LG Scores Big With 'Borderless' TV

Daniel Phillip Henney, an American actor and spokesman in commercials for LG Electronics’ borderless flat-panel TVs, poses with the TV. Seamless TVs, which have been selling in the global market since September this year, are strategically important for LG to decide the profit curve of its TV-making unit in 2010. / Korea Times

By Kim Yoo-chul
Staff Reporter

LG Electronics, the world's second-biggest liquid crystal display (LCD) TV maker, plans to widen the market gap with its bigger rivals, including Sony, in 2010 by propelling its borderless flat-panel TV sets.

LG has been set to sell some 6 million borderless LCD TVs with LED backlights, next year, inspired by highly impressive initial moves in such sets after their debut, company officials say.

In September, LG has unveiled the seamless TVs that eliminate the seam between the screen and the surrounding bezel, available both in traditional LCD and LED-backlit LCD models.

Available in sizes ranging from 32- to 47-inches, the "SL90 LED-backlit LCD" and "SL80 LCD TV" series are adorned with a seamless front.

LG officials say the company was able to create these svelte TVs by using a new manufacturing technique that creates a sleek, uninterrupted glass-like surface.

The screen also sports laminate film on the surface, which reduces glare and improves picture quality.

The SL90 is distinct from the SL80 line thanks to its LED backlighting technology, which pumps up the contrast ratio to a whopping 3,000,000:1.

"Both lines feature an invisible sound system that hides slim speakers at the bottom of the TV, enhancing the visuals with quality audio. Bluetooth is integrated, too, which lets viewers hook up the set to compatible mobile phones wirelessly to easily share music and movies on the big screen," a company spokesman said.

Sales have been on a good roll. Within the two months since the global debuts of borderless TVs, over 100,000 units have been sold, according to the company.

In Europe alone, 46,000 sets were sold, while 19,000 and 12,000 were sold in North America and LG's home turf, South Korea, respectively, from September to November, LG said in a statement.

Of the LED-backlit SL90 model, 42,000 were sold, while sales of the traditional SL80 LCD model reached 58,000.

Citing the successful launching of the seamless TVs, analysts are positive about the profit outlook of LG’s home entertainment unit in 2010.

"We can say the borderless TV series will lift its TV-making unit in 2010. Enhanced user-friendliness of the products will appeal to premium buyers in LG's key markets," So Hyun-cheol, an analyst at Shinhan Financial, said.

LG aims to sell 25 million LCD TV sets next year.

SM5 Legacy Continues With Redesign

The new and improved SM5, a mid-sized sedan by Renault Samsung Motors, has been garnernig glaring reviews from the local car market. / Korea Times

By Jane Han
Staff Reporter

Renault Samsung Motors’ SM5 sedan has been the car maker's consistent bestseller for the past decade, but it is aiming to secure a bigger market presence next year with its highly-touted 2010 redesign.

The local unit of French auto firm Renault SA says it plans to start selling a new version of its SM5 sedan early next year to boost its sales and compete with the recently redesigned Hyundai Sonata.

The updated model, which has been in development since 2006, is equipped with either a 2-liter gasoline or diesel engine, both of which are available with a six-speed automatic transmission.

The new SM5 offers a full range of features and options, including a navigation system, massage seats and a body kit, according to company officials.

It is available in five different trims ― PE, SE, SE Black, LE and LE Exclusive ― with each of the trims showing off its own unique set of features. For example, the PE trim is equipped with a back warning system and 16-inch aluminum wheels, while the SE trim comes with a convenience package that includes power seat controls.

Officials claim that the third-generation SM5 promises to give drivers and passengers a new and improved experience as the model has been revamped both inside and out.

Renault Samsung has sold more than 700,000 units of the SM5 and the car maker says the ongoing popularity owes to the vehicle's continued enhancements.

The improvements led SM5 to win numerous industry recognitions, including awards in design, power brand and consumer satisfaction. And such good reputation, in turn, has helped the model retain top-level status in the used car market as well.

The car maker says the most pivotal factor that led SM5 to keep its market position against intensifying competition is its impeccable quality.

Marketing Insight, an industry research firm, conducted a consumer satisfaction survey on domestic cars earlier this year and the results showed that Renault Samsung ranked No. 1 for eight years in a row. Respondents said SM5 had the best quality with the least quality stress

Kyobo Life Climbs to Top With Strategy to Cut Risks

Headquarters of Kybo Life in Seoul

By Yoon Ja-young
Staff Reporter

Kyobo Life Insurance employees wondered when they heard a whistle fill the auditorium of the insurer's headquarters in Gwanghwamun, downtown Seoul, last March.

It was Kyobo Life Insurance Chairman Shin Chang-jae who blew the whistle. The former medical professor, who was often spotlighted for special, meaningful events by washing the feet of insurance salespeople or baking cookies for them, blew the whistle to mark beginning of fiscal year 2009.

With the whistle, he meant that all should be as passionate and fully ready like a runner lined up for the start, to mark growth for the year despite difficulties in the global financial market.

The whistle seems to have paid off. Kyobo Life Insurance made a notable achievement despite the global economic crisis.

Kyobo marked 291.6 billion won in net profit in 2008, rising to the top of the life insurance industry. Hence, Moody's, a global credit rating agency, maintained its rating on Kyobo at ``A2,'' while it lowered ratings on numerous financial businesses around the world.

The ``A2'' rating is the highest among Korean financial companies. Kyobo's total assets have breached 50 trillion won, and it has had the highest return on equity (ROE) among the top three players in the life insurance industry here for the past five years.

These accomplishments saw the company win the 2009 Asia Insurance Industry Award, the first Korean life insurance company to do so.

``In the end, risk management paid off,'' a spokesman at Kyobo Life Insurance said. The insurer learned that key for survival is risk management. Kyobo successfully overcome the Asian financial crisis without any government support.

Kyobo Life Insurance stopped overseas investments before September last year when Lehman Brothers collapsed. The thorough risk management enabled it to minimize losses while others faltered.

The insurer set up committees to examine investment and asset management, excluding investment in risky assets from its portfolio. It stuck to its conservative investment principle confined to safe assets that it knows well.

It also focused on non-savings type insurances, which paid off with a good performance. Under the slogan that ``Insurance is love for family,'' the insurer increased sales of whole-life insurance and annuity insurance products.

``Kyobo Life Insurance aims at making good growth of a virtuous circle, in which customer satisfaction leads to increases in sales and profits, and eventually benefiting customers as well as all Kyobo workers and shareholders,'' the spokesman said.

Seoul Milk Assures Quality, Freshness

Seoul Milk labels the production date, as seen in the red penciled part, of its products as well as expiration date, although the current law only requires food manufacturers to print just one of the dates. / Korea Times

By Kim Tong-hyung
Staff Reporter

Seoul Milk, the country's oldest and biggest dairy producer, has been recognized for its leading quality of products such as milk, yogurt and other beverages for more than 70 years.

And the company isn't resting on its laurels, as it continues to commit to improving quality to let customers know that they are getting the best and freshest products available at all times.

In July, Seoul Milk became the first dairy producer to put the production date on its milk cartons. The country's current food safety law requires food makers to reveal either the production or expiration date of products, but not both, often leaving consumers questioning how long the products have been sitting on store shelves.

Seoul Milk's decision to disclose both dates on its milk cartons seems to be drawing positive reviews from consumers.

Since implementing the labeling policy on July 14, the company has been selling about 9.38 million cartons per day, up from its previous level of about 8 million per day.

During September, the company even sold more than 10 million cartons for four straight days, which is around 44 percent of the 23 million milk cartons sold daily in the country.

The sharp increase in the company's milk sales is impressive when considering that overall milk consumption has been dipping in the past few years due to low birth rates, Seoul Milk officials said.

``The decision to label our milk products with the production dates is also connected with our efforts to innovate production and delivery procedures to enhance the freshness of our products,'' said Noh Min-ho, an official from Seoul Milk's marketing unit.

``Printing the production dates means we need to increase our efforts to reduce the time between production and shipment of our milk products, which means that the produced amount and the level of consumer demand should be matched more precisely. This has us providing fresher milk, which also contributes to reducing our inventory.''

Seoul Milk is planning to eventually expand the printing of production dates on all of its products, which include flavored milk, yogurt, coffee, fruit beverages, cheese and ice cream.

Seoul Milk is currently running a prize competition on its Web page (www.seoulmilk.co.kr), which continues through the end of January.

The high scorers of the online quiz will be awarded a selection of prizes, including 375 grams of gold to the first-place winner, 20 1 million won gift certificates, cosmetic products, agricultural products and of course, Seoul Milk's dairy products to others. The winners will be announced on Feb. 11.

Micro-robot to clean vessels

Korean scientists have developed a tiny robot, about the size of a grain of rice, which can swim along inside human veins and unplug clogged vessels.

According to the team of researchers led by Park Jong-oh at Chonnam National University, the ``micro-robot,'' measuring a millimeter long and 5 millimeters from end to end, successfully cleared blockages of vessels inside a pig.

Scientists around the world have been competing to develop micro-robots that could be sent through the body to clear blocked vessels, track down diseases and deliver drugs, proving the 1987 Dennis Quaid film, ``Innerspace,'' as prophetic. However, this marks the first time that such a device was successfully tested in a living laboratory animal, Park said.

``The navigation and control system, which allows us to steer the robot in any direction and monitor the movement in real time, will likely contribute as the crucial core technology in developing medical-purpose robots of the future,'' Park said during a presentation at his university in Gwangju.

``Robots like these may open new possibilities in the treatment of cardiovascular diseases ― our device measures just 1 millimeter wide, an ideal size to probe through coronary arteries, which average around 2 millimeters in diameter.''

Vein-cleansing mini-robots have been a subject of particular interest for Korean scientists, with their research getting significant financial backing by the government with hopes that such devices could be injected into humans to treat cardiovascular diseases by as early as 2020.

Park's research was one of the projects under a 7-year, 20.3 billion won ($17.8 million) plan by the Ministry of Knowledge and Economy to develop such robots that was introduced in 2007.

Once entered into blood vessels, the robot is guided by an outside electromagnetic field that allows it to navigate through the body automatically to a designated point or be controlled by computer with joystick-like controls.

The robot can travel up to 50 millimeters per minute, and once inside a clogged vessel, it pierces through blockages and plaque with its built-in drill that rotates up to 1,800 times per minute.

The robot's drill can also double as a drug injector, and Park said the next version of the robot will be equipped with better disease detection and treatment capability, including ultrasound signals.

``The hardest part was developing a technique to precisely control the robot's movement, which was difficult due to the ever-changing nature of blood flow velocity and blood pressure. But our electromagnetic system has proved efficient enough,'' Park said.

``The next step in the development is to combine the robot's navigation and treatment capability that includes ferrying drugs.''

POSCO, KT lead ‘Work Smart’ drive

Digital age driving out old office custom of staying within eyesight of bosses

By Cathy Rose A. Garcia
Staff reporter

In the past, working hard meant getting in early and staying late. But the long hours do not necessarily mean workers produce good work.

These days, a growing number of Korean companies are realizing the value of ``working smart,''' in order to compete in the global market.

POSCO, the world's largest steelmaker, is leading in ``work smart'' efforts. When he assumed his post as CEO last year, Chung Joon-yang introduced the concept and implemented measures, such as reducing paperwork. Employees were asked to submit just one page reports ― complying with the ``3Ss'' ― short, simple and specific.

Smart phones are also being recognized as key tools in the workplace, encouraging ``mobile offices.'' POSCO, as well as Kolon Group and other companies, have distributed smart phones to their employees in order to raise work productivity.

Even Samsung Electronics president Choi Ji-seong was quoted as saying: ``Smart workers will enjoy more benefits from the company.'''

Even the government is jumping on the bandwagon, with a plan to establish telecommuting work centers or ``Smart Work Offices'' for public employees by 2013.

For Korean companies who want to compete in the global market, Samsung Economic Research Institute analyst Ahn Byung-wook said working smart is a must.

``Smart work is an imperative for Korea, which is on the verge of joining the ranks of advanced countries. Global competition makes work smart a prerequisite for survival, not an option,'' he said, in a recent paper.

Ahn highlighted five areas that companies should purse innovation, with the acronym SMART ― Space, Method, Acquaintance, Result, and Time management. This means, creating a work space that is conducive to creativity; reevaluating work methods; utilizing acquaintances inside and outside the companies; focusing on results and eliminating time-wasting factors.

``In terms of diligence, Korea faces tough competition from China and India, while it does not have any competitive advantage coming from abundant natural resources or capital. Korea has no other choice but to take advantage of its relatively competitive human resources. Therefore, the surest way to beat the competition is to create an environment and organizational culture where employees can balance between life and work, and do their work creatively,'' he said.

Korean companies can take their cue from tried-and-tested practices of international companies. In advanced countries, work smart initiatives are aimed at enhancing the work hours with value-added elements by working creatively.

The importance of the office space cannot be underestimated. It should be designed in such a way as to make it conducive to improving work performance and creativity.

For example, Japanese clothing giant Uniqlo removed chairs in meeting rooms to encourage faster decision-making, ditched personal desks to encourage better project work, and turned off lights after 7 p.m. to discourage overtime work. SAS Institute, a leading software firm, provided personal offices to its employees, as well as a fitness center and swimming pool.

Efficient management of the work processes is also an important element to consider. For example, Samsung Electronics regularly evaluates value-added work and restructures on a regular basis.

Many companies also efficiently collect ideas from people inside and outside the workplace. ``The latest global management trend features the sharing of knowledge across all sectors of business management ― benchmarking of other industries, convergence and the collapse of industrial barriers,'' Ahn said.

Procter and Gamble (P&G) developed a Web site www.tremor.com, a community of over 280,000 members, to promote its products even before they are launched. It is considered the largest group of word-of-mouth marketing, as it combines market research expertise with principles of cognitive science.

An employee's performance should be evaluated not by the amount of working hours, but with value-added work. Ahn noted companies should improve their evaluation system, in order to provide appropriate incentives that match the performance of individual workers.

``To maximize their performance, companies need to operate a system that enables employees to challenge without fear of failure and to present their ideas freely,'' he said.

Time management is another significant thing to consider. Among OECD countries, Korean workers log in the most hours, an average of 2,261 hours a year. This is significantly more than the 1,798 hours put in by American, 1,655 hours by British, 1,457 hours by French and 1,808 hours by Japanese workers.

Companies should reduce overtime work in order to allow employees to have a better work-life balance. In line with this trend, KT and POSCO have introduced limited overtime. However, employees also need to change their working attitudes and methods to eliminate wasting time.

More companies are expected to follow the ``work smart'' trend in Korea, as its benefits for employees and the organization become more apparent.

``To secure and motivate core human resources, which determine the competitiveness of businesses, companies need to introduce and promote a smart work approach. Their effort can be an effective tool for immersing today's young workers into organizations as they prefer enjoying their own personal life rather than devoting themselves to companies,'' Ahn said.

Female executives still rare in Korea

The glass ceiling is still in place in corporate Korea, with a new survey showing that only one in five top companies have women on their executive boards. 

Women account for only 51 spots in the management boards of 21 companies from the top-100 listed firms this year, management magazine HR Insight said yesterday. 

Women in the management positions of KOSPI-listed companies have increased four-fold from 22 in 2006 this year. 

KT Corp., the country’s largest telecom operator, had placed 12 women in their board of directors, by far the most. Samsung Electronics had seven,LG Electronics five, and Korean Air four.

“The number of women promoted internally to executive positions is quite small here,” Oh Il-sun, managing editor of the magazine said.

A 54.9 percent, or 28 of the total, had been promoted internally and the rest were recruited from elsewhere. The fastest career track-record among them is held by Han Hyun-mi, 50, who joined Asiana Airlines in 1990 and became vice president in 2006. The youngest is Jun Jin-soo, 39, deputy vice president of Amore Pacific, the country’s largest cosmetics manufacturer.

Kim Jin, vice president of LG Electronics, had kept her executive position for nine years, the longest any Korean woman had in a listed local company.

Ten among the 51 are Seoul National University graduates, followed by Yonsei University with six and Ewha Womans University with five.

Genesis gets top safety rating in U.S.

Hyundai Motor Co. announced on Friday that its sports sedan Genesis was named a “Top Safety Pick” by the United States’ Insurance Institute for Highway Safety.

Insurance Institute for Highway Safety or IIHS is a non-profit organization supported by U.S. insurance companies. 

Hyundai Genesis

The IIHS names vehicles equipped with the vehicle dynamic control system that receive the top ratings in front, side-on, rear and roof integrity tests. 

In the latest test, the Genesis was named a “Top Safety Pick” by the IIHS along with the Mercedes-Benz E Class, the Korean carmaker said.

Ministers discuss Cheonan, bilateral ties

Foreign Minister Yu Myung-hwan (left) and his Chinese counterpart Yang Jiechi hold talks prior to the three-way talks among Seoul, Beijing and Tokyo later today in Gyeongju.  Yonhap News

By Kim Ji-hyun

　GYEONGJU - China today said the ongoing investigation into the recent sinking of a South Korean warship should be conducted in an “objective” and “transparent” manner.

　Chinese Foreign Minister Yang Jiechi expressed such thoughts in a one-on-one with South Korean Foreign Minister Yu Myung-hwan ahead of a three-way meeting of the foreign ministers of South Korea, China and Japan.

　“The Chinese foreign minister also called the sinking of the Cheonan as an unfortunate incident, and said China has extended its condolences. The two ministers said they would closely communicate and cooperate over the issue,” said Foreign Ministry spokesman Kim Young-sun.

　The Cheonan sank near the de facto inter-Korean border in March. More than 40 sailors were killed or remain missing. 

　Seoul has strongly indicated it believes North Korea to be the culprit of an external blast that allegedly sank the Cheonan. An official investigation is due to end around May 20. 

　China, as one of the reclusive regime‘s closest allies, has maintained a noncommital stance.

　Others, such as the U.S. has indicated that the six-nation talks aimed at ending Pyongyang’s nuclear weapons programs cannot continue when the investigation is ongoing.

　A group of U.S. senators on Thursday introduced a resolution calling for a thorough probe into the sinking of the Cheonan.

　The two foreign ministers of South Korea and China also discussed the North Korean nuclear issue.

　China is chair of the six-way dialogue, which has been stalled since Pyongyang said it would permanently boycott the discussions in April last year.

　The North issued the declaration after the United Nations criticized a rocket launch. 

　Regarding bilateral relations, Yu and Yang discussed measures for bolstering their “strategic cooperation partnership.”

　Chinese Prime Minister Wen Jiabao is currently scheduled to visit South Korea for a meeting with President Lee Myung-bak later this month. 

　Seoul and Beijing said they would also seek to beef up cooperation for developing atomic energy, in addition to making efforts to start shuttle flights between the two nations at an earliest possible time.

　South Korea further enlisted support for extraditing North Korean defectors and those kidnapped by the North or prisoners of war who took refuge in China.

    The foreign ministers of China and Japan arrived in Gyeongju earlier today for bilateral and trilateral meetings with their South Korean counterpart Yu.

Seoul, Tokyo pledge to cooperate on Cheonan

GYEONGJU -- Foreign Minister Yu Myung-hwan and his Japanese counterpart Katsuya Okada yesterday agreed to work closely together regarding the recent sinking of a South Korean warship.

The two ministers also pledged to jointly act against those found to be accountable for the incident, ministry officials said. 

“The Japanese foreign minister expressed Japan’s condolences again for the sinking of the Cheonan, and also reaffirmed support for South Korea’s efforts for an objective and scientific investigation,” said Foreign Ministry spokesman Kim Young-sun following the meeting. 

Yu and Okada sat down for a one-on-one as part of a two-day meeting between the foreign ministers of South Korea, Japan and China. 

Yu held bilateral talks with his Chinese counterpart Yang Jiechi on Saturday, which was followed by a trilateral meeting of the three ministers. 

Foreign Minister Yu Myung-hwan (second from right) poses with his Chinese counterpart Yang Jiechi (right) and Japanese counterpart Katsuya Okada yesterday during their visit to Bulguk Temple in Gyeongju, North Gyeongsang Province.  (Yonhap News)

The Cheonan was a Navy corvette that sank on March 26 in the West Sea, killing more than 40 sailors on board. Some remain missing. 

Seoul has indicated that it believes North Korea to be responsible for the incident, although the results of the investigation are still pending.

During the foreign ministerial talks, South Korea reportedly enlisted support from Japan and China who are both regional partners and members of the six-way talks aimed at ending North Korea’s nuclear ambitions.

Seoul has indicated that it would not attend the six-party dialogue until the Cheonan investigation has been wrapped up. 

Beijing appeared to hold a different stance. Chinese President Hu Jintao earlier this month met North Korean leader Kim Jong-il for a summit during which the two sides discussed the six-way talks.

During their three-way talks on Saturday, the three ministers held discussions related to the Cheonan. 

They also talked of ways to cement their trilateral relations, including setting up a permanent secretariat on regional cooperation in Seoul.

The presidents of the three nations are to meet on South Korea’s southern resort island of Jeju during May 29-30 to intensify the three-way cooperation and discuss regional issues.

Regarding bilateral ties, the South Korean and Japanese foreign ministers yesterday said they would take steps to further cement the relationship between the two countries. 

“The Japanese side stressed the importance of a Korea-Japan free trade agreement for building new bilateral relations and expressed hope for an early start of negotiations on the trade deal,” said the Foreign Ministry spokesman. 

The two ministers said history should not undermine bilateral ties, but Yu stressed to his Japanese counterpart South Korea’s stance on Japan’s claims to sovereignty over Dokdo islets.

Both Yu and Okada agreed that they would work together so that the territorial issue would not harm the ties between the two countries. 

Tokyo will be hosting the next round of three-way talks.

[KOSDAQ report (51)] POSCO Chemtech eyes lithium ion battery market

This is the 51st in a series of articles analyzing companies listed on the KOSDAQ, Korea’s secondary stock market loaded with tech firms. - Ed.

POSCO Chemtech, the POSCO subsidiary that specializes in refractory and lime production, will produce materials for lithium ion battery cathodes in 2013.

“We will begin producing materials for lithium ion battery cathodes in 2013, and raise the company’s annual revenues to 3 trillion won ($2.6 billion) by 2015,” POSCO Chemtech president Lee Sang-young said. 

“The tar produced by POSCO each year will provide the raw materials. It will mean the localization of materials used in lithium ion batteries, which are currently mostly imported.” 

POSCO Chemtech chief executive Lee Sang-young (POSCO Chemtech)

Tar, which is generated as a byproduct in the process of making coke from coal, needs to undergo three-step processing to make materials for lithium ion battery cathodes. According to POSCO Chemtech, each stage results in marketable products and the company plans to manufacture all three products.

For the new business, the company is looking to collaborate with a Japanese company producing lithium ion battery materials. The company is also considering plans to take over a local firm that has related technologies.

According to company officials, it has secured 300,000 square meters of land to build production facilities, and is reviewing ways to secure 200 billion won funds required for the project.

Although the project is still in the early stages, and it will be some time until POSCO Chemtech will see any return from the investment, the company has seen significant growth from its existing businesses. 

The company’s revenues rose by 28.5 percent from 2008 to come in at 574.4 billion won last year, while operating profits increased by 29.3 percent over the same period to 41.5 billion won.

The company has continued on an upward slope so far this year, with first quarter figures rising to record levels.

The company’s first quarter sales increased by 22.9 percent from the previous quarter to 160.8 billion won and operating profits jumped by 114.8 percent to 14.2 billion won.

Over the same period, POSCO Chemtech’s net profits increased by 153.9 percent to come in at 12 billion won. Lee attributed the rise to the company’s lime business, which accounted for 42.5 percent of the company’s 2009 sales. 

For this year, Lee said that the company is targeting 700 billion won sales and 60 billion won operating profits.

Concerning share prices, Lee said that POSCO Chemtech shares are still undervalued, and that as the average price earning ratio for 2008 and 2009 is 8.7, the company’s shares should be at least 70,000 won.

No need to fret over Europe crisis, experts say

No need to fret over Europe crisis, experts say 

Watching the Greek debt crisis, many Koreans fear that the country’s robustly-recovering economy may get bogged down again by a problem from outside the country, and thus one they have no control over. 
However, foreign experts participating in a forum in Seoul yesterday, saw the likelihood of that happening being very low. 
“(The European debt crisis) is not going to have the same impact (on Korea) as the U.S. subprime debt crisis had in 2008,” said Jeffrey Shafer, vice chairman of Citi’s Global Banking. 
What’s going to happen is that global investors will look for safer places to park their money instead of trouble-ridden European countries, which will benefit Korea and emerging economies in Asia, he said. 
The challenge for Korea will be how to keep that money coming in and not lose control, he added. 
Some Southern European countries are struggling with huge government debt, after spending aggressively to fight a global economic recession. The European Union and the International Monetary Fund are planning a rescue package for Greece and other crisis-hit countries. 
Michael Pomerleano, an advisor at the World Bank in Washington, was upbeat that Korea would continue economic growth, avoiding the fallout of the European troubles, although he offered a very grim outlook for Greece. 
“Greece will default. The only debatable issue is when,” he said. “Asia, however, is far more robust than the rest of the world and is increasing trade with other vibrant emerging economies,” he added. “It is time that Korea thought strategically about repositioning its (trade) focus.”
China, for example, has become a bigger trade partner for Brazil than the United States is, he said. 
Choi Do-soung, a member of the Bank of Korea’s Monetary Policy Committee, said the European problem was unlikely to spark another global crisis financial crisis. 
“Even if the worst-case scenario becomes reality, I think Korea still has measures available to respond to the crisis,” he said. 
Authorities here have repeatedly said that the eurozone woes will not have a major impact on Korea, citing the nation’s low level of exposure to the troubled European countries. 

Potholes line road to electric car era

uch-hyped neighborhood electric vehicles are struggling to catch the attention of drivers more than a month after they were approved to run on roads.

A revised law on automobile safety and management took effect March 30 allowing local governments to designate roads on which the low-performance electric cars -- which run at less than 60 kilometers per hour and weigh less than 1,361 kilograms -- are available.

“By percentage, about 30 percent of local governments have designated roads for electric cars and have reported the designations to the ministry,” an official at the Ministry of Land, Transport and Maritime Affairs’ Motor Vehicles Policy Division said.

“But, because they are only required to tell us within 20 days of roads being designated for electric cars and an increasing number of local governments are doing so, the number we have now is inexact and growing fast.”

Neighborhood electric vehicles manufactured by local firms use a recharging station installed at a Homeplus store in Seoul. Yonhap News

However, even with regulatory barriers removed, NEVs have yet to take off in Korea.

While CT&T, the country’s leading NEV maker, has exported its e-Zone electric car and signed on with Korean government agencies to supply the vehicle, e-Zone cars have yet to catch on with private motorists.

According to the company, only three or four have been sold to private consumers.

“The main cause is the lack of subsidies. The Japanese government provides different subsidies depending on the vehicle. For e-Zone the amount is about 700,000 yen, which is about 9 million won ($8,000),” a CT&T official said. He added that there is a similar subsidy system for electric cars in the United States. 

Signs indicating whether a road is designated for neighborhood electric cars

Starting at about 15 million won and going up to over 20 million won depending on the battery type, e-Zone’s price range is about double that of Kia Motors Corp.’s city car Morning. 

“This is not an issue the industry can push on -- it’s entirely up to the politicians -- but compared to other countries, our government’s response is weak.” 

According to CT&T officials, the government has ruled out subsidizing NEVs citing that as the vehicles offer only a short driving range they have limited impact on reducing greenhouse gas emissions.

“It’s hard to understand why the government says that the environmental impact of NEVs is limited. Our vehicles do not use any motor fuel, and demand exists in both Europe and the United States,” a CT&T official said. 

“The average daily running distance of cars in the country’s eight largest cities is only about 30 kilometers, and within that kind range it is unlikely that our cars will create problems.”

The question of subsidies also remains for full-speed electric cars.

“The subsidy will be given to electric car buyers during the test phase on a limited basis, and not given to the general public,” an Environment Ministry official said. He added that the ministry had no other plans in the works at present, and declined to comment further. 

The lack of infrastructure for recharging electric cars is also a problem that affects not only NEVs but also full-speed electric vehicles. 

While local and foreign carmakers have electric car plans for Korea, some in the industry say that such plans can’t help but be dependent on government policies. 

Renault Samsung Motors Co. has plans to produce Renault’s electric cars in Korea, while GM Daewoo Auto and Technology Co.’s parent General Motors is planning to bring in a test fleet of its electric vehicle Volt to Korea next year.

The country’s largest carmaker Hyundai Motor Co. is also planning produce a fleet of electric cars this year, and being mass production in 2013.

“The most important thing is the infrastructure and government policies. Without the means to recharge an electric car, it is pointless for a company to make and consumers to buy electric cars,” an official at a local carmaker said.

“It could appear as though we are trying to pressure the government into providing subsidies and making infrastructure investments if we just go ahead and start producing electric vehicles.”

Seoul to name N.K. as attacker of Cheonan

The South Korean military is expected to issue a statement later this week accusing North Korea of a torpedo attack on the Cheonan, which sank near the inter-Korean sea border in March.

“The joint investigation team has found evidence to conclude that the Cheonan was torpedoed and that it was a North Korean torpedo,” a senior government official said.

“The military is considering issuing a statement against North Korea and on its stance after the investigation results are unveiled around Thursday.”

This photo shows North Korean leader Kim Jong-il (center) visiting Chinese modern industries at an undisclosed location in China, between May 3 and 7. (Yonhap)

The statement is likely to be signed by Defense Minister Kim Tae-young rather than Chairman of the Joint Chiefs of Staff Lee Sang-eui as Kim has called the South Korean naval disaster a “grave issue of national security.” 

Through the statement, the military plans to denounce the North for the “military provocation,” warn that Pyongyang should be responsible for everything that takes place from now on and declare its intent to prepare against a possible confrontation.

“I cannot say whether the statement would use direct expressions such as the North’s ‘military provocation’ or ‘military attack’ as the investigation results are yet to be announced,” the official said.

“But such statement is usually targeted at someone, so its premises would include those (accusations).” 

The U.S. also reportedly sees the Cheonan’s sinking as an “armed attack” against its ally rather than an accident.

“The military will clarify its position on what external or internal measures to take once the investigation results are announced,” said another source in Seoul.

“The military is likely to announce stern measures to enhance military preparedness after President Lee Myung-bak makes a public statement (on the Cheonan disaster).”

Lee is expected to publicly speak of his position later this month after the investigation results are disclosed.

The military is pushing to unveil the 1,200-ton Navy corvette that split into two to the press on Wednesday or Thursday. The broken ship is currently at the Navy’s Second Fleet Command in Pyeongtaek, its home port.

The joint investigation team, about 70 percent of whom are military officials and the rest nongovernmental or international experts, is scheduled to make public around Thursday the results of its probe into what tore the Navy patrol ship.

The scheduled announcement, followed by a special presidential statement and more sanctions against the North, is expected to further strain the already sour inter-Korean relations.

Seoul is likely to suspend all inter-Korean trade and economic cooperation projects except for the joint industrial park in the North’s border town of Gaeseong.

The South Korean government last week advised all companies involved in inter-Korean trade, except for those operating in the Gaeseong enclave, to put new cross border business projects on hold.

Seoul is also reportedly mulling additional measures such as prohibiting North Korean vessels from passing the Jeju Strait and resuming psychological warfare near the border through propaganda radio broadcasts or turning a blind eye to those flying leaflets across the border.

There are concerns that severing inter-Korean cooperation would increase North Korea’s dependence on China and that military confrontation without any inter-Korean exchange would pose risks in terms of national security as well.

Nevertheless, the government is seeking “stern measures” in the aftermath of the Cheonan sinking that killed 46 South Korean seamen.

The dominant view in Seoul is that it is necessary to warn the North that it should no longer see the South simply as an economic cooperation partner, especially as Pyongyang prepares for a father-to-son power succession. 

Having claimed that it has nothing to do with the Cheonan’s sinking, North Korea is expected to strongly react to Seoul’s planned accusation and follow-up measures.

If the Seoul government blocks North Korean vessels’ passage through the Jeju Strait and resumes propaganda against the North, Pyongyang is likely to respond by banning South Koreans’ trips to the Gaeseong enclave and disclaiming security guarantees for South Korean airplanes flying near its air space.

This could lead to a shutdown of the Gaeseong park, the last remaining inter-Korean reconciliatory venture, and heightened tensions.

As Seoul and Washington are in effect linking the sunken ship case to the resumption of the six-nation nuclear talks, there are unlikely to be any breakthroughs to eclipse the Cheonan situation.

An all-out suspension of inter-Korean trade would result in annual losses for North Korea of about $370 million and about 80,000 jobs, a civic group here said.

“North Korea would lose about $230 million in annual income from not being able to sell its agricultural and marine products, and another $50 million from not being able to sell products processed in Gaeseong such as clothes or peeled garlic,” Kim Kyu-cheol, leader of the South-North Forum said.

The group estimated that North Korea would lose about $49 million in annual income from the Gaeseong industrial park and another $44 million from the inter-Korean tour business compared to when both ventures were running normally.

“An all-out suspension of inter-Korean trade would result in 45,000 lost jobs in Gaeseong, plus a loss of another 30,000 jobs involved in trade elsewhere in the North,” Kim said.