new
contender to fill. Following the snap election in May, Minjoo party candidate, Moon Jae-
in, who had narrowly lost to Park in the 2012 election, emerged as South Korea’s new
center-left wing president willing to take the country in a different direction. The
backlash that developed from Park’s scandals drove a shift away from a decade-long
period of conservatism in the public sphere, deepening ideological and generational
lines of division.i Korea’s ability to swiftly elect a successor in a fair electoral process,
however, is testament to the democratic maturation of the country.
Moon Jae-in’s support base is largely filled by citizens in their 20s, 30s, and 40s, owing
to his liberal policies that aim to tackle unemployment and job-insecurity felt
predominately by Korea’s highly-educated youth. During his campaign, Mr Moon
frequently referred to himself as the “jobs president,” aiming to reform the economy so
as to create more high-quality jobs and combat the exploitation of non-regular workers.
Hailing from a humble farming background, and as a student activist in the protests
against authoritarian leader and impeached Park’s father, Park Chung-hee, Moon Jae-
in identifies with the inequalities experienced by the population at large and their pro-
democratic tendencies. The president’s high approval ratings, which remain hovering
above 70% after eight months in power, confirm his popularity with Korean citizens and
sustained anti-conservative sentiment.
On a more personal note, Moon Jae-in’s parents were North Korean refugees, which
is often cited as one of the reasons for his positive stance on a rapprochement between
the two countries, leading eventually to his desire for reunification.ii During his time as
chief of staff to president Roh Moo-hyun from 2003-2007, Moon was strategically
involved in negotiations promoting the famous “sunshine” policy, which sought to open
a dialogue between North and South Korea through measured engagement and
economic cooperation. Implementing such a policy in the current geopolitical climate,
however, would go against existing UN sanctions imposed upon the rogue state, yet it
is no secret that Mr Moon wishes to rekindle amicable relations with the north, which
would likely be dubbed “moonshine policy.” Maneuvering around economic sanctions,
moreover, has been trumped by the more urgent crisis of North Korea’s rapid
nuclearisation, which has ignited tensions among the North Asian states and curbed
any recent attempts at diplomatic negotiation.
The challenges that the Moon administration faces are not limited to the North’s
nuclearisation. While Moon’s electoral victory in May secured 41% of the vote, the
Minjoo Party lacks the 180-seat three-fifths majority necessary to unilaterally pass
legislation in the National Assembly.iii With 121 seats, Minjoo has been forced to
cooperate and build consensus on its policies with the liberal People’s Party (PP), who
occupy 45 seats out of a total of 300. Despite the relative success of the two parties’
combined representation so far on the 2018 budget negotiations, strained relations
between Minjoo and the PP propose a difficult parliamentary dynamic and are likely to
delay and inhibit future policymaking.
Introduction
7. Future Watch – Strategy Brief
7
The conservative Liberal Korea Party (formerly the Saenuri Party) with 107 seats,
along with the smaller Bareun Party (which splintered from Saenuri) with 20 seats, will
intensify the constraints of Minjoo’s weak parliamentary majority, further slowing down
legislative processes through acting as an obstructionist force. The Economist
Intelligence Unit, therefore, maintains that the efficiency of policymaking will be
hindered by continued boycotts and bargaining in the South Korean political system
until the next election in April 2020, thus potentially leading to an impasse that could
frustrate citizens and negatively impact Moon’s popularity.iv
South Korea’s economic rise to become one of the Four Asian Tigers is often attributed
to the establishment of its business system dominated by the family-run
conglomerates, chaebol. The core companies of many chaebol are export-oriented
manufacturers, who played a key role in developing new industries and markets in
South Korea, assissting in rapid growth over the past decades. Despite large debts
and countless corruption scandals, the chaebol are often cited as “too big to fail.” Moon
Jae-in’s Minjoo party, however, hopes to reform both this attitude of implicit compliance
within the government and Korea’s export-led growth model.
The fourth industrial revolution in particular continues to guide South Korea’s transition
towards an innovative growth model that invests in promising SMEs and start-ups over
family-controlled conglomerates. Such initiatives equally aim to close the widening gap
between SMEs and chaebol, which has fuelled a problematic labour market
segmentation in South Korea that Moon’s government is desperate to address. This
paradigm shift, moreover, which aims to redirect spending into next-generation
industries, will also work to support South Korea’s rapidly ageing society and poor
labour productivity through promoting automation and technologies that complement
the decline in human capital.
8. Future Watch – Strategy Brief
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Domestic outlook
Jobs president: labour reform policy
Moon Jae-in’s economic strategy has
focused on alleviating the pressure of
household debts through raising taxes
on elite corporations in order to
redistribute wealth and create an
economic environment conducive
towards small and medium sized
enterprises (SMEs). Job creation and
welfare benefits will also feed into Moon
Jae-in’s fiscal policy as a way of tackling
rising income inequality and job security
concerns. During Mr Moon’s campaign,
for example, he promised to create
810,000 jobs in the public sector, giving
him the title “jobs president.” Public
spending on the maintenance of
infrastructure under the Moon
administration’s fiscal policy will, therefore, be slashed and redistributed primarily into
welfare and labour, and secondly education.
While unemployment rates remain relatively low in South Korea, compared with other
OECD countries, the rigid dual system, split between regular and non-regular workers,
and SMEs and chaebols, has introduced deep-rooted structural issues to South
Korea’s job market, felt markedly by the younger population. With youth unemployment
on the rise, young graduates in particular tend to fall into low-paid irregular jobs, in part
due to the shortage of high-quality careers available, which is exacerbated by a
relatively rigid labour market that favours seniority. In addition, SMEs made up 99%
of all businesses and employed 88% of South Korea’s workers in 2014. The clear
hierarchy between employment in a chaebol, which boasts greater salary, benefits,
job security, and social prestige, is therefore deeply problematic.
These inequalities in South Korean society,
complicated by the divide between chaebols
and SMEs, have fuelled a labour market
segmentation with huge wage and
productivity gaps between workers.
According to Korea Small Business Instititue,
Labour productivity at SMEs was only 30% of
that at conglomerates in 2014. While Moon
intends to pursue an ambitious policy of
increasing wages, his agenda falls short on
addressing the widening gaps between
productivity necessary to generate major
structural reform.
Political outlook
9. Future Watch – Strategy Brief
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Geopolitical outlook
Moon shining? New approaches to international relations
Increased nuclear testing and missile launches conducted by North Korea has
continued to test the South’s patience. Former president Park’s tough approach led the
government to pursue military measures, implementing the US-built Terminal High
Altitude Defence (THAAD) system. The use of THAAD, however, has caused relations
with China to worsen due to concerns over the system’s spying capabilities. In
retaliation, China has imposed a blanket tourism ban on South Korea despite the two
countries’ high level of economic interdependence.
Although it appeared that China and South Korea were beginning to normalise
relations, with an agreement on a currency-swap deal in October, according to South
Korean daily JoongAng Ilbo, from 1st January 2018 the Chinese government once
again brought into effect group tour bans on trips to South Korea.v This decision
followed after Moon Jae-in’s trip to China for the December summit with president, Xi
Jinping, in which Mr Moon was reportedly given the cold shoulder. Hyundai Research
Institute, a leading Korean think-tank, predicted that Korean businesses would lose
$15.6bn of tourism revenue if the boycott continued into 2018 and $76bn in total,
equivalent to 0.5% of GDP.vi Korea Development Bank backed these claims, stating
that other industries could also lose $8.3bn over the disagreement.vii
Economic sanctions against South Korean companies, however, have failed to make
a dent in key exports to China, with outbound goods up 23% in September 2017 due
to high-demand for memory chips among other manufacturing parts crucial for Chinese
firms.viii The selective boycott targeted industries competitive to the Chinese market,
such as beauty products and confectionery, which both saw significant dips in profit.
Even Chinese citizens backed the state initiative, boycotting Lotte-mart stores across
China, which saw 77 of its 99 stores closed by Chinese officials on the pretext of safety
breaches.ixChina’s self-serving actions have been described by many South Koreans
as a case of extreme bullying, with China now occupying bottom place in South
Koreans’ perceptions of other countries.x South Koreans, however, are well aware that
relations with China, their biggest trading partner, are necessary. When Mr Moon took
office, moreover, he stated that he wished to review the THAAD deployment deal,
which appears to be hindering relations with both China and North Korea. xi The
question of security cooperation, however, seems far adrift.
As briefly mentioned, under Moon Jae-in, an advocate for reunification, many expect
to see a recalibration of relations between the two countries. Mr Moon’s personal
experience in negotiating with the North while pursuing the sunshine policy, gives
background to his administration’s seemingly reconciliatory approach. The liberal
sunshine policy, while a costly initiative, demonstrated the South Korean government’s
commitment to advancing a dialogue and improving relations. The warm engagement
that it posited hoped to lead to a more open North Korea—and in some respects, it
did.xii Inter-Korean economic development, for example, was realised in collaborations
such as the joint industrial zone that respected the principle of economic and political
separation without a neocolonialist underpinning. The policy’s critics, however, argued
that North Korean aid and investment was effectively, perhaps even immorally, used
to develop its military and nuclear weapons.xiii
10. Future Watch – Strategy Brief
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The North’s path of military provocation, vis-à-vis nuclearisation, has indeed prevented
recent attempts at engagement. The UN, moreover, has tightened its economic
sanctions, in which China now seems more willing to play ball, thus making it difficult
for Mr Moon to reinstate a policy similar to the sunshine initiative. Kim Jong-un’s 2018
new year speech, however, emphasised that he was “open to dialogue” with South
Korea, hoping to send North Korean athletes to the 2018 Pyeongchang Winter Olympic
Games in February.xiv Mr Moon has been very responsive to the North Korean leader’s
offer, describing the opportunity to improve relations as groundbreaking.xv Despite this
positive front, the Moon administration increased defence spending in the fiscal 2018
budget by 7% year-on-year compared with 4% in 2017 in order to meet the North Korea
threat. xvi This move suggests Mr Moon’s flexible approach in dealing with the
geopolitical crisis, which welcomes warmer relations but satisfies conservative
opposition in terms of strengthening South Korea’s military capabilities.
A History that Haunts: relations with Japan
Part of Moon Jae-in’s support comes from his liberal policy proposals that formed in
line with popular public opinion, taking a turn against conservatism following Ms Park’s
impeachment. Keeping his domestic support base pleased, however, has increasingly
put Moon Jae-in under pressure, as he struggles to balance diplomatic relations with
ensuring the public’s disposition is represented.
Moon Jae-in denounced the so-called “comfort-women” (a euphemism for women
forced into sexual slavery) deal signed by Park Guen-hye in 2015, stating that there
were serious flaws in terms of the content of the agreement, which bypassed the
opinions of victims and the Korean public.xvii The agreement itself stipulated that a fund
of ¥1bn (US$9m) would be established for the surviving women and their relatives.
Despite Mr Moon’s concerns that the agreement may require renegotiating, the
Japanese government has maintained a hardline stance on the issue, stating that a
revision of the deal is unfeasible.
Whilst Mr Moon has taken a two-track approach to dealing with Japan, separating
historical issues from cooperation in other areas, arousing the comfort-women talks
may hamper diplomatic relations between the two nations. The issue has already
attracted substantial media attention and risks inflaming negative perceptions of Japan
in the public eye once again due to the two countries’ joint colonial history.
As a liberal party, if an unfavourable outcome is reached, Moon could garner left-wing
backlash from civic groups and unions, which could damage his sustained popularity.
Nikkei Asian Review, furthermore, reported that the issue could cause Abe to decline
his invitation to the 2018 Pyeongchang Winter Olympics in South Korea, adding to
existing tensions over the Dokdo/Takeshima island disputes. xviii Despite these
diplomatic tensions, The Economist Intelligence Unit expects the North Korean threat
to motivate closer security co-operation between the two US allies.
11. Future Watch – Strategy Brief
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Macroeconomic outlook
GDP outlook
GDP growth will take a downturn from
3.2% in 2017 to 2.5% in 2018. The
diversification of South Korea’s export-led
growth model will be gradual, meaning
that real GDP growth will remain at the
mercy of the global economy and trade
prospects. As discussed, due to China’s
economic boycott and tourism ban over
the implementation of the THAAD
system, South Korean exporters will be
forced to diversify and seek alternative
markets. Although China’s rising middle-
class will become a source of opportunity
for many exporters, China’s economic
slowdown in 2018 will further encourage
the move away from Chinese markets
and shifts from an export-led growth model. As South Korea’s second largest export
market, the US will also play a strong role in stalling annual economic growth in the
next five years. The Economist Intelligence Unit predicts that the US will fall into
recession in 2020, causing export slowdowns that will further damage South Korea’s
real GDP growth. The 2017 boost from new product releases, furthermore, will taper
off in 2018, dampening global sales.
The government’s fiscal policy, which aims to redistribute spending into welfare,
labour, and education in the 2018 budget, will support private consumption growth,
averaging at 2.2% a year in 2018-22. Consumers, however, will be constrained by
spiralling household debt, which was at W1,419.1trn (US$1.3trn) in September 2017,
including mortgages and consumer credit-card debt, thus limiting growth. The
increase in private consumption, moreover, risks being cut short by the Bank of
Korea’s (BOK, South Korea’s central bank) recent decision to raise its policy interest
rate for the first time in six years since 2011. The BOK’s interest rate hike was
increased from a record low 1.25% to 1.5% on the basis of stable domestic economic
growth and rising inflationary pressure.
Economic
outlook
12. Future Watch – Strategy Brief
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Prices and exchange rates
We expect consumer prices to rise by an annual average of 1.8% in 2018-22,
representing a slight dip from 2% in 2017. Consumer price inflation, however, is
forecast to remain low due to South Korea’s susceptibility to unexpected shifts in global
energy prices as a large importer of oil, prices of which are also predicted to remain
low. Falling below the BOK’s target of 2%, weak inflationary pressure is likely to strain
BOK’s monetary tightening policy, with interest rates due another hike by mid-2018.
With China’s economic slowdown in 2018, however, the BOK will prioritise supporting
the growth of its domestic economy, diverging from the Federal Reserve’s accelerated
cycle of monetary tightening. Although global economic conditions will pick up again in
2019, the 2020 US recession will cause
another slog in the domestic economy.
Interest-rate increases, therefore, will be
implemented incrementally so as to
stabilise the fragile economy.xix
Nevertheless, following on from these
global economic hurdles, the Economist
Intelligence Unit expects the BOK to
proceed with interest-rate rises after
GDP growth accelerates and inflationary
expectations are met in 2021-22.
Producer prices are predicted to grow by
an average of 1.8% a year in 2018-2022
as a result of low global commodity
prices.
The won will weaken against the US
dollar in 2018, estimating at an average
of W1,132:US$1 in 2017 compared with
W1,175:US$1 in 2020. This depreciation
of the won, following a period of
appreciation against the US dollar in
2017, is largely the consequence of
dismal prospects for external demand. As
global trade improves, particularly in
China and the US, the won is forecast to
strengthen once again to an annual
average of W1,147:US$1 in 2021-22. In
addition, surpluses on the current and
trade accounts will continue to support
the won. Risk of downward pressure,
however, remains subject to global
economic volatility.
13. Future Watch – Strategy Brief
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Trade outlook
As discussed earlier, the slump in exports as a result of economic slowdowns in China
and the US will cause sluggish real GDP growth to continue. While outbound goods in
the automotive industry fell, South Korea performed well in key exports, particularly
semiconductors and OLEDs. The
growing demand for memory
capacity in the tech industry, for
example, could further spur new
growth for South Korea’s domestic
economy, with global giants such as
Google and Amazon requiring
customised chips for high-
functioning data centres.xx Korea’s
current chipmaking prowess is
already recognised by countries
such as China, in which demand for
technological components is soaring
amid the ever-growing use of
internet-connected devices.
In 2017 South Korea saw its trade
balance shrink due to volatile global
trade conditions. We expect South
Korea to achieve, on average, a
current-account surplus equivalent to
5.8% of GDP in 2018-22. Competition
for key exports, as well as global
economic slowdowns over the forecast
period, will hit export growth. This
decrease, however, will be tempered
by subdued import growth, keeping the
trade account in the black. In addition,
as relations gradually normalise with
China in 2018-22, the services trade
deficit will narrow as a result of
increased tourism.
14. Future Watch – Strategy Brief
14
Labour market
Soaring minimum wage
Moon Jae-in’s ‘people-oriented’ growth model aims to move away from a reliance on
exports towards boosting domestic consumption through increasing the minimum
wage. Part of Mr Moon’s policy platform revolved around the target of a 55% wage
increase to W10,000 per hour by 2020, with the first hike set to be introduced in 2018
at W7,530 per hour, an increase of 16.4%.xxi While the wage increases are intended to
reduce inequalities, many SMEs claim that the policy will force them to lay off
workers—a serious problem when 88% of the population are employed at SMEs. In
addition, spiralling household debts will put downward pressure on consumption,
potentially jeopardising Mr Moon’s strategy for growth.
Despite raising the minimum wage,
a popular and cheap government
reform policy, this strategy alone
fails to address the pronounced
segmentation between regular and
non-regular workers or rising youth
unemployment in South Korea. xxii
The liberal government intends to
tackle these issues by alleviating
household debt pressure, raising
taxes on the wealthiest and
corporate entities, and redistributing
wealth. In terms of fiscal policy, job
creation and welfare benefits will
form key components of Moon’s
people-centred approach.
15. Future Watch – Strategy Brief
15
The fourth industrial revolution: paradigm shift from exports to
innovation
The fourth industrial revolution refers to a digital revolution that encompasses a fusion
of technologies, blending the physical, digital, and biological spheres.xxiii Welcoming
this new revolution would herald an entire transformation in systems of production,
management, and governance, which is exactly what Mr Moon’s administration intends
for.xxiv
In October 2017, the government launched a new committee consisting of twenty
civilians and five government officials for the intention of discussing and implementing
government policies concerned with the fourth industrial revolution.xxv These policies
will be aimed at greater investment in fields such as Artificial Intelligence (AI), the
Internet of Things (IoT), big data, robotics, autonomous vehicles, and nanotechnology
to name a few. Its critics tout that the concept is no more than a buzzword the
government latched onto in order to propel its campaign of economic growth based on
innovative businesses and new industries. The Economist Intelligence Unit, however,
expects Moon Jae-in to drive a paradigm shift away from an export-led growth model
towards one that prioritises innovation and creativity.
The previous government had already begun orchestrating this shift through cutting off
credit lines and bailouts to large companies, forcing them to restructure. Under the new
administration, however, policy will likely be aimed at increasing public spending on
research and development (R&D) and investing in innovative SMEs. In December
2017, the government announced its plan to inject W3.2tr into R&D, with the Ministry
of Trade, Industry, and Energy increasing investment in next-generation industries by
12.5%, accounting for 29% of total R&D expenditure.xxvi Self-driving cars will also
receive a substantial investment of W149bn in order to reach a target of 350,000
electric vehicles on the road by 2022.xxvii In addition, the Industrial Internet of Things
will receive W81bn and the pharmaceutical and health industries W199bn, an increase
of W42bn.xxviii Renewable energy infrastructure will also see a huge investment of
W417bn so as to meet the nation’s goal of 20% renewable power generation by
2030. xxix With exports in microchips and semiconductors also booming, the
government plan to enncourage these industries by injecting an extra W72bn in R&D
spending.xxx
This focus on reinvigorating SMEs, rather than the chaebols, overlaps with Mr Moon’s
push to close wage and productivity gaps between the conglomerates and SMEs, as
outlined in the labour reform policies. As Economic growth remains slow, however,
curbing the influence of chaebols and the economy’s reliance on exports will be
gradual. Increased investment in SMEs alone, moreover, is unlikely to support the shift
towards the so-called fourth industrial revolution, which many conglomerates are
equally poised to make and take advantage of.
16. Future Watch – Strategy Brief
16
Business trends, challenges and opportunities
Corporate governance
Mr Moon made corporate governance reform one of his signature economic policies.
South Korea’s conglomerates retain an elitist culture, in which corporate bosses
frequently avoid prison following corruption scandals and are often believed to stand
above the law. The chaebols’ entanglement with former president Park, however, has
signalled growing unrest with this unchecked power, with both Korean citizens and
liberal government policymakers seeking change, regulation, and accountability.
According to KOSPI, the main Korean stock index, the market capitalisation of the
chaebol accounts for 77% of the domestic economy, with Samsung alone capitalising
a huge 41%. Although curbing the influence of the conglomerates poses big risks to
the economy, chaebols in fact carry exceedingly large corporate debts on top of record-
high cash reserves at over W175trn in the past five years. In addition, the chaebols’
profits are rarely funnelled directly to society through jobs and pay rises.
On 5th December, the government endorsed an increase on corporate income tax from
22% to 25% for companies exceeding W300bn in annual profits. This policy is to be
extended to South Korea’s wealthiest individuals, with income tax to increase to 42%
from 40% for those earning more than W500m.xxxi Inheritance, property, and capital
gains taxes also appear to be areas the Moon administration is seeking to increase
revenue. In addition, President Moon appointed well known “chaebol sniper,” Kim
Sang-jo, as chairman of the Korea Fair Trade Commission. Mr Kim pledged to bring
change to the corporate landscape, vowing to enforce laws upon the country’s four big
chaebol—Samsung, Hyundai Motor, SK Group, and LG Corp. The corporate
governance reform, according to Mr Kim, will be two pronged. Firstly, the government
aims to block the concentration of economic power monopolised by the conglomerates,
and secondly, to improve governance structures in order to prevent unfair trade
practices.xxxii
Business
outlook
17. Future Watch – Strategy Brief
17
The liberal government, however, is likely to encounter problems in implementing these
corporate governance reforms due to a fractured parliament in which Minjoo lack the
two-thirds majority. Given the predominance of chaebol in South Korea’s domestic
economy, conservative politicians are likely to support only modest changes on this
front. The Economist Intelligence Unit predicts that Mr Moon will be forced to
compromise on policies against the conglomerates. Therefore, whilst the chaebol’s
economic contribution is likely to remain decisive, Moon is expected to push through
greater regulatory framework in his reforms.
Gender inequality in the workforce
Millions of women in South Korea are discouraged from actively participating in the
domestic workforce, with only 53.1% of women participating in the labour force,
compared with 74.5% for men.xxxiii President Moon has addressed this issue, stating
that low female participation is a loss for the nation.xxxiv The administration is thus
pushing for an extra budget to fund training for women returning to work after maternity
leave in order to tackle the absence of married mothers from the workforce.xxxv Funding
would also be directed at helping women set up their own start-ups, keeping in tune
with Mr Moon’s people-oriented growth-model.
The problem of gender inequality is not limited to participation, but also feeds into wider
structural issues concerning regular and non-regular employment. According to data
from OECD, 53% of women are employed in part-time, temporary positions and lack
job-security, providing women with little incentive to actively participate. South Korea
also boasted the largest gender wage gap among 16 nations surveyed by the OECD,
earning 36.7% less than men.
18. Future Watch – Strategy Brief
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Although the number of female executives in the country has been increasing, the
Glass Ceiling Index released by the Economist in 2017 ranked South Korea the lowest
among the 29 countries surveyed.xxxvi Although 7% more women than men entered
universities as of 2009, Korean women comprised of only 19.4% of lawyers, 23.9% of
doctors, and 23% of university professors. In terms of companies, women held only
10.5% of managerial positions and 2.4% of seats on company boards. In 2017,
however, the Korean government announced its plan to increase the number of female
managers in the public sector to 18.8% and initiate training programs to help advance
female managers to executive positions.xxxvii Despite these initiatives, no official quotas
have been set by the government to guarantee such targets.
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R&D and innovation
South Korea continues to be at the forefront of innovation
Over the past decades South Korean companies have made innovation and
technology the cornerstone of their competitive global exports. Ranked number one on
the Bloomberg Global Innovation Index in 2018, Korea scored a total of 89.3 points.
xxxviii The country scored highest in its patent actvity, followed by research and
development (R&D intensity) and manufacturing capability. xxxix However, among
OECD countries, Korea had one of the lowest scores in productivity, which has
remained a constant challenge to businesses.
As a country that produces its fair share of engineers through a rigorous education
system, and continues to invest heavily in developing new technologies, achieving the
top spot is unsurprising. South Korea’s next step lay in harnessing innovative talent
within SMEs and start-ups—a move the government have begun to make. Compared
with their competitors in Silicon Valley, South Korean scientists and enginners are
more inclined to pitch innovative ideas to management within a chaebol than establish
their own start-up.xl The government, however, have been commited to fostering
growth in the start-up scene through initaitives like the creation of the Ministry of SMEs
and Start-ups in May 2017, adding W870bn to its funds.xli This kind of large scale
investment hopes to develop opportunities for innovative SMEs and create an
environment ideal for starting businesses and attracting investment. Coworking
spaces, for example, have exploded in popularity in Seoul, owing to trendy office
designs in central areas that allow for better networking at an affordable price. This has
led WeWork Cos. to open seven branches in South Korea as part of its US$500m bet
on Asia, inspiring local players like FastFive to jump on the bandwagon.xlii
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Most of South Korea’s innovations, however, come from large conglomerates, such as
Samsung and Hyundai. That said, South Korea also ranked highest in Asia on The
Economist Intelligence Unit’s Social Innovation Index in 2016 due to the government’s
active support of open communication, transparency, and data disclosure with its
citizens in Seoul.xliii Involving the population through means of proliferating information
creates democratic policymaking conducive to social innovation. In addition, according
to the report, increasing flows of communication with the public also allows civil issues
to be raised and dealt with effective immediately, thus propelling many innovation
initiatives in communities. While the term “social innovation” itself remains broad, it can
refer to new services, products, processes, rules, and regulations that work towards
achieving social needs. Such initiatives may be based on improving areas such as
education and sustainability as a means of encouraging social innovation, producing
profits and investment returns in some cases. Although the nation lacks an official
social innovation strategy, South Korea supports social enterprise and provides funds
and subsidies for innovative endeavours. With the city of Seoul, Korea’s largest urban
centre, spearheading social innovation and boasting high rates of urbanisation,
retailers and businesses are set to utilise these factors to facilitate distribution
processes.
South Korean firms’ style of “tiger management”, with its roots in Confucianism, has
contributed towards the flexibility and growth of Korean companies.xliv A combination
of success factors from aggressive, goal-oriented business strategies to strong,
charismatic leadership have allowed Korean companies to thrive in global
environments.xlv Team work, collectivism, and hierarchy also play a strong role in the
organizational cultures of Korean companies, which help to develop Korean employees’
high level of motivation and willingness to work long hours.xlvi
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Megatrend
Ageing population and the silver market
Despite South Korea’s edge in innovation, the country faces similar problems
concerning a rapidly aging population to its neighbour, Japan. This megatrend will
become a further drag on the nation’s GDP growth, as an ageing population will require
increased healthcare expenditure on social security contributions to the national
pension and health insurance systems, as well as old-age income security, straining
public finances. In order to achieve fiscal sustainability, the liberal administration will
further raise taxes on corporations and the incomes of the wealthy. According to data
from the latest census statistics from the government, the number of elderly people
over the age of 65 in South Korea reached 6.8million in 2016, comprising 13.6% of its
total population. The National Statistics Office, moreover, claims that Korea is set to
make one of the quickest transitions from an “ageing society” (defined as seniors
making up 7% of the population) to an “aged society,” owing to longer life spans paired
with low fertility rates.xlvii
As the total population continues to decline, the strains of low labour productivity will
curb economic growth, leading many companies to pursue similar technological
approaches as Japan in terms of robotics and AI. In addition, to forestall an imminent
decline in the workforce, the government have been actively discussing raising the age
of retirement from 55 to 60 in order to reduce the tax burden on the younger population
while sustaining economic growth. Many workers, however, are concerned that these
measures will lead to increases in the number of elderly people remaining in or
returning to work, creating intergenerational tensions and obstacles for youths seeking
employment in an increasingly competitive job market.xlviii
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Korea’s ageing population, however, will also offer many lucrative silver market
opportunities for retailers. According to Samsung Economic Research Institute
(SERI), changes in the demographic structure will welcome new products tailored for
seniors onto the domestic market. High-quality goods, such as LCD and Plasma TVs,
and construction materials for housing remodeling, for example, display trends of
growth.xlix Unsurprisingly, the development of generic drugs is also set to emerge as
a promising industry to help individuals cope with the costs of medical inflation. SERI
also predict that the services industry will overtake manufacturing in order to meet the
demands of the silver generation.
In addition, although the number of households will increase at a tepid pace, due to
the ageing population combined with a low birth rate, growth in private consumption
will result in higher purchasing power per capita, spurred on by the liberal
government’s increase in wages and redistributive fiscal policy. Reflecting the ageing
population, this increase will contribute towards the growth of retail categories such
as health and personal care. With the number of households with net incomes above
US$ 50,000 on the rise, increasing from 5,222 to 10,305 in 2017, opportunities for
upmarket retailers, particularly in the market for food and non-alcoholic drinks, will
increase, contributing towards trends in premiumisation.l Rising health awareness, a
major developing global market, is also expected to further drive premiumisation, with
demand for organic food among other health-oriented products surging.
An ageing society is deeply connected to the drive for new technologies as a way of
supporting lagging productivity, a shrinking labour force, and social needs. In the
past, growth tended to be a product of demographics due to increased productivity.
Technologies, moreover, will continue to complement the decline in human capital as
machines become more and more efficient through core computing technology and
self-learning algorithms, leading to greater exponential growth.li South Korea,
alongside China and Japan, bought approximately half of global industrial robots
since 2013 as a part of their strategies for increased automation and use of robotic
technology.lii Offering a tech-savvy community, South Korea is eager to adopt the use
of AI to assist human employees, with one example being robotic airport guides
introduced in July 2017 in preparation for the 2018 Winter Olympics.liii In addition,
future applications of robots are likely to focus increasingly on care, as well as
replacing a dwindling work force. A senior engineer at LG described South Korea’s
sentiment towards the adoption of AI and robots as positive, with many viewing the
use of these key technologies as support solutions rather than a problem. This
optimistic outlook feeds into the government’s push for the fourth industrial revolution,
propelling South Korea towards becoming a “lead market” for innovations in the
digital economy as well as for innovations for ageing societies.
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Endnotes
i Campbell, Charlie. “Moon Jae-in: The Negotiator.” Time Inc., 4 May 2017,
time.com/4766618/moon-jae-in-the-negotiator/
Kyoungtae, Kim. “Snap Election in South Korea: What You Need to Know.” The Asia
Foundation , 22 Mar. 2017, asiafoundation.org/2017/03/15/snap-election-south-
korea-need-know/.
ii Campbell, Charlie. “Moon Jae-in: The Negotiator.” Time Inc., 4 May 2017,
time.com/4766618/moon-jae-in-the-negotiator/
iii “Moon Jae-in easily wins South Korea's presidential election.” The Economist
Newspaper, 13 May 2017, www.economist.com/news/asia/21721868-governing-
country-will-be-harder-moon-jae-easily-wins-south-koreas-presidential-election.
v Yamada, Kenichi, and Shunsuke Tabeta. “Missile shield seen as a sticky thorn in
China-South Korea ties.” Nikkei Asian Review, 22 Dec. 2017,
asia.nikkei.com/Politics-Economy/International-Relations/Missile-shield-seen-as-a-
sticky-thorn-in-China-South-Korea-ties.
“A geopolitical row with China damages South Korean business further.” The
Economist Newspaper, 19 Oct. 2017,
www.economist.com/news/business/21730477-south-korean-industries-ranging-
tourism-carmaking-are-being-badly-affected.
vi “South Korea is making up with China, but a sour taste remains.”The Economist
Newspaper, 9 Nov. 2017, www.economist.com/news/china/21731123-choosing-
between-trump-and-xi-isnt-always-easy-south-korea-making-up-china-sour.
vii Ibid.
viii Jaewon, Kim. “South Korean business improves in China ahead of Moon's first
visit.” Nikkei Asian Review, 13 Dec. 2017,
asia.nikkei.com/Business/Companies/South-Korean-business-improves-in-China-
ahead-of-Moon-s-first-visit.
ix “A geopolitical row with China damages South Korean business further.” The
Economist Newspaper, 19 Oct. 2017,
www.economist.com/news/business/21730477-south-korean-industries-ranging-
tourism-carmaking-are-being-badly-affected.
x “South Korea is making up with China, but a sour taste remains.”The Economist
Newspaper, 9 Nov. 2017, www.economist.com/news/china/21731123-choosing-
between-trump-and-xi-isnt-always-easy-south-korea-making-up-china-sour.
xi “Moon Jae-in easily wins South Korea's presidential election.” The Economist
Newspaper, 13 May 2017, www.economist.com/news/asia/21721868-governing-
country-will-be-harder-moon-jae-easily-wins-south-koreas-presidential-election.
24. Future Watch – Strategy Brief
24
xii Park, S. Nathan. “Moon's Secret Weapon Is Sunshine.” Foreign Policy, 19 May
2017, foreignpolicy.com/2017/05/19/moons-secret-weapon-is-sunshine-south-korea-
kim-jong-un/.
xiii Stanton, Joshua, et al. “Getting Tough on North Korea.” Foreign Affairs, 7 Aug.
2017, www.foreignaffairs.com/articles/north-korea/2017-04-17/getting-tough-north-
korea.
xiv “South Korea proposes high-Level talks with North on Olympics.” BBC News, BBC,
2 Jan. 2018, www.bbc.com/news/world-asia-42538323.
xv Ibid.
xvi “Economic Analysis - 2018 Budget: Focus On Job Creation - JAN 2018.” Asia
Monitor, www.asia-monitor.com/economic-analysis-2018-budget-focus-job-creation-
jan-2018.
xvii Minegishi, Hiroshi. “'Comfort women' deal not a solution: President Moon.” Nikkei
Asian Review, 28 Dec. 2017, asia.nikkei.com/Politics-Economy/International-
Relations/Comfort-women-deal-not-a-solution-President-Moon.
xviii “South Korean navy begins 2-Day exercise for defense of disputed islets.” Nikkei
Asian Review, 28 Dec. 2017, asia.nikkei.com/Politics-Economy/International-
Relations/South-Korean-navy-begins-2-day-exercise-for-defense-of-disputed-islets.
xx Harris , Bryan , and Song Jung-a. “Samsung record profits mask crisis without and
within.” Financial Times, 14 Oct. 2017, www.ft.com/content/981eed6c-9c46-11e7-
8cd4-932067fbf946.
xxi “South Korea's soaring minimum wage.” The Economist Newspaper, 25 Oct.
2017, www.economist.com/blogs/economist-explains/2017/10/economist-explains-
21.
xxii “South Korea tries to boost the economy by hiking the minimum wage.” The
Economist Newspaper, 12 Oct. 2017, www.economist.com/news/asia/21730187-70-
median-wage-it-going-too-far-south-korea-tries-boost-economy-hiking.
xxiii Schwab, Klaus. “The Fourth Industrial Revolution: what it means and how to
respond.” World Economic Forum, 14 Jan. 2016,
www.weforum.org/agenda/2016/01/the-fourth-industrial-revolution-what-it-means-
and-how-to-respond.
xxiv Ibid.
xxv Stewart , George . “South Korea - The Presidential 'Fourth Industrial Revolution
Committee' Was Officially Launched.” Openeyesopinion.com, 16 Oct. 2017,
www.openeyesopinion.com/south-korea-the-presidential-fourth-industrial-revolution-
committee-was-officially-launched/.
xxvi Woo-hyun, Shim. “Korea to invest W3.1tr to support next-generation industries.”
The Korea Herald, 26 Dec. 2017,
http://m.koreaherald.com/view.php?ud=20171226000699#cb
25. Future Watch – Strategy Brief
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xxvii Ibid.
xxviii Ibid.
xxix Ibid.
xxx Ibid.
xxxi Kim, Peter S. “Moon's tax hikes too big for South Korea's economy.” Nikkei Asian
Review, 3 Jan. 2018, asia.nikkei.com/Viewpoints/Peter-S.-Kim/Moon-s-tax-hikes-too-
big-for-South-Korea-s-economy.
xxxii Harris , Bryan . “President Moon's tricky mission to tame Korea Inc.” Financial
Times, 13 Sept. 2017, www.ft.com/content/fa1e3e00-947b-11e7-bdfa-eda243196c2c.
xxxiii Kim, Hooyeon, and Myungshin Cho. “Gender Inequality Is a Risk for South
Korea's Workforce.” Bloomberg, 4 July 2017,
www.bloomberg.com/news/articles/2017-07-04/gender-inequality-is-a-risk-for-south-
korea-s-workforce.
xxxiv Ibid.
xxxv Ibid.
xxxvi The Economist Newspaper, infographics.economist.com/2017/glass-ceiling/.
xxxvii “Women in the boardroom: A global perspective - 5th edition” Deloitte Touche
Tohmatsu Limited., 2017.
xxxviii Jamrisko, M. & W. Lu. "U.S. Falls as South Korea Ranks No.1 Again in
Innovation Index", January 27th 2018, Bloomberg. URL:
https://www.bloombergquint.com/global-economics/2018/01/22/south-korea-tops-
global-innovation-ranking-again-as-u-s-falls.
xxxix Ibid.
xl“2016 Bloomberg Innovation Index South Korea Takes Top Spot.” 20 Jan. 2016.
https://worldindustrialreporter.com/2016-bloomberg-innovation-index-south-korea-
takes-top-spot/.
xliRamirez, Elaine, “Slow And Steady Wine The Race In South Korea’s Startup
Scene.” Forbes, 3 Jan. 2018.
https://www.forbes.com/sites/elaineramirez/2018/01/03/slow-and-steady-wins-the-
race-in-south-koreas-startup-scene/#660c33b848db.
xliiYoolim, Lee, and David Ramli. “WeWork to Pump $500Million Into Southeast Asia,
South Korea.” Bloomberg, 7 Aug. 2017.
https://www.bloomberg.com/news/articles/2017-08-07/wework-to-pump-500-million-
into-southeast-asia-south-korea.
xliiihttp://www.ebanimpact.org/wp-content/uploads/2017/01/Social_Innovation_Index-
1.pdf .
xliv Hemmert, Martin, The Evolution of Tiger Management. (Routledge) Oct. 2017.
xlv Ibid.
xlvi Ibid.
26. Future Watch – Strategy Brief
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xlvii Sook-hee, Choi. “Korea’s Rapid Population Aging: Impact and Policy Suggestions”
Samsung Economic Research Institute,2008,.p.3.
xlviii Sang-ok, Lee , and Tan Teck-boon. “South Korea's demographic dilemma.” East
Asia Forum, 24 Mar. 2016, www.eastasiaforum.org/2016/03/25/south-koreas-
demographic-dilemma/.
xlix Sook-hee, Choi. “Korea’s Rapid Population Aging: Impact and Policy Suggestions.”
Samsung Economic Research Institute, 2008.p.7.
l “South Korea Retail Report: Includes 5 year Forecasts to 2021.” BMI Research, March
2017.pp.1-38.
li Woetzel, Jonathan, Automation, Jobs and Future Work in Korea. IGE Distinguished
Lecture Forum, 13 April 2017.
lii “Robots may help defuse demographic time bomb in Japan and Germany.” The
Japan Times, 30 May 2017.
https://www.japantimes.co.jp/news/2017/05/30/business/economy-business/robots-
may-help-defuse-demographic-time-bomb-japan-germany#.WlhnASOQ1R0
liii Babe, Ann. “Why South Korea is an ideal breeding ground for robots.” BBC, 6 Dec.
2017. http://www.bbc.com/travel/story/20171205-why-south-korea-is-an-ideal-
breeding-ground-for-robots