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New Zealand's Foreign Minister, Rt Hon Winston Peters, visited Korea in July and in the course of a very substantial programme met with President Roh Moo-hyun, Foreign Minister Song Min-soon, Unification Minister Lee Jae-joung, and the Chair of the National Assembly’s Unification, Foreign Affairs and Trade Committee, Representative Kim Won-wung. A range of bilateral and regional issues was discussed, including the prospects for a NZ-ROK FTA, implementation of the 21st Century Partnership concluded during President Roh’s visit to New Zealand in December 2006, the North Korea nuclear issue and inter-Korean relations, the East Asia Summit, and peacekeeping operations including in Afghanistan. Minister Peters also visited the Demilitarised Zone and met with the three New Zealand Defence Force (NZDF) personnel who are working in the United Nations Command Military Armistice Commission (UNCMAC). His visit generated positive statements by both the Blue House and the Ministry of Foreign Affairs and Trade about the bilateral relationship and the prospects for taking forward an FTA.
Minister Peters was also guest of honour at a reception held at the New Zealand Residence and attended by a large number of senior Korean officials, Ambassadors and key New Zealand contacts. During his brief remarks, Minister Peters took the chance to re-iterate New Zealand's deep concern for the welfare of the South Korean hostages being held at that time in Afghanistan. He also said that New Zealand continued to stand beside its close friend South Korea as it faced the North Korea nuclear threat, and wanted to be part of the international solution. This was Minister Peters' first official visit to Korea as Foreign Minister, and also the first of the annual foreign minister visits contemplated under the 21st Century Partnership. New Zealand looks forward to a reciprocal visit by South Korea's Foreign Minister in 2008.
On 31 July, New Zealand Minister of Foreign Affairs, Rt Hon Winston Peters met with North Korean Foreign Minister Pak Ui-chun on the margins of the ASEAN Regional Forum annual foreign ministers' meeting in Manila. They discussed, among other things, the North Korea nuclear issue and Minister Peters expressed New Zealand's support for the Six Party Talks process and denuclearisation by North Korea. Minister Pak invited Mr Peters to visit North Korea, which he subsequently accepted.
top of pageOn 21 August, New Zealand Foreign Minister Rt Hon Winston Peters announced New Zealand’s contribution of NZ$500,000 to the International Federation of the Red Cross to help with flood relief in North Korea. Torrential rain and flooding caused widespread devastation across North Korea, including of food crops. Reports indicated hundreds of casualties and over 63,000 families were left homeless.
The 23rd Joint Meeting of the Korea-New Zealand Business Council (KNZBC) and the New Zealand-Korea Business Council (NZKBC) was held in Auckland on 3 September 2007. The joint meeting, attended by over 70 business representatives from a wide range of sectors in both countries, felt there was still much scope to enhance trade in both goods and services between the two countries. In particular, they welcomed progress made under the important Partnership for the 21st Century that had been adopted by the Prime Minister of New Zealand and the President of the Republic of Korea when they met in Wellington last December. The meeting also urged the two governments to re-double their efforts under the Partnership towards the development of a formal agreement such as a Common Economic Partnership or Free Trade Agreement, and the facilitation of bilateral trade by continuing the process of removing tariff and non-tariff barriers, wherever possible. Such developments would produce economic benefits for both economies, the meeting concluded.
Mr Dion Burns has been appointed the New Zealand Ministry of Education’s Counsellor for Korea, and will be based in Seoul at the New Zealand Embassy from mid-October. The Education Counsellor’s role will have a particular focus on establishing a long-term education relationship with Korea. About 15,000 young Koreans study in New Zealand each year and a New Zealand Alumni Association (NZAA, http://nzaa.cyworld.com) for Koreans who graduated from New Zealand tertiary educational institutions has been formed in Korea. It is expected that with the role of the new Education Counsellor the bilateral relationship in education can be deepened and broadened, with a shifting emphasis to tertiary as well as secondary schooling and English language studies, with more New Zealanders coming to Korea for study or research, and a richer policy dialogue at the Government level.
New Zealand recently extended its commitment to send NZDF personnel to the UNCMAC (United Nations Command Military Armistice Commission) for two additional years, up until August 2009.
In 1953 an Armistice Agreement was signed which ended fighting in the Korean War. As a result of the Agreement, a 241km long and 4km wide buffer zone, the Demilitarised Zone (DMZ), was created to separate North Korean and South Korean armed forces. The primary role of UNCMAC is to supervise access to, and security of, the DMZ.
New Zealand Defence Force officers have served with UNCMAC since 1998. The deployment involves three New Zealand officers who serve for a six month tour of duty. They are employed monitoring the demilitarised zone to ensure parties comply with the terms of the Armistice Agreement. top of page
Simon Morton visited Korea in September on an Asia:NZ Foundation grant to make a series of radio programmes , focussing largely on Korean cutting-edge information technology including its online gaming and mobile phone industries. The programmes will be broadcast on Radio New Zealand and aim to increase New Zealanders' awareness of modern Korea life. The Embassy and NZTE leant active support to Mr Morton's visit, including help with setting up parts of his programme, and hosting a lunch for him and foreign correspondents based in Seoul. Mr Morton's contact with locally based Financial Times Bureau Chief and Kiwi Anna Fifield may lead to expanded RNZ coverage of events in the region.
A clean and green oasis, 100 percent pure, and the land of the ``Lord of the Rings'' are some of New Zealand's signature images that have been shaped over the years, transforming the south-western Pacific dairy country into the world's fourth most desired place to visit in 2006. How did this happen? Competitive national branding, says the Korea Trade-Investment Promotion Agency (KOTRA), adding that an equivalent tourism and trade boost would happen here if Korea benchmarked some of New Zealand's winning points.
The trade group highlighted the fact that the ``all-natural'' country has successfully positioned itself through an effective private corporation, thorough brand research and clear goal-driven strategies. KOTRA's research showed that incoming visitors increased 53 percent since the ``100% Pure'' campaign kicked off. The ``New Thinking New Zealand'' branding efforts, including the replacement of wine corks with screw caps, also substantially hiked exports.
The Korean Government is currently promoting its “Vision for Brand Power Korea 2010” campaign, which aims to have 70 percent of total Korean exports come from brand name companies and to place more than 10 Korean brands on the world's 100 most recognized names list by 2010.
Two documentaries from New Zealand, Elgar’s Enigma (Annie Goldson), and Made in Taiwan (Dan Salmon) screened at the 4th EBS International Documentary Festival 2007 (EIDF), held from 27 August - 2 September in Seoul. Some 58 documentaries from 35 countries including New Zealand were aired on EBS TV and screened at five movie theatres in Seoul. 30 August was set as New Zealand Day. A live show about New Zealand and the New Zealand documentaries opened the programme, including interviews with New Zealand Ambassador Jane Coombs and New Zealand Director Annie Goldson. EBS also hosted a reception on the day and the audience enjoyed New Zealand wine and kiwifruit. In addition, a New Zealand booth displaying New Zealand culture, trade, tourism and education resources in the lobby of the EBS building attracted many visitors. In the afternoon, New Zealand Director Annie Goldson ran a master class. It was an excellent opportunity to introduce New Zealand’s documentary producing capacity, not only films, to a large Korean audience.
Two New Zealanders, Roger Shepherd and Andrew Douch have embarked on an expedition to trek the 650km-long Baekdudaegan trail, Korea's main mountain ridgeline that stretches along the entire length of the Korean Peninsula. Their expedition began on 1 September and will take 70 days to complete. They started the expedition from Mt. Jiri National Park and plan to end it at Jinburyeong in Gangwon Province. After completion of the expedition they plan to publish a book about their experiences. Details of their expedition can be found on www.baekdudaegan.blogsite.com.top of page
Two pro-government political parties - the 85-member United New Democratic Party (UNDP) dominated by former Uri Party members, and the 58-member Uri Party - announced a merger to field a single candidate against the Grand National Party (GNP) for the December 19th Presidential election on 10 August. The merger formed the biggest political party of 143 lawmakers in the 299-member unicameral parliament.
The new party has been formed under the banner of the UNDP and is led by current UNDP leader Oh Chung-il. Due to its composition, some have criticised the new party as being just a reconstitution of the embattled Uri Party, and political analysts are sceptical as to whether the party will be able to gain much public support.
President Roh Moo-hyun named Sung Kyong-ryung, Chairman of the Presidential Committee on Balanced National Development, as his new chief secretary for national policy planning on 18 September. Sung replaces Byeon Yang-kyoon. Byeon was dismissed for allegedly having abused his power in order to protect Shin Jeong-ah, a female Assistant Professor at Dongguk University in Seoul accused of fabricating her academic credentials. Sung has worked as a Social Welfare Professor at Hallym University, and is considered an expert in government reform, the welfare state, balanced development and regionalism.
Trade Minister Kim Hyun-chong was named as the chief of Korea’s mission to the UN in New York on 21 August. In a reshuffle of diplomatic posts abroad, Cho Tae-yong, a senior assistant to Foreign Minister Song Min-soon, was named Ambassador to Ireland while Kim Joong-jae, former Director-General of the Ministry’s European Affairs Bureau, was assigned as Ambassador to Italy. Yang Bong-ryull was named Ambassador to Malaysia; Shin Un was named Ambassador to Pakistan; Shin Bong-kil was appointed to head the Korean Embassy in Jordan; and Kim Soo-il, a former advisor to the Presidential Committee for the Northeast Asia Initiative, was assigned as Ambassador to East Timor. Cho Sung-hwan was named Ambassador to Oman; Zeon Nam-jin was promoted to Ambassador to Fiji; and Kim Joo-teck has been named as Ambassador to Paraguay.
All healthy Korean men are required to undertake compulsory mandatory military service for 24, 26 or 27 months in the Army, Navy or Air Force, respectively. However, the Korean Government announced on 18 September that conscientious objectors against compulsory military service are to be allowed to undertake alternative services such as caring for the disabled. Formerly they were imprisoned. The alternate service term will be 36 months and it will be shortened to 18 months in 2014. According to the Ministry of National Defence, on average, 750 people annually are prosecuted because they object to performing military service for conscientious or religious reasons. Meanwhile, some conservatives expressed their opposition to the alternative service scheme. The Korea Veterans Association said that the decision undermines the conscription system, causing unfairness to many people serving in the military. They added that it is premature to introduce this scheme as the two Koreas are technically still at war.
Korea and China have agreed to expand cooperation in the development of atomic energy technologies and the building of commercial nuclear reactors. The Ministry of Science and Technology announced on 21 September that detailed plans to expand ties will be discussed at the eighth Korea-China Committee on Nuclear Energy scheduled for October in Beijing. Korean Science Minister Kim Woo-sik explained that Korean companies had the technological capability to design and build safe, reliable nuclear reactors that could contribute to China’s plans to increase its nuclear energy output. Korea has 19 operational reactors that generate just under 40 percent of the country’s total electricity output while China has four nuclear plants in operation. Korea wants to play a role in the building of the 31 new nuclear plants that China plans to build by 2020 to meet its soaring power demand. top of page
The Korean Government plans to raise its budget spending 7.9% next year to boost social welfare and research projects, and thus develop stronger economic growth potential. The Ministry of Planning and Budget announced on 20 September that the consolidated budget, which includes ordinary and special accounts as well as state funds, will reach 257.3 trillion won (US$276.7 billion). The increase in the proposed budget is larger than projected economic growth. Spending on social welfare and health will increase 10 percent from this year to 67.5 trillion won (US$ 74 billion). The Minister for Planning and Budget explained that the budget proposal is centred on expanding social investment and securing a driving force for future growth in preparation for a low birth rate and an aging society. If the budget proposal is approved by the National Assembly in October, it is expected that the direction of these policies is not likely to undergo significant changes regardless of a new President taking office early next year.
Korea’s economy expanded 5.2% in the 3rd quarter. Year on year, according to the Bank of Korea (BOK)’s preliminary data. Quarterly consumer spending advanced 1.5% quarter-to-quarter, nearly doubling from 0.8% in the previous quarter, boosted by household expenditure in semi-durable goods and service products. On a quarter-on-quarter basis, the economy grew 1.4% in the 3rd quarter and 1.8% in the previous quarter. Exports, accounting for about 40% of Korea’s GDP, grew 1.5 % between the second and third quarters. Export growth slowed from a 5.2% rise three months earlier due to sluggish overseas demand for petrochemical products while the export of semiconductor chips and machinery remained strong. For the outlook for the 4th quarter, a BOK official predicted that it would exceed “upper-4%” with strong exports and private consumption. However, there are external factors which could slow growth such as the rising price of oil and raw materials and uncertainties in the global economy including possible repercussions from the US sub-prime mortgage crisis.
The Korean Government continues to make progress with its ambitious FTA programme. The Korea – US (KORUS) FTA which was concluded in April was introduced to the National Assembly on 7 September for ratification. Prime Minister Han Duck-soo introduced the FTA with a statement urging lawmakers to ratify the FTA quickly. The FTA will be formally reviewed by the National Assembly’s Unification, Foreign Affairs and Trade Committee and will also be open to debate in the House. The FTA faces a number of hurdles within the National Assembly before it can be ratified, and a vote on ratification is not expected to take place until 2008 (although it is possible for a vote to happen before the end of the current session in December). FTA negotiations with the EU entered a third round in September but hit a roadblock over tariff concessions. Both sides are still publicly saying that the aim is to conclude negotiations this year.
Korea – Canada FTA negotiations are also ongoing with both sides hoping to conclude this year. FTA negotiations between Korea and Canada started before the KORUS FTA negotiations but have taken much longer to complete, in part due to differences over sensitive agricultural items. Korea has also announced that the stalled negotiations with Mexico will restart this year. Negotiations with India on a Closer Economic Partnership Agreement are also making progress. Joint FTA feasibility studies, such as the government level study with MERCOSUR, the academic and industry level study with China and the private level studies with New Zealand and Australia also continue to make progress. In September Korea also announced that it will undertake a private level joint study on the feasibility of an FTA between Korea and Peru.
top of pageThe Ministry of Education and Human Resources Development announced on 6 September that it will ban the establishment of specialised high schools, including foreign language high schools. As background, the Ministry explained that seven out of 29 foreign language high schools had created special classes for students aiming to enter medical and science and engineering colleges.
Primary and secondary school laws classify a foreign language school as an institute that focuses on nurturing talented students in foreign languages. The Ministry also pointed out that the specialised schools have burdened parents with higher fees. Average tuition fees at the schools are 5.16 million won (NZ$7,360) a year, three times higher than normal high schools. However, city and provincial education authorities are complaining about the Ministry’s policy, countering that the Government should address the problems leading to a demand for specialist schools.
Twelve new primary and secondary schools that will offer intensive English immersion programmes will be built in an English-only town on Korea’s Jeju Island by 2013. The Korean Government unveiled a draft plan to establish an English-only region on Jeju Island on 4 September. According to the Office for Policy Coordination (OPC), about 780 billion won (US$831 million) is budgeted for the project, and seven primary schools, four middle schools, one international school and an English education centre to train teachers and conduct research will be built together with other residential and cultural facilities.
About 9,000 students from grades three and twelve will be accommodated in the Town. Students at elementary and middle schools will be allowed to take part in one to two-year English immersion programmes and high school students will participate in a three-year programme to prepare for university entrance.
The first Korean astronaut who will go on a space trip on a Russian Soyuz spacecraft in April next year has been chosen. The Ministry of Science and Technology announced on 5 September that Ko San, a 30-year-old artificial intelligence researcher who worked at the Samsung Advanced Institute of Technology, was selected as the first astronaut. According to the Ministry, Ko was chosen after intensive assessment by a seven-person astronaut selection committee of over 36,000 applicants. Ko will spend seven to eight days in orbit conducting various scientific experiments on the International Space Station.
Meanwhile, the Korean Government in February announced that it will spend a total of 293 billion won (US$313 million) on space development in an effort to catch up with the global industry. Korea is scheduled to complete the nation’s first space centre in Goheung, South Jeolla Province, by the end of next year.
top of pageNorth Korea’s economy shrank in 2006 for the first time in eight years, according to the BOK. The economy contracted 1.1% last year because of energy shortages and bad weather after growing 3.8% in 2005, South Korea’s central bank said in a report released on 16 August. The report said that the North’s GDP had steadily grown for seven years since a 6.2% rise in 1999. North Korea’s nominal GNI amounted to US$25.6 billion last year, up 5.8% from a year earlier. Meanwhile, the gap between the two Koreas grew larger last year. South Korea’s GNI of US$887.3 billion last year was 34.7 times larger than North Korea’s, widening from a 32.6-fold differences in 2005. GNI refers to a nation’s GDP plus its trade loss or gain arising from changes in terms of trade.
Stefan Corbett finished his posting to Korea in July and returned to work in the Asia Division in the Foreign Ministry in Wellington. His position as Second Secretary (Trade) was filled by Tredene Dobson, who completed two years of Korean language training in June.
