Month: July 2024

WASHINGTON, July 1 (Yonhap) — The United States on Monday condemned North Korea’s ballistic missile launches this week, reaffirming its “ironclad” security commitment to South Korea.

On Monday Morning (Korea time), the North fired two ballistic missiles with one of the launches having possibly ended in failure, according to the South Korean military.

“The United States condemns the DPRK’s June 30 ballistic missile launches (Washington time),” a State Department spokesperson said in response to a question from Yonhap News Agency. DPRK stands for the North’s official name, the Democratic People’s Republic of Korea

“These launches, like all the DPRK’s other ballistic missile launches in recent years, are in violation of multiple U.N. Security Council resolutions. They pose a threat to regional and international peace and security and undermine the global nonproliferation regime,” the spokesperson added.

The official also stressed close coordination with allies to deal with the North’s provocative acts.

“W
e continue to consult closely with our allies and partners about how best to deter DPRK aggression and coordinate international responses to the DPRK’s violations of multiple U.N. Security Council resolutions,” the official said. “Our commitment to the defense of the Republic of Korea and Japan is ironclad.”

The launch came a day after the North’s foreign ministry denounced a joint naval exercise between South Korea, the United States and Japan, saying the country would take “offensive and overwhelming” countermeasures against what it called an attempt to strengthen a military bloc.

The three countries conducted the first trilateral Freedom Edge exercise in international waters south of South Korea’s southern resort island of Jeju last week.

Source: Yonhap News Agency

SEOUL, North Korea has test-fired a new tactical ballistic missile capable of carrying a super-large warhead, state media reported Tuesday, a day after South Korea said the North fired two missiles and one of them could have failed.

North Korea successfully launched the Hwasong-11Da-4.5 missile capable of carrying a 4.5 ton-class super-large warhead on Monday, according to the Korean Central News Agency (KCNA).

“The test-fire was conducted with a missile tipped with a simulated heavy warhead to verify flight stability and hit accuracy at the maximum range of 500 kilometers and the minimum range of 90 km,” the KCNA said.

It added the country will conduct another test of the missile in July to “verify flight characteristics, hit accuracy and explosion power of super-large warhead at the medium range of 250km.”

South Korea’s Joint Chiefs of Staff (JCS) said Monday North Korea fired two ballistic missiles in a northeastern direction from a western region. One of them flew about 600 kilometers before landing
in the East Sea, but the other traversed only about 120 km before its trail disappeared from radar.

The JCS said the second missile appears to have flown abnormally during the early stage of its flight and that if it exploded in midair, its debris could have fallen inland.

Source: Yonhap News Agency

These days, the ruling and opposition parties are caught in a spiral of political strife on almost every issue. However, when it comes to supporting the semiconductors industry, they are showing there is a possibility of cooperation.

While foreign countries have striven to enhance international competitiveness of their industries, the main opposition Democratic Party of Korea has been negative on government plans to support Korean chipmakers, condemning them as “special favors for large companies.” But a lawmaker of that party is seeking to legislate a special law that offers bold support for domestic chipmakers.

His bill is said to offer about 100 trillion won ($72.3 billion) in loans, increase tax deductions further and extend tax credits set to expire later this year by 10 years to 2034. The bill also makes it compulsory for the government to provide infrastructure such as industrial water and electricity supply lines and roads.

It is bolder than the government’s support plans and ruling party bills fo
r the semiconductors industry.

Kim Tae-nyeon, the five-term lawmaker who authored the bill, said that semiconductors were at the heart of the nation’s strategic industries and that the present and future of Korea hinges on the chips industry. He also said his party should not regard support for chipmakers as a special favor for large companies. He is totally right.

Lawmakers of the ruling People Power Party have proposed bills to support the industry after the previous National Assembly failed to extend the K-Chips Act. Rep. Koh Dong-jin submitted one that calls for the establishment of a special council on the semiconductors industry under the president’s direct control and that also makes it mandatory for the government to supply electricity and water. Rep. Park Choong-kwon proposed a bill to extend the sunset deadline for tax credits by six years to 2030.

Coincidentally, the government unveiled plans last week to run a 1.8 trillion won low-interest loan program for the semiconductors industry from July
and push to extend tax credits by three years.

Kim’s bill offers the longest extension of tax credits and the largest support fund, but the party has not adopted it yet in its official platform. Nevertheless, it is welcome that a veteran lawmaker of a party that has been lukewarm on support for chipmakers has recognized the importance of the industry and attempted to break away from the anticorporate, pro-labor stance.

His bill offers much stronger support than either government plans or ruling party bills, but it is a pity there is no mention of direct subsidies that could lessen the burden of initial facility investment. In an age of artificial intelligence, global competition for the lead in the semiconductors market is only growing fiercer. The United States, Europe, Japan and Taiwan are pouring astronomical sums into subsidies to keep their industries competitive. By comparison, Korea’s support plans are passive, and even those have been impeded by political strife.

So the Democratic Party is showing
signs of change. It is apparent that the party aims at taking the initiative in industrial and economic policies, but it is still positive for both ruling and opposition parties to feel responsibility for the future of the Korean economy and move in the same direction.

Now that there is an agreement on support for the industry, there is no reason to hesitate. Both parties must begin discussions immediately. If a better plan comes out of the discussions, they must accept it without political calculations.

The Democratic Party has refused to expand tax credits for the semiconductors industry, criticizing them as support for chaebol or tax cuts for the rich. The party discussed the issue of reforming inheritance and comprehensive real estate holding tax systems, but eventually failed to overcome internal disagreements and pulled the plug on a tax reduction.

It must be different this time. When it comes to helping a major industry of the national economy, rival parties must stop partisan fighting and put their
heads together.

Source: Yonhap News Agency

The U.S. presidential race has entered a phase of increased unpredictability following the first debate between President Joe Biden and his rival, Donald Trump. The televised debate on Thursday saw both candidates exchanging fiery rhetoric on a range of issues including diplomacy and the economy.

Many U.S. media outlets declared the 81-year-old incumbent as the presumed loser in the debate, emphasizing ongoing concerns about his age and performance. Consequently, there is a growing chorus among Democrats and Biden supporters for a change in the presidential candidate. Major news organizations are now examining potential scenarios and alternative candidates in case Biden decides to withdraw from the race.

With only four months left until the November presidential election, the race has become more complicated. Given the profound implications of the U.S. election outcome for the global community, recent developments signal a significant impact on the international stage.

Currently, Biden is resisting calls
to step down and abandon his candidacy, with many Democrats urging him to stay in the race, arguing that a change may not necessarily ensure victory in the presidential vote. The controversy surrounding his candidacy is unlikely to diminish soon.

The growing uncertainty in the U.S. presidential competition is stoking anxiety among U.S. allies such as South Korea. If Trump maintains the advantage, Seoul will need to prepare for a potential second term under his administration. Biden has been emphasizing strengthened relations with allies, whereas Trump favors transactional relationships.

A new Trump administration will significantly alter U.S. relations with the European Union, and its Asian allies such as South Korea and Japan. Diplomatic authorities should engage in proactive measures, leveraging extensive networks while remaining mindful of potential changes in future administrations.

Despite Trump and his associates indicating a commitment to strengthening trilateral relations, uncertainty persists. Tru
mp has underscored the necessity of withdrawing or reducing the number of U.S. forces stationed in South Korea. In an interview with Time in April, he reiterated a demand to Seoul that could significantly increase the costs of hosting U.S. troops in South Korea from the current 1.2 trillion won ($870 million).

Many research institutes also predict that Trump will adopt a tougher stance toward Asian allies, especially Seoul. His hard-line policies may increase calls for South Korea to pursue nuclear armament. This demand has gained momentum due to warming relations between Moscow and Pyongyang, in addition to North Korea’s ongoing military provocations and nuclear buildup campaigns.

Under Trump’s leadership, there is a strong likelihood that negotiations between North Korea and the U.S. will resume, which have been stalled since the collapse of the summit in Hanoi in 2019. Recently, Trump aides have suggested the importance of engaging in dialogue with North Korea if there are indications that Pyongyang migh
t halt its nuclear weapons program, even if complete denuclearization is not achieved. This situation poses an increased security risk for South Korea.

It is challenging to accurately predict the potential impact of the U.S. election on the Korean Peninsula. President Yoon Suk Yeol and his security and diplomatic aides should intensify efforts to prepare for various possible scenarios.

Regardless of the election outcome, there is a growing imperative to strengthen the alliance with the U.S. and enhance extended deterrence against potential North Korean provocations. The Yoon administration should initiate negotiations with the U.S. to revise the nuclear agreement and secure increased nuclear capabilities for Seoul. In the economic realm, efforts should focus on bolstering bilateral cooperation, particularly technological alliances spanning industries such as semiconductors, AI, batteries, and aerospace. Additionally, measures should be taken to safeguard Korean companies investing in the U.S. from potential
discriminatory treatment under new protectionist policies by a new U.S. administration.

Source: Yonhap News Agency

Uncertainty has swept the political scene in the United States with only four months left before the Nov. 5 presidential election. Last Thursday’s first TV debate between President Joe Biden, 81, and former President Donald Trump, 78, highlighted Biden’s cognitive issues. After the debate, Democrats increasingly demand his withdrawal from the race. If Trump widens the gap with Biden, Trump will re-enter the White House. The world is paying close attention to the possibility of Trump 2.0.

After Trump’s overwhelming victory in the TV debate, voices calling for Biden’s withdrawal from the race are growing fast in the Democratic Party. Biden flatly refused. In a family gathering at Camp David, First Lady Jill Biden reportedly insisted on her husband running to the finish line.

The emergence of political bigwigs, including former House Speaker Nancy Pelosi, who support Biden, helps divide the Democratic Party ahead of the Aug. 19 National Convention in Chicago. If Biden refuses to withdraw from the race, the pa
rty can hardly find a breakthrough. Even if Biden is replaced by someone else, the problem is the low popularity of Vice President Kamala Harris, the running mate.

Whether Biden will drop out of the race or Trump is re-elected president in the election, it can give a huge burden to President Yoon Suk Yeol, given obvious shifts in the direction of diplomacy, security and trade under a second Trump administration. If Trump is re-elected, he will surely push for the pullout of U.S. Forces Korea, a drastic increase in Korea’s defense cost-sharing and the tariff bomb. If the U.S. forces’ status quo changes, it will fuel the call for Korea’s nuclear armaments.

The results of the upcoming election will have a massive impact on the future of the Korean Peninsula. The government says it has been operating a task force to deal with the Trump risk in the Foreign Ministry, but it will not be enough to handle that. We urge the Office of National Security to launch a “one team” – encompassing the Foreign Ministry, the Na
tional Intelligence Service, the Ministry of Trade, Industry and Energy, as well as major private companies – to effectively prepare and cope with the Trump risk.

It would be better if the government can find ways to link to major Korean companies’ connections in America given their growing political stature there. At the same time, the government must foster pro-Korea voices in powerful U.S. think tanks. The time has come for the government to prepare effective responses to every conceivable scenario by mobilizing all available resources, just as Japan and Europe do. The government must minimize damages from unexpected developments and maximize national interests.

Source: Yonhap News Agency