Korea 2013: Politics, Economy and Society Korea 2013: Politics, Economy and Society Volume 7 Korea Yearbook Edited by Rüdiger Frank James E. Hoare Patrick Köllner Susan Pares Associate Editors Stephen Epstein and Moon Chung-in LEIDEN • BOSTON 2013 ISSN 1875-0273 ISBN 978-90-04-26113-6 (paperback) ISBN 978-90-04-26297-3 (e-book) Copyright 2013 by Koninklijke Brill NV, Leiden, The Netherlands. Koninklijke Brill NV incorporates the imprints Brill, Global Oriental, Hotei Publishing, IDC Publishers and Martinus Nijhoff Publishers. All rights reserved. No part of this publication may be reproduced, translated, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission from the publisher. 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CONTENTS Preface ................................................................................................. xi List of Refereed Articles Published since 2007 .................................... 1 South Korea ..................................................................................... 1 North Korea ..................................................................................... 4 The Two Koreas: Connections and Comparisons ........................... 6 Chronology of Events in the Korean Peninsula 2012 ........................... 7 South Korea ..................................................................................... 7 North Korea ................................................................................... 11 Inter-Korean Relations and Six Party Talks .................................. 15 South Korea in 2012: Domestic Politics, the Economy and Social Issues ....................................................................................... 21 Patrick Köllner 1 Introduction ............................................................................ 21 2 The 2012 National Assembly election and its aftermath ........ 25 3 The 2012 presidential election ............................................... 30 4 The South Korean economy in 2012 ...................................... 34 5 South Korea’s music industry and the Psy phenomenon ....... 38 North Korea in 2012: Domestic Politics, the Economy and Social Issues ....................................................................................... 41 Rüdiger Frank 1 Introduction ............................................................................ 41 2 The 2012 New Year joint editorial ......................................... 42 3 Main events in 2012 ............................................................... 44 4 Succession and the image of the leaders ................................ 48 vi CONTENTS 4.1 Kim Jong Un’s leadership style .............................................. 50 5 Bread and circuses .................................................................. 53 6 Personnel ................................................................................ 55 6.1 Appointments ......................................................................... 55 6.2 Comment ................................................................................ 58 7 Budget .................................................................................... 60 8 The North Korean economy ................................................... 63 8.1 Demographics and GDP ......................................................... 63 8.2 Food and agriculture ............................................................... 64 8.3 Telecommunications .............................................................. 65 8.4 Minerals .................................................................................. 66 9 Economic changes and reforms .............................................. 66 9.1 Foreign investment and its legal foundation .......................... 67 9.2 Education and sports .............................................................. 70 9.3 Other developments ................................................................ 71 10 Conclusion and outlook .......................................................... 72 Relations Between the Two Koreas in 2012 ....................................... 73 Sabine Burghart 1 Introduction ............................................................................ 73 2 Slamming the window of (n)opportunity ............................... 74 3 Playing with fire ..................................................................... 76 4 Searching for a new North policy: old wine in new bottles?.. 79 5 Economic exchanges .............................................................. 81 6 Humanitarian aid and exchanges ............................................ 84 7 Defectors: exclusionary integration? ...................................... 86 8 Outlook ................................................................................... 88 Foreign Relations of the Two Koreas in 2012 .................................... 91 James E. Hoare 1 Introduction ............................................................................ 91 2 Republic of Korea .................................................................. 91 2.1 Relations with the United States ............................................ 91 2.2 Relations with China .............................................................. 93 CONTENTS vii 2.3 Relations with Japan ............................................................... 95 2.4 Other relations ........................................................................ 97 3 Democratic People’s Republic of Korea ................................ 98 3.1 Rockets, the nuclear issue and relations with the United States .......................................................................... 99 3.2 Relations with China ............................................................ 102 3.3 Relations with Russia ........................................................... 106 3.4 Relations with Japan ............................................................. 107 3.5 Other relations ...................................................................... 108 How to Promote a Free Trade Agreement: UK Trade & Investment and the EU–Korea FTA ................................................. 109 Judith Cherry 1 Introduction .......................................................................... 109 2 The academic debate ............................................................ 111 2.1 Free trade agreements—motivations .................................... 112 2.2 Free trade agreements—impediments .................................. 113 3 The EU–Korea free trade agreement .................................... 115 4 Promoting the EU–Korea free trade agreement ................... 116 4.1 The government’s role—UK Trade & Investment ............... 119 4.2 Putting the case for Korea .................................................... 120 4.3 Confronting the challenges ................................................... 124 4.4 Measuring success ................................................................ 127 5 Discussion and conclusions .................................................. 128 6 Postscript—September 2012 ................................................ 131 Framing the Globalisation Debate in Korean Higher Education ...... 137 Stephanie K. Kim 1 Introduction .......................................................................... 137 2 The phenomenon of global competition in higher education .............................................................................. 138 3 Internationalisation and student mobility in Asia ................. 141 4 Internationalisation policies in South Korea ........................ 144 4.1 Forces driving the policies ................................................... 144 4.2 Specific government initiatives ............................................ 145 5 Contentious issues in Korean internationalisation policies .. 150 viii CONTENTS 5.1 English as a medium of teaching .......................................... 150 5.2 Effects of changed institutional standards ............................ 152 6 Conclusion ............................................................................ 155 The Millenarian Dimension of Unification Thought ........................ 161 Lukas Pokorny 1 Introduction .......................................................................... 161 2 Historical overview: Mun Sn-my2ng and the Unification movement ............................................................................. 162 3 The millenarian dimension of Unification thought .............. 167 3.1 Millenarianism ..................................................................... 169 3.2 Unificationism ...................................................................... 171 3.3 Koreacentrism ...................................................................... 177 3.4 Agenda for peace .................................................................. 179 4 Concluding remarks ............................................................. 182 Politics and Environmental Development: From Imposition and Transformation to Conservation and Mitigation in the DPRK