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* Date : 2013-12-13

Issue
South Korea posts record high exports. Which products are emerging as major export items?
South Korea's Ministry of Trade, Industry and Energy has recently announced that the country's accumulated trade surplus reached a record high at 40.55 billion dollars in the January to November period. At this pace, South Korea is likely to post a record high annual trade surplus this year. Traditional export items such as vessels and semiconductors continued to show a strong growth, while export items such as smartphones and petroleum products which have been leading the exports market recently are also growing noticeably. Ironically, the country doesn't produce any crude oil, but oil products are the most exported items in the country. This is because it has high-tech, globally recognized refining technologies. Let's take a look at the changes in South Korea's export items by time periods and new major export items that have recently been growing strongly.


Interview
Can regulations on conglomerates lead to their structural improvement?
Interviewee: Park Sang-in, professor at Seoul National University's Graduate School of Public Administration/head of the market and government research center
South Korean conglomerates, or chaebols, have unusual corporate structures mainly seen in South Korea. Until now, conglomerates have contributed to a rapid economic development in the country, but at the same time caused some side effects. Recently, some critics are raising the need to restructure conglomerates as the country moves toward an economic democratization. The Park Geun-hye administration has also stressed that the government needs to escape from conglomerate-oriented economic policies to policies embracing co-existance with small- and mid-sized companies. Indeed, the government moved to regulate conglomerates which are gaining illegal profits. The government is slated to implement a bill to prohibit these conglomerates from funneling work to affiliates. Accordingly, more and more conglomerates have begun to restructure their businesses. We forecast what impact the latest regulation will have on conglomerates and the South Korean economy.



ICT
Cloud service that doesn't need storage devices
Cloud service is called an industrial revolution of the 21st century. It enables us to open documents stored in our computers at anytime and anywhere using various devices. It also enables more than two people to simultaneously access the system and work on documents. Like this, it is very convenient, but it is also vulnerable to security issues. Electronics and Telecommunications Research Institute (ETRI) has recently developed Cloud DaaS system that cuts off all the sources of hacking, using domestic SW technologies. As this system has strong security functions, it will no longer separately need storage devices or high-function computers when cloud servers are commercialized. We introduce the cloud system that will change the landscape of the future ICT industry.



Hidden champions
Fedora, the pride of South Korean strollers
Nowadays, imported strollers that cost millions of won are more than just nursery products to mothers. These strollers have turned into the medium showing mothers' 'ego.' But despite their expensive prices, the imported strollers' functions and qualities fail to meet expectations, according to survey results. After two years of research, a small South Korean firm has succeeded in developing a stroller with its own technologies that offers good functionality at a reasonable price. This is emerging as the 'nation's stroller' in South Korea. The product, which has multi-functions taking into consideration safety of babies and Asian women's body types, is captivating mothers in South Korea and other Asian countries. Let's find out the secret of Fedora strollers which are gaining popularity amid flood of imported strollers.



North Korea
Food situation in North Korea
North Korea's food production has been slowly recovering in the 2000s. This year, North Korea's crop situation is reportedly good despite the floods it experienced during the summer. But according to the data released early October by the Food and Agriculture Organization of the United Nations, North Korea was again on the list of the 34 countries experiencing food shortages and needing external help. It also reported that an average of 7.6 million people, or 31% of the total population, are suffering from malnutrition in North Korea. This is the worst reported famine case in Asia. North Korea seems to be still suffering from a chronic food shortage. In this week's Bizline, the United Nations World Food Program's representative on North Korea and academic experts will talk about the current food shortage situation in North Korea, why it can't escape the chronic food shortage as well as its outlook.  



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