'Top hotels used fake Korean beef'

By Kang Shin-who

The prosecution is expanding an investigation into suspicions that a beef wholesaler sold imported beef to five-star hotels and general hospitals, deliberately mislabeled as the more expensive hanwoo or Korean beef.

Among the hotels that used the imported products supplied as Korean beef are JW Marriot Hotel, Westin Chosun, Ritz-Carlton Seoul and KAL Hotel. Asan Medical Center also used the products.

The wholesaler, identified as Kim, put Korean-origin stickers on imported beef, pork and chicken and sold 124,000 kilograms of the products to 140 hotels and hospitals, as well as food catering chains from December, 2009 to August, 2010.

The prosecution said the amount of fake Korean beef, which is being circulated in the market, could be far more than has been revealed so far. Also, more beef dealers are suspected of similar practices.

Kim has been detained and indicted on charges of violating the law regarding place-of-origin labeling.
"A large amount of beef being wrongly labeled as Korean has disturbed the market order. It’s a serious matter for public health. We will widen our investigation into the case,” said an official from a district prosecution office in eastern Seoul.

Prosecutors plan to secure further data on beef transactions entered into by Kim.
Recipients, whom Kim provided with fake Korean beef, have been questioned about the case; and some confessed that they received kickbacks from him.

Prosecutors haven’t ruled out the possibility that other hotel and hospital staff members knew about the U.S. beef with Korean labels.



특급호텔들 가짜 한우 쓴 혐의 받아

검찰은 수입 쇠고기를 한우로 둔갑해 판매한 혐의에 대한 수사를 특급호텔 및 종합병원 등에 확대했다.

판매책인 김모씨는 2009년 12월부터 2010년 8월까지 수입산 쇠고기, 돼지고기, 닭고기 등에 스티커를 부쳐 국산으로 둔갑 시킨 뒤 140개의 호텔과 병원을 비롯해 식자재 유통사업을 하는 대기업 계열사에 12만 4천 킬로그램을 납품했다.

검찰은 시장에서 판매되고 있는 가짜 한우의 규모가 당초 적발된 것보다 훨씬 크다고 밝혔다.

김씨는 원산지 표시를 위반한 혐의로 기소됐다.

검찰은 김씨와 거래를 한 업체들의 거래명세서를 토대로 철저한 수사 할 것이라고 밝혔다.

kswho@koreatimes.co.kr

2011: year of economic challenges

Korea seeks to show resilience amid global rebalancing By Kim Jae-kyoung The year 2011 will be a watershed for the Korean economy, as it has to stand on its own without any external support, with the effect of the government’s stimulus waning and the developing world recovery set to stay muted next year. The economic recession is surely over, but not everyone here feels the change as Korea has yet to show a sustainable recovery. Some industries and regions continue to suffer amid lingering uncertainties both at home and abroad. Despite the government’s rosy outlook over the next year, there are a myriad of challenges surrounding the Korean economy. Unless the country tackles such them, it is inevitable that the economy will enter another downturn before it sees a full recovery. For Korean policymakers, it is not an easy task to deal with the challenge as they are all interrelated and are coming from both inside and outside at the same time. On the Chinese lunar calendar, next year is “the year of the rabbit,” but from an economic viewpoint, it can be labeled as “the year of challenges.” The following are the top 10 economic trials facing Asia’s fourth largest economy next year. Geopolitical risks Among many challenges, the geopolitical risk associated with North Korea’s brinkmanship is the biggest threat to the economy. Tension is likely to remain on the Korean peninsula as military episodes will increase in the next two years due to a power transition in North Korea. The North Korean shelling of South Korea’s Yeonpyeong Island near the disputed maritime border last month killed four people and left scores of houses destroyed. South Korea also holds North Korea accountable for the sinking of its warship, Cheonan, in May, which killed 46 sailors. Analysts point out that should the military clashes continue without a breakthrough in resolving the conflict between the two countries, the negative effects on the Korean economy could amplify, scaring away foreign investors. ``It is highly probable that heightened geopolitical tensions following the North Korean shelling of Yeonpyeong Island could send foreign investors scrambling for an exit from the country and expand the `Korea Discount’ on the stock market,” said Lee Chang-seon of the LG Economic Research Institute (LGERI). ``The year 2011 will be a crucial period in determining the geopolitical situation on the Korean Peninsula, as well as the effect on the South Korean economy and financial markets,’’ he added. Household debt Household debt is expected to remain as one of the biggest headaches for policymakers, as snowballing debt and rising interest rates are expected to combine to become a toxic cocktail for the economy, hurting financial soundness of both households and banks. The country’s household debt has been rising at a rate of 12 percent per year since 2000 to reach 770 trillion won (about $670 billion) at the end of September this year. In October, household debt rose by 5.3 trillion won. The nation’s individual debt-to-income ratio shows the seriousness of household debt. The ratio reached 153 percent at the end of 2009, well above that of advanced nations including Canada, the United States, Japan and Germany. What is of more concern is that the Bank of Korea (BOK) is likely to raise its key interest rates on a continuing basis throughout this year to normalize the rate, which many believe will see the financial burden on many over-leveraged households snowball, thus hurting the financial health of local banks. A one-percent rise in the key rate is estimated to increase individuals’ interest burden by 5.4 trillion won, according to LGERI. “Korea is one of the countries highly exposed to household debt crisis. This, combined with spiraling house prices, can become a ticking time bomb for the Korean economy,” a senior BOK economist said on condition of anonymity. Rising inflation Inflation has emerged as the major stumbling block preventing the economy from fully recovering from the economic slump, as commodity prices are skyrocketing while food prices are not declining. According to the Korea National Oil Corp. Thursday, Middle East crude for sale to Asia recently climbed to its highest level in almost 27 months as futures in New York rallied on expectations that demand growth will accelerate. Korea, which relies almost entirely on imports for its oil needs, is the world’s ninth-largest oil consumption country. The problem is that hikes of commodity prices will cause a domino effect on local consumer prices as they are translating into domestic gas prices and other basic costs. Korea’s prices of imported goods and raw materials climbed 8.2 percent in November from a year earlier, the fastest growth since an 11.3 percent rise in May. In its recent report, the central bank expressed concerns that consumer prices will be under upward pressure due to the high-flying costs of oil, forecasting the prices to grow in the mid-3 percent range for a considerable period of time. "As the global economy recovers, raw material costs will continue to rise and a pick-up in China's inflation is expected to exert pressure on Korea's consumer prices to increase as well," it said in a statement. At a meeting with foreign correspondents here, BOK Governor Kim Choong-soo warned of the so-called Chinaflation, inflation triggered by price hikes in China, saying, “Wage hikes and rising prices in China will exert upward pressure on domestic prices.” Market volatility Currency fluctuation may be another hurdle in the way of the full recovery of the Korean economy. The Korean won is highly likely to gain more ground against the U.S. dollar due to the weakening of the greenback. The won-dollar rate is forecast to drop to around the 1,000 won level by the end of 2011, eroding the competitiveness of local exporters. In particular, the Korean won is highly vulnerable to the movement of foreign funds as recent rallies in the local equity and bond markets have been mostly boosted by foreign investors. Therefore, if these investors leave the country en masse due to unexpected shocks abroad, it can deal a blow to the local financial market. The global financial market is expected to remain unstable next year due to debt trouble in Europe, continuing deleveraging in the United States and China’s tightening policy. Jobless growth The Korean economy has been undergoing jobless growth _ economic expansion with no job creation. The concern has been easing in line with a mild recovery in the local job market fueled by a fast economic rebound. However, the country is faced with another malaise in the job market _ youth unemployment. Joblessness among young adults has continued on an upward spiral despite a slight recovery in the overall job market. This is seen as a serious problem for the economy as the problem has a lasting impact on the entire economy through multiple channels. According to Statistics Korea, the employment rate among those aged from 15 to 29 logged 40.4 percent for the first 11 months of this year, below the pre-crisis level of 41.6 percent in 2008. It was even lower than the 40.5 percent in 2009 when the economy was at the center of the global crisis. If the job market remains at this level next year, it will lead to sluggish consumption due to income decreases and slow corporate investment, which could be another threat to economic recovery in 2011. Two-track recovery One of the major threats to the Korean economy is the global economy facing a patchy recovery due to continued stiff head winds, such as global rebalancing, high-flying commodity prices, and currency disputes among advanced economies. Global economies will continue to fall into two distinctive camps dubbed the “two-speed world.” Western economies and Japan will undergo a slow recovery mode, while developing economies, including emerging market economies, will continue to enjoy robust growth. Under this new trend, the Korean economy and companies should shift their focus to emerging economies from developed countries to capitalize on the upcoming change triggered by the outcome of the global financial crisis. “We expect the global recovery to remain a two-track one, with the emerging economies growing much faster (6.6 percent after 2010’s likely 7.4 percent) than the developed world economies (2.2 percent after 2.6 percent),” Nomura Securities said in its 2011 outlook report. “For the developed economies, the post-crisis world likely means prolonged anemic growth.” Global rebalancing Following the global crisis, one of the main transitions happening in the world is global rebalancing. This change, which will undoubtedly create some volatility, but also some extraordinary business opportunities are unlikely to undergo a soft landing next year. “The post-crisis global economy is struggling to rebalance smoothly. The tensions and imbalances in the global economy are likely to remain sources of market volatility and downside risk to the economic outlook,” Nomura said. “Output gaps in many emerging economies, some very small to begin with, have closed or are closing way ahead of those in developed economies, and high growth in the former is likely to continue to attract strong global capital flows, complicating policy management and raising risks of overheating and policy errors,” it added. Lingering woes in Europe With Ireland’s debt trouble showing signs of spilling over into other European countries, debt trouble in the region still remains as one of the main threats to the economy. ``Among the PIIGS (Portugal, Italy, Ireland, Greece and Spain) nations, two countries (Greece and Ireland) are already receiving European Union financial aid, and all eyes are now on Portugal and Spain … It’s unlikely that the eurozone will be able to regain the confidence of the market in 2011 and the financial instabilities are likely to continue,’’ Lee of LGERI said. ``Europe’s ongoing financial troubles will obviously have a major impact on the global economy and financial markets, and could also shake Korea’s financial markets severely. A crisis in Europe could also lead to a retreat of the massive amount of Europe-based capital currently in Korea. Korea could also lose a chunk of its foreign investment money should investors move increasingly toward `riskless’ assets.’’ China’s tightening policy China’s move to tighten credit is also likely to be a drag on the Korean economy, as a slowing Chinese economy means less exports for Korean companies. China is the nation’s largest trading partner in the world. China's central bank, the People's Bank of China (PBOC), announced on Dec. 25 that it will raise the one-year lending and deposit rates for the second time this year, as the country continues its battle against inflationary pressure. The timing of the second rate hike announcement came as a surprise, although the markets had been expecting China would take additional tightening measures after its consumer price index (CPI) for November was released earlier this month. “The rate hike by China’s central bank was seen as a warning toward inflation expectations for the new year,” the BOK senior economist said. "A number of quantitative tightening policies, such as raising banks' reserve ratios, did not work as effectively as the central bank wanted," he added. "That is why the Chinese authorities made a surprise move on Christmas Day, in order to curb the market speculations about inflationary pressure." Currency dispute Although leaders of the Group of 20 (G20) member nations reached a compromise on currency and trade issues at the G20 Seoul Summit in November, chances are still there that currency tensions will deepen again as the agreements were too vague. On the surface, currency tensions are expected to ease with the agreements but there are still high risks of foreign exchange disputes between major countries turning into currency wars as diplomatic wordings in the statement are not binding and specific. “I don’t think the G20 made meaningful progress to solve the global imbalance at the Seoul summit. By failing to agree on specific proposals for reducing the imbalances the declaration may have increased the likelihood of a currency war. I expect the U.S. Treasury now will be forced to name China a currency manipulator,” ING Group senior Asia economist Tim Condon told The Korea Times.

cjs@koreatimes.co.kr

'Rat bread' fabricator faces arrest

The scandalous “rat bread” case, in which a bakery outlet owner alleged the body of a rat was found in a loaf of bread of a rival franchise, ended up being a hoax cooked up by the accuser himself. Police said Friday they have sought an arrest warrant for the 35-year-old owner, surnamed Kim, taking into consideration the severity of the case that has caused a huge public stir for the last few days. Police said Kim confessed that he put the rat’s body into the loaf of bread he baked himself on the morning of Dec. 23, took photos of it and uploaded them onto the Internet, using someone else’s ID. He will be charged with violation of information protection and other related laws. Kim surrendered himself to the police at 8:55 p.m., Thursday and confessed to the fabrication of the “rat bread.” "I put a rat’s body into the bread to deliver a light blow to the rival store, but the case grew far bigger than I expected," he told reporters, while being taken away by police officers. “I’m solely responsible for this case and I hope that this won’t damage others.” Kim, the owner of an outlet of bakery franchise Tous Les Jours, said he made up the case to steal customers from a Paris Baguette shop that is located about 100 meters from his store in Pyeongtaek, about 70 kilometers south of Seoul. Paris Baguette, a unit of food conglomerate SPC Group, is the nation’s largest bakery chain, and Tous Les Jours is the runner-up chain, belonging to CJ Foodville.

chojh@koreatimes.co.kr

Major newspapers win new TV licenses

By Kim Tong-hyung

The country’s major newspapers became winners, Friday, of an intense contest over the licenses to operate new cable television stations, an essential part of the Lee Myung-bak government’s aspirations to deregulate the media industry.

The Chosun Ilbo, JoongAng Ilbo and Dong-A Ilbo, Korea’s three biggest dailies, and the Maeil Economic Daily, a leading local business newspaper, landed the rights to operate ``comprehensive programming’’ channels, which are to provide original news content on top of entertainment programs, sports broadcasts and documentaries.

Yonhap News, the state-run wire agency, edged four competitors to acquire a license to operate a news-only channel to complement YTN. The Maeil Economic Daily will soon retire MBN, its existing cable news channel, as regulators won’t allow the group to operate it along with its new comprehensive programming channel.

The five new cable channels are expected to debut sometime during the latter half of this year.

The Korea Economic Daily and cable industry heavyweight Taekwang Group were the other companies that had been in contention for comprehensive programming channels, while Herald Media, Money Today, Seoul Newspaper and CBS had been in play for the news-only channels.

The winning bids were announced after a week-long review process by the Korea Communications Commission (KCC), which formed a panel of 14 experts picked from the fields of broadcasting, economics, business management, law, technology and civic groups.

However, the KCC failed to avoid controversy in the way it handled the media consolidation. Two of the five KCC commissioners picked by the opposition political parties refused to take part in Friday’s voting, questioning whether the agency had managed a fair and balanced evaluation process of the candidates.

``We hope that the new media outlets debuting in the New Year will push Korean broadcasting to another level and deliver better content that will allow them to expand internationally and become globally-relevant media companies,’’ said KCC Chairman Choi See-joong in a packed news conference at the agency in Seoul.

``Selecting the new comprehensive programming and specialized news channels has been a crucial and complicated issue for the KCC since it was launched (as the regulator for broadcasting and telecommunications). So it’s regrettable that, in the most important moment of the process, there was needless noise generated over the heads of the reviewing panel.’’

The newspapers have been contesting for the newly-opened television spots since last year, when the government lifted the country’s traditional cross-ownership ban that prevented one corporation from owning newspapers and television stations at the same time.

Critics raise concerns that the compromised diversity in the ownership of news organizations could hurt discourse, especially at a time when the line between profit and reporting is becoming blurry in a toughening environment for the print media.

However, the government contends that deregulation is crucial for the growth of the media industry and the emergence of globally-competitive players that could hold their own against international players.

The desperation of the newspapers involved in the television grab pretty much assured that any result would be controversial, and public-relations (PR) conscious government officials are apparently wary about the backlash from media outlets that failed to make the cut.

In attempting to acquire a face of political neutrality, the KCC picked Seoul National University telecommunications expert Lee Byeong-gi to head the review board last month. Lee was one of the five original KCC commissioners appointed by opposition lawmakers, alongside the still-remaining Lee Kyung-ja, before he resigned earlier this year and was replaced by Yang Mun-seok.

However, bringing Lee back into the picture is now looking increasingly like a mistake, as it has been found that he has been working closely with Park Geun-hye, a potential future presidential candidate of the ruling Grand National Party (GNP), as one of her policy advisors.

``It’s hard to believe the KCC’s explanations that it didn’t know about Lee’s relations with Park,’’ Lee Kyung-ja said before leaving the KCC conference room ahead of the vote.

``The selection of the reviewing committee is clearly the most important factor in which the KCC will be judged over the way it handled the licensing process. So it’s regrettable that there were political and ethical issues related to the man picked to head the reviewing committee. I can’t take part in a voting process when any decision by the KCC will be suspected of compromised neutrality,’’ she said.



메이저 신문사 종편 싹슬이

치열했던 새 텔레비전채널 사업권경쟁은 메이저 신문사들의 승리로 막을 내렸다.

방송통신위원회는 31일 전체회의를 열고 이 같은 종합편성 방송채널 및 보도전문 방송채널 사업자 선정 결과를 의결한 뒤 공식 발표했다.

종합편성 방송채널에 조선일보, 중앙일보, 동아일보, 매일경제신문이 보도 전문방송채널에는 연합뉴스가 선정되었다.

thkim@koreatimes.co.kr

British soccer flick a hit in Pyongyang

By Kim Young-jin Pyongyang is abuzz after the North Korean government aired the film “Bend It Like Beckham” earlier this week in a rare broadcast of Western media content, British diplomats say. The screening, aired Sunday, was organized by the British Embassy in Pyongyang to mark 10 years of diplomatic ties. It was the first-ever television broadcast of a Western film in the Stalinist state. “Diplomats in Pyongyang say it created quite a buzz in the city,” an official of the British Embassy in Seoul said on condition of anonymity. “North Koreans in Pyongyang are talking about the film and its content. They found it interesting. ” British Ambassador to Pyongyang Peter Hughes said after the screening that it was “part of the U.K.’s policy of engagement with the North Korean people.” The embassy had been in talks with representatives of the North’s state media since early this year, as well as with the producers of the film, to arrange the broadcast. “The film was chosen because of the theme of soccer as well as other interesting themes such as multiculturalism, equality and tolerance,” the official said. The embassy also took note of the “nice link” the two counties have over soccer. Britain hosted the North Korean squad at the 1966 World Cup. The 2002 film, which usually clocks in at 112 minutes, was cut by some eight minutes, reports said. Pyongyang-based diplomats who viewed the film said it was “not obvious” which parts had been edited, the official said. Given its 8 p.m. timeslot, ratings were predicted to have been quite high, the official said. The comedy tells the story of a daughter of a Sikh family who follows her passion for soccer despite the objections of her conservative parents. It was a departure from the usual fare on North Korean television, which typically runs tightly-controlled news broadcasts, documentaries and soap operas. Soccer is beloved in the isolated state. But the film also raises issues such as interracial relationships, sexism and Westernization. Western media is generally frowned on in the Stalinist state, but Pyongyang does host a biennial international film festival that has included entries from around the world. The film, which stars Parminder Nagra, Keira Knightley and Jonathan Rhys Myers, ran at the festival in 2004.

yjk@koreatimes.co.kr

Half of Koreans say China’s image deteriorated

By Kang Hyun-kyung Nearly half of South Koreans believe that North Korea’s attack on the warship Cheonan and shelling of Yeonpyeong Island had a negative impact on the image of China, a decades-long benefactor of the North, a poll showed Friday. The survey results come amid China showing few signs of using its influence over the reclusive nation to stop the belligerent acts, despite international pressure. The poll conducted by the Hankook Ilbo, a sister paper of The Korea Times, in collaboration with the polling agency Millward Brown, showed 48.9 percent came to have a bad image of China after the North’s attacks on South Korea. Those who answered there had been no change in their perceptions toward China before and after the Cheonan and Yeonpyeong attacks stood at 44.3 percent. In May, a multinational investigation team concluded that North Korea torpedoed the 1,400-ton frigate Cheonan on March 26 near the disputed waters in the West Sea. The tragedy took the lives of 46 sailors. Eight months later, North Korea launched an artillery attack on the South Korean island in the West Sea, killing four South Koreans, including two civilians. The series of North Korean provocations prodded the U.N. Security Council (UNSC) members to hold meetings to discuss ways to stop the North’s attacks. But it failed to come up with a binding statement that could send an unmistakable message against the North because of China’s opposition. A veto-wielding permanent UNSC member, China expressed worries about the negative fallout of such possible international actions on the stability of the Korean peninsula. China’s siding with the North invited a barrage of criticism from the international community. Governments called on the North’s closest ally to play a constructive role in maintaining peace between South and North Korea. Despite the mounting pressure, China showed few signs of stepping back from its stalwart support for North Korea. The Hankook Ilbo poll showed that China’s maintaining a “lips-and-teeth” relationship with the Stalinist nation had a negative effect on its image among South Koreans. The survey also found that about half of South Koreans (47.6 percent) believed that the United States, the strongest ally of the South, was the country with which the nation should continue to work closely with over the next years. China came in second with 36.2 percent, followed by Japan (8.2 percent) and Russia (2.2 percent). On North Korea, 51.2 percent of South Koreans said the government should draw up a tougher North Korea policy, whereas 20.4 percent said the current policy was fine. Only 24.7 percent said the government should soften its stance on the North. The poll was conducted on 1,000 people across the nation on Dec. 26 and 27 and has a margin of error plus and minus 3.1 percentage points. China: 중국이미지, 연평도 공격 이후 더 나빠져 천안함과 연평도 공격 이후에도 시종일관 북한을 지지해 오던 중국에 대해 한국인들이 더 나쁜 인상을 갖게 된 것으로 최근 한국일보 여론조사 결과 나타났다. 한국일보가 미디어 리서치에 의뢰해 실시한 최근 여론조사에서 48.9%의 한국인들이 중국에 대한 이미지가 더 나빠졌다고 응답했다. 이같은 결과는 연평도 공격이후에도 중국이 국제무대에서 북한을 두둔하는 모양새를 취한 이후 나와서 주목을 받는다. 동 여론조사에서는 또한 한국이 미국과 가장 긴밀하게 협력해야 하는 국가 1위를 기록했으며, 중국이 다음을 잇는 것으로 나타났다. 절반 이상의 응답자들은 정부의 대북정책이 현재 보다 더 강경해야 한다고 생각하는 것으로 나타났으며, 유연해야 한다는 응답은 24.7%에 그쳤다.

hkang@koreatimes.co.kr

3 outer spaceships approaching Earth: Pravda

Researchers have identified three giant objects, probably outer spaceships, approaching Earth, Russian daily Pravda reported Wednesday. The largest object is 240 kilometers in diameter, the daily quoted researchers of the Search for Extraterrestrial Intelligence (SETI) headquartered in California. Two others are smaller. At present, the objects are beyond the orbit of Pluto. Visible light detecting telescopes will be able to view the spaceships as soon as they reach Mars's orbit. SETI researchers expect the spaceships to pass by Earth in mid-December 2012. The researchers detected the spaceships by technology originally designed for researching the northern lights in Alaska. The U.S. government has been informed about the event, the paper said. There are frequent reports about extraterrestrial activity in Russia. 프라우다, “외계우주선 3대 지구로 오는 중” 외계인에 대한 보도가 잦은 러시아에서 이번엔 ‘우주선 3대가 지구를 향해 오고 있다’는 발표가 나왔다. 러시아 일간지 ‘프라우다’는 지난 22일 “‘지구외문명탐사연구소(SETI)가 최근 세 대의 거대한 우주선이 지구를 향해 오고 있다는 발표를 했다”고 밝혔다. SETI에 따르면 가장 큰 우주선은 지름만 240㎞인 초대형이며 나머지 두 개는 이보다는 작은 규모인 것으로 알려졌다. 우주선들은 현재 명왕성 궤도 너머에 있는 것으로 추정되며 곧 화성 궤도까지 다다를 것으로 연구소는 예측했다. SETI 관계자는 “이번 우주선 관찰은 미국 알라스카에 위치한 HAARP 관찰시스템(오로라 현상 연구)으로 발견됐다”며 “우주선은 오는 2012년 지구에 도착할 가능성이 높다”고 밝혔다. 미국 정부도 최근 해당 사실에 대한 보고를 받았다고 덧붙였다.

Lee shakes up Cabinet to seek new beginning

By Na Jeong-ju President Lee Myung-bak nominated a three-term ruling party lawmaker who had pushed for reform of the media industry as the new culture minister in a wide-ranging reshuffle of the Cabinet, the presidential secretariat and major government agencies, Friday. The shakeup came amid growing signs of a division in the governing Grand National Party since the party’s former Chairwoman Rep. Park Geun-hye, arguably the biggest political rival for Lee, launched a think tank that is expected to support her bid for the next presidency, early this week. Lee’s aides have expressed concern that her activities for the election slated for December 2012 could weaken Lee’s grip on state affairs and make him an early lame duck ― he is scheduled to end his single five-year term in early 2013. “The President conducted the reshuffle to make a fresh start in the New Year,” senior presidential secretary for public relations Hong Sang-pyo told reporters. “The new lineup will be tasked to realize the vision of a fair society and seek social unity.” GNP lawmaker Choung Byoung-gug, 52, head of the National Assembly’s Culture, Sports and Tourism Committee, was tapped as culture minister. The panel has overseen the government’s plan to reform the media industry. The country’s broadcasting regulator on Friday selected four media consortia led by major conservative daily newspapers ― Chosun Ilbo, Dong-A Ilbo, JoongAng Ilbo and Maeil Business Newspaper ― as winning bidders for new cable television licenses. Lee also named Chung Tong-ki, 57, formerly a senior prosecutor, to lead the Board of Audit and Inspection. The position of the top auditor has remained vacant since predecessor Kim Hwang-sik became prime minister in October. Choi Joong-kyung, 54, senior presidential secretary for economic affairs, was tapped as knowledge economy minister. He had long worked at the finance ministry and also served as Seoul’s ambassador to the Philippines. The nominees are subject to National Assembly confirmation hearings, which are expected to take place in a few weeks. The installment of the politician and key presidential aides into the Cabinet is widely seen as a move to tighten Lee’s grip on state affairs and improve relations with the ruling party, analysts say. Former Vice Finance Minister Kim Seok-dong, 57, was designated head of the Financial Services Commission and Kim Dong-soo, chief of Korea Exim Bank, as chairman of the Fair Trade Commission. Kim Young-ran, 54, known for her service as Korea’s first-ever female justice of the Supreme Court from 2004 to 2010, was appointed as head of the Anti-Corruption and Civil Rights Commission. The heads of the three government agencies are minister-level posts. Lee also named Ahn Kwang-chan, 64, an ex-Army general, as senior presidential secretary for national crisis management, a newly created post tasked with dealing with national emergencies. Kim Young-ho, 51, a professor at Sungshin Women’s University, was chosen as the new secretary for North Korean affairs and Lee Jong-hwa, 50, a professor at Korea University, as adviser for international economic policy. The GNP hailed the reshuffle, but the main opposition Democratic Party criticized Lee for giving important posts to his aides, vowing a thorough screening of the nominees’ qualifications at the parliamentary hearings. 이명박 대통령이 장관급 6명을 교체하는 개각을 단행했다. 이 대통령은 문화체육관광부 장관에 3선 한나라당 의원의원으로 미디어 정책에 전문성을 갖춘 한나라당 정병국 의원, 오랫동안 공석이었던 감사원장에 대검 차장을 지낸 법조인 출신 정동기 전 청와대 민정수석을 내정했다. 지식경제부 장관에는 재정부 차관을 지낸 정통 경제관료 출신 최중경 청와대 경제수석을 지명했다. 공정거래위원장에는 역시 재정부 차관을 지낸 김동수 수출입은행장을, 금융위원장에는 금융정책통인 김석동 전 재정경제부 차관을 내정했으며, 국민권익위원장에는 최초의 여성 대법관으로 유명한 김영란 전 대법관을 지명했다.

jj@koreatimes.co.kr

Ancient Roman statue uncovered winter storm in Israel

A long-lost Roman statue buried for thousands of years has been unearthed by massive winter storms that have lashed the coast of Israel recently, the Daily Mail reported. The mysterious white-marble figure of a woman in toga and 'beautifully detailed' sandals was found in the remains of a cliff that crumbled under the force of 60mph winds and enormous 40ft waves. The statue, which lacks a head and arms, is about 4ft tall and weighs 440lbs. It was found at the ancient port of Ashkelon, around 20 miles south of Tel Aviv. It dates back to the Roman occupation of what was western Judea, between 1,800 and 2,000 years ago. The incredible find, which was discovered by a passer-by, will now be put on display in a museum. 'The sea gave us this amazing statue,' researcher Yigal Israeli said. 'The statue fell into the sea when the ancient maritime cliff collapsed.' But the find has been tinged with heartbreak for researchers after the storms destroyed the breakers protecting the Roman-era port of Caesarea, threatening to wash away one of the world's most important historic sites. 폭풍의 선물 고대 로마 조각상 수 천년 동안 묻혀 있어 오랫동안 잃어버린 로마 조각상이 최근 이스라엘 해안으로 대규모 겨울 폭풍이 몰아치면서 발견됐다고 영국의 데일이 메일이 보도했다. 토가를 입고 ‘아름답게 세세하게 빚어진 샌들”을 신은 신비로운 여성의 흰 대리석상이 시속 96km 강풍과 12미터의 파도로 절벽이 허물어지면서 나온 유적지에서 발견됐다. 머리와 팔이 없는 이 석고상은 1.2미터 크기에 19.8kg 무게이다. 이 상은 텔아비브 남쪽 약 36km 지점인 옛 아쉬켈론 항에서 발견됐다. 1,800년 내지 2,000년전 사이 서부 유대 지역의 로마 지배 시대로 거슬러 올라간다. 한 행인에 의해 발견된 이 믿기지 않은 조각상은 박물관에 전시된다. 이스라엘의 한 연구가는 “바다가 이 놀라운 조각상을 우리에게 주었다”며 “이 조각상은 옛 해안 절벽이 붕괴되면서 바다에 떨어진 것”이라고 말했다.

NK risk, household debt top list of 2011 concerns

By Kim Tong-hyung

Geopolitical tension and ballooning household debt are the top economic concerns for South Korea heading toward 2011, according to a leading economic think tank.

The weakening recovery of the global economy and the strengthening Korean won, which may deteriorate the profitability of local firms, are issues that warrant close attention as well, the LG Economic Research Institute (LGERI) said.

“There is a possibility that the heightened geopolitical risk following the North Korean shelling of Yeonpyeong Island could spark capital flight and expand the ‘Korea discount’ on the stock market. The country’s household debt has been continuing to grow even after Korea’s exit from recession, and this, combined with the expected increase in interest rates and the future course of the housing market, represents an uncertainty with potentially serious consequences,” said LGERI’s Lee Chang-seon.

“The profitability of South Korean companies could slide rapidly being affected by sluggish global markets, higher interest rates and the strengthening local currency.”

The geopolitical risks, stoked by North Korea’s warlike provocations and nuclear program, growing household debt, and expectations of narrowed profit margins for local firms were among the seven major issues identified by LGERI that it believes could shape and define South Korea’s financial market and economy for 2011.

Other factors include the ongoing financial troubles in Europe; the possible “side effects” from monetary policies of major economies such as the United States, European nations and Japan, which are likely to keep their key interest rates near zero for an extended time; and fallout from the global discussion on reforming the international monetary system.

“Among the PIIGS (Portugal, Italy, Ireland, Greece and Spain) nations, two countries (Greece, Ireland) are already receiving European Union financial aid, and all eyes are now on Portugal and Spain ... It’s unlikely that the Euro Zone will be able to regain the confidence of the market in 2011 and the financial instabilities are likely to continue,” Lee said.

“Europe’s ongoing financial troubles will obviously have a major impact on the global economy and financial markets, and could also shake South Korea’s financial markets severely. A crisis in Europe could also lead to a retreat of the massive amount of Europe-based capital currently in South Korea. Korea could also lose a chunk of its foreign investment money should investors move increasingly toward ‘riskless’ assets.”

The South Korean economy had displayed durability despite North Korean antics in previous years, but Lee is among a growing camp of observers who believe that the effects of the recent cross-border clashes could be more profound.

The North Korean shelling of South Korea’s Yeonpyeong Island near the disputed maritime border last month killed four people, including two civilians, and left scores of houses destroyed. South Korea also holds North Korea responsible for the sinking of its warship, Cheonan, in May, which killed 46 sailors.

“Should the military clashes continue without a breakthrough in resolving the conflict between the two countries, the negative effects on the South Korean economy could amplify, which may lead foreign investors to bail from South Korean stocks, bonds and currency,” Lee said.

“The year 2011 will be a crucial period in determining the geopolitical situation on the Korean Peninsula, as well as the effect on the South Korean economy and financial markets.”

The country’s household debt has been rising at a rate of 12 percent per year since 2000 to reach 770 trillion won (about $670 billion) at the end of September this year. This, combined with spiraling house prices, represents a ticking time bomb for the South Korean economy, Lee said.

In a poll of 16 private and public economic research institutes conducted by the Federation of Korean Industries (FKI), the respondents picked the escalated tensions between the two Koreas as the biggest source of uncertainty for 2011, and job creation as the top priority for the economy in 2011. They also predicted the country’s economy to grow 4.2 percent in 2011.










북한 리스크, 가계 부채가 2011년 경제 최대 복병

북한의 무력도발과 핵 개발에 의해 부각된 지정학적 리스크, 그리고 늘어만 가는 가계 부채가 2011년 한국경제의 최대 불안요인으로 꼽혔다.

LG경제연구원은 또한 세계 경제의 회복둔화와 환율하락 그리고 국내기업의 수익성 저하 우려 등을 내년 한국경제의 복병으로 꼽았다.

thkim@koreatimes.co.kr

Seoul to seek more FTAs next year

By Cho Jin-seo South Korea will seek to clinch more free trade agreements (FTAs) with emerging countries, including those from South America and Africa, in a bid to boost trade, the main engine behind the country’s rapid economic growth. Unveiling its 2011 international economic policies Sunday, the Ministry of Strategy and Finance said that pursuing FTAs with emerging countries will become the government’s most important economic mission. The government is determined to implement FTAs with the United States and the European Union in the New Year through ratification at the National Assembly. It also intends to wrap up ongoing negotiations with Australia, Turkey and Colombia. Further deals can be settled with several South American nations, Israel, Mongolia, Panama, Costa Rica and the Dominican Republic, according to the report prepared by the ministry, the Ministry of Knowledge Economy and 15 other economy-related ministries and agencies. The main reason behind the urgency to increase the number of FTAs is emerging China, they said. “Considering China is also actively expanding free trade deals with countries such as Taiwan and members of ASEAN, we must prepare for the possibility that our companies may lose competitiveness (against China),” the report said. “Also, as the Asian economy grows, we are becoming more important not only as a provider of goods to the global market but also as a consumer of goods.” Yoon Jeung-hyun, the finance minister, said on Friday that numerous FTAs will bring “fruits to all.” “Our global FTA network has enabled Korean firms to expand its production network and raise competence levels,” he said during a cabinet meeting. “Since our economy is highly dependent on exports and imports, signing FTAs is necessary for the growth of our economy.” Only 14.4 percent of Korea’s entire trade comes from nations under FTAs, such as Chile, Singapore, India, ASEAN and EFTA (Iceland, Norway, Switzerland and Liechtenstein). The government wants to eventually increase this portion to 80 percent. Most recently, Korea signed an FTA with Peru. The deal will take effect in the first half of 2011 at the earliest. Within Asia, deals to eliminate tariffs are being carefully examined with China and Japan. The government has commissioned research on the effect of a Korea-China FTA, and the results are due by the end of next year. As for Japan, it is up to the willingness of the island nation on whether to resume talks, the report said. A tri-nation FTA among Korea, Japan and China is also under consideration. The long-delayed deal with the United States has also been settled and it is waiting to be approved by lawmakers of the two. The FTA with the European Union is also pending at the National Assembly, and is planned to go in effect in July next year. The government assesses that Korea’s exporters and consumers have benefited from its previous FTAs with Chile and Singapore, while damage to domestic industries has been limited. But there are worries that FTAs with more advanced and larger economies such as the EU and the United States may pose a bigger threat to the farming and services industries here. Meanwhile, the government said it will help energy and natural resources firms by expanding financial support. The Korea Exim Bank, a state corporate loan provider, will increase its loan programs by around 50 percent to firms in the energy, power generation and resources industries, the report said.

cjs@koreatimes.co.kr

Government hit for 'submissive' diplomacy

South Korea releases 3 Chinese fishermen without punishment By Jung Sung-ki The Lee Myung-bak administration is under fire for its “submissive” diplomacy with China over the release of three Chinese fishermen who attacked South Korean coastguards during a fatal clash between a fishing boat and a patrol ship in the West Sea earlier this month. The fishermen were freed and returned home Saturday without punishment. Earlier, Seoul vowed to deal sternly with the men accused of having attacked coastguards with iron pipes, clubs and shovels, injuring four of them. The incident occurred off the western coast as the Coastguard tried to prevent Chinese boats from fishing illegally in Korean waters. Another Chinese trawler intentionally rammed the patrol vessel to allow other fishing boats to sail back into international waters ― but the boat sank after the impact. One fisherman died in the clash. “We decided not to indict the Chinese crew as they were not actively involved in the crime at the time,” a Seoul official was quoted by Yonhap News Agency as saying. “They also fully cooperated in our investigation.” Some coastguards denounced the release of the fishermen. “I could understand that the government freed the fishermen in order not to stir up a diplomatic row,” a coastguard said, asking not to be named. “But we are worried that we will not be able to crack down on illegal fishing activities by Chinese fishermen effectively as the release could set a bad precedent.” Another coastguard official said, “The government should have dealt with this case strictly in accordance with the law.” About 40 Chinese fishing boats are apprehended for illegal fishing every year, according to government data. Chinese vessels appear to be going further afield to feed a growing domestic demand for seafood. China had a bitter diplomatic spat with Japan in September when the latter detained a Chinese fishing captain near contested islands known as Senkaku in Japan and Diaoyu in China. As China pressured Japan hard by employing economic weapons such as the suspension of the supply of rare earth metals, Japan released the captain, inviting harsh criticism from the Japanese public. Relations between China and South Korea are being tested in other issues. In the aftermath of the shelling of Yeonpyeong Island it called for the reopening of the six-party talks on North Korean denuclearization, and also criticized Seoul’s live-fire drills. Beijing also said that Pyongyang has the right to use nuclear power for peaceful purposes. 對중국 ‘굴욕’ 외교 논란 정부가 한국 해경들을 폭행한 중국 선원들을 아무 처벌 없이 신속히 석방함에 따라 중국에 저자세 외교를 취하는 것이 아니냐는 비판이 일고 있다. 정부는 25일 구금되어 있던 네 명의 중국 선원들을 석방. 본국으로 송환했다. 한국 정부는 폭력을 휘두른 중국 선원들을 엄중히 처벌 할 것이라고 공언했으나 공염불이 된 셈이다. 한 정부 관계자는 “해당 중국 선원들이 폭력에 적극 가담하지 않은 것으로 확인돼 석방하게 됐다”며 “중국 선원들은 조사에 적극적으로 협조했다”라고 말했다. 하지만 일부 해경들은 중국선원 조기 석방에 불만을 제기했다. 한 해경은 “정부가 외교 마찰을 피하기 위해 석방을 해 준 것은 일면 이해가 가지만 문제는 이후에 중국 선원들이 우리 영해에서 불법 조업을 했을 때 이번 석방이 선례가 되어 적극적인 제재가 힘들 수 있다”라고 불평했다.

gallantjung@koreatimes.co.kr

MIC gives aid to needy students

KLANG: Two hundred and fifty poor children in Kapar received school supplies through MIC's "Back To School" programme. MIC Youth chief T. Mohan presented the aid, contributed by both Kapar and Selangor MIC, to students of SJK (T) Methodist Kapar, near here, yesterday.

He said the programme was an annual event carried out by the Barisan Nasional component parties, especially at the divisional level.

However, he said, he did not understand why there were certain quarters who questioned BN's or MIC's contributions to the Indian community. -- Bernama


Read more: MIC gives aid to needy students http://www.nst.com.my/nst/articles/22sco/Article#ixzz19L4jxXj6

Bountiful catch, then disaster

KEPALA BATAS: It has been six years but the fishing community in Kuala Muda here can still remember the "claws" of the 2004 tsunami. Their voices shake as they speak about the fateful day when the sea, which had been very kind to them turned into a "monster", lashing out in fury.

Although they have moved on with their lives since the Dec 26, 2004 incident, the disaster continues to haunt them.

Veteran fisherman Yaapar Ismail, 63, said everybody was caught off-guard despite the strange signs that appeared several days before the tragedy.
Yaapar, or Pak Ngah as he is fondly known as, said a week before the tsunami, the fishermen netted huge catches.

"We normally took home catches worth RM200 and RM300 daily but several days prior to the tragedy, the catches skyrocketed and we were earning between RM3,000 and RM4,000 a day. It was unbelievable."

Yaapar said it was a bizarre phenomenon but little did the fishermen realise what was really going on underneath the ocean bed.

Two days before the tsunami, Yaapar said he and the other fishermen spotted dozens of dolphins in the Kuala Muda waters.

"It was like they were running away from something," he said.

When the deadly tidal waves struck, Yaapar said he was at his nephew's wedding and the house was near the sea.

"It was 12.45pm and the tents were packed with guests. Someone pointed to the sea and we saw whitish lines.

"We did not suspect anything was amiss until 30 minutes later, when the waves grew bigger and hit the buoy located about one nautical mile off the Kuala Muda coast. The lines turned into huge waves and struck the beach, sending the guests running helter-skelter."

As the tidal waves receded, the villagers were shocked to see the sea "dry up" as far as one kilometre.

"We were bewildered. It was like the sea had been sucked up by a great power, leaving tonnes of fish on the coastline."

However, nothing prepared the villagers for the second wave which returned with greater force minutes later.

Yaapar said all the wooden huts built along the rock bunds collapsed.

The tragedy claimed two lives in his village while 10 people died in the nearby Kota Kuala Muda village.

Another fisherman, Fauzi Yusof, 49, said the tidal wave swept away everything, but the Kuala Muda folk had the solid rock bunds to be thankful for.

"Otherwise, the damage could have been more devastating," he said.

The father of five said the village was inundated in black water.

His wife, Rohana Ramli, 47, who runs a food stall in front of their house facing the beach, said the waves were four metres high and completely destroyed her stall.

"I was stunned. The only thing on my mind was to get my five children to safety.

"I can never forget all this. The waves were like a fierce monster. The incident will continue to haunt me for the rest of my life."


Read more: Bountiful catch, then disaster http://www.nst.com.my/nst/articles/12bata/Article#ixzz19L4cTXfo

Four cousins killed

PASIR MAS: Four cousins were killed when the car they were travelling in skidded and crashed into a tree before landing in a drain at Km7, Jalan Pasir Mas-Tanah Merah at Kampung Kenjong in Kangkong here on Saturday night. They were identified as Afiq Izudin Abdul Aziz, 17, and his brother, Irshahnudin, 13, Ishraf Ibrahim, 11, and Nur Qistina Hanafi, also 11.

All of them died at the scene, except Qistina, who succumbed to her injuries while on the way to Pasir Mas Hospital.

The driver of the car, Amir Asyraf Abdul Aziz, 22, who is also their cousin, was seriously injured. He was sending his cousins to their tuition centre here from their home at Chabang Tiga, Chetok, when the accident happened at 7.45pm.
Ishraf's father, Ibrahim Awang Lah, 38, said he was in Kota Baru when his brother-in-law called to inform him about the accident.

"I don't know what led to the crash," he said at the Pasir Mas Hospital mortuary.

Amir's friend, Asyrizul Fikri Che Hassan, 22, said the car driven by Amir had earlier overtaken his car.

"I lost view of the car and minutes later, I saw a man on the road flagging us to stop. The car was already in a drain."

Asyrizul said all five victims were thrown out of the vehicle, with one of them pinned under the car.

Pasir Mas police chief Assistant Commissioner Haliludin Rahim confirmed the accident.


Read more: Four cousins killed http://www.nst.com.my/nst/articles/22cou/Article#ixzz19L4QK73p

'Give us a chance to learn, change'

The failure to listen to the views of youths, finding out their needs and guiding them would lead to Barisan Nasional becoming meaningless, warns Datuk Seri Hishammuddin Hussein. The Umno vice-president and Home minister shares his views with SAJAHAN WAHEED and SHUHADA ELIS Q: The majority of young voters believe their votes are not important and that voting will not change their lives. What can Barisan Nasional and Umno do to change this perception?
A: That is the most critical question that we need to answer. Why are we doing all this? Everything is for them because if you do not find out about their needs and guide them, then it is meaningless. So, if they think they are not important, that is not true. We are all aware that they are an important force.
Our children will be led by them. If they are not guided, their voices are not heard and they are not empowered, I am worried how they will lead my children. But how do we engage them? We should not underestimate the youth because they know who are sincere. Time will prove who the voters want, so Umno and BN have a big challenge. Plus, there are different levels of youth -- rural, urban and even Felda youth.
Q: Young voters preferably want young candidates to contest in the next general election. What is Umno's stand on this?
A: You cannot underestimate the ability of young Malaysians to decide on their future and destiny. They want young candidates, but not just about anyone. They want the young leaders to represent them and articulate arguments, to work hard, to be honest and to correct whatever is not right. But if you look at the opposition, many new faces who won in 2008 have been assessed in the past 20 months. Whether they get re-voted in the next general election depends on their performance.
The younger generation will evaluate the performance of leaders not based on their age but on their capability to deliver promises. The younger generation plays an important role and I do not think they look at only the age of the candidates. Youngsters are better exposed and educated now, and the ability to inspire is what they look for in a candidate. This is what BN and Umno have to grapple with. So, that is why we amended the BN constitution so that the youth can participate more.
Q: You say that age does not really matter in an election candidate but the opposition is fielding young candidates to attract voters.
A: Yes, because they think young candidates can represent the voice of the youth. It has been 20 months now and don't tell me that all those young faces have delivered. It is the same for Umno in looking for leaders. Those characteristics of amnesia, arrogance and what not apply to all, no matter how old or young they are. Even the young ones can be corrupt. It is not an age factor but the shortcut -- again, it is the politics of perception. As for the new and young faces who present the young voters, they better know who they are presenting because the future of the party depends on them and the youth who vote for them expect these leaders to meet their expectations.
Q: Let's say you have to address a group of 25-year-olds who don't know who to listen to. What would you tell them?
A: Give us a chance. Give the prime minister (Datuk Seri Najib Razak), Umno, BN and me a chance to show we are here not merely because of politics but to ensure we are able to put them on par with other races out there -- something we can bequeath them so that they can bring the country to greater heights.
What I fear is that if they don't give us a chance, all these things will get squandered off and destroyed. We see that in many countries and that will be something I can't forgive myself; my father and grandfather won't forgive me. Whatever the people may think of the government, don't destroy the very fabric that we live in because at the end of the day, we have to build those institutions again. So, let's start working from within and make the changes.
Q: The rakyat essentially wants better governance.
A: They want us to fight corruption and to reduce crime. And education has always been close to their hearts, so it all depends on the rakyat. They don't want rhetoric. We can promise the moon but whether the people, who are cynical and soul-search, will believe it or not is something else.
So pencapaian diutamakan (Performance First) is performance in the real sense, we have to make sure that the people feel safe. Everything is based on unity and the 1Malaysia concept. Whatever incidents are being politicised, we still have to live together.
Q: Is the fatigue real?
A: The people are tired of hearing everything racial and political, so we talk about the amendment to the BN constitution. It is a long process and the PM decided to look at the bigger picture.
Then, we have the Government Transformation Programme to make sure that the economy stays strong because the majority of Malaysians want us to articulate and to deliver. If we look at the past 20 months, we've done quite a lot.
But, sometimes, when there are sensational issues, people do not really see what we have done anymore. Most people want to believe in 1Malaysia and what we are doing for the rakyat. We want to perform so we still have a lot of work to do.
Q: There is a perception that Umno is stronger now. To what extent is this true and what are the areas that still need to be rectified?
A: I might get into trouble with my Umno friends because I don't agree with that. There is so much more we can do. In a way, we have done the difficult parts -- the amendment to the Umno constitution is one of them. The president has gone on record to say that there are three important junctures in Umno -- the formation of Umno, the banning of Umno and the amendment of the constitution.
And it shows how courageous not only the leaders on stage are but also the delegates because they decided to do away with quotas which are meant to protect them. The delegates agreed to open the decision-making to 140,000 instead of 2,600 people. Not many people are willing to give up their powers in order to make the party more inclusive and democratic. And, if that's not a serious change, then what is?
Q: Is Umno a disjointed party benefiting from a strong leadership?
A: I think I'm benefiting a lot from the leaders, especially the PM. At the end of the day, it takes a courageous, wise and unselfish man to lead at a time like this. If you ask me whether I want to be PM now, I would say no. Who would want to lead the country when the global economy is bad, when the voices of youth are so loud and where everything is interlinked?
So, to be a leader, you need to have strong leadership and a clear direction. It is commendable of the PM to be around, we expected to be ousted on Sept 16 (laughs). Yet, people tend to forget about predictions.
I believe we have an agenda for 2011 and are determined to look into the Political Transformation Programme. I can announce it because I'm assisting in coordinating the PM and deputy prime minister's visits to two states every month. They will touch base with the people and articulate their directions. There is no point in talking about reforms when the economy is not moving and the government doesn't change. There was hikmah (a blessing) that we lost five states or else, we won't learn and change.


Read more: 'Give us a chance to learn, change' http://www.nst.com.my/nst/articles/6hism/Article#ixzz19L4DH6fj

KK air traffic control fire disrupts flights

KUALA LUMPUR: The Kota Kinabalu International Airport was closed for three hours yesterday because of a fire at its air traffic control centre. Transport Minister Datuk Seri Kong Cho Ha said the incident at 7.30am prevented the channelling of information to the air traffic control tower, affecting 19 flights to and from Kota Kinabalu, including those of Malaysia Airlines (MAS) which had to be re-timed.

Kong said the cause of the incident was now under investigation. However, initial investigations revealed that a small fire had broken out in the air traffic control centre, forcing its personnel to evacuate.

"After the personnel left their work stations, the centre was shut down in adherence to safety procedures, from 7.45am to 11.05am.
"The airport's Fire and Rescue team arrived at 7.50am and the fire was put out shortly," he said in a statement yesterday.

Kong added that power supply was partially restored at 10am, and by 11.05am, the centre was re- opened and resumed operating.

According to an initial report by the Department of Civil Aviation (DCA), thick smoke had emerged from the Telekom Malaysia equipment and battery room located on the first floor of the air traffic control centre.

The centre is located 1.5km from the air traffic control tower. It is run by DCA.

In Kota Kinabalu, hundreds of passengers, some travelling to international destinations, were stranded at the airport for up to five hours, but no injuries were reported.

Fire and Rescue Department director Khirudin Drahman said they received a call at 7.40am and five fire engines were despatched.

The thick smoke had affected the entire building's ventilation system.

In a separate statement, MAS director of operations Captain Azharuddin Osman said the airline had to delay some of its flights to and from Kota Kinabalu yesterday due to the temporary closure.

"We have re-scheduled our flights because of the temporary closure of the airport which was beyond our control."

MAS passengers who had booked their flights to and from Kota Kinabalu are advised to check the status of their flights via www.malaysiaairlines.com, or call its call centre at 1300-88-3000 (within Malaysia) or +603-7843 3000 (outside Malaysia) before leaving for the airport.

Passengers can also check their flight status on their handphones by visiting flymas.mobi.


Read more: KK air traffic control fire disrupts flights http://www.nst.com.my/nst/articles/15airport/Article#ixzz19L45olm7

8 hurt in double-decker crash

The double-decker express bus which was involved in the accident at Km363, Jalan Baru Raub-Bentong in Raub, Pahang, yesterday.

RAUB: An accident involving a double-decker express bus occurred yesterday at Km363, Jalan Baru Raub-Bentong here, just days after the horrific bus crash near Cameron Highlands. Fortunately, there were no fatalities, but eight people were injured when the driver of the express bus lost control of it, causing the vehicle to veer off into the other lane and to flip over on its right side.

In the 5.40am incident, the bus was travelling from Kota Baru to Klang, Selangor.

Raub police chief Superintendent Wan Mohd Shamsudin Wan Osman said the bus left Kota Baru at 12.30am with 42 passengers, including the driver and co-driver.
Shamsudin said the bus was about 500m from the Raub-Bentong road when the incident occurred.

Fortunately, there was no oncoming traffic.

"The bus was new. It had only been operating for about a month with much of the plastic cover still intact.

"We believe that the 46-year-old bus driver may have dozed off at the wheel.

"We have recorded his statement and taken his urine sample which tested negative for drugs."

Eight passengers were sent to Raub Hospital.

However, only two were warded while the rest were given outpatient treatment.

"A male passenger, in his 40s, has been warded at Raub Hospital for a broken rib and head injuries, while a female passenger, in her 30s, was transferred to Sultan Ahmad Shah Hospital in Temerloh for stomach injuries."

In Ipoh, the bus accident that occurred at Km15 of the Simpang Pulai-Kampung Raja road last Monday, has claimed another life, bringing the total number of deaths to 28.

Darunee Songserm, 59, who sustained critical head and chest injuries in the accident, succumbed to her injuries yesterday at the intensive care unit (ICU) of Raja Permaisuri Bainun Hospital.

Ipoh traffic chief Deputy Superintendent Mohd Rodzi Rejab said Darunee died at 2.30pm without regaining consciousness.

Two other victims, Somchai Polanan, 63, and Achara Wiwat, 36, were still warded at the ICU, while another two -- Chirarot Bunthichinwiwatn, 43, and Thanvarat Poolsaeng, 36, -- were being treated in the hospital's normal wards.


Read more: 8 hurt in double-decker crash http://www.nst.com.my/nst/articles/20double/Article#ixzz19L3riPy7

Private firms to take over 7 key arms development projects

By Na Jeong-ju

The military will transfer seven key projects aimed at developing arms and defense systems, including a new attack helicopter, to the private sector next year to focus on developing core defense technologies, the state-run arms procurement agency said Friday.

The plan is part of efforts to improve the quality of weapons and boost the country’s arms exports to $4 billion by 2020, from $250 million in 2008, to make it one of the world’s top seven exporters of arms and defense systems.

“We decided to transfer seven weapons development projects led by the Agency for Defense Development (ADD) to private firms,” the Defense Acquisition Program Administration (DAPA) said in a press release.

Initially, the ADD, the state-run arms developer, planned to hand over half of its 22 projects to the private sector. After a review, it decided to privatize only seven of the projects, the agency said.

The new weapons to be developed by private firms include an attack helicopter, a reconnaissance vehicle for chemical, biological and radiological warfare and a next-generation artillery hunting radar.

The attack helicopter project calls for providing some 210 aircraft to replace aging AH-1S and 500MD helicopters for the Army.

Under the reconnaissance project, the government plans to provide about 300 such vehicles to the military by around 2015.

The artillery hunting radar project is aimed at replacing the existing AN/TPQ-36/37 radars that came under fire for not working properly when North Korea shelled the South Korean border island of Yeonpyeong last month.

The privatization is in line with a proposal by the Presidential Council for Future and Vision that the military accelerate technology transfer between state-run and private arms developers, and encourage mergers and acquisitions in the private sector to nurture the defense industry into a new economic growth engine.

The council recommended in October that the government double the number of workers in the defense industry to 50,000 by 2020 and develop markets in Asia and Africa based on growing economic ties with the regions.

According to the Ministry of National Defense, the country’s defense industry output totaled $6.5 billion as of 2008 and employed 24,000 workers.

The blueprint came after Korea’s bid to sell T-50 trainer jets to Singapore and the United Arab Emirates failed. Korea has also been actively seeking overseas sales of ammunition, self-propelled guns and tanks.

DAPA said the government will overhaul research and development in the defense industry to enhance quality and raise price competitiveness.

leeth@koreatimes.co.kr

Use of wrongly wired money embezzlement

By Lee Hyo-sik

If someone mistakenly transfers money into your bank account, what would you do? If you spend it, you can be prosecuted on charges of embezzlement, according to the nation’s highest court Friday.

The Supreme Court found a 49-year old man, identified only by his surname Cho, who spent the money wrongly transferred into his bank account, guilty of embezzlement, overturning a lower courts’ ruling and sending the case back to the Seoul Central District Court.

In June 2008, an employee of a company mistakenly wired HK$ 3 million (390 million won) to Cho’s account. But the 49-year-old man did not return the money and spent it.

The company sued him and the lower courts sentenced Cho to one year imprisonment, saying the company’s ownership of the wired money became invalid after the transfer and charged him with “misappropriation of lost item.”

But the Supreme Court found him guilty of embezzlement.

“Even after the money was wired to Cho, it still belonged to the company and he had an obligation to return it and not withdraw the cash from his account at his disposal and spend it like he did. The act constitutes embezzlement,” it said.

Those convicted of embezzlement can be sentenced to up to five years imprisonment or a maximum fine of 15 million won, while those convicted of “misappropriation of lost items” are sentenced up to one year in prison or a maximum of a 3 million won fine.

leehs@koreatimes.co.kr

LG to invest more

By Kim Yoo-chul LG Group, whose businesses include electronics, telecommunications, chemicals and display panels, is set to make a record investment next year to gain market share and to nurture future projects. The rather upbeat plan comes after its key electronics and chemical businesses are expected to show increased profits helped by rising consumer demand for high-end finished products. In a statement, LG said it will invest 21 trillion won next year, an increase of 11.7 percent from this year’s estimated 18.8 trillion won. Of the total, 16.3 trillion won will be used for facilities, while the remaining 4.7 trillion won will go to R&D, according to a statement released Monday. ``Group Chairman Koo Bon-moo has asked chief executives of our key affiliates to seek market leadership with advanced products and invest in untouched but lucrative areas,’’ said Jeong Jung-wook, a senior LG Group spokesman. Jeong said next year’s R&D budget is in line with the chairman’s repeated calls to develop original technology to differentiate itself as a creator. The group’s electronics business will get 14.2 trillion won of the investment, while its chemical and telecommunications departments will receive 3.6 trillion won and 3.2 trillion won, respectively. Business expansion In electronics, the group said its display-making unit LG Display will build new lines to produce variously sized LCD screens. LG Electronics will expand its annual capacity for solar cells by constructing three additional manufacturing lines by the end of the first half of 2011. LG Innotek, a component-making unit, will also expand its facilities producing camera modules for smartphones and PCBs used in tablet PCs amid the rising popularity of value-added portable devices. LG Chem will expand its lithium-ion battery-producing lines and will continue its investment to build a glass substrate-producing plant for LCD screens with commercialization set for 2012. LG Hausys will receive money for the construction of its energy-intensive “Low E” glass-producing line,’ while LG Life Science is ready to get approval to build a medical plant. In the telcom sector, LG Uplus ― the nation’s smallest mobile carrier after SK Telecom and KT ― will expand its Wi-Fi zones and continue working towards the next-generation telecommunication backbones, to help it compete with its bigger rivals. ``LG’s key business affiliates are urgently needed to spur business momentum. The group will do the best it can to help our units beat their overseas rivals in key markets,’’ added Jeong. Next-generation technology Business expansion is not all about next year’s investment plan as the group intends to look into next-generation technologies. LG Electronics will hire more research staff for a better position markets for smartphones, tablet PCs, and smart and 3D televisions. ``More design-related staff will be hired, while our home appliances unit will focus on developing distinguishing products,’’ said LG Electronics spokesman Jerry Kim. LG Display will continue to work on AM OLEDs, 3D panels and electronic paper, while LG Innotek will push high-end LED light bulbs. In the chemical business, LG Chem plans to develop technology for electric vehicles, advanced glass substrates for LCDs. Also, LG Life Science will look to strengthen its bio-similar portfolio. ``LG Uplus’ top priorities are to develop smart television content based on cloud-computing services and platforms for mobile advertisements,’’ said an LG Uplus spokesman.

yckim@koreatimes.co.kr

re new TV channels curse in disguise?

Big newspapers vying for TV entry,but financial outlook dim By Kim Tong-hyung The future of the country’s media could industry depend on whether Viagra ever gets to be advertised on television, or at least that’s what the Korea Communication Commission (KCC) says. The broadcasting and telecommunication regulator has been spearheading an ambitious attempt by the Lee Myung-bak government to deregulate the Korean media marketplace, which began with axing the traditional cross-ownership restrictions that prevented the same media companies from owning television, radio and print assets. And the country will take a significant step toward unplugging big media by the end of the year when the KCC announces the winning bids for new cable television licenses, which has major newspapers here entangled in a cutthroat battle. It bears further watching, however, whether the debut of the new television stations will represent a rebirth. There are concerns that the lack of an advertisement market may deprive the new channels of a viable financial foundation, and this has policymakers desperate to squeeze more out of advertisers and permit more of them to access national airwaves. Most notably, the KCC is pushing to remove the shackles that prevented hospitals and makers of prescription drugs ― including sleeping pills, contraceptives and impotence drugs ― from advertising in print outlets and television. Another possible move is lifting the ban on in-program advertisements for national television, which happens to be one of the very few things viewers would say that the old military dictators got right. ``Expanding the advertisement market is crucial for the growth and development of the media industry. We will continue to work with related government agencies and ministries to ease the current regulations on products approved for advertisements on each medium, including bottled drinking water, medical institutions and prescription drugs,’’ said an official from KCC’s policy planning division. ``This doesn’t exactly mean that we will be lifting the advertisement restrictions on prescription drugs entirely as the new rules will be adjusted for each type of product. We believe there should be lesser restrictions on prescription drugs related to urgent health needs, such as asthma medicine and drugs for emergency post-coital contraception,’’ he said. At least, viewers have grown accustomed to the barrage of commercials that interrupt their favorite shows on cable television. But the idea of relying on Viagra and Cialis to inject new life into the media market, as they do in the bedroom, has already set off a firestorm of criticism. The Korean Medical Association (KMA), a lobby of physicians, and the Korean Pharmacist Association (KPA) are among a slew of medical industry groups denouncing the KCC’s plans, which they claim could put consumers at larger risk of drug overuse and abuse. ``This is a serious matter concerning the health of people, but the government is approaching the issue just with market logic and its intentions for deregulation,’’ said a KMA spokesman. ``Needless to say, a doctor wouldn’t prescribe the same medicine for every patient suffering the same kind of medical condition. There is a danger that the advertisement of prescription drugs could misinform many consumers and lead to unnecessary conflict between doctors and patients.’’ Media bloodbath Newspapers, which continue to reel from their decaying business model, hope that advancing into the broadcasting market will allow them an opportunity to establish a more reliable source of revenue. However, it appears that only the biggest papers have the financial muscle to take a shot at the television business. The Chosun Ilbo, JoongAng Ilbo and Dong-A Ilbo, the three largest dailies, have declared aspirations for ``comprehensive programming’’ channels, which will be allowed to produce and broadcast original news content as well as entertainment, sports and documentary programs. And they will be getting extra competition from business papers the Maeil Economic Daily and Korea Economic Daily and the cash-rich cable industry heavyweight, Taekwang Group. The KCC is also opening new spots for news-only cable channels to complement the existing ones of YTN and MBN. Five media companies ― Yonhap News, Herald Media, Money Today, Seoul Newspaper and CBS ― are in play for the news-only channels. It is expected that the new channels will have their debut sometime during the latter half of next year. Critics raise concerns that the compromised diversity in the ownership of news organizations could hurt discourse, especially at a time when the line between profit and reporting is becoming blurry in a toughening environment for the dead-tree media. The government contends that deregulation is crucial for the growth of the media industry and the emergence of globally-competitive players that could hold their own against Disney and Fox. Well, viewers apparently won’t protest too much about getting a larger bundle of channels for their monthly television expenses. But, in spite of all the speechifying about a reshaped and bulked-up media industry, it’s telling that the government is failing to offer a convincing answer to the most important question of all ― will the new broadcasting outlets ever become sustainable businesses? And clearly, the maxed-out advertisement budgets of companies doesn’t inspire much confidence. KCC’s original plan was to entirely scrap the advertisement business of public broadcaster KBS, the country’s biggest television station, and have advertisers milk the new channels instead. In return, KBS was to benefit from a significant hike in the country’s compulsory television license fee, paid by every Korean household with a television, which the KCC had planned to raise from the current 2,500 won (about $2.16) a month to around 6,500 won a month. Naturally, the plan touched off a massive public backlash, and a beleaguered KCC is now reviewing KBS’ plans to raise the license fee to just 3,500 won, to cover the costs for the impending digital television switchover, while keeping its advertisement business intact. So the KCC is forced to look for the money elsewhere, and hence, all the talk about prescription drug advertisements and in-program commercials. It’s debatable whether the additional influx of advertisers will be enough to carry a new wave of television channels, when there are already around 190 existing broadcasters contesting in an advertisement market worth about 3 trillion won annually. ``The broadcasting market is already a sea of red. Imagine if three or more comprehensive channels enter the arena to add competition. The result will be a bloodbath,’’ said Kim Min-ki, a professor of mass communications at Soongsil University. ``Presuming that each comprehensive channel, which are to compete with the big national terrestrial channels, take around 400 to 500 billion won in advertisement revenue, this would kill off the smaller channels and hurt the diversity in discourse. The next three to five years will be a chaotic time in the industry.’’ Gong Tae-hyeong, an analyst at Samsung Securities, said that the value of the comprehensive cable channels as advertisement platforms will be lower than that of the existing terrestrial channels. ``The new channels have yet to prove their ability to consistently provide quality content, and if multiple broadcasters are licensed, it would be hard for them to differentiate from each other in the competition for viewership,’’ he said.

thkim@koreatimes.co.kr

Mini space shuttle saves money and time

A quarter size of an existing space shuttle called as ‘mini space shuttle’ will provide a safe and affordable transportation service for astronauts, Orbital Science Corporation (OSC) said on Dec 14. The mini space shuttle would seat four astronauts. A feature of the vehicle is that it does not include an engine. The vehicle will launch atop an expandable launch vehicle like Atlas V and return to Earth with a conventional runway landing. OSC said this would supply a cost-effective solution for astronauts of the National Aeronautics and Space Administration (NASA) as well as enabling future commercial applicants. “We have submitted to NASA a well-considered commercial solution for astronaut transportation to and from the International Space Station safe and timely,” said Frank Culbertson, a former NASA astronaut and Orbital’s senior vice president for Human Spaceflight Systems. 미니 우주 왕복선 돈,시간 절약 ‘미니 우주 왕복선’ 이라고 불리는 기존의 4분의 1 크기의 우주 왕복선은 우주비행사들에게 편안하고 알맞은 가격의 서비스를 제공해줄 것이라고, 12월 14일 오비탈 사이언스사가 밝혔다. 이 미니 우주선은 4명이 탈 수 있다. 가장 큰 특징은 엔진 이 없다는 것이다. 이 왕복선은 아틀라스 V 로켓 같이 소모품 발사 시스템이 활성화 된 로켓에 실려 발사 된 뒤, 기존의 활주로를 이용해 지구로 귀환한다. 오비탈 사이언스 사는 이 왕복선은 상업을 활성화 시키고 미 항공 우주국 (나사)의 비행사들에게 가격의 부담을 덜어 준다고 밝혔다. 전 나사 우주비행사, 현 오비탈 프랑크 부사장은 “우리는 나사에 상업적으로 잘 고려하고, 국제 우주 정거장으로 안전하고 효율적인 시간으로 보낼 수 있는 점을 제안했다,”고 말했다.

Indian telecom rocket explodes seconds after take-off

This is the dramatic moment when India's ambitious space program suffered one of its biggest setback when an advanced communication satellite exploded within a minute after its launch. A stunned Indian Space Research Organization (ISRO) did not give the reason for the blast in the sky but an officer told IANS that there was a fault in the second stage of the launch. 'The rocket's first stage seemed to have performed normally. The problem seems to have cropped up in the second stage as the rocket didn't get sufficient thrust,' he said. But another official insisted that even the first stage was a failure. The multi-million pound 310 kg GSAT-5P satellite, was to serve the needs of the telecommunication sector and the weather department. It was at 4.04 p.m. that ISRO launched the rocket, with the satellite, in clear sky from the Sriharikota space centre, about 80 km from Chennai. In a chilling reminder of the Challenger Space Shuttle Crash of 1986, the Indian rocket rose into the sky with a deep roar, emitting thick orange flame at its tail. And suddenly it exploded -- and disintegrated. 인도 통신위성 발사 직후 로켓 폭발 장면 인도 통신위성을 실은 로켓이 25일 발사 직후 공중 폭발했다. 26일 인공위성 발사 장면을 중계한 인도 현지 TV에 따르면 인공위성 탑재 로켓은 스리하히코타 우주발사 센터에서 발사된 뒤 첫 단계에서 폭발했다. 이로써, 인도 항국 우주 당국은 올들어 두 번째로 인공위성 로켓 발사에 실패했다.