Daily Update: February 16

South Korea

Economy – I put economy first, breaking with the typical tradition of this post, because a story is currently breaking.  A South Korea court has ruled Hanjin Shipping Company, a leader in the South Korean shipping industry for decades, officially bankrupt (MarketWatch).  In August of 2016, Hanjin went into receivership and applied for court protection.  However, it was unable to get money from its creditors.  Therefore, the company will be liquidated and all assets sold off (Yonhap).  As a result of the news, many Hanjin ships were denied entry at ports for fear that payments would not be made (BBC).  The fall of Hanjin also means that most of the companies seamen are suddenly out of a job.  Some analysts have commented that the failure of Hanjin may work to bring down overcapacity in the shipping industry down to a sustainable level, arguing that a crash of another major Korean shipping company was unlikely (BBC).

91203982_2fee3fd1-012d-4f3e-80f3-aba39e4933dc(Image: Hanjin employees lobbying to save their company.  Source: BBC)

mw-ev014_hanjin_20160830232802_zh(Image: Cargo sitting on a Hanjin ship in a German port.  Source: MarketWatch)

Politics – Choi-gate has continued to claim victims throughout every aspect of life in South Korea.  This week, two different arrest warrants were issued.  On Wednesday, Special Prosecutors formally arrested Choi Kyung-hee, the ex-head of Ehwa University.  She has been charged with giving admissions and grading favors to Choi Soon-sil’s daughter (Korea Times). Last month, Choi Kyung-hee avoided arrest when her name was brought before the court.  De-facto head of Samsung, Lee Jae-yong, also had a warrant issued for his arrest when his name came up a second time in court.  Lee was arrested on the same day, charged with paying over 40 billion won to get the National Pension Service to back a controversial merger (Yonhap).  These arrests come as Park is still waiting for the Constitutional Court to make their decision on her impeachment.

Culture – South Korea is home to some of the worst air in the world.  According to the “State of Global Air 2017” report, South Korea’s population -weighted national average concentration of PM2.5–ultra-fine particles or matter of a diameter of at least 2.5 microns–was 29 micrograms in 2015, well above the OECD average of 15 micrograms (Korea Herald).  Over the past 25 years, South Korea’s PM2.5 problem has gotten worse while the OECD average has gotten better.  In 1990, the OECD average was 17 micrograms while Korea’s average was 26 micrograms (Korea Herald).  Many point to China as the culprit, but the South Korean government highlights emissions from diesel engines.  To combat this, the Environmental Ministry rolled out anti-yellow dust measures in June.  This plan did not garner the public’s interest (Korea Herald).

North Korea

North Koreans have not heard of the death of Kim Jong-nam, Kim Jung-un’s half brother.  State media has not reacted to the slew of media reports covering the news.  A source cited in the Korea Herald commented that he thought Kim Jung-un was the oldest son of Kim Jung-il (Korea Herald).  As Pyongyang looks to strengthen its hold on power, the government may suppress news of Kim Jung-nam’s death due to his close ties to China.  Despite the lack of official coverage in North Korea, some reports of Kim Jung-nam’s death have gone viral in the border region (Korea Herald).

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