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Korea Herald
3 days ago
- Business
- Korea Herald
AmCham welcomes President Lee Jae-myung, vows stronger Korea-US business ties
The American Chamber of Commerce in Korea on Wednesday released an official statement congratulating Lee Jae-myung on his election as the 21st president of the Republic of Korea. AmCham expressed optimism that under President Lee's leadership, Korea will enter a new phase of economic growth and innovation. With both Korea and the United States undergoing significant political transitions, AmCham emphasized the importance of deepening bilateral economic cooperation. 'On behalf of the US business community, I sincerely congratulate President Lee,' said AmCham Chairman James Kim. 'His leadership and vision mark an important turning point for Korea's future. "We look forward to strengthening the Korea-US economic partnership through close collaboration with the new administration.' Kim also highlighted past engagements with Lee, including discussions on support for small and medium enterprises, liquefied natural gas cooperation with Alaska and efforts to attract foreign investment. 'Through every meeting, I was impressed by his forward-looking mindset, openness to innovation and unwavering commitment to enhancing Korea's global competitiveness."
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Korea Herald
28-05-2025
- Politics
- Korea Herald
[Wang Son-taek] Strategic flaws in presidential election
With just a few days left before the presidential election, the race favors Lee Jae-myung, the Democratic Party of Korea's candidate. Most public opinion polls consistently show Lee holding a significant lead over his conservative rivals. Lee is now widely seen as the likely next president — a prospect that would have seemed distant just six months ago. To understand what has made the difference, and what it might mean for the future of South Korea, it is essential to examine the strategic decisions of the three major candidates during the last stretch of the race. Their successes, miscalculations and missed opportunities hold critical lessons for Korean politics beyond this election. Lee Jae-myung's campaign has demonstrated several smart strategic approaches since the illegal martial law incident reshaped the nation's political landscape in December last year. Lee took a strong stance against the unconstitutional declaration, positioning himself as the central national figure who led the movement to cancel the martial law decree through parliamentary action. He has successfully maintained his image as the defender of democracy and the rule of law. This stance has not only solidified his Democratic Party base but has also helped him reach across political lines to voters eager for stability after months of national turmoil. Perhaps most impressively, Lee has shown skill in defending himself against relentless personal attacks from the People Power Party. Throughout the campaign, the conservative party sought to frame Lee as a criminal, a man of questionable character and even a potential dictator. Yet Lee consistently refused to be pulled into the mud. Rather than falling into defensive postures, he turned these attacks into a source of strength, effectively transforming himself into the gravitational center of Korean politics. Lee's strategic messaging has also focused on substantive themes, particularly economic development and pragmatic diplomacy, aimed at reassuring middle-ground voters. Despite repeated attempts to paint him as a dangerous leftist or even a "communist," Lee recently declared that the Korea-US alliance remains the backbone of his pragmatic foreign policy. This stance has allowed him to speak credibly to moderate and conservative voters, prioritizing national security and international credibility. However, no campaign is without flaws, and Lee has shown occasional tactical missteps that risk blunting his strategic advantages. His comments about "Xie, Xie" (thank you in Chinese), remarks about "120 won coffee," and the "hotel economics" concept all sparked avoidable criticism. Although Lee was able to defend himself in each case, these episodes exposed the risk of overconfidence and a lack of message discipline — dangers that could still resurface in the final days of the race. By contrast, People Power Party candidate Kim Moon-soo's campaign has been plagued by strategic errors. While many of his problems stem from broader failures within his party, as the presidential candidate, Kim ultimately bears responsibility. The People Power Party's most severe miscalculation has been its failure to distance itself from former President Yoon Suk Yeol. This election was triggered precisely because of Yoon's illegal and unconstitutional imposition of martial law. Yet the People Power Party did not join the efforts to impeach, arrest or remove Yoon. Nor did it expel him from the party; Yoon left on his terms. This failure to manage the Yoon crisis fatally undermined the party's credibility and undercut Kim's campaign. Another strategic failure was the People Power Party's relentless negative attacks on Lee Jae-myung. Instead of weakening Lee, these attacks elevated him. Many voters watching the party's obsession with Lee increasingly saw him as the most potent, most formidable figure in the race — the only candidate who stood in the battleground while all the other competitors were blurred. The People Power Party did not seem to understand the psychological effect of excessive attack politics. When you focus too much on destroying someone, you signal that they are the real heavyweight and the one worth watching. The People Power Party also over-relied on political engineering, devoting enormous energy to unifying conservative candidates rather than offering some compelling positive visions and attractive plans for the future to the electorate. Worse, the central figure in their unification efforts was acting President Han Duk-soo, widely seen as one of the behind-the-curtains collaborators of the Yoon Suk Yeol insurrection. The result was not a strengthened conservative coalition but a party mired in reputational damage. Lee Jun-Seok, the leader of a conservative breakaway movement, has likewise pursued a paradoxical strategy. His two main goals in this election are to secure at least 15 percent of the vote, which would qualify his party for public funding to cover campaign expenses, and establish himself as a next-generation political leader. Yet his tactics — deepening generational and gender divides to capture segments of the electorate — are shortsighted. While "divide and rule" may appear clever in the short term, it damages his long-term brand. Rather than presenting himself as a potential unifier, he has crafted the image of a divisive, self-centered politician. This choice could hurt his future ambitions more than help them. Ultimately, analyzing the strategies of these three candidates reveals why Lee Jae-myung holds such a commanding lead heading into the final stretch. His strong leadership and pragmatic outreach have given him the upper hand. Meanwhile, Kim Moon-soo's inability to address his party's fundamental liabilities, paired with the People Power Party's self-defeating attack strategies, has weakened and disorganized the conservative bloc. Lee Jun-seok's opportunistic, divisive tactics have further fractured the right without creating a viable alternative. Still, no election is over until the last vote is counted. Even the most vigorous campaign can stumble under the weight of arrogance, missteps, or last-minute surprises. This election, perhaps more than most, teaches an enduring political lesson: real strength comes not from attacks or clever engineering but from the strategic wisdom to balance a sense of duty with flexibility, confidence with humility, vision with discipline, and leadership with responsibility. If the new president of Korea can maintain strategic wisdom even after victory, the political turmoil of the last six months could turn out to be a blessing in disguise. Wang Son-taek is an adjunct professor at Sogang University. He is a former diplomatic correspondent at YTN and a former research associate at Yeosijae. The views expressed here are the writer's own. — Ed.
Korea Herald
21-05-2025
- Business
- Korea Herald
Ex-US Congress members tour Korea to boost cultural, economic relations
A delegation of former US Congress members is visiting Korea to strengthen Korea-US ties by deepening bilateral cultural and economic understanding. The delegation arrived in Korea on May 14, invited by the Kim Chang-joon US-Korea Foundation. The nonprofit organization was founded in 2011 by former US Representative Jay Kim Chang-joon, a Republican who represented California's 41st District in Riverside County from 1992 to 1998. This year's 12-member bipartisan delegation includes seven former lawmakers and their spouses. The Republican participants are Greg Pence of Indiana, John Katko of New York, and Vicky Hartzler of Missouri. The Democratic members include John Sarbanes of Maryland, Brenda Lawrence of Michigan, and Kwanza Hall of Georgia. During their visit, the delegation took part in several cultural and economic activities. On Thursday, they visited the World Taekwondo Headquarters, also known as Kukkiwon, where they learned about the traditional Korean martial art. The following day, the group visited the factory of electrolyte manufacturer Enchem in Cheonan, South Chungcheong Province, to show support for the company's expansion plans in the US. On Saturday, the delegation experienced Korean temple cuisine during a visit to Jingwansa, a Buddhist temple on the outskirts of Seoul. On Sunday, they traveled to Gyeongju in North Gyeongsang Province, a city renowned for its UNESCO-listed cultural heritage sites. There, they met with Gyeongju City Mayor Joo Nak-young and expressed support for the city's hosting of the 2025 Asia-Pacific Economic Cooperation summit. This Thursday, the group is scheduled to attend a banquet at Passion Gukbap, a franchise restaurant operated by Passion Korea that specializes in gukbap, a traditional Korean dish of rice served in hot soup. The 10-day trip will conclude on Saturday. Since 2019, the Kim Chang-joon US-Korea Foundation has invited former US lawmakers on eight occasions in cooperation with the Association of Former Members of Congress, in an ongoing effort to strengthen Korea-US relations.
Korea Herald
19-05-2025
- Business
- Korea Herald
Korean shipbuilders urged to target US vessel demand of up to 448 ships by 2037
Korea's shipbuilding industry needs to undertake strategic moves to capture opportunities in its cooperation with the US, as the country's demand for ships could reach up to 448 vessels by 2037, according to a report released by one of Korea's major business lobbies. The Federation of Korean Industries on Sunday released a study conducted by professor Ryu Min-cheol of Korea Maritime & Ocean University. The study explores strategic ways Korea can cooperate with the US, as the country seeks to rely on allies like South Korea and Japan to meet near-term ship demand while aiming to build vessels domestically to revive its shipbuilding industry. Reflecting this initiative, US Navy Secretary John Phelan and US Trade Representative Jamieson Greer recently met with top executives of Korea's leading shipyards — HD Hyundai Heavy Industries and Hanwha Ocean — during their visits to Korea. According to the report, the US is projected to order between 403 and 448 vessels by 2037, including over 100 container ships, 74 liquefied natural gas and liquefied carbon dioxide carriers, up to 10 icebreakers, 175 naval combat and support ships and 67 auxiliary vessels for wartime operations. These projections are based on US maritime strategies laid out by the Donald Trump administration and US Congress, the report said. The US aims to expand its commercial fleet beyond 250 vessels and seeks to close the gap with China's naval power, which currently fields about 400 naval vessels compared to the US' 287 — a disparity expected to widen if current trends continue. The report also recommends that Korea adopt differentiated strategies based on vessel types in its cooperation with the US. For commercial vessels, where demand for smaller ships exists, the report recommends that Korea develop support policies for small and medium-sized shipbuilders to help expand their production in the US. For naval vessels, where the US is expected to spend up to $1 trillion over the next 30 years, the report suggests that Korea build trust through maintenance projects and focus on noncombat vessels, such as procurement and support ships. When it comes to vessels featuring next-generation technologies, such as large-scale carbon dioxide carriers, liquefied hydrogen carriers and unstaffed vessels, the report calls for the creation of a joint Korea-US fund to support development and commercialization. 'South Korea and the US need to jointly develop a strategy to secure workforce and supply chains when Korean shipbuilders work to expand their presence in the US,' said Ryu, the report's author. 'They should also maintain ongoing dialogue to ensure that US support policies for Korean shipbuilders remain consistent.'
Korea Herald
08-05-2025
- Business
- Korea Herald
BOK faces growing rate cut dilemma as US Fed stands pat
Widening Korea-US rate gap raises concern over capital outflows, market volatility The US Federal Reserve held its key interest rate unchanged, adding pressure on the Bank of Korea's rate-setting decision later this month. Following a two-day Federal Open Market Committee meeting, the Fed maintained its benchmark lending rate in the 4.25–4.5 percent range. With the decision, the gap between Korea's key rate and the US rate remains at 1.75 percentage points. The Fed's pause puts additional weight on the Bank of Korea, which has kept its policy rate at 2.75 percent since February this year. In its most recent meeting in April, the BOK's monetary policy board held the rate steady, citing concerns about a volatile Korean won. If the BOK cuts the base rate by 0.25 percentage point at its next rate-setting meeting on May 29, the Korea-US rate differential could widen to 2 percentage points — raising the risk of foreign capital outflows. Despite this concern, the BOK is under growing pressure to lower rates to support the country's slowing economy. In the January–March period, Korea's GDP contracted by 0.2 percent quarter-on-quarter due to sluggish domestic consumption and a slowdown in exports. While the BOK projected 1.5 percent GDP growth for the year in its February outlook, the first-quarter contraction has darkened the forecast. On the inflation front, easing consumer prices are giving the BOK more room to consider a rate cut. In April, Korea's consumer prices rose 2.1 percent year-on-year, staying within the 2 percent range for the fourth consecutive month. The central bank's inflation target is 2 percent. 'Don't doubt the possibility of a base rate cut. The BOK can lower the rate depending on the economic circumstances,' BOK Governor Rhee Chang-yong told reporters while attending the Asian Development Bank's annual meeting in Milan. The recent appreciation of the Korean won has also eased pressure on the BOK. After weakening to as low as 1,487 won per US dollar in April, the currency has rebounded to the 1,400 range. On Thursday, the won opened at 1,398 per dollar and hovered around 1,395 as of 2 p.m., reflecting gains in Asian peer currencies amid growing expectations that the US will push for dollar depreciation to address its trade deficit. 'The won had struggled to appreciate against the dollar despite a decline in the dollar index, a key measure of the dollar's strength,' said Lee Jung-hoon, an economist at Eugene Investment & Securities. 'The pace of the won's recent appreciation could be concerning, but the current level is not excessive.' 'Given the current dollar index, the won could strengthen further to the low 1,300 range,' Lee added. While the won's rebound eases some short-term concerns, potential volatility in the foreign exchange market remains. A wider Korea-US interest rate gap could spark increased market instability. 'Volatility in the financial and forex markets could escalate depending on developments in external factors such as US tariff policies, negotiations with major economies and geopolitical risks,' said BOK Senior Deputy Governor Ryoo Sang-dai at a meeting convened shortly after the FOMC decision. silverstar@
