Korea sees worst week since 9/11

It is so amazing to witness Korean stock market plunged so much because of what they call, US subprime issue. The major English daily, the Korea Herald, said that the stock market hit the bottom since the 9/11. I heard from one of my friends in Korea that even some college students invested their student loan to stock market before this thing happened. It will be so disastrous to many who invested out of loan.

https://www.koreaherald.co.kr/SITE/data/html_dir/2007/08/18/200708180028.asp

"The subprime issue won't be put to sleep easily," said Jeon Jeong-woo, who
manages the equivalent of $580 million at UBS Hana Asset Management Co. in
Seoul. "People suspect we're not yet seeing the whole extent of the problem. The
heavy foreign selling will let up only after we see signs that the subprime
impact is stabilizing."

The KOSPI index dropped 53.91, or 3.2 percent, to 1,638.07 in Seoul. It rounded off a 10 percent weekly decline, the worst since the week of the Sept. 11 attacks.

The impact of globalization is so fast and tenacious. We should grow wiser to cope with it.

N. Korea blasts U.S. for not working harder to free Korean hostages in Afghanistan

North Korea which kept silent about the matter of Korean hostages in Afghanistan broke silence by way of accusing US for doing nothing to solve this matter.


https://www.koreaherald.co.kr/archives/result_contents.asp?id=200708150086&query=taliban

North Korea blasted the United States Wednesday for "sitting idle" and turning a blind eye to the protracted captivity of 19 South Korean hostages by Taliban insurgents in Afghanistan.

"The U.S. is coolly turning aside from the case, while repeatedly calling for not making compromise with terrorism," said the English-language commentary carried by the North's Korean Central News Agency.

The North Korean newspaper blamed the U.S. war on terrorism for the hostage-taking unfolding in the South Asian Islamic country.

"Such tragic case would not have occurred if the U.S. had not launched the brigandish
war on terrorism in Afghanistan and introduced South Korea there to meet its own
interests," it said.

Considering their past history of transacting with terrorists countries, their claim is held askant by many South Koreans. This comment is interesting because it came from the country once labeled as an "Axis of Evil" by president George Bush.

U.S.-Made Toys Benefit From China’s Troubles

The recent recalls of Chinese-made toys found to contain lead in their paint has been good for U.S. toy makers who had a hard time competing against cheaper Chinese imports.

(http://www.nytimes.com/2007/08/15/business/15toys.html)

With about 80 percent of the toys sold in the United States manufactured in China, the relatively few manufacturers of American-made toys who remain have relied to some extent on snob appeal and survived mostly by emphasizing the quality of their products — even if they cost more money.

But some are now pointing to another competitive advantage: you can count on them to be lead free.

After struggling for years to compete against cheaper Chinese imports, several manufacturers of American-made toys said they had been inundated with calls in recent weeks from retail chains and customers inquiring about their products.

The calls increased yesterday after Mattel announced its second major recall of Chinese-made toys that contain lead paint. In June, an Illinois toy manufacturer, RC2 Corporation, recalled 1.5 million Thomas & Friends toy train sets that were manufactured in China and contaminated with lead aint.

I hope this is a high time that Chinese entrepreneurs get really alerted to the safety of the product prior to profit. After all, these days it seems almost impossible for so many people in this world, to have a daily life without using Chinese imports from food to toys.

What will be the best countermove?--Taliban Release 2 Korean Hostages

Talliban finally released 2 Korean hostage women allegedly unconditional.
Because they released them uncoditionally for the "humanitarian reason", they ask Korea to oblige to their original demand-- the prisoner swap.

http://www.nytimes.com/2007/08/13/world/asia/13cnd-hostages.html?ref=world

Since America and Afghan government are adamently refusing any compromise, especially prisoner swap, with the terrorists, there are not many choices the Korean party can take. Money? They will buy more high tech arms and in turn get encouraged to do more kidnapping. Under the massive emotional pressure, what could be the wisest action the Korean government take? How would you do, if you were in the negotiating table?

China's presence in Chad--China, Filling a Void, Drills for Riches in Chad

New York Times features an article about China's active involvement in helping Chad for the road to development. Chad, gaining the independence from France only in 1960, and being one of the poorest country in Africa welcomes the help.

http://www.nytimes.com/2007/08/13/world/africa/13chinaafrica.html?em&ex=1187236800&en=201d18be9eca0763&ei=5070">

To help make that happen, China plans to build the country’s first oil refinery, lay new roads, provide irrigation and erect a mobile telephone network, for starters.
With such intensive efforts across the continent, China’s trade with Africa topped $55 billion in 2006, up from less than $10 million in the 1980s.

Still, major doubts hang heavily in the air. Will China’s hunger for raw materials enable this continent to take off? Or will Beijing’s willingness to spend whatever it needs in Africa, without regard to fiscal prudence, democracy, honest business practices and human rights, produce a replay of booms past, enriching local elites but leaving the continent poorer, its environment despoiled and its natural resources depleted?

Chinese officials almost invariably describe their relationship with African countries as a win-win — based on mutual respect, aimed at joint prosperity and free of the overtones of exploitation and paternalism that critics worldwide say have governed much of the West’s postcolonial relationship with Africa.

But as to the effect of this proposed win-win aspect, I am quite doubtful knowing both Chad and China are countries with a reputation of corruption. What do you think?

Two Koreas to hold summit

http://www.cnn.com/2007/WORLD/asiapcf/08/07/2koreas.summit/index.html

On August 28-30 in the North Korean capital of Pyongyang, there would be the two Korea's second -ever summit and almost every Korean people are excited about the upcoming national event. The second summit is aimed at raising relations between the two nations. The summit will raise South-North relations and open a new stage of peace, joint prosperity and unification on the Korean peninsula.

Korea is the only one existing country who has been divided into two nations in the world. This summit is going to be the second in seven years between the two nations. I remember the first North and South Korea summit in 2000. Even though there was not much changes in the relations between two nations after the first summit, I would not give up hoping about the changegs thsi summit could possibly bring about. Yet, some of doubts came up to me like why the North Korea has agreed to hold summit talks with a South Korean government. I thought about possible answers to North Korea's agreement on this second summit talks. And then I assume it as one way of North Korea's politic strategy. North Korea has been seeking normalization of relationship with Washington. North Korea government agreed to have a summit talks with South Korea not because of their genuine desire to deepening the relatinos, but to use and play in international arena. North Korea might have recongnized that an inter-Korean summit could help improve its hostile relationship with the United States.

Darfur's rebel groups reach deal

http://news.bbc.co.uk/2/hi/africa/6932625.stm



This article about Darfur's rebel groups having been agreed on a common position and want "final" talks with Sudan's government in near future somewhat sounds hopeful.
The decision/agreement to send 26,000 UN and African Union peacekeepers to Darfur was made last week. However, I am wondering how those institution play authentical roles in ensuring peace in Darfur.
It is cheering to haer that the Darfur's rebel groups have agreed on a common position, with this they can maintain a united position for the good of all Darfuris. To improve upon the situation, all parties must adhere to the terms of any agreement that will be reached subsequently, if this done, there is a very high probability to maintain peace in Sudan's troubled region.
These talks need to be truly multilateral if there is to be any hope for peace in Darfur. Without the officials from both sides of the Darfur conflict present, any agreements made cannot be held legitimate by all parties. Although the UN has been successful in some crises such as Haiti (for the present time) the situation in Darfur is one that cannot be solved without pressure on China, a UN Security Council Permanent Member. The UN needs to exercise its soft power resources against Sudan.