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Mr Anderton said that he hoped the Arrangement would lead New Zealand and Korea "closer to an FTA" by making progress towards cementing a "long-term strategic partnership in agricultural trade." A range of prospective activities to implement the Arrangement are being considered by the two Governments, including meetings between senior Government officials to discuss policy issues, an economic analysis of enhanced trade opportunities, and visits to New Zealand by Korean farmers and farmers' representative groups. Mr Anderton also stressed the need for both Governments to further facilitate communication between private sector producers and industry representatives to help create mutually advantageous commercial relationships.
North Korea’s new Ambassador to New Zealand (resident in Canberra), Bang Song-hae, made his inaugural visit to New Zealand and presented credentials to the New Zealand Governor General on the 25th May.
Doing much to strengthen the ties between New Zealand and Korean Parliamentarians, Representative Lee Sang-bae, President of the Korea-New Zealand Parliamentarians’ Friendship Association visited New Zealand in May under the New Zealand/Korea Parliamentary Fellowship Exchange Programme. Lee called on Hon Margaret Wilson, Speaker of the New Zealand Parliament, and met with members of the New Zealand/Korea Parliamentary Friendship Group.
Reporter Kim Min-goo from Maeil Business Newspaper, a leading business daily in Korea, visited New Zealand under the Seriously Asia Media Exchange Programme in April and published a number of articles. Kim focussed on New Zealand’s strong agriculture, IT and film sectors, and reported on the benefits both New Zealand and Korea would stand to gain if the two countries further cooperated in these sectors. Included was an interview with Agriculture Minister Jim Anderton, which was published during Minister Anderton’s visit to Korea. Also interviewed was Judith MacCann, CEO of Film New Zealand. MacCann spoke strongly in favour of a closer New Zealand/Korea film relationship. Kim is the third Korean journalist to visit New Zealand under the Seriously Asia Programme since its initiation in 2003.top of page
Both the New Zealand wine and the talent were a hit with the audience, and gave New Zealand representatives in Seoul the opportunity to strengthen relationships with key contacts in a relaxed and thoroughly enjoyable environment.
During a reception hosted by New Zealand Ambassador Jane Coombs for the veterans, one veteran said he had mixed feelings: sadness as he remembered friends and comrades who fell on the field of battle, but also happiness at meeting old friends again, and great pride in seeing just how much Korea has developed since the devastation of the war. The New Zealand delegation, comprising 17 veterans and 11 veterans’ family members, visited the National Cemetery, the Korean War Memorial, Kapyong county north-east of Seoul (see photo) and the United Nations Cemetery in Busan.
A commemorative ceremony was held at the Australia/New Zealand memorial site in Kapyong County to mark the most perilous battle fought between New Zealand troops and North Korean/Chinese soldiers during the Korean War. Korean War veterans, members of the public and many distinguished guests including government and military officials attended the ceremony in spite of heavy rain. As part of the proceedings, 32 scholarships organised by the New Zealand Embassy were given to Kapyongbuk Middle School students. The scholarships were made possible due to the kind sponsorship by a number of New Zealand and Korean companies, organizations and individuals. During the battle of Kapyong (22-25 April, 1951), which was one of the decisive battles of the Korean War, the 16th New Zealand field regiment provided support to the units of the 27th Commonwealth Brigade and to South Korean divisions. Near where New Zealand and Australian memorials now stand, the New Zealanders fired 10,000 rounds at targets just a few hundred metres away. If Kapyong had been lost, it would have been a short march to Seoul for the Chinese and North Korean forces. The Korean presidential unit citation was awarded to New Zealand’s 16 Fd Regt for its service in the Battle of Kapyong.
Approximately 200 people including Commonwealth Korean war veterans, international representatives and members of the public gathered at the National War Memorial of Korea to commemorate ANZAC Day in Seoul.
In the marble corridor that holds the engraved names of all United Nations Command personnel who perished in the Korean War, New Zealand Ambassador Jane Coombs spoke of the need to avoid glorifying war, while honouring those who gave their lives. From 1950 to 1955, nearly 3,800 New Zealand soldiers and 1,300 members of the Royal New Zealand Navy served in Korea.
The 4th New Zealand Alumni Association (NZAA) barbeque was held at the New Zealand Residence in May, helping to deepen the ties those who studied in New Zealand have with the country. Over 70 NZAA members attended the event, which generated useful media attention. New Zealand Ambassador Jane Coombs was interviewed by Hankook Ilbo Daily about the New Zealand education system and the NZAA gathering. With assistance from the New Zealand Embassy, NZAA was formed in 2000 by Koreans who had studied at New Zealand tertiary educational institutions. NZAA members now range from those who studied in New Zealand in the 1960s to more recent graduates. This year Cho Jun-ho, a graduate of Lincoln University, replaces Kwon won-il, a graduate of Auckland University as NZAA President.
With the help of the Embassy, New Zealand film directors Andrew Penniket and Andrew Marshall were able to attend the 4th Seoul Green Film Festival, which features environmentally aware films and documentaries. Both Penniket’s short film, Hard Hat Harry and the Pearls of Wisdom, and Marshall’s short film, Plunge of the Penguins were well-received at the festival. As both directors made films for children, the Embassy also arranged for Penniket and Marshall to visit the New Zealand Centre for Culture and Education (NZCCE), which received media coverage. The Korean primary students learning English at NZCCE were thrilled at meeting the directors of two highly entertaining and inspiring films. top of page
A major step forward in the New Zealand/Korea film relationship, Film Auckland and the Korean Film Producers Association concluded a Memorandum of Understanding (MOU) with Korean counterparts during the New Zealand delegations visit to Seoul in May. The MOU is designed to increase cooperation between the film industries.
This May, more than 90 people, including a 15-member Auckland Film Production delegation and major figures from the Korean film industry, attended the New Zealand/Korea film co-production seminar in Seoul. The seminar looked at the benefits a closer New Zealand/Korea film relationship would have, and included presentations by key New Zealand film industry figures such as Robin Scholes from Eyeworks Touchdown, Philippa Campbell of Escapade Films, and Paul Carran from The Film Factory, as well as by important Korean film industry professionals. Also present was Lee Nam-Jin from Korea’s Film Alchemy. Lee is currently working on two horror film co-productions, Soul Mate and Guest House, with New Zealand film industry colleagues.
New Zealand Police Commissioner, Howard Broad’s visit to Korea was the first official visit to Korea by a New Zealand police official. Broad’s visit to Seoul came a year after the official visit to New Zealand by Korea’s Police Commissioner General Lee, when a cooperative arrangement was concluded. It was another highly successful visit for both the New Zealand and Korean police services. Broad and Lee were able to gain further understanding of how the other side operates, and they agreed to closer cooperation in international affairs and to share strategies on keeping local communities safe.
Accompanied by a New Zealand Embassy staff member, Dr Lee Jong-ho and Dr Hyun Ik-hwa from the National Plant Quarantine Service (NPQS), visited New Zealand in June to find out about the New Zealand export potato compliance programme. The trip was important because Korea is potentially a lucrative market. The NPQS officials visited potato fields, pack houses and laboratories in Auckland, Christchurch, Palmerston North and Invercargill to observe how the export potato programme works. New Zealand MAF has been working on potato access to Korea for over 10 years, and is now working towards finalising an export protocol. If successful, New Zealand will be the first country to export table potatoes to Korea. top of page
Last year, Meat and Wool New Zealand introduced a new brand of beef into the Korean retail market, which promoted the clean, green, and safe environment that New Zealand beef comes from. Meat and Wool New Zealand have done a number of promotions to increase their retail presence including a promotion at the New Zealand residence in Seoul. Coinciding with the recent re-entry of USA Beef into the Korean market, the event attracted 70 VIP guests including key media, importers and retailers. The event, as well as key messages about Meat and Wool New Zealand’s brand were covered on internet news sites and in print media, with pictures of Ambassador Jane Coombs and Trade Commissioner, Andrew French cooking and serving New Zealand beef to guests.
The opening of the Alan MacDiarmid Energy Research Institute (AMERI) at Cheonnam University, gave Ambassador Jane Coombs a good opportunity to note the progress made in science collaboration between New Zealand and Korea. Professor Alan MacDiarmid became a New Zealand-born Nobel Prize laureate in Chemistry in 2000. He died in February of this year. Professor MacDiarmid’s research on plastics’ ability to conduct electricity has had an enormous impact. His research has made a multitude of applications possible, from plastic rechargeable batteries to mobile phone displays.
Historic railway test runs between the two Koreas were carried out in May for the first time since the 1950-53 Korean War. During the 13th inter-Korean economic cooperation talks in Pyongyang in April, South Korea promised to send light industry raw materials worth some US$80 million to North Korea in return for the railway test runs. Two trains, carrying 100 South Korean passengers including Unification Minister Lee Jae-jung and 50 North Koreans crossed the closely guarded Demilitarized Zone (DMZ) on both the western and eastern sides of the Korean Peninsula. The South Korean train ran on the Gyeongui Line from Munsan to Gaeseong, and the North Korean train travelled on the Donghae Line from Geumgang to Jaejin. The South Korean government is hopeful that successful test-runs would be a stepping stone to fully reopening the railways and the government contends that a full reconnection of the railways will also bring positive developments in military and economic relations with the North. The Korea Railroad Corporation says that North Korea, South Korea and Russia have already started discussing linking the Trans-Korean Railway and the Trans-Siberian Railway.
Korea and China have agreed to set up military hotlines between their navy operations and air forces in late August of this year. The two sides have also agreed to hold joint rescue-and-salvage operations in the Yellow Sea. The agreements were made during a meeting between Joint Chief of Staff Chairman General Kim Kwan-jin and General Liang Guang Lie, chief of the General Staff of the Chinese People’s Liberation Army. The hotlines are to be installed in navy and air force units on both sides in August to mark the 15th anniversary of diplomatic ties between Korea and China. Korean defence officials said that the 24-hour telephone hotlines are expected to help prevent disputes arising over Chinese fishermen fishing illegally in the Yellow Sea.
By-elections to select 3 National Assemblymen, 6 local administrative chiefs and 47 local council members, took place in 55 districts nationwide in April. Voter turnout stood at 27.7%. The Grand National Party (GNP), the opposition party that leads in popularity polls and has two leading presidential candidates, won only one of the three parliamentary seats. Seats in Hwasung of Gyunggi Province, the Muan-Sinan district of South Cholla Province and Daejeon of South Choongchung Province went to Ko Hee-sun of GNP, Kim Hong-up of the Democratic Party (who is also the eldest son of former President of Kim Dae-jung), and Shim Dae-pyung of the People First Party respectively. GNP was particularly shocked by its poor results in Daejeon, where GNP is usually favoured. The by-election results were widely considered as a barometer for this year’s presidential election, to be held on December 19. GNP leaders came under pressure to quit and several GNP post holders resigned the next day to take responsibility for the party’s poor results. The by-election results delivered the following National Assembly composition: GNP – 128 seats, Uri Party – 108 seats (though these numbers have since reduced further – see further in this issue), a breakaway group of the Uri Party – 24 seats, Democratic Party – 12 seats, People First Party 6 seats, independent – 12 seats.top of page
Former Seoul National University President Chung Un-chan and former Chairman of the Uri Party Kim Geun-tae quit the presidential race on 30 April and 12 June respectively. In a statement Chung said that he realised that he lacked the ability and other requirements needed to pursue the job. He had been floated as a potential candidate to represent liberal groups. In the meantime, Kim Geun-tae also dropped his presidential bid and left the Uri Party. Kim urged lawmakers of pro-government groups to work together to choose a single presidential candidate through open primaries.
A group of lawmakers who defected from the Uri Party in February, launched a new party in May tentatively named the New Party for Centrist Reform and Alliance, pledging an alliance with liberal politicians. Rep Kim Han-gil, a former Floor Leader of the Uri Party was chosen as their new leader. The new party, with more than 20 legislators, registered as the third largest negotiation group in the National Assembly. Discussions over a new party between the splinter group and the Democratic Party are underway.
Amid rumours about his presidential bid, Health and Welfare Minister Rhyu Si-min offered to resign from his post and return to the Uri Party after a year and four months in the Cabinet. President Roh Moo-hyun accepted his resignation. Political commentators said that Rhyu’s comeback will likely give leverage to a pro-Roh faction within the Uri Party. Inside sources say that President Roh does not want a party split and Rhyu, a close confidant to President Roh, will try to follow the President’s wish. However, Rhyu’s return may expedite desertion and a split; within the Uri Party are those who do not support President Roh and do not welcome Rhyu’s return.
After the first mass defection of 23 Uri Party lawmakers on 6 February, another group of 16 junior lawmakers deserted the Party to align with other liberal forces and establish a reformist bloc to challenge the Grand National Party (GNP) in this year’s December presidential election. A further 16 lawmakers deserted from the Uri Party on 15 June including former Party Chairman Moon Hee-sang, and Chyung Dai-chul, an adviser to the party. Uri Party numbers have reduced to 73 from 152 three years ago. The “deserters” said that they aim to create a grand coalition of liberal groups. Former Chairman of the Uri Party Chung Dong-young also quit the party on 18 June. As more Uri Party legislators have vowed to leave, the party now will likely become the third largest floor group ahead of the presidential election.
Two presidential candidates of the Grand National Party (GNP), former Seoul Mayor Lee Myung-bak and former GNP Chairwoman Park Geun-hye hold a lead in public polls of about 35% and 25% respectively. Lee’s core election pledge, dubbed the ‘Pan-Korea Grand Canal’, is to create a cross-national waterway connecting South Korea with North Korea. It would be 3,100 kilometres long and comprise 17 routes including five in the North. The longest canal would be Gyeongbu Canal or Seoul-Busan Canal which would link the Han River in Seoul to the Nakdong River in the south-eastern port city of Busan. Lee considers the canal project to be an all-in-one pledge that offers a solution to soaring logistics costs, air pollution, and water shortages. Lee claims that the canal project will help Korea become the seventh largest economy in the world. However, Lee’s opponents including GNP’s second leading presidential candidate Park, and President Roh Moo-hyun, criticise the idea, pointing to lack of economic feasibility and potential environmental disruption. In response to Lee’s canal project, Park announced a ‘Train-Ferry’ plan, which involves launching a rail and sea route that would link Korea, China and Japan. Park believes that a train-ferry system can significantly reduce distribution costs, and contribute to economic and trade development. This plan has also generated much criticism regarding its feasibility. Both Lee and Park aim to achieve 7% economic growth per annum, and have pledged investment promotion by deregulation, and tax reductions. For North Korean policy, Lee pledges to help North Korea achieve a national per capita income of US$3,000 by developing an inter-Korean industrial complex on the estuary of the Han River while Park pledges to proceed with three phase-unification: establishment of peace, economic unification and political unification on the Korean Peninsula. In foreign affairs, Lee talks of closer economic and security ties with other Northeast Asian countries while Park speaks of strengthening the alliance with the USA. The GNP is to elect its presidential nominee on 20 August.top of page
The current Government’s changes to press rules has generated fierce opposition from journalists and politicians including former Seoul Mayor Lee Myung-bak, and former GNP Chairperson Park Geun-hye, the two leading presidential candidates, concerned about the possible restriction of news coverage. Some critics believe that the new measures call for a constitutional petition, because they say they disregard the freedom of the press. The Korean government announced its plan to reduce the current 37 press rooms in government offices into ‘combined briefing rooms’ in government complexes in central Seoul, Gwacheon and Daejeon. Four briefing rooms and a separate office for news transmission will be set up in Seoul and Gwacheon, and one briefing room will be created in Daejeon. A maximum of four seats will be permitted for each type of media outlet in the news transmission rooms. The government plans to begin construction of the new briefing rooms June 30. Due to dispersed locations, Blue House, National Assembly, National Police Agency, Supreme Prosecutors’ Office, Defence Ministry, and the Financial Supervisory Commission will retain separate briefing rooms. The government also plans to establish a ‘tele-briefing system’ so reporters can cover news without having to visit the government agencies. Reporters will be provided real-time briefings and will also be able to question officials online. Under the new plan, journalists will not be allowed to be stationed in any government offices. Temporary press cards to attend news briefings will be provided. Presidential briefings to journalists with a question and answer session will be broadcast live on KTV, the state-controlled broadcaster that exclusively covers government policies, from July 2007. The government has argued that the plan is needed to reform a badly corrupt and authoritarian pressroom culture and to bring it up to the level of briefing systems in other developed countries.
Vice Minister of Health and Welfare Byun Jae-jin was appointed as the Health-Welfare Minister on 23 May. Minister Byun replaced Rhyu Si-min, who rejoined the Uri Party as a lawmaker after serving for the past 13 months. Vice Minister of Maritime Affairs and Fisheries Kang Moo-hyun was also promoted to the position of Maritime Affairs Minister, and CEO of the Korea National Tourism Organisation Kim Jong-min was appointed the Minister of Culture and Tourism in April.
Progress in the 21st Inter-Korean Ministerial talks, held in Seoul, was slow, probably due to South Korea holding to its decision to delay the shipment of 400,000 tonnes of rice aid to North Korea absent progress in the Six Party Talks 13 February Agreement. Nevertheless the Ministry of Unification presented the talks in a positive light, noting for example that the two parties managed to discuss, in a civil way, how to develop the inter-Korean relationship in the future. South Korea has since started to ship rice to North Korea, due to progress made by North Korea in shutting down its nuclear facilities in Yongbyon.
Following the Organisation for Animal Health (OIE) finding that the United States of America (US) is considered a “controlled risk” country for BSE, Korea and the US are set to renegotiate the conditions under which US beef can be exported to Korea. In 2003, Korea banned all US beef imports following confirmation of a case of BSE in the US. Korea partially lifted that ban in September 2006, allowing exports of boneless beef from cows less than 30 months old. On the back of the OIE recommendation, import conditions are now widely expected to be broadened to include bone-in beef cuts from the US from September 2008. Prior to the prohibition placed on US beef in 2003, US beef accounted for nearly 75% of the imported beef market in Korea. Australian and New Zealand beef exporters have been the main beneficiaries from the absence of US beef in the Korean market. top of page
Korea and the EU held their first round of FTA negotiations in Seoul 7-11 May. Officials reported progress in the talks was better than anticipated. Korean Chief Negotiator, MOFAT Deputy Minister Kim Han-Soo said progress had been faster than expected and that a final deal may be reached as early as May 2008. Both sides agreed to eliminate more than 95% of industrial tariffs immediately, with the remainder becoming duty free within 10 years. The EU is Korea’s second largest trading partner, behind China, and Korea’s largest source of investment. Last year, trade between the two economies totalled over 60 billion Euros. The second and third rounds of negotiations are scheduled for July and September in Brussels.
The Korean government plans to increase its spending next year by 8%, reaching 256 trillion won (NZD360 billion), the highest recorded in 6 years, to finance expanding social welfare programmes. The rise in government expenditure is expected to further boost the country’s national debt. In early April the National Assembly passed a pension bill which is expected to cost the government 2.4 trillion won (NZD3.37 billion) next year alone. The Ministry of Planning and Budget said that they will try to keep the ratio of state debt to gross domestic product (GDP) at the current 33.4% next year by collecting more taxes.
Korea’s economy grew 0.9% in the 1st quarter of this year compared to the previous quarter. Exports account for about 40% of the US$887 billion economy and have been the main driver of growth. Higher Asian and European demand is boosting sales of steel at POSCO and ships at Samsung Heavy Industrial Co. even as the US expansion slows, while stable interest rates should help spur a rebound in household spending. Korea’s goods exports climbed 2.8% in the first quarter, recovering from a 0.5% drop in the fourth quarter. Private consumption jumped 1.3% in the quarter, the largest increase in almost two years. The central bank forecasts the economic growth rate will reach 4.7% in the second half, which would result in a 4.5% gain for the whole year. The estimate is down from the economy’s 5% expansion last year.
Michael O'Shaughnessy arrived in Seoul in late June to begin two years of Korean language training. He will join the diplomatic staff in the Embassy at the end of his training in 2009.
Tredene Dobson, having successfully completed two years language training, will join the Embassy as Second Secretary (Trade and Economic) on 6 August. She replaces Stefan Corbett, who is returning to New Zealand to take up a position in the Asia-North division in August.
