L2W - Ferry Sorrow & Economics, High Won, & O in Korea
The sadness of Apr 16 Sewol ferry incident has continued, with 275 dead and 29 still missing. A principle committed suicide out of shame he was save while many of his students have not. The Prime Minster had to submit his resignation, and President Park Geun-hye apologized for the government’s initial handling of the disaster. Outraged by KBS newsroom chief’s personal comparison of the Sewol tragedy to traffic accidents, the families of the victims staged a sit-in in front of the Blue House, demanding President Park
It is an irony that anti-government forces are taking advantage of the tragedy to overthrow Park’s regime, harassing Park to step down in street protests, but there are no protestors at all in front of the headquarter of Chonghaejin, the ferry operating company. It’s like Americans blaming George Bush and Whitehouse for 9/11, instead of Bin Laden and Al Quaeda.
2) Barack Obama in Korea
Mr. Obama made a two day visit to Korea South Korea ’s takeover of wartime operational control, currently scheduled for 2015, during the visit to the U.S. Army base in Seoul with President Park China ’s role to better control North Korea
Kim Jong-un must be ticked off by Obama’s comments in Seoul North Korea ’s news agency poured racial insults to Obama, like “Obama is a monkey to live in a zoo in Africa ” or “Obama is a crossbreed.” Kim Jong-un should learn from Donald Sterling of LA Clippers on how damaging it can be to make racial slurs to the Americans.
2. Economy
1) High Won to cut export profits
With the constant increase of Korea Won against the U.S. dollar, export driven companies are in worries. It was 1,084 won per dollar on Feb 4, but got strengthened to 1,022 won on May 8, a 5.7% increase in three months. It was the strongest won value since Lehman Brothers crisis in Nov 2008. Though the impact may be limited for big companies like Hyundai or Samsung that has hedging mechanisms, analysts believe their profit margins will weaken if the won strengthens to the 1,010 won level. Much more difficulties are expected for small and midsize exporters with less ability to hedge currency risks.
While high won is a bad news for Korean export companies, it was a good news for parents who send their children to the U.S.
2) Ferry incident’s negative effect in economy
The government has decided to pour 7.8 trillion won to provide support for regions and industries hit hard by the ferry incident and the sag in domestic spending that followed. According to the Seoul Association of Chartered Bus Transportation Business, almost all reservations of chartered buses for school trips since Apr 16 have been cancelled. Korea Seoul
There was a big flood from typhoon Lusa in Gangwon Province in the east of Seoul Gangwon Province
3. Auto Industry
1) Big hands to Hyundai Genesis from IIHS
Hyundai’s new Genesis earned “Top Safety Pick+” ratings from the U.S. Insurance Institute for Highway Safety (IIHS) crash test, becoming the first passenger car to receive top grades in all 29 categories of the test. IIHS said the redesigned Genesis received a “Good” rating in the small overlap frontal crash, and “Superior U.S.
Regards,
H.S.