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 © 2013 Koninklijke Brill NV ISBN 978 90 04 26113 6 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 © 2013 Koninklijke Brill NV ISBN 978 90 04 26113 6 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 © 2013 Koninklijke Brill NV ISBN 978 90 04 26113 6 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 © 2013 Koninklijke Brill NV ISBN 978 90 04 26113 6 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 ......... 191 Robert Winstanley-Chesters 1 Introduction .......................................................................... 191 2 Transformation or imposition: the environmental and developmental approach in the DPRK ................................. 193 2.1 Early stages .......................................................................... 193 2.2 Kim Il Sung’s ‘Theses’ and their effects .............................. 195 3 Historical developmental and environmental strategies of the DPRK ......................................................................... 200 3.1 Movements to promote ‘revolutionary urgency’ .................. 201 3.2 Taean Work Team method ..................................................