Headline, May 24, 2021

‘Korea seeks a solid foundation for steady advancement of the ROK-U.S. alliance’

The followings are the opening remarks by President Moon Jae-in at Joint Press Conference following the ROK-U.S. Summit in the U.S. on May 22. _ED. President Biden and Vice President Harris, I am deeply grateful to you for your special hospitality. The Korean and U.S. leaders and their delegations having face-to-face discussions today will bring hope for overcoming COVID-19 and become a meaningful gift to both Koreans and Americans on the 139th anniversary of diplomatic relations. President Moon Jae-in (left) and U.S. President Joe Biden hold a joint press conference in the U.S. President Biden and I had candid conversations like old friends as we spent several hours together for the ceremony to award the Medal of Honor to a Korean War veteran as well as at the one-on-one and expanded summits. We confirmed that our interests and commitments are the same on many issues, including the enhancement of democracy, inclusive growth, the broadening of the middle class, and climate change responses. In particular, we reaffirmed the robustness of the ROK-U.S. alliance and our shared vision of making our alliance even stronger.

Amb. Sripriya Ranganathan of India presents Lord Buddha Statue to Tongdosa Temple

The following article was contributed by the Embassy of India in Seoul to The Korea Post for publication which is also carried by the Korean-language Internet edition (www.koreapost.co.kr) as well as on the English Internet (www.koreapost.com). –Ed  The Embassy of India in Seoul, in collaboration with the authorities of the Tongdosa Buddhist Temple in Yangsan-si, Gyeongsanganm-do, organized a series of events in connection with the gift of a statue of Lord Buddha by the Indian Council for Cultural Relations (ICCR) to the people of the Republic of Korea. Photo shows Ambassador Ranganathan of India (sixth from left) with Ven. Hyun Moon (Head Monk of Tongdosa Temple) in white robes on her right. The meeting was also attended by Secretary to the President for New Southern and Northern Policy Yeo Han-gu, Reps. Park Seong-jun, Jeong Pil-mo, and Choi Jong-youn—together with other noted dignitaries from the  culture circles and academia.  This included a handing-over ceremony at the Embassy of India in Seoul on April 30, 2021, an enshrining ceremony of the statue in Tongdosa on May 16, 2021 and a ceremony to dedicate the statue to the Korean people, coinciding with the Vesak celebrations on May 19, 2021.

SK Innovation signs MOU with Ford to form EV battery joint venture in U.S.

SK Innovation announced on May 20 (U.S. local time) that SK Innovation and Ford have signed a memorandum of understanding (MOU) to create a joint venture – to be called BlueOvalSK – to produce approximately 60 GWh annually in traction battery cells and array modules, starting mid-decade, with potential to expand. View of SK Innovation's battery plant in Georgia, USA This MOU is just the start; it’s a key part of our plan to vertically integrate key capabilities that will differentiate Ford far into the future,” said Jim Farley, Ford president and CEO. “We will not cede our future to anyone else.” “We are delighted to be entering into collaboration with Ford, America’s leading and iconic automaker. Ford is one of the most active players in vehicle electrification today. We are proud to be opening this new chapter in their long history,” said Kim Jun, SK Innovation CEO & President.

President Moon Returns from US Trip

President Moon Jae-in returned home Sunday night following a four-day trip to the United States. Moon and U.S. President Joe Biden held their first in-person meeting on Friday at the White House, which lasted for almost three hours. The two leaders agreed to resolve Korean Peninsula issues through diplomacy and dialogue, establish a global vaccine partnership and bolster cooperation in the supply chain for key industrial sectors including semiconductors and batteries. Moon also attended a meeting of executives from the auto, semiconductor, battery and vaccine industries from South Korea and the U.S.  On Saturday, Samsung Biologics, a South Korean biopharmaceutical firm, signed an agreement to manufacture the U.S. drug maker Moderna's COVID-19 vaccine at its local factory. The deal was signed during a South Korea-U.S. vaccine partnership event in Washington, with President Moon in attendance.

Blinken Says US Prepared to Engage with N. Korea Diplomatically

U.S. Secretary of State Antony Blinken has reaffirmed diplomacy and dialogue to achieve the denuclearization of the Korean Peninsula, saying that the ball is now in North Korea's court. Blinken appeared in an interview on ABC’s This Week on Sunday, echoing the joint statement issued by U.S. President Joe Biden and South Korean President Moon Jae-in after their first summit on Friday. The secretary said that the best chance to achieve the objective of total denuclearization of the region is to "engage diplomatically" with North Korea. He continued that the U.S. is waiting to see if Pyongyang actually wants to engage and the ball is in its court, adding the U.S. made it clear it is prepared to pursue diplomacy. When asked if the U.S. should recognize North Korea as a nuclear power, Blinken said that his country does not and should not.

Memorial Marks 12th Anniversary of President Roh Moo-hyun's Death

A memorial service was held on Sunday to mark the 12th anniversary of the death of former President Roh Moo-hyun. The ceremony began at 11 a.m. in Roh's hometown, Bongha Village in Gimhae, South Gyeongsang Province. The event was much smaller this year due to the COVID-19 pandemic and in abidance with quarantine guidelines. Only about 70 guests attended, including the former president's wife and other dignitaries. Among the attendees were former Prime Ministers Lee Nak-yun and Chung Sye-kyun, ruling Democratic Party (DP) Chair Song Young-gil and DP Floor Leader Yun Ho-jung.  Kim Gi-hyeon, acting chief and floor leader of the main opposition People Power Party (PPP) also attended. The service started out with a pledge of allegiance, the laying of flowers and incense burning followed by a speech by Prime Minister Kim Boo-kyum.

Unification minister says Moon-Biden summit creates 'sufficient' conditions for dialogue with N. Korea

Last week's summit between President Moon Jae-in and U.S. President Joe Biden created "sufficient" conditions needed to resume the long-stalled dialogue with North Korea, Unification Minister Lee In-young said Monday. On Friday (U.S. time), Moon and Biden held their first face-to-face summit in Washington and agreed to engage diplomatically with North Korea and take "pragmatic" steps to reduce tensions, while reaffirming that dialogue will be pushed based on previous agreements, including the 2018 Singapore deal between the North and the U.S. Biden also announced his designation of Sung Kim, former U.S. ambassador to South Korea, as its special envoy on North Korea, a move seen as signaling that Washington is ready for dialogue with the North.

Defense ministry to hold meeting with residents near THAAD base

Defense ministry officials were to hold a meeting with residents around a U.S. THAAD missile defense base Monday in an effort to address their concerns, the ministry said, as protests against the base have shown no signs of letting up. Residents in the central county of Seongju have long opposed the Terminal High Altitude Area Defense (THAAD) base in their town, resulting in clashes with police every time the government brings construction equipment and other items to the base. Monday's meeting was to take place at the county government office attended by Vice Defense Minister Park Jae-min, County Gov. Lee Byoung-hwan and representatives from multiple regional organizations, according to the ministry. The ministry said the talks will focus on addressing environmental and other concerns about the base.

New cases under 600 for 2nd day on fewer tests, distancing rules again extended

South Korea's daily new coronavirus cases stayed below 600 for the second straight day Monday on fewer tests over the weekend, with a rebound in the reproduction rate, coupled with sporadic cluster infections, straining the country's antivirus fight.

The country reported 538 more COVID-19 cases, including 513 local infections, raising the total caseload to 136,467, the Korea Disease Control and Prevention Agency (KDCA) said. The daily caseload stood at 585 on Sunday and 666 on Saturday. There were three additional virus deaths, raising the total to 1,934. The fatality rate came to 1.42 percent. 

Starting Monday, South Korea extended its tight social distancing scheme by three more weeks through June 13. Currently, the greater Seoul area, home to more than half of the country's 52 million people, is under Level 2 social distancing, the third highest in the five-tier scheme, while the rest of the country is mostly subject to Level 1.5 distancing.

Korea partners with US on COVID-19 vaccines

South Korea, through a newfound partnership with the US, is expected to assume a bigger presence in the global supply chain of COVID-19 vaccines, the Ministry of Health and Welfare said Sunday. No concrete plans have been revealed on how this will stabilize the supply of vaccines in Korea. The announcement comes after President Moon Jae-in and the US President Joe Biden agreed on a “comprehensive partnership” on COVID-19 vaccines Friday. Moon went into the summit under pressure to bring US-made vaccines home faster amid a slow rollout and a resurgence in infections. “President Moon Jae-in’s visit to the White House has further strengthened the Korea-US alliance on COVID-19 vaccines,” Minister of Health and Welfare Kwon Deok-cheol was quoted as saying in Washington. The vaccine alliance aimed to “assist the world in defeating COVID-19 through an expedited production and supply of vaccines.”

Korea, US reinforce ties on chips, EV batteries to reset supply chains

South Korea and the United States have agreed to elevate the level of cooperation in major industries, including semiconductors and lithium-ion batteries, to reestablish global supply chains amid growing challenges from China and looming shortages of key components under the COVID-19 pandemic. The strengthened economic partnership is viewed as a major feat by President Moon Jae-in from his visit to the US for summit talks last week, paving a way to stabilize rocky global supply chains for major industries that support the two economies by letting their companies form close ties with each other. During a roundtable meeting of Korean and US businesses on Friday, US time, held before a summit between the two state leaders in Washington, four major Korean conglomerates, including Samsung Electronics and SK hynix, announced a package of investments amounting to 44 trillion won ($39.4 billion) in total.

Blinken reiterates commitment to NK diplomacy to achieve denuclearization

WASHINGTON -- US Secretary of State Antony Blinken on Sunday reiterated Washington's commitment to diplomacy with North Korea to achieve the denuclearization of the Korean Peninsula, saying, "The ball's in their court." Blinken made the remarks after US President Joe Biden stressed the willingness to engage diplomatically with Pyongyang to take pragmatic steps toward the denuclearization goal, after his first in-person summit with President Moon Jae-in in Washington on Friday. "What President Biden determined was the best chance we have to achieve the objective of the total denuclearization of the Korean Peninsula is to engage diplomatically with North Korea on a deliberate, calibrated approach where we seek to make progress toward that goal," Blinken said in an interview with ABC.

US' vaccine offering raises hopes of joint military drills resuming in earnest

U.S. President Joe Biden's promise to provide COVID-19 vaccines to fully inoculate all 550,000 South Korean troops is raising hopes that full-fledged combined military exercises between Washington and Seoul could resume in the latter half of this year at the earliest. ㅡPresident Biden said during a joint press conference with South Korean President Moon Jae-in, Friday (local time), "We'll provide full vaccinations for all 550,000 of those Korean forces engaging with American forces on a regular basis, both for their sake, as well as the sake of the American forces." According to the Ministry of National Defense here, the number of South Korean troops stood at about 555,000 as of the end of last year. The United States and South Korea usually carry out major combined exercises twice a year, in spring and summer, along with smaller-scale drills throughout the year.

No. of refugee screening hits record high in first quarter

The number of refugee screenings conducted by the immigration authorities in the first quarter of the year has surged to a record high, according to government data, Sunday.The authorities reviewed 3,638 cases filed by asylum seekers from January to March ― up sharply from 6,254 cases that were screened during all of 2020 ― according to data released by the Korea Immigration Service under the Ministry of Justice.

This is a fourfold increase from 813 screenings conducted in the same period in 2020.  The data indicate that the authorities reviewed around 1,200 asylum seekers a month, marking the first time that the number of applicants screened monthly surpassed 1,000.

In addition, as of March, a total 16,531 asylum seekers were on the waiting list for review. Among them, 4,044 asylum seekers had reapplied, requesting the government to review their case for a second time after being rejected. The growing number of asylum seekers has exceeded the screening capacity of the government, considering that there are just 93 civil servants screening refugee applications as of April, according to the justice ministry.

Mask-free summit over Maryland crab cake

The summit between President Moon Jae-in and President Joe Biden made scenes notably different from the previous meeting Biden had with a foreign leader as the U.S. exhibited built up confidence on the containment of COVID-19 there. Mask-free meeting ,Moon was the second foreign leader to have a face-to-face meeting with Biden since the U.S. leader took office in January, following one with Japanese Prime Minister Yoshihide Suga, April 16. With only one month between the summits, the visuals looked quite different. Moon and Biden had one-on-one, small group and expanded meetings, which lasted for two hours and 51 minutes, running over the scheduled time by an hour. Moon stayed in the White House for around five hours and 40 minutes.

Harmony Returns as Moon Meets Biden

President Moon Jae-in and his U.S. counterpart Joe Biden gave all the appearance of harmony last weekend in their first meeting since Biden took office, with each side throwing generous sops to the other to strengthen the historic alliance between their countries. They pledged technological and economic cooperation in semiconductors, 5G telecom networks and coronavirus vaccines, and Biden even agreed to send a special envoy to North Korea so Moon can save face in his desperate attempts to engage the North. South Korea did not commit itself to joining the Quadrilateral Security Dialogue or Quad but signaled some support for the informal anti-China alliance headed by Washington with Japan, Australia and India. “With the technological landscape rapidly changing, we agree to strengthen our partnership on critical and emerging technologies to promote our shared security and prosperity,” the two leaders said in a statement after talks Friday.

Smaller Businesses Demand Brakes on Minimum Wage

Seven out of 10 small and medium-sized companies think the minimum wage should be frozen or reduced, a poll suggests.

In the poll of 168 SMEs in about a dozen industries by the Korea Industry Alliance Forum, 74.5 percent said the minimum wage should be frozen (48.4 percent) or even lowered (26.1 percent). Some 73.7 percent said the recent steep hike in the minimum wage has a negative impact on their business. One-third said they reduced benefits due to the minimum wage hike, and 32.2 percent said they cut new hiring. Another third said they minimized paid overtime, while 6.7 percent said they moved operations overseas.

U.S. Companies Call for Pardon for Samsung Chief

The American Chamber of Commerce in Korea sent a letter to Cheong Wa Dae last week asking for the release of Samsung chief Lee Jae-yong from prison. The call came ahead of President Moon Jae-in's first meeting with his U.S. counterpart Joe Biden in Washington on Friday. AmCham warned Korea's "status as a strategic partner to the U.S. was at risk if Samsung, the world's biggest chipmaker, was not more fully engaged in supporting Biden's efforts" to boost semiconductor supplies, according to the Financial Times. AmCham Chairman James Kim told the daily, "We believe that a pardon of the most important executive of Samsung is in the best economic interest of both the U.S. and Korea." AmCham consists of about 800 American companies doing business in Korea.

Trump’s “maximum pressure,” Biden’s “maximum flexibility”

A senior official in the Biden administration said Wednesday that the US won’t be releasing the details of its North Korea policy to maintain “maximum flexibility.”

That reticence appears aimed at leaving wide latitude for adjusting policy both on the level of strategy and details under the previously elaborated principle of a pragmatic diplomatic approach aimed at the complete denuclearization of the Korean Peninsula.

“It is unlikely that we will detail our diplomatic strategy in public,” the official said when asked during a teleconference with reporters whether the US would inform North Korea of specific measures after the summit between South Korean President Moon Jae-in and US President Joe Biden on Friday. “What we will attempt to do [. . .] with our allies and subsequently with key interest groups and folks up on Capitol Hill is underscore our overall approach [. . .] and a general sense of what we’d like to accomplish.”

Moon makes surprise visit to FDR Memorial during US visit

President Moon Jae-in’s three-day schedule after arriving in Washington on Thursday is packed with events to highlight the importance of the South Korea-US alliance across different venues. The first day began with a morning visit to Arlington National Cemetery. “Once again, I pay tribute to the American soldiers who fought to defend freedom and democracy in the Republic of Korea during the Korean War,” President Moon said at the cemetery. “The South Korea-US alliance was forged in blood and has grown stronger over many years, and President Joe Biden and I will make the alliance even more powerful and comprehensive.” After paying his respects at the cemetery, Moon made a surprise visit to the Franklin Delano Roosevelt Memorial. This was a “Biden special” part of the schedule that was tacked on at the last minute and not made public before Moon’s departure.

S. Korea extends social distancing measures for 3 weeks

The South Korean government has decided to extend current social distancing measures for another three weeks on Monday, including the ban on gatherings of five or more people. South Korean Prime Minister made the announcement Friday while presiding over a meeting of the Central Disaster and Safety Countermeasures Headquarters at the Central Government Complex in Seoul. “The average daily caseload recently has remained in the 500 level as infection continues in everyday lives,” Kim said. “If the number of confirmed COVID-19 cases increases or the situation worsens, [the government] will immediately consider implanting additional safety measures.”

He added, “Thanks to the early rollout of COVID-19 vaccine at nursing homes and facilities, the number of patients in severe or critical condition has decreased somewhat, and there is no shortage of hospital beds right now.” The government also plans to announce preferential policies for those who are fully vaccinated, Kim said, urging the South Korean public to get vaccinated.

Pres. Moon praises his summit with Biden as the best one ever

South Korean President Moon Jae-in sees the South Korea-U.S. summit as one of the most successful summits ever. Moon mentioned on social media on Saturday (local time) after his meetup with U.S. President Joe Biden, "The meeting produced the best ever outcomes. It was a better-than-expected achievement,” adding that it was the best visit with the perfect discussion part of it. The South Korean president gave a meaning to a partnership with Washington for vaccines and direct support of vaccines for South Korean military troops, saying that he was told that despite public opposition within the United States, the U.S. government put a high value on the alliance with South Korea.

Seoul, Washington to make inroads into overseas nuclear power market

South Korea and the United States have agreed to join hands and enter the nuclear power industry in other regions. As the former has an outstanding level of construction competence while the latter is equipped with source technological capabilities such as nuclear reactor design, the export of nuclear power plants will gain momentum in both nations. With it being welcome news to the South Korean nuclear power industry, there are concerns that South Korean President Moon Jae-in’s zero-nuclear policy and the nuclear export enterprise may not move forward in sync. President Moon and his U.S. counterpart Joe Biden issued a joint statement on Friday (local time) that they reached agreement to strengthen bilateral cooperation in overseas nuclear power markets by joining nuclear reactor projects, said the South Korean Ministry of Trade, industry and Energy on Sunday. Based on the two heads of state’s pledge, business-level discussions on cooperation will go into detail.

Gyeonggi Gov. Lee earns power and support day after daywon

Gyeonggi Gov. Lee Jae-myung and former ruling Democratic Party leader Lee Hae-chan made a rare joint appearance at the 2021 DMZ Forum held at KINTEX, Goyang City, Gyeonggi Province, on Friday. It was the first time for the former DP chairman to join an official event along with Gov. Lee since he endorsed the governor behind the scenes. Public attention was attracted by a lineup of not only pro-Roh Moo-hyun political leaders including former Prime Minister Han Myeong-sook but also former and incumbent diplomatic and national security figures who support former President Roh and incumbent President Moon Jae-in. Gyeonggi Province has since 2019 been home to the DMZ Forum on a yearly basis. This year’s event was jointly held for the first time by the provincial government and the Northeast Asia Peace Economic Association where former DP Chairman Lee serves as chief director.

Now that the Government Has Secured the Vaccines, People Are Reluctant to Get Vaccinated

The COVID-19 vaccination rate refuses to climb, perhaps due to the fact that concerns about the vaccine’s safety have not been clearly resolved. Just when the government managed to solve the problem of vaccine shortage, authorities have come across a new problem, the low vaccination rate. In a meeting of the Central Disease Control Headquarters on May 20, Kwon Deok-cheol (minister of health and welfare), first assistant director of the Central Disaster and Safety Countermeasure Headquarters said, “We are extremely concerned that a return to our daily lives with inoculation may be delayed by the low level of participation.” The government said that all vaccination schedules in May for people aged 65 and older were fully booked and asked people to quickly make appointments, but it hasn’t been able to find an effective way to increase participation.

The rate at which people are reserving their vaccine shots is falling among those aged 60-74. As of May 17, 42.9% of the people had made appointments to receive the vaccine.

Companies Listed on KOSPI Saw Sales Rose 9.08% and Net Profits 361% in Q1

Companies listed on KOSPI recorded a drastic increase in profits in the first quarter of this year due the recovering economy and the base effect brought on by COVID-19. Compared with a year ago, operating profits increased 2.3-fold and net profits jumped 4.6-fold. Experts believe improving exports and consumption will allow the KOSPI companies to perform better even after the second quarter. According to the Q1 Performance of December-closing KOSPI Companies (based on consolidated financial statements) released by the Korea Exchange and the Korea Listed Companies Association on May 20, the Q1 sales of 593 listed companies (excluding banks) exceeded 538 trillion won, a 9.08% increase from the same period last year. Operating profits increased 131.73% YOY to nearly 44.4 trillion won and net profits recorded over 49.1 trillion won, a 361.04% YOY increase. The operating profit to sales ratio was 8.25% while the net profit to sales ratio was 9.12%, a 4.37% and 6.96% YOY increase respectively.

US, Korea to expand security alliance to health, green and hi-tech business

South Korea and the United States on Friday vowed partnership in drug, chip and battery making as well as green, space and 6G initiatives as they pushed traditional security alliance to practical business for new growth, with the U.S. offering immediate supply of vaccines for entire Korean soldiers while Korean enterprises committing $39.4 billion in U.S. investment. The U.S. will provide Covid-19 vaccines for 550,000 South Korean servicemen and work on vaccine partnership to expand global supply by combining technology and infrastructure of the two countries and extend bilateral alliance “to the field of health in a meaningful measure.

SK Innovation, Ford to form EV battery joint venture in U.S.

SK Innovation Co. has agreed with Ford Motor Co. to set up a 6 trillion won ($5.3 billion) battery joint venture in the United States, the biggest-ever EV JV deal that is expected to help the South Korean battery maker build strong footing in the promising U.S. EV market aided by the Biden government’s strong green push, and the U.S. No. 2 auto maker accelerate its EV push. Under the deal signed on Thursday (local time) between SK Innovation and Ford Motor, the joint battery venture called BlueOvalSK will build a factory that is capable of mass producing 60 gigawatt hours of battery cells and modules annually starting mid-2020s.

Korea’s May 1-20 exports soar 53.3% on year on brisk chip, auto demand

South Korea’s exports in the first 20 days of May surged by a staggering 53.3 percent from the same period a year ago driven by strong demand for its mainstay items such as chips and automobiles on the faster-than-expected global economic recovery. According to the data released by Korea Customs Service on Friday, the country’s outbound shipments totaled $31.12 billion from May 1 to 20, up 53.3 percent year over year. Daily exports jumped 59.1 percent based on 13 working days, 0.5 day shorter from a year earlier. The nation’s exports have been on a strong recovery note as the figure has been extending its gain since November last year.

Budapest Times http://budapesttimes.hu