Instead of “we report the news as it happens” we have “we create the news to make it happen”.

Good comment cm. You get a hat tip from me.

I wanted to post the links but couldn’t.
The articles are from Financial Times September 1 “Black September for Korea”, “Korean Stock Down 4.1%” September 1 IHT, and the Yonhap news “한국경제, 비합리적 채무가 문제”, Oct.30.

To be fair though, those headlines are just stating the news as they happen. It’s different for example, when you start predicting a “Black September for Korea” on September 1.

The series of sell offs began right after that report on the same day when the KOSPI sank 4.1%

So there’s the old chicken or the egg question. Did the bad economy cause the pessimistic report, or did the pessimistic report cause the bad economy?

And I saw this in the news today that illustrates the disagreement between the Korean government and some foreign press.

A big chunk of the 420 billion dollar foreign debt, or 36% of them, were incurred by Korean ship building companies who have raked in 60% of the global market share. As you know, it takes 3-4 years to finish a ship and get it delivered to the customers, after which the ship builders get paid in full. In the meantime, Korean ship builders have to take out loans of their own to pay for the construction of the ships. The disagreement is whether this should be counted as “foreign debt”, or not.

The Korean government says it’s foreign debt but not really a foreign debt or a problem because inevitably, the money will be there when the ships are delivered. But foreign investors and the media say otherwise and they are concerned. And I can understand why because they have a good point.

In normal times, Korean ship builders would have no worries that they will be paid back once the ships are finished. But we know these aren’t normal times. Many countries are financially collapsing, and many companies around the world are going bust. What makes anyone sure that once the ships are completed that the Korean ship builders will see all their investments returned? How many customers will back out of the contracts and how many will simply be unable to pay the bills?

…

Certainly.

The Won and the Kosdaq have suffered some loses, but this certainly isn’t the Asian Economic Crisis of 1997-1998. As far as I can tell, the economy is still quite solid. Sure, Hyundai might sell fewer cars. But, all seems well for small and medium-sized businesses, the real backbone of the Korean economy. It certainly hasn’t affected our business.

http://llnw.image.cbslocal.com.....78/ace.jpg

Nevertheless, I enjoyed the meticulous effort of the entry.

Nor do I. But if these problems are common among many other countries facing problems then they do not explain the KRW’s freefall.

I hope you do not fall into that trap either.

I don’t. Korea has lots of problems but that doesn’t mean Korea alone has those problems, no matter what we read in the MH comments.

OTOH other countries having those problems is not a reason for Korea not to work on them.

@6 I agree that many have the same problems (even the US at times), however I refuse to let that be justification or an excuse. I hope you do not fall into that trap either.