Posts tagged ‘anti-Americanism’
On 28 September 2011, the U.S. government vowed to fully cooperate in the investigation into an alleged rape of a young Korean woman by a United States Forces Korea (USFK) serviceman near a military base in Dongducheon. Read more
On 13 September 2011, the White House announced the President Obama would receive President Lee Myung-bak and his wife on 13 October 2011 for a state visit. The two leaders are expected to discuss a range of economic and security issues, including progress towards implementation of the Korea-United States (KORUS) Free Trade Agreement (FTA). Read more
Authorities have been instructed to avoid inflaming tensions during the ongoing demonstrations at Gangjeong, Seogwipo Municipality. The current demonstrations, seeking a halt to the construction of a planned ROKN base, have to date attracted only limited public support. Read more
At a press conference on 13 February 2011, Democratic Party chairman, Sohn Hak-Kyu, stated that the Democratic Party (DP) would return to the National Assembly.
The decision ends the DP’s two-month boycott of the National Assembly, which commenced 8 December 2010, after the ruling Grand National Party (GNP) forced through its 2011 budget bill. One of the key upcoming agenda items will be legislation to implement the Korea-United States (KORUS) Free Trade Agreement (FTA), after both sides signed the supplementary agreement on 10 February 2011.
Both the DP and Democratic Labor Party (DLP) oppose ratification, claiming the original FTA has been altered by the supplementary agreements, making it necessary to undertake a complete review of the FTA. However, the DP will find it difficult to rally wider public support in opposition to the KORUS FTA.
Throughout 2010-11, the DP has maintained a policy focus on social issues, including universal welfare services; such as school lunches, healthcare, and childcare; and the financial, taxation and regulatory reform required to support these policies. It will prove difficult for the DP to present opposition to the KORUS FTA in the same frame. In addition, anti-Americanism is currently at a low-level as a result of proactive USFK and US State Department measures, as well as increased public concern regarding North Korea. Wider public support for opposition to the KORUS FTA is unlikely to materialize.
On 8 February 2011, USD-KRW trade once again approached the psychological KRW1100 level, sparking rumours of covert intervention by the Bank of Korea (BOK).
The potential for interference in the market has attracted greater pressure from both Japan and the United States. The USD-KRW traded at a low of KRW1100.75 and at a high of KRW1105.60. The KRW1100 mark was last reached in mid-July 2008, two months prior to the start of the global financial crisis.
In 2010, the USD-KRW traded at an average of KRW1157.42. In April and November 2010, when trade did approach the KRW1100 level, the BOK has exerted a degree of control to avoid instability. The market currently expects the won to rise. The government affiliated think-tank, the Korea Development Institute (KDI) estimates the won will trade at an average of KRW1023 in 2012 achieving an average of KRW980 by 2014.
A stronger currency in the longer-term will impact Korea’s export driven economic recovery and will have a particularly deleterious effect on small to medium-sized enterprises (SMEs) with larger firms, such as Samsung and Hyundai Motor, already in a position to relocate production overseas.
This presents a dilemma for the Lee administration, which must balance calls from SME exporters to slow and/or delaying currency appreciation with increased pressure from Japan and the United States to limit interference in the market.
