Envoy says South Korea must end rice quotas to see real Thai food in Seoul restaurants

Thai Ambassador to South Korea Kittiphong na Ranong sees improving Thai food restaurants as a way of prying open the South Korean rice market, which he sees as too closed to agricultural products from his country. I interviewed him at his office in Hannam-dong, in Seoul, on Sept. 16, 2013.
Thai Ambassador to South Korea Kittiphong na Ranong sees improving Thai food restaurants as a way of prying open the South Korean rice market, which he sees as too closed to agricultural products from his country. I interviewed him at his office in Hannam-dong, in Seoul, on Sept. 16, 2013.

[This article was written originally for The Korea Herald in September 2013.]

Ever eat out at an authentic Thai restaurant here in Seoul, South Korea? It is doubtful that you have, according to the Thai Embassy in South Korea.

There is a dearth of restaurants in South Korea serving real Thai cuisine made from real Thai ingredients at the moment, according to the Thai Ambassador to South Korea. But he is keen to change that.

Kittiphong na Ranong sees improving Thai food restaurants as a way of prying open markets here, which he sees as too closed to agricultural products from his country.

The embassy is determined to upgrade Thai restaurants and the popularity of Thai cuisine here with a number of promotional campaigns, such as one this week: “Thai Restaurant Week” from Sept. 23-29.

“When we launched a promotional campaign earlier this year at a restaurant at Lotte Hotel, we found it extremely difficult to even buy domestically-sold Thai rice,” he said in an interview with The Korea Herald on Sept. 16.

Thailand exported 90 tons of kitchen table rice to South Korea in 2012, a fraction of a percentage point of the 30,000 tons of rice exported from here to Thailand. The vast majority of Thai rice exported to South Korea is low-grade brown rice destined for industrial uses, such as in the manufacture of store-bought makgeolli, Korean fermented rice wine.

Put simply, Thai restaurants cannot make the grade if chefs cannot get their hands on quality agricultural products from Thailand, according to Kittiphong.

Of the 172 restaurants that the embassy determined serve Thai cuisine, 71 were selected to participate in this week’s promotional campaign.

The problem, according to Kittiphong, rests with South Korean import quotas. The permitted amount of Thai rice, poultry, fruit and other agricultural shipments ― which made up about 20 percent of its total exports of 13.6 billion won ($12.5 million) in 2012 ― is limited. Kittiphong wants the quota lifted.

South Korea and Thailand agreed to seek preliminary discussions and a joint study on forging a comprehensive economic partnership agreement when former President Lee Myung-bak met with Thai Prime Minister Yingluck Shinawatra in Bangkok in November 2012.

The two nations also agreed to seek to increase bilateral trade to $30 billion by 2016. Such an enormous increase in trade ― a doubling over the next three years ― could only be met by lifting South Korea’s import quotas on Thai rice, poultry and such Thai fruits as longan and pomelo, the ambassador said.

Thailand currently has a huge rice surplus stockpiled by the government as a result of a recent price support scheme, meant to help out small farmers.

If sold at current market prices, however, the stored rice would result in profit losses and government deficits. Thailand is aggressively searching for untapped markets.

The Thai government’s new intervention began with the landslide electoral victory of Yingluck’s Pheu Thai Party in 2011. In the subsequent two years, it has allocated $18.7 billion to buy rice and shore up support for farmers. The government currently has 10 million tons of rice in storage. This month, the government extended the policy, which could lead to an additional 10 million tons after the 2013-14 harvest due to start in October.

A career diplomat, the mild-mannered Kittiphong expressed frustration at the pace of Thailand-South Korea talks on lifting restrictions on imports, saying that the preliminary FTA talks and a joint feasibility study should take place in tandem with lifting the Thai rice quota.

“When we raised the issue last year, they said that it was a bad time because it was the end of the previous government, that we had to wait for the new government to settle into place,” he said. “But when the new government came in, they said it is the restructuring the ministry, that trade is being separated from the Ministry of Foreign Affairs.

“The issue of rice, chicken and fruits has been on the table for years, so we should be able to resolve that issue separately,” he said.

Why certain imported food items are not available on grocery store shelves in South Korea is debatable. According to proponents of the current restrictions, it is a matter of weak demand for Thai agricultural products.

Critics of the restrictions point to stiff non-tariff barriers here, such as sanitary and phyto-sanitary measures that they say are unfairly leveraged by the government to limit imports.

Discussions on lifting the quota on Thai rice appear slow. So, the embassy is focused on stimulating demand for Thai kitchen table food items through promotion drives such as its current effort.

In “Thai Restaurant Week,” diners are entered into a lucky draw with every minimum purchase of 50,000 won or more on a single receipt. The embassy will announce the winners in mid-October. Four grand-prize winners will receive round-trip flight tickets to Thailand.

Six restaurants are participating in the Thai Select program: Golden Thai in Songpa, Sala Thai’s Jamsil branch, Sala Thai’s Bundang branch, Siam at Seoul Station, Thai Orchid in Itaewon, and Wang Thai, also in Itaewon.

Madam President a real possibility in South Korea’s ‘year of woman’

Former envoy to Russia describes how she became the nation’s first female ambassador

 

Lee In-ho, former ambassador to Russia and current chair of the Asan Institute for Policy Studies, gestures during an interview with The Korea Times at her office in downtown Seoul.
Lee In-ho, former South Korean ambassador to Russia and current chair of the Asan Institute for Policy Studies, gestures during an interview with The Korea Times at her office in downtown Seoul.

[This story was written originally for The Korea Times in February 2012, after Park Geun-hye took the helm of the conservative Saenuri Party and Han Myeong-sook was leader of the more progressive Democratic United Party.]

This could very well be a year of firsts for women in South Korea, as the East Asian nation has seen women take the helm of its two major political parties for the first time in its history.

It was not since 1996 — some 16 years ago — that South Korea saw a similar first for women, when a woman for the first time was appointed as ambassador to a foreign posting.

It was then that Lee In-ho, a Russian expert with a long professional and academic pedigree, was tapped by former President Kim Young-sam as part of an election pledge running on the now-defunct conservative Democratic Liberal Party ticket to include more women at the highest levels of government.

Now women have taken charge of both major political parties. The Saenuri Party is led by Park Geun-hye and the Democratic United Party (DUP) by Han Myeong-sook.

Lee credits her appointment to “a triumph” of what she loosely described as a “women’s lobby” in the late 1990s, a zeitgeist or general buzz in the air that Korean society “in spite of its vaulted achievements in economic development had been neglecting women’s capabilities.”

That public opinion swept South Korea in the wake of the 4th World Conference on Women in Beijing in 1995. The world conference on women was a catalyst in building pressure on the South Korean government to include women, and utilize the talent of women, Lee said.

“There was a pressure in the air that women were underutilized, and a growing women’s movement took hold of that feeling of the time to call for more women to be represented in government at the highest levels,” said Lee who now chairs the Asan Institute for Policy Studies, a think-tank on foreign affairs and economy.

She also actively serves on a slew of university boards and public commissions.

The DUP’s Han in a high profile meeting with the GNP’s Park declared this year “the year of women,” but whether this year can generate the general sentiment for women that the 1995 Beijing conference did remains anyone’s guess.

Lee was first sent abroad as Korea’s ambassador to Finland from 1996 to 1998, and then to Russia from 1998 to 2000 during the presidential administration of Kim Young-sam’s political rival, the late former President Kim Dae-jung.

How Lee ascended to the highest levels of South Korean diplomacy 16 years ago could be instructive in assessing the role of women on the national political stage today.

“It was a moment in our history when the society realized it had been neglecting women as human resources,” Lee said in an interview with The Korea Times on Feb.1. “There was still a lot of prejudice in the Korean diplomatic community.”

She said that her ambassadorial appointment to Russia resulted from the fortunate combination of two men who were free of prejudice against women because of their extraordinary wives: Lee Hee-ho, the wife of Kim Dae-jung, and Lee Beom-joon, the wife of the late former Foreign Minister Park Jeong-soo.

“There was unseen resistance at first to appointing a woman as a top diplomat,” Lee said. “The presence of these wives, the influence they had on their husbands, was exceptional. They had influence on their husbands.”

But since the country’s Ministry of Foreign Affairs and Trade (MOFAT) sent its first woman ambassador abroad in 1996, only one other person has had an opportunity to serve a foreign posting. South Korean Ambassador to Paraguay Park Dong-won is the only female ambassador serving abroad among MOFAT’s more than 120 foreign diplomatic missions.

[I added this youtube vid clip from a 2006 lecture organized by the Royal Asiatic Society. In it, Lee In-ho discusses Korean history from the late nineteenth century to the present. She claims “leftist historians” (her words) are trying to re-write Korean history from their point of view, one in which the U.S. is to blame for Korea’s post-liberation trials.]


Diplomatic service

There was real resistance from the “old boy’s network” at MOFAT to appointing a woman as ambassador in the late 1990s, Lee said.

Overtures were made to many high-profile women, after Kim Young-sam’s election, including to Lee who was offered various government positions.

“Lee Hee-ho was one of the people who persuaded me to accept a post as ambassador to Finland,” she said.

Lee said Finland’s extensive Russian archive appealed to her academic interests. She received her Ph.D. in Russian history from Harvard University, and is fluent in Russian and English.

Actually Finland shares many similarities with Korea, she said. Now Finland is a model social democracy, but it also had a difficult history, sandwiched between two large nations, Russia and Sweden, which influenced Finland throughout its history. Finland suffered from a grinding poverty that is little appreciated now, but the country managed in pulling itself into affluence.

Lee said her experience as ambassador to Finland was good “because it afforded me an insight one gets only from experience and is impossible to get from books.”

When her posting came to an end in 1998, when Kim Young-sam’s political rival took office, she finessed a new appointment as ambassador to Russia.

Again she faced stubborn opposition from career male diplomats jealous of a woman envoy. Rumors were constantly circulating against her, she said. “Women are outsiders” to what she described as the “all boys club of Korean career diplomats.”

But her impressive resume and expertise in Russian history and culture defied all the criticisms the MOFAT men could muster.

Korea and Russia established diplomatic relations in 1990. Lee became Korea’s fifth envoy from 1998-2000. In addition to being Korea’s first female ambassador to Russia she was also the first Korean envoy fluent in Russian.

Her fluency made her popular among Russian officials and Russian fluent European diplomats. “I understood and enjoyed the Russian language and culture, and that allowed me to be admitted into certain circles that a Korean envoy had never been admitted into before,” Lee said.

It made her an effective diplomat for Korea, too. She secured a presidential summit for Kim Dae-jung in spite of the tumult that characterized the Russia of Boris Yeltsen, especially in the late 1990s.

“I brought with me to the post a Korean understanding, as well as an American one, by virtue of my many years of studying and living in the United States,” she said.

The highlight of her posting was the presidential summit between Kim Dae-jung and Boris Yeltsen.

Yeltsen was sick from ill health and alcoholism and was constantly hospitalized at the time. “It was not at all certain the summit would happen,” Lee recalled about the Korea-Russia summit.

“Chinese President Jiang Zemin had only 10 minutes with Yeltsen in a meeting in his hospital room,” she said, and with less than a week before the Kim’s presidential visit, “the Dumas tried to impeach him.”

All the while, rumors and machinations against her persisted. Near the end of her term, she said rumors circulated that she “would either be kicked upstairs” this time, instead of being kicked out, or be put up as a National Assembly candidate.

After her four-year diplomatic service in Finland and Russia, she led the Asia Foundation for three years.

Early life, end note

Lee said that equality in the family and in the work place was the focus for women’s rights activists in the male-centered Korean society that Lee grew up in, one that simply preferred boys over girls.

Lee said she sees a lot of achievements for women, but also an unfinished project.

Lee grew up in a distinguished yet conventional 4-generation Confucian family in Myeongryoon-dong in Seoul.

Her father worked at a reputable bank (later it became Shinhan Bank), and she attended an experimental co-educational high school that was a part of Seoul National University (SNU) called, College of Education.

Lee was a junior high school student when she briefly experienced living under communist rule. That’s when in the summer of 1950 Korea North crossed the DMZ and seized control of Seoul. Seoul changed hands that autumn, and then in the winter of 1950, Lee and her family fled to Busan when control over Korea’s capital city was again seized by the communist North.

She was admitted into SNU’s history department in 1955, but then was afforded the opportunity to finish the remainder of undergraduate work at Wellesley College in the U.S. She went on to obtain a Ph.D. in Russian history at Harvard. She would not return to Korea until 1972.

“Because my name sounded like a man’s, however, people often read my articles thinking I was one,” she said. In addition to her male-sounding name of In-ho, her pedigree and American education gave her breathing room to pursue a career in academia without the moniker: “Her writing is good for a lady.”

From 1972-1979 she taught at Korea University, and from 1979-1996 at SNU.

Lee said more needs to be done to level the playing field for women in Korean society, but also insisted progress has been achieved, from obtaining the franchise with the founding of the republic to, in recent years, reforming family law.

However, the prospect of South Korea electing its first female president is mixed. Reforms could open doors for political office beyond the presidency.

The country’s two major political parties are led by women. Han of the DUP has called for 15 percent of the candidates that her party fields in the coming April general elections to be women, and the ruling Saenuri Party under Park’s leadership is mulling over a proposal of an even more robust 25-percent female candidate quota.

For now, women’s representation remains sparse. The number of women cabinet ministers can be counted on one hand. 2008’s National Assembly elections saw 41 of 299 seats, about 13 percent, go to women, some allotted by their party’s proportional representation system, others in direct elections.

“When I returned from my diplomatic service, the floodgate was opened at the Ministry of Foreign Affairs for young women diplomats,” Lee said. “Now what is important is to fill that upper-middle section at the ministry.”

Kakao details premium taxi app, launches test run

Kakao Taxi

[This story was written originally on October 21, 2015 reporting from Seoul, South Korea.]

The main features of the planned service include Mercedes and Lexus taxi models, a suit-wearing driver, and a complimentary drink, at around three times the price of a regular cab.

Kakao, the $7 billion parent company of messaging app KakaoTalk, released more details on Tuesday about the planned launch of a premium taxi app, as it tries to monetise lifestyle platform businesses.

KakaoTaxi Black will start off with a test run connecting users to a fleet of 100 cars through the end of this year while the company awaits final approval from the Seoul City government, when the service will then be expanded.

KakaoTaxi Black appears to be a souped-up version of Kakao’s existing ride-hailing app. So far the “taxis” include Mercedes E-Class Sedans and Lexus models, in contrast to the natural gas-powered Hyundai Sonata and Kia Lotze models that the vast majority of Seoul cabbies drive

KakaoTaxi Black users will send a request for a ride to a specific destination from their smartphone using the app.

The drivers will be professionally licensed and wearing a suit, much like a limousine service driver. The ride will even come with a complimentary beverage.

The catch is the high-end cab will cost about three times the price of regular cab, the company said. So, a ballpark figure could be about 45,000 won ($37.50) for a crosstown trip in Seoul that would normally be priced at around 15,000 won ($12.50). The base fee is 8,000 won ($6.60).

KakaoTaxi Black could presage future efforts to strengthen the company’s profit sources, since it has posted rather weak financial results for the past two quarters. That said, Kakao is a local success story, growing from a fledgling startup to South Korea’s second-largest IT venture after Naver Corp.

It merged with search portal Daum last year and spun off games and innovative businesses from its mobile-based platform. Intensifying competition in the industry has since burdened the firm with heavy marketing costs and anemic profits.

John Jung, Kakao’s chief business officer and the executive in charge of KakaoTaxi, said during a media briefing on Tuesday that while the concept is quite new to South Korea, premium taxis already take up 27 to 30 percent of the worldwide taxi market.

Kakao launched its existing ride-hailing app after it inked a three-party MOU with the Seoul Taxi Association and a major taxi company. The premium taxi drivers will be regular employees of the taxi company, Kakao said.

As of this month, Kakao said it has about 160,000 drivers registered with KakaoTaxi, which has accumulated 30 million calls since it launched in March, and receives 300,000 requests on a daily basis.Kakao Taxi

LG could launch its own mobile payment service as early as November

[This story was written originally for ZDNet on October 15, 2015 reporting from Seoul, South Korea.]

LG could join an already global market crowded by big players such as Google’s Android Pay, Apple Pay and Samsung Pay, perhaps as early as November, according to South Korean media reports.

South Korea takes another step to ActiveX liberation

[This story was written originally for ZDNet on October 15, 2015 reporting from Seoul, South Korea.]

The Korea Trade Network’s development of an ActiveX-free authentication certification program may be the most concrete sign yet of South Korea finally dislodging itself from Internet Explorer.

Samsung affiliates to benefit from demand for electronic components, OLEDs

samsung girls

[This story was written originally for ZDNet on October 6, 2015 reporting from Seoul, South Korea]

Continued strong demand for TVs, tablets, and handsets will see a profit surge over the next two years, according to a Korean report.

South Korean TVs’ market dominance slowly weakening against Chinese rivals

Samsung is focused on the premium end of the TV market as its strategy to stem the torrent of Chinese companies eroding its market share.

Reporters check out Samsung TVs at a trade show.
Reporters check out Samsung TVs at a trade show.

Even though the Chinese makers are nibbling at South Korean market share, those Korean TV makers continue to enjoy dominance at the premium end of the global TV market.

South Korean TV makers are slowly losing ground in the global market in the face of Chinese rivals and faltering TV demand worldwide despite their strategy of keeping the tech edge over Chinese rivals by developing new innovative products.

Let’s look at some numbers. According to the a report in August by market tracker DisplaySearch, the combined share of Samsung Electronics and LG Electronics — the two big South Korean players — came to 34.8 percent in the first half of 2015. That’s a 4.3 percent drop from a year ago. Not much but the question is whether this is an irreversible trend.

In the meantime, Chinese makers saw their combined share soar 4.6 percentage points to 25.9 percent over the cited period.

Samsung’s share dipped to 20.8 percent, while LG’s retreated to 13.9 percent over the same period, the report said.

LG Electronics is mass-producing OLED TVs, first in the world, while Samsung Electronics is focusing on premium models such as LCD-based SUHD TVs.  It is top-notch technology, but the jury is still out on whether that is innovative enough or if even out competing their Chinese rival on the premium end is the right strategy going forward.

TCL Corp.’s share increased to 5.7 percent from 5.1 percent, and its local rival Hisense Co. also bolstered its presence to 5.4 percent of the global share from 4.9 percent.

South Korean companies’ TV sales have slowed over the past year. Samsung sold 24.1 million units in the first six months of 2015, down 15.2 percent from the previous year. LG’s TV sales sank 16 percent on-year to 13.6 million units as of end-June.

In contrast, Chinese makers boosted their combined sales to 25.4 million units from 21.9 million units during that time.

While the financial media has reported that China weakening its currency by letting it float unhindered in currency markets make things harder for Korean makers, that seems a little exaggerated.

From May, the Chinese Yuan decreased in value in relation to the Korean won by about 5 percent to about 5.45 Yuan for 1,000 Korean won from about 5.71 Yuan.

China’s move may further hurt Korean companies that have already been struggling to vie with Japanese firms backed by a cheaper currency, market watchers here said, adding there is a need to draw up fresh strategies that will help tide over the slackening sales.

Sure, a weaker Yuan is a disadvantage for Korean exporters since it undermines their price competitiveness versus Chinese rivals in the global market. But a 5 percent difference over a four month period is not going to make a crucial difference. It is one factor among many at play here.