The Marmot's Hole

Korea... in Blog Format

The Taxman Cometh – What Would Jesus Do?

The National Assembly’s Strategy and Finance Committee held a  meeting with representatives of various religious faiths (Catholic, Evangelical Protestant and Buddhist) for the purpose of discussing how clergy should be taxed.  Their plan is to levy an income tax of 22 percent on 20 percent of the incomes earned by ordained clergy.  (cite)

Well, out of the three main faiths represented, guess which one threw a fit over the money and threatened fire and brimstone?

Here is a hint: which faith is well known for running a growth-for-profit scheme where the pastor has sole proprietorship of the church and runs some of the world’s most intensive missionary programs, not to mention urinating and defacing Buddhist temples and statues in Korea?

Continue reading

WSJ: What’s the average off the street Seoulite think of Japan?

Often not discussed in many Korean blogs is what the average person off the street in Seoul thinks of such and such.  The WSJ’s Korea Realtime looks to remedy that.  The upshot?  Dokdo is ours, Japan needs to repent, but PGH needs to meet with (and talk to) Abe and an amicable relationship with Japan is important.

(Image from WSJ: Korea Realtime)

Apple cannot cure itself of its Samsung addiction

If one is to believe “a source familiar with the deal” from Korea Times, then yes.  It was announced recently that Apple and Samsung had signed a huge chip manufacturing deal for Samsung to fabricate 80% of all of Apple’s application processors (“AP” chips) by 2016.

“Apple has designated Samsung as the primary supplier of its next A-series chips powering iOS devices from 2016 as the alliance with GlobalFoundries (GF) enabled Samsung to cut off capacity risk,” a source familiar with the deal said.

It was speculated earlier this year that Apple would primarily drop Samusung as an AP chip supplier:

TSMC was expected to handle up to 70 percent of the manufacturing load, while Samsung would pick up the rest. Production problems may, however, have resulted in Samsung being removed completely from the A8 supply chain.

Samsung “being removed completely from the [Apple] supply chain” has been a fervent wish by many Apple fans since at least 2010, when they started to compete directly in smart phones.  Invariability, every year since 2010 there is always some rumor that Apple is going to drop Samsung  as a major AP chip supplier and every time that rumor ends up being false.

Part of the issue is that it is very hard to make a lot of complex chips quickly, efficiently and with very little defect rate.  Initial capital expenditures and investments are prohibitive as well.  For those type of manufacturers you have pretty much only four games in town: 1) Samsung 2) Taiwan Semiconductor (“TSMC”) 3) Globalfoundries and 4) Intel.  Of the aforementioned, Intel has very little experience in mass fabricating smart phone AP chips.  Samsung and Globalfoundries appeared to have foreseen the threat of TSMC and had thus gotten into a strategic partnership in April of this year.  This relationship seems to have paid big dividends for both companies.

MarketInsider also has interesting information on why Samsung is in a superior position:

TSMC will ramp up production of chips using 16-nnometer FinFET technology. Samsung’s technology is better in terms of efficiency and energy consumption…. Bernstein Research in a note to clients. IM Investment, a local brokerage, expects Samsung to win more orders to fabricate customized chips from Qualcomm, Nvidia and Sony, helping it generate more revenue to make up for its struggling smartphone business.

On the flip side, this would appear as if Apple is throwing Samsung a lifeline while its profitability is declining.  AP chip fabrication is difficult, but higher margin and as such is known to be among the most profitable of chip manufacturing jobs.

Open Thread: Nov. 24

Sorry for getting this up late. Busy weekend. Did come away with this shot from Sunday morning, though.

The Korean government’s $500 billion tax-free reunification plan

No, weed is not yet legal in Korea and yes, you heard correctly.  Tax-free.

ED-AL440A_ebers_G_20100429180037

(Image from Abihollow via iamkoream.com)

According to Korea’s top financial regulator, Shin Je-yoon, Chairman of the Financial Services Commission (“FSC”), it will take 20 years and $500 billion USD to satisfactorily integrate North Korea into the south.  Now, this won’t be a perfect one-to-one integration mind you, but an attempt to get the north up to a level where it can operate at some workable and complimentary level with the south.

FSC’s blueprint added that the estimated sum would be sufficient to increase North Korea’s gross domestic product (GDP) per capita from last year’s $1,251 to $10,000 in 20 years. North Korea’s current GDP total of $31 billion is equivalent to South Korea’s 1971 GDP and just 2 percent of its GDP from last year.

Okay, if not taxes, then where would all the money come from?

According to Yonhap:

The FSC said state-run policy financing agencies, including the Korea Development Bank (KDB) and Korea Exim Bank, will play a major role in raising the funds, as Germany’s government-owned development bank, or the KfW, did 24 years ago.

The state agencies will take responsibility for up to 60 percent of the total expenses by running development projects in North Korea, while the rest will be raised by collecting overseas development aid (ODA) and private and public investments.

The Hani was a little more detailed:

In order to raise these funds, the government proposes to have public financial institutions find between US$250 billion and US$300 billion, 50% to 60% of the total, and to allow the private sector to invest between US$107.2 billion and US$186.5 billion in special economic zones and projects with guaranteed profitability.

The government also predicts that it can put US$100 billion of the US$330 billion in tax revenues it collects during the economic development of North Korea to use as funds for further development. These figures were calculated using the South Korean tax rate of 26%, under the assumption that North Korea will experience an average of 8% yearly growth during the first decade of development and 10% of yearly growth during the second decade. In addition, the government believes that it can secure US$17 billion of funding through overseas development aid (ODA) from other countries.

I don’t know.  Sounds a little voodoo to me and it assumes that people would want to invest in the north and that the north’s population would be stable and productive enough to draw some tax revenue to cover the spread.  Still, $250-300 billion is a lot of debt to raise and plunge into the 1960’s era relic that is today’s North Korea.

It must be said that the $500 billion estimate is at an overly optimistic the lower end of a range of assessments.  The upper range being $5 trillion.

Kim Yuna breaks-up with that hockey player dude

Yeah, what’s his name?  Ah, that’s right, Kim Won-jung.

Kim Yuna, Kim Won-jung (Newsis)

(Photo from Korea Times U.S. edition)

Kim Yuna finally took the advice of all her TMH oppas and dumped Won-jung recently.

According to Korea Times:

In August, Sgt. Kim Won-jung, while serving his mandatory military service as an athlete in the military corps, made headlines when he sustained leg injuries after getting in a car accident following a visit to a [Thai] massage parlor.

Kim Won-jung’s representatives reportedly told media the separation was due to his rehabilitation treatment and differences in personality

The Korean defense industry’s armored albatross

To much fanfare in 2007 the South Korean Agency for Defense Development (“ADD“) introduced four working prototypes of the Korean army’s next generation main battle tank- the XK-2 Black Panther.  Demonstration videos and the specifications sheet looked impressive.  It was apparently fast, mobile, powerful and well armed and armored.

The Koreans have the questionable habit of saying that a new weapons system of theirs is of “indigenous” design when the truth is far more, ah, textured.  The K-2’s main gun is a licensed German Rheinmetall L55/120mm gun design, the autoloader was based on the one in the French Leclerc, the snorkel based on the one in the Russian T-80U (a battalion’s worth of tanks given to Korea by Russia to pay off some old Cold War era debts).  The crown jewel of the technology in the K-2 was the powerplant (i.e. engine and transmission) which was the German MTU-890 1,500 hp diesel engine used to propel the four original prototypes.

The K-2 main battle tank (Yonhap file photo)

(Image from Yonhap News)

The Koreans had successfully reversed engineered, licensed and developed pretty much all the technologies to go mass production on the tank with the exception of the MTU-890 powerplant.  Doosan Infracore was tasked with developing an “indigenous” Korean version of the MTU-890.  They said it would take two years.  It ended up taking over seven.   Doosan missed deadline after deadline (Feburary 2009, October 2010, April 2013 and September 2013).  The last failed engine test in September 2013 forced ADD to deploy the first 100 tanks, starting earlier this year in June, with the German engine.

Even as of now, the engine built by Doosan isn’t on par with the German engine.  Instead of going 32 km/hour in eight seconds, it does so in nine seconds.  The military finally had to “relax” their standards.  The plan is to put the Doosan engine into the tank at some point before 2017.

An official from Hyundai Rotem [the main contractor] confirmed to IHS Jane’s that deliveries to the ROK Army of an initial batch of 100 K2s fitted with a foreign engine and transmission started in June 2014, and that subsequent batches are to be fitted with indigenous systems.  100 tanks by 2017?  Originally, there were suppose to be 660 tanks built by 2011.

In addition to being way past schedule, according to the Guinness Book of World Records, the K-2 is  currently the most expensive tank in the world at about USD $8.8 million per unit.

The DPRK vs. The World

Yesterday, the UN voted for a resolution that condemns North Korea for human rights abuses and for the first time recommends the prosecution of its leaders for crimes against humanity at theInternational Criminal Court.  The only question I have is will the DPRK’s long-standing mentor and supporter – the PRC – or the original instigator of trouble in the region – Russia – stand up and defend the backshooters?

As quoted in the linked article:

“If they want to be seen defending the human rights record of the worst human rights offender on the planet, let them do so in public and pay a price” (Sue Mi Terry, a senior research scholar at the Columbia University Weatherhead East Asian Institute and a former intelligence officer with the United States government, who specializes in North Korea.

The USKF to deactivate an entire armored brigade

This is potentially big USFK news.  The “Iron Brigade” (2nd Infantry Division’s 1st Armored Brigade Combat Team) has been in Korea since 1965 and Defense Secretary Chuck Hagel approved its deactivation recently.  This has been combined with other significant USFK recent developments such as the deployment of a 1st Cavalry Division armored battalion on a rotational basis to Korea and the agreement to augment the USFK with a Korean mechanized brigade (the two units to be under the overall command of an American two star general).

Hagel said that deactivation of the 2nd ID’s 1st Armored Brigade was due to “budget cuts.”  It will be replaced by a roughly equivalent armored brigade from the 1st Cavalry Division on a nine month rotational basis.  It would appear that the rotational deployment of an armored battalion (about 1/5 the size of a brigade) was dress rehearsal for this change.

Note

The loss of the 2nd ID’s 1st Armored Brigade appears to be part of a larger downsizing of the U.S. Army.  In all the army will lose three brigade combat teams this year and seven more next year.   This represents roughly a 8-10% decline in combat effectiveness and readiness from the army’s current list of 10 active divisions.  Until recently the active U.S. Army division usually has four brigade combat teams.  Most U.S. Army divisions will now be reduced to three brigade combat teams.

Open Thread – The Stupid Politician Edition

Our stupid politician for this edition is Turkish President Recep Tayyip Erdogan, who claimed that Muslims were in America long before Columbus or Amerigo Vespucci.  Erdogan made his outrageous claim during a conference of Latin American Muslim leaders in Istanbul (The Hugo Chávez Memorial Pork Bar-be-que) which is fitting since Erdogan and Chávez have much in common – an appetite for saying crazy shiz and dishing out corruption.

“Topless” and “bottomless” pictures

The latest controversial photo in Korea has 18 modern dance students at Chonbuk National University in Jeonju, North Jeolla Province, take a “topless” photograph to commemorate their graduation.

2

(Image from ohfun.net)

So, what’s up with that one guy in the right corner?  What’s his story?

Meanwhile, in ‘Murica:

(Image from NY Daily News)

What is it?  Oh, just attention whore celebrity Kim Kardashian and her technologically enhanced butt out there to “break the internet.”

Is it sexy, funny, over-the-top?  Regardless, the internetz, armed with an iconic image, is rather creative at making hilarious fun out of it.

New WSJ series: “Office Outsider”

Are you non-Korean but working in a Korean white collar office environment?  Then you might be an “office outsider.”

(Image from the WSJ)

A non-Korean gal who worked as an English teacher for two years has gotten a job with a Korean corporation.  She thought she understood Korea as an English teacher, but working in the Korean corporate world was a whole new ball game.

My generic workstation in a room filled with cubicles could be located in any office park in North America. But my prior work experience, as well as my two years of teaching English at a middle school near Seoul, did little to prepare me for the Korean corporate sector.

[…]

When I entered the office on my first day of work, I was astonished to see formally dressed office workers standing in rows and performing calisthenics while the official exercise song (국민체조) played over the intercom.

[…]

My journey began with an interview. While I and the other candidates waited for the interview to begin, an human resources representative who was filling out personal profile questionnaires casually asked our blood type, religion, and alcohol tolerance.

[…]

I have faced some of the most curious, challenging, and unexpected experiences of my time in Korea, and my life, from enduring the months-long new employee training camp to adjusting to the office worker lifestyle. Now I am more immersed in Korean culture than I ever imagined or hoped, and the surprises just keep coming.

Calisthenics for office workers?  Questionnaires asking for blood-type and alcohol tolerance?  Everybody bowing in perfect unison?  Oh, my!

“Office Outsider” will be a bi-weekly column written by the gal in question (I am guessing she will remain anonymous?).  I’m looking forward to reading future installments.

Girl group flashes swastika-like symbol?

You be the judge:

qqsmetiua2xubspfe9fz

(Image from iamkoream.com)

This is relatively unknown girl band “Pritz” (프리츠).  It’s spelled “Pritz” because there is no “F” in Korean otherwise it would have been “Fritz.”  Uh, oh.  I think I know where this is heading.

Any ways, more information here.

Breaking: Former Sewol captain gets 36 years

The verdict is in.  It’s not death but 36 years.

(Yonhap)

(Image from Korea Times)

I wonder if he’s eligible for parole?

Also, sentences were handed to the other 14 crew members:

In the same ruling, the Gwangju District Court sentenced the ship’s chief engineer, only identified by his surname Park, to 30 years in prison, convicting him of murder.

Prison terms ranging from five years to 20 years were delivered to 13 other crew members, including the first engineer surnamed Sohn, who have been charged with abandonment and violation of a ship safety act.

In other Sewol news, it was officially announced yesterday that the active search and recovery of missing bodies has ended.

Open Thread: Nov. 9, 2014

Have a good weekend, folks!

« Older posts

© 2014 The Marmot's Hole

Theme by Anders NorenUp ↑